News

February 2021 – Having received multiple national accolades honoring their remarkable achievements in the last several years, Reid Collins and founding partner William T. Reid IV have again been shortlisted alongside the top litigation firms and practitioners in the US for the 2021 Benchmark Litigation Awards. For the third consecutive year, Reid Collins has been named a finalist for US Plaintiff Firm of The Year, and for the second year in a row the firm has been shortlisted as the Texas Firm of the Year. Reid, the 2020 winner, has again been selected as one of five finalists for US Plaintiff Litigator of Year by Benchmark. As was the case last year, he is in competition with several of the most prominent and accomplished names in the legal industry for this honor. The Benchmark awards celebrate the leading litigators and most impactful disputes across the United States. The shortlists are the culmination of months’ research, surveying thousands of referees, and interviewing hundreds of lawyers. The award winners will be announced in a virtual ceremony scheduled for March 31, 2021.
Click here to view the shortlist.

After defeating all motions to dismiss in New York State Court in May 2020, Reid Collins expanded its derivative litigation on behalf of Renren, Inc., filing an Amended and Supplemental Complaint. The amended complaint adds new defendants Softbank Group Capital Limited (“Softbank GCL”) and Social Finance, Inc. (“SoFi”) as well as additional claims.
Click here to see the press release.

We are excited to announce our founding partner William (Bill) T Reid IV a student at heart, with the help of several of our partners will be teaching a new course, “Complex Financial Litigation,” at the University of Texas School of Law. The inaugural course, set to begin in the upcoming Spring term, will take students through various hypothetical cases involving financial fraud as well as real-world cases that Reid Collins has handled over the years.
Read article here.

On October 26, 2020, Reid Collins prevailed on its motion to remand a $63.6 million lawsuit back to Dallas state court. The lawsuit involves BBVA’s claims against three high-ranking officers of Nobilis Health Corp., a former publicly traded company that owned and operated dozens of specialty surgical hospitals, ambulatory surgical centers, and multi-specialty clinics. BBVA alleges that these officers made negligent and/or fraudulent misrepresentations related to the company’s financial statements in order to avoid a loan covenant default and to obtain an additional loan from BBVA and its syndicate lenders.

Reid Collins was featured by Lawdragon (link) on October 2, 2020, for a lawsuit filed in Houston state court on behalf of Precision Castparts Corp. and PCC Germany Holdings GmbH (together, “Precision”) against Jones Day for aiding and abetting fraud, conspiracy to defraud, fraud, and negligent misrepresentation. The lawsuit seeks to recover $750 million in damages for Jones Day’s role in helping its former client, Schulz Holding GmbH & Co. KG (“Schulz”), fraudulently induce Precision into purchasing Schulz’s subsidiaries for roughly €800 million. Precision already has a judgment against Schulz for the fraud. The lawsuit against Jones Day alleges that Jones Day was aware of Schulz’s fraud and took overt acts to help conceal and misrepresent the true financial condition of the Schulz’s subsidiaries.
See full story here.

On September 29, 2020, Reid Collins obtained a $1 billion judgment in New York State Supreme Court on behalf of affiliates of Highland Capital Management, L.P. against John Mayo and a group of Celtic Pharma entities that Mr. Mayo co-founded with his business partner, Stephen Evans-Freke. After the trial court and First Department each rejected attempts to dismiss the case by Mr. Mayo and the Celtic Pharma entities, it subsequently entered judgment in the plaintiffs’ favor, including for claims against Mr. Mayo as an alter ego of various Celtic Pharma entities that defaulted on senior secured notes issued to the plaintiffs. The plaintiffs’ claims against Mr. Evans-Freke and his current fund, Auven Therapeutics (as alleged successor to the Celtic Pharma investment manager that defaulted) remain pending in the trial court.

Reid is featured in the second episode of the podcast, The Successful Business and Practice of Law, discussing highlights from his career and insights on running a successful litigation boutique, including billing and compensation structures.
“Some lawyers have the view that suing a lawyer is somehow beneath us,” says Reid in the candid interview. “I had the opposite view, I think people make mistakes whether they’re lawyers or directors of companies or accountants. So one of the national calling cards we have wasn’t born out of some savvy, ‘hey we want to be legal malpractice lawyers.’ It was more born out of the fact that no one else would do them.”
Listen to the podcast here

Reid Collins would like to congratulate P. Jason Collins, Eric D. Madden, William T. Reid IV, and Lisa S. Tsai for being named to the list of 2021 Best Lawyers in America. Selection to this group is based on an exhaustive peer-review evaluation. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area.

Reid Collins is pleased to announce that Jason A. Cairns, Leo Oppenheimer, Scott D. Saldaña, and Jeremy Wells were included in the inaugural edition of the Best Lawyers: Ones to Watch for their work in Commercial Litigation. Ones to Watch recognizes associates and other lawyers who are earlier in their careers for their outstanding professional excellence in private practice in the United States.

Reid Collins is pleased to announce that Eric Madden and Bill Reid have been named to Lawdragon’s inaugural lists of the top 500 Leading Global Restructuring & Insolvency Lawyers and the top 500 Leading U.S. Bankruptcy & Restructuring Lawyers. These lawyers, “who dazzle with their mastery of finance, dispute resolution and litigation strategy under extreme duress,” were selected through a combination of journalistic research, law firm submissions, and editorial vetting from a board of legal peers.
The lists are available here and here.

On July 28, 2020, the U.S. District Court for the Southern District of New York denied Brown Rudnick’s motion to dismiss a $300 million legal malpractice claim filed by the Litigation Trust for Lyondell Chemical Company. The Trust alleged that Brown Rudnick committed malpractice in its representation of the Trust when it botched the prosecution of a $300 million preference claim. Brown Rudnick moved to dismiss the complaint by arguing that its alleged failings were “strategy calls” and that any negligence on its part did not cause the Trust to lose the preference claim. The court rejected each of Brown Rudnick’s arguments. In so doing, the court held: “Considering the [amended complaint]’s allegations alongside Brown Rudnick’s proffered reasons for its litigation choices, there are, at minimum, questions of fact as to whether Brown Rudnick deliberately made such choices and whether those choices were reasonable.” The case will now proceed to discovery.
See order here.

