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KLS – Fraud, Negligence

Represented shareholder of a health care provider that had been placed into conservatorship by the State of California, and then into Chapter 11 bankruptcy.  Debtor sued the shareholder for, among other things, fraudulent transfers and aiding and abetting breach of fiduciary duties.  Case settled without out-of-pocket payments by shareholder client and with the right to recover an uncontested and unsecured claim exceeding $282,100 from the bankruptcy estate.