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Personal Injury Lawsuits Could be in Jeopardy as a result of Maclaren USA’s Bankruptcy

Written by Ankin Law Office

Nearly two years after Maclaren USA recalled its defective stroller due to finger amputations, the company is now failing to comply with document requests in connection with its Chapter 7 bankruptcy and it could put the personal injury lawsuits it is facing in jeopardy.

According to this article, Maclaren USA, the stroller manufacturer, quietly filed for bankruptcy last December, but the company’s bankruptcy wasn’t made public until court documents were uncovered by Greg Allen at the Daddy Types blog.  Now, nearly two years after it recalled the defective strollers that were responsible for the amputations of 20 children’s fingers, the company is withholding information from the independent trustee who has been appointed to investigate its bankruptcy case.

In addition to failing to respond to document requests submitted to its accountants, Maclaren USA has also remained quiet regarding the seven pending personal injury lawsuits that have been brought by families of the children’s who lost their fingers.

Since Maclaren USA filed for Chapter 7 bankruptcy, the company is requesting a total corporate dissolution rather than a corporate restructuring, which would put an end to all pending lawsuits.

In this article, Maclaren USA’s former design chief David Netto, who is owed $1.1 million by the company, suggests that the company is withholding information because the bankruptcy is a fraudulent attempt by a an otherwise solvent company to incur fake debt so that it can write off its liability in the amputation personal injury lawsuits. Despite the fact that Maclaren USA is technically bankrupt, Maclaren strollers and other products are still being distributed and sold around the world, including in the United States.

The bankruptcy code permits trustees to investigate cases of potential fraud, but the investigations can only be effective at weeding out sham bankruptcy filings if the debtor provides the requested information, which Maclaren USA has failed to do.

According to court documents filed in connection with the company’s bankruptcy, the Consumer Product Safety Commission is also investigating Maclaren USA.

At Ankin Law Offices, LLC, our Chicago personal injury attorneys are committed to protecting the victims of personal injury accidents and defective products.  If your child has been injured by a Maclaren product or other children’s product, do not hesitate to contact the knowledgeable Chicago product liability attorneys at Ankin Law Offices, LLC.

Categories: Product Liability