Years of tough litigation leads to multi-million bankruptcy settlement
Debtor: Fundamental Long Term Care, Inc.
Amount: $23.7 million
Description: Judgment creditors represented by Wilkes & McHugh initiated involuntary Chapter 7 proceedings against Debtor Fundamental Long Term Care, Inc. to recover state court judgments following jury verdicts in excess of $2 billion. A decade of protracted litigation revealed a bust-out scheme involving a dozen real-parties-in-interest that devised a scheme to ditch a liability-ridden shell company by selling it to the Debtor using an elderly strawman. After a two-week trial, the parties reached a multi-million dollar compromise.