{"id":5380,"date":"2020-11-04T08:00:00","date_gmt":"2020-11-04T13:00:00","guid":{"rendered":"http:\/\/hoorfarlaw.com\/blog\/?p=5380"},"modified":"2020-11-03T11:38:40","modified_gmt":"2020-11-03T16:38:40","slug":"128-million-suit-against-unitedlex-over-leclairryan-demise-shows-outsourcing-no-cure-for-dying-firm","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=5380","title":{"rendered":"$128 Million Suit Against UnitedLex Over LeClairRyan Demise Shows Outsourcing No Cure for Dying Firm"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2018\/05\/Bankruptcy-5.jpg\" alt=\"\" class=\"wp-image-3931\" width=\"373\" height=\"186\" srcset=\"https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2018\/05\/Bankruptcy-5.jpg 702w, https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2018\/05\/Bankruptcy-5-300x150.jpg 300w\" sizes=\"auto, (max-width: 373px) 100vw, 373px\" \/><\/figure><\/div>\n\n\n\n<p>As a growing number of law firms look to contract with third-party vendors to outsource business operations, a $128 million lawsuit filed by LeClairRyan\u2019s bankruptcy trustee against UnitedLex makes it clear that the risks to both sides can be high. LeClairRyan\u2019s trustee alleged  that the terms of the deal with UnitedLex, which resulted in the creation of a joint venture to handle support services, served only to push the cash-strapped firm \u201cfurther into insolvency.\u201d Now UnitedLex itself faces substantial liability for allegedly sucking money out of the firm, at the expense of LeClairRyan\u2019s other creditors. In June 2018, the two entities unveiled the launch of ULX Partners LLC, a joint venture that was intended to allow LeClairRyan and other law firms to outsource back-office operations and receive equity stakes in the new company. \u201cIf we don\u2019t reach 10,000 employees in the next five years, then I\u2019m not doing something right,\u201d UnitedLex founder Dan Reed told The American Lawyer at the time. \u201cSome people would view that as heretical, but it\u2019s not.\u201d But little over a year later, in August 2019, LeClairRyan announced its dissolution, following months of partner defections that had begun before the UnitedLex deal. The firm filed for bankruptcy five weeks later. And as its fate became increasingly apparent over the course of that summer, UnitedLex had nothing to say about the status of ULX.<\/p>\n\n\n\n<p>Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at\u00a0<a href=\"mailto:https:\/\/www.hoorfarlaw.com\/\">hoorfarlaw.com<\/a>\u00a0to schedule an appointment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a growing number of law firms look to contract with third-party vendors to outsource business operations, a $128 million lawsuit filed by LeClairRyan\u2019s bankruptcy trustee against UnitedLex makes it clear that the risks to both sides can be high. &hellip; <a href=\"https:\/\/hoorfarlaw.com\/blog\/?p=5380\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[267,76,736],"class_list":["post-5380","post","type-post","status-publish","format-standard","hentry","category-general","tag-attorney","tag-bankruptcy","tag-debt"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5380"}],"version-history":[{"count":1,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5380\/revisions"}],"predecessor-version":[{"id":5381,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5380\/revisions\/5381"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}