Bankruptcy

  • January 21, 2025

    LED Screen Distributor Lied About $10M Debt, Jury Told

    The owner of a now-defunct LED screen distribution company lied to his Korean manufacturing partner about repaying an over $10 million debt in order to keep receiving shipments and pay himself a hefty salary, jurors heard as a civil fraud trial opened in California federal court on Tuesday.

  • January 21, 2025

    Ch. 11 Judge Slams Firm's 'Extraordinary' Lack Of Knowledge

    A New York bankruptcy judge has refused a fee bid and ordered a debtor's firm to return a nearly $30,000 retainer in a scathing opinion that warns lawyers against tiptoeing into bankruptcy practice and slams counsel for having an "extraordinary lack of basic Chapter 11 understanding."

  • January 21, 2025

    Receiver Sought For Partnership That Funded Affleck Films

    Film producer John P. Middleton has asked Delaware's Court of Chancery to appoint a receiver for The Film Capitol LLC, a partnership he formed in 2013 to provide funding for a production project with actor Casey Affleck.

  • January 21, 2025

    Judge OKs Deal To Keep Some American Freight Stores Open

    A Delaware bankruptcy judge on Tuesday approved a sale in Chapter 11 that will keep the lights on in more than two dozen American Freight home furnishing stores by transferring their leases from the bankrupt Franchise Group.

  • January 21, 2025

    4th Circ. Backs NASCAR Team Owner's $31M Ch. 11 Sanction

    The Fourth Circuit has backed a $31 million default judgment entered against a former NASCAR team manager as a sanction after what the published opinion called "egregious behavior" during discovery and "willful disregard of the bankruptcy code and the orders of the bankruptcy court."

  • January 21, 2025

    Last Sackler Family Members Join Purdue Draft Deal

    The final holdouts among two branches of Sackler family members are ready to join a settlement in the bankruptcy of OxyContin maker Purdue Pharma LP, a business owned by the family, according to a report from the co-mediators handling negotiations.

  • January 21, 2025

    Firm Slams Beasley Allen's Bid To Nix Suit Over Talc Team-Up

    Smith Law Firm PLLC is urging a Mississippi federal court to reject Beasley Allen Law Firm's bid to dismiss or transfer a defamation and breach of contract lawsuit over their joint venture agreement for talc litigation against Johnson & Johnson, saying the case shouldn't be thrown out in favor of Beasley Allen's Alabama suit.

  • January 17, 2025

    Law360 Names Practice Groups Of The Year

    Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2024, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.

  • January 17, 2025

    Law360 Names Firms Of The Year

    Eight law firms have earned spots as Law360's Firms of the Year, with 54 Practice Group of the Year awards among them, steering some of the largest deals of 2024 and securing high-profile litigation wins, including at the U.S. Supreme Court.

  • January 17, 2025

    Judge Scolds Dormify For Founder Not Appearing In Court

    A Delaware bankruptcy judge sharply criticized Dormify Inc. after its founder didn't appear at a hearing Friday, ordering a hearing on whether to dismiss the dorm-room decorating retailer's Chapter 11 case or convert it to a Chapter 7 liquidation.

  • January 17, 2025

    SEC Fines Crypto Giant DCG, Ex-Genesis CEO $38.5M

    Crypto venture capital firm Digital Currency Group and the ex-CEO of its bankrupt lending subsidiary Genesis Global Capital LLC agreed to a combined $38.5 million civil penalty Friday to settle claims they misled investors about Genesis' financial condition ahead of its collapse.

  • January 17, 2025

    Lowenstein Sandler Can Pursue Trimmed Dispensary Fee Suit

    A New Jersey state court judge dismissed part of Lowenstein Sandler LLP's $800,000 fee suit against a cannabis dispensary former client Thursday and told the firm it must give the former client the notice of its right to resolve the fee dispute through arbitration.

  • January 17, 2025

    FDIC Sues Ex-SVB Top Brass For 'Egregious Mismanagement'

    The Federal Deposit Insurance Corp. has sued Silicon Valley Bank's former CEO Gregory Becker and other top brass in California federal court in a bid to put them on the hook for the bank's costly 2023 failure, accusing them of "egregious mismanagement."

