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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

1:13-cv-07948

Court

New York Southern

Nature of Suit

Bankruptcy Withdrawal

Judge

Alison J. Nathan

Date Filed

November 7, 2013

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