Founder, directors of school may be sued by bankruptcy trustee

The founder and several other members of the board of a private school in New York may be sued by the school’s Chapter 7 bankruptcy trustee for breach of fiduciary duty and an accounting, a bankruptcy court has recently held. The Court rejected the directors’ claims that they were protected from liability by the “business judgment rule,” saying the application of the rule could be determined only after trial. The Science, Language, and Arts International School, an elementary school providing French and Mandarin language immersion education, was founded by defendant Jennifer Wilkin in 2013. It filed for bankruptcy in 2022. After interviewing the founder and board members, the bankruptcy...

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Founder, directors of school may be sued by bankruptcy trustee

Founder, directors of school may be sued by bankruptcy trustee