A federal judge in Atlanta has reversed a $457 million judgment against one of the world’s largest forest product companies, saying that the Georgia bankruptcy judge who ruled against the Weyerhaeuser Co. liable was wrong.

In a 37-page order released Sept. 26, U.S. District Judge Julie E. Carnes said that U.S. Bankruptcy Judge Margaret H. Murphy had erred in embracing a characterization of Weyerhaeuser as a “bad actor” in the case, which sprang from the 1998 bankruptcy of Norcross, Ga.-based Paragon Trade Brands Inc.

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