Prominent Texas law firm Jackson Walker LLP has agreed to a $15mn settlement with US federal authorities over a judicial scandal. The firm was accused by the Office of the US Trustee of failing to disclose a romantic relationship between former partner Elizabeth Freeman and Judge David Jones. Freeman had clerked for Jones before joining Jackson Walker, and the firm appeared in over 30 Chapter 11 cases where Freeman represented clients before Jones between 2018 and 2023.

Jones resigned in October 2023 after admitting to the relationship. The US Trustee sought to recover over $30mn in fees paid to Jackson Walker in cases involving Freeman, including restructurings for JC Penney and Neiman Marcus. Separately, the firm had already agreed to repay nearly $5mn in fees to individual bankruptcy estates.

While a federal judge dismissed a racketeering lawsuit against Jones, Freeman, Jackson Walker, and Kirkland & Ellis in 2024, the judge criticized the lack of disclosure. Jackson Walker acknowledged in the settlement filing that it could have handled the matter differently and has committed to improving its conflict screening and disclosure practices.