12 results for 'cat:"Bankruptcy" AND cat:"Fraud"'.
J. Rosenthal finds that a salon company, which recovered only a fraction of their damages in bankruptcy court after a construction contractor filed for bankruptcy during construction of a salon and did not complete the project, cannot pursue fraudulent inducement claims against the family that operated the construction firm. The salon company argues this case involves a different cause of action from the claim adjudicated during bankruptcy proceedings, but the court finds that the facts asserted in both claims center on the construction company entering a contract it did not intend to complete. The fraudulent inducement claim is barred by the prior proceeding, so the suit is dismissed.
Court: USDC Southern District of Texas, Judge: Rosenthal, Filed On: May 6, 2024, Case #: 4:23cv2408, NOS: Other Fraud - Torts - Personal Property, Categories: bankruptcy, fraud
Per curiam, the circuit finds that the district court properly dismissed class securities fraud claims brought after a spinoff of Honeywell International filed for Chapter 11 bankruptcy due to legacy asbestos indemnity issues because the class failed to plead scienter with sufficient specificity to establish that the spinoff recklessly assured investors of its financial health while planning for bankruptcy. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: April 17, 2024, Case #: 23-668-cv, Categories: bankruptcy, fraud, Securities
J. Du finds the bankruptcy court improperly granted a reinsurer's motion for partial summary judgment, denying the debtor discharge from bankruptcy. The court made an adverse credibility determination and overlooked a genuine dispute of material fact in ruling the debtor fraudulently omitted information involving several LLCs from his bankruptcy schedules.
Court: USDC Nevada, Judge: Du, Filed On: March 14, 2024, Case #: 2:23cv688, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, fraud
J. Fallon finds for the insurance company of a bankrupt New Orleans-based genetic testing laboratory whose principals were barred from participation in any federal health care program for 25 years after they admitted to a fraudulent kickback scheme. The insurer for the failed laboratories is not required to pay state judgments in favor of two former employees in an employment compensation dispute totaling $3.2 million. The breach of contract exclusions contained in provisions of the bankrupt laboratories apply to the ex-employees' claims.
Court: USDC Eastern District of Louisiana , Judge: Fallon, Filed On: January 29, 2024, Case #: 2:22cv5410, NOS: Insurance - Contract, Categories: bankruptcy, Employment, fraud
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J. Bulla finds the district court improperly found for an attorney in this bankruptcy and property dispute. The bankruptcy court placed a lien on property purchased with funds misappropriated from the family trust. Though the attorney is entitled to enforce any remainder of the lien, he is not entitled to a constructive trust, title to the property, or recovery for fraudulent transfer or conversion. The district court failed to recognize the preclusive effect of prior orders, and factual disputes remain. Reversed.
Court: Nevada Court of Appeals, Judge: Bulla , Filed On: November 22, 2023, Case #: 84908-COA, Categories: bankruptcy, fraud, Property
J. Nathan finds that the district court properly held that a business decision to sell profitable parts before filing Chapter 7 bankruptcy constituted self-dealing and fraudulent transfer. The director who hatched the plan, which collapsed on its own shortly after being implemented, breached fiduciary duties by failing to seriously consider third-party offers, which illustrated her fraudulent intent. Meanwhile, the damages assessment totaling $39.2 million was rooted in future earnings of profitable assets. Affirmed.
Court: 2nd Circuit, Judge: Nathan, Filed On: August 28, 2023, Case #: 21-2547; 21-2576, Categories: bankruptcy, fraud, Fiduciary Duty
J. Wright grants the bankruptcy trustee's motion for pre- and post-judgment interest in his suit against the bank alleging breaches of fiduciary duty and fraud in connection with the Tom Petters Ponzi scheme, and denies both parties' motions for judgment as a matter of law and the bank's motion for a new trial or conditional remittur. Prejudgment interest questions are governed by Minnesota law in this case, not federal law. Issues regarding the availability of various defenses to the bank were also properly placed before the jury, and the jury's verdict and decisions could be reasonably arrived at with the evidence provided at trial, including a decision imposing sanctions on the bank for destruction of evidence.
Court: USDC Minnesota, Judge: Wright, Filed On: June 23, 2023, Case #: 0:19cv1756, NOS: Bankruptcy Withdrawal 28 USC 157 - Bankruptcy, Categories: bankruptcy, fraud, Fiduciary Duty
[Consolidated.] J. Lee finds that the district court improperly held that the bankruptcy court could not include the release of creditor lawsuits against the non-debtor Sackler family in Purdue Pharma's Chapter 11 reorganization plan. The bankruptcy code permits the founding family to contribute billions of dollars toward bankruptcy in exchange for ending all civil claims concerning the opioid epidemic tied to prescription OxyContin developed by Purdue. Reversed in part.
Court: 2nd Circuit, Judge: Lee, Filed On: May 30, 2023, Case #: 22-110-bk (L), Categories: Administrative Law, bankruptcy, fraud