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Bankruptcy
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November 25, 2024
Sanctions Sought Against Reed Smith In Eletson Ch. 11
Creditors of bankrupt gas tanker operator Eletson Holdings Monday called for "harsh sanctions" against company directors and officers and their attorneys at Reed Smith, saying they are peddling bogus legal theories to stall the company's reorganization.
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November 22, 2024
Retirement Contributions Found Not Disposable In Ch. 13
A split Ninth Circuit on Friday held that voluntary contributions to employer-managed retirement plans are not disposable income under Chapter 13 bankruptcy, reversing a lower court's decision that required a debtor to include $484 in monthly retirement contributions in her disposable income.
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November 22, 2024
Pot Dispensary Aims To Escape Lowenstein Sandler's Fee Suit
A New Jersey cannabis dispensary has moved to dismiss a suit from Lowenstein Sandler LLP seeking nearly $800,000 in unpaid fees, telling a state court that the firm did not give the proper notice before suing over the fee dispute.
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November 22, 2024
Latham Adds 4 Restructuring Attys From Weil And Paul Weiss
Latham & Watkins LLP announced Thursday that it has tapped four restructuring practice leaders from two rival BigLaw shops to join its New York office.
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November 22, 2024
Fed Bans Ex-CEO Of Bank Felled By Crypto Scam
The former CEO of Kansas' now-shuttered Heartland Tri-State Bank has been banned by the federal government from being a part of the banking industry after stealing $47.1 million from the bank to give to cryptocurrency scammers, leading his bank to fail.
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November 22, 2024
Snack Maker Hearthside Files For Ch. 11 To Shed $1.9B Debt
H-Food Holdings LLC, which makes granola bars, pretzels and other snacks under the name Hearthside Food Solutions for major brands, filed for bankruptcy protection in Texas on Friday, with a restructuring agreement that would allow it to wipe out more than $1.9 billion of debt.
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November 22, 2024
Avante Health Parent Cleared To Sell For $72.5M In Ch. 11
A Delaware bankruptcy judge on Friday approved the $72.5 million sale of Jordan Health, the corporate parent of medical equipment company Avante Health, to an affiliate of Staple Street Capital after the debtor reached a settlement with unsecured creditors.
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November 22, 2024
1st Circ. Backs Auction For Bankrupt Farmer's Milk Quota
The First Circuit has affirmed a Puerto Rico regulator's ability to order the sale of a dairy farmer's milk quota despite his pending bankruptcy, ruling the action wasn't blocked by a stay blocking actions that can affect a bankruptcy estate.
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November 21, 2024
Franchise Group Lenders Want End To Debtor's Ch. 11 Rights
Lenders of bankrupt retail-focused holding company Franchise Group Inc., including Pacific Investment Management Co. and private equity firm Irradiant Partners, have urged a Delaware bankruptcy judge to end holdco debtor Chapter 11 exclusivity restrictions, arguing that the move offers the best escape from a near-inescapable "Gordian knot" entangling all their claims.
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November 21, 2024
Big Lots Seeks To Include Claims Against Execs In Asset Sale
Discount retailer Big Lots on Thursday asked a Delaware bankruptcy judge to approve a $760 million asset sale to a private equity group and override creditor objections to the inclusion of potential litigation claims against company insiders in the package.
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November 21, 2024
Prime Core's Ch. 11 Trust Sues To Reclaim $10M Payout
The liquidating trust for Prime Core Technologies Inc., a troubled cryptocurrency technology business, sued in Delaware bankruptcy court Thursday to claw back what it described as a fraudulent transfer of more than $10 million that was paid to a creditor while the company was insolvent.
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November 21, 2024
Swedish EV Battery Co. Files For Ch. 11 With $5B Of Debt
Swedish electric vehicle battery maker Northvolt AB filed a Chapter 11 case in Texas bankruptcy court Thursday, saying it wants to find a partner to enable the company's innovation to continue in the burgeoning space while it addresses a significant liquidity shortfall.
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November 21, 2024
Yellow Corp. Approved For Ch. 11 Plan Disclosures
Bankrupt trucking firm Yellow Corp. said it had resolved all objections to its Chapter 11 plan disclosure statement Thursday, and a Delaware judge agreed to approve the document once it was updated to reflect the changes.
