Global law firm K&L Gates LLP represented the Official Committee of Unsecured Creditors in a bankruptcy case against Water Station Management, a company operating water vending machines. The case was heard in the US Bankruptcy Court for the Eastern District of Washington.
The court determined that Water Station Management ran a Ponzi scheme by using funds from new investors and creditors to pay earlier ones due to insufficient income. As a result, the judge approved the creation of a creditors trust to seek further recoveries and manage claims. This trust will help victims resolve their claims and receive future disbursements.
The K&L Gates trial team included Seattle partners John Bender and Mike Gearin, supported by associates Michael Meredith, Madisyn Uekawa, Clara Virden, and Ben Woodruff.
“Judge Corbit’s important ruling from the bench is attributable to the hard work of the members of the Official Committee who devoted their time and energies to protect the interests of the victims,” said Bender. “Our work on behalf of Water Station’s victims is not finished. We are committed to holding culpable parties accountable, identifying and recovering Water Station’s stolen funds, and returning every cent we can to their rightful owners.”
K&L Gates’ Litigation and Dispute Resolution practice has lawyers across multiple continents. The firm’s litigators include nationally and internationally ranked practitioners as well as fellows in leading legal organizations.