Montana Bankruptcy Fight Needs High Court Review, Academics Say

The US Supreme Court should take up an appeal challenging a state’s right to assert immunity from litigation when it initiates an involuntary bankruptcy case against a third party, a group of academics said.

High court attention is needed to address a 2024 decision from the US Court of Appeals for the Ninth Circuit on state sovereign immunity waivers that could “pose problems inside and outside of bankruptcy,” former North Carolina bankruptcy judge J. Rich Leonard and several law professors said in a friend-of-the-court filing Wednesday.

The brief supports a petition lodged by former billionaire entrepreneur Timothy Blixseth, who is ...