Restructuring Advisor – Fraud Claims Related to Sale of Debtor’s Assets
Successful defense of the former restructuring advisor appointed in Winstar Communication's long-since completed Delaware chapter 11 case in a lawsuit filed by plaintiffs who had purchased the debtor's business in a court approved section 363 sale. The plaintiffs asserted various claims against the advisor and other defendants related to losses sustained following the sale. In a joint effort with the restructuring advisor's co-defendants, Herrick defeated the plaintiff's attempt to circumvent the running of the statute of limitations under Delaware law by filing the action in New York state court. We were able to obtain dismissal of the lawsuit once it was removed to Delaware bankruptcy court, and won affirmation of the dismissal in the Delaware District Court. The plaintiffs' appeal to the Third Circuit was subsequently denied.