Judge Beth Bloom has denied an appeal by Ira Kleiman over a lower court’s refusal to strike a new lawyer appointed for W&K, the company used by Kleiman to sue Dr. Craig Wright, by its majority owners.
The attorney, Paul Huck, was appointed by W&K’s owners Lynn Wright and Ramona Ang (on behalf of the Tulip Trust) in an attempt to re-take control of the company after Kleiman purported to illegally use it in order to sue Dr. Wright. Kleiman had alleged that Dr. Wright invented Bitcoin with the help of his late brother, but ultimately only managed to obtain a $143 million judgment for the benefit of W&K—the owners of which say Kleiman was never authorized to use the company in that way to begin with.
Kleiman unsuccessfully tried to get Judge Reinhart to strike Huck. In denying the motion, Judge Reinhart said that Kleiman was effectively seeking to get the court to issue a judgment concerning the ownership of W&K—a matter which is currently the subject of litigation filed by Lynn Wright and the Tulip Trust in the Florida State Court.
“W&K holds a valid final judgment against Defendant Craig Wright for $143,132,492.48, plus post-judgment interest,” reads the order, issued by Judge Bloom on Tuesday.
“The Court’s only role, at this point, is to assist W&K in collecting that judgment. The parties have placed the issue squarely before the state court to decide what percent of W&K’s assets will go to Ira Kleiman.”
“[Kleiman’s attorneys] argue that it will be ‘untenable’ for the Court to allow Huck to file motions and memoranda purportedly on behalf of W&K,” wrote Judge Bloom.
“However, those filings have not (yet) resulted in the ‘anarchy’ that Old Counsel predicts.”
With Judge Bloom denying Kleiman’s appeal, Huck will now stay on record as attorney for W&K alongside Freedman Normand Friedland and Boies Schiller Flexner, the attorneys Kleiman appointed for W&K in gearing up to sue Dr Wright.
Presumably any ‘anarchy’ that may arise as a result of this arrangement will be dealt with as necessary. Until then, Kleiman has to fend off claims he misappropriated W&K in two separate State Court actions—all the while trying to find a way to recover $143 million on behalf off a company he doesn’t own.
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