Embattled Philadelphia firm Sacks Weston is facing another hurdle in its Chapter 11 proceedings, with creditor and litigation funder Virage Capital seeking Wednesday to dismiss the firm’s bankruptcy petition claiming it was filed in bad faith as a means to delay trial and forum shop in an ongoing dispute between the two parties.
Virage—which sued the firm a year ago in Texas state court alleging that a breach of a $5.79 million loan agreement now has the firm in roughly $14 million in debt—claims that Sacks Weston filed its bankruptcy in Pennsylvania in order to circumvent the loan’s forum selection clause as well as a temporary injunction placed by the Texas courts requiring the firm to deposit collateral proceeds from the firm’s opioid cases into the registry of the court.
