Case Overview

Representing Matrix Warranty and Matrix Financial in two separate Chapter 7 bankruptcy cases. The Matrix companies provided thousands of consumers with aftermarket service plans for vehicles, electronics, and home appliances. Prior to filing bankruptcy, the Matrix entities were involved in protracted class action litigation in West Virginia. In the bankruptcy case, the firm represented principals of the debtors in connection with a global settlement between the debtor estates and Matrix affiliates. Pursuant to the settlement, the trustees and debtor estates released all claims and causes of action against the Matrix affiliates in exchange for a cash payment. Following approval of the settlements in both Matrix bankruptcy cases, the class action plaintiffs filed new pleadings to include claims against the Matrix affiliates in the West Virginia litigation. On behalf of the debtors and Matrix settlement parties, the firm initiated litigation in the bankruptcy court to enforce the automatic stay and to determine that the new claims in the West Virginia litigation were released by the bankruptcy estates. After a hearing on this matter, the court entered an order finding that the plaintiffs had wilfully violated the automatic stay and took the remaining requests under advisement.