Chase Cleared In Fraud Suit Brought By Bankrupt Co.

Law360, New York (May 20, 2008, 12:00 AM EDT) -- A lawsuit filed by bankrupt hardware company Hechinger Co. alleging that Chase Manhattan Bank and others underwrote a series of transactions despite knowing that the company was insolvent has ended in summary judgment in favor of the bank.

On May 19, the U.S. Court of Appeals for the Third Circuit upheld a ruling issued by the U.S. District Court for the District of Delaware that dismissed the fraudulent conveyance claims made by the hardware company against Chase and 21 other banks.

The case stems from a...
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