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In New Economy, ‘Wagoner’ Doctrine Takes on Added Significance

AS THE “New Economy” bubble bursts and a fresh batch of high-profile corporations are forced to seek bankruptcy protection, increased scrutiny is brought to bear on debtor corporations by everyone from investors and creditors to the media and government agencies charged with monitoring corporate practices. When corporate irregularities are revealed, a bankruptcy trustee is often appointed, vested with statutory authority to pursue those causes of action belonging to the debtor corporation’s bankruptcy estate against third parties.[1]

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