Bankruptcy

  • October 11, 2024

    UK Litigation Roundup: Here's What You Missed In London

    This past week in London has seen billionaire Lakshmi Mittal sue steel magnate Sanjeev Gupta in a long-running clash to claw back €140 million ($153 million) of debt, a high-profile AI researcher take action against the Intellectual Property Office to register his software as a listed patent inventor and troubled housing trust Home Reit face a claim by a real estate developer. Here, Law360 looks at these and other new claims in the U.K.

  • October 11, 2024

    Kramer Levin Formalizes Its Private Credit Practice

    Kramer Levin Naftalis & Frankel LLP has formalized a private credit practice co-led by partners David Berg and Yasho Lahiri, putting a name to the work the firm has already been doing in the space.

  • October 10, 2024

    Attys For Voyager Digital Users Get $1.3M After Earn Deal

    Attorneys representing a proposed class of users of the now-bankrupt cryptocurrency firm Voyager Digital Holdings will receive $1.3 million in fees after brokering the settlement of claims the company "aggressively marketed" unregistered securities.

  • October 10, 2024

    Ex-Latham Atty Must Turn Over SEC Whistleblower Docs

    A New Jersey federal judge on Thursday ordered a retired Latham & Watkins LLP attorney to hand over communications between himself and two whistleblowers who tipped off the U.S. Securities and Exchange Commission to an alleged $73 million fraud after one of the whistleblowers dropped his objections to producing the documents.

  • October 10, 2024

    Discount Retailer Plans To Close Its Stores In Ch. 11

    The parent of secondary market retail chain operator Channel Control Merchants on Thursday filed for Chapter 11 protection in Delaware bankruptcy court with more than $76 million in debt and plans to close its 68 locations by the end of the year.

  • October 10, 2024

    Biotech Co. Gritstone Hits Ch. 11 With Over $100M Debt

    Vaccine developer Gritstone bio Inc. filed for Chapter 11 protection in Delaware bankruptcy court Thursday with at least $100 million of debt, saying it was in discussions with a potential bidder for a sale of the business to ensure it can continue researching cancer and other disease treatments. 

  • October 10, 2024

    Calif. Says FDIC Must Wait For $21M Tax Refund

    A California tax agency urged a New York federal court to toss a lawsuit by the FDIC seeking a $20.7 million tax refund on behalf of the shuttered Signature Bank, saying it's entitled to wait for a possible IRS audit before delivering the payment.

  • October 10, 2024

    Atty For McElroy Deutsch's Ex-CFO Wants Out Of Theft Case

    An attorney representing McElroy Deutsch Mulvaney & Carpenter LLP's former chief financial officer — who is behind bars on charges of stealing from the firm — has asked to be relieved as counsel in the firm's New Jersey suit against the former CFO because he has not paid his legal bills.

  • October 10, 2024

    Wheel-Maker Accuride Hits Ch. 11 Again With Up To $1B Debt

    Wheel manufacturer Accuride Corp. has filed for Chapter 11 protection in Delaware bankruptcy court with up to $1 billion of debt and an agreement to restructure its U.S. business, saying supply chain snarls and a rise in the cost of parts have cut into profits.

  • October 09, 2024

    Cisco Gets PTAB To Wipe Out Most Of Network Patent

    An administrative patent board has trimmed most of a patent that was issued to a since bankrupt Tel Aviv telecom supplier and later eventually asserted against Cisco.

  • October 09, 2024

    Singapore Liquidator Seeks Recognition For Overseas Case

    The liquidator of a bankrupt Singapore company has told a New Jersey bankruptcy judge he needs to act to stop one of the company's creditors from using a U.S. lawsuit to undermine court proceedings in Singapore.

  • October 09, 2024

    Sanctioned NJ Firm Asks To Exit $374M Guo Ch. 11

    Four attorneys for associates of convicted fraudster Miles Guo in his Chapter 11 bankruptcy — whose law firm was sanctioned in the proceedings — have urged Connecticut's bankruptcy court to let them leave the case, saying several corporate entities connected to Guo indicated their services are no longer needed.

