The New York High Court rules on Chapter 11 law clarifying the business exemption law issues over a Liquidating Trust that filed suit against Deloitte, LLP., for accounting fraud in New York State Supreme Court.
Deloitte, an audit, financial advisory, tax and consulting firm, moved to dismiss the suit arguing the Trust represented more than 50 claimants, thereby making its claim subject to dismissal under the Securities Litigation Uniform Standards Act of 1998 (SLUSA). The SLUSA sought to prevent abuses in private securities fraud lawsuits.
However, The Trust countered it qualified for the single-entity exemption because the Trust was a single entity within the meaning of SLUSA.
The New York Court of Appeals held that a liquidating trust established pursuant to a bankruptcy reorganization plan was a single “person” within the meaning of the “single-entity exemption” because the primary purpose of the trust was not to pursue the litigation.
Business Reorganization Clarified When Court Rules on Chapter 11 Law
Business reorganization is a complex process. Circumventing litigation through careful planning, and in-depth financial review with clients can prepare for any legal situation involved in a bankruptcy.
Winter Park Florida bankruptcy lawyers Eric Lanigan and Roddy Lanigan, of Lanigan and Lanigan, P.L., have 36 years and five years experience respectively of discerning complex business and civil litigation and bankruptcy laws for clients.
Determining bankruptcy law application and challenges that large and small businesses face while going through a business reorganization or a Chapter 11 bankruptcy is important to how a case will ultimately be litigated in court.
Work with attorneys who have familiarity with a range of bankruptcy and business reorganization cases and situations. A consultation with Lanigan and Lanigan may help you while choosing a business litigation attorney with experience and ability within the area that your business legal challenge occurs.
Lanigan and Lanigan, P.L., are experienced attorneys for businesses seeking aggressive representation with a personal touch.
