Quick Answer
Between October 23 and November 2, 2026, Lawrence R. Hirsh, Litigation Trustee of the Franchise Group Litigation Trust, filed about 50 lawsuits in the U.S. Bankruptcy Court for the District of Delaware under In re Franchise Group, Inc., Case No. 24-12480 (LSS). Most seek to recover preference payments made between August 5, 2024 and November 3, 2024 by Franchise Group or its affiliates, such as American Freight. If your company appears below, your answer is generally due 30 days after the summons was issued.
Sued in the Franchise Group bankruptcy? Call (856) 880-1010 today. Complaints were filed between October 23 and November 2, 2026, so many answers may be due as early as late November 2026. We offer a free, no-obligation consultation and can confirm your exact deadline the same day.
Is Your Company on the List?
The following adversary proceedings appear on the main Franchise Group docket as of November 4, 2026. Check for your company’s legal name, trade name or any affiliate.
| Adversary No. | Defendant | Filed |
| 26-50966 | Transform Holdco LLC | Oct 23, 2026 |
| 26-50967 | Porter County Treasurer | Oct 23, 2026 |
| 26-50968 | Simon Data, Inc. | Oct 23, 2026 |
| 26-50969 | RetailNext, Inc. | Oct 23, 2026 |
| 26-50970 | WIS International, Inc. | Oct 23, 2026 |
| 26-50971 | Mittera Group | Oct 23, 2026 |
| 26-50972 | Gibbons P.C. | Oct 23, 2026 |
| 26-50973 | Korber Supply Chain US, Inc. | Oct 23, 2026 |
| 26-50982 | Tinuiti, Inc. | Oct 27, 2026 |
| 26-50983 | Paxton Furniture Industries LLC | Oct 27, 2026 |
| 26-50984 | Assurant Inc. | Oct 27, 2026 |
| 26-50985 | George H Pastor & Sons, Inc. | Oct 27, 2026 |
| 26-50986 | Delta T, LLC, dba Big Ass Fans | Oct 27, 2026 |
| 26-50987 | Palladio US, LLC | Oct 27, 2026 |
| 26-50988 | Marcone Appliance Parts Co. | Oct 27, 2026 |
| 26-50989 | Baldwin Development Group LLC | Oct 27, 2026 |
| 26-50990 | Granite Telecommunications, LLC | Oct 27, 2026 |
| 26-50991 | Algolia Inc. | Oct 27, 2026 |
| 26-50992 | Meta Platforms, Inc. | Oct 27, 2026 |
| 26-50993 | RTS Elytus, LLC | Oct 27, 2026 |
| 26-50994 | SPS Commerce, Inc. | Oct 27, 2026 |
| 26-50996 | CorVel Corporation | Oct 27, 2026 |
| 26-50997 | Ducera Partners LLC | Oct 27, 2026 |
| 26-50998 | Elevated Employee Engagement | Oct 27, 2026 |
| 26-50999 | Empyrean Benefit Solutions, Inc. | Oct 27, 2026 |
| 26-51000 | Ernst & Young LLP | Oct 28, 2026 |
| 26-51001 | Gordon Rees Scully Mansukhani LLP | Oct 28, 2026 |
| 26-51002 | Evercore LP | Oct 28, 2026 |
| 26-51003 | Jazwares, LLC | Oct 28, 2026 |
| 26-51004 | Lazard Group LLC | Oct 28, 2026 |
| 26-51005 | Petrillo Klein & Boxer LLP | Oct 28, 2026 |
| 26-51006 | Stealth Partner Group LLC | Oct 28, 2026 |
| 26-51007 | PSG BXN Purchaser, Inc. | Oct 28, 2026 |
| 26-51008 | Delgado Tarango O’Neill LLP | Oct 28, 2026 |
| 26-51009 | Adlucent | Oct 28, 2026 |
| 26-51010 | GCG Risk Management Consultants | Oct 29, 2026 |
| 26-51011 | Fortiva Funding LLC | Oct 29, 2026 |
| 26-51012 | Matrix Absence Management, Inc. | Oct 29, 2026 |
| 26-51013 | Verizon Wireless | Oct 29, 2026 |
| 26-51014 | M3 Advisory Partners, LP | Oct 29, 2026 |
| 26-51016 | Jefferies LLC | Oct 30, 2026 |
| 26-51017 | Willkie Farr & Gallagher LLP | Oct 30, 2026 |
| 26-51019 | Alpha Solutions USA LLC | Oct 30, 2026 |
| 26-51023 | Anthem Blue Cross and Blue Shield | Oct 30, 2026 |
| 26-51027 | ENA Solution Inc. | Oct 30, 2026 |
| 26-51037 | Vietnam Hang Lam Furniture Limited | Oct 30, 2026 |
| 26-51048 | Surest/UnitedHealthcare Inc. | Oct 30, 2026 |
| 26-51116 | PCS Atlas Holdings LLC; PCS-Atlas Co-Invest, L.P. | Nov 2, 2026 |
| 26-51117 | Quadre Investments, L.P.; Matthew Q. Giffuni | Nov 2, 2026 |
This list is taken from the public court docket and may not include every case. We will update it as new filings appear.
