Litigation Trustee and Committee Claims Against Insiders, Auditors and Other Third Parties in Asset Sale Cases

Addressing Limitations on Recovery Such as In Pari Delicto, Standing and the Insured v. Insured D&O Exclusion

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, April 26, 2012

Recorded event now available

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Program Materials

This CLE webinar will provide bankruptcy counsel with a review of suits against corporate insiders and outside third-party professionals, theories supporting liability, and the evolving and complex defenses and limitations to recovery such as in pari delicto, standing and the insured v. insured exclusion.


In today’s bankruptcy climate, trustees and creditors' committees are aggressively pursuing claims against third parties such as accountants, auditors, attorneys, lenders and advisors for their role in the debtor’s insolvency. Allegations include fraud, aiding and abetting, and malpractice.

The in pari delicto defense can prevent the trustee, who stands in the shoes of the debtor, from pursuing damages resulting from actions by the debtor’s officers and directors if its requirements are met. This defense is evolving in the current economic climate.

Another impediment to recovery is the insured v. insured exclusion in D&O insurance policies as insurance recovery may be critical to obtaining any recovery at all. A number of important and strategic considerations have also been created by the Supreme Court's recent Stern v. Marshall decision.

Listen as our authoritative panel of bankruptcy attorneys discusses recent trends in trustee and committee litigation against insiders and third-party professionals, and limitations on recovery posed by the in pari delicto doctrine, standing issues and the insured v. insured exclusion to D&O policies.



  1. Trustee/committee claims against third parties
    1. Fraud
    2. Aiding and abetting fraud and breach of fiduciary duties
    3. Deepening insolvency
    4. Fraudulent conveyance
  2. In pari delicto defense
    1. Standing to pursue claims
    2. Exceptions to the doctrine
    3. Various state cases and trends
    4. Application in bankruptcy setting
  3. Professional liability insurance coverage issues


The panel will review these and other key questions:

  • What trends exist in trustee and committee suits against insiders and third parties, and what are the common theories supporting the cause of action?
  • Is the in pari delicto defense a difficult obstacle to filing suit against insiders and third parties? How can the trustee or committee defeat the defense?
  • How does the insured v. insured exclusion in D&O policies limit recovery and how have courts interpreted its application in the current bankruptcy environment?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Michael P. Richman
Michael P. Richman

Patton Boggs

He focuses on representation of Chapter 11 debtors and creditors’ committees, and regularly advises and...  |  Read More

Robert J. Keach
Robert J. Keach

Bernstein Shur

His practice focuses on the representation of various parties in workouts and bankruptcy cases, including debtors,...  |  Read More

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