Pharmed directors, administrator settle dividend and redemption suit

By Caroline Salls

Pittsburgh, July 21 - Pharmed Group Holdings, Inc. plan administrator Dorene Robotti requested court approval of a settlement with lawsuit defendants Carlos M. De Cespedes, Carlos Cespedes Irrevocable Trust, Jorge L. De Cespedes and Jorge Cespedes Irrevocable Trust, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

Robotti said she filed a lawsuit in June 2009 alleging that the defendants received payments comprised of unlawful and avoidable dividends and stock redemptions.

In addition, the administrator's complaint alleged that directors Carlos M. and Jorge L. De Cespedes, as well as director Bertin J. Perez, authorized more than $105 million in unlawful dividend and stock redemption payments.

Several of the defendants named in the lawsuit have already entered into settlements with Robotti, the motion said.

Under this latest settlement, Carlos M. and Jorge L. De Cespedes and their trusts each consented to the entry of a $15 million judgment.

Pharmed, a Miami-based full-line distributor of medical, surgical and rehabilitative supplies, filed for bankruptcy on Oct. 26, 2007. Its Chapter 11 case number is 07-19187.

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