Bankruptcy

  • July 30, 2021

    Avenatti Lied About $3M NBA Player Deal, Ex-Client Testifies

    One of Michael Avenatti's former clients told the California federal jury in his embezzlement trial Friday that the suspended attorney lied about the terms of her $3 million settlement with NBA player Hassan Whiteside, leading her to believe it was Whiteside's fault she wasn't receiving the money.

  • July 30, 2021

    CFPB Scraps Proposal To Delay Debt Collection Rules

    The Consumer Financial Protection Bureau said Friday that it has decided to move forward with implementation of its Trump-era debt collection rules later this year as originally planned, scrapping a proposed delay while not ruling out more substantive changes in the future.

  • July 30, 2021

    2nd Circ. Discovery Order Defies DOJ Stance, Court Hears

    The target of a petition seeking evidence aimed at shoring up arbitration against Lithuania over the nationalization of a prominent bank is urging the Second Circuit to revisit the petition, pointing to the Justice Department's stance that such an application flouts U.S. law.

  • July 30, 2021

    Ch. 11 Trustee Tells 2nd Circ. Church Sale Was Valid

    The trustee of a bankrupt Bronx-based church defended both her appointment and the sale of the church property before the Second Circuit on Friday, saying nothing she did violated the church's religious freedom.

  • July 30, 2021

    Judge Tells Wholesaler GBG To Revamp Ch. 11 Loan Docs

    A $16 million debtor-in-possession loan for bankrupt clothing wholesaler GBG USA Inc. required some changes Friday before a New York bankruptcy judge would grant interim approval for the package, saying he was growing frustrated with the ballooning size of such loan documents.

  • July 30, 2021

    Ashby & Geddes' Appeal In Del. Bankruptcy Fee Row Tossed

    A Delaware federal judge denied Ashby & Geddes PA's bid to force a lender to fund a roughly $980,000 carve-out reserve to pay professional fees in the now-closed bankruptcy case of life sciences company NeuroproteXeon Inc.

  • July 30, 2021

    Judge Sends LATAM Plane Deal Dispute To Mediation

    A New York bankruptcy judge on Friday delayed ruling on a request by LATAM Airlines creditors for permission to sue two major shareholders over a pair of canceled aircraft deals, saying the parties should take the dispute to mediation first.

  • July 29, 2021

    Imerys Ch. 11 Tort Group Delays J&J Talc Claim Spinoff Fight

    Attorneys for alleged talc injury victims on Thursday agreed to postpone an immediate fight over a temporary restraining order barring Johnson & Johnson from spinning off talc liabilities into a bankruptcy-eligible new company, after a Delaware judge questioned the urgency.

  • July 29, 2021

    Avenatti Was 'Anxious' To Get NBA Player's $3M, Atty Testifies

    A Katten Muchin Rosenman LLP partner who represented NBA player Hassan Whiteside told the California federal jury in Michael Avenatti's embezzlement trial Thursday that Avenatti appeared "anxious" to receive the $3 million settlement he negotiated for Whiteside's ex-girlfriend, saying Avenatti sent multiple inquiries before the money was even due.

  • July 29, 2021

    Purdue Pharma Gets OK For $22M Worker Bonus Program

    A New York bankruptcy judge Thursday gave Purdue Pharma the go-ahead to pay up to $22.1 million in retention bonuses to midlevel workers, rejecting calls to delay the decision until after next month's Chapter 11 plan confirmation hearing.

  • July 29, 2021

    'Mixed Bag' Chancery Ruling Keeps Utah Mine Suit Alive

    In what he called a "mixed bag" ruling, a Delaware vice chancellor moved toward trial counterclaims in a sprawling Chancery Court battle over an alleged international loan-to-own scheme dating to 2013 and focused on a $600 million Utah copper mine.

  • July 29, 2021

    Battery Venture Ends With $9M Judgment Against Owner

    A Norwegian entrepreneur's ambitious battery venture, which at one point supposedly raised $1 billion, ended quietly in Florida federal court Thursday after he failed to mount a defense to a $9 million arbitration enforcement action.

  • July 29, 2021

    Puerto Rico Restructuring Plan Heads For Creditor Vote

    A New York federal judge on Thursday sent Puerto Rico's $35 billion restructuring plan out for an October creditor vote after being told the island's fiscal oversight board may call on an eight-decade-old law to get the new bond issues needed to make the plan work.

