Mid Cap
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January 15, 2025
Chancery Awards $1.6M To Food Recycler In Trade Secret Fight
The former leaders of a now-defunct food waste company owe another company $1.6 million for misappropriating a process for turning waste into fertilizer and animal feed, a Delaware vice chancellor said in a decision released Wednesday, finding they "rode" that process "all the way to the bank."
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January 15, 2025
When One Ch. 11 Doesn't Cut It: Recent 'Chapter 22s'
If there's something worse than bankruptcy, it's having to go through bankruptcy more than once. From exit loans that act more like a millstone than a launchpad, to unsuccessful attempts to shake off tort liability, to macroeconomic headwinds that just won't stop blowing, most Chapter 11 debtors show up to court more distressed the second time around.
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January 15, 2025
NJ Hospital Chain Reorg Plan Nets Flurry Of Objections
The proposed disclosure statement and Chapter 11 plan of New Jersey hospital operator CarePoint Health Systems Inc. drew more than a half dozen objections, including from former owners, a prospective buyer, an insurance company and the U.S. Trustee's Office, with the debtor's reorganization proposal denounced as "skeletal" and "patently flawed."
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January 15, 2025
Boeing Vexes Judge In 737 Max Records Flap With Airline
The Boeing Co. can't use a now-defunct South African airline's loss of records to dodge a suit over fallout from a 737 Max airplane deal, a Washington federal judge has said, chiding the aerospace giant for offering thin circumstantial evidence of intent without any "smoking gun."
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January 15, 2025
Judge OKs More Fees In Calif. Debt Relief Firm's Bankruptcy
A California bankruptcy judge has tentatively approved an additional $2.1 million in professional fees in the bankruptcy case of a troubled debt relief firm, despite the amount of professional fees already exceeding the amount paid out to creditors so far.
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January 15, 2025
Judge OKs Digital Media Solutions' Ch. 11 Wind-Down Plan
A Texas bankruptcy judge on Wednesday gave bankrupt digital advertising firm Digital Media Solutions Inc. approval for its proposed Chapter 11 plan, overruling objections from the U.S. trustee who argued the plan unlawfully includes nonconsensual third-party releases.
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January 15, 2025
AI Travel App Co. Mondee Files Ch. 11 With Sale Plans
Artificial intelligence-supported travel agency application maker Mondee Holdings Inc. filed for Chapter 11 protection in Delaware, saying it has a baseline offer for the acquisition of its assets and $49 million in financing from existing lenders.
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January 14, 2025
Catching Up With New Bankruptcy Case Action
California-based hospital operator Prospect Medical Holdings filed for Chapter 11 in Texas with over $1 billion in debt. Joriki USA Inc. filed for Chapter 7 with $300 million in liabilities after its Canadian parent sought creditor protection and shut down a plant due to a listeria outbreak.
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January 14, 2025
Wynne Transportation Can Tap Some Of $6M DIP In Ch. 11
A Delaware bankruptcy judge said Tuesday she will allow transportation service provider Wynne Transportation to borrow $2 million in initial debtor-in-possession financing on an interim basis, clearing the way to fund a Chapter 11 case the company launched in the wake of a nearly $33 million arbitration judgment.
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January 14, 2025
Judge Sets Sept. Deadline For Buffalo Diocese Ch. 11 Plan
A New York bankruptcy judge has told the Roman Catholic Diocese of Buffalo and its creditors they have until September to come up with a plan to settle the diocese's liability for approximately 900 claims of child sex abuse.
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January 14, 2025
Trade Secret Suit Sends New Zealand Software Co. Into Ch. 15
A New Zealand company that develops actuarial software products supported by artificial intelligence commenced a Chapter 15 bankruptcy case in Delaware Tuesday, saying ongoing trade secrets litigation had harmed its sales and operations.
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January 14, 2025
Giuliani Atty Chided For 'Higher Power' Remark Ahead Of Trial
A Manhattan federal judge pushed back Tuesday against Rudy Giuliani's lawyer ahead of a trial on whether the former New York City mayor must turn over his Florida condo and World Series rings to help cover a $148 million defamation judgment, after Giuliani's counsel said a precluded witness "answers to a higher power than this court."
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January 13, 2025
Ace Gallery Founder Gets 2 Years In Prison For Embezzlement
A California federal judge on Monday sentenced art dealer Douglas Chrismas, who founded the internationally renowned Ace Gallery, to two years in prison for embezzling hundreds of thousands of dollars from the bankruptcy estate of the shuttered Los Angeles art gallery.
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January 13, 2025
Colombian Refinery Co. Gets $1B McDermott Award OK'd
Colombia's state-owned oil company on Friday won enforcement of a $1 billion arbitral award issued against Dutch and British units of Texas-based construction firm McDermott International following a dispute over a refinery modernization project.
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January 13, 2025
Crypto Miner Hits Back At Involuntary Ch. 11 Petitioners
Bankrupt cryptocurrency mining operation Mawson Infrastructure answered an involuntary Chapter 11 petition by a group of secured creditors, telling a Delaware court that the December filing is a bad faith effort by a former executive to harass the business.
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January 13, 2025
Sen. Warren To Grill Treasury Pick On Trump's Tax Agenda
Sen. Elizabeth Warren, D-Mass., plans to ask Treasury secretary nominee Scott Bessent at his confirmation hearing in front of the Senate Finance Committee on Thursday about President-elect Donald Trump's tax agenda and plans for the Internal Revenue Service, according to a letter she sent the nominee.
