Clawback Suits Filed by 38 Studios Trustee
GoLocal News Team
Clawback Suits Filed by 38 Studios Trustee
According to Matt Chiappardi for Law360, the lawsuits are aimed at recovering what are known as alleged preferential payments made during the 90-day period before 38 Studios filed for bankruptcy in April 2012.
“The plaintiff is seeking to avoid all the transfers made by the debtor to the defendants during the preference period,” the lawsuits from Burtch state. “The debtors were insolvent at all times during the 90 days prior to the petition date.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTLaw360 reports that 38 Studios' estate appears to be seeking to claw back a total of $630,000, with firms including PricewaterhouseCoopers LLC, Dell Marketing LP and Oracle America Inc. identified, according to court records.
Burtch did not respond to request for comment.
Avoidance Actions Detailed
The avoidance actions seek to recover $81,000 from electronic sales tracking firm NPD Intelect LLC, $62,000 from Oracle America and $58,000 from Dell Marketing.
Also reported by Law360 is that Burtch settled several other preference actions with companies such as Coffee Express Ltd., W.B. Mason Co. Inc. and business advisory firm Sansiveri Kimball & Co. LLP, totalling $25,000 for the estate. U.S. Bankruptcy Judge Mary F. Walrath approved the settlements after no parties objected, according to court records.
When 38 Studios filed for Chapter 7 bankruptcy in 2012, it listed $21 million in assets against $150 million in debts.
38 Studios Legal Fees
Cohen & Gresser, New York, NY
Billing rates:
Partners: $650-$750/hour
Counsel: $550-$650/hour
Associates: $300-$595/hour
Paralegal: $100-$225/hour
Cohen & Gresser's Fees:
Total Fees (2013): $102,615.20
Shechtman Halperin Savage, Providence, RI
Billing rates:
Attorneys: $250/hour
Paralegals: $100/hour
Legal Assistants: $50/hour
Shechtman Halperin Savage's Fees
2012: $407,899.60
2013: $156,348.37
2014: $19,799.00
Total Fees: $584,046.97
Wistow & Barylick, Providence, RI
Billing rates:
Attorneys: $175/hour, $225/hour & $250/hour
Contingency Fee: The RI Commerce Corporation agreed to pay Wistow & Barylick 16 2/3% of the gross of any amount recovered from a lawsuit, compromise, settlement or otherwise. This is not stipulated with the other law firms.
Note: Wistow & Barylick will only be paid at these rates if the state terminates its contract with the firm.
Wistow & Barylick's Fees:
2012: $18.121.05
2013: $90,630.15
2014: $48,054.17
Total Fees: $156,805.37
Note: The above amounts paid to Wistow & Barylick cover the cost of out-of-pocket expenses such as filing fees, costs of depositions, obtaining records, charges for computer-assisted legal research, costs of expert consultants, and the costs of witnesses.
