ChinaCast Files for Chapter 11 to Pursue Embezzlement Claims

ChinaCast Education Corp. took shelter in New York bankruptcy court from investors holding a $65.8 million judgment over the alleged corporate looting that brought down the now-defunct e-learning company.

Wednesday’s chapter 11 filing will allow ChinaCast to continue pursuing its former executives for alleged embezzlement and securities fraud while shielding it from a pending investor class-action lawsuit, Chief Financial Officer…

Source: www.wsj.com www.wsj.com