Bankruptcy

  • March 29, 2024

    Giuliani Says He Could Be 'Homeless' If Florida Condo Is Sold

    Rudy Giuliani said the official committee of unsecured creditors in his Chapter 11 case has overstepped its powers by asking a New York bankruptcy judge to force the sale of his Florida condo, a move that the former New York City mayor said could add him to "the ranks of the homeless."

  • March 29, 2024

    NY Bar Assoc. Building Owner Says Ch. 11 Filings Legit

    The company that controls the historic New York County Lawyers Association Building in Manhattan has asked a New Jersey bankruptcy judge to reject a lender's motion to dismiss its Chapter 11 proceedings, asserting that the cases were not merely filed to halt a foreclosure sale.

  • March 29, 2024

    Up Next After Bankman-Fried Sentencing: FTX Cooperators

    Now that FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison for an $11 billion fraud on the collapsed crypto exchange, it's time for the three top lieutenants who testified against him at trial to face their own judgments — and experts say the cooperators are well positioned to avoid jail time.

  • March 29, 2024

    Epiq Says Chubb Owes Costs In Clergy Abuse Data Leak Case

    Epiq Corporate Restructuring LLC has sued Chubb-affiliated insurers in Connecticut federal court seeking to be reimbursed for $2.5 million in settlement costs and roughly $1.8 million for its defense of litigation over Epiq's disclosure of sex abuse survivors' names in a Chapter 11 case.

  • March 28, 2024

    FTX Investors To Settle With Ex-Execs, Crypto Promoters

    Investors who launched a multidistrict litigation over cryptocurrency exchange FTX's collapse have reached a set of settlements with the former inner circle of founder Sam Bankman-Fried as well as seven promoters who, together, have agreed to pay over $1.3 million to resolve claims that they boosted a massive fraud scheme at the company.

  • March 28, 2024

    Judge Grants Request To Halt Camden Diocese Ch. 11 Plan

    A New Jersey bankruptcy judge agreed Thursday to freeze the implementation of the Roman Catholic Diocese's Chapter 11 plan, saying he does not want any action of the diocese to try and moot an appeal by insurance carriers.

  • March 28, 2024

    Fruit Grower Cleared To Leave Ch. 11 With $43M Exit Loan

    California stone fruit producer Prima Wawona is set to wind down its packing and distribution division, hand ownership of the reorganized company to creditors and leave bankruptcy after a Delaware bankruptcy judge agreed to approve its Chapter 11 plan Thursday.

  • March 28, 2024

    Faruqi & Faruqi Beats 5 Firms To Lead NewAge Investor Suit

    A Colorado district judge has selected two clients of Faruqi & Faruqi LLP to lead an investor class action accusing the executives and directors of wellness company NewAge Inc. of securities fraud, saying the plaintiff with an even bigger financial interest is unfit for appointment because he hid his "troubling" background.

  • March 28, 2024

    Auto Parts Mogul Must Face Lender's $127M Trust Fraud Suit

    An auto parts mogul must face allegations that he tampered with assets in a trust that owes hundreds of millions of dollars to a lending agent, a Michigan federal judge said this week after ruling the lender has plausibly alleged the mogul made fraudulent transfers to hinder the debt repayment.

  • March 28, 2024

    Rite Aid Says It Has Creditor Deal, Gets OK For Plan Vote

    A New Jersey bankruptcy judge Thursday gave Rite Aid the go-ahead to send its Chapter 11 plan out for a creditor vote after hearing it has reached a $47.5 million deal with unsecured creditors and is close to a settlement on state and federal claims over drug sales.

  • March 28, 2024

    Pillsbury Ducks Malpractice Suit At 3rd Circ. Over Bankruptcy

    A Third Circuit panel on Thursday shot down a bid from a group of hotel investors to sue Pillsbury Winthrop Shaw Pittman LLP for malpractice, finding a Delaware bankruptcy court was right in denying the request sought months after a Chapter 11 plan had been finalized.

  • March 28, 2024

    Ohio Justices Split On Attorney's Sanction For Hiding His Past

    The Ohio Supreme Court has given a Cleveland attorney a six-month stayed suspension for omitting information in his application for a physician assistant license about multiple name changes and prior proceedings against him for having child pornography on his computer, which he had created via photo editing to demonstrate a point while serving as a defense expert.

  • March 28, 2024

    Bankruptcy Partner Joins Saul Ewing In LA From Danning Gill

    Saul Ewing LLP has picked up a complex business bankruptcy, restructuring and insolvency partner for its Los Angeles office who spent much of his legal career with Danning Gill Israel & Krasnoff LLP.

