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Bankruptcy

Jul. 10, 2024

Sedgwick trustee loses bid to claw back partners' money

A federal judge in San Jose found that the liquidating trustee presented a flawed financial analysis at trial, and the defendants were not on the hook for $1.2 million.

Two former top partners at Sedgwick LLP, which closed its doors in 2017 after more than 80 years in operation, are not on the hook for $1.2 million after a federal judge in San Jose found this week that the liquidating trustee presented a flawed financial analysis at trial. 

Sedgwick filed a voluntary Chapter 11 bankruptcy petition in 2018. Firm partners Michael A. Tanenbaum and James H. Keale, who went on to found Tanenbaum Keale LLP, were accused of breaching their fiduciary dut...

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