Modern VideoFilm Trial: Appeals Court Denies Medley Capitals Motion To Stay $100 Million Fraud Suit
The California Court of Appeal has denied an emergency motion by Medley Capital to stay the trial of a $100 million lawsuit filed by Moshe Barkat, founder of Modern VideoFilm, who claims he lost his company due to fraud.
Once an industry leader, Modern VideoFilm provided postproduction and distribution services to the film and TV industry for more than 33 years. But Barkat lost control of the company in 2014 to Medley Capital, a billion-dollar investment fund that had loaned the company $50 million in 2012. When the company allegedly defaulted on the loan, Medley brought in the Deloitte Corporate Restructuring Group to manage it, ousted Barkat and sold the company. Barcat then filed suit for fraud and breach of fiduciary duty.
Superior Court Judge Daniel Murphy recently denied Medleys motions for summary judgment, ruling that there are enough triable issues to proceed to trial, which is set for June 12. Medley asked the appellate court to reverse Murphys ruling, but a three-judge panel denied the petition in two short sentences: “The court has read and considered the petition for writ of mandate on May 7, 2018. The petition is denied.”