3rd Circuit Finds Emoral Inc.'s Diacetyl Claims Belong to Bankruptcy Estate, Not Successor Firm

PHILADELPHIA – The 3rd Circuit Court of Appeals has affirmed that individual diacetyl exposure claims brought against debtor Emoral Inc. are the property of that company's bankruptcy estate rather than Aroma Holdings LLC, which purchased Emoral's assets.

In declining to overturn a decision by the U.S. District Court for the District of New Jersey, the 3rd Circuit acknowledged in its Jan. 24 precedential opinion that it was leaving the "Diacetyl Plaintiffs" with no recourse against Aaroma, but said they may still pursue claims in Emoral's bankruptcy proceedings or against other defendants in actions now pending in New Jersey Superior Court.