Litigation Practice Group is now a confirmed liquidation trust case, with Richard A. Marshack administering post-confirmation recoveries, claim review, and a large docket of adversary proceedings rather than reorganizing an operating law firm. The plan was confirmed on September 9, 2024, and the trust reported that the plan became effective on September 24, 2024; as of the quarter ended March 31, 2026, cumulative cash disbursements totaled $19.7 million, no general unsecured distributions had been made, and final-decree timing remained open because litigation, claim objections, and claims review were still ongoing in the post-confirmation reportDkt. 2618.
The case began after LPG, a consumer debt-relief law firm, collapsed under a capital structure and business model that the trustee later characterized through litigation as dependent on high-cost financing, merchant-cash-advance style obligations, affiliate marketing arrangements, and transfers of client-payment streams. By April 2024, the trustee was reporting disputed asserted secured positions tied to MNS Funding, Diverse Capital, Azzure and other funding parties, including UCC-backed claims against substantially all debtor assets in the trustee status reportDkt. 1112. The estate then pivoted from operating-case stabilization to litigation-driven liquidation: the creditors' committee filed a modified liquidation plan creating a liquidating trust, placing Marshack in control of estate assets and causes of action, and dividing recoveries across secured, priority, general unsecured, subordinated and equity classes under the . The court confirmed that plan in the .
Post-confirmation value is being pursued through claims objections and avoidance, turnover, fraudulent-transfer, preference, and related litigation. The trustee has challenged a $66.9 million Affirma claim tied to Spot On-originated notes allegedly carrying 80% to 100% annual interest in the Affirma adversary complaintDkt. 2281, and in January 2026 filed additional complaints against BC Consulting, the Herzstock defendants, Principal Life, All Service Financial, and OHP-related parties seeking recoveries or declaratory relief tied to alleged prepetition and postpetition transfers, affiliate arrangements, insurance payments, and funding structures. The current procedural track is coordinated litigation administration: on April 30, 2026, the court approved streamlined procedures for 14 adversary proceedings, stayed formal discovery and most merits litigation through August 3, 2026, set a uniform August 6, 2026 status conference, and vacated the May 26, 2026 hearing in the streamlined adversary procedures orderDkt. 2623.
