Robert N.C. Nix Federal Courthouse in Philadelphia, home to U.S. Bankruptcy Court for the Eastern District of Pennsylvania. Credit: Beyond My Ken via Wikimedia Commons Lit Funder Virage Wants Sacks Weston Bankruptcy Dismissed
The funder claims the firm's Chapter 11 filing was a bad-faith effort to delay trial and forum shop in a dispute stemming from a $5.79 million loan agreement.
March 21, 2024 at 02:05 PM
4 minute read
Law Firm Bankruptcy and Dissolution
What You Need to Know
- Litigation funder Virage Capital has filed a motion to dismiss in Sacks Weston's bankruptcy, claiming the firm filed Chapter 11 in bad faith as an attempt to forum shop and delay proceedings in its ongoing contractual dispute in Texas.
- The motion additionally highlights weaknesses in the firm's bankruptcy plan, including failing to provide a strategy for the firm's survival and failing to name new leaders for the firm's reorganization.
Embattled Philadelphia firm Sacks Weston is facing another hurdle in its Chapter 11 proceedings, with creditor and litigation funder Virage Capital seeking Wednesday to dismiss the firm's bankruptcy petition claiming it was filed in bad faith as a means to delay trial and forum shop in an ongoing dispute between the two parties.
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