Ch. 11 Toss Of $619M Malpractice Suit Gets 2nd Circ. Review

By Pete Brush (September 23, 2021, 7:18 PM EDT) -- A Second Circuit panel grappled Thursday with whether former Pennsylvania wood factory workers poisoned by toxins may pursue their former Chapter 11 counsel in a state malpractice class action alleging a failure to get $619 million out of the Tronox Inc. bankruptcy.

Circuit Judges Richard C. Wesley and Richard J. Sullivan, joined during virtual arguments by U.S. District Judge Brian M. Cogan in Brooklyn, asked if Manhattan U.S. District Judge Alvin K. Hellerstein was correct in holding last year that the suit was properly dispatched in bankruptcy court.

In a two-page order, Judge Hellerstein upheld U.S. Bankruptcy Judge Michael E. Wiles...

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