Landis Rath & Cobb LLP Noted in Law360: Orexigen Says McKesson Can’t Nab $7M in Debt Setoff Fight
A recent Law360 article by reporter Vince Sullivan, Orexigen Says McKesson Can’t Nab $7M In Debt Setoff Fight, details an objection filed in Delaware by Landis Rath & Cobb on behalf of Orexigen, Inc. In the objection, LRC asserts that distributor McKesson Corp. is not entitled to receive $6.9 million in segregated funds being held while a dispute over a three-party setoff plan is unresolved.
The article highlights LRC’s principal argument that “the triangular setoff proposed by McKesson Corp. is not allowed under the Bankruptcy Code because McKesson and its subsidiary that ran a customer rebate program for the debtor are separate legal entities and don’t meet the mutuality requirements for triangular setoff.” Orexigen is represented by LRC attorneys Richard Cobb, Kerri Mumford and Jennifer Cree.