Firms criticised over legal bills in Lehman bankruptcy proceedings

Certain law firms the Lehman bankruptcy have come under harsh criticism from Washington's "Pay Czar" for overspending. Kenneth Feinberg works for the the US Treasury Department as the "Special Master for Compensation" ensuring that companies receiving federal bailout funds are abiding by executive-pay guidelines. Feinberg has made scathing comments about the legal bills charged by Jones Day, Weil Gotshall & Manges and Millbank Tweed Hadley & McCloy. The costs that drew particular criticism include: $263,000 for photocopying $2,100 for one Jones Day partner's taxi expenses over the course of just one month. $500 a day for limos to wait for lawyers to finish their meetings at Weil $364 on drycleaning for Weil lawyers Pay Czar Kenneth Feinberg said the cost "violates any sense of proportion... to be paying first-year associates $500 an hour angers the public".

Firms criticised over legal bills in Lehman bankruptcy proceedings rollonfriday.com Fri, May 7, 2010