Published on 20 Aug 2014 • USA (National/Federal) |
"shareholders disappointed with the failure of an issuer's business should not be able to file a proof of claim in a bankruptcy case predicated on the issuer's alleged unlawful conduct at the time of issuance and thereby elevate such a claim to unsecured creditor status when such shareholders, by investing in equity rather than debt instruments, assumed the risk of the entity's business failure."