Former investors in the railway behind a deadly 2013 train derailment face a demand to return nearly $14 million in allegedly improper dividends on the grounds that the company was in financial trouble years before its bankruptcy filing, Dow Jones Daily Bankruptcy Review reported today. The bankruptcy trustee winding down the Montreal, Maine & Atlantic Railway Ltd. on Monday brought a lawsuit against the investors, which court papers show include a company with ties to the railway's former chairman. The lawsuit aims to show how, years before the accident that claimed 47 lives and partially destroyed a small Quebec town, the railway was in financial distress.
