NEW YORK, NY May 29, 2003 – Representing The Official Committee of Unsecured Creditors of Cybergenics Corporation, the Firm won a significant victory before the US Court of Appeals for the Third Circuit, sitting en banc, in a bankruptcy case which has attracted national attention. The Court of Appeals reversed the decision of the District Court, which had held that a creditors committee lacks standing to assert fraudulent transfer claims on behalf of a bankruptcy estate. Last November the Third Circuit granted the Firm's petition for rehearing en banc and vacated the panel decision which had affirmed the District Court's ruling. As a general rule, only one percent of petitions for rehearing en banc are granted. The case is now being remanded to the original panel to address certain issues which were not argued before the full Court in February. The opinion issued on May 29 is 63 pages, including a dissent. The vote was 7-4.
The CL&M team consisted of Gary Sesser, Jim Gadsden, Roxana Nazari and Mark Sullivan.
Carter Ledyard & Milburn LLP (www.clm.com), established in 1854, has approximately 120 attorneys and has been headquartered on Wall Street since its founding and has additional offices in midtown Manhattan and Washington, DC. Carter Ledyard’s general practice includes corporate, securities, mergers and acquisitions, private equity, litigation, intellectual property, environmental, employment, media and technology, immigration, investment regulation, antitrust, trusts and estates, maritime, ERISA, exempt organizations, real estate, tax and bankruptcy. A significant part of the firm’s practice involves representing overseas-based clients and their U.S. affiliates, financial institutions and other financial services providers, governmental entities and media and technology clients.