The Master Trustee of an Income Unit Investment Trust filed a lawsuit in Delaware Chancery Court against a New York entrepreneur and several of the entrepreneur's LLCs. The lawsuit alleged that the entrepreneur fraudulently diverted the unit trust holders’ investments to LLCs the entrepreneur controlled. Our firm represented the Master Trustee in the lawsuit.
Our firm was able to obtain expedited discovery and within one month of filing the action. With partner Terri Combs serving as lead counsel, our client successfully obtained a preliminary injunction prohibiting the dissipation of close to $70 million in cash through a planned merger/going-private transaction in the U.K. that would have effectively cut off their interests. The parties further litigated jurisdictional and arbitration issues in a separate action filed by the entrepreneur's entities in New York Supreme Court.
