Ceragenix Whistleblower's Malpractice Suit Shut Down

Law360, New York (June 14, 2012, 6:17 PM EDT) -- A former Ceragenix Pharmaceuticals Inc. executive cannot bring malpractice claims against an attorney who allegedly encouraged the bankrupt company to fire him in retaliation for reporting insider trading, a Colorado federal judge ruled Thursday.

U.S. Bankruptcy Judge Sidney B. Brooks denied Carl Genberg’s May 11 motion for leave to pursue malpractice claims against Boston-based attorney Marc Redlich. Ceragenix’s Chapter 7 trustee Jeanne Jagow declined to pursue the claims on her own, prompting Genberg to file suit June 1 while the motion was pending.

Jagow was justified...
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