Montana Avoids High Court Challenge Over Involuntary Bankruptcy

June 6, 2025, 10:34 PM UTC

The US Supreme Court turned away an appeal challenging Montana’s right to assert sovereign immunity from a former billionaire’s lawsuit seeking redress over the state’s pursuit of an involuntary bankruptcy case.

The justices’ Friday rejection of the case means former real estate entrepreneur Timothy Blixseth is barred from suing the Montana Department of Revenue for launching Chapter 7 bankruptcy proceedings against him more than a decade ago to collect on millions in unpaid taxes.

The 2024 ruling by the US Court of Appeals for the Ninth Circuit found that Montana’s pursuit of Blixseth in bankruptcy didn’t amount to a waiver ...

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