(United States moment Circuit) - In a Chapter 11 bankruptcy appeal by thousands of former employees of debtor who held restricted stock units that were rendered worthless after the filing,the district court's judgment sustaining debtor's objections to the claims, on grounds that the claims must be subordinated to the claims of general creditors pursuant to 11 U.
S.
C. section 510(b) because the former arise from the purchase or sale of securities, or is affirmed where the claims at issue must be subordinated pursuant to 11 U.
S.
C. section 510(b) because,within the meaning of that statute: 1) restricted stock units are securities; 2) the claimants acquired them in a purchase; and 3) the claims for damages arise from that purchase or the asserted rescission thereof.
Source: findlaw.com