Special Counsel to Receivers and Trustees
A Receiver is legally appointed to act as the custodian of a company's assets or business operations. A Receiver is empowered on behalf of the receivership estate to recover assets for the benefit of defrauded investors, victims, and creditors. In his or her capacity as a Receiver, a Receiver often retains special counsel assist him or her in conducting investigations or prosecuting claims and recovering damages on behalf of investors, victims, and creditors. Similarly, a trustee is an individual appointed to represent a debtor's estate in a bankruptcy proceeding to administer the estate. Like a Receiver, a trustee often retains special counsel to represent or assist the trustee in carrying out the trustee's duties in investigating and prosecuting claims on behalf of the estate and its creditors.
Lax & Neville has served as special counsel to court-appointed Receivers and Trustees. As special counsel, Lax & Neville takes an active role in enforcing all the legal and equitable rights and remedies available to investors, victims, creditors and the estate in receivership and bankruptcy actions.
On September 18, 2017, Lax & Neville was appointed by court order as special securities litigation counsel for court-appointed Receiver, Richard W. Barry, in an action commenced by the Attorney General of New Jersey on behalf of the Chief of the New Jersey Bureau of Securities. The action alleged securities fraud in the sale of securities, as well as other violations of the New Jersey Uniform Securities Laws, by defendants Osiris Fund Limited Partnership (a hedge fund), Peter Zuck, and others. State of New Jersey, et al. v. Peter Zuck, et al., Docket No.: HDU-C-125-12. Lax & Neville initiated a FINRA arbitration proceeding, on behalf of the Receiver Richard Barry, against the defendants and was successful in opposing an Order to Show Cause filed the defendants seeking injunctive relief restraining the Receiver Richard Barry from pursuing claims brought against them in the pending FINRA arbitration proceeding.
On January 20, 2021, Lax & Neville was appointed by a U.S. Bankruptcy Court order as Special Litigation Counsel for Don A. Beskrone, Chapter 7 Trustee of Rosetta Genomic, Inc, to represent the Trustee in the investigation and prosecution of certain potential D&O insurance policy, commercial law or other claims, including breach of fiduciary duty, gross negligence and fraud, on behalf of the bankruptcy estate and its creditors. In re: Rosetta Genomic, Inc., Case No. 18-11316.
Lax & Neville has specialized skill, knowledge and experience in securities law and arbitration. Our attorneys have the practical and legal experience needed to handle the unique challenges of being special counsel to Receivers and Trustees. Please contact Lax & Neville LLP for a consultation.