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January 13, 2025
Infowars Bidder Raises Offer As Attys Consider Auction
A failed bidder for conspiracy-monger Alex Jones' Infowars has more than doubled the amount it would pay to acquire the website, and the parent company of satirical news site The Onion is preparing to submit its own revised bid, counsel for the trustee in Jones' Chapter 7 case said at a hearing in Texas bankruptcy court Monday.
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January 13, 2025
Canadian Packing Co. Files Ch. 7 For US Plant
A Pennsylvania food and beverage packaging facility has filed for Chapter 7 liquidation with over $300 million in debt on the heels of its Canadian parent company petitioning for creditor protection after one of its plants was shut down over a listeria outbreak.
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January 13, 2025
Alex Jones Switches Conn. Attys In $1B Sandy Hook Appeal
A Randazza Legal Group attorney will represent Alex Jones in a Connecticut Supreme Court bid to erase the remainder of a $1.44 billion defamation judgment for Sandy Hook shooting victims after the Infowars host's now-former lawyer raised unspecified conflict concerns about a third attorney representing Jones in the Connecticut appeal.
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January 13, 2025
Ex-Sacks Weston Atty's Theft Supports Suspension, Court Told
The severity of a suspended Philadelphia attorney's actions when he defrauded his former firm, Sacks Weston LLC, of almost $320,000 supports the Pennsylvania Disciplinary Board's recommendation of a five-year suspension of his law license, the state's Office of Disciplinary Counsel has argued.
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January 13, 2025
Smith Gambrell Faces DQ Bid In Major Lindsey Suit
A former Major Lindsey & Africa employee with a lengthy legal history with the recruiter is seeking to disqualify Smith Gambrell from representing Major Lindsey in her $75 million federal defamation suit, arguing three attorneys are key witnesses to help determine liability.
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January 13, 2025
Texas Construction Group Hits Ch. 11 With Up To $50M Debt
Timeline Construction LLC, a Houston-based commercial and residential design and construction firm, filed for Chapter 11 in Texas listing an estimated $10 million to $50 million in liabilities.
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January 13, 2025
Wynne Transportation Files Ch. 11 After $32M Arbitration Loss
Transportation services company Wynne Transportation Holdings LLC filed for Chapter 11 protection in Delaware after an arbitrator said it must pay a former subcontractor $32.8 million because it severed their partnership after the state of Texas required it to bus migrants to Democratic-controlled areas.
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January 10, 2025
Technical, Logistical Issues Landed Silver Airways In Ch. 11
Dragged down by technical and logistical snafus with its aircraft, Silver Airways spiraled into insolvency and filed for Chapter 11 protection in the final days of 2024 in hopes of closing a going-concern sale, but without any illusions of clearing the $457 million in debt on its balance sheet.
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January 10, 2025
Under The Radar: Bankruptcy News You May Have Missed
Solar power company iSun asked to switch its bankruptcy proceedings to a Chapter 7, after finding that it couldn't afford its Chapter 11 plan. Nash Engineering Co.'s Chapter 7 trustee asked a bankruptcy judge to sign off on a $9 million settlement with two insurers that had bought back their policies in 2020. And the Second Circuit put out the call for would-be bankruptcy judges to submit their applications to sit on the bench in Manhattan.
Meet The Attys Moving Wynne Transportation Through Ch. 11
Wynne Transportation Holdings LLC has secured the help of attorneys from Landis Rath & Cobb LLP to see it through a restructuring in the wake of an arbitrator's judgment that the company must pay a former subcontractor $32.8 million, which came after the state of Texas required the debtor to bus migrants to Democrat-controlled areas.
Strong Demand Couldn't Stave Off Ch. 11 For Wynne
Before it filed for bankruptcy Friday, Wynne Transportation appeared to be in healthy financial shape — if it weren't for project delays and litigation with a former subcontractor tied to a state government contract to bus migrants out of Texas.
Giuliani Held In Contempt Again, EPA Slams $535M Talc Deal
Former New York City Mayor Rudy Giuliani was held in contempt for a second time, Johnson & Johnson's bankrupt spinoff called Brown Rudnick's bid to represent an official committee of talc claimants "an ethical violation," and the federal government objected to a $535 million settlement that bankrupt talc supplier Whittaker Clark & Daniels reached regarding talc claims in its New Jersey Chapter 11 case.
Expert Analysis
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No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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3 Factors Affecting Retail M&A Deals In 2025
Retailers considering mergers and acquisitions this year face an evolving antitrust environment, including a new administration under President-elect Donald Trump, revised merger guidelines and a precedent set last year by a canceled $8.5 billion handbag merger, say attorneys at DLA Piper.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Consultants Should Be Aware Of DOJ's Potential New Reach
The U.S. Department of Justice's recent first-of-its-kind settlement with McKinsey & Co. indicates not only the DOJ's more aggressive stance toward businesses' potential criminal wrongdoings, but also the benefits of self-disclosure and cooperation when wrongdoing becomes apparent, says Dom Caamano at Kibler Fowler.
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Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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An Associate's Guide To Career Development In 2025
As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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Justices May Find Gov't Can Keep Fraudulent Transfer Benefit
Based on the justices' questions at the recently argued U.S. v. Miller, the Supreme Court appears prepared to hold that the U.S. — unlike any other creditor — is permitted to retain the benefits of a fraudulent transfer to the detriment of other bankruptcy creditors, says Kevin Morse at Clark Hill.
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When US Privilege Law Applies To Docs Made Outside The US
As globalization manifests itself in disputes over foreign-created documents, a California federal court’s recent trademark decision illustrates nuances of both U.S. privilege frameworks and foreign evidentiary protections that attorneys must increasingly bear in mind, say attorneys at Hunton.