Law360, New York (July 12, 2011, 10:23 PM ET) — The New York bankruptcy judge overseeing the Chapter 11 proceedings for BearingPoint Inc. said on Monday that the technology consulting firm’s liquidating trustee can bring a $1.9 billion suit against BearingPoint’s former CEO and eight directors in Virginia state court.
Former BearingPoint Inc. directors will face a $1.88 billion lawsuit over their role in the consulting company’s insolvency in state court, a repercussion of a recent Supreme Court decision that could affect many bankruptcies.
In Stern v. Marshall, 564 U.S. ____ (June 23, 2011), the U.S. Supreme Court, in a 5–4 decision, held that the bankruptcy court could not, as a constitutional matter, enter a final judgment on a counterclaim that did not arise under Title 11 or in a case under Title 11, even though 28 U.S.C. § 157(b)(2)(C) expressly permits it to do so.
The e-ink is barely dry on the commentators’ articles and blog postings about the Supreme Court’s jurisdiction-affecting decision last month in Stern v Marshall, 10-179, 56 U.S. –, 2011 U.S. LEXIS 4791 (June 23, 2011).
Law360, New York (November 30, 2010, 8:06 PM ET) — BearingPoint Inc.’s liquidating trustee is seeking permission to sue the technology consulting firm’s former CEO and board of directors in Virginia state court, accusing them of hindering the sale of the company and costing it more than $1 billion.
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