Federal Claims Court Tosses US Trustee Fee Overcharge Class Suit

A proposed class action seeking compensation for corporate debtors that paid unconstitutionally structured government fees must be dismissed because the US Supreme Court already denied refunds as a remedy, a federal court said.

There is no avenue to recover Chapter 11 quarterly fees paid to the Justice Department’s bankruptcy division—the US Trustee’s office—during a three-year period when those fees violated federal uniformity rules, Judge Stephen S. Schwartz of the US Court of Federal Claims said in a ruling Monday.

The Supreme Court ruled last year in a bankruptcy case appeal that the US Trustee didn’t have to return the fees ...