Ovonyx Memory Technology & Others Move for Dismissal of Energy Conversion Devices Liquidation Trust’s Third Amended Complaint
January 12, 2022, Eastern District of Michigan – Defendant Ovonyx Memory Technology, Inc. (“OMT”) files a motion to dismiss the third amended complaint and to strike a tortious interference claim of Energy Conversion Devices Liquidation Trust in the bankruptcy case of Energy Conversion Devices, Inc.
Concurrently with OMT’s Motion, Defendants Ovonyx, Inc. and Micron Technology, Inc. also file their motions to dismiss the Trust’s third amended complaint and strike successor liability and alter ego claims. OMT incorporates Ovonyx and Micron’s Motion and its supporting brief by reference in its Motion.
The Motion alleges that the complaint tries to revive the same legally deficient theories that the Court had already rejected in its earlier Opinion in October 2020 – namely, that the Trust can enforce 1998 First- Refusal Right against Ovonyx in the context of agreements that Ovonyx executed during the 2015 transactions. The Defendants argue that these theories allegedly fail as a matter of law to support the Trust’s claim against OMT for fraudulent transfer. The Motion further asserts that the Trust allegedly improperly reintroduced these allegations without seeking (let alone obtaining) reconsideration of the Court’s prior Opinion under Local Rule 9024-1 or Federal Rule of Civil Procedure 60(b). The Defendants allege that there is no reason for the Court to reconsider its exhaustive analysis of the same allegations. Adding further, the Motion contends that to the extent the Trust intends to raise any new arguments on the issue of whether the 2000 Stockholders agreement superseded the 1998 First-Refusal Right, the Trust waived those arguments by failing to brief them in response to prior motions to dismiss.
In re ENERGY CONVERSION DEVICES, INC., Adversary No: 18-04320