We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

The In Pari Delicto Defense Stiffens In The 1st Circ.

Law360 (December 1, 2008, 12:00 AM EST) -- The current economic crisis, not surprisingly, is causing an increase in corporate bankruptcies and related litigation. Once a corporation seeks bankruptcy protection, trustees, examiners and creditors committees will scrutinize the debtor’s pre-bankruptcy affairs.

Pre-petition professionals of the debtor, including auditors, investment bankers, financial advisors and attorneys, may face threatened or actual litigation over their roles in the debtor’s demise. These types of claims are often the estate’s primary unencumbered assets, and may be the sole means of funding a dividend to unsecured creditors.

Claims against a...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.