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Bankruptcy
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June 06, 2025
High Court Says Software Glitch Led To Early Order List Drop
An "apparent software malfunction" caused the U.S. Supreme Court's order list to be issued early Friday, orders in which the justices granted certiorari in four cases and refused to take up a long list of other ones, including cases centered on Pennsylvania's election system and the Obama Presidential Center.
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June 06, 2025
Real Estate Recap: Hotels, Healthcare REITs, Secondaries
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including where the hotel sector stands at the midyear, which states are trying to curb healthcare investment models and what is fueling the surge in the real estate secondaries market.
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June 06, 2025
Rite Aid Emphasizes It Will Pay Rent To Objecting Landlords
The twice-bankrupt drug store chain Rite Aid is seeking to reassure landlords who filed a spate of objections in recent days that it intends to continue meeting lease obligations despite its move to close some locations.
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June 06, 2025
Synapse Trustee Says No Funds Remain To Trace Client Cash
The court-appointed trustee overseeing the Chapter 11 of fintech middleware firm Synapse Financial Technologies Inc. is asking a California bankruptcy judge to convert the case to a Chapter 7 liquidation, despite some customer funds remaining unaccounted for.
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June 06, 2025
GM Says Texas Data Privacy Lawsuit Flouts Ch. 11 Sale Order
General Motors asked a New York bankruptcy court to enforce a 2009 Chapter 11 sale order, saying a recently amended consumer data privacy complaint from the Texas attorney general effectively includes successor liability claims it didn't inherit.
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June 06, 2025
Yotta Renews Post-Middleware Failure Claims Against Evolve
Yotta Technologies Inc., a fintech company caught in the implosion of now-bankrupt middleware company Synapse Financial Technologies Inc., has renewed claims it tossed earlier against its former partner Evolve Bank & Trust, accusing the bank of "running a Ponzi scheme" in connection with its alleged loss of millions of dollars in customer funds.
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June 06, 2025
NJ Firm Says It Has No Business Being Sued In Louisiana
New Jersey-based Porzio Bromberg & Newman PC asked a Louisiana federal judge to dismiss a doctor's suit accusing the firm of driving him into bankruptcy, arguing that there's no jurisdiction that would justify continued litigation in the state.
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June 05, 2025
Pa. City's Receiver Asks Court To Rein In Stormwater Board
The receiver for the bankrupt city of Chester, Pennsylvania, told a state court Thursday that the city-created stormwater authority and its board of directors violated their charter and state law by expanding the board and paying the elected officials who were on it.
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June 05, 2025
Boeing Says Ligado Must Decide On Satellite Deal In Ch. 11
Citing critical unknowns in Ligado Networks LLC's proposed Chapter 11 plan, Boeing Satellite Systems has asked a Delaware bankruptcy judge to order Ligado to choose whether to accept or reject a key Boeing contract, and to escrow at least $37.8 million to cure existing defaults before confirmation.
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June 05, 2025
Hooters Closes Locations As It Pursues Ch. 11 Franchise Shift
Bankrupt casual dining chain Hooters of America began shuttering dozens of restaurant locations throughout the United States Wednesday as it pursues a Chapter 11 restructuring that will see its plan disclosure statement up for approval next week.
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June 05, 2025
AI Coding App Co. Hits Ch. 7 After Legal Challenges
Engineer.ai, the parent of an artificial intelligence-supported coding app maker, Builder.ai, has filed papers for a Chapter 7 liquidation in Delaware with more than $50 million in liabilities, following litigation regarding claims about its technology and the recent appointment of a new CEO.
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June 05, 2025
DOL Benefits Arm Needs Turnaround, Nominee Tells Senators
President Donald Trump's pick to lead the U.S. Department of Labor's employee benefits division told a Senate panel Thursday to prepare for an overhaul of the subagency if he's confirmed, vowing to change the direction of enforcement, regulation and more.
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June 05, 2025
Hedge Fund Founder Hits Ch. 11 After $113M Judgment
The founder of the bankrupt Weiss Multi-Strategy Advisers has himself sought Chapter 11 protection in Florida after a New York judge granted a nearly $113.5 million judgment against him in favor of his firm's largest creditor.
