Bankruptcy

  • January 10, 2025

    US Trustee Balks At Ch. 11 Bid Protections In First Mode Case

    A package of bid protections for the stalking horse of bankrupt electric-engine developer First Mode needs to be reined in, the Office of the U.S. Trustee has said, urging a Delaware bankruptcy judge to reject the debtor's request that expenses and fees tied to the $15 million bid be paid as priority claims.

  • January 10, 2025

    SafeMoon CEO Wants 'Misleading' Reddit Post Explained

    The CEO of bankrupt cryptocurrency asset company SafeMoon LLC asked a Brooklyn federal judge Friday to order the government to explain whether it had a role in a social media user's "misleading" post that promised to connect SafeMoon investors with the U.S. government.

  • January 10, 2025

    Giuliani Held In Contempt Again, This Time In DC

    A D.C. federal judge Friday held Rudy Giuliani in contempt for continuing to repeat false claims that two Georgia poll workers meddled with the outcome of the 2020 presidential election, marking the second time in a week the former New York City mayor has been found in civil contempt.

  • January 10, 2025

    J&J Talc Claimants Seek Sanctions Over Morelli No-Show

    A group of attorneys representing talc claimants in Johnson & Johnson unit Red River Talc's Chapter 11 case has urged a Texas bankruptcy judge to sanction Morelli Law Firm PLLC's founding partner, Benedict Morelli, for allegedly failing to appear in person at a December hearing and falsely claiming to have resolved a dispute with the talc group.

  • January 10, 2025

    Ex-McKinsey Partner Admits To Obstructing Purdue Probe

    A former senior partner at consulting giant McKinsey & Co. pled guilty Friday to obstructing the U.S. Department of Justice's investigation into the firm's work with opioid manufacturer Purdue Pharma LP, a month after McKinsey agreed to pay $650 million to resolve related charges.

  • January 09, 2025

    J&J Spin-Off Says Talc Committee Can't Hire Brown Rudnick

    Johnson & Johnson's bankrupt spin-off called Brown Rudnick's bid to represent an official committee of talc claimants "an ethical violation," telling a Texas bankruptcy judge that the law firm's previous work for a group trying to toss the case clashes with the committee's support for its Chapter 11 plan.

  • January 09, 2025

    Texas Oil Well Operator's Ch. 11 Plan Approved With Releases

    Oil well operator Independence Contract Drilling received approval Thursday from a Texas bankruptcy judge for its Chapter 11 reorganization plan, which includes consensual third-party releases.

  • January 09, 2025

    FTX Squabbles With Crypto Startup Over EU Distributions

    The estate of bankrupt crypto exchange FTX said it had no involvement with a startup cryptocurrency exchange's announcement that it had purchased FTX EU and would be handling distributions to former customers of the FTX European subsidiary.

  • January 09, 2025

    Judge Nixes Bid To Depose SEC Counsel In $73M Fraud Case

    A New Jersey federal magistrate judge has denied a credit reporting agency's bid to depose four U.S. Securities and Exchange Commission attorneys and to compel the production of their witness interview notes in a civil enforcement action over an alleged $73 million fraud, ruling the information sought is protected by the work-product doctrine.

  • January 09, 2025

    IRS Gets First Dibs On $1M BP Oil Spill Payout, 11th Circ. Says

    The IRS gets first priority to a $1 million settlement BP paid to a staffing company that racked up $23 million in federal tax debt and went bankrupt following the Deepwater Horizon oil spill, the Eleventh Circuit affirmed, denying an insurer's claim to the money.

  • January 09, 2025

    Body Glove Licensee Surf 9 Files Ch. 11

    Florida-based sporting goods seller Surf 9, which says it is the third-largest retailer of paddle boards in the world, has filed for bankruptcy in New York, listing up to $50 million each of assets and liabilities.

  • January 08, 2025

    Bankrupt Ligado Sues Over $1.7B Cooperation Deal Breach

    Satellite communications company Ligado Networks accused a satellite service provider of breaching a $1.7 billion cooperation deal aimed at facilitating Ligado's terrestrial network operations by failing to upgrade its own satellite terminals and deliver portions of its spectrum.

  • January 08, 2025

    Reed Smith Accused Of 'Causing Chaos' In $102M Award Fight

    The new owners of reorganized international shipping group Eletson Holdings are continuing their battle with the company's former owners and their counsel at Reed Smith in litigation over a $102 million arbitral award, alleging the BigLaw firm's "obstructionist conduct" is "causing chaos."

  • January 08, 2025

    EPA Slams $535M Talc Settlement In Whittaker's Ch. 11

    The U.S. government objected to a $535 million settlement that bankrupt talc supplier Whittaker Clark & Daniels reached regarding talc claims in its New Jersey Chapter 11 case, saying the deal was built on faulty estimates of the company's environmental liabilities.

  • January 08, 2025

    Canadian Payment Systems Co. Hits Ch. 15 As It Seeks Buyer

    Vancouver-based Felix Payment Systems Ltd. has filed a Chapter 15 petition in North Carolina with CA$19 million ($13.2 million) in liabilities, saying it needs to shield its assets from creditors as it moves to restructure through Canadian insolvency proceedings.

  • January 08, 2025

    Criminal Case Against Terraform Founder Said To Exceed SEC's

    The $40 billion criminal case against Terraform founder Do Kwon contains evidence such as recordings and seized mobile phones that exceed what securities regulators presented when they prevailed against him at a civil fraud trial, prosecutors said Wednesday.

