CORP. GOV. & SECURITIES CASES
U.S. 5th Circuit, May 12, 2008
Kornman & Assocs. Inc. v. US, No. 06-11422
In a proceeding under the Tax Equity and Fiscal Responsibility Act (TEFRA) in which plaintiffs were alleged to have attempted to create an artificial tax loss through the short sale of Treasury Notes and the transfer of partnership interests, summary judgment for the government and dismissal with prejudice of a petition for readjustment of partnership items is affirmed where the obligation to close a short sale is a liability for purposes of I.R.C. section 752.
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U.S. 2nd Circuit, May 13, 2008
Estate of Pew v. Cardarelli, No. 06-5703
In an appeal primarily addressing whether a claim fell within the exception to the Class Action Fairness Act's ("CAFA") grant of original and appellate jurisdiction for class actions which solely involve claims concerning certain rights and duties related to any security, the circuit court: 1) rules that the suit at hand does not fall within such exception to CAFA jurisdiction, and thus it has authority to accept an appeal from a remand order; 2) grants defendant's petition for leave to appeal; and 3) reverses the district court's remand order on the merits.
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