Stanwich Clarifies Wagoner Rule in Fraudulent Transfer Cases

October 2013

In the Second U.S. Circuit, the so-called Wagoner rule deprives a trustee of standing to sue third parties, such as lawyers and investment bankers, if the bankrupt corporation participated with them in defrauding creditors. A recent decision from Connecticut clarifies the limitation of the Wagoner rule when a trustee asserts fraudulent transfer claims.

To continue reading Dan Lowenthal's article from the October 2013 issue of the Journal of Corporate Renewal, please click here.