  • January 16, 2025

    Joann Can Fund Speedy Ch. 11 Sale Plans With Cash On Hand

    Joann Inc. is racing to find a going concern buyer before mid-February, or it will take an offer from a firm that plans to liquidate the 80-year-old national craft supply retailer, attorneys told a Delaware bankruptcy judge Thursday, laying out the tight timeline proposed in its second Chapter 11 in less than a year.

  • January 16, 2025

    Expert Witnesses Limited In J&J Talc Ch. 11 Dismissal Try

    A Texas bankruptcy judge limited Thursday the number of expert witnesses that can provide testimony in an upcoming hearing on talc claimants' attempt to dismiss the Chapter 11 case of Johnson & Johnson's talc unit.

  • January 16, 2025

    Yellow Corp., Teamsters Debate WARN Suit Ahead Of Trial

    Yellow Corp. and the unions representing many of the workers it laid off met in Delaware bankruptcy court Thursday to preview arguments they will deliver at a trial, set to start next week, that will determine whether the trucking company can escape some of the WARN Act claims it is facing after laying off 25,000 employees.

  • January 16, 2025

    Hearthside Proposes $30M In Ch. 11 Key Employee Bonuses

    The bankrupt parent of snack maker Hearthside Food Solutions proposed a pair of retention and incentive payment plans that would provide up to $30 million in bonuses to key employees in the company's Texas Chapter 11 case.

  • January 16, 2025

    Giuliani Settles NY Asset Turnover Case After Trial No-Show

    Rudy Giuliani on Thursday settled claims that he must turn over assets to fund a $148 million judgment for defaming two Georgia poll workers, after his failure to show up in court delayed the start of a scheduled bench trial.

  • January 15, 2025

    Amazon, FedEx, Anthem Blast Guo Ch. 11 Clawbacks

    Amazon, Anthem and FedEx on Wednesday asked a Connecticut bankruptcy judge to toss millions in clawback claims against nearly 40 entities by Chinese exile Miles Guo's Chapter 11 trustee, saying during oral arguments that the trustee is misusing prior rulings that Guo's shell companies were his alter egos.

  • January 15, 2025

    Chancery Awards $1.6M To Food Recycler In Trade Secret Fight

    The former leaders of a now-defunct food waste company owe another company $1.6 million for misappropriating a process for turning waste into fertilizer and animal feed, a Delaware vice chancellor said in a decision released Wednesday, finding they "rode" that process "all the way to the bank."

  • January 15, 2025

    Boeing Vexes Judge In 737 Max Records Flap With Airline

    The Boeing Co. can't use a now-defunct South African airline's loss of records to dodge a suit over fallout from a 737 Max airplane deal, a Washington federal judge has said, chiding the aerospace giant for offering thin circumstantial evidence of intent without any "smoking gun."

  • January 15, 2025

    Judge OKs More Fees In Calif. Debt Relief Firm's Bankruptcy

    A California bankruptcy judge has tentatively approved an additional $2.1 million in professional fees in the bankruptcy case of a troubled debt relief firm, despite the amount of professional fees already exceeding the amount paid out to creditors so far.

  • January 15, 2025

    AI Travel App Co. Mondee Files Ch. 11 With Sale Plans

    Artificial intelligence-supported travel agency application maker Mondee Holdings Inc. filed for Chapter 11 protection in Delaware, saying it has a baseline offer for the acquisition of its assets and $49 million in financing from existing lenders.

  • January 15, 2025

    Crafts Retailer Joann Hits Ch. 11 Again With $616M In Debt

    Fabrics and crafts retailer Joann Inc. filed for Chapter 11 protection in Delaware bankruptcy court Wednesday with $615.7 million in debt and a plan to sell its assets, the company's second Chapter 11 filing in less than a year.

  • January 14, 2025

    Prospect Medical Beats Objection To $29M In Ch. 11 Funds

    A Texas bankruptcy judge said Tuesday she would allow struggling hospital operator Prospect Medical Holdings Inc. to borrow part of a $100 million financing package that prompted an objection from the company's landlord, saying the money was needed to ensure patients continue to receive care.

Expert Analysis

  • 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.

  • SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early

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    After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.

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