Willkie Farr & Gallagher LLP
06/30/2026 | News release | Distributed by Public on 06/30/2026 07:41
Willkie Wins Complete Dismissal of Fraud and Misrepresentation Claims Against Former GenapSys Directors and Officers
Willkie Wins Complete Dismissal of Fraud and Misrepresentation Claims Against Former GenapSys Directors and Officers
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June 30, 2026
Willkie secured a complete dismissal of all claims against three former directors and officers ("the D&O defendants") of GenapSys, Inc., now known as Redwood Liquidating Co., in an adversary proceeding brought by Oxford Finance LLC in the United States Bankruptcy Court for the District of Delaware.
On June 18, 2026, Judge Brendan Linehan Shannon granted the D&O defendants' motion to dismiss in its entirety, conclusively dismissing Oxford's claims for fraudulent concealment and negligent misrepresentation. The complete dismissal of fraud and negligent misrepresentation claims against individual directors and officers is a rarity at the motion to dismiss stage, particularly when fraud allegations are involved.
Oxford, a specialty finance lender, first brought the case in 2025, alleging that the D&O defendants concealed the existence and value of legal malpractice claims worth millions of dollars during the 2022 sale of debtor GenapSys' assets to a third-party buyer, inducing Oxford to release its liens on remaining property. The adversary proceeding seeks to recover proceeds arising from the settlement of malpractice claims brought by Redwood against GenapSys' former corporate counsel.
The Court's ruling adopted multiple arguments advanced by Willkie, including, among others, that the malpractice claims were expressly excluded under the Asset Purchase Agreement, that Rule 9(b)'s heightened pleading standard applied not only to Oxford's fraudulent concealment claim but also to its negligent misrepresentation claim, and that Oxford failed to meet this heightened standard.
The Willkie cross-disciplinary team includes partners Tariq Mundiya, Jeffrey Korn, Stuart Lombardi (who argued the motion), Debra Sinclair, and Richard Li, and associates Gabrielle Antonello, Vincent Palmeri, and Marine Loison.
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Willkie Farr & Gallagher LLP published this content on June 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 30, 2026 at 13:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]