Previous judicial decisions and the statute of limitations defense. In a July ruling, U.S. District Judge Janet C. Hall dismissed the defendants’ motion to dismiss the case, rejecting their reliance on the business judgment rule. Judge Hall found the trustee’s allegations of conflicts of interest and self-dealing were enough at that stage to overcome the defendants’ legal defenses.
Additionally, Judge Hall ruled the statute of limitations did not bar the trustee’s claims. She found the allegations of fraudulent concealment compelling, noting the private nature of TNEC and Nash Holdings meant the transfers were not subject to public disclosure, preventing asbestos claimants from discovering them.
An additional defense in the avoidance action. In a separate lawsuit seeking to reclaim assets, also filed by Roumeliotis, numerous Nash family members and their trusts are targeted for receiving proceeds from the alleged improper transfers. These defendants echoed the business judgment defense while also arguing the transfers were made in the ordinary course of business and in exchange for value received, protecting them under federal and Connecticut law.
