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Bankruptcy
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April 22, 2025
Judge Approves Prospect Medical's Pa. Hospitals' Closure
A Texas bankruptcy judge on Tuesday approved Prospect Medical Holdings' request to close two Pennsylvania hospitals after the bankrupt operator was unable to secure another entity to run the hospitals despite support from government and community organizations to keep them open.
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April 22, 2025
Chase Bank Can't Ditch Claims It Aided $119M Ponzi Scam
A California federal judge trimmed on Monday SiliconSage Builders LLC receiver's lawsuit accusing JPMorgan Chase of allegedly helping the now-defunct real estate developer carry out a massive $119 million Ponzi scheme, tossing an unjust enrichment claim, but allowing the bulk of the aiding-and-abetting allegations to survive.
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April 22, 2025
Pittsburgh Firm Accused Of Botching $3M Office Rent Row
The owner of a Pittsburgh office building claims mistakes made by attorneys from Meyer Unkovic & Scott LLP cost the company more than $3.3 million in rental income and interest payments, according to a lawsuit filed in federal court Monday.
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April 21, 2025
Contrarian Unit's $3.7B Citgo Bid Gets OK Despite Objections
A Delaware federal judge on Monday approved a Contrarian Capital Management affiliate's floor-setting $3.699 billion bid for Citgo's parent company, adopting the recommendation of a special master despite resistance from other bidders.
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April 21, 2025
Nylon Maker Files Ch. 11 In Texas With More Than $1B Debt
Nylon maker Ascend Performance Materials on Monday filed for Chapter 11 protection in a Texas bankruptcy court, saying it plans to work with its lenders to deleverage its more than $1 billion in debt.
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April 21, 2025
Judge Blocks Pot Co. CEO's Bid To Enforce $1.5M Settlement
The founder of a defunct marijuana greenhouse leasing business cannot reopen an investor class action to enforce a $1.5 million settlement and declare a related bankruptcy action unlawful, a Colorado federal judge has ruled, finding that he has already filed a separate lawsuit asking for the same things.
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April 21, 2025
GenapSys Fights Paul Hastings Bid To Ax Malpractice Suit
GenapSys Inc. is pushing back on Paul Hastings LLP's motion for summary judgment in the legal malpractice suit the gene sequencing company filed, contending it was not required to disclose the legal malpractice suit to a bankruptcy court.
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April 21, 2025
Solar Co. Oya Gets OK On Ch. 11 Liquidation After Asset Sales
A Delaware bankruptcy judge on Monday confirmed solar energy producer Oya Renewables' bid to liquidate through Chapter 11 under a plan supported by creditors, months after the company sold most of its assets for $39 million.
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April 21, 2025
Justices Won't Hear Mall Of America's Sears Lease Dispute
The U.S. Supreme Court on Monday declined to hear a case filed by the owner of Minnesota's Mall of America against Sears Holding Corp. over a transfer of a 100-year lease for an anchor store location, leaving in place a lower court's finding that the mall's lease was not a "true" contract.
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April 18, 2025
Gamestop CEO Can't Stop Bed Bath & Beyond Trading Suit
A Manhattan federal judge trimmed a $47 million lawsuit from the bankrupt retailer once known as Bed Bath & Beyond accusing GameStop's CEO of insider trading before the housewares giant went belly-up, but says "ample" public information would have told the businessman he had enough stock to be a corporate insider.
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April 18, 2025
Eletson's New Owners Look To Oust Reed Smith From Cases
Reorganized Greek oil shipping group Eletson Holdings Inc. has told a New York bankruptcy judge that Reed Smith LLP should stop representing the company and its former owners in litigation and appeals or face sanctions.
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April 18, 2025
Heritage Coal Challenges Ex-Owner's Liens In Ch. 11 Offshoot
Bankrupt coal producer Heritage Coal & Natural Resources LLC has asked a Delaware bankruptcy judge to reject the asserted liens of the company's former owner and general manager, saying the debtor's equipment is already subject to liens of prepetition lenders.
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April 18, 2025
Biotech Execs Seek Ch. 15 Pause Pending Trustee Removal
Executives with BIA Separations, the U.S. subsidiary of an Austrian biotechnology company, have asked a Delaware bankruptcy judge to delay granting the foreign company Chapter 15 recognition until efforts to remove the trustee who started the U.S. bankruptcy can be decided.
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April 18, 2025
Skadden Atty Joins Milbank's Financial Restructuring Group
Milbank LLP has added a longtime Skadden counsel as a partner in its financial restructuring group in the New York office, as part of the firm's ongoing global expansion of its restructuring practice.
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April 18, 2025
Zips Car Wash Gets OK For $279M Debt-Swap Ch. 11 Plan
A Texas bankruptcy judge on Friday approved Zips Car Wash's $279 million debt-swap reorganization, overriding the U.S. Trustee's office's arguments against the plan's claims releases for third parties.
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April 17, 2025
K&L Gates Bungled Crypto Co.'s Bankruptcy Claim, Suit Says
Gryphon Digital Mining has sued its former counsel K&L Gates LLP, claiming it dropped the ball on a bankruptcy filing that cost the company millions of dollars and complicated another legal case, all while allegedly overbilling the crypto mining firm by $1 million for related matters.
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April 17, 2025
Mitel Networks Gets Ch. 11 Plan Confirmed In Texas
A Texas bankruptcy judge on Thursday approved telecommunications group Mitel Networks' disclosures regarding its prepackaged Chapter 11 plan and confirmed the company's reorganization proposal, overruling an objection from the U.S. Trustee's Office regarding claims release provisions.
