Dreier Receiver Cuts Fee Request; Cites 'Gravity' of Firm's Demise

Dreier Receiver Cuts Fee Request; Cites 'Gravity' of Firm's Demise - 4-10-2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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Dreier Receiver Cuts Fee Request; Cites 'Gravity' of Firm's Demise
Noeleen G. Walder

New York Law Journal. April 10, 2009
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EXCERPT: Citing inefficiencies engendered by the "chaotic" conditions following the arrest of Marc S. Dreier and the implosion of his 250-lawyer firm, as well as the "quasi-public interest nature" of the work, the court-appointed receiver for Dreier's assets and the legal team at Paul, Weiss, Rifkind, Wharton & Garrison have agreed to lop roughly $500,000 off of their customary rates, according to a fee application submitted Wednesday night. The approximately $1.5 million in fees and expenses Mark F. Pomerantz and his counsel requested is in line with the amount Pomerantz predicted he would seek in an interview with the New York Law Journal following Southern District Judge Miriam Goldman Cedarbaum's dissolution of the receivership. Cedarbaum is presiding over the civil suit brought by the Securities and Exchange Commission, Securities and Exchange Commission v. Dreier, 08 Civ. 10617. "Having witnessed the gravity and breadth of the damage inflicted first-hand, the Receiver is inclined to leave more, not less, money in the pot of funds that will be used to compensate injured victims and creditors," the application states. In an interview, Pomerantz said he was indebted to ex-Dreier staff and attorneys who helped in the work of the receivership, without receiving any compensation. He said the substantial discount in the fee application "reflects in part the firm's desire to not profit unduly in light of the hardship that so many have suffered." Appointed as receiver just days after Dreier, 58, was arrested in Toronto on Dec. 2 and charged with impersonating an employee of the Ontario Teachers' Pension Plan, Pomerantz and his firm quickly went into overdrive.

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