Court Ruling Triggers Thaxton Suits Against Finova

Law360, New York (March 15, 2006, 12:00 AM EST) -- A federal appeals court in South Carolina has lifted a stay preventing action on lawsuits regarding Finova Capital Corp.’s involvement with Thaxton Group Inc. and the supposed fruadulent sales of $120 million worth of debt to individuals.

The stay on the lawsuits, in force since last fall, has barred a federal judge in South Carolina from approving an order permitting partial summary judgment to noteholders in one action—a suit that resulted from Thaxton Group’s bankruptcy case in Delaware.

The Fourth Circuit Court of Appeals’ decision could...
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