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November 7, 2012
AP Services LLP, as Trustee of the CRC Litigation Trust v. Jerry Silva, et al.
United States District Court, Southern District of New York
This action, brought by the trustee of the CRC Litigation Trust, an entity created by the bankruptcy court to pursue claims on behalf of the bankrupt estate of Chem Rx Corporation, seeks to avoid and recover transfers, and for other relief, in connection with a 2007 leveraged buyout of CRC’s predecessor in interest. Storch Amini represented defendant Rosalie Silva, individually and in her capacity as Trustee of the Jody R. Silva Trust. The action is brought under Sections 554(b) and 550 of the Bankruptcy Code and the New York Debtor & Creditor Law.
Defendants’ jointly moved to dismiss the Second Amended Complaint on the grounds that the safe harbor established by section 546(e) of the Bankruptcy Code precludes all of the Trustee’s claims; that all of those claims are inadequately pleaded in any event; that the Trustee cannot premise its claims for breach of fiduciary duty on post-LBO actions taken by Jerry or Steven Silva on behalf of an entirely different entity; and that the Trustee lacks standing to pursue an aiding and abetting claim against Rosalie Silva. The Honorable Lewis A. Kaplan found in favor of Defendants, and their motion to dismiss was granted in all respects, dismissing all claims against them.
Our client was represented by Bijan Amini.download Decision