BNY Settlement Notices Left Investors In The Dark, Judge Says

Law360, Philadelphia (January 7, 2013, 5:52 PM EST) -- A federal judge on Wednesday backed a bankruptcy court's finding that settlement notices sent to Bank of New York Mellon Trust Co. bondholders during a Philadelphia-area hospital's bankruptcy proceedings didn't adequately inform them that accepting the $8.1 million deal meant waiving their rights to bring claims against the bank.

Upholding a pair of May 2012 bankruptcy court decisions, U.S. District Judge Timothy Savage said nine notices sent to bondholders informing them of the terms of the settlement agreement reached as part of the reorganization plan for...
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