CPI Corp. trustee seeking authorization to hire legal team for lawsuit

By Kali Hays

New York, May 29 – CPI Corp.’s Chapter 7 trustee, Charles A. Stanziale Jr., is seeking approval to hire McCarter & English, LLP and Klehr Harrison Harvey Branzburg, LLP as legal counsel, according to separate Friday motions filed with the U.S. Bankruptcy Court for the District of Delaware.

If approved, the hiring of both firms will be made retroactive to March 2.

Both McCarter and Klehr Harrison have been representing Stanziale in regards to a lawsuit he filed at the end of April against CPI’s directors and officers and will continue to do so throughout the case.

As previously reported, Stanziale alleges in the lawsuit that the directors and officers breached their fiduciary duties by “facilitating and engaging in a pattern and practice of draining assets from the CPI entities.”

McCarter has agreed to receive a contingency fee as payment equal to 40% of 40% of the gross amount recovered by any settlement or judgement related to the lawsuit. Klehr Harrison will receive a contingency fee equal to 60% of 40% of any settlement amount, according to the motions.

A hearing to approve the hirings is set for July 15.

CPI, a St. Louis-based portrait studio operator, filed for bankruptcy on May 1, 2013. Its Chapter 7 case number is 13-11158.

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