A New Jersey law firm must return $450,000 it was paid in shares of stock just before one of its clients filed for bankruptcy protection now that the 3rd U.S. Circuit Court of Appeals has ruled that the transfer was a “preferential payment” that is barred by the Bankruptcy Code.
The court also ruled that the law firm of Robinson St. John & Wayne is disqualified from handling the bankruptcy for First Jersey Securities Inc. because the payment of shares of stock in International Thoroughbred Breeders Inc. that was paid to the firm just one day prior to the bankruptcy filing gave it an interest adverse to the debtor’s estate.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
