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Bankruptcy
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October 30, 2024
American Tire Floats Ch. 11 Sale Plan To Wrap Up In December
Bankrupt tire and wheel seller American Tire Distributors Inc. proposed a Chapter 11 bid and sale process that it intends to wrap up by the end of December, with a group of secured lenders serving as a stalking horse.
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October 30, 2024
FTX Witness Who Saw Bankman-Fried's 'Evil' Avoids Prison
A Manhattan federal judge allowed FTX's former chief engineer to avoid prison Wednesday, crediting his trial testimony against the crypto exchange's founder Sam Bankman-Fried, his ongoing cooperation and his relatively small role in the $11.2 billion fraud.
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October 30, 2024
Canadian Lender Seeks Ch. 15 With Wind-Down Or Sale Plans
A Toronto-based specialty lender and 13 affiliates filed for Chapter 15 recognition of their Canadian insolvency proceedings on Wednesday, with Chesswood Group Ltd. blaming a rise in interest rates and U.S. regional bank failures for heavy losses that added to its over $148 million in debt.
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October 30, 2024
MVP: Kirkland's Steven Serajeddini
Steven N. Serajeddini, a restructuring partner at Kirkland & Ellis LLP, has kept busy over the last year handling some of the largest and most complex bankruptcy cases in the country, including the sprawling insolvencies of flexible workspace provider WeWork Inc. and cancer healthcare company GenesisCare, earning him a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 29, 2024
Alameda Research Wants Crypto Exchange To Return $50M
Alameda Research, the crypto trading affiliate of the bankrupt FTX digital asset empire, has sued the operators of KuCoin cryptocurrency exchange in Delaware bankruptcy court seeking the return of $50 million of assets that continue to be held on the platform despite the debtors' requests.
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October 29, 2024
Defunct Pot Co. CEO Says 'Grifter' Is Trying To Stop Settlement
The founder of a defunct marijuana greenhouse claims the $1.5 million settlement it made with a class of investors has been stymied in unrelated legal action filed by a "sophisticated grifter" looking for personal gain, urging a Colorado federal judge to push aside the bankruptcy action.
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October 29, 2024
Republic First Bank Discriminated Before It Failed, NJ Says
New Jersey authorities said Tuesday that they have concluded that the former Republic First Bank redlined local communities of color in the state in the years before it failed, findings they have taken up with the bank's receiver, the Federal Deposit Insurance Corp.
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October 29, 2024
Baseball Bat Cos. Reach Deal To End Fla. Trademark Battle
A baseball bat company owned by ex-MLB player Yoenis Céspedes has settled an intellectual property lawsuit against several businesses over baseball bats, months after a Florida federal judge handed the former New York Mets outfielder's business a preliminary injunction in the case.
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October 29, 2024
Purdue Creditors Can Sue Sacklers For $11.5B
Creditors of bankrupt OxyContin maker Purdue Pharma LP will get the right to sue the company's owners — certain members of the Sackler family — and others for $11.5 billion, should they choose to do so, a New York judge said on Tuesday.
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October 29, 2024
4th Circ. Unclear On LeClairRyan Founder's Tax Liability
A Fourth Circuit panel appeared confused and noncommittal Tuesday as it wrestled with a narrow question of contract interpretation that could determine whether Gary LeClair of defunct LeClairRyan PLLC is on the hook for massive tax bills tied to the firm's collapse.
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October 29, 2024
MVP: Latham's George Davis
George Davis, global chair of Latham & Watkins LLP's restructuring and special situations practice, negotiated successful prepackaged Chapter 11 plans for Joann Inc. and Audacy and helped Mallinckrodt navigate two bankruptcy cases tied to opioid litigation, earning him a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 29, 2024
PE-Owned Implant Maker Plagued By Lawsuits Hits Ch. 11
Joint implant maker Exactech Inc. on Tuesday filed for Chapter 11 protection in Delaware bankruptcy court with an offer from its lenders to take over the company, as a wave of lawsuits tied to product recalls weighs on the private equity-owned firm.
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October 28, 2024
Judge Hopes To Avoid Vote Issue Repeat In Talc Ch. 11 Plan
A Delaware bankruptcy judge on Monday told a pair of talc producers that the proposed creditor voting procedures on their joint Chapter 11 plans will need some work to avoid a repeat of the voting problems that derailed a previous attempt to settle asbestos injury claims.
