Bast Amron

Miami Business and Bankruptcy Litigation Law Firm

ATTORNEYS FROM BAST AMRON, LLP NEGOTIATE $22.7 MILLION GLOBAL SETTLEMENT WITH FORMER CEO OF MODELL’S SPORTING GOODS, INC.

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May 23rd, 2024 - Posted in Alejandra M. Iglesia, Brett M. Amron, In The News, Peter J. Klock, II

MIAMI, FL– May 23, 2024, A Bast Amron team consisting of partners Brett M. Amron and Peter J. Klock, II, attorney Alejandra Iglesia, and paralegal Maria Desvergunat serves as Special Litigation Counsel to the Modell’s Sporting Goods, Inc. (“MSGI”) Liquidation Trust.In close collaboration with co-counsel at Lowenstein Sandler LLP, including Jeffrey Cohen, Michael Kaplan, and Michael Papandrea, Steven Balasiano, liquidating trustee and consultant Anthony Saccullo of Saccullo Business Consulting, Bast Amron negotiated a $22.7M settlement with former CEO Mitchell Modell and several family-owned, real estate-owning affiliates of Mr. Modell.  The settlement fully and finally resolved the Liquidation Trust’s claims in a heavily litigated adversary proceeding. Click here to view the 85-page opinion denying the defendants’ motions to dismiss the complaint.

Brett Amron stated, “Together with the prior resolution of the Liquidation Trust’s claims against the former CFO of MSGI, the settlements in this adversary proceeding will result in the recovery of nearly $26M for creditors.  Given insurance coverage totaled only $10M, this was a fantastic result for the Liquidation Trust and MSGI’s creditors and was the product of Bast Amron’s policy of thoroughly investigating each claim prior to filing and aggressively preparing each case for trial.”

In March of 2022, Bast Amron filed suit against the former officers of MSGI for the breach of their fiduciary duties, six affiliated real estate holding companies owned by the Modell family for, among other things, aiding and abetting the officers’ breach of their duties, and Mr. Modell for authorizing nearly $11.5M in unlawful dividends while the company was insolvent.  Following a prior settlement with MSGI’s former CFO for the sum of $2.8M and a favorable ruling on the remaining defendants’ motions to dismiss the complaint, each of the Liquidation Trustee’s twelve claims proceeded into discovery and were subsequently resolved via a global settlement in April of 2024.  The settlement was approved by the Honorable Vincent Papalia of the Bankruptcy Court for the District of New Jersey on May 21, 2024.

 

 

MIAMI, FL– May 23, 2024, A Bast Amron team consisting of partners Brett M. Amron and Peter J. Klock, II, attorney Alejandra Iglesia, and paralegal Maria Desvergunat serves as Special Litigation Counsel to the Modell’s Sporting Goods, Inc. (“MSGI”) Liquidation Trust.In close collaboration with co-counsel at Lowenstein Sandler LLP, including Jeffrey Cohen, Michael Kaplan, and Michael Papandrea, Steven Balasiano, liquidating trustee and consultant Anthony Saccullo of Saccullo Business Consulting, Bast Amron negotiated a $22.7M settlement with former CEO Mitchell Modell and several family-owned, real estate-owning affiliates of Mr. Modell.  The settlement fully and finally resolved the Liquidation Trust’s claims in a heavily litigated adversary proceeding. Click here to view the 85-page opinion denying the defendants’ motions to dismiss the complaint.

Brett Amron stated, “Together with the prior resolution of the Liquidation Trust’s claims against the former CFO of MSGI, the settlements in this adversary proceeding will result in the recovery of nearly $26M for creditors.  Given insurance coverage totaled only $10M, this was a fantastic result for the Liquidation Trust and MSGI’s creditors and was the product of Bast Amron’s policy of thoroughly investigating each claim prior to filing and aggressively preparing each case for trial.”

In March of 2022, Bast Amron filed suit against the former officers of MSGI for the breach of their fiduciary duties, six affiliated real estate holding companies owned by the Modell family for, among other things, aiding and abetting the officers’ breach of their duties, and Mr. Modell for authorizing nearly $11.5M in unlawful dividends while the company was insolvent.  Following a prior settlement with MSGI’s former CFO for the sum of $2.8M and a favorable ruling on the remaining defendants’ motions to dismiss the complaint, each of the Liquidation Trustee’s twelve claims proceeded into discovery and were subsequently resolved via a global settlement in April of 2024.  The settlement was approved by the Honorable Vincent Papalia of the Bankruptcy Court for the District of New Jersey on May 21, 2024.