In a long-anticipated ruling, Fidelity Investments Charitable Gift Fund has been found not liable to the donors to a donor advised fund who claimed that they were damaged significantly when Fidelity sold all 1.9 million donated shares of a thinly-traded company in the last 2.5 hours of trading of the last day of trading in December 2017.  A magistrate judge in a Federal District Court in California has dismissed all of the donors’ claims.

The Bankruptcy Code provides that all pending or potential claims against the debtor are automatically stayed and may not be pursued when the debtor formally files for bankruptcy protection.  But the law also provides that cases are not stayed against non-debtors, including the individual officers of a bankrupt organization. 

The suspension of membership rights in a voluntary nonprofit association is not a denial of property under the Texas state Constitution, an appellate court in Texas has held.  It has dismissed a plaintiff’s claim that his rights had been denied without due process of law.

An employee of a foundation who complained of being fired for reporting alleged fundraising violations has a private right of action under the whistleblower protection provisions of the New York Not-for-Profit Corporation Law, an appellate court in the state has ruled.