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Bankruptcy
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October 02, 2024
Quinn Emanuel Can't Ignore Past Oro Negro Ties, Oil Co. Says
Oro Negro Drilling Pte. Ltd. said former counsel Quinn Emanuel Urquhart & Sullivan LLP must produce confidential information in a discovery bid to disqualify its attorneys in Mexican proceedings.
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October 02, 2024
Conn. Receiver Gains Access To Apt. Co-Op's BofA Accounts
Bank of America agreed to provide a court-appointed receiver with access to a distressed housing cooperative's bank accounts Wednesday amid efforts by the municipalities of Bridgeport and Stratford, Connecticut, to obtain a court order.
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October 02, 2024
Fort Worth Senior Home Hits Ch. 11 With Prepackaged Plan
The owner of a Fort Worth, Texas, retirement home filed for Chapter 11 with a prepackaged plan that would refinance its $112 million of municipal bond obligations.
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October 01, 2024
Foley & Lardner Accused Of Malpractice In GWG Transactions
Foley & Lardner LLP did not heed the fiduciary duty it owed to GWG Holdings when it facilitated loans and other transactions unfair to the life insurance-backed bond seller and, instead, enriched a group of "corrupt" shareholders, according to a lengthy adversary lawsuit filed in Texas bankruptcy court.
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October 01, 2024
Fla. Judge Sends 2 Live Crew Rights Dispute To Jury
A Florida federal judge has trimmed trademark and copyright infringement claims from a suit by music label Lil' Joe Records against members of the hip-hop group 2 Live Crew but said he would send the issue of whether the termination of the label's rights to the songs was effective to a jury next week.
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October 01, 2024
Vermont Diocese Files Bankruptcy, Facing Sex-Abuse Claims
The Roman Catholic Diocese of Burlington, Vermont, has become the latest U.S. Catholic diocese to file for Chapter 11 protection due to sexual abuse claims, saying it is the fairest way to deal with legal claims it is facing after a state statute of limitations was removed.
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October 01, 2024
Most TA Dispatch Claims Fall In Chancery Celadon Suit
Alabama trucking and transport management company TA Dispatch LLC saw three of its four claims tossed Tuesday from its Delaware Court of Chancery suit seeking millions in damages from directors and officers of a transport and logistics company that went bankrupt shortly after selling TA Dispatch severely hobbled assets.
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October 01, 2024
Steward Can't Be Forced To Reassign Contract In Ch. 11
While a government contractor was within its rights to end a subcontracting agreement with embattled hospital group Steward Health, the Bankruptcy Code's provisions for assignment of contracts mean the debtor can't be compelled to reassign the agreement while in Chapter 11, a Texas bankruptcy judge said Tuesday.
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October 01, 2024
Client's Late Arrival, Bankruptcy Complicate Age Bias Suit
The co-owner for a bankrupt Pittsburgh hotel almost lost his lawyer Tuesday, arriving late and introducing himself to the attorney for the first time in person at a hearing on the attorney's motion to withdraw from defending him against an ex-employee's age bias claim.
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October 01, 2024
McElroy Deutsch Must Face 'Malicious' Claim From Fired Exec
A former business development director from McElroy Deutsch Mulvaney & Carpenter LLP has been given the go-ahead from a New Jersey state judge to bring a malicious-prosecution claim against the firm in litigation over her and her husband's alleged multimillion-dollar embezzlement from the firm.
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October 01, 2024
Judge Backs Ban On Protests Targeting Guo Ch. 11 Trustee
A Connecticut federal judge has affirmed a ban on certain protests aimed at the Chapter 11 trustee overseeing the bankruptcy estate of Chinese dissident Miles Guo, also known as Ho Wan Kwok, after the trustee faced death threats because of his investigation and a failed $250 million settlement.
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October 01, 2024
Nostrum Labs Hits Ch. 11 A Year After Medicaid Settlement
Nostrum Laboratories, a New Jersey drugmaker that paid millions to settle allegations that it underpaid Medicaid drug rebates for its bladder infection drug after it hiked the price more than 400%, filed for Chapter 11 protection with nearly $68.3 million in debt.
