Bankruptcy

  • May 03, 2024

    Harvey Weinstein Denied Win In $1M Fee Fight With Jose Baez

    A New York state judge on Friday denied an early win to Harvey Weinstein in his $1 million fee dispute with criminal defense attorney Jose Baez, saying the incarcerated former media mogul produced nothing but a "self­-serving affidavit" and "haphazard printout" to make his arguments. 

  • May 03, 2024

    9th Circ. Orders 2nd Look At Stay In PG&E Wildfire Suit

    The Ninth Circuit on Friday told a lower court to reconsider its order staying claims PG&E investors brought against officers, directors and others over wildfire liability, saying more factors should have been considered before the stay was granted.

  • May 03, 2024

    Rue21 Can Use Lender Cash As It Moves To Shut All Stores

    A Delaware bankruptcy judge gave an initial nod Friday to teen apparel company rue21's bid to use its lender cash collateral to fund itself as it works to sell off inventory across 540 stores in the U.S. during its Chapter 11 case.

  • May 03, 2024

    Ohio Atty Gets 3rd Suspension After Not Reporting Conviction

    A Cleveland-area attorney trying to get reinstated after neglecting bankruptcy cases was suspended yet again by the Ohio Supreme Court, which said he failed to report a drug conviction to his county bar association for almost eight months.

  • May 03, 2024

    Kwok's Ex-Chief Of Staff Pleads Out Before $1B Fraud Trial

    The former chief of staff to exiled Chinese billionaire Ho Wan Kwok pled guilty in Manhattan federal court on Friday to participating in a $1 billion investor fraud, less than three weeks before she was scheduled to go to trial alongside her erstwhile boss.

  • May 02, 2024

    Ontario-Based Glass Co.'s Receiver Seeks Ch. 15 Recognition

    The Canadian court-appointed receiver for Ontario-based glass facade company Antamex Industries ULC asked the Delaware bankruptcy court for Chapter 15 recognition of the company's liquidation in the United States, saying that unless the Canadian proceedings and the receiver's stewardship is acknowledged, U.S. litigation could hurt creditors' return.

  • May 02, 2024

    Plastic-Film Maker Announces $200M Recapitalization

    Plastic-film maker Transcendia Holdings announced Thursday that it had reached a recapitalization deal that will cut $200 million in debt, provide $114 million in new capital, and hand majority ownership of the company to private equity firm Industrial Opportunity Partners.

  • May 02, 2024

    Ex-FTX Boss Ryan Salame To Give Up $5.9M Bahamas House

    Ryan Salame, the former co-chief executive of FTX Digital Markets, an affiliate of bankrupt cryptocurrency exchange FTX Trading Ltd., has agreed to transfer a $5.9 million house he owns in the Bahamas to FTX in lieu of paying the firm restitution over fraudulent political donations, according to a Wednesday motion.

  • May 02, 2024

    Skin Care Drug Co. Gets OK For Ch. 11 Wind-Down Plan

    A Delaware bankruptcy judge on Thursday said she would approve the unopposed and unanimously approved Chapter 11 wind-down plans of the company previously known as Timber Pharmaceuticals Inc.

  • May 02, 2024

    Teen Retailer Rue21 Hits Ch. 11 Again With Plans To Sell

    Retail fashion company rue21, which made a trip through bankruptcy most recently in 2017, filed for Chapter 11 protection in Delaware court Thursday, disclosing $194.4 million in debt and a plan to sell the business.

  • May 01, 2024

    Weinstein On Track For Fall Trial Redo On NY Rape Charges

    A New York judge said Wednesday that disgraced movie mogul Harvey Weinstein will be retried sometime after September, following last week's decision by the state's highest court to overturn his rape conviction due to the admission of overly broad evidence at trial.

  • May 01, 2024

    Eiger Gets Deal With Merck Over $46M Rare-Disease Drug Sale

    Bankrupt Eiger BioPharmaceuticals Inc. told a Texas federal judge Wednesday it had struck a tentative agreement with drug company Merck & Co. over licensing rights to a rare-disease drug that it is selling for $46.1 million.