Reid Collins is proud to be among 18 leading law firms from across the country that have joined the ACLU of Louisiana’s litigation campaign to challenge racially discriminatory policing practices in Louisiana. The initiative, called “Justice Lab: Putting Racist Policing on Trial,” seeks, over time and in a sustained fashion, to bring up to 1,000 cases in Louisiana challenging racially-motivated stops and seizures under the Fourth and Fourteenth Amendments and any other applicable laws. By focusing intensive efforts on a single state, Justice Lab aims to test the impact that litigation has on police conduct. More information about the Justice Lab project can be found here.

On June 17, 2020, Reid Collins defeated a motion for summary judgment in its legal malpractice lawsuit against Crane Heyman Simon & Clar (n/k/a Crane, Simon, Clar & Goodman), a Chicago-based bankruptcy boutique firm. Reid Collins represents the liquidating trustee of the World Marketing Liquidating Trust and sued Crane Heyman in 2017 for failing to advise former clients of their duties and responsibilities under the WARN Act.
In a move that should unsettle any distressed company needing its services, Crane Heyman argued that it could not have committed legal malpractice because its clients were already insolvent. The United States District Court for the Northern District of Illinois rejected that argument, issuing an 11-page opinion that denied Crane Heyman’s motion and emphasized that Crane Heyman’s position was “unsound as both a matter of law and policy.”
See story here.

On June 5, 2020, Reid Collins filed an action on behalf of Alan Nisselson, the chapter 7 trustee of Helios and Matheson Analytics, Inc. (“Helios”) and MoviePass Inc. (“MoviePass”) in the Bankruptcy Court for the Southern District of New York against former directors and officers of Helios and MoviePass. The Trustee seeks to recover at least $187 million in damages for breaches of fiduciary duty against the former directors and officers for recklessly causing Helios and MoviePass to waste hundreds of millions of dollars on a failing business in the face of glaring red flags that showed them that MoviePass could never succeed.
See Complaint here.

On May 29, 2020, Reid Collins filed a $63.6 million lawsuit in Dallas state court, asserting BBVA’s claims against three high-ranking former officers of Nobilis Health Corp., a former publicly traded company that owned and operated dozens of specialty surgical hospitals, ambulatory surgical centers, and multi-specialty clinics. The lawsuit alleges that these officers made negligent and/or fraudulent misrepresentations related to the company’s financial statements in order to avoid a loan covenant default and to obtain an additional loan from BBVA and its syndicate lenders.
See story here.

Reid Collins is pleased to announce that William T. Reid IV, Eric Madden, Jason Collins, Lisa Tsai, Rachel Fleishman, Nate Palmer, Josh Bruckerhoff, and Craig Boneau have all been included in the 2020 Lawdragon Plaintiffs Issue. The magazine also includes features on Palmer, Bruckerhoff, and Boneau, who were all named to their first Lawdragon list in 2019. Reid Collins is honored and proud to be recognized by Lawdragon alongside the very best plaintiffs lawyers in the country. The online version of the Lawdragon Plaintiffs Issue can be found here.

On May 21, 2020, Reid Collins defeated an appeal by a group of defendants seeking to reverse the New York Supreme Court’s denial of their motions to dismiss. Defendant Stephen Evans-Freke withdrew his appeal prior to the ruling, but his current fund Auven Therapeutics, John Mayo, and a number of Mayo’s and Evans-Freke’s Celtic entities continued to press their appeals. The First Department rejected each of their arguments, finding that plaintiffs sufficiently pleaded that all defendants were subject to personal jurisdiction in New York based on, among other things, New York’s “closely-related doctrine” and that Auven was subject to liability as a successor to the Celtic investment manager. In the suit, plaintiffs are asserting direct and alter-ego-based claims against Evans-Freke, Mayo, Auven, and the Celtic entities for breach of their obligations to pay principal and interest due on notes purchased by plaintiffs and issued by one of defendants’ shell companies. Plaintiffs also assert that Evans-Freke, Mayo, and Auven used the Celtic corporate structure to bleed out the assets of the issuing entity and the related guarantors in an attempt to ensure plaintiffs could not recover the payment due on the notes, and instead that Auven could conduct the same business free and clear of the obligations owed to plaintiffs. Plaintiffs seek to recover the nearly $1 billion currently owed on the notes. The First Department’s opinion can be found here.

On May 20, 2020 Reid Collins defeated five motions to dismiss filed by defendants in a suit involving an alleged scheme by Renren insiders to squeeze out minority shareholders and take the company’s billion-dollar investment portfolio for themselves. The New York Supreme Court for New York County today entered a 71-page order denying all of the motions filed by insiders and others involved in the transaction.
The defendants – Joseph Chen, David Chao and related DCM Investments funds, Oak Pacific Interactive (“OPI”), and Duff & Phelps, LLC – had moved to dismiss, asserting lack of personal jurisdiction and that Reid Collins’ clients, including Renren shareholders Heng Ren Silk Road Investments LLC and Oasis Investments II Master Fund Ltd., lacked derivative standing under Cayman law to pursue the claims.
The suit arises out of Mr. Chen’s and Mr. Chao’s alleged scheme to take Renren’s billion-dollar investment portfolio for themselves and their associates through a sham transaction in which Renren’s investment portfolio was transferred to an entity (OPI) that was then divested from Renren. Unlike a normal spin-off, Renren’s minority shareholders did not receive shares of OPI, but instead received an artificially low cash dividend based on a deflated value for OPI and its assets, including a $560+ million interest in renowned fintech company Social Finance, Inc. The valuation on which the cash dividend was based undervalued the investment portfolio by hundreds of millions of dollars. Renren had originally obtained the investment portfolio at issue with the proceeds of its initial public offering of American depository shares on the New York Stock Exchange.
Justice Andrew Borrok rejected the defendants’ arguments that New York courts could not exercise specific personal jurisdiction. Justice Borrok similarly rejected the defendants’ arguments that the claims at issue did not give rise to derivative standing under Cayman law’s “fraud on the minority” exception.
See Story Here.
See Decision Here.

Reid Collins is pleased to announce that William T. Reid, IV, a founding partner of the firm, has been recognized by the National Law Journal in its 2020 Plaintiffs’ Lawyers Trailblazers series for the second year in a row. This series spotlights “a handful of individuals . . . that are truly agents of change” on the plaintiffs’ side of the docket. See story here.

