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ITT trustee hires ‘feared’ litigators

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The Chapter 7 bankruptcy trustee for ITT Educational Services has hired “the most feared” litigators in the nation to help with investigating and prosecuting claims against the former directors and officers of the for-profit school.

Robins Kaplan LLP, based in Minneapolis, has been appointed as litigation co-counsel in the ITT bankruptcy. The U.S. Bankruptcy Court for the Southern District of Indiana granted the trustee’s application Friday.

The Indiana-based ITT filed for Chapter 7 protection in September 2016 after the U.S. Department of Education stopped the flow of federal student loan money to the for-profit school. Deborah Caruso of Rubin & Levin P.C. in Indianapolis was appointed as the trustee of the ITT estate.

Robins Kaplan has experience in bankruptcy matters with for-profit colleges and the trustee noted with more than 200 “highly trained trial lawyers” the firm can mobilize “to efficiently and aggressively pursue” the claims against former ITT officials. In its application to employ Robins Kaplan, the ITT trustee described the firm’s litigators as “the best and ‘most feared’” in the nation.

Currently, Robins Kaplan serves as counsel to the Corinthian Distribution Trust, established for the benefit of stakeholders in the bankruptcy of Corinthian Colleges Inc. This is the largest for-profit post-secondary education provider to file for Chapter 11 reorganization.

In addition, the firm’s notable victories include a $6.5 billion settlement with big tobacco; $2.7 billion arbitration award in Kraft v. Starbucks; and $269.4 million jury verdict in Celador International, Ltd. v. The Walt Disney Company.

“ITT was one of the country’s largest for-profit education companies holding a total enterprise value of approximately $5 billion at its peak during the close of the third quarter of 2007,” said H. Jeffrey Schwartz, co-chair of Robins Kaplan’s restructuring and business bankruptcy group and lead counsel to the official committee of unsecured creditors of Corinthian Colleges. “We look forward to working with the Trustee to efficiently and aggressively pursue all (director and officer) claims in an effort to recover stakeholder value.”
 

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  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

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