  • March 28, 2024

    Bankman-Fried Gets 25 Years For 'Very Bad Bet' Of FTX Fraud

    FTX founder Sam Bankman-Fried was sentenced Thursday to 25 years in prison for stealing more than $11 billion from customers, investors and lenders of his now-collapsed cryptocurrency empire, with a Manhattan federal judge saying the infamous risk-taker "made a very bad bet about the likelihood of getting caught."

  • March 27, 2024

    Sedgwick Trustee's Valuation Of Firm Flawed, Judge Told

    An accounting expert hired by two ex-partners fighting the Sedgwick LLP trustee's bid to claw back $1.1 million testified at the close of a three-day California bench trial Wednesday that the trustee expert's valuation analysis is "materially flawed" and took a "sledgehammer" to the law firm's book value.

  • March 27, 2024

    NC Commissioner Says Insurance Mogul's Argument 'Mistaken'

    The North Carolina insurance commissioner asked the state's Supreme Court on Tuesday to allow him to give his take on a group of insurers' lawsuit against embattled mogul Greg Lindberg that alleges he pilfered the insurance companies as owner, saying if the court lets him submit an amicus brief he'll explain how Lindberg's main argument is "mistaken."

  • March 27, 2024

    BlockFi Wins Approval Of 'Tremendous' Deal With FTX

    A New Jersey bankruptcy judge gave his blessing on Wednesday to a global settlement that ends disputes between fallen cryptocurrency giants BlockFi Inc. and FTX, saying the results were "tremendous."

  • March 27, 2024

    Yellow Corp. Pension Fund Liability To Be Decided In Ch. 11

    A Delaware bankruptcy judge on Wednesday denied the Pension Benefit Guaranty Corp.'s bid to take a dispute with Yellow Corp. over $7.8 billion in retirement fund withdrawal liability claims to arbitration, finding the dispute would be best resolved through the trucking firm's Chapter 11 claims allowance process.

  • March 27, 2024

    Camden Diocese Insurers Demand Ch. 11 Plan Be Halted

    Several insurers of the Roman Catholic Diocese of Camden told a New Jersey bankruptcy judge Wednesday that the approval of the debtor's third modified Chapter 11 plan stripped the insurers' rights and urged the court to implement a stay on the order.

  • March 27, 2024

    McDermott Completes Global Restructuring

    Texas-based energy industry construction firm McDermott International has announced the company successfully completed its cross-border restructuring in the Netherlands and the U.K., noting it has arranged to extend its debt maturities by three years and resolve arbitration liabilities.

  • March 27, 2024

    11th Circ. Affirms Experian's Win In Credit Reporting Suit

    The Eleventh Circuit has determined a district court didn't err in evidentiary rulings in a case brought by a Florida resident against Experian Information Solutions Inc. alleging it inaccurately reported a discharged mortgage in his credit history, upholding a verdict in favor of the company.

  • March 27, 2024

    Troika Media Can Exit Ch. 11 After Settlement And Lender Sale

    Marketing firm Troika Media Group Inc. is set to exit bankruptcy before the end of the month after a New York bankruptcy judge Wednesday said he would approve its Chapter 11 plan to sell itself as a going concern and settle pre-bankruptcy legal disputes.

  • March 27, 2024

    Piracy Claims Against Bankrupt ISP Frontier Can Go Forward

    A New York bankruptcy judge Wednesday said a group of copyright holders can go to trial with claims internet service provider Frontier Communications is liable for failing to cut off customers who downloaded pirated music and movies.

  • March 27, 2024

    Terraform Loses Mistrial Bid After Rakoff Query About 'Lying'

    Manhattan U.S. District Judge Jed S. Rakoff on Wednesday rejected a mistrial bid by counsel for Terraform Labs and creator Do Kwon centering on the judge's move to ask an investor if the bankrupt crypto startup had disclosed potential risks about "lying" to the public.

  • March 26, 2024

    Judge To Let McDermott Investors Seek 2-Subclass Cert.

    A Texas federal judge has declined to certify a proposed class of investors in energy industry engineering company McDermott International Inc., siding with a magistrate judge who recommended dismissing the class certification bid so the investors could refile and seek certification for two investor subclasses.

Expert Analysis

  • Opinion

    Litigation Funding Disclosure Should Be Mandatory

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    Despite the Appellate Rules Committee's recent deferral of the issue of requiring third-party litigation funding disclosure, such a mandate is necessary to ensure the even-handed administration of justice across all cases, says David Levitt at Hinshaw.

