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Rennert Hit With $118M Verdict Over MagCorp Bankruptcy

Law360, New York (February 27, 2015, 2:34 PM EST) -- A New York federal jury found Ira Rennert liable on Friday for contributing to Magnesium Corp. of America’s 2001 bankruptcy, ordering the billionaire industrialist and his firm to pay $118 million in damages for taking shareholder dividends that allegedly left MagCorp too weak to survive.

The verdict, reached at the conclusion of a four-week trial, delivers a resounding win to Chapter 7 trustee Lee Buchwald in a tortured, 12-year legal saga and a windfall to the asset management firms now holding MagCorp’s defaulted bonds. Rennert’s firm, Renco...
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Case Information

Case Title

Magnesium Corporation of America et al v. The Renco Group, Inc. et al

Case Number



New York Southern

Nature of Suit

Bankruptcy Withdrawal


Alison J. Nathan

Date Filed

November 7, 2013

Law Firms


Government Agencies

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