Bankruptcy Claims Agents Fight DOJ’s Info-Sharing Sanctions Bid

Epiq Corporate Restructuring and three other bankruptcy legal services providers are fighting a Justice Department call for sanctions related to their information sharing, arguing that the government has overstated its accusations of wrongdoing.

The companies, often hired in large Chapter 11 cases to process paperwork and provide key information to creditors, were packaging creditor claims data and selling them to a market making platform called XClaim Inc.

The companies’ contracts with XClaim have been terminated. But the US Trustee—the Justice Department’s bankruptcy monitoring program—said they violated a “fundamental bankruptcy tenet” by failing to disclose to the court their relationships with ...