Akin Gump Litigation Team’s Article on “Soft Dollar Claims” Published by Law360
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Douglas Rappaport, Jason Goldsmith and Dawn Harrop, partner and associates respectively in Akin Gump’s litigation practice, have published an article in Bankruptcy Law360 (“’Soft Dollar’ Claims — Not Protected By SIPA”) that discusses the implications of a ruling by a New York bankruptcy court in In re Lehman Brothers Inc.
The article notes that, as a result of the court’s ruling—that bankruptcy claims based upon commission credits held in soft dollar accounts (“soft dollar claims”) do not qualify for treatment as customer claims for purposes of the Securities Investor Protection Act of 1970—soft dollar claims will no longer qualify for the enhanced protection afforded to customer claims by SIPA, i.e., guaranteed and prioritized payment.
The article is available in its entirety here.
