In re Lancelot Investors Fund LP

Ruling: 
Action by investors in debtor's alleged Ponzi scheme stayed due tot substantial overlap with efforts of trustee.
Procedural posture: 
Debtors filed for bankruptcy protection under chapter 7 of the Bankruptcy Code after an alleged Ponzi scheme was uncovered. Defendants, a family trust and others, filed a complaint against a partnership, which provided auditing and financial services to the debtors, in the Fourth Judicial District of Hennepin County District Court in Minnesota. Plaintiff trustee moved for a preliminary injunction staying defendants' lawsuit.
Issue: 
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Commercial case opionion summary, case decided on July 17,2009, LexisNexis #0809-072