The Franchise Group Case in Brief
Franchise Group, Inc., the former owner of The Vitamin Shoppe, Pet Supplies Plus, Buddy’s Home Furnishings and American Freight, filed Chapter 11 in Delaware on November 3, 2024. American Freight, its furniture and appliance chain, was shut down during the bankruptcy. The plan was confirmed on June 2, 2025 and became effective on June 6, 2025, creating the Franchise Group Litigation Trust with Lawrence R. Hirsh as Litigation Trustee.
The case is before Judge Laurie Selber Silverstein. Most complaints were filed by Raines Feldman Littrell LLP.
Three Types of Claims in This Wave
Preference claims. Most complaints seek payments made in the 90-day preference period, August 5 through November 3, 2024, under 11 U.S.C. §§ 547 and 550.
Combined preference and fraudulent transfer claims. A few complaints, including those against some professional firms, add fraudulent transfer claims under § 548.
Fraudulent transfer claims against investors. The two complaints filed on November 2, 2026 seek to recover alleged fraudulent transfers from investment entities and an individual.
Nearly every complaint also asks the court to disallow the defendant’s claims against the Debtors under § 502(d) and (j) until the defendant pays.
Why the Demand Is Not the Final Number
The complaints say the trustee reviewed the Debtors’ records and known defenses, then subtracted a “New Value Credit” to reach the “Adjusted Transfers” amount demanded. In at least one complaint, that credit was $0.00. The credit reflects only the plaintiff’s own view of one defense.
Vendors may still have defenses the plaintiff did not credit, including:
- Subsequent new value based on the vendor’s own records, which may differ from the Debtors’ books
- Ordinary course of business for payments made on normal terms
- Contemporaneous exchange for prepaid or same-time transactions
- Challenges to which entity made the payment and whether it was the debtor’s property
- More than 15 years in bankruptcy law. Jenny R. Kasen is Board Certified in Consumer Bankruptcy Law by the American Board of Certification and a multiple-time New Jersey Super Lawyers Rising Star.
Professional Firms and Service Providers
This wave stands out for the number of professional and service firms named, including law firms, investment banks, accounting firms and restructuring advisors, along with software, data, marketing, benefits and telecommunications providers. Service providers have the same defenses as product vendors. Services performed after a payment can count as new value, and recurring retainer or subscription payments can support an ordinary course defense.
What to Do If You Are on the List
- Find your summons and note the date it was issued.
- Review Exhibit A to see which payments and which Franchise Group entity are involved.
- Preserve contracts, invoices, payment records and communications from mid-2024 through November 2024.
- Contact a Delaware-admitted preference defense attorney before responding, paying or signing anything.
Frequently Asked Questions
How do I know if my company was sued in the Franchise Group bankruptcy?
Check the list above, your mail for a summons and complaint, and any demand letter sent in 2026 by the Litigation Trustee’s counsel.
Why are law firms and investment banks being sued?
Preference law applies to any creditor paid in the 90 days before bankruptcy, including professional firms. Some of these complaints also allege fraudulent transfers.
What does “New Value Credit” in the complaint mean?
It is the trustee’s own estimate of one defense, subtracted from the payments listed on Exhibit A. It does not reflect every defense a vendor may have.
Will more Franchise Group lawsuits be filed?
Preference suits generally must be filed within two years after the bankruptcy filing, which here was November 3, 2024. That is why this wave was filed in late October and early November 2026. Vendors that signed tolling agreements could still face later suits.
