Lear Capital’s Bankruptcy Not Filed in Good Faith, 24 States Say

A group of state attorneys general urged a court to toss Lear Capital’s Chapter 11 case, arguing that the coin dealer filed it improperly to litigate possible business-related claims through bankruptcy.

“Lear’s bankruptcy filing does not serve a valid bankruptcy purpose and was filed to obtain a tactical litigation advantage against state governmental entities that have been coordinating investigations into Lear’s actions over the last two years,” according to a filing in the U.S. Bankruptcy Court for the District of Delaware by 24 states, Washington D.C., and the Commonwealth of Puerto Rico.

Lear Capital March 2 filed a small business ...