Law360, New York (June 12, 2012, 4:39 PM EDT) -- Barclays Bank SA, Credit Suisse AG and the many others facing fraudulent transfer suits by the liquidating trustee for Bernard Madoff's estate told a New York federal court Monday that the U.S. Constitution forbids a bankruptcy court from deciding the recovery actions against them.
Avoidance actions like the fraudulent transfer suits faced by the defendants are private rights claims that cannot be finally decided by a bankruptcy court, the defendants — that number over 300 — said.
“The bankruptcy court lacks constitutional authority to finally adjudicate...
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