Legal Fee Tracker: Lawyer's 4,000 hours help Sullivan & Cromwell reach $200 mln mark in FTX case
By David Thomas
June 27 (Reuters) -Even for a busy lawyer at a big corporate law firm, billing close to 11 hours a day on a single case, five days a week for 18 months straight is no easy feat.
That's the average pace Brian Glueckstein has kept up as one of the lead lawyers in the FTX bankruptcy since it began in November 2022, according to court records though April. All those hours — including 342 in December 2022 alone — have helped his law firm Sullivan & Cromwell amass close to $200 million in billings as debtor's counsel in the sprawling case so far.
Sullivan & Cromwell's fee filings illustrate the massive, lucrative task of managing the bankruptcy of a cryptocurrency exchange whose founder Sam Bankman-Fried was sentenced to 25 years in prison for committing one of the biggest financial frauds in U.S. history.
A Delaware bankruptcy judge has approved more than $171.8 million in fees for the New York-founded law firm, with another $26.8 million request pending.
Glueckstein, with a current hourly rate of $2,375, has billed more than 4,000 hours in the bankruptcy, the most of any partner at his firm, according to a Reuters analysis of monthly fee statements. He is one of hundreds of lawyers and staffers from 890-lawyer Sullivan & Cromwell who have billed more than 168,000 hours in the case altogether.
Glueckstein, who joined Sullivan & Cromwell out of New York University School of Law in 2003, did not respond to requests for comment.
A Sullivan & Cromwell spokesperson referred Reuters to its public filings in the case and said that there have been no objections lodged against its fee requests.
As its bankruptcy counsel, Sullivan & Cromwell is advising FTX as it sells assets and pursues legal claims against others in an effort to repay creditors, including its customers.
An FTX spokesperson said the law firm's fees represent "a fraction of the amounts [FTX CEO] John Ray and his team have recovered through their investigation and prosecution of recovery actions."
FTX said this week that it has recovered up to $16 billion to repay customers, including over $12 billion in cash, and it says it will repay all customer claims in full.
Since May 2023, Glueckstein has also been part of a Sullivan & Cromwell team representing fire-protection company Kidde-Fenwal Inc, a Carrier Global subsidiary that filed for bankruptcy last year, billing at least 732 hours in the case. That's an average of about 12 hours a day on the two cases together, five days a week for 11 months.
A spokesperson for Carrier Global did not immediately respond to a request for comment.
Fee experts said such a workload for a single lawyer was extreme, but far from unheard of when juggling one or more high-stakes assignments. The intensity required from bankruptcy practitioners depends on the case, and FTX is a "bet-the-company engagement," said Nancy Rapoport, a fee examiner and law professor at the University of Nevada, Las Vegas.
Other experts noted that lawyers at large U.S. law firms often work eye-popping hours, with extreme workloads sometimes considered a badge of success.
"It brings to mind the adage that making partner is a pie-eating contest and the prize for winning is more pie," Georgetown Law professor Adam Levitin said in an email.
Before FTX's collapse, Sullivan & Cromwell had served as an outside law firm for the company and Bankman-Fried. The firm has faced scrutiny and at least one lawsuit over its pre-bankruptcy work from investors who accused it of failing to stop Bankman-Fried's $8 billion fraud.
Sullivan & Cromwell has denied any wrongdoing, and a court-appointed examiner concluded last month that the firm was not complicit in the fraud that caused the cryptocurrency exchange to collapse.
- In other legal fee news, the U.S. Supreme Court on Monday declined to hear a challenge to a $667 million fee award for lawyers at Boies Schiller Flexner, Hausfeld and other law firms that secured a $2.7 billion antitrust settlement with Blue Cross Blue Shield in 2020.
The fee award is among the largest ever in a class action.
- U.S. law firm Motley Rice on Monday appealed its award of $396 million for its work on litigation against the drug industry over the opioid crisis that resulted in $46 billion in nationwide settlements.
The firm did not say how much it was seeking or on what basis it was challenging the award.
(Legal Fee Tracker is a weekly feature exploring attorney compensation awards and disputes in class actions, bankruptcies and other matters. Please send tips or suggestions to D.Thomas@thomsonreuters.com .)
Reporting by David Thomas
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دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
