Slarskey LLC Obtains Dismissal of Counterclaims and Third-Party Claims On Behalf of Investment Fund Clients
On July 1, 2024, Slarskey LLC successfully sought dismissal of all counterclaims and
third-party claims against its clients, Pursuit Credit Special Opportunity Fund, L.P., and its principals and limited partners, filed by Defendants KrunchCash LLC and KC PCRD Fund LLC.
Starting in 2015, Pursuit invested more than ten million dollars with KrunchCash and KC PCRD Fund in connection with the companies’ purchases of pharmaceutical receivables and personal injury claims held by several law firms. While Pursuit’s investments initially appeared to perform well, by early-2019, they stalled, and Pursuit subsequently learned that KrunchCash and KC PCRD, and their manager-owner, Jeff Hackman, had engaged in various financial improprieties, including fiduciary malfeasance and fraud, which significantly impaired Pursuit’s interests in the advances. As a result, Pursuit initiated litigation in New York Supreme Court to recoup the millions of dollars it was owed.
Notwithstanding KrunchCash, KC PCRD, and Hackman’s misconduct and financial obligations to Pursuit, they subsequently asserted multiple counterclaims and third-party claims against Pursuit and its principals and limited partners, respectively, including for breach of contract, tortious interference, and fraud.
Slarskey LLC moved to dismiss KrunchCash and KC PCRD’s claims, which were legally meritless, and the Trial Court agreed. On July 1, 2024, during oral argument on Pursuit’s motion to dismiss, the Trial Court adopted the Firm’s arguments and dismissed all counterclaims and third-party claims from the bench on various substantive and procedural grounds. Notably, after briefly discussing each of KrunchCash and KC PCRD’s claims and several reasons for their dismissal, the Court specifically referred the parties to the Firm’s “briefs which . . . more thoroughly go through all the evidence and the law” and “for all of those reasons” held that the “counterclaims do not state viable causes of action and are dismissed.” Pursuit can now move forward with the remainder of discovery on its own claims against the Defendants.
Slarskey LLC attorneys Renee Bea, Evan Fried, Ricky Weingarten, and Kimberly Grinberg represent Pursuit and its principals and limited partners. Click here to read the transcript of oral argument, including the Trial Court’s oral decision on the motion.