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Bankruptcy
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July 25, 2025
Dentons Stalling Discovery In Terraform Ch. 11, Court Told
The bankruptcy plan administrator for failed cryptocurrency platform Terraform Labs has accused Dentons US LLP of blocking his discovery requests in an attempt to secure final approval of some $25 million in fees, saying the law firm is seeking to "run out the clock" to dodge an investigation into its role in Terraform's collapse.
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July 25, 2025
Calif. Landlord Files Ch. 11 With Over $50M In Debt
A company that owns an apartment building in California's Central Coast region has launched a Chapter 11 case with between $50 million and $100 million each in assets and liabilities.
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July 25, 2025
Will Tom Girardi's Wardrobe Mishap Help His Appeal?
When legendary attorney Tom Girardi's pants fell down as he finished testifying in his defense, the judge had to decide: Was this a desperate bid to feign incompetence and avoid prison for stealing client funds, or just an accident by an 86-year-old man with dementia? And if it really was an accident, does it now give Girardi a shot at winning his appeal and overturning his sentence?
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July 24, 2025
Judge Won't Block Exela Ch. 11 Plan For Claims Dilution Suit
A Texas bankruptcy judge Thursday declined to stop automation technology group Exela from exiting Chapter 11 next week, but said he would condition the over $1 billion debt-for-equity swap plan's effectiveness on a roughly 30% recovery rate for its general unsecured claims.
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July 24, 2025
Fiber Co. Tilson Sues Gigapower For Breach Of Contract
Fiber network developer Tilson Technology Management Inc. has filed a lawsuit in Texas against joint venture Gigapower LLC, alleging wrongful breach of contract tied to large-scale infrastructure projects that ultimately pushed Tilson into bankruptcy.
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July 24, 2025
IRS Can Levy Religious Group's Property, Split 9th Circ. Says
The IRS can impose a lien on an Arizona residential property held by a religious organization to collect unpaid taxes owed by a bankrupt couple who had decision-making authority over the entity's finances and bank account, a divided Ninth Circuit ruled Thursday.
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July 24, 2025
FTX Ends 6 Suits Over Political Donations In Ch. 11
Fallen cryptocurrency exchange FTX has agreed to dismiss adversary proceedings in Delaware bankruptcy court against six political organizations, lawsuits that were aimed at recovering roughly $28.75 million in donations made to the groups prior to FTX's bankruptcy.
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July 24, 2025
Forex Firm Argentex Placed Into Administration
United Kingdom-based currency risk manager Argentex said it has appointed administrators after suffering a "rapid" loss of liquidity amid volatility tied to the U.S. trade war.
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July 24, 2025
Hedge Fund Founder Fights To Keep His Own Ch. 11 In Florida
The founder of insolvent hedge fund Weiss Multi-Strategy Advisers has asked a New York bankruptcy judge to not transfer his personal bankruptcy case out of Florida, arguing that is where his primary residence is and that his firm's New York case is winding down.
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July 23, 2025
Lender Seeks End To NY Developer's 2nd Ch. 11 Try
A prospective developer of a Westchester County, New York, property has filed for Chapter 11 protection in a New York bankruptcy court with more than $10 million in debt and a mortgage provider seeking to dismiss the case, saying it's an attempt to dodge a foreclosure sale.
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July 23, 2025
PREPA Bondholders Say Utility Swiped $2.9 Billion
The electric utility for Puerto Rico on Wednesday defended itself in New York bankruptcy court from allegations that it had improperly spent its revenues, which the bondholders claim as collateral for $8.5 billion worth of bonds.
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July 23, 2025
Dolphin Co. Unit Nears Court Approval Of Bid Procedures
A Delaware bankruptcy judge said Wednesday she will approve the bidding procedures that an insolvent subsidiary of The Dolphin Co. proposed for a sale of all its assets, once the debtor makes certain revisions to its requests.
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July 23, 2025
Yale Wins Bid To Keep $435M Hospital Sale Suit In State Court
A Connecticut federal judge has sided with Yale New Haven Health Services Corp., the state's largest hospital system, in sending a contract suit with a bankrupt hospital seller back to state court, finding that remand would best preserve court resources rather than transferring it to a bankruptcy judge in Texas.
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July 23, 2025
Avon Ch. 11 Plan Needs 'Tweaks,' Judge Says
A Delaware bankruptcy judge told Avon on Wednesday that the wording of its Chapter 11 plan needs some work before he can approve it, finding the company's insurance carriers had raised objections worth addressing.
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July 22, 2025
States, Asbestos Claimants Seek Claim Purge Block In Del.
