Stoebner v. Opportunity Finance, LLC, No. 17-1097 (8th Cir. 2018)Annotate this Case
The bankruptcy trustee filed suit against Opportunity Finance and DZ Bank, seeking to avoid as fraudulent transfers under the Minnesota Uniform Fraudulent Transfer Act (MUFTA) over $250 million in loan payments made to PettersCB, prior to Thomas Petters's acquisition of Polaroid. A second amended complaint (SAC) alleged that PHC and PCE were the successors in interest to Petters CB.
The Eighth Circuit affirmed the bankruptcy court's grant of defendants' motion to dismiss. The court held that the SAC failed to state a claim of actual or constructive fraudulent transfers under MUFTA. In this case, the trustee erred in failing to adequately plead claims under the MUFTA. Rather, the trustee relied on the ponzi scheme presumption rejected by Finn v. Alliance Bank, 860 N.W.2d 638, 645-53 (Minn. 2015). The court also held that the district court did not abuse its discretion in denying leave to file a third amended complaint.