Panel Nixes SportsStuff's Deals With Insurers

Law360, New York (June 4, 2010, 2:18 PM EDT) -- An appeals panel has blocked settlements three insurers struck with bankrupt SportsStuff Inc. and overturned an injunction protecting the insurers from suits related to a recalled SportsStuff water tube, ruling that the deals were not in the best interest of the estate and that the injunction was improperly granted.

A three-judge unit for the U.S. Bankruptcy Appellate Panel for the Eighth Circuit ruled Thursday that the agreements SportsStuff struck with Axis Surplus Insurance Co., Evanston Insurance Co. and Interstate Fire & Casualty Co. were not fair...
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