The heightened preference complaint pleading standards based on Iqbal/Twombly as interepreted in Delaware certainly have increased the numbers of motions to dismiss preference claims. However, a steamline procedures motion can render motions to dismiss based on 12(b)(6) a frustrating, costly and ineffective “catch me if you can” exercise.
Articles tagged with: VeraSun Energy Corporation
Iowa Corn Farmers Turn Back VeraSun Energy Corporation’s Threatened Bankruptcy Preference Actions
With the passage on October 31, 2010 of the 2 year statute of limitations, Iowa’s corn farmers have definitively rebuffed a threatened onslaught of preferential transfer avoidance actions by VeraSun Energy Corporation. The 198 defendants who were named in the VeraSun preference actions only can envy the result of the tenacity and resourcefulness of these Iowa farmers. And more than a few small business owners should eat an extra helping of corn at Thanksgiving in thanks for the corn farmers undoubted influence on VeraSun’s decision to set a $20,000 floor for bringing preference actions. The story behind the success of the Iowa Corn Farmers has an important lesson.