Opinion ID: 621200
Heading Depth: 2
Heading Rank: 2

Heading: The Stock Purchases

Text: In 2007 and 2008, the Trusts purchased hundreds of millions of dollars of additional GGP stock. These purchases were financed with the proceeds of a loan secured by a pledge of the Trusts’ assets. At the time of the purchases, the Trusts were already heavily invested in GGP stock, which constituted over 65% of the Trusts’ assets. Eisenberg and Melamed approved the GGP stock purchases in their capacity as officers and directors of the Trustee, and the Law Firm, together with Eisenberg and Melamed, provided legal advice concerning the transaction. On April 16, 2009, GGP declared bankruptcy. Scanlan’s Trusts suffered more than $200 million in losses due to a drop in GGP stock purchased in 2007 and 2008. 4 No. 11-1657