Jones Day settles $9.6 million legal fee lawsuit against private equity firm
By David Thomas
July 10 (Reuters) - U.S. law firm Jones Day said it has settled a $9.6 million lawsuit it filed earlier this year against private equity firm Centre Lane Partners LLC over allegedly unpaid legal fees.
Attorneys for Jones Day and Centre Lane said in a Thursday filing in New York state court that the law firm's case against Centre Lane and dozens of its portfolio companies was being dismissed with prejudice, meaning it cannot be refiled.
The filing did not describe the terms of the settlement. Jones Day, Centre Lane and attorneys for the private equity firm did not immediately respond to requests for comment and more information.
Jones Day's complaint said it began representing Centre Lane in 2018, handling litigation, financings, acquisitions, government investigations and other legal matters for the New York-based private equity firm. Centre Lane's portfolio companies include glassware manufacturer Anchor Hocking and kitchen products maker Corelle Brands, which were both defendants in Jones Day's lawsuit.
Jones Day alleged that Centre Lane abruptly stopped paying invoices in 2024. The law firm said it began formally withdrawing from its representations of Centre Lane and its portfolio companies in January, after repeated broken promises that payment was on the way.
Centre Lane had not formally responded to Jones Day's allegations in court.
The private equity firm was separately sued in Delaware federal court on Tuesday by the former chief executive and financial officers of Instant Pot, another portfolio company, for allegedly violating the federal anti-racketeering law known as RICO.
The lawsuit accused Centre Lane of "conspiring with two of its portfolio companies and people it installed on their Boards of Directors to commit financial crimes — then ousting two executives who refused to participate in the criminal enterprise."
A spokesperson for Centre Lane did not immediately respond to a request for comment on the former Instant Pot executives' lawsuit.
