Bankruptcy

  • August 29, 2024

    Judiciary Group Urged To Table 'Mega' Bankruptcy Panel Ban

    A subcommittee urged the Judicial Conference's bankruptcy rule advisory committee to hold off on considering a ban on so-called mega bankruptcy panels at an upcoming meeting, saying a different committee's work overlaps with a rule proposed to curb the controversial practice.

  • August 29, 2024

    50 Cent's Liquor Biz Wins Ch. 7 Fight Over Ex-Boss's House

    A onetime international liquor trader for rap artist 50 Cent's booze business has lost a bid to protect his Connecticut residence from Sire Spirits LLC's attempt to recover a $7 million New York fraud judgment, with a bankruptcy judge applying a lower state homestead exemption than the indebted trader requested.

  • August 29, 2024

    Apple, Meta Appeal Guo Judge's 2nd Clawback Extension

    Apple and Meta are appealing a Connecticut bankruptcy judge's order giving the Chapter 11 trustee overseeing the estate of Miles Guo an additional six months to file suits to claw back payments made by the exiled Chinese billionaire before his bankruptcy.

  • August 29, 2024

    SunPower Eyes Sept. Auction As IP Objection Nixed For Now

    A Delaware bankruptcy judge on Thursday overruled an objection to bidding procedures for the assets of residential solar technology company SunPower Corp. from a former subsidiary, finding the dispute over use of the SunPower brand should be heard later.

  • August 29, 2024

    Bankruptcy Judge Allows Red Lobster To Reject 23 Leases

    Troubled seafood chain Red Lobster gained a Florida bankruptcy judge's approval for its proposal to reject leases of an additional 23 restaurant locations slated to close at the end of the month.

  • August 28, 2024

    Fla. Bank City National Says Applebee's Franchisees Owe $8M

    City National Bank of Florida sued a Louisiana-based Applebee's franchisee and three of its subsidiaries for $8.3 million, saying in a complaint filed Wednesday in Florida federal court that the companies defaulted on a federal COVID-19-era loan and then transferred control of their restaurants without consent.

  • August 28, 2024

    Jazz, Hikma Must Face Bulk Of Xyrem Antitrust Suit

    Jazz Pharmaceuticals and Hikma Pharmaceuticals appear bound for trial against most solo insurer and class action antitrust claims over alleged efforts to block generic competitors to Jazz's Xyrem narcolepsy drug, under a newly unsealed California federal court order largely rejecting competing motions for summary judgment.

  • August 28, 2024

    Calif. Debt Relief Firm Ran Criminal Enterprise, Judge Says

    A California bankruptcy judge ruled Tuesday that the defunct Orange County debt relief law firm Litigation Practice Group operated a "criminal enterprise" and possibly a Ponzi scheme, a finding that representatives for the firm's court-appointed bankruptcy trustee say they will use to claw money back from investors.

  • August 28, 2024

    Justices Won't Revive Student Debt Relief Plan Right Now

    The U.S. Supreme Court on Wednesday refused to reinstate President Joe Biden's latest student loan debt relief program, leaving the $475 billion plan on ice until the Eighth Circuit decides whether the administration has the authority to continue its new push to reduce student loan bills for millions of people.

  • August 28, 2024

    Farella Braun Can Pursue Unpaid SVB Fees From FDIC

    Farella Braun & Martel LLP can go after the Federal Deposit Insurance Corp. for $49,000 in legal fees owed by Silicon Valley Bank's parent after the agency was appointed as the bank's receiver, a California federal judge ruled Wednesday.

  • August 28, 2024

    Boy Scout Abuse Trust Art Sales To Start In November

    An auction house announced Wednesday that parts of the Boy Scouts of America's former art collection, including a number of Norman Rockwell pieces, will go on the auction block in November to pay for claims by sexual abuse survivors.

  • August 27, 2024

    Guo Trustee Says Trump Aide Must Face $353K Clawback Suit

    The Chapter 11 trustee for Miles Guo has urged a Connecticut bankruptcy judge to preserve an adversary action seeking to claw back more than $353,000 that he alleged the Chinese exile fraudulently gave to Jason Miller, a senior adviser to Donald Trump and founder of conservative social media platform Gettr, saying Miller's bid to ax the case was flimsy.

  • August 27, 2024

    Chancery Voids Bank Board Picks In Scheduling Suit

    A Delaware Chancery Court judge on Tuesday invalidated an annual meeting where a board election was held by directors of Golden Mountain Financial Holdings, restoring the preelection boards of the venture, which emerged from the bankruptcy of First NBC Bank Holding Co.

  • August 27, 2024

    Asbestos Claimants Tell 4th Circ. Bestwall Isn't Distressed

    The official committee of asbestos claimants in the Chapter 11 case of Georgia-Pacific unit Bestwall told the Fourth Circuit that the company's bankruptcy should be tossed because commitments to fund asbestos liabilities by the parent mean the debtor isn't facing financial distress.

  • August 27, 2024

    Madison Ave. Condo Owners File New Ch. 11

    The corporate owner of a luxury Manhattan condominium complex has filed for Chapter 11 in a New York bankruptcy court in what it says is an attempt to resolve the disputed bankruptcy filing of the partnership that owns the corporation.

