BartkoZankel staffs cases leanly, combining expertise with business insight and superior trial skills. This combination is an enormous asset for our clients in actions involving financial institutions and the bankruptcy courts. In appropriate cases, the firm will also structure creative and innovative fee arrangements that take into account the limited assets of the client, trustee, or committee as well as the potential recovery. We have been approved as special litigation counsel by bankruptcy judges in various cases.
Click here to view how our Financial Institution Litigation group complements our Real Estate Litigation group.
We were instrumental in recovering in excess of $115 million for the Trustee in a Ponzi scheme case by successfully litigating against third party accounting firms, law firms, and a bank. We did so through our creation and approved use of a litigation committee system, which the court found to be unprecedented. As Judge Huff noted in her approval order:
Instead of the protracted litigation often associated with such complex cases, the settlement achieved by [BartkoZankel] in coordination with the SEC, the Receiver and the Trustee is unique in its coordination and unifying efficiency....It maximizes recovery for defrauded investors, establishes the foundation for future recovery, and settles the defendants' concerns. There is no similar model or approach in reported federal decisions. In fact, this case is exceptional among reported cases given the rapid resolution and the substantial amount ready for immediate distribution to investors.
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In another case involving the bankruptcy of the State's largest agricultural cooperative, we used creative techniques by suing a defendant class to recover for the Creditor's Committee, in addition to successfully mounting claims against directors and officers, their insurance carriers, and a major accounting firm. In a third significant case, we represented the Trustee in litigation arising out of the bankruptcy a hi-tech company that had merged with another company. We successfully sued the firm that acted as the investment adviser in the merger transaction, and after a lengthy jury trial, we recovered close to $35 million for the Trustee. We have also been engaged by court appointed receivers in a number of different matters to assist in maximizing assets.
All significant bankruptcies generate an array of challenges and opportunities among multiple constituencies. BartkoZankel has the experience and legal talent to spot the potential for successful litigation recoveries, navigate the inevitable impediments to successful outcomes and maximize the returns to our clients. We have a proven track record of generating results.
Representative Engagements:
- In re Grafton Partners, L.P., U.S. Bankruptcy Court, S.D. Cal., Case No. 01-10606-H7 Represented a class of investors and related entities in multiple cases arising out of a Ponzi scheme which resulted in excess of $300 million in investor losses. As part of the litigation, we filed lawsuits against a Big 4 accounting firm, a major bank, an international law firm and other professional firms. We obtained recoveries totaling over $115 million on behalf of our clients. We created and put in place a strategy and vehicle for recovery which the federal court recognized to be unique in its efficiency and speed in obtaining recompense for the victimized investors.
- In re Tri Valley Growers, U.S. Bankruptcy Court, N.D. Cal. Case No. 00-44089-J-11 Prosecuted on behalf of the unsecured creditors committee in the Tri Valley Growers bankruptcy litigation several pieces of major litigation which returned over $34.5 million to the Estate. The litigation included a class action against the members of TVG, one of the largest agricultural cooperatives in the country; and an action first against certain former Directors & Officers of TVG and a subsequent action against the Directors & Officers insurer which settled for $17.5 million.
- In re Daisy Systems Corporation, U.S. District Court, N.D. Cal., Case No. C-92-1845 DLJ Pursued various third party claims on behalf of the bankruptcy trustee for Daisy Systems. As part of this representation, we obtained a $108 million jury verdict against a major international investment firm, reduced by the judge to $36 million, and successfully settled a professional malpractice claim against a national law firm.
- In re Mayan Networks, U.S. Bankruptcy Court, N.D. Cal., Case No. 01-55393 ASW Investigated potential claims and successfully represented the bankruptcy estate of Mayan Networks in litigation with its investment banker and financial services company. The settlement resulted in a 37% distribution to the unsecured creditors.
