The Texas law firm Jackson Walker has agreed to pay $15 million to settle a civil case brought by the Justice Department’s bankruptcy division. The settlement resolves claims that the firm concealed an undisclosed romantic relationship involving a former partner and the nation’s former top bankruptcy judge.

The dispute centers on the relationship between former judge David R. Jones and Elizabeth Freeman, a former partner in Jackson Walker’s bankruptcy practice who served from 2018 to 2022. The firm was accused of failing to disclose the affair to federal regulators.

Jackson Walker denied wrongdoing in the settlement, stating it did not admit fault. The payment is intended to resolve the allegations and avoid further litigation. The Justice Department’s civil division claims the firm’s nondisclosure violated federal ethics rules.

The case highlights the importance of transparency for law firms dealing with public officials. By settling, Jackson Walker seeks to focus on its core legal services while addressing the Department’s concerns. The outcome may influence future compliance practices in the industry. This settlement is expected to close the matter by the end of the year.