Reid Collins Defeats Demurrer Seeking to Dismiss $200 Million Fraudulent Transfer Case
On October 31, 2019, Reid Collins defeated a demurrer filed by Levine Leichtman Capital Partners and other recipients of over $200 million in fraudulent transfers from the Pacific World Corporation. The claims arose in connection with the defendants’ orchestration of an over $200 million dividend recap transaction that lined their own pockets while leaving Pacific World hopelessly insolvent. In overruling the demurrer, the Court held that ratification is not a defense to fraudulent transfer claims under California law and that California recognizes a cause of action for aiding and abetting fraudulent transfers. Discovery in the case is ongoing.
See Opinion here.
Prior results do not guarantee a similar outcome.