A former partner at Jackson Walker LLP, accused of concealing a romantic relationship with ex-Texas bankruptcy judge David R. Jones, has petitioned the court to dismiss a proposed class action lawsuit filed by bondholders of GWG Holdings Inc. The bondholders allege that the undisclosed relationship compromised the integrity of GWG’s Chapter 11 proceedings.
This legal action is part of a series of lawsuits stemming from the revelation of the relationship between Jones and Elizabeth Freeman, a former Jackson Walker partner. The U.S. Trustee’s office is also seeking to recover approximately $13 million in fees paid to Jackson Walker in cases overseen by Jones, where the firm did not disclose the relationship. In response, Jackson Walker has argued that it acted appropriately and could not disclose information it was unaware of.
In a separate case, a civil racketeering lawsuit was filed against Jones, Freeman, Jackson Walker, and Kirkland & Ellis LLP by Morton Bouchard III, former CEO of Bouchard Transportation Company. Bouchard alleges that the defendants conspired to collect excessive fees during his company’s bankruptcy proceedings. Jackson Walker has moved to dismiss the lawsuit, describing it as “fiction” and asserting that Bouchard lacks standing.
The controversy has also led to increased scrutiny of Jackson Walker’s internal communications. In October 2024, text messages from 2021 between Jackson Walker attorneys were disclosed, prompting bankruptcy plan administrators to request a full evidentiary hearing to determine if the firm failed to meet disclosure obligations regarding the relationship.
These developments underscore the ongoing legal and ethical challenges facing Jackson Walker and other parties involved, as the legal community continues to grapple with the implications of undisclosed relationships on judicial proceedings.