Top executives of collapsed money manager Sentinel Management Group Inc. asked a court to throw out a $350 million lawsuit filed against them in the firm’s Chapter 11 case, saying Sentinel’s court-appointed trustee lacks standing to recover money for the firm’s customers.
Former Sentinel Chairman Philip Bloom, and his son Eric, the firm’s former chief executive, said the lawsuit filed by the trustee, Frederick Grede, “suffers from the fundamental — and fatal — flaw that a Chapter 11 trustee lacks standing to pursue claims which seek the recovery of property in which the debtor has no interest.”
