Girardi Litigation Funders Win Exit From Bankruptcy Trustee Suit

The trustee for bankrupt Girardi Keese Tuesday lost a bid to hold litigation funders responsible for purportedly helping Thomas Girardi engage in fraud.

Res judicata resolves “virtually all” of the claims at issue in the adversary proceeding against Counsel Financial Services, California Attorney Lending II, and lawyer Joseph D. DiNardo, US Bankruptcy Judge Barry Russell said after a hearing in Los Angeles on Tuesday, granting the defendants bids for dismissal. DiNardo is allegedly part owner of both companies.

Larry Hutcher of Davidoff Hutcher & Citron, counsel to the Counsel Financial entities, hailed the US Bankruptcy Court for the Central District ...