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November 20, 2024
CFPB Subpoenas Trustee In Debt Relief Firm Bankruptcy Case
The U.S. Consumer Financial Protection Bureau has served a subpoena on the Chapter 11 trustee in charge of collapsed California debt relief law firm Litigation Practice Group's bankruptcy estate, the trustee's law firm said in a recent court filing.
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November 20, 2024
Girardi Pushes For New Trial Over Competency Claims
Counsel for Tom Girardi told a federal judge the disbarred attorney is plainly mentally incompetent and deserves a new trial over charges he defrauded clients of $15 million worth of settlement money.
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November 20, 2024
Beasley Allen And J&J Tussle Over Atty Sanctions Bid
Beasley Allen Law Firm accused a Johnson & Johnson talc unit of using "deposition notices as weapons" in its quest to sanction a firm lawyer, while the company said the firm "refused to meaningfully subject itself or its members to any discovery" in its bankruptcy case.
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November 20, 2024
TGI Fridays Gets OK On Bid Process As It Seeks Out Buyers
A Texas bankruptcy judge on Wednesday approved TGI Fridays' procedures for contacting and selecting prospective buyers for its assets after the struggling restaurant chain said it was in discussions with at least 21 potential bidders.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
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November 19, 2024
AI School Tech Founder Stole $10M From Investors, DOJ Says
The founder of AllHere Education Inc., a startup venture that sold artificial intelligence-powered chatbots to schools, is charged with fleecing investors out of nearly $10 million by lying about the company's revenue and using some of the money to pay for her wedding and a house, New York federal prosecutors announced Tuesday.
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November 19, 2024
J&J Wants Beasley Allen Atty Sanctioned For Depo No-Show
Johnson & Johnson's talc unit called on a Texas bankruptcy court to sanction a Beasley Allen Law Firm attorney for "unilaterally" deciding not to attend a scheduled deposition in the company's bankruptcy case.
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November 19, 2024
Poll Workers Fight Giuliani Attys' Bid To Exit Collection Cases
Two of Rudy Giuliani's attorneys doubled down Tuesday on their attempt to withdraw as counsel in the $148 million defamation case against him, saying in a redacted letter that the two Georgia poll workers hoping to stop their withdrawal are unaware of the facts that led up to the request.
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November 19, 2024
Alex Jones Seeks To Stop The Onion From Buying Infowars
Right-wing media fabulist Alex Jones asked a Texas bankruptcy judge to stop the sale of his Infowars website to satirical news publisher The Onion, arguing that the winning bid violated the court's bidding procedures order.
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November 19, 2024
College Decor Co. Dormify Hits Ch. 11 With Up To $50M Debt
Dormify Inc., a retailer that sells college gear and decor for dorms, filed for bankruptcy in Delaware, estimating between $10 million and $50 million in debt less than a week after a Pennsylvania federal court entered a default judgment against it in a lawsuit from an affiliate marketing firm.
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November 18, 2024
Backup Bidder For Jones' Infowars Wants The Onion Bid DQ'd
The Alex Jones-affiliated backup Chapter 7 auction bidder for Jones' right-wing website Infowars asked a Texas bankruptcy judge Monday to disqualify the winning bid from The Onion, a satirical news website, arguing that the bid did not follow the auction procedures.
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November 18, 2024
Biopharm Co. Seelos Files For Ch. 11 After Nasdaq Delisting
Publicly traded biopharmaceutical company Seelos Therapeutics Inc. sought Chapter 11 protection in New York on Saturday, citing between $10 million and $50 million in estimated liabilities.
Expert Analysis
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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When Investigating An Adversary, Be Wary Of Forged Records
Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Strategic Checklist For Bankruptcy Motion Objections
Excerpt from Practical Guidance
Hewing to a set of best practices for objecting to a motion in bankruptcy cases can help creditors’ counsel stay on track as they juggle deadlines and jurisdictions, determine whether filing will help or harm the client, and negotiate with the debtor.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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The 3rd-Party Bankruptcy Release Landscape After Purdue
In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.