Bankruptcy

  • 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.

  • October 07, 2024

    Fed. Circ. Questions If Safer OxyContin Profits Came From IP

    An attorney for Purdue Pharma didn't seem to find much purchase at the Federal Circuit on Monday as he argued that the company's patents for abuse-deterrent OxyContin weren't obvious, claiming other companies had ample opportunity to reach a solution and failed to do so.

  • October 07, 2024

    Music Label Says 2 Live Crew Songs Were Works For Hire

    The owner of music label Lil' Joe Records took the stand Monday as he began to make the case that the members of hip-hop group 2 Live Crew were employees, not independent contractors, when they produced their hits and therefore cannot claw back their rights to the recordings.

  • October 07, 2024

    FTX Gets OK For Ch. 11 Plan After Objections Overruled

    A Delaware bankruptcy judge said he would confirm the Chapter 11 reorganization plan of FTX Trading Ltd. after overruling several objections Monday, beginning a process of distributing billions of dollars to customers less than two years after the cryptocurrency exchange collapsed.

  • October 07, 2024

    Aircraft Co. Says Insurers Owe $222M For Lost Jets In Russia

    An aircraft lessor said its insurers and underwriters are on the hook for more than $222 million in losses stemming from two aircraft that have been stranded in Russia since its invasion of Ukraine, telling a Connecticut state court the total loss of the aircraft warrants coverage.

  • October 07, 2024

    Vendor Says Rue21 Skipped $2M In Bills For Clothing

    A Los Angeles-based clothing supplier has sued Rue21, saying the fashion retailer stiffed it on $300,000 worth of invoices and is on the hook for $1.7 million to another vendor.

  • October 07, 2024

    US Trustee Pans Guo Ch. 11 Trustee's Secret Deal For Firm

    The U.S. Trustee's Office on Monday objected to a Chapter 11 trustee's attempt to file under seal a deal with a law firm in the sprawling $374 million bankruptcy of convicted Chinese exile Miles Guo, saying voluminous case law prevents shrouding such settlements with secrecy.

  • October 07, 2024

    Feds Seek Tape, Allege Witness Tampering In WeWork Case

    Prosecutors asked Sunday to subpoena a recording of an incident in which they say a former investment firm CEO who is accused of making a fraudulent offer for WeWork shares had improper contact with a witness expected to testify at the ex-CEO's upcoming trial.

  • October 07, 2024

    Justices Pass On Borrower's Debt Canceling Case

    The U.S. Supreme Court on Monday declined to take up a student loan borrower's appeal seeking to revive claims that a Pennsylvania loan servicer thwarted forgiveness of his federal student loans by refusing to recognize his employment as a public servant.

  • October 04, 2024

    Top 5 Supreme Court Cases To Watch This Fall

    The U.S. Supreme Court will hear several cases in its October 2024 term that could further refine the new administrative law landscape, establish constitutional rights to gender-affirming care for transgender minors and affect how the federal government regulates water, air and weapons. Here, Law360 looks at five of the most important cases on the Supreme Court's docket so far.

  • October 04, 2024

    SEC Says It's Investigating Bankrupt EV Maker Fisker

    The U.S. Securities and Exchange Commission said Friday that it's been looking into whether electric-car maker Fisker Inc. violated securities law before it filed for Chapter 11 protection, urging a Delaware federal bankruptcy judge not to approve Fisker's proposed liquidation plan.

  • October 04, 2024

    MLB's Storied History Runs Through The Bankruptcy Court

    With the value of professional sports teams skyrocketing over the last decade, it's hard to imagine a Major League Baseball club having to file for bankruptcy. But it's happened at least five times since 1970 for a variety of reasons, and the teams that have taken advantage of the bankruptcy courts have charted much different paths post-insolvency.

  • October 04, 2024

    EB-5 Partner Accuses NC Atty Of Aiding Investor Coup

    A company created to protect an investment project supporting green card applications for Chinese nationals accused a North Carolina attorney in state court of helping shareholders try to place the company into receivership and take control of a $30 million fund.

  • October 04, 2024

    Robertshaw Closes Ch. 11 Sale Hours Before 5th Circ. Stay

    Appliance parts maker Robertshaw sold the business to a group of its lenders this week, less than two hours before the Fifth Circuit entered an order staying the deal, marking a setback for Invesco, another lender that had objected to a Texas bankruptcy court's approval of the Chapter 11 asset sale.

Expert Analysis

  • 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.

  • E-Discovery Quarterly: Recent Rulings On Text Message Data

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    Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.

  • How Banks Can Preserve Value Amid Corporate Default Surge

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    Amid a busy time for corporate bankruptcies, banks need a nuanced understanding of contractual rights, regulatory frameworks and evolving legal developments to protect and preserve their rights and interests, say attorneys at Phelps Dunbar.

  • Series

    Swimming Makes Me A Better Lawyer

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    Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.

  • Key Priorities In FDIC Report On Resolving Big Bank Failures

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    The Federal Deposit Insurance Corp.'s report last month on the resolvability of large financial institutions contains little new information, but it does reiterate key policy priorities, including the agency's desire to enhance loss-absorbing capacity through long-term debt requirements and preference for single-point-of-entry resolution strategies, say attorneys at Freshfields.

  • A Look At Subchapter V As Debt Limit Expiration Looms

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    If proposed legislation to extend Subchapter V’s debt eligibility ceiling sunset date in June is passed, bankruptcy professionals can seek ways to work with their local jurisdictions to advocate for code changes and guidance that bring more efficiencies and clarity to the process, say Matthew Brash at Newpoint Advisors and Melinda Bennett at Stretto.

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