Bankruptcy

  • December 06, 2024

    Creditor Says Failed Solar Biotech Bidder Shouldn't Get Fee

    A creditor of Solar Biotech asked a Delaware bankruptcy judge to deny a request to pay the failed stalking horse bidder's $456,000 breakup fee, arguing there was no evidence the protections were necessary or that the bidder relied on them.

  • December 06, 2024

    Cancer Claimant Amici Slam Bestwall's Two-Step Ch. 11

    Georgia-Pacific unit Bestwall's bid to handle asbestos liability using a controversial "Texas Two-Step" Chapter 11 case is "grotesquely inequitable" and "plainly at odds" with the tenets of bankruptcy, a group of injury claimants in separate insolvency proceedings said in a brief urging the Fourth Circuit to toss the case.

  • December 06, 2024

    Conn. Panel Pares $150M From $1.44B Alex Jones Verdict

    The Connecticut Appellate Court on Friday sliced $150 million from a $1.44 billion trial court judgment against Infowars host Alex Jones over his claims that the Sandy Hook shooting was a hoax, holding the state's consumer protection laws did not allow the massacre's survivors to recover for alleged harms connected to Jones' ancillary product sales.

  • December 06, 2024

    Calif. Trucking Company Files Ch. 11 With $325M Of Debt

    California-based trucking company KAL Freight Inc. filed for Chapter 11 protection in a Texas bankruptcy court, saying it has $325 million of debt obligations it can't meet after a post-COVID expansion effort foundered with slackening customer demand.

  • December 05, 2024

    Icon Aircraft Cleared For Ch. 11 Plan With Investor Claims Deal

    A Delaware bankruptcy judge said Thursday he would confirm the Chapter 11 plan from light-sport aircraft producer Icon after the debtor settled with a group of shareholders that sued the company in derivative litigation.

  • December 05, 2024

    'Texas Two-Step,' Exec Bonus Bankruptcy Bills Reintroduced

    Lawmakers in the U.S. Senate this week renewed efforts to pass two bankruptcy bills that would bolster rights for employees and crack down on the controversial use of so-called Texas two-step bankruptcies.

  • December 05, 2024

    3rd Circ. Affirms ConocoPhillips Ruling On $8.5B Debt

    The Third Circuit on Thursday affirmed a ruling paving the way for ConocoPhillips' participation in an auction for control of the U.S. oil giant Citgo to enforce an $8.5 billion debt against Venezuela.

  • December 05, 2024

    Ex-CEO Of Solar Biz ISun Says Ch. 11 Plan Doesn't Add Up

    The former CEO of solar power company iSun is asking a Delaware bankruptcy judge to reject the company's proposed Chapter 11 plan, saying it fails to provide for payment of priority claims, including his own deferred paychecks.

  • December 05, 2024

    FTX Clawback Deal With Ex-Alameda Co-CEO Gets Court Nod

    A Delaware bankruptcy judge has approved a deal to settle clawback claims by FTX against former Alameda Research Ltd. executive John Samuel Trabucco, who agreed to hand over two San Francisco apartments purchased in 2021 for $8.7 million and a 53-foot yacht bought in 2022 for $2.5 million.

  • December 05, 2024

    Lowenstein Sandler Suit Gets New NJ Judge After DQ Request

    Lowenstein Sandler LLP has persuaded an Essex County Superior Court judge to recuse himself from the firm's $800,000 fee suit against a cannabis dispensary over social connections to the litigants and their counsel and had the case assigned to a new judge this week.

  • December 04, 2024

    Guo Trustee Balks At Boies Schiller's Clawback Transfer Bid

    The Chapter 11 trustee overseeing Chinese exile Miles Guo's bankruptcy in Connecticut says Boies Schiller Flexner LLP should not be allowed to move a nearly $654,000 clawback action from bankruptcy court to district court, suggesting a bankruptcy judge is better poised to consider his asset recovery theories.

  • December 04, 2024

    5th Circ. Probes $8M Payout For Allegedly Undelivered Services

    An investment company on Wednesday found itself before the Fifth Circuit having to justify paying $7.7 million for allegedly undelivered services from an affiliate, as it appeals a $2.6 million bill it got hit with for prematurely ending a contract.

  • December 04, 2024

    Alex Jones Atty Needs 30-Day Suspension, Ethics Boss Says

    The lead Connecticut attorney in Infowars host Alex Jones' Sandy Hook defamation trial should be suspended for 30 days for directing a subordinate to transmit the victims' personal medical records to other Jones attorneys, the state's legal ethics watchdog said Wednesday.

  • December 04, 2024

    Avon Cleared To Sell To Parent Co. For $125M In Ch. 11

    A Delaware bankruptcy judge on Wednesday said he would approve a settlement between Avon Products Inc. and Brazilian parent company Natura that clears the way for the beleaguered cosmetics giant to sell itself to Natura for $125 million.

  • December 04, 2024

    3rd Circ. Preview: BetMGM Addiction Case Tops Dec. Lineup

    The Third Circuit is set to determine if BetMGM online casino should face a lawsuit claiming it violated New Jersey consumer protection and gambling laws for allegedly enticing a man with a gambling problem to play its games.

  • December 04, 2024

    NY Diocese Gets OK For Ch. 11 Plan With Optional Releases

    A New York bankruptcy judge approved a Long Island-based Roman Catholic diocese's Chapter 11 plan on Wednesday after hearing it had resolved objections from the U.S. Trustee's Office with a two-tier claims release system for sexual abuse claimants.

