Kirschner v. JP Morgan Chase Bank, N.A., No. 21-2726 (2d Cir. 2023) examined this question in a case brought after the borrower of a $1.775 billion syndicated loan filed for bankruptcy. The loan was made in April, 2014 to Millennium Laboratories from JP Morgan Chase, and was syndicated to 61 lenders (many of whom further syndicated their own portions of the loan).

The proceeds of the 2014 loan were used to, among other things, pay off existing loans made in 2012 to Millenium. Prior to closing the 2012 loan, however, Millenium was facing material issues and in November of 2015, Millennium filed for bankruptcy.

The plaintiff in Kirschner (the trustee for the lender claim trust established in Milleneum's bankruptcy case) sued JPMorgan and the other syndication arrangers claiming (among other claims) violation of state securities laws.