Mid Cap
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October 08, 2024
Judge Puts US Trustee's Depo On Ice In Judge Romance Suit
A Houston judge Tuesday put Jackson Walker's deposition of the U.S. Trustee for the Texas divisions of the bankruptcy watchdog on hold while he considers whether a Justice Department guideline applies to the ongoing dispute surrounding a former Texas bankruptcy judge's secret relationship with an ex-partner of the firm.
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October 08, 2024
Ex-Girardi Keese CFO Inks Plea Deal Over Firm Embezzlement
Girardi Keese's former Chief Financial Officer Christopher K. Kamon reached a plea agreement Tuesday with Los Angeles federal prosecutors, who allege he spearheaded a "side fraud" that bilked millions of dollars from the embattled law firm's accounts behind disbarred attorney Tom Girardi's back.
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October 08, 2024
Meet The Attorneys Directing Dental Laser Co. Biolase's Ch. 11
Biolase Inc., which makes laser systems used by dentists, has retained teams from Potter Anderson & Corroon LLP and Pillsbury Winthrop Shaw Pittman LLP as it plans for a swift sale during its Chapter 11 case.
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October 08, 2024
1st Circ. Warned Not To 'Speculate' In Union Debt Ceiling Suit
A lawyer for a governmental workers' union challenging the constitutionality of the federal debt limit told a First Circuit panel on Tuesday that a January default is a virtual certainty under existing law, and urged the judges to avoid trying to predict whether President Joe Biden and a lame-duck Congress might extend the ceiling.
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October 08, 2024
Wiggin Adds Restructuring Practice Chair In NY
Wiggin and Dana LLP said Tuesday that it has hired a partner to chair the firm's newly organized restructuring practice in New York, as well as a new special counsel for that group.
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October 08, 2024
Texas Class Wants Funding Firms To Face Hurricane Ad Suit
A Texas magistrate judge was wrong to recommend dropping litigation funding companies from a suit alleging a law firm deceptively advertised to hurricane victims, with a proposed class of storm victims arguing the funders must have been aware of the scheme when they loaned the firm $20 million.
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October 07, 2024
Music Label Says 2 Live Crew Songs Were Works For Hire
The owner of music label Lil' Joe Records took the stand Monday as he began to make the case that the members of hip-hop group 2 Live Crew were employees, not independent contractors, when they produced their hits and therefore cannot claw back their rights to the recordings.
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October 07, 2024
FTX Wins Plan Approval, Diamond Sports Drops MLB Deals
FTX will start repaying customers using up to $16.5 billion in assets that the fallen cryptocurrency company has recovered since filing for bankruptcy in November 2022, after a Delaware bankruptcy judge blessed FTX's reorganization plan at a hearing Monday.
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October 07, 2024
Aircraft Co. Says Insurers Owe $222M For Lost Jets In Russia
An aircraft lessor said its insurers and underwriters are on the hook for more than $222 million in losses stemming from two aircraft that have been stranded in Russia since its invasion of Ukraine, telling a Connecticut state court the total loss of the aircraft warrants coverage.
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October 07, 2024
Vendor Says Rue21 Skipped $2M In Bills For Clothing
A Los Angeles-based clothing supplier has sued Rue21, saying the fashion retailer stiffed it on $300,000 worth of invoices and is on the hook for $1.7 million to another vendor.
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October 07, 2024
Heart Monitor, Trucking Firms Lead MidCap Filings This Week
Several midcap companies filed for bankruptcy protection within the past week, spanning industries that include the medical device and transportation spaces.
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October 07, 2024
Judge Agrees To OK Tender Greens' $28M Credit Bid Sale
One Table Restaurant Brands LLC, the Los Angeles-based operator of casual restaurant chain Tender Greens and Mexican eatery Tocaya, received a Delaware bankruptcy judge's interim approval Monday to sell its assets to a private equity-backed stalking horse bidder for a $28 million credit bid.
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October 04, 2024
Private Utility Blasts Pa. City's Ch. 9 Plan As Asset Grab
Private utility entity Aqua Pennsylvania asked a Pennsylvania bankruptcy judge to reject the City of Chester's proposed Chapter 9 plan, saying the city is trying to "commandeer" water and sewer assets in which Aqua has an interest.
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October 04, 2024
MLB's Storied History Runs Through The Bankruptcy Court
With the value of professional sports teams skyrocketing over the last decade, it's hard to imagine a Major League Baseball club having to file for bankruptcy. But it's happened at least five times since 1970 for a variety of reasons, and the teams that have taken advantage of the bankruptcy courts have charted much different paths post-insolvency.
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October 04, 2024
EB-5 Partner Accuses NC Atty Of Aiding Investor Coup
A company created to protect an investment project supporting green card applications for Chinese nationals accused a North Carolina attorney in state court of helping shareholders try to place the company into receivership and take control of a $30 million fund.
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October 04, 2024
Ex-Judge Jones Says Judicial Acts Bar Atty Romance Claims
Former bankruptcy judge David R. Jones said judicial immunity bars claims over his undisclosed romantic relationship with a former Jackson Walker LLP attorney because the purported harm to the onetime head of a now-shuttered barge company stemmed from official acts.
