The Fourth Circuit affirmed the dismissal of two adversary proceedings filed by Elshan and Babak Bayramov against American Credit Acceptance, LLC, Peritus Portfolio Services II, LLC, and related defendants. The court held that the plaintiffs lacked standing to bring these claims in their personal capacities because the alleged injuries belonged to Total Auto Financing, LLC, the business entity they owned, rather than to them individually. The court applied the “claim-ownership principle,” clarifying that this rule is a merits issue regarding who owns a cause of action, not a jurisdictional Article III standing requirement. Under Virginia law and general corporate principles, members of an LLC cannot sue in their own right for injuries sustained by the LLC, such as the depreciation of their equity interest or increased liability as guarantors resulting from harm to the business. The court explained that when a business is injured by a third party, the claim belongs to the entity; if the entity is in bankruptcy, the claim becomes property of the estate under 11 U.S.C. § 541(a) and must be pursued exclusively by the bankruptcy trustee for the benefit of all creditors. The court rejected the plaintiffs’ arguments that their status as guarantors or the nature of their reputational harm created a “special injury” sufficient to support direct claims, noting that their losses were merely downstream effects of the harm done to Total Auto. Consequently, the plaintiffs failed to state valid causes of action for breach of fiduciary duty, unjust enrichment, negligence, tortious interference, conspiracy, quiet title, or equitable subordination. The practical consequence is that the dismissal of the complaints remains in effect. The Bayramovs’ claims regarding the mismanagement of Total Auto’s loan portfolio and the validity of American Credit’s lien must be pursued by the bankruptcy trustee on behalf of the estate. The plaintiffs’ request to amend their complaints was denied because they failed to propose a viable theory for direct claims or explain how they would remedy the defects in their pleadings.