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September 30, 2024
Pa. Bankruptcy Court OKs $53M Sale Of Nursing Homes
A federal bankruptcy judge approved the proposed sale of nine western Pennsylvania nursing homes to affiliates of Kadima Healthcare Group for $53 million Monday, as part of Chapter 11 proceedings for more than a dozen facilities operating under the umbrella of Comprehensive Healthcare Management Systems.
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September 30, 2024
US Trustee Says Reed Smith Didn't Disclose Eletson Ties
The U.S. Trustee's Office is asking a New York bankruptcy judge to claw back the fees and expenses law firm Reed Smith LLP has earned representing shipping firm Eletson Holdings in its Chapter 11 case, saying it failed to disclose ties with Eletson directors.
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September 30, 2024
Guo Ch. 11 Trustee Seeks To Sell Conn. Mansion For $6.9M
The Chapter 11 trustee overseeing the estate of Chinese exile Miles Guo, also known as Ho Wan Kwok, asked a bankruptcy judge's permission Monday to sell a Connecticut mansion tied to the convicted fraudster for $6.9 million to benefit the estate, according to paperwork filed Monday.
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September 30, 2024
FCC Approves Audacy's Soros Deal, Triggering GOP Anger
The Federal Communications Commission has given the green light to the purchase of an ownership interest in bankrupt radio station owner Audacy Inc. by a fund manager with ties to George Soros.
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September 30, 2024
Bed Bath & Beyond Investors Lose Bid For Class Cert.
A D.C. federal judge has refused to certify a class of Bed Bath & Beyond investors in a suit alleging they were misled by company executives, saying that while the investors met many certification requirements, certification cannot be granted because the market for the company's stock was not efficient during the proposed class period.
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September 30, 2024
Steward Health CEO Sues Senate Panel After Contempt Vote
The outgoing CEO of embattled Steward Health Care on Monday sued members of Congress who voted earlier this month to hold him in contempt for defying their subpoena to testify at a hearing into the downfall of the bankrupt hospital chain he heads.
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September 30, 2024
Climate Analytics Co. Seeks Ch. 11 With Up To $50M In Debt
BAWT Enterprises LLC, the New Hampshire-based parent company of climate data analytics firm Athenium Analytics, filed for Chapter 11 protection in Delaware in hopes of quickly confirming its prepackaged plan to hand ownership of the reorganized company to its creditors.
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September 27, 2024
Giuliani Keeps Condo If He's In Fla. 'State Of Mind,' Judge Told
Rudy Giuliani's lawyer told a New York federal judge Friday that whether the ex-New York City mayor's Florida condo can be taken to help satisfy a $148 million defamation trial bill hinges not on whether he spends any time in Florida but on his residency "state of mind."
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September 27, 2024
NYC Affiliates Of Troubled Miami Office Owner File Ch. 11
Two entities related to The Gateway at Wynwood, an office building in a hip Miami neighborhood whose owner went bankrupt in July, are now themselves seeking Chapter 11 protection in New York, each claiming a bit over $52 million in liabilities.
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September 27, 2024
Hedge Fund Inks $7.9M Deal In ERISA 401(k) Investment Suit
A Connecticut-based hedge fund that went bankrupt and owner George A. Weiss have agreed to pay $7.9 million to end an ex-worker's suit alleging the company plowed its employees' retirement savings into two substandard proprietary funds, according to filings Friday in Connecticut federal court.
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September 27, 2024
Puerto Rico Utility Creditors Seek OK For Bond Claims Suit
Representatives of the Puerto Rico Electric Power Authority's unsecured creditors are asking a New York federal judge to allow them to contest what they say is the wrongful lumping of $8.4 billion in bondholder claims with their own claims against the utility.
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September 27, 2024
LA Plane Parts Maker Hits Ch. 11 With At Least $10M In Debt
A California-based aircraft parts maker, Skylock Industries, filed for bankruptcy reporting between $10 million to $50 million in both assets and liability as it faces litigation alleging that it owes half a million dollars in past-due rent, as well as a lawsuit seeking to collect a finder's fee on a $9 million loan.
