United Lex Corporation Seeks Dismissal of Complaint to Recover $17M as Clawback Transfers in Bankruptcy Case of LeClairRyan PLLC
August 25, 2021, Eastern District of Virginia – Defendants ULX Partners, LLC, ULX Manager, LLC, and UnitedLex Corporation moves to dismiss a complaint filed by Trustee Lynn L. Tavenner of the bankruptcy estate of LeClairRyan PLLC to recover over $17 million, alleging preference and fraudulent transfer claims, misappropriation of trade secrets, breach of fiduciary duty, common law conspiracy, statutory conspiracy pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, made applicable to this proceeding by Rule 7012(b) of the Federal Rules of Bankruptcy Procedure.
The case purportedly arose from the business failure of Richmond-based law firm LeClairRyan. As alleged in the complaint, on or about the fall of 2017, the struggling law firm began negotiating a potential joint venture with a legal services provider, UnitedLex, which was intended to resolve the firm’s financial problems with an infusion of much-needed liquidity. However, rather than resolving the Debtor’s financial issues, the actions or inactions of the ULX Entities allegedly served to plunge LeClairRyan further into insolvency.
The case is In re LeClair Ryan PLLC in the United States Bankruptcy Court for Eastern District of Virginia under case no. 3:20-ap-03142. The Defendants are represented by the law firm of Thomas J. McKee, Jr.