McKool Smith client Alan Halperin, Trustee of the Instant Brands Litigation Trust, has defeated Cornell Capital and the other defendants’ motions to dismiss the Trustee’s case against them. The decision was issued by U.S. District Judge Margaret M. Garnett and denies all bases of the defendants’ motions to dismiss. The case concerns the Trustee’s claims to recover hundreds of millions of dollars from defendants as a result of the illegal dividends they received or approved and related breaches of fiduciary duty.
The trustee is represented by McKool Smith Principals Kyle Lonergan, James H. Smith, and Josh Newcomer.
The case is Alan D. Halperin v. Cornell Capital LLC, et. al., case number 4:24-ap-3232 in the U.S. District Court for the Southern District of New York.
Coverage on the decision can be found below:
- "Instant Brands Trustee Dispute Continues Amid NY Suit" Law360 (August 12, 2026)
- "Private Equity: Private-Market ETF's Hit a Snag | AI Boom Bolsters Large Firms' Returns | Sponsor-Backer IPOs on the Rise" The Wall Street Journal Pro (August 10, 2026)