  • August 27, 2024

    Tobacco Co-Op's $10M Insurance Suit Headed To Mediation

    Tobacco grower cooperative U.S. Tobacco Cooperative Inc. will go into mediation with Axis Specialty Insurance Co. as part of a lawsuit brought by the grower alleging the insurer has refused to pay $10 million in excess coverage.

  • August 27, 2024

    Jackson Walker Is Trying To 'Revise History,' US Trustee Says

    Jackson Walker LLP told a Houston judge Tuesday that the U.S. Trustee's Office "wants everyone to play by the rules except for [itself]" in a discovery dispute connected to a former Texas bankruptcy judge's secret relationship, as the bankruptcy watchdog simultaneously accused the firm of chasing down rumors to "revise history" through overbroad discovery requests.

  • August 27, 2024

    Disbarred Atty Tom Girardi Convicted Of Defrauding Clients

    A California federal jury on Tuesday convicted disbarred attorney Tom Girardi on all four counts of wire fraud, finding that the former titan of the plaintiffs bar misappropriated $15 million of his clients' settlement funds.

  • August 26, 2024

    Girardi Lied 'Over And Over,' Jury Told As Fraud Trial Wraps

    A federal prosecutor told a California federal jury during closing arguments in Tom Girardi's criminal fraud trial Monday that the now-disbarred attorney lied to his clients "over and over and over again" in order to misappropriate millions of their settlement money as part of a yearslong Ponzi scheme.

  • August 26, 2024

    Pool Co. Secures $1.1M In Fees For False Ad Trial Win

    A North Carolina federal judge has granted $1.1 million in fees for attorneys from McCarter & English LLP and Womble Bond Dickinson who represented a swimming pool salt system supplier in a trial against a competitor, finding the case qualifies as exceptional since the opposing company acted "unreasonably."

  • August 26, 2024

    US Trustee Raises Release Concerns With FTX Ch. 11 Plan

    The U.S. Trustee's Office has lodged an objection to FTX's Chapter 11 plan with 10 reasons why the proposed resolution for the mammoth crypto bankruptcy is flawed, including releases that are overbroad and don't carve out a high-profile data breach from their terms.

  • August 26, 2024

    Conn. Diocese Seeks Mediation Over Competing Ch. 11 Plans

    The Roman Catholic Diocese of Norwich, Connecticut, told a bankruptcy judge that a Chapter 11 plan proposed by unsecured creditors is unconfirmable and fighting over competing plans will drain estate resources, and that renewed mediation over how to address childhood sexual abuse liability is the only path forward.

  • August 26, 2024

    Judge Won't Eject Trustee From Irish Developer's $942M Ch. 7

    A Connecticut bankruptcy judge has denied a nearly two-and-a-half-year-old motion to remove a Chapter 7 trustee from an Irish developer's $942 million bankruptcy, saying the developer's appellate losses and a recent U.S. Supreme Court certiorari denial, ultimately favoring the trustee, left the motion finally ripe for a decision.

  • August 26, 2024

    Texas Cases To Watch In Last Half Of 2024

    Courts across the state are poised to make decisions in several high-stakes cases over the next several months, including ruling on whether Texas Attorney General Ken Paxton can be deposed in a long-running employment retaliation suit and whether a challenge to Texas' floating Rio Grande barrier must be tried before a jury. 

  • August 26, 2024

    Texas Bitcoin Miner Hits Ch. 11 With More Than $50M In Debt

    Cryptocurrency miner Rhodium filed for Chapter 11 protection in a Texas bankruptcy court with more than $50 million in debt.

Expert Analysis

  • 3 Leadership Practices For A More Supportive Firm Culture

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    Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.

  • Loper Bright Limits Federal Agencies' Ability To Alter Course

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    The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.

  • Series

    Teaching Scuba Diving Makes Me A Better Lawyer

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    As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

  • 3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy

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    The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.

  • Opinion

    Congress Must Increase Small Biz Ch. 11 Debt Cap

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    Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Series

    Rock Climbing Makes Me A Better Lawyer

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    Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.

  • Ch. 11 Ruling Clarifies Cross-Border 'Alternative A' Scope

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    A New York bankruptcy court’s recent ruling in airline holding company SAS’s Chapter 11 case — addressing the applicability of Alternative A, which is similar to Section 1110 of the U.S. Bankruptcy Code — is a cautionary tale for contracting European Union member states that have adopted Alternative A domestically but have not made a formal declaration, say attorneys at Pillsbury.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.

  • Series

    Being A Luthier Makes Me A Better Lawyer

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    When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.

  • Lead Like 'Ted Lasso' By Embracing Cognitive Diversity

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    The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.

  • Ambiguity Ruling Highlights Deference To Arbitral Process

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    A New York federal court’s recent ruling in Eletson v. Levona, which remanded an arbitral award for clarification, reflects that the ambiguity exception’s analysis is not static and may be applied even in cases where the award, when issued, was unambiguous, says arbitrator Myrna Barakat Friedman.

  • Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers

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    The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.

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