Large Cap
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September 24, 2024
Revlon Talc Claimants Can Appeal Directly To 2nd Circ.
A New York bankruptcy judge has found the Second Circuit can review his decision to reject 42 asbestos-tainted talc exposure claims against Revlon as having come too late because the claimants' appeal presents questions new and significant enough to justify skipping the district court.
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September 24, 2024
Yellow Corp. Can Depose Teamsters President In Ch. 11 Suit
Bankrupt trucking firm Yellow Corp. can move forward with a deposition of Teamsters President Sean O'Brien, after a Delaware bankruptcy judge declined Tuesday to stay the discovery tied to lawsuits that were filed against the debtor over mass layoffs.
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September 24, 2024
Star Witness Against Bankman-Fried Gets 2 Years In FTX Case
A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."
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September 24, 2024
NJ Judge Leaves J&J Ch. 11 Venue Change To Texas Judge
A New Jersey bankruptcy judge on Tuesday declined the U.S. trustee's request to move Johnson & Johnson's latest talc-unit Chapter 11 from Texas to the Garden State, saying the issue could be as ably decided by a Texas court while avoiding a thorny issue of authority.
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September 23, 2024
J&J Talc Claims Paused In Latest Spinoff Ch. 11
A Texas bankruptcy judge Monday froze certain talc personal injury litigation against Johnson & Johnson, saying a three-week administrative stay will give the court time to decide key jurisdictional issues in the Chapter 11 case of Red River Talc LLC, a newly created J&J spinoff and the pharmaceutical and cosmetics giant's latest attempt to settle claims in bankruptcy that its baby powder caused cancer.
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September 23, 2024
Mallinckrodt Brass Can't Avoid Investor Suit Over 2nd Ch. 11
A New Jersey federal judge ruled Monday that senior leaders of drugmaker Mallinckrodt cannot escape a lawsuit brought by shareholders alleging the company tricked them into thinking it had recovered from bankruptcy and would make a $200 million payment to opioid claimants, finding the investors sufficiently pleaded securities law violations.
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September 23, 2024
Incora Judge To Consider Mediator Amid Ch. 11 Plan 'Logjam'
A Texas bankruptcy judge on Monday instructed parties squabbling over aircraft parts supplier Incora's Chapter 11 exit plan to return to court this week with a proposal that could break a "logjam" in negotiations, saying he will appoint a mediator if one is needed.
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September 23, 2024
Decline And Fall: Brand Empires That Hit Bankruptcy
When food container maker Tupperware filed for Chapter 11 in Delaware last week, disclosing more than $1 billion in liabilities and plans for a quick sale, it became the latest iconic brand to seek relief from financial woes in bankruptcy court, following in the footsteps of giants from Rite Aid to RadioShack.
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September 23, 2024
SunPower Gets OK For $45M Asset Sale, Ch. 11 Plan Vote
A Delaware bankruptcy judge on Monday gave residential solar technology company SunPower Corp. the go-ahead for a $45 million sale of the majority of its assets and a creditor vote on its Chapter 11 plan.
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September 23, 2024
Cargo Airliner ESOP Participants Seek OK On $14.5M Deal
Western Global Airlines and its investment manager will pay $14.5 million to end a proposed class action from two pilots for the cargo airliner alleging the company's employee stock ownership plan was mishandled, according to filings in Delaware federal court.
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September 23, 2024
Judge Recuses Self After Opening Jackson Walker Ethics Probe
U.S. Bankruptcy Judge Marvin Isgur has asked a Texas federal court to investigate potential sanctions against Jackson Walker LLP for its failure to disclose a relationship between a firm partner and a federal judge, also telling the court he would recuse himself from any proceedings involving the ethics breach.
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September 23, 2024
J&J Accuses Beasley Allen Of Casting Bogus Talc Ballots
Johnson & Johnson has accused the Beasley Allen Law Firm of casting about two dozen false ballots against the company's latest talc bankruptcy plan without voters' consent and urged a New Jersey federal court to remove the firm from the plaintiff's steering committee as a consequence.
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September 23, 2024
Autism Played Role In Bankman-Fried Case, 2nd Circ. Told
A group of experts on neurodiversity told the Second Circuit that Sam Bankman-Fried, who has said he has autism and attention deficit hyperactivity disorder, may have been hurt at trial by a "cognitive and communication style" that at times frustrated the trial judge.