An attorney for companies embroiled in asbestos injury suits urged a Delaware vice chancellor Tuesday to block plans by asbestos bankruptcy claims trusts to begin routine destruction of exposure-related data, arguing that the move would cut off a potential last-resort source of information.
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July 22, 2025
Judge Rejects Bondholder Claim Against Puerto Rico
A New York federal judge found Tuesday the terms of Puerto Rico's debt restructuring plan bars holders of bonds issued by the island's public electric utility from lodging a claim against its government.
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July 22, 2025
NC Judge OKs $318M For Lindberg Victims From Asset Sale
A federal judge in North Carolina on Tuesday signed off on a special master's request to divvy up $318 million from the sale of one of convicted insurance mogul Greg Lindberg's most valuable assets to help pay back the insurance companies he is accused of defrauding.
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July 22, 2025
Judge Won't Stay Highland Ch. 11 Over Charity Fraud Probe
A Texas bankruptcy judge has refused to stay the Chapter 11 case of Highland Capital LP in whole or in part, denying a pair of requests from the state of Texas and from a trust affiliated with ex-CEO James Dondero after finding the reason for their requests irrelevant to the case.
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July 22, 2025
Ch. 11 Judge Escapes Energy Drink Co. Founder's Bias Suit
A Florida bankruptcy judge was freed Tuesday from a suit alleging he was biased while presiding over the Chapter 11 case of the company behind Bang energy drinks.
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July 21, 2025
Avon, Insurers Spar At Ch. 11 Plan Hearing Over Talc Trust
Avon made its case Monday to a Delaware bankruptcy judge for its Chapter 11 liquidation plan, while insurers that issued policies to the cosmetics company alleged its proposal to pay talc injury claims through a trust funded by insurance coverage was unfair to them.
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July 21, 2025
Catching Up With Delaware's Chancery Court
Last week at the Delaware Court of Chancery, a major settlement between Meta Platforms Inc. and its investors reached on the proverbial courthouse steps during day two of a trial ended an $8 billion-plus suit accusing the company's directors and officers of breaching privacy regulations and corporate fiduciary duties tied to allegations dating to the Cambridge Analytica scandal more than a decade ago.
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July 21, 2025
Pet Care App Wag! Plans To Go Private In Ch. 11
The pet care app Wag! filed for bankruptcy on Monday, saying it expects to have a prepackaged restructuring plan confirmed in just over a month that will transfer ownership of the publicly traded company to its secured lender.
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July 21, 2025
Reed Smith's Doc Block Motion 'Hyperbolic,' 2nd Circ. Told
Reed Smith LLP cannot block the new owners of reorganized Greece-based international shipping company Eletson from viewing files already in its possession, the company has told the Second Circuit, arguing the law firm's emergency motion to stop the new owners from accessing the files was intentionally timed to head off anticipated district court rulings.
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July 21, 2025
Top 4 Texas Cases To Watch: A Midyear Report
Several major cases are taking shape in the Lone Star State, including the Southwest Airlines Pilots Association's suit seeking to hold Boeing accountable for lost revenue after the 737 Max was grounded, as well as the continuing fallout of a former Houston judge's romance scandal that could cost a Texas firm millions of dollars. Here's a look at the top cases to watch in Texas through the rest of the year.
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July 21, 2025
Conn's Ch. 11 Plan Approved With Opt-Outs
A Texas bankruptcy judge on Monday confirmed the Chapter 11 plan of department store Conn's, overruling objections from the U.S. Trustee's Office that it contained improper release and exculpation provisions.
Expert Analysis
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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.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Serta Ruling Further Narrows Equitable Mootness In 5th Circ.
The Fifth's Circuit recent Serta bankruptcy decision represents a further hardening of its view of the equitable mootness doctrine, and may set up a U.S. Supreme Court review of the doctrine in the near future, say attorneys at Cleary.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.
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Ch. 11 Ruling Confirms Insurer Standing Requirements
A New York bankruptcy court's recent decision in the Syracuse Diocese's Chapter 11 case indicates that insurers have misread the U.S. Supreme Court’s 2024 ruling in Truck Insurance Exchange v. Kaiser Gypsum and that federal standing requirements remain unaltered, say attorneys at Lowenstein Sandler.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Imagine The Possibilities Of Openly Autistic Lawyering
Andi Mazingo at Lumen Law, who was diagnosed with autism about midway through her career, discusses how the legal profession can create inclusive workplaces that empower openly autistic lawyers and enhance innovation, and how neurodivergent attorneys can navigate the challenges and opportunities that come with disclosing one’s diagnosis.