Senior Counsel Katie Catanese was quoted in a Law360
article, “Del. Justices Urged To Remand S. China Livestock Case
,” when she argued before the Delaware Supreme Court that a lower court judge had erred when he tossed claims in a summary judgment motion against the former executive of a failed Chinese livestock company.
Catanese represents the court-appointed receiver for Southern China Livestock Inc., who is suing Shu Kaneko, a former executive and director at the company, for breach of fiduciary duty, alleging that Kaneko stole more than $2.35 million from investors before the newly formed company “went dark” and stopped reporting to the U.S. Securities and Exchange Commission.
She told the three-judge panel that the lower court ruling incorrectly rejected arguments that Southern China Livestock received any value for impermissibly taken shares of the company. Those shares were allegedly returned to secure the release of fraudulent transfer claims and other allegations against Kaneko.
“We ask that Kaneko not be able to use the release that he’s attempting to use in this case as a cloak to avoid liability here,” she said. “We believe there are strong issues of fact regarding the fraudulent transfers and, most importantly, the value of the consideration or the alleged consideration supporting the release.”