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September 27, 2024
Cooley Accused Of Hiding Fraud From Startup Investors
A former board member of a dry-cleaning delivery startup has alleged in New Jersey federal court that Cooley LLP and its attorneys deliberately kept investors in the dark about fraud claims against the startup's chief executive.
Expert Analysis
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Cannabis Ruling Lights Path For Bankruptcy Protection
A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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What Bankruptcy Deadline Appeal May Mean For Claimants
If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Series
Playing Hockey Makes Me A Better Lawyer
Nearly a lifetime of playing hockey taught me the importance of avoiding burnout in all aspects of life, and the game ultimately ended up providing me with the balance I needed to maintain success in my legal career, says John Riccione at Taft.
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For Lawyers, Pessimism Should Be A Job Skill, Not A Life Skill
A pessimistic mindset allows attorneys to be effective advocates for their clients, but it can come with serious costs for their personal well-being, so it’s crucial to exercise strategies that produce flexible optimism and connect lawyers with their core values, says Krista Larson at Stinson.
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Bankruptcy Courts' Role In Shaping Crypto's Legal Framework
Massive financial and criminal liability has led to the recent collapse of major cryptocurrency companies and put bankruptcy courts in the spotlight, underscoring the urgent need for a comprehensive regulatory framework, say Tara Pakrouh and Eric Monzo at Morris James.
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Opinion
Requiring Leave To File Amicus Briefs Is A Bad Idea
A proposal to amend the Federal Rules of Appellate Procedure that would require parties to get court permission before filing federal amicus briefs would eliminate the long-standing practice of consent filing and thereby make the process less open and democratic, says Lawrence Ebner at the Atlantic Legal Foundation and DRI Center.
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4 Ways To Motivate Junior Attorneys To Bring Their Best
As Gen Z and younger millennial attorneys increasingly express dissatisfaction with their work and head for the exits, the lawyers who manage them must understand and attend to their needs and priorities to boost engagement and increase retention, says Stacey Schwartz at Katten.
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Conn. Bankruptcy Ruling Furthers Limitation Extension Split
A recent Connecticut bankruptcy court decision further solidifies a split of authority on whether Bankruptcy Rule 9006(b) may be used to extend the limitations period, meaning practitioners seeking to extend should serve the motion on all applicable parties and, where possible, rely on the doctrine of equitable tolling, says Shane Ramsey at Nelson Mullins.
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How Purdue Pharma High Court Case May Change Bankruptcy
The U.S. Supreme Court’s upcoming ruling in Purdue Pharma may be the death of most third-party releases in Chapter 11 cases, and depending on the decision’s breadth, could have much more far-reaching effects on the entire bankruptcy system, say Brian Shaw and David Doyle at Cozen O'Connor.
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Series
Serving As A Sheriff's Deputy Made Me A Better Lawyer
Skills developed during my work as a reserve deputy — where there was a need to always be prepared, decisive and articulate — transferred to my practice as an intellectual property litigator, and my experience taught me that clients often appreciate and relate to the desire to participate in extracurricular activities, says Michael Friedland at Friedland Cianfrani.
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Former Minn. Chief Justice Instructs On Writing Better Briefs
Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.
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A 5th Circ. Lesson On Preserving Indemnification Rights
The Fifth Circuit's recent decision in Raymond James & Associates v. Jalbert offers an important lesson for creditors and parties to indemnification agreements: If a debtor has indemnified a creditor, the creditor should consider participating in the bankruptcy case to avoid being deemed to have forfeited its indemnification rights, say Dania Slim and Alana Lyman at Pillsbury.
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Stay Interviews Are Key To Retaining Legal Talent
Even as the economy shifts and layoffs continue, law firms still want to retain their top attorneys, and so-called stay interviews — informal conversations with employees to identify potential issues before they lead to turnover — can be a crucial tool for improving retention and morale, say Tina Cohen Nicol and Kate Reder Sheikh at Major Lindsey.