Reid Collins partner Adam Swick is a project editor for the ABI International Committee in an effort to highlight individual measures undertaken by various countries to curb the negative impact of the COVID-19 pandemic on their respective economies. In a comparative format, the committee created a comprehensive schematic summarizing the macro- and micro-economic efforts in response to COVID-19. The countries featured include Canada, Cayman Islands, Chile, France, Germany, Channel Islands (Guernsey), Channel Islands (Jersey), Hong Kong, India, Italy, Mexico, Netherlands, Russia, Singapore, Spain, the United Kingdom, and the United States. Summaries of the measures from other countries are forthcoming and will be posted to this page.

Reid Collins capped off a record-setting first quarter with founding partner William T. Reid, IV being named Plaintiff Attorney of the Year by Benchmark Litigation, a leading guide to litigation firms and attorneys. The firm, which celebrated its 10th anniversary late last year, was also named as one of five finalists for Plaintiff Firm of the Year for the second consecutive year, as well as making the shortlist for Texas Firm of the Year.

The accolade caps off an impressive award season for Reid Collins, which was also recognized by the National Law Journal Elite Trial Lawyers Law Firm of the Year in both Commercial Litigation and Bankruptcy last month. The firm beat stiff competition from some of the legal industry’s best-known names to take the accolades, which recognize U.S. based law firms that have performed cutting-edge work on behalf of plaintiffs.

Read article here.

On February 5, 2020, Reid Collins filed an amended complaint on behalf of the LB Litigation Trust against Brown Rudnick LLP for legal malpractice and breach of fiduciary duty. The LB Litigation Trust alleges that Brown Rudnick botched the prosecution of a $300 million preference claim by failing to prove that the debtor, Lyondell Chemical Company, was insolvent at the time of the preferential transfers. Specifically, as alleged in the complaint, Brown Rudnick inexplicably missed $8 billion in liabilities owed by Lyondell that clearly rendered the debtor insolvent. Brown Rudnick also failed to submit an expert opinion on Lyondell’s insolvency and misunderstood well-established law on how to prove a preferential transfer under the Bankruptcy Code. The complaint further alleges that Brown Rudnick internally acknowledged its mistakes but concealed its malpractice from the Trust.
Read complaint here.

On January 21, 2020, Reid Collins defeated a motion to dismiss its $550 million lawsuit against Sterling Partners on behalf of the Adeptus Litigation Trust. The suit alleges that Sterling and its co-defendants breached their fiduciary duties to Adeptus Health Inc., a former public company and largest owner of free-standing emergency rooms in the country. Specifically, the suit alleges that Sterling forced Adeptus to buy out its position at artificially inflated prices shortly before Adeptus collapsed into bankruptcy. In denying Sterling’s motion, the Delaware Chancery Court described the case as involving “a very sophisticated pump-and-dump scheme . . . carried out by a highly sophisticated investment firm.”
See hearing transcript here.

Each year, D Magazine honors up-and-coming attorneys in Dallas by publishing its list of the best lawyers under 40 in Dallas. Honorees are nominated by their peers and selected by an anonymous panel of esteemed local lawyers.
D Magazine included Ben Barnes of Reid Collins & Tsai LLP as one of the Best Lawyers Under 40 in Dallas in 2020.
See story here.

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.

Reid Collins is honored to have been named Law Firm of the Year in two practice areas—Commercial Litigation and Bankruptcy—at the National Law Journal’s 2020 Elite Trial Lawyers ceremony. This accolade recognizes U.S. based law firms that have performed cutting-edge work on behalf of plaintiffs.

On December 20, 2019, the Texas Supreme Court addressed a certified question—at the request of the Fifth Circuit—related to the $7 billion Ponzi scheme perpetrated by Allen Stanford and Stanford International Bank. Specifically, the Court ruled that a transferee on inquiry notice of a fraudulent transfer may not satisfy a good-faith defense under the Texas Uniform Fraudulent Transfer Act, unless the transferee conducted a diligent investigation. Reid Collins had filed an amicus brief seeking such a ruling on behalf of the National Association of Bankruptcy Trustees. The ruling is a significant victory for trustees, receivers, and other plaintiffs in fraudulent transfer litigation, not only in Texas, but also in other jurisdictions around the country.
See opinion here.

On November 19, 2019, Reid Collins filed an $80 million lawsuit on behalf of the Chapter 7 trustee of Central Grocers, which was once one of the largest grocery cooperatives in the country. In this lawsuit, the trustee asserts that the company’s directors breached their fiduciary duties in a “fundamental misalignment of interests” to benefit themselves.
See complaint here.
See story here.

Reid Collins is thrilled to be named as a finalist in the Bankruptcy and Commercial Litigation Law Firm of the Year category for the National Law Journal’s “2020 Elite Trial Lawyers,” an award it won last year. Reid Collins is also nominated this year for the Business Torts Law Firm of the Year category. The lawyers and law firms selected by editors and reporters from ALM and the National Law Journal have demonstrated repeated success in cutting-edge work on behalf of plaintiffs over the last 15 months. The 2020 Elite Trial Lawyers awards ceremony will be held as part of the NTL Trial Lawyers Summit in January 2020. This recognition would not be possible without our incredible team’s dedication and solid track record on behalf of our clients.
See story here.

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.

In an important False Claims Act ruling on November 13th, the U.S. District Court for the Western District of Texas denied a motion to dismiss the core qui tam claims against Creative Solutions in Healthcare Inc. by Integra Med Analytics LLC alleging that the operator of a network of skilled nursing facilities engaged in a scheme to defraud the Medicare system by pressuring therapists to deploy Ultra High Rehab on patients regardless of need, training therapists to fraudulently bill for Ultra High Rehab, and enforcing fraudulent policies to maximize patient stays to the maximum 100 day period covered by Medicare Part A.
See Decision here.

Reid Collins is honored to be featured in The National Law Journal’s Special Report for our win in the bankruptcy category at the 2019 Elite Trial Lawyers awards earlier this year. This accolade recognizes U.S. based law firms that have performed cutting edge work on behalf of plaintiffs. This latest honor comes as Reid Collins celebrates its 10th anniversary and marks one of the most successful years in its history.
See story here.

Reid Collins is thrilled to announce that William T. Reid, IV, a founding partner of the firm, has been recognized by Texas Lawyer in its inaugural Trailblazers series. This series spotlights individuals that are sincerely innovators and thought leaders in their practice.
See story here.

