The Score

February 1, 2011 5:49 PM

The Am Law 100: Madoff Work Pays Off for Baker & Hostetler

Posted by Susan Beck

Baker & Hostetler's work for Irving Picard, the trustee of the Bernard L. Madoff Investment Securities bankruptcy proceedings, has been a big boost to the firm. Based on our reporting, it appears that in 2010 the firm's revenue increased 17 percent to $386 million, and profits per partner jumped 27 percent to $763,000. The number of lawyers at the firm rose 7 percent, to 645. (Editor's note: Following a change in our methodology for the 2011 Am Law 200, the firm's 2009 numbers have been recalculated to reflect a full-year head count. All year-on-year percentage changes are based on those recalculated numbers.)

Based on court filings in the Madoff case, it appears that at least $58 million of the firm's 2010 revenue stems from that high-profile assignment. In May the court approved $24.6 million in fees for Picard and the firm, and in September it approved an additional $34.6 million.

These fees are paid by the Securities Investor Protection Corporation, an industry funded group established to protect investors, and not out of the funds recovered for Madoff victims.

Baker & Hostetler has received nearly $97 million in fees to date from Madoff work, stretching back to early 2009.  And there is an outstanding fee request by the firm for nearly $40 million that has not yet been ruled on by Manhattan federal bankruptcy court judge Burton Lifland.

This report is part of The Am Law Daily's ongoing Web coverage of 2010 financial results of The Am Law 100/200. Results are preliminary. Final rankings and full results for The Am Law 100 will be published in The American Lawyer's May 2011 issue and on The Am Law Second Hundred will be published in the June issue.

Results for the 2010 fiscal year reflect a change in the survey methodology. Per-lawyer and per-partner results for 2010 are based on a full calendar year average FTE head count, while published results for previous years were, in most cases, based on an August 31 FTE head count. When possible, we have recalculated fiscal year 2009 numbers to reflect the change in head count and based percentages on those adjusted numbers.

The final published results of last year's Am Law 100 rankings are available here; Second Hundred results are available here.

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How does the expression go ..........
'Nice work if you can get it'.

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