Bankruptcy

  • August 30, 2024

    Vyaire Medical Gets OK For $90M Sale Of Business Units

    A Delaware bankruptcy judge Friday approved the $90.5 million sale of ventilator maker Vyaire Medical's businesses, overriding creditor arguments that a deal with lenders apportioning the sale proceeds would leave Vyaire too little cash to get to the end of its Chapter 11 case.

  • August 30, 2024

    5th Circ. Rejects SEC Whistleblower Award Calculation Appeal

    The Fifth Circuit on Friday rejected petitions by two whistleblowers who allege that the U.S. Securities and Exchange Commission shortchanged them after they helped to uncover purportedly the largest fraud in Texas history, by a company that was driven into bankruptcy.

  • August 30, 2024

    Steward Says It Has Deal To Avert Some Hospital Closures

    Bankrupt hospital operator Steward Health Care System has a tentative agreement that would eliminate over $6 billion of claims against it, keep the majority of its 31 hospitals operating while saving three from potential closure and set it on a path to confirm a Chapter 11 plan, attorneys told a Texas bankruptcy judge Friday.

  • August 30, 2024

    Coach USA Accused Of Mass Layoff Without Timely Notice

    Bus company Coach USA, which filed for Chapter 11 bankruptcy in June, failed to give drivers a timely notice of mass layoffs as required by state and federal law, according to a proposed class action filed in New Jersey federal court.

  • August 30, 2024

    Republic Bank Tells IP Lawsuit Judge It's Bankrupt

    An embattled Pennsylvania-based bank has sought bankruptcy protection following its high-profile seizure by federal authorities as it grappled with $1.3 billion in debt, according to its latest filing in a trade secrets misappropriation suit.

  • August 30, 2024

    Giuliani Pretends To Live In Fla. To Shield Condo, Suit Says

    The Georgia election workers who secured a $148 million judgment against former New York Mayor Rudy Giuliani in D.C. federal court hit him with a new lawsuit Friday, saying he is "pretending" to live in Florida in "a brazen attempt to shield his luxury Palm Beach condo" from them.

  • August 30, 2024

    FTX Exec Drops Bid To Undo Plea Amid Partner's Indictment

    Former FTX executive Ryan Salame is no longer seeking to vacate his guilty plea that he says Manhattan federal prosecutors induced with a false promise to halt a campaign finance probe into his partner Michelle Bond, though his claims that they broke their word will still be litigated before two different judges.

  • August 29, 2024

    'You Don't Need To Be Obnoxious': Ch. 11 Hearing Gets Rowdy

    A California bankruptcy judge on Thursday slammed an attorney for what he called her "obnoxious" courtroom behavior, while the lawyer argued that a proposed liquidation plan for a defunct law firm could enrich the professionals managing the case and leave little for claimants.

  • August 29, 2024

    Lannett Says Areva Reneged On Cancer-Drug Deal After Ch. 11

    Lannett Pharmaceuticals hit generic-drug maker Areva Pharmaceuticals with a contract suit in Delaware's Court of Chancery on Thursday, accusing Areva of breaching their 2022 agreement that gave Lannett exclusive rights to distribute Areva's injectable anticancer drug after Lannett emerged from a prepackaged Chapter 11 bankruptcy.

  • August 29, 2024

    Judiciary Group Urged To Table 'Mega' Bankruptcy Panel Ban

    A subcommittee urged the Judicial Conference's bankruptcy rule advisory committee to hold off on considering a ban on so-called mega bankruptcy panels at an upcoming meeting, saying a different committee's work overlaps with a rule proposed to curb the controversial practice.

  • August 29, 2024

    50 Cent's Liquor Biz Wins Ch. 7 Fight Over Ex-Boss's House

    A onetime international liquor trader for rap artist 50 Cent's booze business has lost a bid to protect his Connecticut residence from Sire Spirits LLC's attempt to recover a $7 million New York fraud judgment, with a bankruptcy judge applying a lower state homestead exemption than the indebted trader requested.

  • August 29, 2024

    Apple, Meta Appeal Guo Judge's 2nd Clawback Extension

    Apple and Meta are appealing a Connecticut bankruptcy judge's order giving the Chapter 11 trustee overseeing the estate of Miles Guo an additional six months to file suits to claw back payments made by the exiled Chinese billionaire before his bankruptcy.

  • August 29, 2024

    SunPower Eyes Sept. Auction As IP Objection Nixed For Now

    A Delaware bankruptcy judge on Thursday overruled an objection to bidding procedures for the assets of residential solar technology company SunPower Corp. from a former subsidiary, finding the dispute over use of the SunPower brand should be heard later.

  • August 29, 2024

    Bankruptcy Judge Allows Red Lobster To Reject 23 Leases

    Troubled seafood chain Red Lobster gained a Florida bankruptcy judge's approval for its proposal to reject leases of an additional 23 restaurant locations slated to close at the end of the month.

  • August 28, 2024

    Fla. Bank City National Says Applebee's Franchisees Owe $8M

    City National Bank of Florida sued a Louisiana-based Applebee's franchisee and three of its subsidiaries for $8.3 million, saying in a complaint filed Wednesday in Florida federal court that the companies defaulted on a federal COVID-19-era loan and then transferred control of their restaurants without consent.

  • August 28, 2024

    Jazz, Hikma Must Face Bulk Of Xyrem Antitrust Suit

    Jazz Pharmaceuticals and Hikma Pharmaceuticals appear bound for trial against most solo insurer and class action antitrust claims over alleged efforts to block generic competitors to Jazz's Xyrem narcolepsy drug, under a newly unsealed California federal court order largely rejecting competing motions for summary judgment.

