Fraudulent Transfers

Mass Torts Gap in Contingent-Liability Valuation Guidance

March 2024

Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View

A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.

Earmarking Requires Dominion/Control and No Diminution of the Estate, Circuit Says

Invoking Supreme Court authority, the Tenth Circuit says that inferences from the evidence are reviewed for clear error just like findings of fact themselves.

Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement

The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.

Are Chapter 5 Claims Assets of the Estate that a Trustee Can Sell?

Jan 2024

Benchnotes January 2024

Jan 2024

Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer

The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.

Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation

The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.

Benchnotes December 2023

Dec 2023

Modern Techniques in Asset-Tracing