Quinn Emanuel Can’t Escape Insys Ch. 11 Suit Over Payments
October 29, 2021
Types : In the News
Quinn Emanuel Urquhart & Sullivan LLP can’t dodge a suit filed in Insys Therapeutics Inc.’s Ch. 11 case over $90,000 paid to the firm just before the bankruptcy filing, a Delaware bankruptcy judge has ruled, allowing a claim that the transactions may have been improper transfers to proceed.
Under the Bankruptcy Code, certain transfers made while the debtor was insolvent, within 90 days before a bankruptcy filing, that enable a creditor to receive more than it would receive if the case were a Chapter 7 can be avoided or recovered.
Judge Dorsey ruled that the liquidating trustee had “plausibly” alleged factors needed to establish a preferential-transfer claim, including that the transfer was made from “the debtor to a creditor on account of an antecedent debt” and that Quinn Emanuel was a creditor.
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