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Greenberg Traurig LLP Settles $2.2M Lawsuit With Brown Medical Centre

February 3, 2017, Southern Texas – Greenberg Traurig LLP recently settled a lawsuit, for an undisclosed amount, seeking the return of $2.2 million in legal fees it received for representing the now-deceased owner of an insolvent medical center management company, Brown Medical Centre, Inc.

The bankruptcy estate agent for Brown Medical Center Inc., Elizabeth Guffy, agreed to dismiss her suit with prejudice. Earlier, she had alleged that the fees were technically fraudulent transfers because they were made after the company’s insolvency, within two years of the petition date and were avoidable as fraudulent transfers under §548. Specifically, Guffy alleged that the Debtor received less than reasonably equivalent value in exchange for the transfers because Greenberg provided no legal services for the benefit of Brown Medical Centre. Guffy further contended that all value provided by the law firm was specifically for the benefit of Michael Brown or Brown’s wholly-owned entities unrelated to the Debtor. However, in its recent filing last month, Guffy filed agreed motion to dismiss the case with prejudice against Greenberg Traurig, LLP with each party to bear its respective fees and costs. In its agreed to motion to dismiss, Guffy states that the plan agent and Greenberg Traurig have settled the issues that form the basis of this matter and accordingly, the Court should enter an order granting the agreed motion to dismiss with prejudice.