Court appoints receiver for Cartridge World North America
December 9, 2024
Liquidation aims to settle $4.3 million (€4 million) unpaid class action judgement.
Cartridge World North America (CWNA), the beleaguered franchise network, is under court-ordered receivership after failing to comply with a $4.3 million (€4 million) judgment stemming from a 2021 class-action lawsuit.
The decision, issued by the United States District Court for the Northern District of Illinois, empowers Gregg Szilagyi to recover assets on behalf of the plaintiff class.
The legal order underscores a litany of non-compliance by CWNA, including failure to respond to citations to discover assets and address financial liabilities tied to franchise operations. Szilagyi, who has extensive experience in federal equity receiverships, has been tasked with tracing and liquidating CWNA’s assets to resolve the outstanding judgement.
Key elements of the receivership mandate include seizing control of CWNA’s accounts, property, and business records. Szilagyi is authorised to investigate financial transfers and liabilities, issue subpoenas, and pursue claims to recover funds. The court order further allows the Receiver to engage professional services, including legal counsel, to facilitate the recovery process.
Significant attention will focus on CWNA’s financial dealings since 2016, including royalty payments owed by franchisees and property transactions. The Receiver will also investigate allegations of impropriety, with authority to challenge third-party claims on CWNA’s assets.
The judgment traces its origins to a 2016 civil action in Ohio, where plaintiffs successfully argued against CWNA for alleged contract breaches and damages.
Efforts to enforce the ruling have faced persistent obstacles, necessitating judicial intervention. With the Receiver in place, creditors await the recovery of funds that have remained elusive for over three years.
Categories : Around the Industry
Tags : Assets Cartridge World North America Compliance Litigation Receivership
