A firm client favorably settled a lawsuit brought by the litigation trustee of a bankrupt company. The trustee sued to recover more than $262 million in payments that the company made to the client as alleged preferences or fraudulent transfers prior to the bankruptcy filing. Our firm represented the client in defending the lawsuit in U.S. Bankruptcy Court for the Southern District of New York. After the initial filing, we contacted the trustee and provided information that led the trustee to amend his complaint and reduce the claim against the client to $8.6 million.
Our firm also represented the client in connection with mediating the dispute, and the client ultimately settled at a much smaller amount that avoided disruptions to the client’s business.