Decision in Tweeter Opco, LLC., holds non-debtor controlling company liable for debtor's violation of the WARN Act

Summary

In a 24 page decision signed July 8, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to for summary judgment, holding a non-debtor defendant liable with the Debtor as a single employer for alleged WARN Act violations. Judge Walrath’s opinion is available here (the “Opinion”).

Background

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Class action, Federal Reporter, Limited liability company, Good faith, Summary offence, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, Third Circuit
Authors:
L. John Bird
Location:
USA
Firm:
Fox Rothschild LLP
Unwitting beneficiaries of Ponzi scheme cannot discharge debt under Chapter 7

Beneficiaries of a Ponzi scheme who were subsequently found liable to cheated investors under state securities laws could not discharge this liability under Chapter 7 of the Bankruptcy Code, the U.S. District Court for the Western District of Oklahoma ruled.

Filed under:
USA, Insolvency & Restructuring, Litigation, White Collar Crime, Katten Muchin Rosenman LLP, Fraud, Beneficiary, Debt, Summary offence, Unjust enrichment, Bankruptcy discharge, Title 11 of the US Code, United States bankruptcy court
Location:
USA
Firm:
Katten Muchin Rosenman LLP