Megan Noh, co-chair of the Art Law Group, filed a new lawsuit against an alleged former member of Paddle8's board of directors, John Textor, and companies with which he has been affiliated. The action was taken via the U.S. Bankruptcy Court, Southern District of New York, through Noh's role as the company's Chapter 11 Bankruptcy trustee.
Founded in 2010, Paddle8 served as a web-based collectors auction house for private investors and nonprofit organizations. The company filed for bankruptcy in early 2020 as the economic ramifications of the COVID-19 pandemic took hold of a number of businesses.
The new suit alleges mismanagement by the previous board. According to ARTnews:
"The suit alleges that he displayed 'a reckless disregard for his duties' by putting the interests of his companies ahead of those of the stakeholders of Paddle8, which includes its creditors. The lawsuit is seeking $6 million in damages plus interest from Textor and $1 million in damages plus interest from the other companies named in the lawsuit [...].
In a statement sent to ARTnews, Noh said, "I continue to discharge my fiduciary duty to maximize the value of the bankruptcy estate of [Paddle8], using all rights and remedies available, including in connection with the allegations in our complaint."
Read more in the ARTnews article tiled, "Paddle8 Bankruptcy Trustee Sues John Textor for $6 M."
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