Bankruptcy

  • July 15, 2024

    NRA's Policies Called 'Dumpster Fire' As 2nd NY Trial Opens

    The New York attorney general cast the National Rifle Association as unrepentant and unreformed as a second-phase bench trial began in state court Monday, after a jury had found the group and its ex-officers liable for misspending millions.

  • July 15, 2024

    Yellow Corp. Denied Redo In $137M Teamsters Fight

    A Kansas federal judge held firm Monday on her decision to throw out Yellow Corp.'s $137 million lawsuit against the Teamsters, in which the trucking company accused the union of driving it into bankruptcy by fighting a necessary corporate restructuring.

  • July 15, 2024

    FTX Proposes $4B Settlement Of CFTC's Massive $52B Claim

    FTX Trading Ltd. asked a Delaware bankruptcy judge to sign off on a settlement with the U.S. Commodity Futures Trading Commission, saying the agreement to allow the agency a $4 billion claim in its bankruptcy would end a fraud civil enforcement action and address the "most significant single creditor" in the crypto currency exchange's Chapter 11 case.

  • July 15, 2024

    Mogul's Co. Drops Bid To Stop Insurer's Liquidation

    A company owned by convicted insurance mogul Greg Lindberg wants to end a fight against North Carolina's liquidation of an insurer, saying that it desires to withdraw its case in the state Court of Appeals.

  • July 15, 2024

    J&J Agrees To Pay $505M In Talc Producers' Ch. 11

    Talc mining companies Imerys and Cyprus Mines asked the Delaware bankruptcy court to approve a Chapter 11 settlement in which Johnson & Johnson would pay $505 million in cash and insurance proceeds into a talc injury trust, even if it petitions for bankruptcy a third time.

  • July 15, 2024

    PBGC Seeks Early Win In $7.8B Pension Fight In Yellow Ch. 11

    The Pension Benefit Guaranty Corp. has filed a motion for partial summary judgment in the Chapter 11 case of trucking firm Yellow Corp., telling a Delaware bankruptcy judge the $7.8 billion dispute over Yellow's withdrawal from multistate employee pension programs is a pure question of law that can be decided in the PBGC's favor.

  • July 15, 2024

    Girardi Seeks 2-Month Delay For Client Theft Trial, To October

    Disgraced lawyer Tom Girardi's defense attorneys want to push back his closely watched wire fraud trial to October from its current August start date, claiming they've been "misled" by "sharp-elbowed" federal prosecutors who have unexpectedly sought to expand the scope of their case against Girardi in recent weeks.

  • July 15, 2024

    McElroy Deutsch Fights 'Malicious' Claim In Exec Fraud Case

    McElroy Deutsch Mulvaney & Carpenter LLP and its former business development director, who is accused of stealing millions from the firm partially via fraudulent credit card use, are at odds over whether the firm's ex-employee should be allowed to bring a malicious prosecution counterclaim in New Jersey state court.

  • July 15, 2024

    11th Circ. Affirms Atty Fee Awards In Nursing Home Ch. 7

    The Eleventh Circuit found Monday a bankruptcy court didn't abuse its discretion when it awarded attorney fees to Shumaker Loop & Kendrick LLP, Fox Rothschild and a firm that merged with Venable for representing the Chapter 7 trustee in a nursing home operator's insolvency.

  • July 15, 2024

    Rising Star: Morrison Foerster's Andrew Kissner

    Andrew Kissner of Morrison Foerster has represented bondholders in the lengthy and novel bankruptcy of the Puerto Rico commonwealth and was recently recognized for his more than 1,000 hours of pro bono service, earning him a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 12, 2024

    Law360 Names 2024's Top Attorneys Under 40

    Law360 is pleased to announce the Rising Stars of 2024, our list of 158 attorneys under 40 whose legal accomplishments belie their age.

  • July 12, 2024

    Rising Star: Paul Weiss' Christopher Hopkins

    Chris Hopkins of Paul Weiss Rifkind Wharton & Garrison LLP has devised complex restructuring deals and helped major companies emerge from Chapter 11 as stronger entities while also finding time for pro bono work representing families of victims of the Sandy Hook Elementary School shooting, earning him a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 12, 2024

    Judge Denies Go-Ahead For Suit Over Invitae Refi Deal

    A Delaware bankruptcy judge on Friday told the unsecured creditors of Invitae that they had not shown it was worthwhile to allow them to challenge the bankrupt genetic testing company's 2023 debt refinancing.

  • July 12, 2024

    3 Fla. Labs Settle Medicare Overbilling Case For $2.45M

    Three medical labs in Clermont, Florida, have agreed to pay $2.45 million to resolve allegations they were manipulating diagnosis codes, or "code jamming," to submit more lucrative claims to Medicare and Medicaid for reimbursement by having a computer macro tack on extra diagnosis codes before filing the claims with the government.

