On May 22, 2020, the U.S. District Court for the Southern District of New York ruled in Kirschner v. J.P. Morgan. The court held that a syndicated term loan is not a “security” under state securities laws. Had the court found that loans are securities, such a ruling would have had profound consequences on the leveraged loan market.
To read the full text of this Duane Morris Alert, which provides a brief overview of the court’s holding and details the implications on the banking and financial services industry, please visit the firm website.