Nixon Peabody Files Motion to Dismiss Double Jump Trustee’s Complaint Seeking Damages for Alleged “Breach of Fiduciary Duty”
January 28, 2022, District of Nevada – Defendant Nixon Peabody, LLP files a motion to dismiss the lawsuit filed by Trustee Christina Lovato for the bankruptcy estates of Debtors DC Solar Solutions, Inc. DC Solar Distribution, Inc., DC Solar Freedom, Inc., and Double Jump, Inc. Last year on October 25, 2021, Lovato filed an action against Nixon, seeking damages and making allegations of “professional malpractice”, “breach of fiduciary duty”, “aiding and abetting breach”, “disallowance of claims”, and “constructive fraudulent transfers”.
In its motion, Nixon asserts that the Debtor’s bankruptcy petition arose out of a “criminal Ponzi scheme” allegedly conceived and orchestrated by two individuals – Jeff and Paulette Carpoff. Nixon further claims that the Carpoffs “devised the criminal scheme and perpetrated it” through their wholly-owned and wholly controlled companies, DC Solar Solutions and DC Solar Distribution. Accordingly, Nixon argues that the Carpoffs (not Nixon or anyone else) were the “principal wrongdoers” in the underlying “fraud”. The motion contends that Carpoffs are “at least equally at fault” as anyone else for the harm caused by their “unlawful conduct”, so in pari delicto bars them from bringing claims against Nixon for conduct related to their fraud. Accordingly, Nixon requests the Court for an order dismissing Counts I–IV and VIII of the complaint with prejudice.
In re DOUBLE JUMP, INC., Case 21-05072-gs