Large Cap
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May 07, 2025
Rite Aid Cleared For Quick Ch. 11 Sale Plans
A New Jersey bankruptcy judge on Wednesday approved retail pharmacy chain Rite Aid's plans to host a Chapter 11 auction next week for prescription files, drug inventory and other pharmacy assets during its second bankruptcy.
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May 07, 2025
Texas Two-Step Takes Second Step Into Appeals Courts
The "Texas two-step" will get its second circuit court test Thursday, as a Fourth Circuit panel takes up the question of whether Georgia-Pacific LLC's funding of the asbestos liabilities of its spinoff Bestwall LLC takes the company out of the jurisdiction of the bankruptcy court.
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May 07, 2025
Tupperware's Post-Sale Ch. 11 Plan Approved
The Chapter 11 plan of liquidation of food storage container company Tupperware Brands Corp. received court approval Wednesday in Delaware without any opposition, marking a complete turnaround from the turmoil at the outset of the case.
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May 07, 2025
Chubb Can't Get Archdiocese's Abuse Coverage Suit Trimmed
A New York state court refused Wednesday to toss the Archdiocese of New York's claims for bad faith and violations of the state's deceptive trade practices law in a suit seeking coverage from Chubb units for thousands of sexual abuse lawsuits.
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May 07, 2025
US Trustee Wants Answers On Berkeley Research Data Breach
The U.S. Trustee's Office is demanding answers from the Berkeley Research Group concerning a March data breach potentially involving information on sexual abuse claimants in 10 Roman Catholic Church organization bankruptcies nationwide.
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May 07, 2025
7 Questions For New ABI President Bruce Harwood
Former U.S. Bankruptcy Judge Bruce A. Harwood became the president of the American Bankruptcy Institute last month after retiring in August to be closer to his family in California following more than a decade on the bench in New Hampshire.
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May 06, 2025
Post-Ch. 11 Rite Aid Trustee Asks To Take Over Insurance Suit
A trust tied to Rite-Aid's previous bankruptcy exit plan has asked a New Jersey bankruptcy judge for permission to take over for Rite Aid in an adversary case seeking insurance money related to opioid claims.
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May 06, 2025
WeightWatchers Files Ch. 11 To Eliminate $1.15B Of Debt
WeightWatchers filed for Chapter 11 bankruptcy protection in Delaware bankruptcy court Tuesday, saying the restructuring will eliminate $1.15 billion in debt and allow the company to focus on its telehealth services.
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May 06, 2025
Toy Industry Braces For Bankruptcies Under Tariffs
After Joann Cartiglia started designing dolls from the basement of her home two decades ago, business took off and she began selling to major retailers, adding new products to her lineup and expecting to eventually sell the company as her retirement plan.
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May 06, 2025
Celsius Ch. 11 Suit Over $50M Cloudflare Hack Survives In NY
A New York bankruptcy judge on Tuesday denied a motion to dismiss negligence claims against cybersecurity company Cloudflare Inc., allowing a suit by former cryptocurrency platform Celsius Networks over a $50 million hack to survive.
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May 06, 2025
Reed Smith Must Turn Over Docs In $102M Fraud Fight
A New York federal judge on Tuesday determined that since enough evidence existed to show international shipping group Eletson Holdings may have committed fraud in an arbitration over a deal with another entity, Levona Holdings Ltd., the Reed Smith LLP attorneys who represented Eletson at the arbitration must hand over related documents.
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May 06, 2025
Irish Developer To Settle With Ex Amid $942M Conn. Ch. 7
The Chapter 7 trustee overseeing the $942 million estate of Irish real estate developer Sean Dunne will settle claims of more than €3.6 million ($4 million) from a woman who alleges to be Dunne's first wife, the parties told a Connecticut bankruptcy judge Tuesday.
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May 06, 2025
State Officials Say CFPB Is Holding Up $4.2M Redress Checks
Officials from a dozen states have accused the Consumer Financial Protection Bureau of ghosting them on a $4.2 million redress plan for former students of a shuttered sales-training firm, saying the agency has not cut any checks and is not answering them.
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May 06, 2025
Catching Up With New Bankruptcy Case Action
Drugstore chain Rite Aid Corp. reentered bankruptcy with over $1 billion in debt less than a year after its earlier reorganization plan was approved, e-commerce firm Digital River Marketing Solutions Inc. filed for Chapter 7 with approximately $45.2 million in secured debt, and the owner of a Manhattan condo building filed for Chapter 11 with $32 million in mortgage debt in the face of foreclosure. Here are this week's new bankruptcy cases.
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May 06, 2025
Boies Schiller Can't Push Guo Clawback Bid To District Court
Boies Schiller Flexner LLP cannot move to federal district court a $654,000 adversary proceeding in Chinese exile Miles Guo's Connecticut bankruptcy, according to a district court judge's ruling that said it would be more efficient to keep the dispute in bankruptcy court, at least for now.