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October 28, 2024
Creditors Get Ponzi Finding In Wash. Bankruptcy Trial
A Washington state bankruptcy judge has found that real estate investment firm iCap Enterprises Inc. had operated as a Ponzi scheme, opening up the door for creditors to bring lawsuits and deduct some part of the losses from their taxes, attorneys for the official committee of iCap's unsecured creditors said Monday.
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October 28, 2024
Yellow Corp. Says Failing Biz Excuses WARN Act Duty
Bankrupt trucking firm Yellow Corp. told a Delaware judge Monday that it should get early wins in suits brought by laid off employees, saying that because the company had ceased most business operations, it was excused from notification obligations surrounding the firing of thousands of workers.
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October 28, 2024
NJ Diocese Gets Insurer's Abuse Coverage Suit Tossed
A New Jersey federal court tossed an insurer's suit seeking to escape coverage for more than 200 sexual abuse lawsuits brought against the Catholic Diocese of Trenton, saying Monday the suit "relies on a strictly hypothetical controversy that may never occur."
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October 28, 2024
NY Firm Sued Over Botched $5M Art Collector Ch. 7 Dispute
A family enmeshed in New York's art world is suing their former attorneys in relation to a dismissed bankruptcy proceeding with an art collector over a breach of contract, alleging the attorneys' incompetence lost them $5 million when they moved the case from state court to a Chapter 7 bankruptcy filing.
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October 28, 2024
Attys Seek $48M Fees For Hooking $152M In Tuna Fixing Deals
Lawyers for a class of consumers that sued three of the largest tuna producers accusing them of conspiring to fix tinned fish prices asked a California federal court to approve nearly $50 million in legal costs after a settlement this summer ended nearly nine years of multidistrict litigation.
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October 28, 2024
Mich. Firm Can't Get More Fees From Nassar Suits, Jury Finds
A Michigan federal jury said Monday a personal injury firm already got what it was owed as local counsel for survivors of former USA Gymnastics doctor Larry Nassar's abuse, rejecting the firm's claims against a Colorado firm for another $500,000.
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October 28, 2024
Linklaters Adds 4 A&O Shearman Finance Partners In NY
Linklaters LLP announced Monday the addition of four partners from the recently merged Allen Overy Shearman Sterling to the firm's finance division, deepening its U.S. capital markets and restructuring offerings in New York.
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October 28, 2024
MVP: Brown Rudnick's Jeff Jonas
Jeff Jonas of Brown Rudnick LLP's bankruptcy practice helped spearhead the successful dismissals of Johnson & Johnson's first two bankruptcies tied to talc injury claims and the bankruptcy of a 3M subsidiary facing injury claims over military earplugs, earning him a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 25, 2024
FTX Reaches $228M Deal With Crypto Co. Bybit
The FTX bankruptcy estate reached a deal worth about $228 million to resolve its lawsuit against cryptocurrency exchange Bybit and the firm's investment arm, Mirana Corp., that alleged they unfairly jumped the line to withdraw funds during FTX's meltdown in late 2022 and held the estate's own funds hostage.
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October 25, 2024
Glocal, UpHealth May Settle $115M Award Feud
Indian healthcare services platform Glocal and bankrupt digital health services company UpHealth may be on the verge of resolving their bitter dispute over an ill-fated merger that resulted in a $115 million arbitral award, Glocal has informed an Illinois federal court in a recent request to stay enforcement proceedings.
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October 25, 2024
Spirit Airlines Eyes $80M In Cost Cuts Amid New Deal Rumor
Spirit Airlines will implement layoffs as part of a plan to cut roughly $80 million in costs and has agreed to sell 23 Airbus aircraft to GA Telesis for about $519 million, disclosing the measures as the company is said to be in renewed talks to potentially sell itself to Frontier Airlines.
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October 25, 2024
Judge Wants More Clarity About Alex Jones Ch. 7 Asset Sales
A Texas bankruptcy judge deferred ruling on a motion from the Chapter 7 trustee in the bankruptcy of right-wing media fabulist Alex Jones to conduct sales of certain of the estate's assets, saying he wants to know whether the parties to the case anticipate future litigation on the trustee's ability to sell the assets.
Expert Analysis
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Crypto Gatekeepers May Be The Next Front Of Enforcement
Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Bankruptcy Courts May Be Budding Open To Cannabis Cases
Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Can Chapter 15 Bankruptcy Help Cannabis Businesses?
Attorneys at Fox Rothschild consider whether Chapter 15 may be used as a tool to liquidate U.S. assets of cannabis companies in foreign bankruptcy proceedings, and look at the statutory provisions that may have a bearing on the successful liquidation of assets under the Bankruptcy Code.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.