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Bankruptcy
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December 02, 2024
FDIC Must Face Some Of SVB Ex-Parent's Claims In $1.9B Suit
A California federal judge has pared down a lawsuit looking to force financial regulators that stepped in after the high-profile collapse of Silicon Valley Bank to return some $1.9 billion in frozen deposits to the bank's former operator as part of a multipronged effort to recover the funds.
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December 02, 2024
Yellow Fights Teamsters' Call For 10th Circ. To Nix Claims
The Tenth Circuit should not pay mind to arguments from the Teamsters about upholding a lower court's dismissal of Yellow Corp.'s $137 million suit against the union, the company is arguing, doubling down on its claims that it was not required to exhaust the grievance process under a contract.
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December 02, 2024
Lowenstein Sandler Seeks Judge DQ In Pot Dispensary Suit
Lowenstein Sandler LLP has asked an Essex County Superior Court judge to recuse himself over his social connections with the parties and counsel on the firm's $800,000 fee suit against a New Jersey cannabis dispensary
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December 02, 2024
Justices On Fence In Tax Clawback Case For Defunct Utah Co.
U.S. Supreme Court justices seemed divided during oral arguments Monday over whether the Tenth Circuit was correct to allow the bankruptcy trustee of a defunct Utah company to use state law to claw back $145,000 in federal taxes after the two-year deadline, a ruling that has created a 3-1 circuit split.
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December 02, 2024
Miss America CEO Files $500M Suit Alleging Bankruptcy Fraud
The producer of the Miss America pageant and its related entities have filed a $500 million racketeering suit in Florida accusing developer Glenn Straub of fraudulently pushing the organization into bankruptcy in an effort to take over its assets.
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December 02, 2024
Jackson Walker 'Extinguished' Privilege Over Judge Romance
An Oregon federal judge has said Holland & Knight LLP lawyers must turn over documents regarding their advice to Jackson Walker LLP on how to handle the "debacle" of a former firm partner's intimate relationship with a former bankruptcy judge, finding Jackson Walker has "utterly extinguished" any claim to attorney-client privilege.
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December 02, 2024
Bankrupt Dental Co. To Repay Customers $4.8M, NY AG Says
Dental telehealth company SmileDirectClub has agreed to pay $4.8 million in refunds to customers who were improperly charged after the company went bankrupt and shut down in 2023, according to a settlement announced Monday by New York Attorney General Letitia James.
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December 02, 2024
Pool Co. Says Rival CEO Fled To China To Duck Paying $16M
A bankrupt Chinese pool parts supplier has been accused by an American competitor of going to great lengths to skirt a $16 million false advertising and unfair business practices judgment in continued violation of court orders, including allegedly funneling assets and allowing its owner to flee to China.
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November 27, 2024
Special Master In Citgo Sale Suit Goes Back To Drawing Board
The special master overseeing the sale of Citgo's parent company in a proceeding aimed at satisfying billions of dollars in Venezuelan debt has agreed to abandon his proposed sales plan after it became clear how little support it had garnered from creditors, he told a Delaware judge on Tuesday.
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November 27, 2024
Developer Settles Landslide Claims From Ryan Homes, Town
The bankrupt developer of a housing project that was beset by landslides has settled with a construction company and a Western Pennsylvania township in exchange for finishing some of its remaining cleanup work and giving the township the remaining lots, burying a six-year dispute.
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November 27, 2024
Miss America Ch. 11 Dismissal Hearing To Wait For Event
A hearing on a motion to dismiss the Chapter 11 case of an entity tied to the Miss America pageant will wait until after the competition wraps up in January, a Florida bankruptcy judge ruled Wednesday, allowing for discovery among two parties disputing the proper ownership of the organization.
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November 27, 2024
Compass NJ Tapped To Sell $33M Miles Guo Mansion In Ch. 11
The trustee handling the Chapter 11 of exiled Chinese businessman and convicted fraudster Miles Guo asked the Connecticut bankruptcy court to let him hire four agents with residential real estate firm Compass to sell a historic 58-room mansion in Mahwah, New Jersey.
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November 27, 2024
Up Next At The High Court: Transgender Care, Holocaust Art
The U.S. Supreme Court will return to the bench Monday for its December arguments session, which will include blockbuster questions about the constitutionality of state laws banning gender-affirming care for transgender minors and whether Hungary can be held liable for property stolen during World War II.
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November 27, 2024
Tech Co. Afiniti Gets Ch. 15 Recognition Of Bermuda Reorg
A Delaware bankruptcy judge said she would recognize the Bermuda insolvency proceedings of software company Afiniti Ltd. as it seeks to restructure more than $500 million in debt.
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November 26, 2024
Mexican Lender Seeks US Recognition Of UK Reorg
The England and Wales-based subsidiary of a Mexican industrial equipment leasing and financing group has asked a New York bankruptcy court to grant Chapter 15 recognition of insolvency proceedings it launched in the U.K. to deal with about $351 million of debt.
