Tag Archives: Bankruptcy

Judge Marrero Rejects PwC’s In Pari Delicto Defense in MF Global Case

In his latest MF Global ruling, issued today, Judge Marrero denied PriceWaterhouseCooper’s motion to dismiss a $1 billion malpractice and negligence suit brought by the bankrupt brokerage firm’s plan administrator. PwC had acted as an outside auditor and accountant for MF Global before it went bankrupt.  The plan administrator alleged that PwC “engaged in ‘extraordinary … Continue Reading

Judge Rakoff: Madoff Trustee Cannot Recover Foreign Funds

In an opinion dated Sunday, July 6, Judge Rakoff ruled that the trustee administering Bernie Madoff’s defunct investment firm could not invoke the Bankruptcy Code to recover funds transferred between two foreign entities. Citing Morrison v. Nat’l Austria Bank Ltd., Judge Rakoff held that Section 550 of the Bankruptcy Code, like other federal statutes, did … Continue Reading

Judge Pauley Rules that Dissolved Law Firm’s Hourly Matters Are Not Property of Bankruptcy Estate; Certifies Issue for Interlocutory Appeal

In a fraudulent transfer case brought by the trustee for Thelen LLP against law firms where former Thelen partners took work, Judge Pauley ruled today that the billable matters (as compared to contingency cases) were not “property” of the bankruptcy estate. Although “unfinished business” is generally an asset of a dissolved partnership, Judge Pauley concluded … Continue Reading