In Re Med Diversified, Inc.’s Empirical Analysis
2006
Citation profile
How this case has been cited
Cited by 26 later decisions — most recently March 2023 · most notably Nisselson v. Softbank Am Corp. (In Re MarketXT Holdings Corp.) (2007), In Re Touch America Holdings, Inc. (2008)
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
Relationships
Applies 11 U.S.C. § 510
Relies on Robinson v. Shell Oil Co. · California v. Civil Aeronautics Board · In Re Telegroup, Inc. · Stirling Homex Corporation v. Raichle · Ball v. Ao Smith Corporation
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 26 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“For the purpose of distribution under this title, a claim arising from rescission of a purchase or sale of a security of the debtor or of an affiliate of the debtor, for damages arising from the purchase or sale of such a security, or for reimbursement or contribution allowed under section 502 on account of such a claim, shall be subordinated to all claims or interests that are senior to or equal the claim or interest represented by such security, except that if such security is common stock, such claim has the same priority as common stock.”
6 later decisions quote this exact passage · from the majority“While this argument might appear at first blush intuitively reasonable, the distinction is flawed. Although implicit, there is nonetheless a bargain and exchange of value. Here, the exchange is made not at the time of payment but prior to employment. If these Claimants were required to receive a portion of their compensation as options, that was a condition of [their] employment the[y] ... willingly accepted in return for their labor. These Claimants, thus, “purchased” the stock options with their la-' bor. Therefore, the Court’s previous conclusion [that Claimants’ claims alleging fraudulent inducement with respect to the stock option component of their compensation package are claims “arising from” the purchase of a security and thus must be subordinated under Section 510(b)] is equally applicable to this [situation].”
1 later decision quote this exact passage · from the majority“In a well-reasoned, unpublished decision ... the bankruptcy court (Bernstein, Bankr. J.) granted summary judgment to the trustee and subordinated Claim 661. Judge Bernstein determined, in accordance with case law broadly construing section 510(b), that “the claim need not flow directly from the securities transaction, but can be viewed as ‘arising from’ the transaction if the transaction is part of the causal link leading to the injury,”.... The court concluded that because Rombro’s claim was based on the debtor’s alleged failure to issue Rombro shares of its stock as required by the termination agreement, there was a causal link between the securities transaction and the injury. 46”
1 later decision quote this exact passage · from the majority
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.