  • October 09, 2024

    Sullivan & Cromwell Dropped From FTX Investor Suit

    FTX customers dismissed Sullivan & Cromwell LLP from ongoing multidistrict litigation over the crypto exchange's collapse on Wednesday, after an investigation by the customers' counsel into the firm and dialogue with the FTX bankruptcy estate and appointed examiner resolved concerns about the law firm's conduct. 

  • October 09, 2024

    Girardi Seeks New Fraud Trial Over Memory Issues

    Disbarred attorney Tom Girardi has called on a California federal court to overturn his conviction for misappropriating $15 million in client settlement funds, arguing he was not competent to stand trial due to memory problems that left him unable to remember witnesses or even his own attorneys.

  • October 09, 2024

    US Trustee Objects To Milbank Representing Edgio In Ch. 11

    Milbank LLP should be removed as counsel for digital content delivery platform Edgio Inc. in its Chapter 11, the U.S. Trustee's Office told a Delaware federal judge, arguing the firm is conflicted because of its ongoing work representing Edgio directors and officers in various securities suits.

  • October 09, 2024

    Medical Device Service Co. Hits Ch. 11 After Fight With Rival

    The parent company of medical device sale and service business Avante Health Solutions filed for Chapter 11 protection in Delaware court, saying prepetition litigation with competitors drained significant resources that led to a default on its secured debt obligations.

  • October 08, 2024

    Judge Puts US Trustee's Depo On Ice In Judge Romance Suit

    A Houston judge Tuesday put Jackson Walker's deposition of the U.S. Trustee for the Texas divisions of the bankruptcy watchdog on hold while he considers whether a Justice Department guideline applies to the ongoing dispute surrounding a former Texas bankruptcy judge's secret relationship with an ex-partner of the firm.

  • October 08, 2024

    Ex-Girardi Keese CFO Inks Plea Deal Over Firm Embezzlement

    Girardi Keese's former Chief Financial Officer Christopher K. Kamon reached a plea agreement Tuesday with Los Angeles federal prosecutors, who allege he spearheaded a "side fraud" that bilked millions of dollars from the embattled law firm's accounts behind disbarred attorney Tom Girardi's back.

  • October 08, 2024

    FTX's Ellison To Give Up 'Substantially All Of Her Assets'

    Former FTX insider Caroline Ellison agreed to give up "substantially all of her assets" and cooperate with the FTX bankruptcy estate in a deal to resolve the claims against her in an adversary proceeding that sought to recover hundreds of millions of dollars from the collapsed crypto exchange's former leadership.

  • October 08, 2024

    EPA Inks Historic $4.2M Deal Over Philly Refinery Explosion

    The U.S. Environmental Protection Agency revealed on Tuesday that it has reached a $4.2 million proposed deal with Philadelphia Energy Solutions Refining and Marketing LLC, settling a Clean Air Act claim tied to a June 2019 leak and explosion at the company's former South Philadelphia refinery.

  • October 08, 2024

    J&J Wins OK For $505M Deal With Bankrupt Talc Miners

    A Delaware bankruptcy judge approved a $505 million settlement between a pair of talc producers and Johnson & Johnson after overruling an objection by a group of insurers to the deal, which would resolve several ongoing disputes with J&J over talc injury claims.

  • October 08, 2024

    Yellow Tells 10th Circ. To Revive Claims Against Teamsters

    Yellow Corp. called on the Tenth Circuit to reverse a lower court's dismissal of the company's $137 million lawsuit against the Teamsters that claimed the union led the nearly 100-year-old company to shutter, saying the business wasn't required to exhaust the grievance process under a contract.