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September 23, 2024
Paul Hastings Adds Restructuring Pro In Dallas From Sidley
Paul Hastings LLP announced Monday that it has continued its expansion in the Lone Star State with the addition of a financial restructuring partner in Dallas who came aboard from Sidley Austin LLP.
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September 20, 2024
State Agencies Settle Securities Claims Against FTX
Defunct cryptocurrency exchange FTX has reached a settlement with agencies in five states that had asserted about $1.8 billion in claims against the debtor.
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September 20, 2024
Steward Health Scores $4.5M Deal For Texas Hospital
Embattled hospital operator Steward Health Care has informed a Texas bankruptcy judge that the company intends to accept a Texas-based Catholic health system's $4.5 million stalking horse offer for one of its facilities in the state.
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September 20, 2024
US Trustee Slams Proposed Exec Bonuses In Conn's Ch. 11
The U.S. Trustee's Office urged a Texas bankruptcy judge on Friday to reject bonuses that retailer Conn's wants to pay executives if it reaches key goals in its Chapter 11 case, saying the awards would amount to an impermissible "pay to stay" retention plan because the debtor's restructuring professionals are the ones responsible for meeting such targets.
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September 20, 2024
Plaintiffs Firms Battle Over Proposed $9B Deal In J&J Talc Suit
Two leading plaintiffs law firms in the multibillion-dollar litigation over Johnson & Johnson's tainted talcum powder are now warring among themselves, with Smith Law Firm PLLC suing Beasley Allen Law Firm for defamation after Beasley Allen accused the former of selling out clients to pay off litigation funders.
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September 20, 2024
J&J Makes Third Try At Handling Talc Claims In Bankruptcy
A Johnson & Johnson talc unit filed for Chapter 11 protection in Texas bankruptcy court Friday, marking the third time the company has tried to deal with liability from alleged asbestos-contaminated talc with a bankruptcy filing.
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September 20, 2024
Meet The Attorneys In Tupperware's Ch. 11
A team of attorneys from Cole Schotz PC and Kirkland & Ellis LLP is helping guide food storage company Tupperware through its Chapter 11 bankruptcy, in which it hopes to quickly find a buyer while fending off a dismissal motion from a group of lenders.
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September 20, 2024
NY Firm Settles With Chinese Exile Guo's Ch. 11 Trustee
Wildes & Weinberg PC, a New York-based immigration law firm, has penned a confidential settlement with the Chapter 11 trustee overseeing Chinese exile Miles Guo's bankruptcy in Connecticut, a deal that appears to be the first one the trustee struck with a law firm since he began filing clawback actions earlier this year.
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September 19, 2024
Senate Panel Holds Steward CEO In Contempt After No-Show
A U.S. Senate committee voted unanimously Thursday to hold Steward Health Care CEO Ralph de la Torre in civil and criminal contempt after he defied a subpoena to testify about the bankrupt health system's downfall.
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September 19, 2024
Puerto Rico Utility's $188M Deal With Contractor Gets OK
A New York federal judge has approved a roughly $188 million settlement between Puerto Rico's bankrupt public electricity provider and a company whose multi-million-dollar contract to repair hurricane-damaged power lines on the island had been under legal scrutiny.
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September 19, 2024
Calif. Says FDIC's $20M Tax Refund Bid Must Wait
A California tax collection agency asked a New York federal court to throw out Federal Deposit Insurance Corp. claims seeking a more than $20 million tax refund on behalf of the shuttered Signature Bank, saying the agency is entitled to wait for a potential IRS audit to end.
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September 19, 2024
Tupperware Gears Up For Lender Fight Over Ch. 11 Plans
Iconic food storage brand Tupperware received a Delaware bankruptcy judge's approval Thursday to keep its bank account systems operating as it prepares to fight off objections to most of its first-day motions next week from a group of secured lenders looking to dismiss its Chapter 11 bankruptcy and foreclose on its assets.
Expert Analysis
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SVB Bankruptcy Case Raises Asset Control Questions
The initial disputes in Silicon Valley Bank's bankruptcy case between the Federal Deposit Insurance Corp. and the debtor over tax refunds and deposits are likely to signal the rekindling of old battles for limited assets last fought during the Great Recession, say Jeffrey Rothleder and Maura McIntyre at Squire Patton.