LPHS has extensive experience representing bankruptcy trustees, receivers, liquidating trustees and creditor committees in the pursuit of bankruptcy-related litigation. We served as special counsel in bankruptcies and receiverships. Our willingness to enter contingent fee agreements and other results-based compensation has proven attractive to bankruptcy estates seeking to maximize recovery while minimizing their upfront expenses and risks.
We prosecuted claims for fraud and breach of fiduciary duty against the former directors, officers and managers of many of these bankrupt and/or insolvent companies. Our firm also prosecutes related business tort cases involving financial fraud, professional malpractice and breach of fiduciary duty. In the professional liability context, we brought claims against accountants, lawyers, bankers and corporate insiders.
We have extensive expertise handling fraudulent transfer and preference actions on behalf of trustees around the country.
- LPHS represented the liquidating trustee for a former defense contractor, Channel Technologies Group Inc., in asserting fraudulent transfer claims and director and officer claims in excess of $60 million.
- LPHS represented an investment firm in the Fifth Circuit appeal of whether issues related to an involuntary bankruptcy petition could be compelled to arbitration.
- LPHS represented the widow of Charles Wyly in the Fifth Circuit appeal of the Bankruptcy Court opinion finding the Wyly brothers liable for hundreds of millions of dollars in tax liabilities.
- LPHS represented the surviving officer of Opus West Inc. in pursuing claims against its direct and indirect parents and various former officers and directors. Opus West sought to recover more than $100 million, consisting of dividend payments made during the three years prior to filing for bankruptcy and benefits received by former officers and directors in related-party transactions. After obtaining a favorable summary judgment ruling on certain of its claims, LPHS negotiated a settlement pursuant to which defendants paid our client $45 million and withdrew claims valued at almost $50 million.
- We acted as lead counsel for Texas Rangers Baseball Partners in the state court litigation against Thomas O. Hicks and Ballpark Real Estate LP. The case involved claims for fraudulent transfers and breach of fiduciary duty against Mr. Hicks, as well as conspiracy and/or aiding and abetting claims against Ballpark Real Estate LP. LPHS procured a favorable settlement.
- LPHS represented the trustee for Ronco Inc. (started by Ron Popeil, famous for his infomercials) in a successful derivative action against its directors and officers.
- LPHS represented solar energy company SpectraWatt Inc. in a multimillion-dollar breach of contract case. SpectraWatt had filed for bankruptcy protection in the Southern District of New York. The liquidating trustee engaged LPHS to pursue the litigation claim on behalf of SpectraWatt. Shortly after LPHS’s engagement, LPHS procured a favorable confidential settlement for the benefit of the creditors.
- LPHS represented the regional accounting firm Cheshier & Fuller LLP in connection with claims brought by the trustee for Sunpoint Securities. The trustee alleged that C&F negligently performed audits of Sunpoint Securities’ financial statements because those audits failed to detect the CEO’s theft of $25 million of certain funds. LPHS tried the case to the Bankruptcy Court and demonstrated that other parties were responsible for 95% of the loss.