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IN RE STYLESITE MARKETING, INC.

Bankruptcy No. 00 B 10099(SMB), Adversary No. 00/2286A.

253 B.R. 503 (2000)

In re STYLESITE MARKETING, INC. f/k/a Diplomat Direct Marketing Corporation, Debtor. Tekinsight.Com, Inc. f/k/a Tadeo Holdings, Inc., Plaintiff, v. Stylesite Marketing, Inc. f/k/a Diplomat Direct Marketing Corporation and First Source Financial LLP, Defendants.

United States Bankruptcy Court, S.D. New York.

October 10, 2000.

Attorney(s) appearing for the Case

Nixon Peabody LLP, for Plaintiff TekInsight.Com, New York City, Robert N.H. Christmas, of Counsel.

Angel & Frankel, P.C., for Defendant Stylesite Marketing, Inc., New York City, Neil Siegel, of Counsel.

Neal, Gerber & Eisenberg, for Defendant First Source Financial LLP, Chicago, Illinois, Michael L. Molinaro, John W. Guarisco, of Counsel.

MEMORANDUM DECISION GRANTING MOTION TO DISMISS COMPLAINT

STUART M. BERNSTEIN, Chief Judge.

Section 510(b) of the Bankruptcy Code subordinates claims arising from the purchase or sale of a security of the debtor.1 The principal question of bankruptcy law raised in this adversary proceeding is whether the plaintiff, a purchaser of the debtor-defendant's stock, can bypass this restriction by suing to impose a constructive trust...

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