8 results for 'cat:"Bankruptcy" AND cat:"Securities"'.
J. Dever dismisses an appeal made by two shareholders who unknowingly invested money in unregistered securities a company sold them and later filed for Chapter 11 bankruptcy. When the company originally filed, the shareholders took no action, not initiating litigation until years later, although the company had been cleared of its actions including the securities in question. The company also repaid its debts, and the shareholders were heard and dismissed previously.
Court: USDC Eastern District of North Carolina, Judge: Dever, Filed On: May 9, 2024, Case #: 5:21cv333, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, securities
J. Edwards denies remand to the Chapter 11 liquidating trustee for two bankrupt German-owned manufacturers of wood pellets. The trustee, a resident of Massachusetts, acted in “bad faith” to keep his suit against three financial advisors in a Louisiana state court. The sued financial advisors, who sold now-worthless bonds to build a wood pellet plant in Louisiana, met the high burden of demonstrating the trustee misused the federal removal statute by leaving a lone Louisiana resident – an accountant – to keep his suit in state court. The state court dismissed the trustee’s action against the Louisiana-based accountant because he had no evidence to support his allegations against her, nor did he depose her.
Court: USDC Western District of Louisiana , Judge: Alexandria, Filed On: May 7, 2024, Case #: 1:23cv505, NOS: Other Contract - Contract, Categories: bankruptcy, securities, Jurisdiction
J. Forrest vacates a district court order staying a securities fraud action pending completion of a Chapter 11 bankruptcy case and remands the matter. The matter arises from a group of retirement and pension funds which filed a consolidated putative securities class action against PG&E Corp., Pacific Gas & Electric Co., and some of its current and former officers, directors, and bond underwriters. PG&E filed for Chapter 11 bankruptcy which automatically stayed the action against PG&E but not the individual defendants. The district court abused its discretion in ordering the stay as to the individual defendants.
Court: 9th Circuit, Judge: Forrest, Filed On: May 3, 2024, Case #: 22-16711, Categories: bankruptcy, securities, Class Action
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. Mazzant affirms the judgment of the bankruptcy court in favor of co-trustees seeking to recover on a $3.2 million debt owed for violations of securities laws stemming from allegations the decedent's investments in a company were fraudulently procured. The debt was nondischargeable under the Bankruptcy Code since it resulted from a state court judgment for "violations of securities laws or fraud in connection with the sale or purchase of securities."
Court: USDC Eastern District of Texas , Judge: Mazzant, Filed On: March 28, 2024, Case #: 4:23cv109, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, securities
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J. St. Eve finds that the lower court properly overturned the bankruptcy court's decision, holding that the parties' loan authorization agreement and guaranty qualified as securities contracts totaling $25 million. Although this transfer left the debtor in dire financial straits, the trustee cannot seek to recover this money because it falls within the safe harbor provision. Affirmed.
Court: 7th Circuit, Judge: St. Eve, Filed On: March 15, 2024, Case #: 23-1931, Categories: bankruptcy, securities
J. Higginbotham finds the district court, sitting as appellate court, properly dismissed the asset manager’s appeal of the bankruptcy court’s dismissal of its objection to an order to pay professional fees associated with a complex bankruptcy proceeding. The asset manager fails to establish that the adversary proceeding impacts it other than speculatively. Case law pointed to in an attempt to argue that inclusion in the interests supports a right of action addresses only shareholder claims against a federal agency under the Administrative Procedure Act, and is not a bankruptcy case, doesn’t address the bankruptcy code, the person aggrieved standard, or issues related to the appeal.
Court: 5th Circuit, Judge: Higginbotham, Filed On: July 19, 2023, Case #: 22-10575, Categories: bankruptcy, securities, Business Expectancy