Our Results: 79 Preference and Fraudulent Transfer Matters Settled
These are actual preference and fraudulent transfer claims we have resolved for defendants. On average, our clients paid 7.6 cents for every dollar demanded.
| Summary | |
| Matters settled | 79 |
| Total claims asserted | $13,968,865.93 |
| Total settlements paid | $1,055,323.52 |
| Total saved for clients | $12,913,542.41 |
| Average settlement paid per dollar demanded | 7.6% |
| Average claim reduction | 92.4% |
Details of Settled Matters
| Claim Amount | Settled For | Percentage | Bankruptcy Case | Industry |
| $2,728,910.00 | $8,000.00 | <1% | Purekana, LLC | Retail |
| $1,702,988.87 | $1,000.00 | <1% | Rite Aid Corporation | Retail |
| $1,018,925.76 | $5,000.00 | <1% | Bed Bath & Beyond, Inc. | Retail |
| $678,363.68 | $28,000.00 | 4% | Bed Bath & Beyond, Inc. | Retail |
| $440,690.49 | $53,000.00 | 12% | Rite Aid Corporation | Retail |
| $374,905.00 | $7,500.00 | 2% | Rite Aid Corporation | Retail |
| $362,952.00 | $3,000.00 | <1% | Virgin Orbit, LLC | Aerospace |
| $337,955.09 | $2,500.00 | <1% | Yellow Corporation | Transportation |
| $327,217.63 | $40,000.00 | 12% | Deb Stores Holding LLC | Retail |
| $295,887.08 | $37,000.00 | 13% | NSC Wholesale Holdings, LLC | Retail |
| $292,633.33 | $51,979.00 | 18% | AB Technologies LLC | Tech |
| $263,391.72 | $130,000.00 | 49% | Bed Bath & Beyond, Inc. | Retail |
| $248,766.84 | $10,000.00 | 4% | Deb Stores Holding LLC | Retail |
| $247,673.19 | $40,000.00 | 16% | Hollister Construction Services, LLC | Construction |
| $230,000.00 | $6,000.00 | 3% | Bed Bath & Beyond, Inc. | Retail |
| $220,312.50 | $90,000.00 | 41% | Mallinckrodt PLC | Pharmaceutical |
| $216,588.19 | $20,000.00 | 9% | Medley Health, Inc. et al. | Healthcare |
| $212,159.37 | $1,500.00 | <1% | Rite Aid Corporation | Retail |
| $206,718.28 | $10,000.00 | 5% | Tritek International Inc. | Food |
| $187,704.38 | $15,000.00 | 8% | Rite Aid Corporation | Retail |
| $181,349.11 | $28,000.00 | 15% | Rite Aid Corporation | Retail |
| $163,198.61 | $77,500.00 | 47% | Pipeline Foods, LLC | Agriculture |
| $159,073.89 | $11,000.00 | 7% | Mitchell Gold Co. | Retail |
| $149,371.05 | $2,500.00 | 2% | Williamston Hospital Corporation | Healthcare |
| $126,788.36 | $2,700.00 | 2% | J&M Sales, Inc. | Retail |
| $121,313.87 | $5,000.00 | 4% | Hollister Construction Services, LLC | Construction |
| $116,955.00 | $30,000.00 | 26% | J&M Sales, Inc. | Retail |
| $116,696.21 | $20,000.00 | 17% | JC USA, Inc. | Retail |
| $112,930.65 | $2,500.00 | 2% | Rite Aid Corporation | Retail |
| $112,806.39 | $13,000.00 | 12% | Rite Aid Corporation | Retail |
| $106,907.97 | $3,000.00 | 3% | Taronis Fuels, Inc. | Fuel |
| $105,063.48 | $6,000.00 | 6% | The Mitchell Gold Co., LLC | Retail |
| $95,578.12 | $17,000.00 | 18% | Charming Charlie, LLC | Retail |
| $90,768.30 | $5,000.00 | 6% | Hollister Construction Services, LLC | Construction |
| $87,381.00 | $22,500.00 | 26% | AB Technologies LLC | Tech |
| $85,149.74 | $1,500.00 | 2% | Taronis Fuels, Inc. | Fuel |
| $74,724.89 | $13,000.00 | 17% | Rite Aid Corporation | Retail |
| $64,040.58 | $2,000.00 | 3% | New England Motor Freight, Inc. | Trucking |
| $61,796.34 | $6,000.00 | 10% | AB Technologies LLC | Tech |
| $59,562.90 | $7,500.00 | 13% | ProAir Holdo, LLC | HVAC |
| $59,072.53 | $25,000.00 | 42% | Bed Bath & Beyond, Inc. | Retail |
| $56,607.93 | $26,000.00 | 46% | Direct Buy/Z Gallerie | Retail |
| $52,701.19 | $20,000.00 | 38% | Kline Construction Co. | Construction |
| $49,176.99 | $1,600.00 | 3% | Yellow Corporation | Transportation |
| $47,690.00 | $1,800.00 | 4% | Rite Aid Corporation | Retail |
| $44,324.00 | $3,500.00 | 8% | Samuels Jewelers, Inc. | Retail |
