Yoo

Yoo v. Zeta Interactive (In re Blue Global, LLC)

Good Law
591 B.R. 433
United States Bankruptcy Court, Central District of CaliforniaSeptember 12, 2018Case No.: 2:17-bk-10900-ER; Adv. No.: 2:17-ap-01434-ERCalifornia7,192 words

Opinion

Lead Opinion

Robles, J.

On August 23, 2018, the Court conducted a hearing on the motion for summary judgment (the "Motion") filed by Defendant Zeta Interactive ("Zeta"). The Court took the matter under submission at the conclusion of the hearing. For the reasons set forth below, the Motion is granted and the Court will enter final judgment in Zeta's favor.

*437 I. Facts and Summary of Pleadings

In this preference action, the Chapter 7 Trustee (the "Trustee") seeks to avoid transfers totaling $601,723.52 made by the Debtor to Zeta during the ninety-day period prior to the date of the filing of the petition (the "Petition Date"). The Trustee further seeks disallowance of any claim asserted by Zeta, pursuant to § 502(d).

The Debtor is a failed Internet-based financial services business. Zeta provides marketing solutions to help brands acquire, grow, and retain customers. Zeta provided services to the Debtor between 2011 and 2016.

Zeta moves for summary judgment in its favor. For purposes of the § 547(c) preference defense, Zeta asserts that it conducts business within the affiliate-marketing industry. Zeta offers the testimony of Brian Benenhaley, whom it asserts is an expert in the affiliate…

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