Despite a court-ordered mediation and months of negotiations, the parties filed a joint status report on Monday confirming that no resolution had been reached. According to sources familiar with the proceedings, Judge Alia Moses had given a hard deadline of July 15 for the parties to wrap up talks or face trial preparations. That date has now passed, and the matter is moving forward toward litigation or jury trial, possibly by the end of the year.
The U.S. Trustee — a division of the Department of Justice that oversees bankruptcy cases — is seeking the disgorgement of legal fees amounting to between $11 million and $23 million, arguing that Jackson Walker failed in its ethical and legal obligations by not revealing the conflict of interest to clients or the court. In roughly 30 to 33 bankruptcy cases, Judge Jones issued rulings while being romantically involved with Freeman — who was involved in many of those very cases.
For its part, Jackson Walker denies wrongdoing, arguing that it did not know the full extent of Freeman’s relationship with Judge Jones until well after the fact. The firm claims it acted in good faith and maintains that any mistakes were unintentional. However, the U.S. Trustee contends that ethical rules and disclosure obligations in the federal bankruptcy system leave no room for ambiguity — especially when the integrity of the court is at stake.
Legal experts view this case as a potential turning point in bankruptcy court ethics enforcement. “This is about much more than one law firm,” said one professor of legal ethics. “This case could reshape how courts handle conflicts of interest, disclosures, and what remedies are appropriate when a judge’s impartiality is compromised.”
Meanwhile, former Judge Jones, who resigned in 2023, has not been charged with any crime but has faced scathing criticism for failing to recuse himself or disclose the relationship during his time on the bench.
