7th Circ. Tosses BofA Suit Over $34M Bankruptcy Loss

Law360, Los Angeles (August 8, 2013, 4:03 PM EDT) -- The Seventh Circuit on Thursday affirmed the dismissal of a suit brought by Bank of America NA against Knight Industries and its subsidiaries accusing the company's executives of looting the firm before it went bankrupt, costing BofA approximately $34 million.

BofA brought suit in 2011, saying Knight’s officers and directors abused their positions by paying benefits to themselves and diverting assets and opportunities for the indebted companies into other companies owned or controlled by the defendants. BofA also sued Knight’s accountants for failing to detect the...
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