Case Updates

  • National trial firm Reid Collins & Tsai LLP represents the Chapter 7 Trustee for the estate of Dura Automotive Services, LLC in lawsuit against former Dura executives Lynn Tilton and Kevin Grady.
  • Lawsuit alleges claims for breach of fiduciary duty against both Tilton and Grady including the failure to pursue a sale of the company to interested third parties.
  • Settlement terms include $12 million payment, achieved before case had even entered discovery.

AUSTIN – September 12, 2023 (PRNewswire) – On Friday, the U.S. Bankruptcy Court for the District of Delaware approved a $12 million settlement of a civil litigation pursued by national trial firm Reid Collins & Tsai LLP (“Reid Collins”) on behalf of Jeoffrey Burtch, the Chapter 7 Trustee (“Trustee”) for the estate of Dura Automotive Services, LLC (“Dura”) against former Dura executives, including Lynn Tilton.

In April 2022, Reid Collins filed suit on behalf of the Trustee against Tilton and another former Dura executive, Kevin Grady. Dura, an automotive parts manufacturer, was a portfolio company of a group of funds called Zohar, also managed by Tilton.

The Trustee’s complaint asserts claims for breach of fiduciary duty against both Tilton and Grady for, among other things, failing to pursue the sale of the company to a group of interested third parties and instead pushing Dura into bankruptcy in an effort to allow Tilton to purchase the company herself at a sharp discount. The settlement was achieved quickly, before active discovery in the case had begun, even before Defendants’ motions to dismiss had been argued and adjudicated.

Reid Collins partner Craig Boneau, who leads the prosecution of the lawsuit, on the settlement’s significance:

“The settlement is an excellent result for the Trustee in a case that represents an important challenge to a common tactic designed to improperly take assets – pushing a company towards or into bankruptcy when a viable sale is possible. Our team expertly navigated numerous factual and legal complications related to Tilton’s Zohar funds and their parallel bankruptcy, and ultimately brought about a successful resolution quickly and efficiently.”

The case is captioned Jeoffrey L. Burtch, as chapter 7 trustee of the estates of Dura Automotive Systems Cable Operations, et al. v. Lynn G. Tilton and Kevin Grady, No. 2022-0343 (Court of Chancery, State of Delaware).

Press coverage of the settlement:


On August 18, 2023, U.S. Bankruptcy Judge John T. Dorsey ruled that ex-Chairman and founder John Kapoor should repay bankrupt opioid manufacturer Insys Therapeutics about $6 million in legal fees that the company provided for his unsuccessful criminal defense.

Reid Collins, representing trustee William Henrich and the Insys Liquidation Trust in civil litigation arising from the company’s bankruptcy case, obtained the win on summary judgment. The Court found that the trustee can claw back $6 million it paid for the criminal defense as Kapoor cannot claim his defense was successful after serving prison time for the charges.

Kapoor was convicted in 2019 of conspiring to bribe doctors to prescribe the fentanyl spray Subsys and defraud insurers into paying for the drug. He was released from prison in June after serving two years of a 5-1/2 year sentence.

Reid Collins partner Eric D. Madden leads the Reid Collins trial team and was quoted in Reuters coverage saying that Henrich was pleased with the decision and would continue to pursue claims against Kapoor for the broader damages that he inflicted upon Insys and its creditors: “This is only the beginning of holding Kapoor accountable.”

Insys, a former public company, marketed and sold a highly addictive and inherently dangerous fentanyl spray to millions of people, contributing significantly to the nation’s opioid crisis. The Trust, as the successor to Insys, alleges in its lawsuit that the company’s executives engaged in a multi-faceted unlawful scheme involving off-label marketing of the drug (non-FDA approved uses), titration of drug dosages (higher than FDA-approved doses), and payment of bribes and other kickbacks to doctors who prescribed the drug. Due to the alleged misconduct, Insys and its executives became the target of multiple criminal proceedings, class actions, and other civil cases, as well as intense media scrutiny, including an HBO documentary and feature stories on 60 Minutes, Frontline, and NBC News. Ultimately, several of the company’s executives were convicted of racketeering charges, and the company agreed to a $225 million settlement with the federal government before collapsing into bankruptcy.

In April 2023, the Reid Collins trial team and the Trust settled claims with the company’s former outside directors in a $175 million settlement, alleging that their failures of oversight enabled this unlawful sales and marketing scheme.

Reid Collins was retained as special litigation counsel to investigate and pursue claims on behalf of the Trust in early 2021, after an extensive interview process. The Insys bankruptcy case is captioned In re Insys Therapeutics, Inc., No. 19-11292 (Bankr. D. Del.), and the Trust’s lawsuit is captioned Henrich v. Kapoor, et al., C.A. No. 12696-JTL (Del. Ch.). The Trust’s claims in that lawsuit remain pending against Kapoor and Michael Babich, the company’s former Chairman and CEO, who were convicted on racketeering charges.

Press coverage:


On August 14, 2023, the Honorable Lyle Frank of New York Supreme Court denied the Defendants’ Motions to Dismiss in a groundbreaking employment discrimination and sexual abuse complaint against the Fox News Network, LLC, Twenty-First Century Fox, Inc., and former Fox News Co-President Bill Shine. The action, filed by leading national trial boutique Reid Collins & Tsai LLP (“Reid Collins”) on behalf of former Fox News employee Laura Luhn, was brought under the 2022 New York State Adult Survivors Act (“ASA”) and related New York City statutes. It alleges a decades-long campaign of discrimination, manipulation, threats, and sexual assaults by former Fox News Chairman and CEO Roger Ailes. The pervasive sexual abuse at Fox News has been the subject of multiple films, exposés, and news coverage.

Judge Frank found that a settlement agreement with Fox that Luhn signed previously may not be enforceable because she may have signed the deal under duress:

“Plaintiff’s complaint is replete with factual allegations regarding duress and her inability to report the alleged sexual abuse and misconduct while it was occurring,” states the order. “At this stage of the litigation, the duress that is alleged to have occurred prior to the negotiation of the agreement between the parties is enough for this case to not be dismissed.”

Likewise, the Court declined to dismiss claims against Bill Shine, finding that:

“[T]here are certainly a myriad of allegations that he was aware of the conduct, did nothing to stop it, and helped cover up the abuse and was involved in the duress that allegedly made the plaintiff sign the release in question.”

Reid Collins partner Barbara Whiten Balliette, counsel for Ms. Luhn, emphasized the firm’s commitment to vindicating her saying: “The abuse and assaults that Ms. Luhn suffered were some of the worst imaginable. People knew, but no one at Fox News stepped in to stop it. Ultimately, her career and her life were destroyed. The Adult Survivors Act was created to redress wrongs exactly like these. We are gratified that the Court sees the need for this case to be properly adjudicated and has denied Defendants’ dismissal motions.”

The case, captioned Laura W. Luhn v. Fox News Network, LLC, Twenty-First Century Fox, Inc. & William Shine, Index No. 950003/2023 (N.Y. Sup. Ct.), has received extensive coverage in the major media.

To view the Complaint, click here.

To view the Court’s August 14, 2023 decision denying Defendants’ motions to dismiss, click here.

To view media reporting on the decision, click on the link below:

The Hollywood Reporter: Fox News Can’t Escape Laura Luhn Lawsuit As Judge Questions Settlement Terms
Daily Beast: Ailes Accuser’s Sex-Abuse Lawsuit Against Fox News Can Proceed, NY Judge Rules Judge Declines To Toss Out Laura Luhn’s Case Against Fox News Over Sexual Abuse Settlement

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Prior results do not guarantee a similar outcome.