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Civil Litigation,
California Supreme Court,
9th U.S. Circuit Court of Appeals

May 27, 2025

Murphy Rosen asks Supreme Court to reinstate $35M claim extinguished in receivership

A petition filed with the U.S. Supreme Court challenges a 9th Circuit ruling that barred a $35 million fraud claim, arguing it violates due process and exceeds the equitable powers of federal receivership courts.

In a case that could redefine the constitutional limits of federal receiverships, Murphy Rosen LLP has petitioned the U.S. Supreme Court to overturn a 9th Circuit decision that extinguished its client's $35 million fraud claim without trial or consent. The firm argues the ruling unlawfully bars third-party claims against non-receivership defendants--violating due process and creating a circuit split that demands the high court's intervention.

"This case presents a cl...

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