Payouts represent final chapter in dissolution of venerable South Florida law firm

Unsecured creditors of the former Ruden McClosky law firm have received a final distribution payment, bringing a close to the final chapter of the law firm’s liquidation, Joseph J. Luzinski of Development Specialists Inc. announced today.

Luzinski and his team of financial professionals from DSI, and legal counsel Berger Singerman, reduced initial unsecured claims of $73 million to approximately $7.6 million of allowed claims. Those creditors have been sent a final distribution equal to 3 percent of their allowed claim for a total distribution for the case of 13.5 percent.

“We’re pleased at the outcome of the recovery obtained through this Chapter 11 process,” said Luzinski, who was chief restructuring officer of the storied Fort Lauderdale law firm and who now serves as the bankruptcy plan administrator. “This is an extraordinary outcome for a law firm insolvency.”

In 2015, the secured lender received $4.8 million in distribution, and priority tax and wage creditors were paid in full.

Ruden McClosky, which once had more than 200 lawyers, fell victim to the Great Recession and the sharp downturn in the Florida real estate market that came with it. More than half a century after it began, the downtown law firm sought Chapter 11 bankruptcy protection.

Most of the firm’s assets were sold to Greenspoon Marder. Many former Ruden McClosky attorneys and staff joined that law firm.

A time-consuming process of liquidating remaining assets and settling claims began in 2011. Luzinski and his professional team sorted through complex matters that included malpractice, litigation, partner, and general business operations claims.

About Development Specialists Inc. (DSI)

Based in Chicago, DSI is a leading provider of management consulting and financial advisory services, including turnaround consulting, fiduciary roles, financial restructure, litigation support, wind-down oversight and forensic accounting services. Clients include business owners, corporate boards of directors, financial services institutions, secured lenders, bondholders, unsecured creditors and creditor committees.

For more than 30 years, DSI has been guided by a single objective: maximizing value for all stakeholders. With its highly skilled and diverse team of professionals, offices throughout the United States and in Europe, and an unparalleled range of experience, DSI not only achieves that objective, but has also built a solid reputation as an industry leader. For more information, visit www.dsi.biz.