Bankruptcy

  • December 06, 2024

    Conn. Panel Pares $150M From $1.44B Alex Jones Verdict

    The Connecticut Appellate Court on Friday sliced $150 million from a $1.44 billion trial court judgment against Infowars host Alex Jones over his claims that the Sandy Hook shooting was a hoax, holding the state's consumer protection laws did not allow the massacre's survivors to recover for alleged harms connected to Jones' ancillary product sales.

  • December 06, 2024

    Calif. Trucking Company Files Ch. 11 With $325M Of Debt

    California-based trucking company KAL Freight Inc. filed for Chapter 11 protection in a Texas bankruptcy court, saying it has $325 million of debt obligations it can't meet after a post-COVID expansion effort foundered with slackening customer demand.

  • December 05, 2024

    Icon Aircraft Cleared For Ch. 11 Plan With Investor Claims Deal

    A Delaware bankruptcy judge said Thursday he would confirm the Chapter 11 plan from light-sport aircraft producer Icon after the debtor settled with a group of shareholders that sued the company in derivative litigation.

  • December 05, 2024

    'Texas Two-Step,' Exec Bonus Bankruptcy Bills Reintroduced

    Lawmakers in the U.S. Senate this week renewed efforts to pass two bankruptcy bills that would bolster rights for employees and crack down on the controversial use of so-called Texas two-step bankruptcies.

  • December 05, 2024

    3rd Circ. Affirms ConocoPhillips Ruling On $8.5B Debt

    The Third Circuit on Thursday affirmed a ruling paving the way for ConocoPhillips' participation in an auction for control of the U.S. oil giant Citgo to enforce an $8.5 billion debt against Venezuela.

  • December 05, 2024

    Ex-CEO Of Solar Biz ISun Says Ch. 11 Plan Doesn't Add Up

    The former CEO of solar power company iSun is asking a Delaware bankruptcy judge to reject the company's proposed Chapter 11 plan, saying it fails to provide for payment of priority claims, including his own deferred paychecks.

  • December 05, 2024

    FTX Clawback Deal With Ex-Alameda Co-CEO Gets Court Nod

    A Delaware bankruptcy judge has approved a deal to settle clawback claims by FTX against former Alameda Research Ltd. executive John Samuel Trabucco, who agreed to hand over two San Francisco apartments purchased in 2021 for $8.7 million and a 53-foot yacht bought in 2022 for $2.5 million.

  • December 05, 2024

    Lowenstein Sandler Suit Gets New NJ Judge After DQ Request

    Lowenstein Sandler LLP has persuaded an Essex County Superior Court judge to recuse himself from the firm's $800,000 fee suit against a cannabis dispensary over social connections to the litigants and their counsel and had the case assigned to a new judge this week.

  • December 04, 2024

    Guo Trustee Balks At Boies Schiller's Clawback Transfer Bid

    The Chapter 11 trustee overseeing Chinese exile Miles Guo's bankruptcy in Connecticut says Boies Schiller Flexner LLP should not be allowed to move a nearly $654,000 clawback action from bankruptcy court to district court, suggesting a bankruptcy judge is better poised to consider his asset recovery theories.

  • December 04, 2024

    5th Circ. Probes $8M Payout For Allegedly Undelivered Services

    An investment company on Wednesday found itself before the Fifth Circuit having to justify paying $7.7 million for allegedly undelivered services from an affiliate, as it appeals a $2.6 million bill it got hit with for prematurely ending a contract.

  • December 04, 2024

    Alex Jones Atty Needs 30-Day Suspension, Ethics Boss Says

    The lead Connecticut attorney in Infowars host Alex Jones' Sandy Hook defamation trial should be suspended for 30 days for directing a subordinate to transmit the victims' personal medical records to other Jones attorneys, the state's legal ethics watchdog said Wednesday.

  • December 04, 2024

    Avon Cleared To Sell To Parent Co. For $125M In Ch. 11

    A Delaware bankruptcy judge on Wednesday said he would approve a settlement between Avon Products Inc. and Brazilian parent company Natura that clears the way for the beleaguered cosmetics giant to sell itself to Natura for $125 million.

  • December 04, 2024

    3rd Circ. Preview: BetMGM Addiction Case Tops Dec. Lineup

    The Third Circuit is set to determine if BetMGM online casino should face a lawsuit claiming it violated New Jersey consumer protection and gambling laws for allegedly enticing a man with a gambling problem to play its games.

  • December 04, 2024

    NY Diocese Gets OK For Ch. 11 Plan With Optional Releases

    A New York bankruptcy judge approved a Long Island-based Roman Catholic diocese's Chapter 11 plan on Wednesday after hearing it had resolved objections from the U.S. Trustee's Office with a two-tier claims release system for sexual abuse claimants.

  • December 03, 2024

    Mich. Seat Co. On Hook For €4.1M German Lease, Suit Says

    A German property owner has said in a new complaint that a Michigan-based automotive seat manufacturer is on the hook for a €4.1 million ($4.3 million at current exchange rates) lease after its European entity defaulted on payments and entered insolvency proceedings.

  • December 03, 2024

    Judge Denies News Orgs. Bid To Unseal FTX Customer Names

    A Delaware federal judge on Tuesday said he wouldn't reverse an order allowing defunct crypto platform FTX Trading Ltd. to keep customer names out of public bankruptcy filings, rejecting an appeal from major news outlets to unseal the information and writing that sealing the information preserved FTX's assets and protected creditors from cybercrime.

