PHT Prevails in Ostreicher Litigation

lpiweb17 Other News

The PHT won a victory in its litigation with Shea Ostreicher over the proceeds of policy 77250, a $5 million policy that matured last year.

On November 8, the bankruptcy court found that Ostreicher was in contempt of court by filing and continuing to prosecute his suit in New York. The court ordered Ostreicher to do the following things:

· Dismiss his lawsuit in New York with prejudice.

· Pay the PHT $775/day until he files a motion to dismiss the New York case.

· Pay the PHT an additional $250/day beginning ten days after he receives notice of the order and ending on the day he moves to dismiss his case.

· Pay the PHT $371,300.80 as damages for his contempt of court.

The court entered a formal order of contempt on November 13. While this is a significant victory, it does not resolve Ostreicher’s case in New York. Ostreicher must still comply with the bankruptcy court’s order. The PHT will continue to aggressively defend this matter.