PRG-Schultz settles fraudulent transfer lawsuit with customer Fleming

By Caroline Salls

Pittsburgh, July 31 - PRG-Schultz International, Inc. has entered into a settlement agreement in connection with a lawsuit filed against the company by the Fleming Post Confirmation Trust, according to an 8-K filed with the Securities and Exchange Commission.

The trust was created under the Fleming Cos.' Chapter 11 reorganization plan.

PRG-Schultz said Fleming was one of its larger customers at the time Fleming filed for bankruptcy on April 1, 2003.

Under the settlement, PRG-Schultz will pay the trust $1.65 million to resolve all claims made in connection with $5.6 million in payments made to the company by Fleming during the 90 days preceding Fleming's bankruptcy filing.

PRG-Schultz said the claims were alleged to be either preference payments or fraudulent transfers.

The company has also agreed to dismiss all claims it may have against Fleming in connection with the latter's bankruptcy.

PRG-Schultz International is an Atlanta-based company involved in recovery auditing and profit improvement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.