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Clark Hill’s Michael Croghan Secures Dismissal in Breach of Fiduciary Duty Litigation

May 23, 2019

Clark Hill attorney Michael Croghan recently secured dismissal of a breach of fiduciary duty litigation in the U.S. Bankruptcy Court for the District of Delaware.

The case arose out of a billion-dollar construction project in the Minnesota iron processing industry. Clark Hill represents the former CFO. After the project went into bankruptcy, the Trustee for the Unsecured Creditors Litigation Trust initiated an adversary proceeding against the former CEO and CFO of the project alleging breaches of fiduciary duty, aiding and abetting breach of fiduciary, aiding and abetting fraudulent conveyances, and disallowance of their bankruptcy claims.

Clark Hill moved to dismiss for failure to state a claim. United States Bankruptcy Judge Brendan Shannon agreed that the Trustee failed to state a claim, granting dismissal of the action with leave to replead. “The Court got this right. The complaint failed to meet minimum pleading standards. We look forward to continuing to vigorously defend our client in this matter,” Croghan said.

Clark Hill attorneys Michael Croghan and Scott Schreiber represent the client in this matter. Croghan argued the motion.

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