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The U.S. Bankruptcy Court for the S.D.N.Y. provided further
clarity in the Fairfield Sentry litigation on whether foreign
constructive trust claims are avoidance claims in assessing the
applicability of Sections 546(e) and 561(d), the U.S. bankruptcy
safe harbor laws which generally immunizes securities transactions
from bankruptcy avoidance actions. Judge Stuart M. Bernstein - in
one of his last decisions before retiring from the bench - authored
the opinion.
Denying a motion by defendants to reconsider his December 14,
2020 decision on the topic, Judge Bernstein reaffirmed that