Montana Vies to Ax Suit Over Businessman’s Involuntary Bankruptcy (1)

The Montana Department of Revenue says it’s immune from claims that it waged a bankruptcy battle that caused former billionaire Timothy Blixseth hundreds of millions in losses.

Although the state partially waived its sovereign immunity to participate as a creditor in Blixseth’s involuntary Chapter 7 bankruptcy proceedings, it hasn’t consented to be a defendant under the jurisdiction of the U.S. Bankruptcy Court for the District of Nevada, it said in a filing Tuesday.

That immunity should protect Montana from facing Blixseth’s Dec. 23 lawsuit, which accuses the Department of Revenue of bad faith by continuing to pursue the bankruptcy ...