United States Second Circuit

Summary judgment for plaintiff and order subordinating defendant's claim for damages against the debtor is affirmed as the claim of a former executive employee of the debtor that is based on the debtor's failure to issue common stock to the executive in exchange for his stock in another company, as provided by a termination agreement, constitutes a claim "arising from" the purchase of the debtor's stock within the meaning and purpose of 11 U.S.C. section 510(b).

Appellate Information

• Decided 08/25/2006
• Published 08/25/2006

Judges

• MURTHA, District Judge., Before SACK, KATZMANN, Circuit Judges, and MURTHA, District Judge.

Court

• United States Second Circuit

Counsel

• For Appellees:
  
• Alec P. Ostrow, Stevens & Lee, P.C. (Constantine D. Pourakis, of counsel), New York, N.Y., for Defendant-Appellant., Craig E. Freeman, Alston & Bird, LLP (Martin G. Bunin, of counsel), New York, N.Y., for Plaintiff-Appellee.