Lyondell Shareholder Clawback Litigation


Welcome to the website relating to the shareholder clawback lawsuits being prosecuted by the LB Creditor Trust and the LB Litigation Trust (collectively, the “Trusts”) created pursuant to the plan of reorganization of the Lyondell Debtors. In these lawsuits, the Trusts seek to recover amounts paid to former shareholders of Lyondell in connection with the failed leveraged buyout of Lyondell by Basell AF S.C.A., on or about December 20, 2007. The lawsuits contend that these payments to shareholders constitute fraudulent transfers under applicable law and should be returned to the Trusts for distribution to the Lyondell Debtors’ unsecured creditors.

There are three separate shareholder clawback lawsuits, two based on state law (“State Law Clawback Action I” and “State Law Clawback Action II”) and one based on federal bankruptcy law (the “Federal Law Clawback Action”). State Law Clawback Action I (which was commenced on October 22, 2010 and amended on December 13, 2011 and December 19, 2011) and the Federal Law Clawback Action (which was commenced on December 23, 2010) are both currently pending in the United States Bankruptcy Court for the Southern District of New York before the Honorable Judge Robert E. Gerber (the “Bankruptcy Court”). State Law Clawback Action II was commenced on December 19, 2011 and is currently pending in the Supreme Court for the State of New York, New York County.


State Law Clawback Action I: (Edward S. Weisfelner, as Trustee of the LB Creditor Trust v. Fund 1, et al. (Adv. Pro. No. 10-04609)):

• A copy of the Second Amended Complaint in the State Law Clawback Action I (which was filed on December 19, 2011) [Docket No. 253] can be viewed here.

• Defendants in the State Law Clawback Action I have filed motions to dismiss the lawsuits. A copy of the lead defendants’ motion to dismiss in the State Law Clawback Action I [Docket No. 72] can be viewed here.

• The Trustee’s opposition to these motions to dismiss [Docket No. 142] can be viewed here.

• The lead defendants’ reply brief in further support of their motion to dismiss [Docket No. 168] can be viewed here.

• On January 14, 2014, the Bankruptcy Court issued its Decision and Order on Motions to Dismiss [Docket No. 1891], a copy of which can be found here and a summary of which can be found here.

Federal Law Clawback Action:
(Edward S. Weisfelner, as Trustee of the LB Litigation Trust v. Alfred R Hoffman Charles Schwab & Co Inc Cust IRA Contributory, et al. (Adv. Pro. No. 10-05525)):

• A copy of the most recent Complaint in the Federal Law Clawback Action (filed on April 20, 2011) [Docket No. 264] can be viewed here.

• Defendants in the Federal Law Clawback Action have filed motions to dismiss the lawsuits. A copy of the lead defendants’ motion to dismiss in the Federal Law Clawback Action [Docket No. 158] can be viewed here.

• The Trustee’s opposition to these motions to dismiss [Docket No. 295] can be viewed here.

• The lead defendants’ reply brief in further support of their motion to dismiss [Docket No. 303] can be viewed here.

• Oral argument on the motions to dismiss was held on July 12, 2011. On October 6, 2011, the Bankruptcy Court entered an Order [Docket No. 511] denying the defendants’ motion to dismiss based on the argument that the Trustee lacked standing to bring the Federal Law Clawback Action. A copy of the Order can be viewed here. With respect to the other grounds asserted for dismissal of the Complaint, the Bankruptcy Court has not yet issued a decision.

State Law Clawback Action II:
(Edward S. Weisfelner, as Trustee of the LB Creditor Trust v. Stuart Reichman, et al. (Index No. 653522/2011))


• A copy of the Complaint in State Law Clawback Action II (which was filed on December 19, 2011) can be viewed here.

• No further proceedings have taken place in this Action.

Note: Kurtzman Carson Consultants LLC ("KCC") maintains this website at the direction of Brown Rudnick LLP, the attorneys for the Trusts. KCC maintains this website for the public's convenience and, while KCC makes every attempt to assure the accuracy of the information contained herein, this website is not the website of the United States Bankruptcy Court or the Supreme Court for the State of New York and does not contain the complete, official record of the Bankruptcy Court. All documents filed with the Courts are available for inspection at the United States Bankruptcy Court, Southern District of New York or the Supreme Court for the State of New York, New York County.
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