Home Motion Practice Orion Energy Funds Moves to Dismiss Plaintiff’s Complaint in Carbonlite Holdings Bankruptcy Case For “Failure to State Claim”

Orion Energy Funds Moves to Dismiss Plaintiff’s Complaint in Carbonlite Holdings Bankruptcy Case For “Failure to State Claim”

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May 24, 2021, District of Delaware – Two weeks ago, Defendants Orion Energy Credit Opportunities Fund II, L.P., Orion Energy Credit Opportunities Fund II PV, L.P., and Orion Energy Credit Opportunities Fund II GPFA, L.P. (the “Orion Funds”) moved the court for an order dismissing counts 4 through 8 of the complaint filed by Plaintiffs Bahram Nour-Omid and Learnicon LLC in the bankruptcy case of Carbonlite Holdings, LLC. The Defendants allege that the Plaintiffs complaint “fails to state a claim” upon which relief may be granted. Plaintiff brought “alleged fraud”, “negligent misrepresentation”, “breach of fiduciary duty”, “breach of good faith and fair dealing”, “aiding and abetting breach of fiduciary duty” claims against the Defendants, and sought “declaratory relief”.

As alleged in the motion filed with the court, the Orion Funds argue that the dispute at issue has nothing to do with the Funds and the matter is allegedly between Plaintiffs, on the one hand, and Farahnik and LF Investment, on the other. According to the motion, the Orion Funds are allegedly not involved because they are “not parties” to any of the agreements between Plaintiffs and Farahnik, allegedly “never reviewed or approved” any of the agreements, and have “not made any representations” to Plaintiffs in connection with these agreements.

Thus, in its motion to dismiss, the Orion Funds urge the court that the Plaintiffs have “failed to state a valid cause of action” against them and have not “established the existence of a judicially remediable right”. Thus, the Orion Funds request the Court to rule that the Plaintiffs have “no legal basis” for declaratory relief, and dismiss the complaint about “failure to state a claim”.


The case is In re Carbonlite Holdings, LLC, et al, Adversary Proceeding No.: 21-50317-JTD in the United States Bankruptcy Court for District of Delaware. Bankruptcy Judge John T. Dorsey is overseeing the Debtor’s bankruptcy case.

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