Analyzing Damages in Fraudulent Transfer Cases

, New York Law Journal


David L. Barres, a member of Mintz Levin Cohn Ferris Glovsky and Popeo, writes: In my experience, trustees typically argue that a transferee's liability under §550 is the full amount of the transfer. In my view, the correct result is the difference between the value of the consideration paid and the value of the consideration received, regardless of whether the claim is under federal or state law and regardless of whether the defendant took in good faith.

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