Case docket
KServicing Wind Down Corp. v. Frohwein — Bankr. D. Del., Adv. Pro. No. 25-52372
KServicing Wind Down Corp. v. Frohwein — 2 court filings in the archive, mostly from U.S. Bankruptcy Court for the District of Delaware (Chapter 11, Case No. 22-10951 (CTG), Adversary Proceeding No. 25-52372), filed between October 16, 2025 and April 9, 2026.
Case facts
| Caption | KServicing Wind Down Corp. v. Frohwein |
|---|---|
| Court | U.S. Bankruptcy Court for the District of Delaware (Chapter 11, Case No. 22-10951 (CTG), Adversary Proceeding No. 25-52372) (1 filing); U.S. Bankruptcy Court for the District of Delaware, Adversary Proceeding No. 25-52372 (CTG) (1 filing) |
| Docket number | 25-52372 |
| Filings | 2 public filings |
| Filed | 2025-10-16 – 2026-04-09 |
| Document types | exhibit (1) |
Case summary
KServicing Wind Down Corp., formerly Kabbage, Inc., filed this adversary complaint on October 16, 2025 in the U.S. Bankruptcy Court for the District of Delaware, in Chapter 11 Case No. 22-10951 (CTG), Adversary Proceeding No. 25-52372. It sues five former officers, six former directors and a group of former shareholders and funds it calls the Fraudulent Transfer Beneficiaries, and pleads seven counts including breach of fiduciary duty, recovery of a fraudulent transfer under 11 U.S.C. § 550(a), disallowance of claims under §§ 502(d) and 502(e), and equitable subordination under § 510(c). A jury trial is demanded. The second filing on this page is Exhibit 31 to a later filing in the proceeding, a Slack message report filed April 9, 2026. The claims are allegations; no ruling appears in the filings on this page.
Case at a glance
| Parties | Plaintiff: KServicing Wind Down Corp. (f/k/a Kabbage, Inc.). Defendants, as the complaint groups them: former officers Robert Frohwein, Kathryn Petralia, Leslie Scott Askins, Spencer Robinson and Sam Taussig; former directors Don Butler, Jonathan Ebinger, Alex Chulack, Laurie Hodrick, Bryan Stolle and Ioannis Pipilis; and former shareholders and funds including Thomvest Ventures Ltd., BlueRun Ventures IV, LP, Reverence Capital Partners funds, MDV IX, L.P., SoftBank Vision Fund (AIV M2) L.P. and The Frohwein Family 2015 Trust |
|---|---|
| Court and docket | U.S. Bankruptcy Court for the District of Delaware, Chapter 11 Case No. 22-10951 (CTG) (jointly administered), Adversary Proceeding No. 25-52372 (CTG). The complaint is Doc 1 filed 10/16/25; the exhibit is Doc 97-4 filed 04/09/26 |
| Program | Paycheck Protection Program (PPP) |
| Claims | Seven counts: breach of the fiduciary duty of care and breach of the fiduciary duties of loyalty and good faith against the officers; breach of fiduciary duties of loyalty and good faith against the directors; recovery of the fraudulent transfer under 11 U.S.C. § 550(a) against the Fraudulent Transfer Beneficiaries; disallowance of claims under §§ 502(e) and 502(d); and equitable subordination under § 510(c) |
| Disposition or status | No ruling appears in the filings on this page. The later filing is an exhibit filed April 9, 2026 in the same adversary proceeding |
| Status checked | 2026-09-23 · against DOJ press releases through 2026-09-22; court docket not yet read |
What does the complaint allege?
That Kabbage, a non-bank financial services company, became one of the nation's largest PPP lenders and, in the plaintiff's words, exploited the program to receive loan processing fees by knowingly or recklessly approving tens of thousands of fraudulent or otherwise ineligible loan applications. It states that Kabbage received more than $217 million in fees for its role as a PPP lender during the first round of the program, and alleges a transfer of more than $730 million to Amex Kabbage.
What relief does the plaintiff seek?
Judgment against the directors and officers for all damages sustained, recovery of the fraudulent transfer under 11 U.S.C. § 550 to the extent of the benefit received by each defendant, disgorgement of profits obtained through breaches of the duty of loyalty, disallowance of the defendants' claims against the debtors including indemnification claims, and equitable subordination. Kabbage demands a trial by jury for all issues so triable.
What is Exhibit 31?
A short message report of a single Slack conversation named "ppp-fraud," recorded as 41 messages among 21 participants on July 16, 2020, filed on April 9, 2026 as Doc 97-4 in the adversary proceeding.
Summary written from the documents on this page; every sentence is sourced.
Filings
2 public filings from this case, in filing-date order.
Court, dates and docket numbers are as recorded on the filings.