Raymond James Must Face Bankruptcy Trust Suit Over Bond Sales

Raymond James & Associates is barred from asserting an indemnity obligation to avoid facing a suit over alleged misstatements connected to $300 million in bonds issued by a bankrupted wood processing facility, a federal appeals court ruled.

The Chapter 11 bankruptcy plan for Louisiana Pellets Inc., a former subsidiary of German Pellets GmbH, enjoins Raymond James from shutting down a lawsuit brought by a trust on behalf of the company’s creditors, the US Court of Appeals for the Fifth Circuit ruled Tuesday.

Affirming a series of lower court orders, the Fifth Circuit said that Raymond James can’t be granted relief ...