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May 06, 2025
Alex Jones' Atty Seeks Discipline Pause In Sandy Hook Leak
Alex Jones' former lead Connecticut attorney has asked a state appeals court to pause the remaining seven days of a suspension he was handed for a role in transferring Sandy Hook families' confidential records to another Jones attorney in Texas, arguing the case should be stayed while he again appeals the punishment.
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May 06, 2025
Franchise Group's $194M Ch. 11 Vitamin Shoppe Sale OK'd
Retail brand operator Franchise Group received a Delaware bankruptcy judge's blessing Tuesday to sell supplement chain Vitamin Shoppe for $193.5 million ahead of its Chapter 11 confirmation hearing.
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May 06, 2025
Food Co. Harvest Sherwood Hits Ch. 11 Amid Sprouts Lawsuit
Meat distributor Harvest Sherwood Food Distributors Inc. has filed for Chapter 11 protection in Texas bankruptcy court with up to $559 million in debt, saying it intends to wind down its remaining business and pursue claims against Sprouts Farmers Market over allegedly withheld payments.
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May 05, 2025
Judge Rejects Imerys Italy's Pick For Future Claims Rep
A Delaware bankruptcy judge denied a motion from the Italian subsidiary of talc producer Imerys Talc America seeking to appoint the same attorney as the future claims representative as the lead debtor Monday, saying that group of potential claimants needs a separate representative.
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May 05, 2025
Small Biz, Consumer Bankruptcies On The Rise In 2025
More small businesses and consumers sought bankruptcy protections at the start of 2025 compared to the same period last year, according to recently released data, as economic uncertainty, macroeconomic pressures and an end to pandemic-era relief programs converge.
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May 05, 2025
23andMe Gets Privacy Watchdog, Yellow Investors Push Ch. 7
A Missouri bankruptcy judge signed off on a consumer privacy watchdog for 23andMe's Chapter 11. A group of shareholders and unsecured creditors that previously supported Yellow Corp. attempting a Chapter 11 plan have shifted gears and asked a Delaware bankruptcy judge to convert the case to a Chapter 7 liquidation. Chicken restaurant Sticky's won a Delaware bankruptcy judge's tentative permission to sell its assets to an investment fund for $2 million.
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May 05, 2025
Crypto Miner Objects To Celsius Sanctions Try In Ch. 11 Case
Crypto mining company Mawson Infrastructure Group Inc. asked a Delaware bankruptcy judge to throw out an attempt by Celsius Network to impose sanctions on Mawson in the company's involuntary Chapter 11 case, saying its failed bid to extend an automatic stay to its subsidiaries was performed in good faith.
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May 05, 2025
Rite Aid Hits Bankruptcy Less Than A Year After Previous Ch. 11
Drugstore chain Rite Aid Corp. reentered bankruptcy Monday less than a year after its earlier reorganization plan was approved, filing for Chapter 11 protection in New Jersey bankruptcy court with more than $1 billion in debt and plans for an asset sale.
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May 05, 2025
Byju's Alpha Sues 'Next Link' In Quest To Recover $533M
The U.S. arm of Indian tech giant Byju's sued a British company in Delaware bankruptcy court on Monday, alleging the defendant is the recipient of $533 million in company funds as part of a years-long plot to cover up the ultimate destination of the money.
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May 05, 2025
Purdue Tells Justices 'Rigid' Fed. Circ. Rule Threatens Patents
Bankrupt OxyContin-maker Purdue Pharma LP wants the U.S. Supreme Court to revive its legal effort to use patent laws to block the release of a competing "crush-resistant" generic painkiller, challenging a Federal Circuit decision that Purdue calls too "rigid."
Expert Analysis
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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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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.
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Discount Window Reform Needed To Curb Modern Bank Runs
We learned during the spring 2023 failures that bank runs can happen extraordinarily fast in light of modern technology, especially when banks have a greater concentration of large deposits, demonstrating that the antiquated but effective discount window needs to be overhauled before the next crisis, says Cris Cicala at Stinson.
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2 Options For Sackler Family After High Court Purdue Ruling
After the U.S. Supreme Court recently blocked Purdue Pharma's plan to shield the family that owns the company from bankruptcy lawsuits, the Sacklers face the choice to either continue litigation, or return to the bargaining table for a settlement that doesn't eliminate creditor claims, says Gregory Germain at Syracuse University.
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Revisiting Scalia's 'What's It To You?' After Kaiser Ruling
While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.
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Florida Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 brought two notable bills that will affect Florida's banking and finance community across many issues, including virtual currency abandonment, cancellation of financial services on the basis of political opinions, and the exemption amount of motor vehicles, say Joshua Prever and Andrew Balthazor at Holland & Knight.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan
The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.
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No Matter The Purdue Ruling, Mass Tort Reform Is Needed
The U.S. Supreme Court will soon issue its opinion in the bankruptcy of Purdue Pharma LP, and regardless of the outcome, it’s clear legal and policy reforms are needed to address the next mass tort, says William Organek at Baruch College.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.