Jetcraft Corp., FK Group Wins Dismissal of Fraud and Other Claims

King & Spalding represents Jetcraft Corporation, FK Group Ltd. and multiple other related defendants in litigation brought by the chapter 7 trustee (“Trustee”) of Zetta Jet USA, Inc. and Zetta Jet PTE Ltd. (a Singapore Corporation) (“Zetta Jet”), alleging fraud, conspiracy, aiding and abetting breach of fiduciary duty, fraudulent transfer, turnover, unjust enrichment and other claims. The case is pending in the United States Bankruptcy Court for the Central District of California, Los Angeles Division. The lawsuit arises from the financial failure of Zetta Jet, a former luxury aircraft charter business operating out of Singapore.  Jetcraft and other defendants are alleged to have sold Zetta Jet overpriced aircraft that it could not afford.  Jetcraft and the other defendants were successful in obtaining a dismissal of nearly all the claims in 2020.  The Bankruptcy Court granted leave to amend the complaint, however, and the litigation remains ongoing.