  • October 08, 2024

    1st Circ. Warned Not To 'Speculate' In Union Debt Ceiling Suit

    A lawyer for a governmental workers' union challenging the constitutionality of the federal debt limit told a First Circuit panel on Tuesday that a January default is a virtual certainty under existing law, and urged the judges to avoid trying to predict whether President Joe Biden and a lame-duck Congress might extend the ceiling.

  • October 08, 2024

    Mass. Seeks Order Forcing Steward To Maintain Coverage

    Massachusetts officials are asking the Texas bankruptcy judge presiding over Steward Health Care's Chapter 11 proceedings to order the company to maintain medical malpractice and workers' compensation coverage for current and potential claims from its operation of hospitals and medical practices in the Bay State.

  • October 08, 2024

    Texas Class Wants Funding Firms To Face Hurricane Ad Suit

    A Texas magistrate judge was wrong to recommend dropping litigation funding companies from a suit alleging a law firm deceptively advertised to hurricane victims, with a proposed class of storm victims arguing the funders must have been aware of the scheme when they loaned the firm $20 million.

Expert Analysis

  • What Calif. Eviction Ruling Means For Defaulting Borrowers

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    A California appellate court's recent decision in Homeward Opportunities v. Taptelis found that a defaulting borrower could not delay foreclosure with an improperly served notice of pendency of action, but leaves open a possibility for borrowers to delay eviction proceedings merely by filing lawsuits, say Anne Beehler and Krystal Anderson at Holland & Knight.

  • Think Like A Lawyer: Follow The Iron Rule Of Trial Logic

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    Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.

  • Banks Have Won Syndicated Loan Battle, But Not The War

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    Though the U.S. Supreme Court's recent denial of certiorari in Kirschner v. JPMorgan preserves the status quo that syndicated loans are not securities, the U.S. Securities and Exchange Commission's discomfort suggests that the underlying issues have not been fully resolved, say attorneys at Crowell & Moring.

  • Potential Unintended Consequences Of NY Sovereign Debt Bill

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    New York lawmakers recently proposed a law to create a framework for restructuring sovereign debt, but there are concerns that the bill will increase financing costs and that it attempts to solve problems that have largely been dealt with by collective action clauses, say Jeffrey Rothleder and Tara Peramatukorn at Squire Patton.

  • The Art Of Asking: Leveraging Your Contacts For Referrals

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    Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.

  • Series

    Being An Equestrian Makes Me A Better Lawyer

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    Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.

  • 4 Ways To Refresh Your Law Firm's Marketing Strategy

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    With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.

  • What 3rd Circ. Trust Ruling Means For Securitization Market

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    Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.

  • Ch. 11 Case Shows Why Plan Acceptance Procedures Are Key

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    Sunland Medical's recent liquidation plan proposal is an important example of how top-notch judges and attorneys propose and analyze complex issues during the confirmation process, and the bankruptcy court was forward-thinking to consider the implications of such proposed treatment in the face of the Bankruptcy Code, says Kyle Arendsen at Squire Patton.

  • Risks Of Rejecting Hotel Mgmt. Agreements Via Bankruptcy

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    In recent years, hotel owners have paid a high price when they attempted to use bankruptcy proceedings to prematurely terminate their hotel management agreements, highlighting that other options may be preferable, say attorneys at Jenner & Block.

  • NC Rulings Show Bankruptcy Isn't Only For Insolvent Debtors

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    Two recent rulings from a North Carolina bankruptcy court show that lack of financial distress is not a requirement for bankruptcy protection, particularly in the Fourth Circuit, but these types of cases can still be dismissed for other reasons, say Stuart Gordon and Alexandria Vath at Rivkin Radler.

  • Series

    Whitewater Kayaking Makes Me A Better Lawyer

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    Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.

  • Cannabis Ruling Lights Path For Bankruptcy Protection

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    A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.

  • This Earth Day, Consider How Your Firm Can Go Greener

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    As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.

  • What Bankruptcy Deadline Appeal May Mean For Claimants

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    If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.

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