  • July 29, 2021

    Boy Scouts' Ch. 11 Settlement Clouded By Claimant Atty Issue

    The Boy Scouts of America told a Delaware bankruptcy judge Thursday that 70,000 sex abuse survivors have signed on to an $850 million deal to restructure the organization, but disputes among three law firms representing a quarter of those claimants could imperil the proposal.

  • July 29, 2021

    Victoria's Secret Gets Green Light For UK Liquidation

    Victoria's Secret's U.K. business move from administration into liquidation in June was valid, a London judge ruled on Thursday, after concerns were raised over a typographical error on the paperwork.

  • July 29, 2021

    Wholesaler GBG USA Hits Ch. 11 With More Than $1B In Debt

    Retail wholesaler GBG USA filed for Chapter 11 protection in a New York bankruptcy court Thursday, listing more than $1 billion in debt and pointing to the impact of the coronavirus pandemic on retail as well as international supply chain disruptions.

  • July 28, 2021

    7th Circ. Revives Stock Suit Against Ex-Appvion Execs

    A Seventh Circuit panel revived litigation accusing the ex-leaders of the bankrupt paper company Appvion of overvaluing the business's stock to line their own pockets, saying Wednesday that the Employee Retirement Income Security Act doesn't preempt state-law misconduct claims against the former directors and officers.

  • July 28, 2021

    Avenatti Made Ex-Paralegal 'Scapegoat' In Scheme, Jury Told

    A former Eagan Avenatti LLP paralegal told a California federal jury during the second day of testimony in Michael Avenatti's embezzlement trial Wednesday that the suspended attorney instructed her to lie to a client about the location of settlement funds, making her a "scapegoat."

  • July 28, 2021

    Corporations Are Cherry-Picking Ch. 11 Judges, House Told

    When it comes to Chapter 11 proceedings, big corporations have skipped past forum shopping and are now "hand-picking" judges who will be amenable to their requests, the House antitrust subcommittee heard Wednesday.

  • July 28, 2021

    Dems Unveil Bill Targeting Bankruptcy Releases Like Sacklers'

    A powerful group of Democrats introduced new legislation Wednesday in both the Senate and the House targeting non-debtor releases in bankruptcy cases, pointing specifically to releases like the one in Purdue Pharma's Chapter 11 plan allowing the Sackler family to dodge liability for its role in the opioid crisis.

  • July 28, 2021

    Blank Rome Slammed Over Platinum Arbitration Confusion

    A Pennsylvania state judge lashed out at Blank Rome LLP during a hearing on Wednesday for the confusion created after it incorporated an arbitration clause into an unsigned addendum to its engagement letter with defunct billion-dollar hedge fund Platinum Partners.

  • July 28, 2021

    House Subcommittee Asks J&J About Talc Bankruptcy Plans

    A U.S. House of Representatives subcommittee is asking Johnson & Johnson to turn over information about plans to put its talc liabilities under bankruptcy protection, according to a letter sent Wednesday.

  • July 28, 2021

    Imerys Seeks Talc Indemnification From Johnson & Johnson

    Talc miner Imerys Talc America is asking a Delaware bankruptcy court to rule that former customer Johnson & Johnson owes it indemnification for tens of thousands of talc injury claims and to deny J&J's claim that the obligation runs the other way.

  • July 28, 2021

    California Wants High Court To Toss Venoco Takings Suit

    A California state agency is asking the U.S. Supreme Court to overturn what it is calling a "dangerous and unreasonable" Third Circuit decision that sovereign immunity can't stop a Chapter 11 trustee from filing suit over assets taken from bankrupt oil driller Venoco LLC.

  • July 27, 2021

    Avenatti Decided Where Client Funds Went, Ex-Employee Says

    A former paralegal for Eagan Avenatti LLP told the California federal jury in Michael Avenatti's embezzlement trial Tuesday that she handled client billing and money transfers for the firm, but that the suspended attorney decided what happened with the money, including putting it toward paying his ex-wife and his coffee business.

Expert Analysis

  • Opinion

    Congressional Bill Would Impair Ch. 11 Mass Tort Resolution

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    Legislation recently introduced in Congress seeks to limit third-party releases and injunctions in Chapter 11 mass tort bankruptcies, but doing so would upend the balanced system, at the expense of deserving, injured individuals, says Josiah Daniel at V&E.

