Securities Investor Protection Corp. v. 2427 Parent Corp., No. 14-97 (2d Cir. 2015)
Annotate this CaseClaimants, former investors of BLMIS, asked that the appointed trustee for the liquidation of BLMIS adjust their proportional share of customer property to reflect inflation and one claimant also asks for an interest adjustment, to reflect the time-value of money. The bankruptcy court upheld that trustee's determination that no adjustment for inflation or interest could be made. The court agreed, holding that the Securities Investor Protection Act (SIPA), 15 U.S.C. 78aaa, et seq., does not permit an inflation or interest adjustment to "net equity" claims for customer property. Accordingly, the court affirmed the bankruptcy court's order approving the trustee's adjusted net equity calculation and overruling claimants' objections.
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