HotChalk, Inc. — Contract Dispute

McDermott Weaver Connelly Clifford LLP represents HotChalk, Inc. in litigation against the Lutheran Church-Missouri Synod, the Lutheran Church Extension Fund, Concordia University, and many other related entities.

Until early 2020, HotChalk was Concordia University’s long-time online program manager. Concordia and HotChalk jointly developed online graduate degree programs and shared the costs and revenues from that program. In early 2020, Concordia unexpectedly announced that it would close its doors forever and renege on its contractual obligations to HotChalk. HotChalk soon learned that Concordia’s corporate parent, the Lutheran Church-Missouri Synod, forced Concordia’s closure, in part, because of Concordia’s support of its LGBTQ students. And, shortly before the closure announcement, the Lutheran Church-Missouri Synod orchestrated a series of fraudulent transfers to related entities in order to benefit the Lutheran Church Extension Fund and other insiders at the expense of HotChalk and other non-insider creditors. HotChalk has survived two motions to dismiss and is now in the midst of discovery regarding its claims. HotChalk has also settled with certain defendants.