3rd Circ. Says Investors' Atty Hid Info, Buries $30M Award
Law360, New York (October 18, 2017, 6:22 PM EDT) -- The Third Circuit determined Wednesday that a New Jersey bankruptcy court was right to throw out a $30 million judgment against a Wall Street stockbroker accused of fraud, saying in its precedential ruling that the investors’ attorney had deliberately withheld key information about a separate settlement.
When seeking default judgment against Andrew E. Bressman, the investors' attorney Max Folkenflik failed to disclose to the bankruptcy court that his clients had already recovered some of their losses through a settlement he arranged with some of Bressman’s co-defendants, the appellate court ruled, refusing to reinstate the $15 million judgment that had swelled to $30 million with interest....
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