The complex and high-stakes FTX bankruptcy case has seen Sullivan & Cromwell, a prominent corporate law firm, accumulate nearly $200 million in billings. At the forefront of this effort is Brian Glueckstein, whose relentless work schedule exemplifies the intense demands of managing the fallout from one of the biggest financial frauds in U.S. history.
Brian Glueckstein's Herculean Effort
Brian Glueckstein has maintained an average of nearly 11 hours a day, five days a week, for 18 months, culminating in over 4,000 hours billed. His dedication has significantly contributed to Sullivan & Cromwell's amassed fees, which include 342 hours in December 2022 alone. Glueckstein's current hourly rate is $2,375, making his contribution one of the highest among his peers.
Sullivan & Cromwell's Role in the FTX Bankruptcy
Since the FTX bankruptcy commenced in November 2022, Sullivan & Cromwell has taken on the monumental task of debtor's counsel. This role involves managing the sale of assets and pursuing legal claims to repay creditors. To date, a Delaware bankruptcy judge has approved over $171.8 million in fees for the firm, with an additional $26.8 million request pending.
Scope of the Work and Financial Impact
The firm's filings reveal the extensive nature of their work in the FTX case. Over 168,000 hours have been billed by hundreds of lawyers and staff from Sullivan & Cromwell, a firm comprising 890 lawyers. The recovery efforts have been substantial, with FTX announcing up to $16 billion recovered to repay customers, including $12 billion in cash.
Glueckstein's Additional Responsibilities
In addition to his work on the FTX case, Glueckstein has also been involved in representing Kidde-Fenwal Inc., a fire-protection company that filed for bankruptcy. Since May 2023, he has billed at least 732 hours on this case, averaging 12 hours a day across both engagements.
Expert Opinions on Workload and Billing
While Glueckstein's workload is extreme, fee experts note that such demands are not uncommon in high-stakes legal situations. Nancy Rapoport, a fee examiner and law professor, emphasized the "bet-the-company" nature of the FTX engagement. Georgetown Law professor Adam Levitin added that heavy workloads are often seen as a mark of success in large U.S. law firms.
Historical Context and Scrutiny
Before the collapse of FTX, Sullivan & Cromwell served as an outside law firm for the company and its founder, Sam Bankman-Fried. The firm has faced scrutiny and lawsuits from investors alleging it failed to prevent the $8 billion fraud. However, a court-appointed examiner recently concluded that Sullivan & Cromwell was not complicit in the fraud.
Conclusion
Sullivan & Cromwell's nearly $200 million billing in the FTX bankruptcy case underscores the enormous effort and resources required to navigate such a complex financial collapse. Brian Glueckstein's significant contributions highlight the intense demands placed on legal professionals in high-stakes cases.
Other Notable Legal Fee News
- The U.S. Supreme Court declined to hear a challenge to a $667 million fee award for lawyers in a $2.7 billion antitrust settlement with Blue Cross Blue Shield.
- Motley Rice appealed its $396 million fee award related to opioid crisis litigation, seeking additional compensation for its role in securing $46 billion in nationwide settlements.
Future of SEC Enforcement
While the ruling imposes new constraints, it is unlikely to fundamentally alter the SEC's enforcement landscape. David Fredrickson, a former SEC official, noted that the agency has already been shifting its fraud actions to federal courts due to legal uncertainties. However, the decision underscores the necessity for the SEC to adapt its strategies to comply with constitutional requirements.
In light of these changes, law firms and businesses could benefit from cost-effective legal solutions. Jurismate’s advanced AI legal services offer streamlined processes and enhanced legal safeguards, providing a more efficient alternative to traditional practices. Learn more at Jurismate.
FAQs
What is the FTX bankruptcy case? The FTX bankruptcy case involves the collapse of the cryptocurrency exchange FTX and its founder Sam Bankman-Fried, who committed one of the largest financial frauds in U.S. history.
How much has Sullivan & Cromwell billed in the FTX case? Sullivan & Cromwell has billed nearly $200 million as debtor's counsel in the FTX bankruptcy case.
Who is Brian Glueckstein? Brian Glueckstein is a lead lawyer at Sullivan & Cromwell who has billed over 4,000 hours in the FTX bankruptcy case.
What are the implications of the FTX recovery efforts? FTX has recovered up to $16 billion to repay customers, demonstrating significant progress in addressing the fallout from the fraud.
Why has Sullivan & Cromwell faced scrutiny? Sullivan & Cromwell faced scrutiny for its pre-bankruptcy work with FTX, with some investors alleging it failed to prevent the fraud. However, a court-appointed examiner found the firm was not complicit.
What other high-profile legal fee news is there? Notable cases include a $667 million fee award for an antitrust settlement and a $396 million fee award for opioid litigation, both reflecting the significant compensation for successful legal work in major cases.