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October 04, 2024
Ex-Skadden Partner Leaves Retirement, Joins AY Strauss
Commercial real estate boutique A.Y. Strauss announced Thursday that it had hired a former Skadden Arps Slate Meagher & Flom LLP litigator who is returning to the legal field after retiring in 2020.
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October 03, 2024
Biden Admin's Latest Debt Relief Plan Blocked In Missouri
A Missouri federal judge Thursday blocked the Biden administration's latest student debt relief proposal, finding that the six Republican-led states leading the challenge will likely show the plan is unlawful, just a day after a Georgia federal judge knocked the Peach State out and punted the case to St. Louis.
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October 03, 2024
Bankruptcy Doesn't Pause Tipster's Case, Tax Court Says
A tax tipster's bankruptcy filing doesn't pause his U.S. Tax Court case challenging the Internal Revenue Service's denial of his request for a whistleblower award, the Tax Court ruled Thursday, saying the award case doesn't concern his tax liability.
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October 03, 2024
2 Years After Crypto Collapse, Silvergate Seeks Coda In Ch. 11
Cryptocurrency-focused bank Silvergate's parent company recently filed for Chapter 11 protection, roughly two years since it weathered a crypto market crash, avoiding a failure and seeking to wind down its operations on its own terms.
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October 03, 2024
Allred Feud With Ex-Tenant Over 'Large Rodent' Puzzles Judge
Gloria Allred's long-running dispute with a former tenant — who said he fled rats in her Manhattan apartment eight years ago — spilled into New York federal court Monday, leaving the judge to wonder aloud why the celebrity attorney was still suing the man over a $25,000 claim as he sought bankruptcy protection.
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October 03, 2024
Sham Law Firm Employee Gets 5 Years For Foreclosure Fraud
A Virginia man was sentenced to five years in prison and hit with a $159,000 fine for what a D.C. federal judge called Thursday the "horrendous" crime of using a Manassas law firm to defraud homeowners facing foreclosure.
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October 03, 2024
Giuliani's Fla. Condo Is Not Off Limits, Ga. Poll Workers Say
Two Georgia women who Rudy Giuliani accused of committing ballot fraud in the 2020 presidential election say his $3.5 million Florida condominium should be sold to help cover their $148 million defamation win against him, arguing he never established a "homestead" there before they brought a lien.
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October 03, 2024
Dental Laser Co. Can Tap $5M DIP For Swift Ch. 11 Sale Plans
Biolase Inc., which makes laser systems used by dentists, received a Delaware bankruptcy judge's approval Thursday to access $1.4 million of an up to $5 million debtor-in-possession package as it plans for a quick sale in Chapter 11.
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October 03, 2024
Climate Data Co. BAWT Loses Bid For Rapid Ch. 11 Exit
BAWT Enterprises LLC, the parent company of climate-data firm Athenium Analytics, on Thursday failed to persuade a Delaware bankruptcy judge to let it seek confirmation of a Chapter 11 restructuring just 15 days after opening its case, with a dissenting creditor's protests gumming up the speedy exit plan.
Expert Analysis
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Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares
In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.
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No Matter The Purdue Ruling, Mass Tort Reform Is Needed
The U.S. Supreme Court will soon issue its opinion in the bankruptcy of Purdue Pharma LP, and regardless of the outcome, it’s clear legal and policy reforms are needed to address the next mass tort, says William Organek at Baruch College.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Insurers Have A Ch. 11 Voice Following High Court Ruling
The U.S. Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Gypsum — which reaffirmed a broad definition of "party in interest" — will give insurers, particularly in mass tort Chapter 11 bankruptcies, more opportunity to protect their interests and identify problems with reorganization plans, says George Singer at Holland & Hart.
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Considerations For Cooperation Contracts In Loan Trades
Significant challenges to settling trades can arise when lenders of syndicated bank loans enter into defense-oriented cooperation agreements, which are growing in popularity, but working through these issues on the front end of a trade can save hours down the road, says Robert Waldner at Crowell & Moring.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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9th Circ. Clarifies ERISA Preemption For Healthcare Industry
The Ninth Circuit's recent ruling in Bristol SL Holdings v. Cigna notably clarifies the broad scope of the Employee Retirement Income Security Act's preemption of certain state law causes of action, standing to benefit payors and health plan administrators, say attorneys at Troutman Pepper.
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NY Combined Hearing Guidelines Can Shorten Ch. 11 Timeline
The Southern District of New York’s recently adopted guidelines on combining the processes for Chapter 11 plan confirmation and disclosure statement approval may shorten the Chapter 11 timeline for companies and reduce associated costs, say Robert Drain and Moshe Jacob at Skadden.
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A Healthier Legal Industry Starts With Emotional Intelligence
The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.
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5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant
In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.
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Bankruptcy Courts Have Contempt Power, Del. Case Reminds
A Delaware bankruptcy court recently held Camshaft Capital and its principal in contempt, serving as a reminder to bankruptcy practitioners and anyone else that appears before a bankruptcy judge that there are serious consequences for failing to comply with court orders, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.
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What Lies Behind Diverging US And UK Insolvency Trends
Contrasting U.K. and U.S. insolvency trends highlight the importance of policy interventions in shaping consumer financial outcomes and economic recovery, and while the U.K.'s approach seems to have mitigated issues, the U.S. faces challenges exacerbated by economic conditions and policy transitions, says Thomas Curran at Thomas H. Curran Associates.