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June 04, 2025
23andMe, Bidders Agree To Post-Ch. 11 Auction Offer Process
The winner of 23andMe's Chapter 11 auction and a nonprofit started by its co-founder can improve their offers to acquire the DNA testing company under procedures agreed to Wednesday in Missouri bankruptcy court, despite disruptions from a tornado warning and an attorney letting slip nonpublic details of an offer.
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June 04, 2025
Judge Grills Kidde-Fenwal About Missing Info In Disclosures
A Delaware bankruptcy judge Wednesday questioned why firefighting foam maker Kidde-Fenwal did not include in plan disclosures details about the recoveries its creditors can expect under its Chapter 11 proposal, as the debtor prepares to send its reorganization plan out for a vote.
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June 04, 2025
Ill. Atty Faces 1 Year Suspension, Left Watchdog 'Baffled'
An Illinois attorney who was sanctioned $1 million alongside his client for frivolously litigating a condominium governance fight and later helped that client engage in knowingly improper bankruptcy conduct should be suspended for a year and complete a professionalism seminar, a state disciplinary watchdog says.
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June 04, 2025
CFPB Resumes $4.2M Redress After Pressure From States
California's Department of Financial Protection and Innovation said Wednesday that the Consumer Financial Protection Bureau is now making good on a $4.2 million redress plan for former students of a shuttered sales-training firm, following agency delays and subsequent pressure from various states.
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June 04, 2025
Pa. Brewery Co-Owner Claims Fraud Against Jailed Partner
A Pittsburgh-area business owner currently jailed for insurance and bankruptcy fraud is also accused of defrauding his former partner in a brewery and restaurant, including hiding the fact that the building the partner was renovating and living in was actually condemned, according to a lawsuit filed in state court.
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June 04, 2025
Adviser Sued For Pouring $100M Into Failing Development
A Florida woman sued her financial adviser in state court Tuesday, claiming he engaged in a yearslong scheme to funnel $100 million of her money into a now-bankrupt mixed-use development project and convinced her to personally guarantee more than $300 million in loans for the project.
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June 04, 2025
HSF Kramer Taps Bankruptcy Duo As 1st Hires Since Merger
Herbert Smith Freehills Kramer LLP announced on Wednesday its first hires since the merger between Kramer Levin Naftalis & Frankel LLP and Herbert Smith Freehills LLP became official at the start of this month, welcoming two attorneys from New York bankruptcy boutique Togut Segal & Segal LLP.
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June 03, 2025
Judge Blocks Foreign Enforcement In $102M Award Fight
A New York federal judge has ordered the former owners of reorganized international shipping group Eletson Holdings Inc. to drop proceedings they initiated in Greece and the United Kingdom to enforce a $102 million arbitral award while he determines whether the award is fraudulent.
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June 03, 2025
Canada Customers Agree To Halt 23andMe Data Breach Suits
23andMe and Canadian customers suing over a data breach agreed on Tuesday to pause lawsuits against non-bankrupt third parties for up to six months amid the DNA testing company's Chapter 11 proceedings in Missouri.
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June 03, 2025
Accord Urges Justices To Reject 'Crush-Resistant' Oxy IP Row
Accord Healthcare Inc. says the U.S. Supreme Court should reject bankrupt OxyContin maker Purdue Pharma LP's attempt to revive its legal effort to use patent laws to block the release of a competing, "crush-resistant" generic painkiller.
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June 03, 2025
Tom Girardi Sentenced To Over 7 Years For $15M Client Fraud
A California federal judge sentenced Tom Girardi on Tuesday to over seven years in prison for his wire fraud conviction, granting some leniency to the disbarred attorney on his 86th birthday by imposing a sentence below the guidelines in recognition of his age and ailing health.
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June 03, 2025
Akoustis' Appeal Of $39M IP Verdict Dropped After Bankruptcy
Radio frequency filter firm Akoustis Technologies has agreed to drop an appeal of a jury's $39 million patent infringement and trade secrets misappropriation verdict in favor of Qorvo Inc. that drove it to file for Chapter 11 bankruptcy in December.
Expert Analysis
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How BigLaw Executive Orders May Affect Smaller Firms
Because of the types of cases they take on, solo practitioners, small law firms and public interest attorneys may find themselves more dramatically affected by the collective impact of recent government action involving the legal industry than even the BigLaw firms named in the executive orders, says Reuben Guttman at Guttman Buschner.
