A Chapter 7 bankruptcy trustee’s lawsuit accusing former executives of Nash Engineering Co. of improperly transferring $59.7 million amid asbestos-related claims is “fatally flawed,” according to a recent court filing.
The ex-CEO and two former directors deny any wrongdoing and claim the lawsuit lacks merit in a Connecticut federal court filing. Mark Nordenson, the former CEO, argues that the complex and convoluted accusations set forth in the trustee’s complaint are unfounded. Eileen Maguire and John Bly, both former directors, assert that their prudent business decisions made in good faith should be protected.
Defendants Argue Business Judgment Rule Was Followed
In their multidimensional answer to the trustee’s exhaustive complaint filed in October 2023, Nordenson, Maguire and Bly asserted several defenses, including that key events took place beyond the statute of limitations. They argued that the multitude of transactions in question, which the trustee alleges depleted company assets and prevented sufficient funds for addressing asbestos claims, were carefully executed in accordance with the business judgment rule through reliance on legal and financial counsel.
