Mega-law firm Skadden Arps has reached a settlement with regard to its representation of former hedge fund manager “Buddy” Fletcher Jr, who ran Fletcher International Ltd, which could have exposed Skaddens to legal claims.
Fletcher’s hedge funds are in bankruptcy liquidation and the settlement of $4.25 million removes Skaddens from the sights of the trustee charged with overseeing the groups’ liquidation, which had shown potential claims against Skadden in respect of its work for Fletcher Asset Management and the possibility of a claim for a failure to properly protect Fletcher’s funds and their investors.
Skaddens dispute the allegations and indicated they would be defending any such legal action. The settlement was evidently taken to avoid both the expense and uncertainty of legal action.
Alphonse “Buddy” Fletcher Jr., an African American who attended Harvard University, was chairman and chief executive officer of Fletcher Asset Management Inc., which he founded in March 1991. He received a Harvard University Harvard Gay & Lesbian Caucus (HGLC) award in 2005 and in 1996 endowed the Alphonse Fletcher University Professorship at Harvard.