IN THE UNITED STATES BANKRUPTCY COURT

 FOR THE EASTERN DISTRICT OF VIRGINIA

Richmond Division

IN RE: )

 )

 HEALTH DIAGNOSTIC LABORATORY, ) Case No. 15-32919-KRH

INC., et al. ) Chapter 11

 ) (Jointly Administered)

Debtors. )

 )

 )

RICHARD ARROWSMITH AS LIQUIDATING )

TRUSTEE OF THE HDL LIQUIDATING TRUST )

 )

 Plaintiff, ) Adversary Proceeding No.

 ) 17-03097-KRH

v. )

 )

AMERICAN DIABETES ASSOCIATION, )

 )

 Defendant. )

 )

ANSWER OF DEFENDANT AMERICAN DIABETES ASSOCIATION TO COMPLAINT

TO AVOID AND RECOVER AVOIDABLE TRANSFERS AND FOR RELATED RELIEF

COMES NOW the defendant, the American Diabetes Association

(“ADA”), by and through counsel, and in answer to the Complaint

to Avoid and Recover Avoidable Transfers and for Related Relief

as filed by the plaintiff, Richard Arrowsmith as Liquidating

Trustee of the HDL Liquidating Trust (the “Trust”), states as

follows:

FIRST DEFENSE

The Trust’s Complaint fails to state a claim against ADA

upon which relief can be granted.

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 SECOND DEFENSE

As to each numbered paragraph of The Trust’s complaint, ADA

states as follows:

1. ADA admits the allegations as contained in paragraph 1

of the complaint.

2. ADA admits the allegations as contained in paragraph 2

of the complaint.

3. ADA admits the allegations as contained in paragraph 3

of the complaint.

4. ADA admits the allegations as contained in paragraph 4

of the complaint.

5. ADA admits the allegations as contained in paragraph 5

of the complaint.

6. ADA admits the allegations as contained in paragraph 6

of the complaint.

7. ADA admits the allegations as contained in paragraph 7

of the complaint.

8. ADA admits the allegations as contained in paragraph 8

of the complaint.

9. ADA admits the allegations as contained in paragraph 9

of the complaint.

10. ADA admits the allegations as contained in paragraph 10

of the complaint.

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11. ADA admits that the stated purpose of the complaint is

to recover monies from it, but denies that there are grounds for

such recovery, such allegations as being contained in paragraph

11 of the complaint.

12. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 12 of the complaint, and demands strict proof thereof.

13. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 13 of the complaint, and demands strict proof thereof. 

14. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 14 of the complaint, and demands strict proof thereof. 

15. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 15 of the complaint, and demands strict proof thereof.

16. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 16 of the complaint, and demands strict proof thereof.

17. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 17 of the complaint, and demands strict proof thereof.

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18. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 18 of the complaint, and demands strict proof thereof.

19. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 19 of the complaint, and demands strict proof thereof.

20. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 20 of the complaint, and demands strict proof thereof.

21. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 21 of the complaint, and demands strict proof thereof.

22. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 22 of the complaint, and demands strict proof thereof.

23. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 23 of the complaint, and demands strict proof thereof.

24. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 24 of the complaint, and demands strict proof thereof.

25. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 25 of the complaint, and demands strict proof thereof.

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26. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 26 as they relate to entities other than it, and

demands strict proof thereof. ADA denies the allegations as

contained in that paragraph as they relate to it.

27. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 27 as they relate to entities other than it, and

demands strict proof thereof. ADA denies the allegations as

contained in that paragraph as they relate to it.

28. Paragraph 28 of the complaint does not set forth

allegations to which a response is required. 

29. Paragraph 29 of the complaint does not set forth

allegations to which a response is required.

30. ADA denies the allegations as contained in paragraph 30

of the complaint.

31. ADA denies the allegations as contained in paragraph 31

of the complaint.

32. ADA denies the allegations as contained in paragraph 32

of the complaint.

33. ADA denies the allegations as contained in paragraph 33

of the complaint.

34. ADA denies the allegations as contained in paragraph 34

of the complaint.

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35. ADA denies the allegations as contained in paragraph 35

of the complaint.

36. ADA denies the allegations as contained in paragraph 36

of the complaint.

37. Paragraph 37 of the complaint does not set forth

allegations to which a response is required.

38. ADA denies the allegations as contained in paragraph 38

of the complaint.

39. ADA denies the allegations as contained in paragraph 39

of the complaint.

40. ADA denies the allegations as contained in paragraph 40

of the complaint.

41. ADA denies the allegations as contained in paragraph 41

of the complaint.

42. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 42 of the complaint, and demands strict proof thereof.

43. ADA denies the allegations as contained in paragraph 43

of the complaint.

44. ADA denies the allegations as contained in paragraph 44

of the complaint.

45. ADA denies the allegations as contained in paragraph 45

of the complaint.

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46. ADA denies the allegations as contained in paragraph 46

of the complaint.

47. ADA denies the allegations as contained in paragraph 47

of the complaint.

48. ADA denies the allegations as contained in paragraph 48

of the complaint.

49. ADA denies the allegations as contained in paragraph 49

of the complaint.

