A federal appeals court has denied a Wall Street law firm’s request to stop the flow of settlement money from a body armor company’s bankruptcy so that the firm could establish a $15 million reserve for attorney fees.

The U.S. Court of Appeals for the Third Circuit’s precedential ruling from Tuesday is the latest development in the legal debacle surrounding the downfall of David H. Brooks, the late CEO of Delaware-incorporated DHB Industries whose conviction on insider trading charges spawned a flurry of class action lawsuits and the ultimate demise of his company.