Thomas Reynolds, trustee for Atherotech’s bankruptcy estates, sued former shareholders over a $31.9 million dividend after the company faced potential liability from Medicare claims tied to physician processing fees under federal investigation. After removal from Alabama state court, the district court dismissed for lack of personal jurisdiction, applying derivative jurisdiction and rejecting Bankruptcy Rule 7004(d)’s nationwide-service provision; it also deemed transfer to New York futile. The Eleventh Circuit reversed, holding that derivative jurisdiction does not carry a state court’s lack of personal jurisdiction into federal court after removal. On remand, the district court may assess jurisdiction under Rule 7004(d) using the defendants’ national contacts, subject to Fifth Amendment due process and any showing of constitutionally significant burden. If jurisdiction cannot be exercised, the court must consider Reynolds’s alternative transfer motion under 28 U.S.C. § 1406, although transfer is not automatic. The dismissal was reversed and the case remanded for further proceedings.