Impath

Client

Impath, Inc. was a publicly-held provider of cancer diagnostic testing service, cancer registry services, clinical trial services, and laboratory management software to the medical community. In July 2003, accounting irregularities were uncovered leading to legal action by the Securities & Exchange Commission and the US District Attorney for New York, The Company commenced a bankruptcy proceeding in September 2003. During the bankruptcy proceeding, all of the Company’s operating assets were sold. In March 2005, the Bankruptcy Court confirmed the 3rd Amended Plan of Liquidation which became effective July 2005 (the “Plan”). Anthony Schnelling of Bridge Associates was named as the Trustee in the Plan.

Challenge

The company’s operating assets had been liquidated in a series of sales that generated sufficient cash to satisfy allowed pre-petition claims and facilitate an initial distribution by the Trustee to shareholders of $2.55 per share. The Trustee is evaluating potential legal actions which are or may be available to the Trust to effect recovery of damages to the Company and shareholders in relation to the accounting fraud. The Trustee is also seeking recovery of approximately $21 million in income tax refunds related amended tax returns for several years arising from the accounting fraud activity.

Solution

Providing analytical support services to the Trustee and his legal professionals for development and prosecution of the case. Managing activities related to tax review and recovery of filed tax refunds of $21 million.