Supreme Court: No Strong-Arming the Federal Government With State-Law Fraudulent Transfer Claims
By EsqSocial Corporation 04/04/25
Recently, in the case United States v. Miller, the U.S. Supreme Court held that the sovereign immunity waiver provision in the Bankruptcy Code is jurisdictional only and does not waive the federal government’s sovereign immunity as to an underlying state-law fraudulent transfer claim. The decision resolves a circuit split and limits the scope of potential fraudulent transfer claims against the federal government that a trustee or debtor can avoid as a fraudulent transfer....
By: Ballard Spahr LLP