General Counsel Beware In Bankruptcies

Law360, New York (May 9, 2008, 12:00 AM EDT) -- In these increasingly financially troubled times, a recent decision by the Delaware bankruptcy court should serve as a cautionary tale for directors and officers generally, and general counsel in particular.

In In re World Health Alternatives Inc., Judge Peter J. Walsh refused to dismiss claims for breach of fiduciary duty, waste of corporate assets, aiding and abetting breach of fiduciary duty, waste of corporate assets and fraud and negligent misrepresentation.

The claims were brought by the U.S. trustee against various defendants who served as officers in...
To view the full article, register now.