REID COLLINS DEFEATS MOTION TO DISMISS $42 MILLION LAWSUIT AGAINST SUN CAPITAL
On January 23, 2020, the Delaware bankruptcy court denied Sun Capital’s motion to dismiss a $42 million fraudulent transfer action brought by the liquidating trustee for the Limited Stores Company (d/b/a “The Limited”). The trustee alleges that Sun Capital, a large private equity firm, effectively looted The Limited before its bankruptcy by causing the company to issue a highly leveraged $42 million dividend for Sun Capital’s benefit. In denying the motion to dismiss, the court rejected each of Sun Capital’s arguments to hold that the trustee had adequately pleaded and timely filed its complaint. The case will now proceed to discovery.
See order here.
Prior results do not guarantee a similar outcome.