  • December 03, 2024

    Mich. Seat Co. On Hook For €4.1M German Lease, Suit Says

    A German property owner has said in a new complaint that a Michigan-based automotive seat manufacturer is on the hook for a €4.1 million ($4.3 million at current exchange rates) lease after its European entity defaulted on payments and entered insolvency proceedings.

  • December 03, 2024

    Judge Denies News Orgs. Bid To Unseal FTX Customer Names

    A Delaware federal judge on Tuesday said he wouldn't reverse an order allowing defunct crypto platform FTX Trading Ltd. to keep customer names out of public bankruptcy filings, rejecting an appeal from major news outlets to unseal the information and writing that sealing the information preserved FTX's assets and protected creditors from cybercrime.

  • December 03, 2024

    Attys For Sears Ex-CEO, Appraisal Camp Clash In Chancery

    A lawyer for Sears Hometown and Outlet Stores' former top fiduciary told a Delaware vice chancellor on Tuesday that case law does not support carving out stockholder proceeds from a fiduciary breach settlement in order to pay shareholders whose separate appraisal lawsuit was foiled by SHOS' bankruptcy.

  • December 03, 2024

    New Judges Include One Who Aided Puerto Rico Bondholders

    The Senate on Tuesday confirmed two federal judges for Pennsylvania and one for the District of Columbia, who came under scrutiny during her confirmation hearing for her work at Jones Day.

  • December 03, 2024

    Fla. Court Urged To OK 'Offensive' $645K Deal In Firm's Ch. 11

    A law firm debtor urged a Florida bankruptcy court Tuesday to approve a $645,000 settlement in its Chapter 11 to resolve a proposed fraudulent misrepresentation class action in state court against a former Miami insurance attorney, who called the potential deal "offensive" and said it's possible he'll be sued again.

  • December 03, 2024

    Alex Jones Atty Seeks Leniency Over Sandy Hook 'Mistake'

    The lead attorney in Infowars host Alex Jones' $1.44 billion Connecticut defamation trial admits he "made a mistake" when he approved sending several Sandy Hook Elementary School victims' confidential records to other Jones attorneys, saying Tuesday he should receive either no discipline or a reprimand in a pared-down case.

  • December 03, 2024

    Celsius Founder Cops To Fraud That Sunk $25B Crypto Lender

    Celsius Network founder Alex Mashinsky told a Manhattan federal judge Tuesday that he lied when he told the public that the fallen $25 billion crypto lender's tokens were a safe investment, pleading guilty to fraud charges ahead of a January criminal trial.

  • December 03, 2024

    Film Financing Firm Gets OK For Ch. 11 Auction In January

    A Delaware bankruptcy judge gave Film Finance Inc., a company that offers financing for high-profile film projects, the go-ahead Tuesday to put itself on the auction block early next year after dropping protections for its baseline bidder that had attracted the ire of the U.S. Trustee's Office.

  • December 03, 2024

    Texas Oil Driller Hits Ch. 11 With $207M Debt-Swap Plan

    Oil and gas drilling services provider Independence Contract Drilling has filed for Chapter 11 protection in a Texas bankruptcy court with more than $230 million in debt and a prepackaged debt-swap restructuring plan.

Expert Analysis

  • Best Text Practices In Light Of Terraform's $4.5B Fraud Deal

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    Text messages were extremely important in a recent civil trial against Terraform Labs, leading to a $4.5 billion settlement, so litigants in securities fraud cases need to have robust mobile data policies that address the content and retention of messages, and the obligations of employees to allow for collection, say Josh Sohn and Alicia Clausen at Crowell & Moring.

  • Series

    Solving Puzzles Makes Me A Better Lawyer

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    Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.

  • Texas Ethics Opinion Flags Hazards Of Unauthorized Practice

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    The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • 2 Options For Sackler Family After High Court Purdue Ruling

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    After the U.S. Supreme Court recently blocked Purdue Pharma's plan to shield the family that owns the company from bankruptcy lawsuits, the Sacklers face the choice to either continue litigation, or return to the bargaining table for a settlement that doesn't eliminate creditor claims, says Gregory Germain at Syracuse University.

  • In Memoriam: The Modern Administrative State

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    On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.

  • Revisiting Scalia's 'What's It To You?' After Kaiser Ruling

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    While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.

  • Series

    Florida Banking Brief: All The Notable Legal Updates In Q2

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    The second quarter of 2024 brought two notable bills that will affect Florida's banking and finance community across many issues, including virtual currency abandonment, cancellation of financial services on the basis of political opinions, and the exemption amount of motor vehicles, say Joshua Prever and Andrew Balthazor at Holland & Knight.

  • How To Clean Up Your Generative AI-Produced Legal Drafts

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    As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.

  • Series

    Boxing Makes Me A Better Lawyer

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    Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.

  • Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage

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    The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.

  • Opinion

    Industry Self-Regulation Will Shine Post-Chevron

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    The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.

  • 3 Ways Agencies Will Keep Making Law After Chevron

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    The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.

  • After Chevron

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    Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 37 different rulemaking and litigation areas.

  • Opinion

    Atty Well-Being Efforts Ignore Root Causes Of The Problem

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    The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.

  • Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan

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    The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.

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