Cobalt Partners v. GSC Capital Corp.

OPINION OF THE COURT

Moskowitz J.

On August 31, 2010, subsequent to oral argument, but while the case was sub judice, defendants filed for bankruptcy and therefore this case became subject to the automatic stay of litigation pursuant to section 362 of the Bankruptcy Code (11 USC). On March 28, 2012, the parties notified this Court that the United States Bankruptcy Court for the Southern District of New York had lifted the stay. Thus, we may now release our decision.

Because this is an appeal from the grant of a motion to dismiss and plaintiffs have alleged facts sufficient to meet the strict…