Seiden Law Scores Major Trial Victory: Court Rejects $20M Damages Claim in Federal Bankruptcy Court

Seiden Law secured a significant trial victory in the U.S. Bankruptcy Court for the District of Connecticut (Bridgeport) in the bankruptcy case of Valuex, which was placed into involuntary bankruptcy by several petitioning creditors. At trial, Valuex was seeking over $20 million in damages resulting from the petitioners’ allegedly improper bankruptcy petition.

In a post-trial order entered February 19, 2026, following a full-day bench trial on November 19, 2025, the Court rejected Valuex’s more than $20 million damages claim, denied any compensatory or punitive damages, and denied Valuex’s supplemental requests for attorneys’ fees—rejecting Valuex’s bid to shift trial-related fees and costs.

Seiden Law was brought in specifically for the damages phase of the proceedings to represent certain petitioning creditors. Counsel Thomas Mott served as first chair at trial, supported by law clerk Isaac Bills and paralegal Lily Dempsey, with paralegal Samantha Schiavi providing key support. The team also received guidance from Robert Seiden, Amiad Kushner, and Michael Stolper (who provided in-court advisory support).