Reid Collins is pleased to announce that eight of its attorneys have been named to the Lawdragon 500 Leading Plaintiff Financial Lawyers in America for 2019. This Guide, first published in 2007, presents a curated look at the best of the U.S. plaintiff bar who specialize in representing individual investors and shareholders, as well as businesses and other organizations harmed by corporate misconduct or other failures. Congratulations to Bill Reid, Jason Collins, Lisa Tsai, Eric Madden, Rachel Fleishman, Joshua Bruckerhoff, Nathaniel Palmer, and Craig Boneau.

Rachel Fleishman moderated a panel on “Managing Complex Litigation for Successful Outcomes” at the Benchmark Litigation Women in Litigation Forum in New York City on September 17th. The panel addressed risk assessment, cost management strategies, alternative fee arrangements, mediation and arbitration as alternatives to litigation, and communicating with in-house counsel and stakeholders.
See event here.

On September 12, 2019, Reid Collins filed suit in the U.S. District Court for the Southern District of New York against former officers and directors of Aegean Marine Petroleum Network, Inc. (“Aegean”) on behalf of the Aegean Litigation Trust. The suit alleges breach of fiduciary claims against Aegean’s former officers and directors arising out of the gross negligence and bad faith of those officers and directors in allowing Aegean’s former CEO Dimitris Melisanidis to plunder more than $300 million from Aegean, ultimately leading to Aegean’s financial destruction.
Read complaint here.

On August 26, 2019, Angela Somers spoke at the American Society of Appraisers, Joint ASA 2019 Advanced Business Valuation and International Appraisers Conference in New York City. The Conference presented the views of thought leaders, academics and service providers on new trends/innovation and best practices. Ms. Somers’ session, entitled “Valuation in Litigation: Destruction of the Company Damages” addressed issues involved in retrospective valuations. The presentation addressed equipment valuation as well as business valuations used to measure damages caused to a destroyed business.

On September 11, 2019, Reid Collins filed an amicus brief for the National Association of Bankruptcy Trustees in an appeal pending before the Texas Supreme Court related to the $7 billion Ponzi scheme perpetrated by Allen Stanford and Stanford International Bank. The Court is addressing a certified question—at the request of the Fifth Circuit—regarding the “good faith” defense under the Texas Uniform Fraudulent Transfer Act. Specifically, the Court is considering whether a transferee who is aware of suspicious circumstances, but does nothing to investigate those suspicions, may later avail itself of a “good faith” defense by arguing that an investigation would have been futile. The answer to this question will have a significant effect on fraudulent transfer litigation, not only in Texas, but also in other jurisdictions around the country.
See brief here.

Eric Madden recently spoke at the Southwest Bankruptcy Conference hosted by the American Bankruptcy Institute. He spoke as part of a panel presentation entitled “Commercial Workshop on Evidence,” which addressed best practices and evidentiary issues regarding the testimony of expert witnesses.

Reid Collins is pleased to announce that Benchmark Litigation has named Joshua Bruckerhoff, Brandon Lewis, and Nate Palmer to its annual 40 & Under Hot List. Compiled by the only publication dedicated exclusively to identifying elite litigation attorneys, the list recognizes the most notable up-and-coming trial lawyers in the United States.
See story here.

Bill Reid, Lisa Tsai, and Eric Madden were selected again this year for inclusion in The Best Lawyers in America® for 2020. Selection to this group is based on an exhaustive peer-review evaluation. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area.
See profile here.

On August 7, 2019, Reid Collins defeated a second attempt by Pearl Energy and AVAD to dismiss a $100 million case involving claims for fraud and theft of trade secrets. The suit asserts that despite entering into a non-disclosure agreement, the defendants misused the plaintiffs’ trade secrets and confidential information in order to short-circuit the due-diligence and bid process for an oil and gas property, ultimately purchasing it out from under the plaintiffs.
In August 2018, Reid Collins successfully defeated a motion to dismiss the claims under the TCPA -Texas’s Anti-SLAPP legislation – brought by defendants Billy Quinn, Pearl Energy Investment Management, LLC., Pearl Energy Investments, L.P., and Pearl’s portfolio company AVAD Energy Partners, LLC. The defendants then appealed the trial court’s ruling to the Dallas Court of Appeals. The Court of Appeals affirmed the trial court’s decision, holding that the TCPA does not apply to plaintiffs’ claims. Having now survived two attempts at dismissal, all of the claims will now proceed to discovery.

On August 7, 2019, Reid Collins defeated a demurrer filed by Levine Leichtman Capital Partners and the former directors and officers of Pacific World Corporation that sought to avoid over $100 million in liability for defendants’ breaches of fiduciary duty. The claims arose in connection with the defendants’ orchestration of an over $200 million dividend recap transaction that lined their own pockets at Pacific World’s expense. In overruling the demurrer, the Court rejected defendants’ arguments that the claims were untimely and that the company lacked standing to pursue its claims under the Bangor Punta doctrine, which denies stockholders the right to seek damages from former directors for corporate mismanagement. Discovery in the case is ongoing.

On July 19, 2019, the United States Bankruptcy Court for the Northern District of California recognized the White Oak Funds’ liquidation proceedings in the Cayman Islands as foreign main proceedings. The White Oak Funds are Cayman Islands exempted limited liability entities. In addition to recognition, the Court granted several forms of additional relief to assist the White Oak Funds’ Joint Official Liquidators.

Reid Collins is honored to have won the bankruptcy category of the National Law Journal’s 2019 Elite Trial Lawyers awards. This accolade recognizes U.S. based law firms that have performed cutting edge work on behalf of plaintiffs. It follows the National Law Journal’s recognition of William T. Reid, IV – one of the firm’s founding partners – as a Plaintiffs’ Lawyers Trailblazer earlier this year.
This latest honor comes as Reid Collins celebrates its 10th anniversary and marks one of the most successful years in its history.
See story here.

In a key ruling on July 16th, the U.S. District Court for the Central District of California denied motions to dismiss core qui tam claims against Providence Health and J.A. Thomas brought by Reid Collins client Integra Med Analytics LLC alleging that the hospital group and its clinical documentation improvement consultant caused over $188 million in false claims to be submitted to Medicare in violation of the False Claims Act through systematic upcoding of encephalopathy, respiratory failure, and severe malnutrition.
See Decision here.

