News & Analysis as of

Avoidance Clawbacks

Goodwin

Complicit Defendants Lose, Sovereign Agency Wins in Eternal Madoff Litigation

Goodwin on

Two recent decisions in the Madoff bankruptcy cases illustrate that the legacy of Bernie Madoff will long survive the man himself. Bernie Madoff died on April 14, 2021, while incarcerated in the Federal Medical Center in...more

Patterson Belknap Webb & Tyler LLP

A Primer on Avoidance Actions in the Context of Crypto Bankruptcies

In 2022, there were several high-profile crypto bankruptcy filings.  A big question in these cases is whether there will be any money to satisfy unsecured creditor claims.  If there are funds to distribute, then the...more

Dorsey & Whitney LLP

Why Avoidance Actions Are Difficult to Dismiss by a Rule 12(b)(6) Motion

Dorsey & Whitney LLP on

Traditional avoidance actions under the Bankruptcy Code, i.e., preferences and fraudulent transfers, have laudable goals: (a) to provide equal treatment to creditors of an insolvent company and (b) to claw back otherwise...more

Pullman & Comley, LLC

First Circuit Holds that Parents' Payment of Tuition for an Adult Child Can Be Avoided as a Fraudulent Transfer: Colleges,...

Pullman & Comley, LLC on

Bankruptcy trustees continue to vigorously pursue actions in which they sue colleges, universities and other institutions of higher education to recover tuition payments made by parents for their children when the parents...more

Mintz - Bankruptcy & Restructuring Viewpoints

Decade Old Transactions Potentially Subject to Bankruptcy Clawback in Massachusetts

Transfers and transactions up to ten years old may be scrutinized, unwound and recovered by a trustee, the bankruptcy court sitting in Massachusetts recently held in the NECCO (think chalky wafer candy) bankruptcy case. The...more

Patterson Belknap Webb & Tyler LLP

Bankruptcy Avoidance Actions Under Section 544(b): State Fraudulent Transfer Statutes and More

Creditors’ recoveries often hinge on claw-back lawsuits that trustees bring under bankruptcy law and non-bankruptcy law. Trustees can file claims based on non-bankruptcy law because Bankruptcy Code section 544(b) allows them...more

Tucker Arensberg, P.C.

Are College Tuition Payments Subject to Claw Back by Bankruptcy Trustees? - It Depends.

Tucker Arensberg, P.C. on

Bankruptcy Courts throughout the country are split on the socially charged issue of whether tuition payments made by parents for their adult children can be recovered by a bankruptcy trustee as “constructively fraudulent”...more

Kramer Levin Naftalis & Frankel LLP

Bankruptcy Court for the Southern District of New York Holds That Bankruptcy Court Retains Jurisdiction Over Fraudulent Transfer...

In Picard v. BAM LP (In re Bernard L. Madoff Investment Securities LLC), Adv. Pro. No. 10-04390 (Bankr. S.D.N.Y. Jan. 18, 2019), a matter arising out of the Ponzi scheme perpetrated by Bernard Madoff through Bernard L. Madoff...more

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