Bankruptcy filings often involve critical litigation, requiring a sophisticated team of litigators with the credibility and experience to pursue these cases creatively and aggressively.
We are called upon to handle some of the nation’s most significant litigation related to bankruptcies. We have secured the largest fraudulent transfer judgment in U.S. history: $5.15 billion after trial in bankruptcy court in the Southern District of New York. Our work has ranged from civil to criminal, and has included both plaintiff and defense work in high-stakes crisis litigation. Our nationally prominent attorneys have been selected by the United States Attorney General to serve as a Bankruptcy Court Litigation Trustee, by the U.S. Bankruptcy Court to serve as a Chapter 11 Trustee, and by the U.S. Attorney’s Office to lead criminal bankruptcy fraud case initiatives.
Secured a $5.15 billion settlement after trial for the Tronox Trust as the litigation trustee responsible for prosecution of consolidated national litigation against Anadarko Petroleum Company and Kerr McGee Corporation for fraudulent transfer of massive environmental, tort, retiree and other liabilities. (See “Tronox Trust Wins Up To $14B In Kerr-McGee Spinoff Row,” Law360; “Anadarko, Kerr-McGee liable for Tronox cleanup costs,” Reuters; “Judge Approves Anadarko’s $5.15 Billion Settlement,” Wall Street Journal).
Represented the law firm O’Melveny & Myers LLP in an $80 million-dollar action brought in the U.S. Bankruptcy Court by the Chapter 7 bankruptcy trustee for a defunct real estate company. The trustee’s complaint against the client included claims for professional negligence and breach of fiduciary duty to the debtors, and also sought to avoid allegedly preferential payments received by the client. Following successful motions to dismiss the trustee’s claims, the matter settled on favorable grounds for the client.
Represented SONIFI Solutions, Inc., one of the largest providers of interactive media services to the hospitality and healthcare industries, in the successful defense of an action brought in federal bankruptcy court to enjoin a critical debt transaction, obtaining a complete dismissal.
Successfully represented Employbridge, one of the nation’s largest specialty staffing companies against its former CEO after he fraudulently transferred millions of dollars to himself during the company’s bankruptcy. Obtained a favorable settlement on the eve of trial.
Represented former equity holders and former management of The Lake at Las Vegas Resort in defense of $500 million in claims alleging breach of fiduciary duty, fraudulent transfer and fraudulent conveyance. After nearly four years of litigation, the matter settled on favorable terms.
Represented an AmLaw 50 law firm in connection with objections filed in the U.S. Bankruptcy Court to the client’s fee application for serving as special litigation counsel under Bankruptcy Code section 327(e). The objectors – comprising the Post-Confirmation Creditors’ Committee and a Claims Holder – challenged the adequacy of the client’s disclosures under Federal Rule of Bankruptcy Procedure 2014. The matter settled on favorable grounds that allowed the client to retain the majority of its fees for its services.
Successfully defended Bairnco Corporation against claims of fraudulent transfer of assets to spin-off entity. Successfully struck on Daubert grounds the plaintiff-trust’s experts on valuation.
Defended against claims of fraudulent conveyance of property under New York law in connection with a potential delinquency and bankruptcy in First Central Savings Bank v. Birnbaum. After developing strong defenses to the stated claims, plaintiff settled on very favorable terms for our client before filing of any motions.
Negotiated a highly favorable global settlement between Cathay Bank and a debtor and related companies and family members after filing for summary judgment on behalf of a real estate investment firm and its managing member. The suit alleged that the debtor and his company fraudulently transferred money, inventory, and real estate interests to his family members and their companies in violation of California’s Uniform Voidable Transactions Act.
Represented a large real estate investor in an action alleging fraudulent transfers arising out of a bankrupt former client convicted of fraud charges. After in-depth litigation, reached highly favorable settlement.
Appointed by U.S. Bankruptcy Court to serve as Chapter 11 Trustee for Morgan Drexen, a nationwide debt service company found to have charged advance fees for debt relief services in violation of the Telemarketing Sales Rule and to have engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act.
Successfully defended numerous individuals alleged to have engaged in criminal bankruptcy fraud, including claims of failure to disclose assets in bankruptcy filings, false statements in bankruptcy proceedings, and conspiracy to commit bankruptcy fraud.