2nd Circuit: Bankruptcy Trustee’s Fraudulent Transfer Suit Blocked By Safe Harbor

(October 1, 2024, 8:41 AM EDT) -- NEW YORK — The liquidating trustee in a power generating company’s bankruptcy case cannot pursue a fraudulent transfer action seeking the return of $708 million from equity securities holders to the bankruptcy estate because a safe harbor provision in the U.S. Bankruptcy Code bars such claims, the Second Circuit U.S. Court of Appeals ruled in affirming a federal court’s decision....