Reid Collins is thrilled to have been named a finalist in the bankruptcy category for the National Law Journal’s “2019 Elite Trial Lawyers.” Editors and reporters from ALM and The National Law Journal reviewed more than 300 submissions across more than 20 categories to arrive at this list. This would not be possible without our incredible team’s dedication and success in cutting edge work on behalf of plaintiffs.
See story here.

Reid Collins has won a major victory in the Delaware Court of Chancery ordering dissolution of Inspirion Delivery Sciences, LLC (“IDS”), a company that developed a promising technology to make opioid painkilling medications more difficult to abuse. RCT brought the lawsuit on behalf of Founder Ray DiFalco to dissolve the company in September 2018 and proceeded to trial within three months.
In his May 17, 2019, decision, Chancellor Andre G. Bouchard resolved all four claims tried in a December 2018 bench trial in favor of RCT’s client and ordered the extraordinary remedy of dissolution. RCT’s clients, Ray DiFalco and Manish Shah, developed IDS’ promising technology, which makes opioid painkilling medications more difficult to abuse, and formed a company with the defendant. IDS holds the patents to the abuse-deterrent technology. The founders of IDS came to “loggerheads over issues of fundamental importance” to the Company, Chancellor Bouchard wrote. RCT’s client sought dissolution of IDS to free the intellectual property from the dysfunction and discord at IDS. Chancellor Bouchard ruled a liquidating trustee should be appointed for IDS within five days. RCT and its clients are hopeful that this ruling will facilitate development of new products using the technology, thereby helping to solve the opioid crisis currently plaguing this country. “This is an important victory for our client that will hopefully free up the technology so desperately needed to help those affected by the opioid epidemic,” said William T. Reid, IV lead counsel and co-founder of Reid Collins & Tsai. “We’re grateful that this court took the rare step of ordering a dissolution of the dysfunctional company.”
Read the decision here.

On May 17, 2019, RCT filed suit in the Delaware Court of Chancery against entities and individuals affiliated with Chicago-based private equity firm Sterling Partners on behalf of the Adeptus Litigation Trust. The suit alleges breach of fiduciary duty of loyalty that Sterling Partners owed as a controlling stockholder, unjust enrichment, and aiding and abetting breaches of fiduciary duty. The Adeptus Litigation Trust is the successor-in-interest to Adeptus Health, Inc. (“Adeptus”), a publicly traded operator of free-standing emergency rooms that filed for bankruptcy in April 2017. The suit alleges that, not long before Adeptus’s bankruptcy, Sterling Partners obtained $566.5 million in connection with offerings of Adeptus stock and Adeptus’s purchase of limited liability company units from Sterling in self-dealing transactions, constituting a windfall. Certain former Adeptus officers and directors are also named as defendants in the suit.
Read complaint here.

On May 17, 2019, RCT filed suit in U.S. District Court for the Eastern District of Texas against former officers of First Choice ER, LLC (“FCER”) on behalf of the Adeptus Litigation Trust. The suit alleges breach of fiduciary duty claims against former officers of FCER. The claims arise out of the officers’ alleged gross negligence and bad faith in causing FCER to advance over $100 million to backstop losses of joint venture entities, despite the lack of any obligation to cover those losses.
Read complaint here.

On May 3, 2019, RCT filed a response brief in the Texas Supreme Court on behalf of Claymore Holdings to defend its $380 million fraud and breach of contract judgment against Credit Suisse. To this point, Credit Suisse has lost this dispute three times—before a jury that found Credit Suisse fraudulently induced Claymore, before a trial court that found Credit Suisse materially breached its contractual obligations, and before the Texas Court of Appeals that affirmed the judgment in its entirety. Credit Suisse’s petition represents a last-ditch effort to avoid paying Claymore and its defrauded investors who have been waiting for redress for nearly 12 years. But as Claymore argues in its response, the unanimous decision by the Texas Court of Appeals, which applied longstanding New York substantive law, and enforced the plain and unambiguous terms of the underlying agreement, does not warrant review by the Texas Supreme Court.

RCT is thrilled to announce that William T. Reid, IV, a founding partner of the firm, has been recognized by the National Law Journal in its Plaintiffs’ Lawyers Trailblazers series. This series spotlights “a handful of individuals . . . that are truly agents of change” on the plaintiffs’ side of the docket.
See story here.

The BosGen Liquidating Trustee engaged RCT to pursue over $1 billion in fraudulent transfer claims that have been pending for over seven years in the Bankruptcy Court for the Southern District of New York. The claims were presumed dead as a result of the application of the section 546(e) safe harbor. Using its experience from Merit Management and other fraudulent transfer cases, RCT thoroughly analyzed the transactions in light of recent developments in the law and repleaded the claims to avoid the section 546(e) defense. On Thursday April 25, 2019, Judge Wiles of the SDNY granted RCT’s motion for leave to amend the complaint, which now sets up a motion to dismiss battle. With prejudgment interest the value of this case now exceeds $2 billion. RCT is, once again, on the cutting edge of the law concerning the pursuit of complicated fraudulent transfer claims.
See Third Amended Complaint here.

RCT is pleased to announce that Eric Madden, a partner in the firm’s Dallas office, has been elected to the American Bankruptcy Institute’s board of directors, where he will serve a three-year term. Madden is a long-standing member of the ABI, and this new role is the culmination of those many years of service. His election was announced in April 2019 at the ABI’s annual meeting in Washington, DC. The ABI is the nation’s largest association of bankruptcy professionals, with over 12,000 members.
See story here.

R. Adam Swick, Partner at Reid Collins & Tsai LLP, recently spoke as a panelist at the GRR Live Conference on March 12, 2019.
Adam’s panel discussed recent developments on COMI. The session included interviews with lawyers and other professionals who worked on cases involving COMI determinations about how decisions were taken, drawing out the dynamics and pressure at work behind the scenes.
For more information click here.

RCT recently tried a case to dissolve IDS to the Delaware Chancery Court. IDS holds a patent to technology that gives abuse deterrent characteristics to common opioid painkillers. The FDA has approved two such products thus far, including the only immediate release abuse deterrent opioid product approved by the FDA to date. Unfortunately, deadlock and governance dysfunction within IDS have crippled the company and no progress has been made on new product development. By dissolving IDS, RCT’s client, the innovator of the technology, hopes to get the promising technology back on track to help solve the opioid crisis and maximize value for IDS’s investors.

