4th Circuit Upholds $31M In Sanctions, Default Judgment For Discovery Misconduct

( February 3, 2025, 8:58 AM EST) -- RICHMOND, Va. — Citing “egregious” discovery conduct and a “blatant disregard for the judicial process” exhibited by the defendants in a bankruptcy proceeding, a Fourth Circuit U.S. Court of Appeals panel found that a bankruptcy court “exhibited extraordinary patience” and was justified in assessing discovery sanctions of more than $31 million against the defendants and in disposing of the matter via entry of default judgment....