Law, Strategy, and Risk in Commercial Disputes
You'd think that a corporation would have to have some gall if it sued its officers and directors for prolonging its life.
Even if they defrauded lenders out of the money that kept the firm chugging far past the point of genuine insolvency.
Does the situation change if the company ends up in chapter 11 and the bankruptcy…
May auditors who help a company's officers disguise their cooking of its books avoid liability to the company (now insolvent) by imputing the officers' knowledge of the fraud to the company?
By saying the officers' fraud conferred at least a "peppercorn" of benefit to the company?
The Third Circuit this week held that its previous yes responses must give way to…