  • August 28, 2024

    Calif. Debt Relief Firm Ran Criminal Enterprise, Judge Says

    A California bankruptcy judge ruled Tuesday that the defunct Orange County debt relief law firm Litigation Practice Group operated a "criminal enterprise" and possibly a Ponzi scheme, a finding that representatives for the firm's court-appointed bankruptcy trustee say they will use to claw money back from investors.

  • August 28, 2024

    Justices Won't Revive Student Debt Relief Plan Right Now

    The U.S. Supreme Court on Wednesday refused to reinstate President Joe Biden's latest student loan debt relief program, leaving the $475 billion plan on ice until the Eighth Circuit decides whether the administration has the authority to continue its new push to reduce student loan bills for millions of people.

  • August 28, 2024

    Farella Braun Can Pursue Unpaid SVB Fees From FDIC

    Farella Braun & Martel LLP can go after the Federal Deposit Insurance Corp. for $49,000 in legal fees owed by Silicon Valley Bank's parent after the agency was appointed as the bank's receiver, a California federal judge ruled Wednesday.

  • August 28, 2024

    Boy Scout Abuse Trust Art Sales To Start In November

    An auction house announced Wednesday that parts of the Boy Scouts of America's former art collection, including a number of Norman Rockwell pieces, will go on the auction block in November to pay for claims by sexual abuse survivors.

  • August 27, 2024

    Guo Trustee Says Trump Aide Must Face $353K Clawback Suit

    The Chapter 11 trustee for Miles Guo has urged a Connecticut bankruptcy judge to preserve an adversary action seeking to claw back more than $353,000 that he alleged the Chinese exile fraudulently gave to Jason Miller, a senior adviser to Donald Trump and founder of conservative social media platform Gettr, saying Miller's bid to ax the case was flimsy.

  • August 27, 2024

    Chancery Voids Bank Board Picks In Scheduling Suit

    A Delaware Chancery Court judge on Tuesday invalidated an annual meeting where a board election was held by directors of Golden Mountain Financial Holdings, restoring the preelection boards of the venture, which emerged from the bankruptcy of First NBC Bank Holding Co.

  • August 27, 2024

    Asbestos Claimants Tell 4th Circ. Bestwall Isn't Distressed

    The official committee of asbestos claimants in the Chapter 11 case of Georgia-Pacific unit Bestwall told the Fourth Circuit that the company's bankruptcy should be tossed because commitments to fund asbestos liabilities by the parent mean the debtor isn't facing financial distress.

  • August 27, 2024

    Madison Ave. Condo Owners File New Ch. 11

    The corporate owner of a luxury Manhattan condominium complex has filed for Chapter 11 in a New York bankruptcy court in what it says is an attempt to resolve the disputed bankruptcy filing of the partnership that owns the corporation.

  • August 27, 2024

    Tobacco Co-Op's $10M Insurance Suit Headed To Mediation

    Tobacco grower cooperative U.S. Tobacco Cooperative Inc. will go into mediation with Axis Specialty Insurance Co. as part of a lawsuit brought by the grower alleging the insurer has refused to pay $10 million in excess coverage.

Expert Analysis

  • To Make Your Legal Writing Clear, Emulate A Master Chef

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    To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.

  • Circuit Judge Writes An Opinion, AI Helps: What Now?

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    Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.

  • Perspectives

    Trauma-Informed Legal Approaches For Pro Bono Attorneys

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    As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.

  • 5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant

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    In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.

  • Series

    Playing Music Makes Me A Better Lawyer

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    My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.

  • How Attys Can Avoid Pitfalls When Withdrawing From A Case

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    The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.

  • Using A Children's Book Approach In Firm Marketing Content

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    From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.

  • 2nd Circ. Ruling Affirms NY Law's Creditor-Friendly Approach

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    The Second Circuit’s recent ruling in 245 Park Member v. HNA International provides creditors with some reason for optimism that debtors in New York may face rejection in court for aiming to keep creditors at arm’s length by transferring personal assets into an LLC, says Jeff Newton at Omni Bridgeway.

  • Series

    Being An EMT Makes Me A Better Lawyer

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    While some of my experiences as an emergency medical technician have been unusually painful and searing, the skills I’ve learned — such as triage, empathy and preparedness — are just as useful in my work as a restructuring lawyer, says Marshall Huebner at Davis Polk.

  • Exploring An Alternative Model Of Litigation Finance

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    A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.

  • 11th Circ. Ruling May Foreshadow Ch. 15 Clashes

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    The Eleventh Circuit's recent decision in In re: Talal Qais Abdulmunem Al Zawawi has introduced a split from the Second Circuit regarding whether debtors in foreign proceedings must have a domicile, calling attention to the understudied nature of Chapter 15 of the Bankruptcy Code, say attorneys at Cleary.

  • Series

    Teaching Yoga Makes Me A Better Lawyer

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    Being a yoga instructor has helped me develop my confidence and authenticity, as well as stress management and people skills — all of which have crossed over into my career as an attorney, says Laura Gongaware at Clyde & Co.

  • A Vision For Economic Clerkships In The Legal System

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    As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.

  • Bankruptcy Courts Have Contempt Power, Del. Case Reminds

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    A Delaware bankruptcy court recently held Camshaft Capital and its principal in contempt, serving as a reminder to bankruptcy practitioners and anyone else that appears before a bankruptcy judge that there are serious consequences for failing to comply with court orders, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.

  • What Lies Behind Diverging US And UK Insolvency Trends

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    Contrasting U.K. and U.S. insolvency trends highlight the importance of policy interventions in shaping consumer financial outcomes and economic recovery, and while the U.K.'s approach seems to have mitigated issues, the U.S. faces challenges exacerbated by economic conditions and policy transitions, says Thomas Curran at Thomas H. Curran Associates.

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