  • July 12, 2024

    Guo Trial Juror Booted For Googling Fugitive Co-Defendant

    The jury in Chinese dissident Miles Guo's $1 billion fraud and racketeering case was forced to restart its verdict deliberations on Friday after a juror was cut loose for Google-searching Guo's fugitive financial adviser and co-defendant William Je.

  • July 12, 2024

    Giuliani's Ch. 11 Tossed Over Lack Of Financial Candor

    Rudolph W. Giuliani, former mayor of New York City and legal adviser to Donald Trump, had his Chapter 11 case dismissed Friday by a New York bankruptcy judge, who found that Giuliani's missing financial disclosure made ending the proceedings the best option for creditors.

  • July 12, 2024

    No Injury In Suit Targeting J&J Asset Shuffles, Talc Unit Says

    Johnson & Johnson wants a New Jersey federal judge to toss a proposed class action alleging that the company has tried to intentionally prevent talc claimants from getting their day in court through a scheme of fraudulent corporate transactions, arguing that the cancer patients failed to show how any of the challenged transactions left it unable to pay its talc claims.

  • July 12, 2024

    US Trustee Decries Fisker EV Fleet 'Fire Sale'

    The U.S. Trustee's Office urged a Delaware bankruptcy judge to block electric-vehicle maker Fisker's proposed $46.25 million sale of its inventory, saying the fleet is being sold at "fire sale prices" the debtor can't show are fair.

  • July 12, 2024

    First Republic Settles $7M Scholarship Fund Loss Suit

    A philanthropist couple have reached an agreement to resolve their $7 million breach of fiduciary duty allegations against the now-failed First Republic Bank, telling a California federal judge that they reached a deal during a private mediation session.

  • July 11, 2024

    Cigna Objects To Ch. 11 Nursing Home Asset Sale Proposal

    Cigna Health and Life Insurance Co. asked a Pennsylvania bankruptcy judge to reject a sale process proposed by some of the debtors in a Pittsburgh-area nursing home network's consolidated Chapter 11 case, saying it gave the debtors too much leeway to change what contracts they will maintain.

  • July 11, 2024

    Rite Aid Gets OK To Sell Interests In Its Loan To MedImpact

    A New Jersey bankruptcy judge on Thursday approved Rite Aid's sale of most of its interests in a $567 million loan that it made, the proceeds of which it will distribute to creditors under its Chapter 11 reorganization plan.

  • July 11, 2024

    Chancery Orders Invictus Fund Sides To Provide Case Update

    Pointing to hints of clarity in a distressed credit and special-situations fund's murky, 9-month-old battle for documents and cash held by its general partner and investment manager, a Delaware vice chancellor on Thursday ordered the two sides to produce a case update by Tuesday.

  • July 11, 2024

    Biden Taps Cohen Weiss Atty As PBGC Director

    President Joe Biden on Thursday tapped an attorney who most recently served as of counsel at Cohen Weiss & Simon LLP to head the Pension Benefit Guaranty Corp.

  • July 11, 2024

    Talc Law Firms Beat J&J Subpoenas Seeking Funding Info

    The Beasley Allen Law Firm, another plaintiffs law firm and a litigation funder defeated subpoenas from Johnson & Johnson in talc litigation, with a special master reasoning that the broad swath of discovery permitted in federal courts still has limits. 

  • July 11, 2024

    Bally Sports Parent Axes TV Deal With NHL's Dallas Stars

    A Texas bankruptcy judge on Thursday approved a request by Bally Sports parent company Diamond Sports Group to reject a broadcast agreement with the NHL's Dallas Stars, the latest professional team to part ways with DSG.

Expert Analysis

  • Attorneys Have An Ethical Duty To Protect The Judiciary

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    The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.

  • Why The Debt Maturity Wall Is Still A Figment, For Now

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    While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.

  • AI Can Help Lawyers Overcome The Programming Barrier

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    Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.

  • 10 Essential Bankruptcy Litigation Tips For In-House Counsel

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    Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.

  • Preparing Law Students For A New, AI-Assisted Legal World

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    As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.

  • Sellers Seeking Best Deal Should Focus On Terms And Price

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    Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.

  • General Counsel Need Data Literacy To Keep Up With AI

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    With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.

  • Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits

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    Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.

  • Navigating Discovery Of Generative AI Information

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    As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.

  • Finding Focus: Strategies For Attorneys With ADHD

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    Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.

  • A Look At DOJ's New Nationwide Investment Fraud Approach

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    Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.

  • Decoding The Digital Asset Landscape In Bankruptcy

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    Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.

  • How Fla. Bankruptcy Ruling May Affect Equity Owners

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    A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.

  • Calif. Ruling May Open Bankruptcy Trustees To Tort Liability

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    In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.

  • Co. Directors Must Beware Dangers Of Reverse Factoring

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    New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.

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