  • December 03, 2024

    Attys For Sears Ex-CEO, Appraisal Camp Clash In Chancery

    A lawyer for Sears Hometown and Outlet Stores' former top fiduciary told a Delaware vice chancellor on Tuesday that case law does not support carving out stockholder proceeds from a fiduciary breach settlement in order to pay shareholders whose separate appraisal lawsuit was foiled by SHOS' bankruptcy.

  • December 03, 2024

    New Judges Include One Who Aided Puerto Rico Bondholders

    The Senate on Tuesday confirmed two federal judges for Pennsylvania and one for the District of Columbia, who came under scrutiny during her confirmation hearing for her work at Jones Day.

  • December 03, 2024

    Fla. Court Urged To OK 'Offensive' $645K Deal In Firm's Ch. 11

    A law firm debtor urged a Florida bankruptcy court Tuesday to approve a $645,000 settlement in its Chapter 11 to resolve a proposed fraudulent misrepresentation class action in state court against a former Miami insurance attorney, who called the potential deal "offensive" and said it's possible he'll be sued again.

  • December 03, 2024

    Alex Jones Atty Seeks Leniency Over Sandy Hook 'Mistake'

    The lead attorney in Infowars host Alex Jones' $1.44 billion Connecticut defamation trial admits he "made a mistake" when he approved sending several Sandy Hook Elementary School victims' confidential records to other Jones attorneys, saying Tuesday he should receive either no discipline or a reprimand in a pared-down case.

  • December 03, 2024

    Celsius Founder Cops To Fraud That Sunk $25B Crypto Lender

    Celsius Network founder Alex Mashinsky told a Manhattan federal judge Tuesday that he lied when he told the public that the fallen $25 billion crypto lender's tokens were a safe investment, pleading guilty to fraud charges ahead of a January criminal trial.

  • December 03, 2024

    Film Financing Firm Gets OK For Ch. 11 Auction In January

    A Delaware bankruptcy judge gave Film Finance Inc., a company that offers financing for high-profile film projects, the go-ahead Tuesday to put itself on the auction block early next year after dropping protections for its baseline bidder that had attracted the ire of the U.S. Trustee's Office.

  • December 03, 2024

    Texas Oil Driller Hits Ch. 11 With $207M Debt-Swap Plan

    Oil and gas drilling services provider Independence Contract Drilling has filed for Chapter 11 protection in a Texas bankruptcy court with more than $230 million in debt and a prepackaged debt-swap restructuring plan.

  • December 02, 2024

    Girardi Won't Get New Fraud Trial Despite Memory Claims

    A California federal judge on Monday denied Tom Girardi's bid for a new trial after a jury found he misappropriated $15 million worth of client settlement funds, standing by a prior assessment that the disbarred attorney was "exaggerating" symptoms of mild cognitive impairment.

  • December 02, 2024

    Metropolitan Commercial Bank Aided Voyager Fraud, Suit Says

    Voyager Digital's former bank, Metropolitan Commercial Bank, has been hit with a 53-count complaint in New York federal court alleging it was complicit in bad behavior by the now-defunct crypto lender and should be on the hook for repaying platform users.

Expert Analysis

  • Series

    Home Canning Makes Me A Better Lawyer

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    Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.

  • Navigating The Bankruptcy Terrain After Purdue Pharma

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    The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.

  • Use The Right Kind Of Feedback To Help Gen Z Attorneys

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    Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.

  • Opinion

    Congress Can And Must Enact A Supreme Court Ethics Code

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    As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.

  • Series

    The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan

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    Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.

  • How 9th Circ. Ruling Expands Bankruptcy Trustees' Powers

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    The Ninth Circuit recently held in The Lovering Tubbs Trust v. Hoffman that a trustee can avoid intentionally fraudulent transfers, even if no creditor suffered harm as a result, materially strengthening bankruptcy trustees' powers, say Robert Klyman and Rod Kazempour at DLA Piper.

  • State Of The States' AI Legal Ethics Landscape

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    Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.

  • 8 Childhood Lessons That Can Help You Be A Better Attorney

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    A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.

  • 3rd Circ. Hertz Ruling Highlights Flawed Bankruptcy Theory

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    The Third Circuit, in its recent Hertz bankruptcy decision, became the latest appeals court to hold that noteholders were entitled to interest before shareholders under the absolute priority rule, but risked going astray by invoking the flawed theory of code impairment, say Matthew McGill and David Casazza at Gibson Dunn.

  • Opinion

    This Election, We Need To Talk About Court Process

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    In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.

  • Series

    Playing Diplomacy Makes Us Better Lawyers

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    Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.

  • Mental Health First Aid: A Brief Primer For Attorneys

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    Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.

  • Series

    Collecting Art Makes Me A Better Lawyer

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    The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.

  • Using Primacy And Recency Effects In Opening Statements

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    By understanding and strategically employing the primacy and recency effects in opening statements, attorneys can significantly enhance their persuasive impact, ensuring that their narrative is both compelling and memorable from the outset, says Bill Kanasky at Courtroom Sciences.

  • Litigation Inspiration: Honoring Your Learned Profession

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    About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.

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