Chem Rx Trustee Sues Ex-Execs Who Profited From Faulty LBO

Law360, New York (December 11, 2012, 2:33 PM EST) -- The trustee of bankrupt Chem Rx Corp. on Friday sued the company’s former top brass in New York state court, claiming the executives dishonestly pushed through a leveraged buyout transaction and walked away with $106 million, while leaving the company mired in debt it could never repay.

AP Services LLP, in its capacity as trustee of the CRC litigation trust, brought the suit that accuses ex-CEO Jerry Silva along with his son and former Chief Operating Officer Steven Silva of intentionally causing company earnings to be...
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