According to the two experts, the main task for a bankruptcy judge will be to determine the total amount of the company’s assets and the value of the outstanding claims against it.
“The basic problem … is this may be a case where the denominator is very large and the numerator is very small,” said Douglas Baird, professor and former dean of the University of Chicago Law School. “You can’t get blood from a stone.”
Cambridge Analytica, a Delaware limited liability company, is a private firm, and Baird cautioned that he had no knowledge of its finances. The firm would be required to submit information regarding its corporate structure and an assessment of its assets and liabilities when it files for bankruptcy.
Anthony Casey, also a bankruptcy expert at the University of Chicago Law School, said that he expected any pending cases against Cambridge Analytica to be stayed and the claims folded into the bankruptcy proceedings, where a judge would conduct a “mini-trial” to determine the value for pro rata distribution.
Read more at New York Law Journal