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Bankruptcy 'Plunderers' Can Be Sued by Creditors, Third Circuit Rules

The U.S. Court of Appeals for the Third Circuit has ruled in a precedential decision that in cases where a trustee has abandoned a bankrupt entity, a creditor can nevertheless sue those who "plunder" a near-insolvent company of its remaining assets.

3 minute read September 01, 2020 at 12:03 AM
By
P.J. D'Annunzio
Bankruptcy 'Plunderers' Can Be Sued by Creditors, Third Circuit Rules

The U.S. Court of Appeals for the Third Circuit has ruled in a precedential decision that in cases where a trustee has abandoned a bankrupt entity, a creditor can nevertheless sue those who "plunder" a near-insolvent company of its remaining assets.

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