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Bankruptcy
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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.
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November 25, 2024
Spirit's Cayman Units To Hit Ch. 11 As Airline Eyes Swift Reorg
Four Spirit Airlines subsidiaries in the Cayman Islands were expected to file for bankruptcy protection Monday and ask a New York federal court to join the company's main Chapter 11 case, a move that Spirit says will help keep the debtor on course to confirm a reorganization plan.
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November 25, 2024
Pitney Bowes E-Commerce Arm Confirms Ch. 11 Wind-Down
A Texas bankruptcy judge on Monday gave DRF Logistics, the former online delivery arm of shipping and logistics group Pitney Bowes, the all clear to move forward on plans to wind down in Chapter 11 with a recently inked global settlement with the committee of unsecured creditors.
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November 25, 2024
Sanctions Sought Against Reed Smith In Eletson Ch. 11
Creditors of bankrupt gas tanker operator Eletson Holdings Monday called for "harsh sanctions" against company directors and officers and their attorneys at Reed Smith, saying they are peddling bogus legal theories to stall the company's reorganization.
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November 22, 2024
Retirement Contributions Found Not Disposable In Ch. 13
A split Ninth Circuit on Friday held that voluntary contributions to employer-managed retirement plans are not disposable income under Chapter 13 bankruptcy, reversing a lower court's decision that required a debtor to include $484 in monthly retirement contributions in her disposable income.
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November 22, 2024
Pot Dispensary Aims To Escape Lowenstein Sandler's Fee Suit
A New Jersey cannabis dispensary has moved to dismiss a suit from Lowenstein Sandler LLP seeking nearly $800,000 in unpaid fees, telling a state court that the firm did not give the proper notice before suing over the fee dispute.
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November 22, 2024
Latham Adds 4 Restructuring Attys From Weil And Paul Weiss
Latham & Watkins LLP announced Thursday that it has tapped four restructuring practice leaders from two rival BigLaw shops to join its New York office.
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November 22, 2024
Fed Bans Ex-CEO Of Bank Felled By Crypto Scam
The former CEO of Kansas' now-shuttered Heartland Tri-State Bank has been banned by the federal government from being a part of the banking industry after stealing $47.1 million from the bank to give to cryptocurrency scammers, leading his bank to fail.
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November 22, 2024
Snack Maker Hearthside Files For Ch. 11 To Shed $1.9B Debt
H-Food Holdings LLC, which makes granola bars, pretzels and other snacks under the name Hearthside Food Solutions for major brands, filed for bankruptcy protection in Texas on Friday, with a restructuring agreement that would allow it to wipe out more than $1.9 billion of debt.
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November 22, 2024
Avante Health Parent Cleared To Sell For $72.5M In Ch. 11
A Delaware bankruptcy judge on Friday approved the $72.5 million sale of Jordan Health, the corporate parent of medical equipment company Avante Health, to an affiliate of Staple Street Capital after the debtor reached a settlement with unsecured creditors.
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November 22, 2024
1st Circ. Backs Auction For Bankrupt Farmer's Milk Quota
The First Circuit has affirmed a Puerto Rico regulator's ability to order the sale of a dairy farmer's milk quota despite his pending bankruptcy, ruling the action wasn't blocked by a stay blocking actions that can affect a bankruptcy estate.
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November 21, 2024
Franchise Group Lenders Want End To Debtor's Ch. 11 Rights
Lenders of bankrupt retail-focused holding company Franchise Group Inc., including Pacific Investment Management Co. and private equity firm Irradiant Partners, have urged a Delaware bankruptcy judge to end holdco debtor Chapter 11 exclusivity restrictions, arguing that the move offers the best escape from a near-inescapable "Gordian knot" entangling all their claims.
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November 21, 2024
Big Lots Seeks To Include Claims Against Execs In Asset Sale
Discount retailer Big Lots on Thursday asked a Delaware bankruptcy judge to approve a $760 million asset sale to a private equity group and override creditor objections to the inclusion of potential litigation claims against company insiders in the package.
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November 21, 2024
Prime Core's Ch. 11 Trust Sues To Reclaim $10M Payout
The liquidating trust for Prime Core Technologies Inc., a troubled cryptocurrency technology business, sued in Delaware bankruptcy court Thursday to claw back what it described as a fraudulent transfer of more than $10 million that was paid to a creditor while the company was insolvent.
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November 21, 2024
Swedish EV Battery Co. Files For Ch. 11 With $5B Of Debt
Swedish electric vehicle battery maker Northvolt AB filed a Chapter 11 case in Texas bankruptcy court Thursday, saying it wants to find a partner to enable the company's innovation to continue in the burgeoning space while it addresses a significant liquidity shortfall.
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November 21, 2024
Yellow Corp. Approved For Ch. 11 Plan Disclosures
Bankrupt trucking firm Yellow Corp. said it had resolved all objections to its Chapter 11 plan disclosure statement Thursday, and a Delaware judge agreed to approve the document once it was updated to reflect the changes.
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November 20, 2024
CFPB Subpoenas Trustee In Debt Relief Firm Bankruptcy Case
The U.S. Consumer Financial Protection Bureau has served a subpoena on the Chapter 11 trustee in charge of collapsed California debt relief law firm Litigation Practice Group's bankruptcy estate, the trustee's law firm said in a recent court filing.
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November 20, 2024
Girardi Pushes For New Trial Over Competency Claims
Counsel for Tom Girardi told a federal judge the disbarred attorney is plainly mentally incompetent and deserves a new trial over charges he defrauded clients of $15 million worth of settlement money.
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November 20, 2024
Beasley Allen And J&J Tussle Over Atty Sanctions Bid
Beasley Allen Law Firm accused a Johnson & Johnson talc unit of using "deposition notices as weapons" in its quest to sanction a firm lawyer, while the company said the firm "refused to meaningfully subject itself or its members to any discovery" in its bankruptcy case.
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November 20, 2024
TGI Fridays Gets OK On Bid Process As It Seeks Out Buyers
A Texas bankruptcy judge on Wednesday approved TGI Fridays' procedures for contacting and selecting prospective buyers for its assets after the struggling restaurant chain said it was in discussions with at least 21 potential bidders.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
Expert Analysis
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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What Being An 'Insider' Means In Ch. 11, And Why It Matters
As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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How 9th Circ. Ruling Expands Bankruptcy Trustees' Powers
The Ninth Circuit recently held in The Lovering Tubbs Trust v. Hoffman that a trustee can avoid intentionally fraudulent transfers, even if no creditor suffered harm as a result, materially strengthening bankruptcy trustees' powers, say Robert Klyman and Rod Kazempour at DLA Piper.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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3rd Circ. Hertz Ruling Highlights Flawed Bankruptcy Theory
The Third Circuit, in its recent Hertz bankruptcy decision, became the latest appeals court to hold that noteholders were entitled to interest before shareholders under the absolute priority rule, but risked going astray by invoking the flawed theory of code impairment, say Matthew McGill and David Casazza at Gibson Dunn.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.