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Bankruptcy
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July 31, 2025
Capital One Says It Is Disputing FDIC Underpayment Claim
Capital One told investors on Thursday that the Federal Deposit Insurance Corp. is trying to make it pay a greater share of cleanup costs from the 2023 regional banking crisis after taking issue with its call reporting, an effort the bank said it is pushing back on.
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July 31, 2025
Casino Developer Must Stay In Involuntary Ch. 7, Judge Finds
A Delaware bankruptcy judge has refused to throw out or convert the involuntary Chapter 7 proceedings launched against the onetime hopeful developer of a casino in Mississippi, concluding the creditors that forced it into bankruptcy did not act in bad faith.
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July 31, 2025
New Orleans Diocese Working On $180M Ch. 11 Plan Docs
The bankrupt Roman Catholic Archdiocese of New Orleans asked a Louisiana judge for additional time Thursday to work on resolving opposition to its Chapter 11 plan disclosure statement that describes a $180 million settlement fund to provide recoveries to victims of childhood sexual abuse.
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July 31, 2025
Sand Miners Hit Ch. 11, Blaming Order Lull, Lender Issues
Two companies that mine and process sand for fracking have filed for bankruptcy in Texas, one estimating it had at least $50 million in debt and the other estimating at least $100 million, and asked to undergo a joint Chapter 11 in response to a liquidity crunch and issues with their secured lender.
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July 31, 2025
Rising Star: Willkie's Stuart Lombardi
Stuart Lombardi of Willkie Farr & Gallagher LLP has worked for bankruptcy clients including families seeking defamation payouts in Alex Jones' insolvency and the representative of as-yet-unknown asbestos claimants in a talc producer's Chapter 11, earning him a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.
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July 31, 2025
Sunnova Cleared To Sell Assets To Lenders In Ch. 11
Solar panel business Sunnova Energy International Inc. secured a Texas bankruptcy judge's blessing Thursday to sell almost all of its assets to a group of lenders for about $118 million.
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July 30, 2025
3rd Circ. Won't Upend Investors' Class Cert. In J&J Talc Suit
A split Third Circuit on Wednesday upheld a New Jersey federal judge's class certification order in a Johnson & Johnson investor action alleging the company artificially inflated its stock price by failing to disclose cancer risks associated with its talcum powder products, finding the lower court did not err in concluding that common issues predominate in the suit.
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July 30, 2025
2nd Circ. Backs Live Well Founder's Bond Fraud Convictions
The Second Circuit affirmed convictions for Live Well's founder for inducing lenders to extend credit by jacking up bond valuations to increase its debt and borrow against it, ruling Wednesday jurors had enough evidence to determine he misrepresented the value of collateral to secure loans and did so with fraudulent intent.
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July 30, 2025
Rhodium Says Cooling System Infringement Claims Barred
Bankrupt cryptocurrency miner Rhodium told a Texas federal bankruptcy judge that a company that creates large scale cooling systems cannot bring patent infringement claims, saying Wednesday the company's claims already failed in a federal district court.
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July 30, 2025
Justices Urged To OK Bankruptcy Courts As Tax Debt Venues
Bankruptcy courts are authorized to decide the amount and legality of nondischargeable tax claims, an Indiana couple told the U.S. Supreme Court in a bid to overturn a Seventh Circuit ruling to the contrary.
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July 30, 2025
Judge Unsure Of Broad Liability Shield Theory In Fraud Suits
A Michigan federal judge on Wednesday pressed an attorney representing automation equipment manufacturers in fraudulent transfer suits on if their argument that their system of layered automated credit payments frees them from liability would allow every business to get around an act designed to prevent fraud in the construction industry.
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July 30, 2025
Celsius Administrator Gets OK To Continue Clawbacks
A New York bankruptcy judge shot down challenges to attempts by the Chapter 11 plan administrator for Celsius Networks to claw back transfers, saying a settlement provision didn't prevent the administrator from pursuing the clawbacks and the transactions fall under U.S. jurisdiction.
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July 30, 2025
Rising Star: Brown Rudnick's Tristan Axelrod
Tristan Axelrod of Brown Rudnick LLP steered bankrupt cryptocurrency platform BlockFi through an $874 million settlement with FTX and a Chapter 11 reorganization that paid creditors in full, earning him a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.
