The District Court for the Southern District of New York has ruled that a trustee could not amend a complaint to add federal constructive fraudulent transfer claims because those claims were preempted by the safe harbor provision of the Bankruptcy Code.[1] The District Court found, under a plain language reading of the safe harbor provision, 11 U.S.C.
USA, New York, Insolvency & Restructuring, Litigation, Caplin & Drysdale, Chartered, Title 11 of the US Code, Second Circuit