Law firm sues bankrupt crypto company's committee over fees

Core Viewpoint - A Texas-based law firm, Lehotsky Keller Cohn, has filed a lawsuit against the board committee and an investor group of the bankrupt Bitcoin miner Rhodium Enterprises, alleging obstruction of a legal fee payment and reputational attacks [1][4]. Group 1: Bankruptcy Filing - Rhodium Enterprises filed for Chapter 11 bankruptcy protection in August 2024, which allows the company to reorganize its debts while remaining operational [2]. - The bankruptcy filing includes six subsidiaries of Rhodium [2]. Group 2: Lawsuit Details - The lawsuit claims that the board committee and investor group at Rhodium engaged in a "scorched-earth" strategy to delay and reduce the payment of an $11 million legal fee related to a $185 million settlement with Whinstone, a unit of Riot Platforms [4]. - Lehotsky Keller Cohn alleges that the special board committee refused to negotiate the legal fee and made public accusations against the law firm, claiming malpractice and breach of client duties [6]. - The law firm has incurred over $1.5 million in fees and expenses to defend itself against these allegations and to recover its success fee [7].