Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistLJN NewslettersNewsSections

Bankruptcy Rule 2004

By Jeffrey R. Gleit and Brian F. Moore
October 02, 2014

Rule 2004 of the Federal Rules of Bankruptcy Procedure (Bankruptcy Rule 2004) is a crucial pre-litigation discovery tool to investigate potential Avoidance Actions ' causes of action under Chapter 5 of the Bankruptcy Code ' in light of the stringent federal Twombly/Iqbal pleading requirements that are applicable in bankruptcy litigation, and which effectively makes it more difficult for debtors and trustees to sufficiently plead claims for relief.

Specifically, in Bell Atl. Corp. v. Twombly, the Supreme Court adopted a heightened “plausibility” standard requiring a plaintiff's claim to provide “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action” in order to survive a motion to dismiss. 550 U.S. 544, 545 (2007). Subsequently, in Ashcroft v. Iqbal , the Supreme Court then clarified the “plausibility” standard enunciated in Twombly, by holding that “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face” for a plaintiff to prevail on a motion to dismiss. 556 U.S. 662, 678 (2009).

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.