International Wireless Communications Holdings, Inc. v. International Wireless Communications Holdings, Inc.

OPINION

AMBRO, Circuit Judge.

When persons purchase shares of stock in a corporation that files for bankruptcy, their shares come last in bankruptcy’s payout priority. Conversely, creditors of the corporation come first. Similarly, when persons bring claims arising from the purchase or sale of a corporation’s stock, and the corporation subsequently files for bankruptcy, those claims also are behind creditors’ claims. Does this outcome change when persons who, as part of their consideration when selling a security, get shares in an entity that files for bankruptcy? The obvious answer is no. Does…