Recently amended Federal Rule of Bankruptcy Procedure 2019 that requires a verified statement making certain detailed disclosures must be filed by every group or committee that consists of or represents, and every entity (including lawyers) that represents multiple creditors or equity security holders that are (i) acting in concert to advance their common interests, and (ii) not composed entirely of affiliates or insiders of one another. This includes “ad hoc committees.”
Rule 2019 does not require the disclosure of the price paid for a disclosable economic interest, but nothing in the rule precludes either the discovery of that information or its disclosure when ordered by the court.
If the court finds a failure to comply, it may (i) refuse to permit that group to be heard in the case, (ii) invalidate any “authority, acceptance, rejection, or objection given, procured or received” by the group, or (iii) grant other appropriate relief.