Wrongful death and personal injury lawsuits shouldn’t have been blocked against insiders and affiliates of nursing home operator Genesis Healthcare Inc. without considering more protections, a federal district court ruled, reversing the extension of a bankruptcy stay.
Dallas-based bankruptcy court Judge Stacey Jernigan failed to follow mandatory safeguard procedures when she temporarily paused claims against Genesis’ non-bankrupt affiliates, Judge Jane J. Boyle of the US District Court for the Northern District of Texas said in a May 1 opinion.
Boyle overturned Jernigan’s ruling extending bankruptcy protections to third parties and sent the case back to the US Bankruptcy Court for ...
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