Congratulations to the LPHS trial team led by Jason Dennis and Kent Krabill for securing a summary judgment in favor of six officers and directors of Nobilis Health Corporation, a Houston-based chain of ambulatory and surgical health clinics that filed for Chapter 7 liquidation in 2019. Nobilis was a publicly-traded entity that through its affiliates owned and operated more than 30 surgical facilities and clinics in Texas and Arizona.

A federal bankruptcy court in Delaware dismissed the claims brought by the court-appointed trustee for breach of fiduciary duty and equitable subordination against each of the defendants. The trustee was seeking damages of $285 million against the group for allegedly providing inaccurate financial statements related to accounts receivable. The court had previously granted a motion to dismiss six other defendants represented by the firm.

“The reality is that the judge saw the case exactly as we did. We are extremely happy for each of our clients because they patiently waited for their day to show these claims to be false and were ultimately vindicated,” says Mr. Krabill.

“This opinion affirms that our clients acted within their business judgment and did not cause the ultimate failure of the business,” says Mr. Dennis.

Other members of the team included Pat Disbennett, who has since joined the Securities and Exchange Commission, Leo Park, David Akere, and Andy Kim.