 Counsel for the official creditors committee gave tacit approval of the conflict as neither law firm brought the matter to the attention of the court.Sequential conflict disclosure misconduct in the SONICblue bankruptcy case has escalated the possible consequences to Pillsbury.The lawyer representing the successor to SONICblue subsequently learned that in addition to the failure to disclose the conflict, the firm also failed to disclose their own withdrawal of funds from the Debtor during the pre-petition preference period and had petitioned the Federal Judge to refer the firm's responsible lawyers for criminal prosecution and sought $30 million in damages from Pillsbury Winthrop and associated parties on the official creditors committee as well as their counsel.