On October 1, 2014, in Adelphia Recovery Trust v. Prestige Communications of NC, the United States Appeals Court for the Second Circuit entered an Order (Mandate) dismissing, with prejudice, Adelphia Recovery Trust's appeal of the United States District Court for the Southern District of New York's grant of summary judgment in favor of the Prestige Defendants on all of its claims. This Order (Mandate) terminated the litigation brought by the Adelphia Recovery Trust against the Prestige Defendants that spanned three different federal courts over ten years.
The Order was entered following the Adelphia Recovery Trust's dismissal of its appeal with prejudice. Prior to appellate court briefing, the parties reached a settlement in which no financial payment was made by either party, and the parties agreed to mutual releases.
In its original complaint filed on June 24, 2004, Adelphia asserted three counts against the Prestige Defendants: (1) constructive fraudulent conveyance; (2) intentional fraudulent conveyance; and (3) aiding and abetting a breach of fiduciary duty. Adelphia was seeking unspecified damages and the avoidance of an $800 million portion of a $1.1 billion transaction between the parties. In that transaction, Adelphia contracted to purchase all of Prestige's cable television business.
The case was removed from Bankruptcy Court to the United States District Court for the Southern District of New York on January 8, 2008. Subsequently, the Prestige Defendants moved for summary judgment on all of the Adelphia Recovery Trust's claims. On June 27, 2011, the District Court entered an Order granting the Prestige Defendants' motion for summary judgment by dismissing the Adelphia Recovery Trust's case in its entirety. The Adelphia Recovery Trust then appealed that decision to the Second Circuit.
In the litigation, the Prestige Defendants were represented by Harris Winsberg and Douglas Ernst, both from the Atlanta office of Troutman Sanders LLP.
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