  • Recalling USWNT's Legal PR Playbook Amid World Cup Bid

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    As the U.S. Women's National Soccer Team strives to take home another World Cup trophy, their 2022 pay equity settlement with the U.S. Soccer Federation serves as a good reminder that winning in the court of public opinion can be more powerful than a victory inside the courtroom, says Hector Valle at Vianovo.

  • The State Of Student Loan Debt In Bankruptcy

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    With student loan debt in the spotlight following the U.S. Supreme Court's recent decision to block President Joe Biden's forgiveness plan, it's an apt time to review how student loans are treated in bankruptcy and why very few are discharged, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.

  • SVB Bankruptcy Case Raises Asset Control Questions

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    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.

  • Who Owns Crypto Assets? Know The Bankruptcy Risks

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    Amid a wave of recent crypto custodian Chapter 11 filings, the legal character of customer deposits give rise to a deluge of questions, because in the absence of a concrete regulatory regime, the terms and conditions are likely going to be how the court determines legal rights, says Heidi Hockberger at Levenfeld Pearlstein.

  • An In-Depth Look At FDIC Reform Options After Bank Failures

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    Anthony Pirraglia and Melissa Hall at Loeb & Loeb explain the three coverage options for reforming the deposit insurance system, which were proposed in a recent report from the Federal Deposit Insurance Corp. in the wake of the Silicon Valley Bank and Signature Bank failures.

  • Ch. 11 Ruling Informs On Social Media Ownership Rights

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    Social media users now have useful guidance regarding account ownership rights following a federal bankruptcy court's recent ruling in the Vital Pharmaceuticals Chapter 11 case, which rejected the notion that advertised content alone could create a presumption of ownership for the advertised business, say Deborah Enea and Thomas Dockery at Troutman Pepper.

  • Perspectives

    Mallory Gives Plaintiffs A Better Shot At Justice

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    Critics of the U.S. Supreme Court's recent decision in Mallory v. Norfolk Southern claim it opens the door to litigation tourism, but the ruling simply gives plaintiffs more options — enabling them to seek justice against major corporations in the best possible court, say Rayna Kessler and Ethan Seidenberg at Robins Kaplan.

  • Effectual Relief Questions Linger After Section 363 Ruling

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    In the months since the U.S. Supreme Court's ruling in MOAC Mall Holdings, courts and practitioners must grapple with the issue of what effectual relief courts may grant upon an appeal of an unstayed sale order, says Monique Jewett-Brewster at Hopkins Carley.

  • Blockchain Utopia Dream Fades Following Gemini Fraud Suit

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    Cryptocurrency exchange Gemini’s recent filing of a fraud suit against Digital Currency Group, coupled with industrywide bankruptcy complications and regulatory scandals, may signal the end of the dream of a utopian, decentralized financial future, says Christopher Ott at Loeb & Loeb.

  • Courts Can Overturn Deficient State Regulations, Too

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    While suits challenging federal regulations have become commonplace, such cases against state agencies are virtually nonexistent, but many states have provisions that allow litigants to bring suit for regulations with inadequate cost-benefit analyses, says Reeve Bull at the Virginia Office of Regulatory Management.

  • Tales From The Trenches Of Remote Depositions

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    As practitioners continue to conduct depositions remotely in the post-pandemic world, these virtual environments are rife with opportunities for improper behavior such as witness coaching, scripted testimony and a general lack of civility — but there are methods to prevent and combat these behaviors, say Jennifer Gibbs and Bennett Moss at Zelle.

  • Tide May Be Turning On Texas Two-Step Bankruptcy Strategy

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    Recent developments in several high-profile bankruptcy cases suggest that the use of the Texas Two-Step to shield solvent companies from tort claims may be falling out of favor, but until the U.S. Supreme Court hears one of these cases the strategy will remain divisive and the subject of increased scrutiny, say attorneys at Rivkin Radler.

  • Vice Bankruptcy Ruling Shows Contract Assignment Issues

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    A New York bankruptcy court’s recent ruling in Vice Media’s Chapter 11 case is likely to have implications for other cases involving the assignment of contracts by corporate entities, and may signal that Showtime will still face an uphill battle in trying to prove that its contract constituted personal services, says Debra Dandeneau at Baker McKenzie.

  • Level Up Lawyers' Business Development With Gamification

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    With employee engagement at a 10-year low in the U.S., there are several gamification techniques marketing and business development teams at law firms can use to make generating new clients and matters more appealing to lawyers, says Heather McCullough at Society 54.

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