2009 William S. Kay, Liquidating Trustee v. Brian P. Carney, Brian Hotarek, Kenneth Jones, et al

In the United States District Court for the Northern District of Texas, Dallas Division, Judge Barbara M. G. Lynn presiding. The Firm represented individual officers and directors in defense of a lawsuit brought by a bankruptcy liquidating trustee seeking to recover damages in excess of $300 million. In 2005, a private equity fund bought two grocery companies and our individual clients proceeded to serve as officers and/or directors of one of those companies. In 2009, one of the companies filed for bankruptcy protection, and a liquidating trustee was appointed. The trustee filed this lawsuit against our clients challenging a series of corporate transactions and decisions undertaken by the company while our clients served as officers and/or directors, and asserted claims for breaches of fiduciary duty, fraudulent transfers, avoidable preferences, and illegal dividends. The case settled favorably while summary judgment motions were pending.