Brio Systems, Inc. – Preference and Fraudulent Transfer Defense Lawyer

On May 21, 2025, Plaintiff Alfred T. Giuliano, as the chapter 7 trustee for the estate of Brio Systems, Inc. began filing complaints seeking to avoid payments made during the 90 day period prior to the bankruptcy filing, as preferential under Section 547 and/or fraudulent under Section 548 of the Bankruptcy Code.

The bankruptcy cases and these adversary actions are before Judge J. Kate Stickles.

Common Defenses in Preference Actions

The United States Bankruptcy Code provides many affirmative defenses to preference actions, contained within Section 547(c). For example, the most common defenses that may be available to a Defendant under Section 547(c) may include:

• the transfer was a contemporaneous exchange for new value given to the debtor (i.e., the debtor received something of value in exchange for the transfer); 11 U.S.C. §547(c)(1);
• after such transfer, Defendant gave new value to or for the benefit of the debtor (i.e., the Defendant extended additional credit to the Debtor after receiving the transfer) 11 U.S.C. §547(c)(4); or
• the transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the recipient (i.e., Defendant made the transfer under ordinary business terms). 11 U.S.C. §547(c)(2).

For more information, see our page on Preference Defense Litigation: http://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/

The following Adversary Proceedings were filed in the bankruptcy of Brio Systems, Inc., 23-10670-JKS on May 21, 2025:

25-50952-JKS Giuliano v. Amazon Web Services
25-50953-JKS Giuliano v. Johnson Controls
25-50954-JKS Giuliano v. Justworks Collection
25-50955-JKS Giuliano v. Maloley
25-50956-JKS Giuliano v. MBL Solutions LLC
25-50957-JKS Giuliano v. Nilliam Logistics Fulfillment
25-50958-JKS Giuliano v. Rubin