As reported earlier, O’Hagan Meyer, led by lawyers Jim Cosby and Brandon Sieg, represented Gemstone Solutions Group, Inc. (f/k/a Gymboree Group, Inc.), certain officers and reorganization consultants, and six corporate affiliates, in claims brought against them by Deutsche Bank Trust Company Americas. Deutsche Bank brought claims for breach of trust, aiding and abetting, conversion and civil contempt, on its own behalf and on behalf of noteholders. The claims were based on actions occurring in the course of the debtors’ prior Chapter 11 bankruptcy, one of largest national retailer bankruptcies in the country. Our clients prevailed on all counts, by the trial court’s granting of the Defendants’ cross-motion for partial summary judgment; renewed motion to dismiss all counts; and their request to rule on the renewed motion to dismiss under summary judgment standards, per Fourth Circuit authority. The Bankruptcy Court found in our clients’ favor on all issues and entered a final order dismissing all claims.
Deutsche Bank appealed the dismissal of its claims to the U.S. District Court for the Eastern District of Virginia, on June 22, 2020. After briefing by the parties on appeal, the U.S. District Court, Judge Hannah Lauck, affirmed the Bankruptcy Court’s dismissal of all claims, by 22 page Memorandum Opinion published August 16, 2021. A copy of the Court’s opinion can be found below.