50. Paragraph 50 of the complaint does not set forth

allegations to which a response is required.

51. ADA denies the allegations as contained in paragraph 51

of the complaint.

52. ADA denies the allegations as contained in paragraph 52

of the complaint.

53. ADA denies the allegations as contained in paragraph 53

of the complaint.

54. ADA denies the allegations as contained in paragraph 54

of the complaint.

55. ADA denies the allegations as contained in paragraph 55

of the complaint.

56. ADA denies the allegations as contained in paragraph 56

of the complaint.

57. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

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paragraph 57 of the complaint, and demands strict proof thereof.

58. ADA denies the allegations as contained in paragraph 58

of the complaint.

59. ADA denies the allegations as contained in paragraph 59

of the complaint.

60. ADA denies the allegations as contained in paragraph 60

of the complaint.

61. Paragraph 61 of the complaint does not set forth

allegations to which a response is required.

62. ADA denies the allegations as contained in paragraph 62

of the complaint.

63. ADA denies the allegations as contained in paragraph 63

of the complaint.

64. ADA states that it is without knowledge sufficient to

form a belief as to the truth or falsity of the allegations of

paragraph 64 of the complaint, and demands strict proof thereof.

65. ADA denies the allegations as contained in paragraph 65

of the complaint.

66. ADA denies the allegations as contained in paragraph 66

of the complaint.

67. ADA denies the allegations as contained in paragraph 67

of the complaint.

68. ADA denies the allegations as contained in paragraph 68

of the complaint.

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69. ADA denies the allegations as contained in paragraph 69

of the complaint.

70. ADA denies the allegations as contained in paragraph 70

of the complaint.

71. ADA denies the allegations as contained in paragraph 71

of the complaint.

72. ADA denies the allegations as contained in paragraph 72

of the complaint.

73. ADA denies the allegations as contained in paragraph 73

of the complaint.

74. Paragraph 74 of the complaint does not set forth

allegations to which a response is required.

75. ADA denies the allegations as contained in paragraph 75

of the complaint.

76. ADA denies the allegations as contained in paragraph 76

of the complaint.

77. ADA admits that it has made no payments to the

Liquidating Trustee in this matter, but denies that it has any

obligation to do so, such allegations being contained in

paragraph 77 of the complaint.

78. ADA denies that it has filed any claim in this matter,

a fact that should be known to the Liquidating Trustee, and

further denies the notion that any claim filed by it could be

properly disallowed, such allegations being contained in

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paragraph 78 of the complaint.

79. Paragraph 79 of the complaint does not set forth

allegations to which a response is required.

80. ADA denies the allegations as contained in paragraph 80

of the complaint.

81. ADA denies the allegations as contained in paragraph 81

of the complaint.

82. ADA denies the allegations as contained in paragraph 82

of the complaint.

83. ADA denies the allegations as contained in paragraph 83

of the complaint.

84. ADA denies the allegations as contained in paragraph 84

of the complaint.

85. ADA denies the allegations as contained in paragraph 85

of the complaint.

86. ADA denies the allegations as contained in paragraph 86

of the complaint.

87. Paragraph 87 of the complaint does not set forth

allegations to which a response is required.

88. Paragraph 88 of the complaint does not set forth

allegations to which a response is required.

89. ADA denies the allegations as contained in paragraph 89

of the complaint.

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90. ADA denies the allegations as contained in paragraph 90

of the complaint.

91. Paragraph 91 of the complaint does not set forth

allegations to which a response is required.

92. ADA denies the allegations as contained in paragraph 92

of the complaint.

93. ADA denies the allegations as contained in paragraph 93

of the complaint.

94. ADA denies the allegations as contained in paragraph 94

of the complaint.

95. ADA denies the allegations as contained in paragraph 95

of the complaint.

96. Paragraph 96 of the complaint does not set forth

allegations to which a response is required. However, ADA notes

that the Trust has made serious allegations against it which are

unsupported by facts and applicable law, and it is incumbent upon

a plaintiff to have knowledge of such facts at the time a

complaint is filed.

THIRD DEFENSE

All transfers made by the debtor to ADA were for legitimate

business purposes, and benefitted the debtor and its creditors. 

FOURTH DEFENSE

The debtor received reasonably equivalent value for any

transfers made by it to ADA.

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FIFTH DEFENSE

The Trust’s complaint is barred by the applicable statute of

limitations.

AMERICAN DIABETES ASSOCIATION

By Counsel

GOLDMAN & VAN BEEK, P.C.

By: /s/ John P. Van Beek 

John P. Van Beek, #30897

Holly A. Currier, #46221

510 King Street, Suite 416

Alexandria, VA 22314

(703) 684-3260

(703) 548-4742 (Facsimile)

jvanbeek@goldmanvanbeek.com

hcurrier@goldmanvanbeek.com

Attorneys for the Defendant, 

American Diabetes Association

CERTIFICATE OF SERVICE

I hereby certify that on this 13th day of April, 2017, a true

copy of the foregoing was served via CM/ECF on Cullen Drescher

Speckhart, Esq., Wolcott Rivers Gates, 919 E. Main Street, Suite

1040, Richmond, VA 23219.

/s/ John P. Van Beek

John P. Van Beek

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