  • January 08, 2025

    Auto Financing Co. Vroom's Equity Swap Ch. 11 Plan Gets OK

    A Texas bankruptcy judge on Wednesday approved automotive financing and analytics company Vroom Inc.'s Chapter 11 plan to convert $290.5 million of debt into equity, overruling an objection to the deal from the U.S. Department of Justice's bankruptcy watchdog and allowing Vroom to continue operating.

  • January 07, 2025

    Energy Co. Inks $126 Million Deal To End SPAC Merger Suit

    Investors suing the now-bankrupt oil and gas company Alta Mesa Resources Inc. have asked a Texas federal judge to preliminarily approve a $126.3 million deal to settle claims that the company and its executives misled investors about the value of a 2017 merger.

  • January 07, 2025

    J&J, Talc Suppliers, Insurers Spar Over $505M Sale Stay

    The former talc suppliers of Johnson & Johnson said Tuesday that staying part of a settlement and a connected bankruptcy sale could bog down their efforts to secure plan confirmations and exit Chapter 11, urging a Delaware bankruptcy judge to reject a motion to set aside $50 million from the $505 million deal while it is being appealed. 

  • January 07, 2025

    Ligado Gets OK To Tap $939M DIP Amid Spectrum Spat

    Satellite and spectrum business Ligado Networks received a Delaware bankruptcy judge's approval Tuesday to borrow a share of $939 million in Chapter 11 financing that the company will use to repay high-ranking debt and support itself during the case.

  • January 07, 2025

    Quinn Emanuel Says NAFTA Case Irrelevant In DQ Bid

    A Mexican oil company and its subsidiaries cannot add "undisputedly irrelevant" supplementary information about former counsel Quinn Emanuel amid a disqualification bid, the law firm has told a Miami federal court, arguing that the requested documents, including the dismissal of a NAFTA arbitration Quinn Emanuel brought against Mexico, are either unrelated to the underlying litigation or duplicative.

  • January 07, 2025

    NYC Condo Owner Hits Ch. 11 With More Than $70M Debt

    The owner of 105 unsold New York City waterfront condominium units has filed for Chapter 11 protection with more than $70 million in liabilities.

  • January 07, 2025

    CFPB Adopts Rule To Take Medical Debt Off Credit Reports

    The Consumer Financial Protection Bureau moved ahead Tuesday with plans to restrict the use of medical debt information in credit scoring and lending, finalizing a rule that it said will take an estimated $49 billion in unpaid medical bills off consumers' credit reports.

  • January 06, 2025

    Dentons Adds Ex-Skadden Bankruptcy Pro In Calif.

    Global law firm Dentons is beefing up its restructuring, insolvency and bankruptcy practice with a new Los Angeles partner who spent more than two decades at Skadden, most recently as Skadden's head for corporate restructuring practice in the western United States.

  • January 06, 2025

    Mich. Residents Say Solar Investors Can't Arbitrate Fraud Suit

    Michigan residents who allege Florida investment firms funded a company that duped them into buying defective solar panels have urged a federal judge to deny the firms' bid to arbitrate or dismiss the claims, saying the court has already rejected the investors' arguments.

Expert Analysis

  • Revisiting Scalia's 'What's It To You?' After Kaiser Ruling

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    While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.

  • Series

    Florida Banking Brief: All The Notable Legal Updates In Q2

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    The second quarter of 2024 brought two notable bills that will affect Florida's banking and finance community across many issues, including virtual currency abandonment, cancellation of financial services on the basis of political opinions, and the exemption amount of motor vehicles, say Joshua Prever and Andrew Balthazor at Holland & Knight.

  • How To Clean Up Your Generative AI-Produced Legal Drafts

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    As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.

  • Series

    Boxing Makes Me A Better Lawyer

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    Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.

  • Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage

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    The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.

  • Opinion

    Industry Self-Regulation Will Shine Post-Chevron

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    The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.

  • 3 Ways Agencies Will Keep Making Law After Chevron

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    The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.

  • After Chevron

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    Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 37 different rulemaking and litigation areas.

  • Opinion

    Atty Well-Being Efforts Ignore Root Causes Of The Problem

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    The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.

  • Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan

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    The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.

  • Contract Disputes Recap: Addressing Dispositive Motions

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    Stephanie Magnell and Bret Marfut at Seyfarth examine three recent decisions from the U.S. Court of Claims and the U.S. Civilian Board of Contract Appeals that provide interesting takeaways about the nuances of motion practice utilized by the government to dispose of cases brought under the Contract Disputes Act prior to substantive litigation

  • Series

    Skiing And Surfing Make Me A Better Lawyer

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    The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.

  • Unpacking The Circuit Split Over A Federal Atty Fee Rule

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    Federal circuit courts that have addressed Rule 41(d) of the Federal Rules of Civil Procedure are split as to whether attorney fees are included as part of the costs of a previously dismissed action, so practitioners aiming to recover or avoid fees should tailor arguments to the appropriate court, says Joseph Myles and Lionel Lavenue at Finnegan.

  • Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares

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    In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.

  • Opinion

    No Matter The Purdue Ruling, Mass Tort Reform Is Needed

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    The U.S. Supreme Court will soon issue its opinion in the bankruptcy of Purdue Pharma LP, and regardless of the outcome, it’s clear legal and policy reforms are needed to address the next mass tort, says William Organek at Baruch College.

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