BANKRUPTCY OF RESPONDENT; RELIEF FROM STAY TO PURSUE SOX WHISTLEBLOWER CLAIM
In In re The Project Group, Inc., No. 05-4099 (Bkrtcy.S.D.Tex. June 28, 2006), the bankruptcy court granted retroactive relief from a bankruptcy stay in respect to a Sarbanes-Oxley Act whistleblower claim filed against the Debtor by one of the Debtor's former employees. The bankruptcy court had earlier issued a order granting relief from stay. Although that order had ignored the SOX action and focused on state court actions, the parties had proceeded before DOL as if the order applied to the SOX matter as well. When a trustee was appointed to replace the Debtor as the entity in control of the case, a new attorney for the trustee raised the issue of the applicability of the stay before the presiding ALJ, who directed the parties to return to the bankruptcy court for a clarification. In the interim, the Complainant removed the SOX claim to federal district court.
ADMINISTRATIVE REVIEW BOARD DECISIONS
BANKRUPTCY; AUTOMATIC STAY OF ADMINISTRATIVE PROCEEDING; STIPULATION UNDER BANKRUPTCY RULE 9019
In Platone v. FLYi, Inc., ARB No. 04-154, ALJ No. 2003-SOX-27 (ARB Sept. 29, 2006), the Respondent had filed for Chapter 11 bankruptcy protection. The ARB, however, was enabled to issue its Final Decision and Order because the Bankruptcy Court issued an order under Rule 9019 of the Fed. R. of Bankruptcy Procedure approving a stipulation of the parties to modify the automatic stay to permit the ARB to issue its decision.
