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Millennium Lab Trustee Initiates $35M Clawback Suit against Citibank and Others

November 7, 2017, Delaware – Earlier last month, a Chapter 11 trustee for the estate of Millennium Lab Holdings II LLC, Marc Kirschner sued JPMorgan Chase and three other banks for over $35.3 million in fees they received for arranging a $1.8 billion deal. This deal allegedly led to the collapse of Millennium Health LLC.

The named defendants in the fraudulent suit included – JPMorgan Chase Bank NA, Citibank NA, BMO Harris Bank NA and SunTrust Bank. JPMorgan received about $19.4 million in fees for its work; Citibank, approximately $12.4 million; and BMO and SunTrust, nearly $1.77 million each. In its clawback action, the trustee seeks to recover these fees that were paid to the banks in 2014, about eight months before the drug testing business began facing heightened US Justice Department scrutiny and about 18 months before it filed for bankruptcy.

The pretrial conference in these cases is scheduled for January 4, 2018, at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #2, Wilmington, Delaware.

R. Karl Hill and Jared T. Green of Seitz Van Ogtrop & Green PA and David H. Wollmuth, Lyndon M. Tretter and Jeffrey Coviello of Wollmuth Maher & Deutsch LLP are representing the trustee, Kirschner.

The adversary case is Kirschner v. JPMorgan Chase Bank NA et al., case number 1:17-ap-51840, and the bankruptcy is In re Millennium Lab Holdings II LLC, case number 1:15-bk-12284, both in the U.S. Bankruptcy Court for the District of Delaware.


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