Experience

• Bankruptcy Litigation Highlights

  • Currently representing more than a dozen leading investment managers and related funds in defending against fraudulent transfer claims brought by the Opioid Trust in the Mallinckrodt Chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the District of Delaware.
  • Currently representing an investment manager and related funds in defending against fraudulent transfer and other claims in the IIG bankruptcy case pending in the United States Bankruptcy Court for the Southern District of New York.
  • Currently representing a private equity firm and related funds in defending against fraudulent transfer and other claims in the Lucky Bucks Holdings bankruptcy case pending in the United States Bankruptcy Court for the District of Delaware.
  • Currently representing various investment funds in litigation arising out of the Wirecard Inc. insolvency proceedings pending in Germany.
  • Represented the debtors, Diamond Sports Group and affiliated entities, a subsidiary of Sinclair Broadcast Group, in certain litigation and plan confirmation in their Chapter 11 bankruptcy case in the US Bankruptcy Court for the Southern District of Texas.
  • Obtained the dismissal of all claims—for market manipulation—by the Debtors’ Equity Committee against two leading global financial institutions in litigation in the Sorrento bankruptcy case pending in the US Bankruptcy Court for the Southern District of Texas.
  • Obtained the pleadings-stage dismissal of all claims—for aiding and abetting fraudulent transfer and aiding and abetting fraud—against a leading global financial institution in bankruptcy court. Cecchi Gori Pictures et al v. Barclays Bank PLC, Adv. Pro. No. 20-05053 (Bankr. N.D. Ca. July 23, 2021).
  • Prevailed after a 6-day trial on behalf of a Fortune 500 company in bankruptcy litigation seeking to enforce an order authorizing the debtor's sale of intellectual property to the company for $154 million pursuant to Section 363 of the United States Bankruptcy Code. The United States Bankruptcy Court for the Southern District of Florida ruled for the company on all issues, enforced the sale order, found the defendants in contempt of court, and awarded the company its attorney's fees incurred in enforcing the sale order. TransUnion Risk and Alternative Data Solutions, Inc., v. The Best One, Inc. (In re TLFO, LLC), No. 13-20853, 2016 WL 9651125 (Bankr. S.D. Fla. Aug. 18, 2016).  After filing a petition for attorney's fees, the company successfully argued in opposition to the defendants' summary judgment motion that, among other things, it was entitled to all of the fees it incurred as a result of the defendants' violation of the sale order and reimbursement of fees at prevailing New York legal market rates. TransUnion Risk and Alternative Data Solutions, Inc. v. The Best One, Inc. (In re TLFO, LLC), No. 13-20853-BKC-PGH, 2017 WL 3669546 (Bankr. S.D. Fla. May 18, 2017).
  • Obtained the dismissal of all claims against the former shareholders of The Jones Group, Inc., totaling nearly $1 billion, brought by bankruptcy and indenture trustees in 15 consolidated actions arising out of the 2014 acquisition of The Jones Group Inc. by Sycamore Partners Management, L.P. The United States District Court for the Southern District of New York dismissed the trustees' fraudulent transfer claims because they were barred by the safe-harbor in section 546(e) of the Bankruptcy Code for settled securities transactions. In re Nine W. LBO Sec. Litig., 2020 WL 5049621 (S.D.N.Y. Aug. 27, 2020).
  • Obtained the dismissal of all claims against five financial institutions sued in fraudulent transfer adversary proceedings brought by the Special Claims Committee of the Financial Oversight and Management Board for Puerto Rico in the Title III PROMESA insolvency proceedings.
  • Obtained the dismissal of all claims against all 15 clients who were sued in a fraudulent transfer adversary proceeding brought by the Debtors in the bankruptcy case of Orion Healthcare, Inc. The plaintiff dismissed all claims (totaling over $50 million) after the defendants established that they were conduits through which the proceeds at issue passed, rather than the beneficial holders who received such proceeds for their own accounts. Orion HealthCorp, Inc., et al v. CHT Holdco LLC, et al, Adv. Pro. No. 18-08048 (E.D.N.Y. 2019).
  • Represented a major securities trading firm in the successful defense and appeal of multi-billion-dollar fraudulent transfer litigation arising out of the Tribune leveraged buy-out.
  • Obtained the dismissal of all federal and state intentional fraudulent transfer and constructive fraudulent transfer claims against the former shareholders of Lyondell Chemical Company, totaling more than $5.9 billion, brought by bankruptcy trustees in adversary proceedings arising out of the 2007 merger between Lyondell and Basell. The United States Bankruptcy Court for the Southern District of New York dismissed the trustees' state-law fraudulent transfer claims because they were barred by the safe-harbor in section 546(e) of the Bankruptcy Code for settled securities transactions. Weisfelner v. Fund 1 (In re Lyondell Chem. Co.), Adv. Pro. No. 10-04917 (Bankr. S.D.N.Y. July 20, 2016). As a question of first impression, the United States District Court for the Southern District of New York adopted the shareholders' argument that the Restatement of Torts' standard should apply to an intentional fraudulent transfer claim: namely, that the debtor must know to a “substantial certainty” that a transfer will cause the debtor to become insolvent. Weisfelner v. Hofmann (In re Lyondell Chem. Co.), No. 16-00518, 2016 WL 4030937 (S.D.N.Y. July 27, 2016). Applying that legal standard, the United States Bankruptcy Court concluded that the trustees did not prove that payments to Lyondell's shareholders in the merger were an intentional fraudulent transfer.  
  • Obtained the dismissal of three global financial institutions in an action brought by the Joint Official Liquidators of the SPhinX hedge funds asserting aiding and abetting claims under New York law. The United States District Court for the Southern District of New York dismissed certain of plaintiffs' claims for lack of standing (Krys v. Sugrue, 2010 US Dist. LEXIS 41386 (S.D.N.Y. Feb. 3, 2010) (Report and Recommendation adopted by the Court)), the remaining claims against one of the three financial institutions for failing to allege adequately that the financial institution had actual knowledge of any wrongdoing (Krys v. Sugrue, 2011 US Dist. LEXIS 142291 (S.D.N.Y. Dec. 8, 2011) (Report and Recommendation adopted by the Court)), and the remaining claims against the other two financial institutions for failing to present evidence that plaintiffs suffered any damages proximately caused by such institutions' alleged conduct. The Second Circuit affirmed the dismissal of all remaining claims against the financial institutions. Krys v. Klejna, 14-3446-cv (2d Cir. July 29, 2016).
  • Represented three subsidiaries of global financial institutions in actions brought by the Chapter 7 Trustee of Suffolk LLC alleging fraudulent transfer and unjust enrichment claims arising out of payments made pursuant to a tender offer to purchase privately held stock. The United States District Court for the Southern District of New York dismissed the claims on the grounds that Section 546(e) of the United States Bankruptcy Code barred certain of the Trustee's claims and the Trustee's remaining claims were otherwise deficient. In re Refco Securities Litigation, 2009 WL 7242548 (S.D.N.Y. Nov. 13, 2009); and 2010 WL 5129072 (S.D.N.Y. Jan. 12, 2010).
  • Represented three global investment banks in an action brought by the Refco Litigation Trustee alleging various state law causes of action. The United States District Court for the Southern District of New York dismissed the claims with prejudice on the grounds that the Litigation Trustee was barred from asserting his claims by the doctrine of in pari delicto. Kirschner v. Grant Thornton LLP, et al, 2009 WL 996417 (S.D.N.Y. Apr. 14, 2009), aff'd Kirschner v. KPMG LLP, et al, 626 F.3d 673 (2d Cir. 2010).