Yankwitt LLP Wins Dismissal of Fraudulent Transfer Claim Against National Law Firm

In another successful outcome by Yankwitt LLP’s growing law firm representation practice, a team led by Michael Reed prevailed on its motion to dismiss a fraudulent transfer case filed against a national law firm in the Supreme Court of New York, New York County.

The law firm had defended a company’s principal in a federal criminal matter for which the company paid his defense costs. In our case, the plaintiff, a creditor of the company, alleged that the payment of legal fees to our client was a fraudulent transfer because the company was allegedly insolvent and received no benefit from our client representing its principal.

Yankwitt LLP moved to dismiss, arguing that the allegations of insolvency were conclusory and that the principal’s company received reasonably equivalent value because the legal services the principal received benefited the company.

The court agreed with Yankwitt LLP’s arguments and dismissed the case. The court then went further and denied the plaintiff leave to amend, delivering a complete victory for Yankwitt LLP’s client at the trial court.

Yankwitt LLP represents law firms in high-stakes litigation across a broad range of matters, including tort claims, employment disputes, internal and government investigations, and insurance coverage issues. The firm also serves as shadow counsel in professional malpractice matters, helping ensure clients’ interests are protected alongside insurance defense counsel.