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July 29, 2025
Jackson Walker Gets Another Deal On Judge-Romance Claims
Jackson Walker LLP has reached another settlement with former bankruptcy clients to resolve fee disputes related to the concealed romance of a former partner with the firm and former Texas bankruptcy Judge David R. Jones, according to a motion filed Tuesday in Texas federal court.
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July 29, 2025
8th Circ. Says Bankruptcy Sale Appeal Dead Without Stay
The Eighth Circuit on Tuesday rejected a woman's bid to undo an order approving a sale in her Chapter 7 bankruptcy, saying she didn't get a stay of the sale and so her appeal had to be dismissed.
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July 29, 2025
Prime Core Ch. 11 Trust Seeks Return Of $2.1M In Transfers
The litigation trust for Prime Core Technologies has sued to claw back $2.1 million in cash and cryptocurrency paid out to customers in the weeks before its bankruptcy filing, saying other creditors are facing a serious recovery shortfall worsened by the payments.
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July 29, 2025
DOJ Drops Challenge Of Amex GBT's $570M Deal For CWT
The U.S. Department of Justice said Tuesday that enforcers have agreed to drop their case challenging American Express Global Business Travel Inc.'s planned $570 million purchase of corporate travel management rival CWT Holdings LLC.
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July 29, 2025
Law Firm Beats NJ Atty's Fraud Suit Under Anti-SLAPP Law
Maurice Wutscher LLP got an attorney's fraud suit against it thrown out under New Jersey's anti-SLAPP law on Tuesday, allowing the firm to escape complex litigation across multiple venues stemming from the breakdown of a former New Jersey firm.
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July 29, 2025
Mich. Judge Sanctions Attys For False Case Quotations
A Michigan federal judge on Monday ordered plaintiffs' attorneys in two cases against a robotics company to pay for the time opposing counsel took in filing an additional briefing because of false case quotations.
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July 29, 2025
Seeger Weiss Named Lead Negotiation Counsel In J&J MDL
A New Jersey federal judge overseeing long-running multidistrict federal litigation against Johnson & Johnson over its talcum powder products has appointed Christopher A. Seeger of Seeger Weiss LLP to lead a negotiation team to guide plaintiffs through settlement talks.
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July 29, 2025
Rising Star: Weil's David Cohen
David J. Cohen of Weil Gotshal & Manges LLP has represented Steward Health Care in its sprawling Chapter 11 bankruptcy involving 31 hospitals across eight states, and he was selected to lead the firm's growing Miami office, earning him a spot among bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.
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July 29, 2025
Rochester Diocese Judge To Approve $246M Ch. 11 Plan
A New York bankruptcy judge said Tuesday he was prepared to approve the Roman Catholic Diocese of Rochester's $246.4 million settlement of abuse claims in Chapter 11 after survivors voted unanimously to accept the deal.
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July 28, 2025
UpHealth Moves To Toss Glocal Ch. 11 Dispute
Bankrupt medical tech company UpHealth is urging a Delaware bankruptcy judge to nix a $200 million adversary proceeding launched by Glocal Healthcare in a bitter feud over an ill-fated merger, accusing the Indian digital healthcare services platform of bad faith through a pattern of delay and obfuscation.
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July 28, 2025
Co-Owner Of Georgia Aparments Files Ch. 11 With $25M Debt
MMRE Management-Patriot Place LLC — the minority owner of an apartment complex in Georgia — has sought Chapter 11 protection in a New York bankruptcy court, saying it purchased the property at an inflated price and the apartments have faced mismanagement and foreclosure.
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July 28, 2025
Jackson Walker Settles Judge Romance Claims For $485K
Jackson Walker LLP has reached a $485,000 settlement with two former bankruptcy clients to resolve a dispute related to the concealed romance of a former partner and former Texas bankruptcy judge David R. Jones, according to a motion filed Friday.
Expert Analysis
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Series
Playing Soccer Makes Me A Better Lawyer
Soccer has become a key contributor to how I approach my work, and the lessons I’ve learned on the pitch about leadership, adaptability, resilience and communication make me better at what I do every day in my legal career, says Whitney O’Byrne at MoFo.
