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The Stakes Are High In FTI Consulting V. Merit Management

Law360, New York (May 18, 2017, 11:52 AM EDT) -- On May 1, 2017, the U.S. Supreme Court announced that it would review the Seventh Circuit’s decision in FTI Consulting Inc. v. Merit Management Group LP, 830 F.3d 690 (7th Cir. 2016), which addressed the scope of the safe harbor found in Section 546(e) of the Bankruptcy Code for settlement payments. Litigation over the § 546(e) safe harbor has been on the rise in the last several years — as evident in the many high-profile bankruptcy suits — to avoid, or “claw back,” payments from failed...
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