A $3.2 million settlement has been authorized between the JRJR33 Trustee and numerous executives.
Last year, the JRJR33 bankruptcy trustee accused the CEOs of fraud.
The Trustee argues in an adversary action filed on June 26th that
Exorbitant insider management fees and costs wiped out the creditors’ and their affiliates’ considerable asset worth.
The Rochon defendants, aided by a hand-picked and ineffective board, failed to safeguard the value of the Debtors’ large assets, inflicting severe financial harm to the Company, its creditors, and stakeholders.
Whatever John R. Rochon commanded was generally carried out without any substantial opposition.
This claim is based on such carelessness, waste, inactivity, and violation of fiduciary duty and loyalty.
The MLM firms Agel and Longaberger failed as a result of JRJR33’s bankruptcy.
According to the proposed settlement, the Trustee would get $3.2 million. After receiving the Settlement Payment, the Trustee will ‘allocate the Settlement Payment equitably among the bankruptcy estates.’
Any future related action against the executive defendants is likewise barred by the settlement.
Attorneys for Michael Bishop, William H. Randall, John P. Rochon (right), Donna Rochon, John P. Rochon Jr., and Heidi Rochon Hafer approved the proposed settlement.
JGB Collateral LLC, JGB Capital LP, JGB (Cayman) Port Ellen LTD, and JGB Partners LP are all included in the settlement.
On October 15th, the court approved the proposed settlement.