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Law School's Missed Lessons: Learning From Failure
While law school often focuses on the importance of precision, correctness and perfection, mistakes are inevitable in real-world practice — but failure is not the opposite of progress, and real talent comes from the ability to recover, rethink and reshape, says Brooke Pauley at Tucker Ellis.
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23andMe Fine Signals ICO's New GDPR Enforcement Focus
Many of the cybersecurity failures identified by the Information Commissioner’s Office in its investigation of 23andMe, recently resulting in a £2.3 million fine, were basic lapses, but the ICO's focus on several new U.K. General Data Protection Regulation considerations will likely carry into the future, say lawyers at Womble Bond.
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Adapting To Private Practice: From ATF Director To BigLaw
As a two-time boomerang partner, returning to BigLaw after stints as a U.S. attorney and the director of the Bureau of Alcohol, Tobacco, Firearms and Explosives, people ask me how I know when to move on, but there’s no single answer — just clearly set your priorities, says Steven Dettelbach at BakerHostetler.
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4 In-Flux Employment Law Issues Banks Should Note
Attorneys at Ogletree provide a midyear update on employment law changes that could significantly affect banks and other financial service institutions — including federal diversity equity and inclusion updates, and new and developing state and local artificial intelligence laws.
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Playing Baseball Makes Me A Better Lawyer
Playing baseball in college, and now Wiffle ball in a local league, has taught me that teamwork, mental endurance and emotional intelligence are not only important to success in the sport, but also to success as a trial attorney, says Kevan Dorsey at Swift Currie.
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Ohio Banking Brief: All The Notable Legal Updates In Q2
Ohio's financial services sector saw several significant developments in the second quarter of 2025, including a case that confirmed credit unions' setoff rights, another that established contract rights between banks and cardholders, and the House passage of a digital asset bill, say attorneys at Frost Brown.
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A Deep Dive Into 14 Nixed Gensler-Era SEC Rule Proposals
The U.S. Securities and Exchange Commission last month formally withdrew 14 notices of proposed rulemaking, including several significant and widely criticized proposals that had been issued under former Chair Gary Gensler's leadership, signaling a clear and definitive shift away from the previous administration, say attorneys at Dechert.
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Law School's Missed Lessons: Skillful Persuasion
In many ways, law school teaches us how to argue, but when the ultimate goal is to get your client what they want, being persuasive through preparation and humility is the more likely key to success, says Michael Friedland at Friedland Cianfrani.
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Special Committees Gain Traction In Chapter 11 Investigations
Excerpt from Practical Guidance
Tara Pakrouh at Morris James discusses why special committees are becoming more common in Chapter 11 bankruptcies, how they've been used in real cases and what makes them effective.
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Litigation Inspiration: How To Respond After A Loss
Every litigator loses a case now and then, and the sting of that loss can become a medicine that strengthens or a poison that corrodes, depending on how the attorney responds, says Bennett Rawicki at Hilgers Graben.
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The Metamorphosis Of The Major Questions Doctrine
The so-called major questions doctrine arose as a counterweight to Chevron deference over the past few decades, but invocations of the doctrine have persisted in the year since Chevron was overturned, suggesting it still has a role to play in reining in agency overreach, say attorneys at Crowell & Moring.
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Ch. 7 Ruling Is Warning For Merchant Cash Advance Providers
A New York bankruptcy court’s recent ruling in favor of a Chapter 7 trustee for the bankruptcy estate of JPR Mechanical shows merchant cash advance providers why superficial agreement labels will not shield against preference liability, and serves as a guidepost for future contract drafting, say attorneys at Eversheds Sutherland.
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Series
Playing Mah-Jongg Makes Me A Better Mediator
Mah-jongg rewards patience, pattern recognition, adaptability and keen observation, all skills that are invaluable to my role as a mediator, and to all mediating parties, says Marina Corodemus.
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Series
Law School's Missed Lessons: Navigating Client Trauma
Law schools don't train students to handle repeated exposure to clients' traumatic experiences, but for litigators practicing in areas like civil rights and personal injury, success depends on the ability to view cases clinically and to recognize when you may need to seek help, says Katie Bennett at Robins Kaplan.