Case Study: In Re Lemington Home For The Aged

Law360, New York (October 12, 2011, 2:42 PM EDT) -- For creditors of a bankrupt company seeking to mitigate their losses through claims against the company’s directors and officers, the Third Circuit’s recent decision in In re Lemington Home for the Aged[1] may provide additional leverage in litigation and settlement negotiations. In Lemington, the official committee of unsecured creditors asserted claims against the directors and officers of the Lemington Home for the Aged for breach of their fiduciary duties of care and loyalty and deepening insolvency.

The committee’s claims arose from a pattern of neglect and...
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