  • May 01, 2024

    Ex-NFL Star Romanowski Files For Ch. 11 Amid $15M Tax Suit

    Ex NFL star and Super Bowl champion Bill Romanowski has filed for Chapter 11 protection in California after being slapped with a $15.5 million income tax suit.

  • May 01, 2024

    Judge Enjoins Baseball Bat Cos. In Fla. Trademark Fight

    A pair of companies owned by ex-MLB player Yoenis Céspedes have won a preliminary injunction against several businesses in an intellectual property dispute in Florida federal court over baseball bats, saying the former New York Mets outfielder's companies are likely to succeed on a trademark claim.

  • May 01, 2024

    Kirkland Rips 'Tortured' Theory In Texas Judge Romance Suit

    Kirkland & Ellis LLP's inclusion in a Texas federal suit accusing it of conspiring with Jackson Walker LLP, a disgraced Texas bankruptcy judge and a former Jackson Walker partner who was his romantic partner to oust a CEO is based on "a tortured theory" and "flimsy facts," the firm declared.

  • May 01, 2024

    J&J Proposes $6.5B Deal To End Ovarian Cancer Claims

    Johnson & Johnson said Wednesday it is proposing a prepackaged reorganization plan for its talc unit that will pay out $6.5 billion to resolve claims that its talc-based baby powder caused ovarian cancer, if a supermajority of claimants agree to the plan.

  • April 30, 2024

    Attys Barred From Practicing Over Ch. 13 Real Estate Scams

    Enforcement actions against two consumer bankruptcy attorneys who admitted they hid their involvement in schemes to acquire their clients' homes during Chapter 13 proceedings have resulted in sanctions barring them from practicing in certain districts, the U.S. Department of Justice's Trustee Program announced Tuesday.

  • April 30, 2024

    Insurance Mogul Can't Escape $164M Dutch Payout Yet

    A shareholder accused of raiding a Dutch insurer's coffers can't stop it from trying to enforce a nearly $164 million arbitration victory, a North Carolina federal judge ruled, finding that he didn't show it's not enforceable in U.S. courts.

  • April 30, 2024

    Vice Media Gets OK For Ch. 11 Liquidation Plan

    A New York bankruptcy judge said at a hearing Tuesday he would confirm Vice Media's Chapter 11 liquidation plan, following a $350 million sale last year.

  • April 30, 2024

    Judge Tosses LTL's Suit Over Article Linking Talc To Cancer

    A New Jersey federal judge on Tuesday tossed a suit from the bankrupt talc unit of Johnson & Johnson accusing three doctors of damaging its business through a medical journal article it claimed was backed by "junk science," ruling that the doctors having served as expert witnesses in the Garden State is not enough to show that the court has jurisdiction over its claims.

  • April 30, 2024

    Atty Wants Out Of 'Coup' Suit Over Judge Romance

    The former Jackson Walker LLP attorney whose secret relationship with a Texas judge ignited an ethics scandal wants out of a racketeering suit accusing her of "orchestrating a coup" in a bankruptcy case, calling the suit a "dubious" attempt to blame her for an ex-CEO's "disastrous" mismanagement of his family business.

  • April 30, 2024

    NYC Law Firm Says Japanese Auto Supplier Owes $800K Fees

    New York law firm Florence Rostami Law LLC seeks more than $800,000 in legal fees and expenses after representing a Japanese auto part manufacturer in litigation and bankruptcy court proceedings in a contract dispute with a former vendor, the firm told a Michigan federal court.

  • April 30, 2024

    Moritt Hock Adds 3 Attorneys In NYC, Garden City Offices

    Moritt Hock & Hamroff LLP has hired an associate and counsel and has rehired a former corporate associate who spent three years working for the firm, according to a Monday announcement.

