Creditors' Derivative Standing Bid Nixed In KB Case

Law360, New York (June 25, 2009, 12:00 AM EDT) -- The judge overseeing KB Toys Inc.’s Chapter 11 proceedings has denied a bid by the unsecured creditors committee for derivative standing to sue some of the debtors' officers and directors, but the court left the door open for the committee to seek standing to bring an amended claim against the officers and directors for breach of fiduciary duty.

Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware signed off on an order on Thursday denying the official committee of unsecured creditors’...
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