MCM Succeeds in Delaware Bankruptcy Court

A federal bankruptcy court has ruled in favor of MCM’s clients in denying a bankruptcy trustee’s effort to expand its claims in a complex claim pending in Delaware.  The litigation trustee for DBSI Inc. accuses broker-dealers, including MCM clients, of profiting from a Ponzi scheme that drove DBSI, a real estate investment firm, into bankruptcy.  Most recently, the trustee sought to add hundreds of defendants to the suit on the basis of alleged fraudulent transfers by the broker-dealers.  Judge Peter J. Walsh,  ruled, after considering an opposition to the trustee’s motion to amend filed by MCM on behalf of its clients, that the trustee had not definitively linked the supposed transfers to the broker-dealers, and the subsequent transfers to the proposed new defendants.  MCM lawyers George Marcus and David Johnson handled the matter.   Read more about George, Dave and Andrew by clicking on their names, and read more about the case below. Hearing on Trustee’s Motion to Amend