7th Circ. Puts Sentinel Trustee Back On BoNY Warpath

Law360, New York (March 19, 2010, 7:07 PM EDT) -- In a robust reversal, a federal appeals court has ruled that Bankruptcy Code restrictions cannot prevent the liquidation trustee for Sentinel Management Group Inc. from suing Bank of New York Mellon Corp. on behalf of Sentinel investors allegedly defrauded of hundreds of millions of dollars.

The U.S. Court of Appeals for the Seventh Circuit ruled Thursday that the liquidation trustee is not constrained by the limitations placed on bankruptcy trustees and can freely sue BoNY on behalf of Sentinel investors claiming the bank facilitated the money...
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