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Opinion
Lawsuits Shouldn't Be Shadow Assets For Foreign Capital
Third-party litigation financing amplifies inefficiencies from litigation and facilitates national exposure to foreign influence in the U.S. justice system, so full disclosure of financing arrangements should be required as a matter of institutional integrity, says Roland Eisenhuth at the American Property Casualty Insurance Association.
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How To Accelerate Your Post-Attorney Career Transition
Professionals seeking to transition to nonattorney careers may encounter skepticism as nontraditional candidates, but there are opportunities for thought leadership and to leverage speaking and writing to accelerate a post-attorney career transition, say Janet Falk at Falk Communications and Evgeny Efremkin at Toronto Metropolitan University.
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Series
Law School's Missed Lessons: Be An Indispensable Associate
While law school teaches you to research, write and think critically, it often overlooks the professional skills you will need to make yourself an essential team player when transitioning from a summer to full-time associate, say attorneys at Stinson.
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23andMe Case Highlights Privacy Complexities In Ch. 11
Attorneys at Pryor Cashman discuss the interplay between a sale of personally identifiable information and bankruptcy law in light of genetics and health company 23andMe's recent filing for Chapter 11 relief.
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Series
Birding Makes Me A Better Lawyer
Observing and documenting birds in their natural habitats fosters patience, sharpens observational skills and provides moments of pure wonder — qualities that foster personal growth and enrich my legal career, says Allison Raley at Arnall Golden.
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Series
Adapting To Private Practice: From DOJ Leadership To BigLaw
The move from government service to private practice can feel like changing one’s identity, but as someone who has left the U.S. Department of Justice twice, I’ve learned that a successful transition requires patience, effort and the realization that the rewards of practicing law don’t come from one particular position, says Richard Donoghue at Pillsbury.
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Law Firm Executive Orders Create A Legal Ethics Minefield
Recent executive orders targeting BigLaw firms create ethical dilemmas — and raise the specter of civil or criminal liability — for the government attorneys tasked with implementing them and for the law firms that choose to make agreements with the administration, say attorneys at Buchalter.
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Firms Must Embrace Alternative Billing Models Or Fall Behind
As artificial intelligence tools eliminate inefficiencies and the Big Four accounting firms enter the legal market, law firms that pivot from the entrenched billable hour model to outcomes-based pricing will see a distinct competitive advantage, says attorney William Brewer.
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How Attorneys Can Master The Art Of On-Camera Presence
As attorneys are increasingly presented with on-camera opportunities, they can adapt their traditional legal skills for video contexts — such as virtual client meetings, marketing content or media interviews — by understanding the medium and making intentional adjustments, says Kerry Barrett.
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Series
Baseball Fantasy Camp Makes Me A Better Lawyer
With six baseball fantasy experiences under my belt, I've learned time and again that I didn't make the wrong career choice, but I've also learned that baseball lessons are life lessons, and I'm a better lawyer for my time at St. Louis Cardinals fantasy camp, says Scott Felder at Wiley.
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Series
Adapting To Private Practice: From Fed. Prosecutor To BigLaw
Making the jump from government to private practice is no small feat, but, based on my experience transitioning to a business-driven environment after 15 years as an assistant U.S. attorney, it can be incredibly rewarding and help you become a more versatile lawyer, says Michael Beckwith at Dickinson Wright.
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Perfecting Security Interests In Renewable Energy Tax Credits
The ability to transfer renewable energy tax credits has created new opportunities for developers, investors and lenders, but it also raises important questions regarding when and how the security interests in these credits are perfected — questions that must be answered definitively to protect credit claims and transactions, says Harry Teichman at Stinson.
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Firms Still Have Lateral Market Advantage, But Risks Persist
Partner and associate mobility data from the fourth quarter of 2024 shows that we’re in a new, stable era of lateral hiring where firms have the edge, but leaders should proceed cautiously, looking beyond expected revenue and compensation analyses for potential risks, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Opinion
We Must Allow Judges To Use Their Independent Judgment
As two recent cases show, the ability of judges to access their independent judgment crucially enables courts to exercise the discretion needed to reach the right outcome based on the unique facts within the law, says John Siffert at Lankler Siffert & Wohl.