Litigation Status Update (11-12-08)

The Trust no longer has any active litigation against the 13 original defendants shown below.  Each of these lawsuits has either been settled or dismissed.

National Warranty Status Update (04-23-07)

In addition to the litigation described below, the Plan Trustee has filed a proof of claim on behalf of WG in the insolvency proceeding of National Warranty Insurance Risk Retention Group ("National Warranty")currently pending in the Cayman Islands.  National Warranty was the administrator and insurer of Warranty Gold's extended vehicle service contracts ("VSCs").  WG's proof of claim will be adjudicated along with other similarly situated creditors of NWIG.

National Warranty is being liquidated in legal proceedings currently pending in the Cayman Islands. National Warranty was responsible for paying claims of Warranty Gold customers from monies deposited by Warranty Gold on behalf of its customers and potentially from other resources (including insurance proceeds).  National Warranty's insolvency has affected a reported one million consumers and numerous other extended service contract providers, such as Warranty Gold. 

Information regarding the National Warranty liquidation proceeding currently pending in the Grand Court of the Cayman Islands (Case Number 372 of 2003) may be found at www.nwig.com as maintained by the Joint Official Liquidators appointed in that proceeding.  Through the Plan Trustee and his counsel, Warranty Gold is represented as a member of the committee of major VSC providers established in National Warranty's liquidation proceedings. 

Initial Litigation Posture (2005):

Other than approximately $1,700,000 in an account located in Austin, Texas (which is subject to the allegedly administrative and/or secured claims of certain Warranty Gold creditors) and a currently undetermined amount of cash held in National Warranty's liquidation proceeding in the Cayman Islands to which Warranty Gold asserts a claim (which is subject to administrative claims of the Cayman liquidators and to competing claims of other National Warranty creditors), the major source of anticipated recovery for beneficiaries of the Warranty Gold Liquidation Trust (including all VSC holders) is through various lawsuits against third parties involved in the collapses of National Warranty and Warranty Gold.

On June 3, 2005, Warranty Gold, Ltd. filed suit against the following parties in Case No. A-05-CA412-SS in the United States District Court in Austin, Texas:

A copy of the Plaintiff's Original Complaint, which is the pleading that initiated this case, is available below.  In addition to the Plaintiff's Original Complaint, we will continue to update this website with copies of certain other important pleadings and documents.

This case has been assigned to Judge Sam Sparks.  The pleadings and other documents filed in this case are available for inspection at:

United States Courthouse
U. S. District Clerk's Office
200 West 8th St., Room 130
Austin, Texas 78701

The website of the Court, which contains a map to the courthouse, is found at http://www.txwd.uscourts.gov/gen_info/ausinfo.asp.  If you have access to the PACER system, http://www.txwd.uscourts.gov/pacer/default.asp, the pleadings and other documents filed in this case can be obtained online.

By virtue of his appointment in early October 2005, the Plan Trustee assumed responsibility for the pursuit of this action on behalf of the Liquidation Trust, essentially as a successor party-in-interest plaintiff.  As of October 26, 2005, all defendants sued by Warranty Gold had responded to the case, except for Rex Moats and Deloitte Cayman Islands.  Most of the defendants filed motions to dismiss the case. Warranty Gold recently filed responses to the motions to dismiss.  The Court has not ruled on the motions to dismiss.

The deadlines in this case will be governed by a Scheduling Order entered by the Court. When the Scheduling Order is entered, Warranty Gold will post a copy on this website.

Below are copies of selected pleadings, orders, agreements, media articles and/or other documents relevant to various causes of actions being pursued by the Warranty Gold Liquidation Trust.

• Original Complaint and Jury Demand (Dated 06/03/05)
• First Amended Complaint and Jury Demand (Dated 12/22/05)

In addition to previously existing litigation, the Liquidation Trust's assets include other rights and potential or actual causes of action including, without limitation:

1. claims associated with the pursuit of distributions from the NWIG liquidating estate;
   
2. claims, including for the avoidance of certain transfers, against the general and limited partners (i.e., the owners and managers) of Warranty Gold at the time of its bankruptcy;
   
3. claims, including for the avoidance of certain transfers, against Global Payments Direct, Inc., Warranty Gold's credit card processing agent; and
   
4. other claims arising under Chapter 5 of the Bankruptcy Code to avoid and recover preferential payments made shortly before Warranty Gold's bankruptcy.

The Plan Trustee recently began his review of these matters, and more information about them is available in the Warranty Gold Disclosure Statement and Liquidating Plan.  To the extent any of these claims are actually pursued by the Liquidation Trust, the Plan Trustee may additionally seek to equitably subordinate any claims for distribution that the defendants have asserted as alleged beneficiaries of the Liquidation Trust.