In March 2017, after a five-day trial in the Eastern District of Pennsylvania, the jury announced a $16 million verdict in favor of BLF’s clients Impala Platinum Holdings Limited and Impala Platinum Refining.
In this case, BLF’s clients sued closely-held Pennsylvania corporation A-1 Specialized Services and Supplies, Inc. and its 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 the London Court of International Arbitration in December 2015. BLF obtained a judgment against A-1 confirming the arbitration award in the U.S. District Court in 2016.
The jury found A-1’s 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 resolving all claims against them for a total consideration of $10,715,000. In June 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.