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April 17, 2025
Wyoming Biz Accuses Pa. Entities Of $3.9M Explosives Fraud
A Wyoming-based defense contractor on Thursday accused a Pennsylvania company and its owner of pocketing $3.9 million and never delivering explosives bought to aid Ukrainian and Israeli forces, and using the money to pay for helicopters, luxury watches and a posh overseas wedding.
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April 17, 2025
Exela Gets OK For $5M Financing While In DIP Talks
A Texas bankruptcy judge gave Excela Technologies the go-ahead for a $5 million transaction as a stopgap while the payment processing company works to resolve objections to the final order for its proposed $185 million in Chapter 11 financing.
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April 17, 2025
Debt Firm's Successor, Ch. 11 Trustee End Latest Pay Dispute
A law firm that bought thousands of client files left over from the collapse of bankrupt California-based debt relief business Litigation Practice Group PC has agreed to pay nearly $1 million to the bankruptcy estate to help settle a payment dispute that began months ago.
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April 17, 2025
Petersen Health Gets Initial OK To Take Votes On Ch. 11 Plan
A Delaware bankruptcy judge on Thursday provisionally approved skilled nursing facility operator Petersen Health Care's bid to send its Chapter 11 liquidation plan out to creditors for voting, months after the company sold off most of its assets.
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April 17, 2025
Dorsey & Whitney Adds DOJ Bankruptcy Ace In Del., NY
Dorsey & Whitney LLP has fortified its bankruptcy and financial restructuring group in Delaware and New York with an attorney who came aboard from the U.S. Department of Justice.
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April 16, 2025
3rd Circ. Punts Mining Co. Document Fight To Ch. 11 Judge
The Third Circuit vacated a Delaware bankruptcy judge's order to unseal records a successor of Essar Steel's U.S. unit is seeking to bolster its antitrust claims against Cleveland-Cliffs, ruling Wednesday that the Chapter 11 judge used the wrong standard.
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April 16, 2025
Limits On Conn. Biz Law Stay In Effect In Sandy Hook Case
A Connecticut appeals court's $150 million paring of a $1.44 billion judgment against Infowars host Alex Jones for defaming the Sandy Hook Elementary School shooting victims' families was a shift away from a broader view of the state's most popular business litigation statute, several experts told Law360.
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April 16, 2025
Imerys Says Italian Unit In Danger From Talc Lawsuits
Bankrupt talc producer Imerys Talc America on Wednesday defended its recent move to file a Chapter 11 case for its Italian subsidiary, saying the foreign unit is facing imminent financial danger should it be targeted in talc injury suits.
Expert Analysis
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4 Ways Women Attorneys Can Build A Legal Legacy
This Women’s History Month, women attorneys should consider what small, day-to-day actions they can take to help leave a lasting impact for future generations, even if it means mentoring one person or taking 10 minutes to make a plan, says Jackie Prester, a former shareholder at Baker Donelson.
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A Judge's Pointers For Adding Spice To Dry Legal Writing
U.S. District Judge Fred Biery shares a few key lessons about how to go against the grain of the legal writing tradition by adding color to bland judicial opinions, such as by telling a human story and injecting literary devices where possible.
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Lessons Learned From SAS' Flight Through Chapter 11
Scandinavia's SAS is the first European airline to find its wings through the U.S. Chapter 11 process since COVID-19 rocked the aviation industry — and while the process involved some familiar steps, certain complex jurisdictional issues and non-U.S. stakeholders required the carrier to venture into uncharted airspace, says Emily Hong at Norton Rose.
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Bankruptcy Ruling Provides Guidance On 363 Asset Sales
HE v. Avadim Holdings, a recent ruling from the District of Delaware, underscores the principle that rejection of executory contracts does not unwind completed transfers of property and the importance of clear and precise language in sale orders and asset purchase agreements in bankruptcy cases, say attorneys at Eversheds Sutherland.
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A Look At The Student Loan Case Pending At Supreme Court
The Trump administration is likely to drop the U.S. Supreme Court case of U.S. Department of Education v. Career Colleges and Schools of Texas after its review of the 2022 borrower defense to repayment rule, but any outcome will be significant for institutions participating in programs covered by Title IV of the Higher Education Act, say attorneys at Duane Morris.
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7 Tips For Associates To Thrive In Hybrid Work Environments
Excerpt from Practical Guidance
As the vast majority of law firms have embraced some type of hybrid work policy, associates should consider a few strategies to get the most out of both their in-person and remote workdays, says James Argionis at Cozen O’Connor.
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Series
Playing Beach Volleyball Makes Me A Better Lawyer
My commitment to beach volleyball has become integral to my performance as an attorney, with the sport continually reminding me that teamwork, perseverance, professionalism and stress management are essential to both undertakings, says Amy Drushal at Trenam.
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Terraform Case May Be Bellwether For Crypto Enforcement
The prosecution of crypto company Terraform Labs and its CEO, Do Kwon, offers a unique test of the line between lawful and unlawful conduct in digital transactions, and the Trump administration’s posture toward the case will provide clues about its cryptocurrency enforcement agenda in the years to come, say attorneys at Brooks Pierce.
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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How Courts Can Filter Nonmeritorious Claims In Mass Torts
Nonmeritorious claims have been a key obstacle to settlement in many recent high-profile mass torts, but courts may be able to use tools they already have to solve this problem, says Samir Parikh at Wake Forest University.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.