On December 21, 2018, RCT filed suit in the New York Supreme Court against Reed Smith LLP on behalf of the Cayman Islands liquidators of the Bear Stearns Funds. The suit alleges legal malpractice, breach of fiduciary duty, and breach of contract claims seeking over $500 million of damages. The claims arise out of, inter alia, Reed Smith’s failure to meet the statute of limitations in a lawsuit it filed on behalf of the liquidators against the credit-rating agencies.
See complaint here.

On January 25, 2019, RCT filed suit in Delaware Chancery Court on behalf of Kainos Capital co-founder Sarah A. Bradley against Andrew Rosen, Robert Sperry, David Knickel, and Kainos Capital LP. The suit alleges, inter alia, fraud and breach of fiduciary duty claims seeking millions of dollars of damages and the return of Ms. Bradley’s 25% interest in the fund manager.
See complaint and exhibits here.
See story here.

On January 17, 2019, RCT filed a fraudulent transfer action in the U.S. District Court for the Southern District of Florida on behalf of the liquidating trustee for the Limited Stores Company (d/b/a “The Limited”), which operated hundreds of mall-based women’s apparel stores throughout the country. In this action, the trustee seeks to recover $42 million in highly leveraged dividends paid to several affiliates of Sun Capital, a large Florida-based private equity firm.
See complaint here.

RCT has been named as one of five finalists for 2019 Plaintiff Firm of the Year by Benchmark Litigation, a leading guide to litigation firms and attorneys in the United States and Canada. The winner will be announced at a ceremony in New York on February 28, 2019.
See story here.

Founding partner William T. Reid, IV has been named as one of five finalists for 2019 Plaintiff Attorney of the Year by Benchmark Litigation, a leading guide to litigation firms and attorneys in the United States and Canada. The winner will be announced at a ceremony in New York on February 28, 2019.
See story here.

On November 27, 2018, Eric Madden was featured as a guest on “Eye on Bankruptcy,” a monthly online show analyzing the latest judicial opinions. He appeared alongside Professor Charles Tabb (University of Illinois College of Law) and Judge Michelle Harner (Bankr. D. Md.). They discussed various judicial opinions, including recent opinions addressing the Ponzi presumption and the mere conduit defense in fraudulent transfer litigation.
See video here.

On November 15, 2018, RCT defeated the motions to dismiss filed by defendants Stephen Evans-Freke, John Mayo, and their Celtic group of entities. The motions sought to avoid liability for the fraud and breach of contract claims asserted by plaintiffs, a group of funds managed by Highland Capital Management. The court rejected both the personal jurisdiction and merits-based defenses asserted by defendants. Plaintiffs’ suit asserts that Evans-Freke, Mayo, and their companies breached their obligations to pay principal and interest due on notes purchased by plaintiffs and issued by one of defendants’ shell companies. Plaintiffs also assert that Evans-Freke and Mayo used the Celtic corporate structure to bleed out the assets of the issuing entity and the related guarantors in an attempt to ensure plaintiffs could not recover the payment due on the notes. Plaintiffs seek to recover over $500 million owed on the notes. The case will now proceed into discovery.

On November 15, 2018, Eric Madden spoke at the 37th Annual Jay L. Westbrook Bankruptcy Conference, which was sponsored by the University of Texas School of Law. His presentation was entitled “In the Hot Seat: Use of In-House Counsel as Witnesses.”

RCT was recently profiled in a special article by LawDragon, a legal media company that publishes a well-known list of the nation’s leading lawyers. In the article, RCT was described as “the special forces unit of high-stakes, complex commercial litigation.”
See story here.

RCT is pleased to announce that Marc Dworsky, a nationally renowned attorney and former Munger Tolles partner, has joined the firm.
See story here.

On July 19, 2018, RCT filed a shareholder derivative action in New York state court on behalf of Renren, Inc., against Joseph Chen, its CEO, Chairman, and largest shareholder, and David Chao, one of its directors. The complaint asserts claims for, among other things, breach of fiduciary duty in connection with Renren’s spin-off of its most valuable assets to a private company owned and controlled by Chen, Chao, and other insiders for far less than fair market value. The complaint seeks to recover more than $300 million in damages.

William T. Reid IV has been named both a “Top 100 Trial Lawyer in America” and a “Litigation Star” in the 2019 edition of Benchmark Litigation. In addition, Eric D. Madden has been named as “Future Litigation Star” by Benchmark Litigation. A leading guide to litigation firms and attorneys in the United States and Canada, Benchmark Litigation determines rankings through detailed peer reviews and case examinations.
See story here

RCT is pleased to announce that it has been named a “Top 10 Plaintiffs Firm in America” and a “Top 20 Trial Firm in America” in the 2019 edition of Benchmark Litigation. A leading guide to litigation firms and attorneys in the United States and Canada, Benchmark Litigation determines rankings through detailed peer reviews and case examinations.
See announcement here

On September 26, 2018, the U.S. District Court for the Northern District of Illinois ruled in favor of RCT’s client, the World Marketing Liquidating Trust, by denying a motion to dismiss malpractice claims against the debtor’s former counsel related to its failure to advise the debtor to provide notice under the WARN Act before terminating over 300 employees located in several states. The court’s opinion addresses important issues related to the Barton Doctrine, as well as claim and issue preclusion. See Newman v. Crane, Heyman, Simon, Welch & Clar, — F. Supp. 3d —, 2018 WL 4616349 (N.D. Ill. Sept. 26, 2018).
See story here

On July 11, 2018, RCT was featured in The New York Times and Reuters stories entitled “Credit Suisse Nears $360 Million Deadline in Fraud Suit Built on a Hunch.” The stories focus on RCT’s successful and innovative representation of Dallas-based hedge fund Highland Capital Management, who aggressively pursued legal action against Credit Suisse Group AG, which arranged the financing and appraisals for the high-end property development Lake Las Vegas that collapsed during the 2008 financial crisis.
See story here.

On August 10, 2018, RCT defeated, in their entirety, the motions to dismiss filed pursuant to the Texas Citizens Participation Act by Pearl Energy Investment Management, LLC, Pearl Energy Investments, L.P., Pearl’s principal Billy Quinn, and Pearl’s investment partner AVAD Energy Partners, LLC. Plaintiffs’ claims that the Pearl entities, Billy Quinn, and AVAD defrauded them, misused their confidential information, and breached a NDA all to steal a deal for the purchase of an oil and gas property will now proceed into discovery. Plaintiffs seek to recover the damages caused by Pearl’s, Quinn’s, and AVAD’s conduct, which are in excess of $100 million.

