We obtained dismissal of all claims against our corporate director client in a multi-million dollar D&O liability case brought by the Chapter 7 bankruptcy trustee against all directors of a bankrupt corporation, as well as its affiliate entities.

We obtained dismissal of all claims against our corporate director client in a multi-million dollar D&O liability case brought by the Chapter 7 bankruptcy trustee against all directors of a bankrupt corporation, as well as its affiliate entities. Seeking to recover over $30 million, the trustee claimed that the director and officers defendants breached their fiduciary duties to the bankrupt corporation and its creditors by looting its coffers for the sole benefit of the affiliate entities, thus driving it into bankruptcy. All defendants filed motions to dismiss the trustee's complaint, but while the other defendants' motions were all denied, we were able to argue successfully that, under the Supreme Court's recent decision in Stern v. Marshall, the bankruptcy judge lacked the constitutional authority to enter a final ruling on the claims asserted against our client. The judge agreed, abstained from any decision on the claims against our client, and dismissed all such claims.