Looted ChinaCast Seeks Ch. 11 After $65.8M Judgment

Law360, Wilmington (November 9, 2016, 7:50 PM EST) -- ChinaCast Education Corp. filed for Chapter 11 protection Wednesday in New York, one day after a California federal judge issued a $65.8 million default judgment against the company over class claims regarding its chief executive officer’s theft of $120 million from company coffers.

A class of investors in 2012 sued ChinaCast, alleging that the company was responsible for founder and former CEO Ron Chan Tze Ngon’s $120 million looting scheme, and on Tuesday won a $65.8 million default judgment due to ChinaCast’s absence in the case....
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