RCT is pleased to announce that Benchmark Litigation has named Joshua Bruckerhoff, Brandon Lewis, Nate Palmer, and Greg Schwegmann to its annual 40 & Under Hot List. Compiled by the only publication dedicated exclusively to identifying elite litigation attorneys, the list recognizes the most notable up-and-coming trial lawyers in the United States.
See story here

On May 18, 2018, RCT filed an amended complaint in the Supreme Court of New York on behalf of affiliates of Highland Capital Management, L.P. against Stephen Evans-Freke, John Mayo, and a group of entities they created. The complaint asserts claims for, among other things, breach of contract for defaulting on notes issued by one of the Celtic entities and guaranteed by a number of the other Celtic entities. The complaint alleges that Stephen Evans-Freke and John Mayo used their web of Celtic entities to reduce the assets available to satisfy the notes, which were due in 2012 and remain unpaid, and that they are liable for the debt owed by their entities as alter egos. The suit seeks to recover both the principal and interest owed on the notes, totaling over $500 million.

On June 6, 2018, the Court of Appeals for the Ninth Circuit reversed the District Court’s dismissal of RCT client ChinaCast Education Corporation’s claims against two individuals that directly benefited from the unlawful sale over 2.4 million shares of stock stolen from the company. The Ninth Circuit remanded the case back to the District Court for further proceedings allowing ChinaCast to continue to pursue its claims for over $17 million in damages against Defendants.
See decision here.

On June 6, 2018 Bill Reid and Craig Boneau argued to Chief Justice Ingram of the High Court of the Marshall Islands that their clients’ claims should survive defendants’ motion to dismiss. The claims assert that defendants, including George Economou and a group of his companies, received hundreds of millions of dollars in fraudulent conveyances while Ocean Rig UDW was a Marshall Islands company. The Court has asked for additional briefing and set the matter for further argument on August 29, 2017.
Listen to argument: Part 1 | Part 2

Michael Yoder has joined RCT as a partner assigned to the Dallas office. Michael, who earned his J.D., cum laude, from Harvard Law School in 2006, has extensive experience representing bankruptcy trustees, litigation trustees, and similar clients, in pursuing claims against directors and officers, law firms, banks, auditors, and other third parties, for fraudulent transfers, professional malpractice, breach of fiduciary duty, and other business torts.

RCT is pleased to announce that it has been ranked as a top litigation firm in the 2018 edition of Chambers USA, a well-known guide to the leading lawyers and law firms in the United States. In addition, Bill Reid has been ranked in the 2018 guide as a leading lawyer in the field of general commercial litigation. Rankings are based on interviews with lawyers and clients, as well as extensive independent research.

On March 27, 2018, the U.S. District Court for the District of New Hampshire ruled in favor of RCT’s client, the GTAT Litigation Trust, by denying a motion to dismiss its $1 billion lawsuit against certain officers of GT Advanced Technologies Inc., a former publicly traded company, related to its failed contract with Apple. That failed contract resulted not only in the company’s bankruptcy, but also a series of criminal and regulatory investigations regarding its sudden demise.
See story here

On March 2, 2018, RCT filed a lawsuit in Dallas County on behalf of Gravitas Resources Corp. and Alan Pinto against Pearl Energy Investment Management, LLC, Pearl Energy Investments, L.P., Pearl’s principal William Quinn, Pearl’s investment partner AVAD Energy Partners, LLC, and Anadarko Petroleum Corp. for the misuse of Gravitas’s trade secrets and confidential information related to an oil and gas property. RCT alleges that, despite an NDA governing the shared information, Pearl and its partner AVAD used Gravitas’s information to short-circuit the due-diligence and bid process and usurped Gravitas’s deal with Anadarko to purchase the property, all with Anadarko’s full knowledge. The suit seeks to recover a minimum of $100 million in losses incurred by plaintiffs as a result of defendants’ conduct.

On February 27, 2018, the United States Supreme Court unanimously affirmed the Seventh Circuit’s holding in Merit Management Group v. FTI Consulting, Inc., restricting the scope of the “safe harbor” defense under section 546(e) of the Bankruptcy Code. This decision preserved RCT’s victory in the Seventh Circuit, and overturned long-standing and expansive interpretations of the defense by five circuit courts.
See decision here .

On February 21, 2018, the Texas Court of Appeals affirmed a $287.5 million judgment in favor of RCT’s client, an affiliate of Highland Capital Management, LP, against Credit Suisse AG and Credit Suisse Securities (USA), LLC. The judgment relates to claims against Credit Suisse for fraud and breach of contract in connection with a grossly inflated appraisal for a $540 million loan to the developers of the Lake Las Vegas resort. The judgment is subject to post-judgment interest, which has already accrued to nearly $64 million.
See story here.

Once again, William T. Reid IV and Lisa Tsai were named to the Lawdragon top 500 lawyers list.
See story here

On November 16, 2017, the U.S. Bankruptcy Court for the Northern District of Illinois approved a global settlement between Central Grocers, Inc., the Official Committee of Unsecured Creditors, and a group of six lenders, including PNC Bank, Bank of America, and U.S. Bank. RCT represented the Committee in pursuing fraudulent transfer claims against the lenders related to certain pre-petition liens obtained in the months leading up to bankruptcy. RCT secured a settlement of those claims in exchange for a cash payment and other consideration valued at more than $23.6 million.
See story here

On December 19, 2017, after a hard-fought, seven-day trial, RCT won an acquittal on all counts in a federal bribery case against Olga Hernandez, a former San Antonio ISD trustee. After learning the underlying facts of this case, RCT agreed to represent Ms. Hernandez on a pro bono basis. RCT’s trial team included Bill Reid and Brandon Lewis. This was the first criminal defense case that Mr. Reid, a former federal prosecutor, has undertaken since leaving the U.S. Attorney’s Office more than 17 years ago.
See story here | here | here
See Bill’s closing argument here.

