300 Clawback Actions Filed in Verity Health System of California, Inc. Bankruptcy Case
December 1, 2020, California – The plaintiffs in the bankruptcy case of Verity Health System of California Inc., et al ( the “Debtors”) recently initiated more than 300 lawsuits to set aside and recover alleged “preferential transfers” for the benefit of the Debtors’ estate.
The plaintiffs allegedly seek recovery of more than $48 million from approximately 326 lawsuits, that had been filed against several vendors, creditors, suppliers and distributors that provided goods and/or services to or for the Debtors.
The largest case in the group is allegedly filed against McKesson Specialty Distribution LLC for return of $4,163,552.98, Touchpoint Support Services, LLC for avoidance of $1,439,678.51 and Microsoft Corporation for $1,405,729.51
Each of the 17 Debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code two years ago in August 2018. The cases are jointly administered under Case no. 18-20151 before the Honorable Judge Ernest M. Nobles, in the United States Bankruptcy Court for the Central District of California.