Chem Rx Bosses Ask 2nd Circ. To Toss $106M Clawback Suit

Law360, New York (May 22, 2013, 7:48 PM EDT) -- Former principals at bankrupt Chem Rx Corp. urged the Second Circuit on Wednesday to kill a trustee lawsuit aimed at forcing them to give up $106 million they made in the pharmacy’s leveraged buyout.

A law that provides safe harbor from clawback claims related to certain stock sales shields the principals from claims, lawyer Andrew M. Leblanc of Milbank Tweed Hadley & McCloy LLP told a panel of judges at oral arguments in Manhattan.

A lower court dismissed a litigation trustee’s suit to recover money from...
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