United States Seventh Circuit

In a litigation trustee's suit against former high-level employees of a bankrupt company ("borrowers") to enforce certain promissory notes, district court's grant of trustee's motion for summary judgment is affirmed in part, vacated in part and remanded where: 1) district court's grant of summary judgment in favor of the trustee are affirmed with respect to the borrowers' lack of standing to assert the alleged violations of Regulations G and U as affirmative defenses; 2) district court's grant of trustee's motion for summary judgment is vacated with respect to the affirmative defenses of illegality under section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, illegality under section 17(a) of the Securities Act of 1933, set off for fraud, set-off for negligent misrepresentation, and excuse-of-nonperformance; and 3) given the disposition of the appeals from the grants of summary judgment, the appeals from the Amended Judgments are dismissed as moot.

Appellate Information

• Argued 04/06/2010
• Decided 10/18/2010
• Published 10/18/2010

Judges

• TINDER

Court

• United States Seventh Circuit

Counsel