On November 16, 2017, RCT argued to the SDNY Bankruptcy Court that Ocean Rig’s attempt to use Section 1521 of the Bankruptcy Code to obtain an injunction preventing Highland Capital Management from pursuing $74 million in fraudulent transfer claims in the Republic of the Marshall Islands should fail. Ocean Rig’s motion implicates a novel application of Chapter 15 and RCT’s response challenges Ocean Rig’s indirect attack on RMI jurisdiction as an improper use of Chapter 15. The Court has not yet issued its ruling.
See briefing here

On November 6, 2017, the United States Supreme Court heard argument in Merit Management v. FTI Consulting, Inc., to resolve a circuit split about whether section 546(e) of the Bankruptcy Code bars a trustee from avoiding securities-related transfers that merely pass through a bank, but where neither the debtor nor the transferee is an entity protected by the statute. Five circuit courts have held that it does. RCT, however, convinced the Seventh Circuit to reject the opinions of those courts, thereby creating a circuit split to be resolved by the Supreme Court.
See transcript here | analysis

On October 18, 2017, the Dallas Court of Appeals heard oral argument in Claymore Holdings, LLC v. Credit Suisse, AG, et al. Arguing on behalf of Claymore, RCT Partner Bill Reid asked the appellate court to uphold the fraud and breach of contract findings below and affirm the $287.5 million trial judgment against Credit Suisse.
A recording of the argument can be found here.

On August 31, 2017, RCT filed a lawsuit in the Marshall Islands on behalf of affiliates of Highland Capital Management, L.P. against George Economou, his nephew, Antonios Kandylidis, and a number of entities controlled by Economou – DryShips Inc., Ocean Rig Investments, Inc., TMS Offshore Services Ltd., Sifnos Shareholders, Inc., and Agon Shipping Inc. As alleged in the complaint, Economou and the other defendants received over a $100 million in fraudulent transfers from Ocean Rig UDW, Inc. The suit seeks to claw back $74 million of those transfers.

Eric Madden will speak at the 37th Annual Midwestern Bankruptcy Conference, which is sponsored by the American Bankruptcy Institute, on October 27, 2017. He will speak as part of a panel presentation, along with a senior bankruptcy judge, entitled “Litigators Behaving Badly: Ethics and Trial Tactics.”

See story here

On April 19, 2017, RCT filed a $1 billion lawsuit against the officers of GT Advanced Technologies Inc., a former publicly traded company, related to its failed contract with Apple, which resulted in the company’s bankruptcy and a series of criminal and regulatory investigations regarding the company’s sudden demise.
See story here

On April 27, 2017, the U.S. Bankruptcy Court for the District of Delaware approved a global settlement among Fresh & Easy, LLC, its former insiders, and the Official Committee of Unsecured Creditors. RCT represented the Committee in pursuing claims against the insiders—including billionaire supermarket magnate Ronald Burkle—for breach of fiduciary duty and fraudulent transfer of certain assets. After obtaining a temporary restraining order preventing the insiders from further disposing of the assets, RCT secured a settlement of those claims in exchange for a $21.5 million cash payment and the release of $104 million of insider claims against the estate, thereby doubling the projected distributions to unsecured creditors in the case.
See story here

Reid Collins Tsai has filed a class action lawsuit alleging an over $100 million fraud against Advocare International, LP and its high-level promotors. Advocare is a company that sells shakes, nutritional supplements, and powdered energy drinks. The lawsuit alleges that Advocare operates an illegal pyramid scheme by focusing not on selling products to retail customers, but on endlessly recruiting participants who purchase Advocare products at wholesale prices on an ongoing basis in exchange for the right to receive compensation for recruiting other participants to do the same. According to the lawsuit, Advocare entices people to participate in the scheme with the prospect of large financial rewards when, in fact, hardly any participants make money, the vast majority lose money, and the vast majority of money paid to participants comes from other participants, not retail customers. The claims made in the complaint, brought on behalf of individuals who lost money participating in the scheme, allege that Advocare’s operation as a pyramid scheme violates both state and federal law, including the Racketeer Influenced & Corrupt Organizations (RICO) Act.
The lawsuit (Case No. 3:17-cv-00691-B) was filed in the United States District Court for the Northern District of Texas by RCT partners Adam Swick and Ben King. If you have lost money selling Advocare products and would like more information, please fill out the information below and someone will contact you.
See story here

Reid Collins & Tsai, a small trial firm based in Austin, has paid merit bonuses to associates and junior partners ranging up to $229,000 in 2016, exceeding both the big-firm market rate for year-end bonuses set by Cravath, Swaine & Moore and the higher bonuses paid by another Texas litigation firm, Susman Godfrey.
See story here

The National Law Journal has selected RCT as 2016 Elite Trial Lawyers in the category of financial institutions litigation. Each year, the NLJ recognizes law firms that achieved high-dollar recoveries for their clients and performed the most creative and significant plaintiff’s work. RCT is proud to be honored among 35 law firms in the country across nine separate categories of plaintiff’s work. To qualify, each law firm was required to have at least one significant win in the prior year and possess an impressive track record of wins within the past three to five years. A “significant win” means prevailing in a bench or jury trial or in a major public settlement where the stakes were high.
See story here

The ABI Journal recently published the article, Circuit Split Deepens on Scope of § 546(e) by Recognizing Limits on the Application of the Safe Harbor, written by RCT partners Josh Bruckerhoff and Greg Schwegmann. The article describes RCT’s recent victory before the Seventh Circuit Court of Appeals in which the Seventh Circuit held that the § 546(e) safe harbor only applies where the debtor or the transferee-defendant is one of protected entities listed in the statute.
See story here

On August 29, 2016, RCT won a $212 million judgment on behalf of four offshore investment funds and a Massachusetts pension fund against Alphonse Fletcher Jr. and Fletcher Asset Management Co. in New York State Supreme Court. RCT’s clients asserted contract and various tort claims against Mr. Fletcher and his wholly owned management company for their mismanagement of the offshore funds.

The Seventh Circuit overturned the dismissal of a $16.5 million fraudulent-transfer action under section 546(e) of the Bankruptcy Code in FTI Consulting v. Merit Management. The Seventh Circuit rejected the opinions of five other Circuit Courts of Appeal to hold that the section 546(e) safe harbor only applies where the debtor or the transferee-defendant is one of protected entities listed in the statute. This opinion opens additional avenues in the Seventh Circuit for trustees to seek recoveries on behalf of creditors. RCT represents FTI, in its capacity as a litigation trustee, in the action.
See story here

Bill Reid and Lisa Tsai were selected to the 2016 list of LawDragon 500 Leading Lawyers in America. Each year, the LawDragon 500 recognizes the most elite lawyers in the profession who represent “the year’s biggest dealmakers, trial lawyers, and public interest lawyers.”
See story here