  • Law Firms, Know Who's Responsible For Your Cloud Security

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    Lawyers generally know that files go into the cloud and that the files are then secured and protected, but it's necessary for firms to take a closer look at their cloud supply chain and then come up with a responsibility matrix that helps mitigate any potential risks or weaknesses, says Martin Ward at iManage.

  • How Purchasers, Debtors Can Navigate CBAs In Bankruptcy

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    As commercial bankruptcy filings rise, debtor and purchasing employers have several available tools to modify or eliminate preexisting collective bargaining agreements, with nuanced considerations established by the Bankruptcy Code and case law, says Stephania Sanon at McDermott.

  • Benefits For Law Firms Venturing Into New Services

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    By offering more services, law firms can deepen and strengthen their client relationships and truly become an extension of their clients' teams while generating new revenue streams, and while there are risks associated with expanding into consulting, they may be worth it, says Lou Ramos at Major Lindsey.

  • Bankruptcy Ruling Highlights Growing Use Of Chapter 15

    Excerpt from Practical Guidance
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    Norske Skogindustrier, a recent statute of limitations tolling decision from a New York bankruptcy court, illustrates the increasing extent to which the now 15-year-old Chapter 15 has become an invaluable resource for the representatives of foreign debtors in cross-border bankruptcy cases, say attorneys at Jones Day.

  • Series

    Embracing ESG: Exelon GC Talks Diversity Initiatives

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    Executing a commitment to diversity, equity and inclusion programming, through recruitment, inclusive legal pipelines and community empowerment via pro bono efforts, can ensure a strong environmental, social and governance proposition, says Gayle Littleton at Exelon.

  • Revamping Law Firm Marketing Lists — With Partner Buy-In

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    Jackson Lewis’ Paige Bowser shares lessons from the firm's recent overhaul of an outdated email marketing database, including tips for getting partners on board, ensuring compliance with privacy laws and augmenting outreach strategies.

  • The Murky World Of Legal Rankings Gets Some Clarity In NJ

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    New Jersey's new, stringent approach to legal rankings will make accolade advertising more transparent, benefiting both attorneys and clients and offering legal marketers a new set of best practices amid evolving standards, say Penny Paul at Lowenstein Sandler and Susan Peters at Greybridge.

  • Series

    Embracing ESG: Cigna Counsel Talks Employee Wellness

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    Building employee well-being into corporate environmental, social and governance priorities required our legal team to focus more closely on cross-functional collaboration within the company and increased communication with our board of directors and shareholders, says Julia Brncic at Cigna.

  • Hybrid Work Models Are Key To Gender Parity In Law Firms

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    To curb the historically high rates of attrition among female lawyers, Roberta Liebenberg at Fine Kaplan and Stephanie Scharf at Scharf Banks suggest firms must normalize hybrid work schedules, and they recommend best practices to promote engagement among all attorneys, regardless of where they work.

  • 3 Keys To Winning Your Next Oral Argument

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    To leverage the unique opportunity oral arguments provide to talk directly to judges and contribute to their decision making, attorneys must mind the three hallmarks of persuasiveness: projecting credibility, exuding likability and gaining the listener's trust, says Daniel Karon at Karon LLC.

  • Opinion

    Justices Should Have Resolved Student Loan Discharge Issue

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    The Supreme Court's denial of certiorari in McCoy v. U.S. is a disappointment to advocates of student loan discharges in bankruptcy and ensures that applicants' chances of discharging their student debt depend largely on where they reside, say Joseph Pack and Jessey Krehl at Pack Law.

  • Keys To Efficient And Accurate Doc Review For E-Discovery

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    Attorneys involved in e-discovery can review information accurately and cost-effectively by understanding the data in a document collection and identifying its key pitfalls, drafting comprehensive review guidelines, and preparing ahead, says John Wertelet at Eckert Seamans.

  • Avoiding Independent Director Challenges In Ch. 11 Litigation

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    Companies in bankruptcy could fend off litigation over board members' alleged conflicts of interest, as in Purdue Pharma's ongoing Chapter 11 case, with disclosures to help courts and creditors assess directors' independence without resorting to more drastic and costly bankruptcy tools, say attorneys at Lowenstein Sandler and the Brownstein Corp.

  • Series

    Embracing ESG: Raytheon GC Talks Climate Change

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    Now that the climate crisis is seen as an existential threat, the stakes couldn't be higher — or the challenges more daunting — for the general counsel, who must enlist all parts of the company for support while providing both a legal and ethical road map on how to respond, says Frank Jimenez at Raytheon.

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