NextBank Investor Win OK'd In $50M Fight With FDIC

Law360, New York (June 3, 2010, 2:28 PM EDT) -- A group of private investors can recover funds in a $50 million trust created as part of a securitization deal by subprime credit card issuer NextBank NA, an appellate court has affirmed, rejecting the Federal Deposit Insurance Corp.'s bid for the funds.

The U.S. Court of Appeals for the Second Circuit on Tuesday affirmed a lower court's ruling granting summary judgment to NextBank investors First Millennium Inc., subsidiary Millennium Partners LP and RMK Advantage Fund.

Millennium and RMK had argued that they were entitled to the...
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