Legal News

Ambac case lawyers, advisers get $18 million

By (Breaking Legal News)

With more than $67 billion of its insurance coverage placed into a special receivership fund, Ambac Assurance Corp. is flirting with financial ruin. Yet at the same time, lawyers and consultants helping Wisconsin regulators navigate the complex case have collected nearly $18 million for their efforts.

And the meter is still running.

At the top of the billing list, state records show, is Foley & Lardner, the Milwaukee-based law firm with close ties to Gov. Jim Doyle. Employees of Foley have contributed $355,596 to Doyle's campaigns since 1999, more than any other group from one employer, according to data analyzed by the nonpartisan Wisconsin Democracy Campaign at the Journal Sentinel's request.

Foley, the state's largest law firm, has billed the state $6.6 million for its work on the Ambac case since it was hired in February 2008 - more than four times the next highest sum paid to an outside special counsel for one case since Doyle took office in 2003, according to the state attorney general's office.

Three Foley attorneys, including David Walsh, a longtime friend and major contributor to Doyle, have billed more than $1 million each for their Ambac work. Walsh and members of his family have contributed $64,520 to Doyle's campaigns since 1999, including $40,520 since 2003, topping the list of all individual contributors to Doyle, according to the Democracy Campaign, which analyzes campaign finance reports filed with the state.

Marc Marotta, a Doyle confidant who chaired his 2006 campaign and served on the governor's cabinet, is a Foley partner who has billed 24 hours on the Ambac case. State Insurance Commissioner Sean Dilweg, who hired Foley for the Ambac case, was a top aide to Marotta in the state Department of Administration before being named insurance commissioner in 2007.

Full post as published by Breaking Legal News on July 27, 2010 (boomark / email).