Texas Judge Says 'Too Draconian' To Toss $63M Investor Suit

Law360 (November 12, 2019, 8:05 PM EST) -- A federal judge in Texas has trimmed a lawsuit brought by jilted creditors seeking to collect on a $63 million judgment against a real estate investment company, while holding that tossing the entire lawsuit would be “too draconian, unduly prejudicial to plaintiffs and unwarranted.”

U.S. District Judge Sam A. Lindsay issued an order on Friday that American Realty Investors Inc. and EQK Holdings Inc. — which have been accused by David M. Clapper and Michigan-based Atlantic Midwest LLC of fraudulently moving assets during bankruptcy so that ARI affiliate American Realty Trust Inc. would be unable to pay the judgment — won’t...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!