First Brands Judge Approves Examiner to Probe Fraud Allegations

A federal judge overseeing the insolvency case of First Brands Group approved the appointment of a corporate litigator to lead an investigation of the multi-billion dollar fraud claims that have dominated the auto-parts maker’s reorganization effort.

Martin De Luca, a partner in the law firm of Boies Schiller Flexner, has been asked by the US Trustee to put together a report on the allegations of mismanagement and fraud aimed at First Brands. US Bankruptcy Judge Christopher Lopez in Houston approved the move. De Luca will have a $7 million budget, under an order previously approved by the court. ...