| $44,230.16 | $3,000.00 | 7% | CalPlant I, LLC | Construction |
| $40,477.04 | $1,500.00 | 4% | Erus Builders, Inc. | Construction |
| $40,368.07 | $1,000.00 | 2% | Rite Aid Corporation | Retail |
| $39,015.00 | $5,000.00 | 13% | Hollister Construction Services, LLC | Construction |
| $38,827.66 | $3,000.00 | 8% | Immune Pharmaceuticals, Inc. | Pharmaceutical |
| $34,467.70 | $2,000.00 | 6% | Hygea Health Holdings Inc. | Healthcare |
| $34,271.12 | $2,000.00 | 6% | Clio Holdings, LLC | Stone |
| $33,732.54 | $7,500.00 | 22% | Exide Holdings, Inc. | Battery |
| $32,284.50 | $2,000.00 | 6% | Kranos Corporation | Retail |
| $31,690.00 | $3,000.00 | 9% | Clio Holdings, LLC | Stone |
| $31,318.83 | $7,500.00 | 24% | Port Neches Fuels, LLC | Construction |
| $30,109.87 | $6,500.00 | 22% | Hygea Health Holdings, LLC | Healthcare |
| $29,310.80 | $14,655.40 | 50% | J&M Sales, Inc. | Retail |
| $28,676.69 | $7,000.00 | 24% | Pipeline Foods, LLC | Agriculture |
| $27,525.58 | $4,000.00 | 15% | Art Supply Enterprises, Inc. | Retail |
| $27,314.77 | $3,000.00 | 11% | DirectBuy Home Improvement, Inc. | Retail |
| $27,069.90 | $4,000.00 | 15% | Beef International, Inc. | Food |
| $26,258.68 | $1,000.00 | 4% | DirectBuy Home Improvement, Inc. | Retail |
| $26,152.17 | $4,000.00 | 15% | CalPlant I, LLC | Manufacturing |
| $23,111.40 | $10,000.00 | 43% | Williams Industrial Services Group, Inc. | Construction |
| $22,679.50 | $1,000.00 | 4% | DirectBuy Home Improvement, Inc. | Retail |
| $22,150.24 | $11,075.12 | 50% | J&M Sales, Inc. | Retail |
| $21,828.00 | $10,914.00 | 50% | J&M Sales, Inc. | Retail |
| $21,698.87 | $6,500.00 | 30% | NSC Wholesale Holdings, LLC | Retail |
| $21,651.49 | $5,000.00 | 23% | True Religion Apparel, Inc. | Retail |
| $18,909.75 | $2,000.00 | 11% | DirectBuy Home Improvement, Inc. | Retail |
| $17,320.88 | $3,500.00 | 20% | BSI Operating, LLC | Oil and Gas |
| $16,160.00 | $1,500.00 | 9% | Patriot National, Inc. | Insurance |
| $14,800.62 | $1,600.00 | 11% | Hygea Health Holdings, LLC | Healthcare |
| $14,094.80 | $2,000.00 | 14% | Patriot National, Inc. | Insurance |
| $13,667.70 | $3,000.00 | 22% | Beef International, Inc. | Food |
| $12,919.10 | $1,500.00 | 12% | DTech Liquidating, Inc. | Healthcare |
| $9,000.00 | $1,000.00 | 11% | CalPlant I, LLC | Manufacturing |
Prior results do not guarantee a similar outcome. Every case depends on its own facts.
What Happens When You Call
- Send us your summons, complaint and Exhibit A, or simply call and we will tell you what to send.
- We confirm your deadline and, if needed, contact plaintiff’s counsel about an extension so you are protected.
- We review your defenses and give you a clear plan and a realistic view of the outcome before you commit to anything.
The consultation is free and there is no obligation. Call (856) 880-1010.
Talk to a Franchise Group Preference Defense Attorney
Kasen Law Group has resolved 79 preference and fraudulent transfer matters with an average claim reduction of 92.4%, across retail, technology, healthcare, logistics and other industries. We represent defendants in the Delaware Bankruptcy Court.
Call (856) 880-1010 or email Hello@BankruptcyAttorney.co for a free consultation. Learn more about our preference defense and fraudulent transfer defense services.
Bankruptcy Attorney Co. is a trade name of Kasen Law Group, P.C. This article is general information about bankruptcy law and is not legal advice. Prior results do not guarantee a similar outcome. Jenny R. Kasen is admitted to practice before the United States Bankruptcy Courts for the District of Delaware, the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of Florida.