December 8, 2017
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. According to the PALaw 2017 Annual Report on the Legal Profession, published this week by the Legal Intelligencer, this verdict was the tenth largest award or settlement amount in the Commonwealth of Pennsylvania in 2017.
In this case, BLF’s clients Impala Platinum Holdings Limited and Impala Platinum Refining 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 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 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.