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November 26, 2024
Customers Sue Fintech Partner Banks After Processor Failure
Five banks holding funds for customers of fintech platforms face proposed class action claims of gross mismanagement after "significant ledger irregularities" totaling $85 million were discovered in the wake of an intermediary software company's bankruptcy.
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November 26, 2024
Beasley Allen Escapes Sanctions For J&J Deposition No Show
A Texas bankruptcy judge on Tuesday laid ground rules for documents and communications to be shared in a messy discovery phase of the Chapter 11 of Red River Talc, Johnson & Johnson's latest liability spinoff, while also saying he wouldn't sanction a Beasley Allen attorney who didn't appear at a deposition last week.
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November 26, 2024
Bankrupt Canadian Bus Co. Seeks US Recognition For Sale
A Canadian charter bus company that provides buses for Los Angeles airports is asking a California bankruptcy judge to grant U.S. recognition to its efforts to sell the company in a Canadian insolvency proceeding.
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November 26, 2024
Paul Hastings Seeks GenapSys CEO Depo In Malpractice Suit
Paul Hastings LLP has called on a California court to compel the founder and former CEO of GenapSys to sit for a deposition in a legal malpractice suit alleging that the firm improperly drafted board documents that invited an expensive lawsuit and led to the genetic sequencing company's "demise and liquidation."
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November 26, 2024
X Corp. Says InfoWars Social Media Accounts Can't Be Sold
The parent company that owns X, the social media platform formerly known as Twitter, told a Texas bankruptcy judge that the Chapter 7 trustee in the case of right-wing conspiracy theorist Alex Jones can't sell X accounts tied to Jones and his InfoWars business because they are the property of the social media company.
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November 26, 2024
Pa. Nursing Home Eying Sale Seeks Fraud Sentencing Delay
The parent company for a troubled Western Pennsylvania nursing home asked a federal court to postpone a sentencing for defrauding state and federal healthcare programs so the company can keep trying to sell the facility, or at least relocate its residents over a longer period of time.
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November 26, 2024
Giuliani's New Atty Faults Previous Counsel As NY Trial Nears
A Manhattan federal judge declined Tuesday to delay a January trial over whether Rudy Giuliani must turn over his Florida condo and World Series rings to fund a $148 million defamation judgment, after the former New York City mayor's new lawyer criticized outgoing counsel.
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November 25, 2024
Judge Eyes Dec. Hearing To Sort Out Onion's Bid For Infowars
A Texas judge asked the Chapter 7 trustee in right-wing fabulist Alex Jones' bankruptcy to preserve the status quo until a sale hearing sometime in December that will determine whether the parent company of satirical news publisher The Onion was correctly chosen as the winning bidder in the auction for Jones' Infowars program.
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November 25, 2024
Tuna Price-Fixing MDL Lead Attys Awarded $86M In Fees
A California federal judge has agreed to award a combined total of $86 million in fees and costs to lead counsel representing two classes of canned tuna buyers who reached settlements in recent months with StarKist, Dongwon Industries and Lion Capital in a decadelong price-fixing case.
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November 25, 2024
Lampert, Sears Stockholders Set Appraisal Share Faceoff
Delaware's Court of Chancery has teed up an argument on how to handle class member claims of former Sears Hometown and Outlet Stores Inc. stockholders whose share appraisal demand was torpedoed by the company's bankruptcy in 2022.
Expert Analysis
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Ch. 11 Ruling Clarifies Cross-Border 'Alternative A' Scope
A New York bankruptcy court’s recent ruling in airline holding company SAS’s Chapter 11 case — addressing the applicability of Alternative A, which is similar to Section 1110 of the U.S. Bankruptcy Code — is a cautionary tale for contracting European Union member states that have adopted Alternative A domestically but have not made a formal declaration, say attorneys at Pillsbury.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Ambiguity Ruling Highlights Deference To Arbitral Process
A New York federal court’s recent ruling in Eletson v. Levona, which remanded an arbitral award for clarification, reflects that the ambiguity exception’s analysis is not static and may be applied even in cases where the award, when issued, was unambiguous, says arbitrator Myrna Barakat Friedman.
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Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers
The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.
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SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early
After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Opinion
High Court Made Profound Mistake In Tossing Purdue Deal
The U.S. Supreme Court's recent decision to throw out Purdue Pharma's Chapter 11 plan jeopardizes a multistate agreement that would provide approximately $7 billion in much-needed relief to help fight the opioid epidemic, with states now likely doomed to spend years chasing individual defendants across the globe, says Swain Wood at Morningstar.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Synapse Bankruptcy Has Ripple Effects For Fintech Industry
Synapse Financial Technologies’ recent bankruptcy filing marks a significant moment in the fintech industry's evolution, highlighting that stringent compliance and risk management in fintech partnerships are essential to mitigate risk and protect consumers, say Joann Needleman and Ryan Blumberg at Clark Hill.