Bankruptcy Service Providers Gouge Estate Customers, Suit Says

The three biggest bankruptcy estate management service companies in the U.S. have conspired, since the 2008 financial crisis, to extract “excessive, if not exorbitant” fees from estates, according to an Aug. 29 complaint filed in the District of Connecticut.

Bankruptcy Management Solutions Inc., which is now known as Stretto, Epiq eDiscovery Solutions Inc., and TrusteSolutions altered the traditional payment methods for their services to reduce competition and gouge customers with higher fees, the complaint says.

BMS, Epiq, and TS control nearly the entire bankruptcy support services market, according to the complaint. BMS controls 50% of the market, and Epiq and ...