TMST Ch. 11 Trustee Can't Block Docs In Fraud Suit

Law360, New York (April 20, 2011, 5:04 PM EDT) -- A Maryland federal judge on Tuesday allowed the former CEO of bankrupt real estate investment trust TMST Inc. to access documents underlying the Chapter 11 trustee’s lawsuit alleging TMST’s brass and Orrick Herrington & Sutcliffe LLP looted the company.

The trustee cannot prevent third-party witness Protiviti Inc., the debtor’s financial adviser, from responding to ex-CEO Larry A. Goldstone’s subpoena and handing over documents that the trustee relied on when crafting the complaint, according to the ruling. The court, however, excluded documents that detail debtor’s counsel Venable...
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