News

COURT ENTERS JUDGMENT IN FAVOR OF

BLF CLIENT ON $9.44 MILLION JURY VERDICT

June 30, 2017

The United States District Court for the Eastern District of Pennsylvania entered judgment in favor of BLF client Impala Platinum and against defendant Ashok Kumar Khosla for $9.44 million, plus pre-judgment and post-judgment interest. 

The court’s order upheld the March 2017 jury verdict, which found defendants, the shareholders and insiders of closely-held Pennsylvania corporation A-1 Specialized Services and Supplies, Inc., liable to Impala Platinum for constructive fraudulent transfer, based on transfers from A-1 to and for the benefit of its insiders made while A-1 was insolvent.

In March 2016, BLF’s clients Impala Platinum Holdings Limited and Impala Platinum Refining sued A-1's shareholders and insiders for fraudulent transfer, based on transfers from A-1 to and for the benefit of its insiders that were made while A-1 was insolvent. Impala, A-1’s largest creditor, had obtained an arbitration award of more than $200 million against A-1 in December 2015.

The jury found the insiders liable to Impala for constructive fraudulent transfer, and imposed a total of $16 million in damages. The jury allocated 59% of the damages verdict to A-1 shareholder Ashok Kumar Khosla.

During the trial, the remaining defendants reached a settlement with Impala, which resolved all claims against them for a total consideration of $10,715,000. On June 30, 2017, the court enforced the pro rata settlement between Impala and the settling defendants, and entered judgment against defendant Ashok Kumar Khosla in the amount of $10,006,400, giving BLF’s clients a total award and settlement amount of $20,721,400.

BLF attorneys Richard L. Bazelon, Lisa A. Barton, A. Richard Feldman, and Michael F.R. Harris represented Impala Platinum in this action.

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