TBA Law Blog


Posted by: Stacey Shrader Joslin on Sep 18, 2020

Two Nashville lawyers recently launched an effort to protect consumers who have yet-to-be used gift cards for retailers that file for bankruptcy, the Tennessean reports. Bankruptcy attorney Myles MacDonald with Sto Helit and consumer attorney Thomas Burt with Wolf Haldenstein Adler Freeman & Herz announced "Project Phoenix" and filed their first class proofs of claim in the bankruptcy cases of Lord & Taylor and Sur La Table Inc. Lord & Taylor has reported at least $35.5 million in unused gift cards while Sur La Table has reported about $17.5 million. When retailers file for bankruptcy, millions of dollars in unused gift cards are often stripped of their value, the pair argue. They are asking the bankruptcy court to certify card holders as a class that can make a claim against the assets of the companies. They are also pushing companies to give cardholders more notice to spend cards.