  • April 29, 2024

    Terraform Says SEC's $5.4B Sanction Bid Fails Under Morrison

    Crypto firm Terraform Labs and its founder Do Kwon struck back at the U.S. Securities and Exchange Commission's $5.4 billion sanctions request following its trial win, filing dual briefs Monday that argued the regulator has only shown that "a small number" of allegedly illegal token sales took place in the U.S. and under its jurisdiction as outlined in the U.S. Supreme Court's Morrison decision.

  • April 29, 2024

    Herbert Smith Adds Bankruptcy Pro To Thai Disputes Practice

    Herbert Smith Freehills has hired an expert in construction disputes and insolvency and bankruptcy matters as a new partner for its Bangkok office, a move the firm says will strengthen its disputes practice in Thailand's capital.

Expert Analysis

  • USW Ruling Highlights Successor Liability In Bankruptcy Sale

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    A Delaware federal court's recent decision in United Steelworkers v. Braeburn is important for potential asset purchasers in Section 363 bankruptcy sales as it found the purchaser was subject to obligations under the National Labor Relations Act notwithstanding language in the sale approval order transferring the debtor's assets free and clear of successor liability, say attorneys at Arnold & Porter.

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • Ch. 12 Ruling Is A Helpful Addition To Interest Rate Case Law

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    In its recent In re: Topp ruling, the Eighth Circuit addressed the question of which rate of interest debtors should pay under a bankruptcy plan, showing that the choice of interest rate plan is a factual issue subject to appellate review for clear error, and not a legal issue subject to de novo review, says Donald Swanson at Koley Jessen.

  • Section 363 Ruling Lines Up With Avoidance Action Precedent

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    While it is safe to say that avoidance actions in bankruptcy cases are the exception, not the rule, when selling assets in a Section 363 sale, the Eighth Circuit’s recent ruling in Simply Essentials’ Chapter 5 case reveals uniformity among courts that have considered the issue, says Daniel Lowenthal at Patterson Belknap.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

  • Series

    Participating In Living History Makes Me A Better Lawyer

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    My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.

  • How Attys Can Weather The Next Disaster Litigation Crisis

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    On the heels of a number of damage catastrophes and ensuing litigation this summer alone, attorneys must recognize that it’s a matter of when, not if, the next disaster — whether natural or artificial — will strike, and formulate plans to minimize risks, including consolidating significant claims and taking remedial measures, says Mark Goldberg at Cosmich Simmons.

  • Opinion

    Private Equity Owners Can Remedy Law Firms' Agency Issues

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    Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.

  • Opinion

    Proving Causation Is Key To Fairness And Justice

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    Ongoing litigation over talc and acetaminophen highlights the important legal distinction between correlation and causation — and is a reminder that, while individuals should be compensated for injuries, blameless parties should be protected from unjust claims, say Drew Kershen at the University of Oklahoma College of Law, and Henry Miller at the American Council on Science and Health.

  • Potential WeWork Bankruptcy May Disrupt Coworking Spaces

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    If WeWork files for bankruptcy, as hinted at in its recent quarterly earnings report, landlords may struggle to take over management of WeWork's coworking spaces, but the coworking industry as a whole is showing some promise in adapting to the market's evolving post-pandemic office needs, says Ann Chandler at Hall Estill.

  • How To Protect Atty-Client Privilege While Using Generative AI

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    When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.

  • What FERC-PJM Negotiations Mean For The Energy Industry

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    Following the aftermath of Winter Storm Elliot, disputes associated with the PJM Interconnection settlement negotiations taking place at the Federal Energy Regulatory Commission have brought to the fore a potential legal minefield arising out of extreme weather events that could lead to commercial risks for power generating companies, say attorneys at Hogan Lovells.

  • How New Lawyers Can Leverage Feedback For Growth

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    Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.

  • Circuit Rulings Confirm Ch. 11 Trustee Fee Refund Trend

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    Recent Ninth and Eleventh Circuit rulings that Chapter 11 debtors are entitled to refunds for unconstitutional bankruptcy trustee fees paid under the Bankruptcy Judgeship Act support a developing trend in debtors' favor, making it likely that courts considering the same question will follow suit, says Adam Herring at Nelson Mullins.

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