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Bankruptcy
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March 05, 2025
Alex Jones Escapes Immediate Sandy Hook Payment Bid
Bankrupt Infowars host Alex Jones has escaped a request to immediately pay more than $1 billion to the families of Sandy Hook Elementary School victims who sued him for defamation, the Connecticut Appellate Court has ruled.
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March 05, 2025
Bradley Arant Adds Parker Hudson Bankruptcy Ace In Atlanta
Bradley Arant Boult Cummings LLP has brought on a Parker Hudson Rainer & Dobbs LLP partner, who is based in Atlanta, to strengthen its bankruptcy and creditors' rights practice.
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March 05, 2025
Skin Care Tech Co. Files Ch. 11 With $400M Prepackaged Plan
Skin care and beauty technology company Cutera Inc. filed for Chapter 11 protection in a Texas bankruptcy court Wednesday with over $429 million in debt and a prepackaged debt-swap plan to cut that number by nearly $400 million.
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March 04, 2025
Judge Says She'll Ask What 'Nobody Else Will' In Romance Suit
A federal judge expressed incredulity Tuesday that Jackson Walker didn't press its former partner harder to get the exact dates of her relationship with a former bankruptcy judge when allegations of their relationship came to light in 2021.
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March 04, 2025
Rochester Diocese Ch. 11 Plan Heading For Creditor Vote
A New York bankruptcy judge on Tuesday approved a second vote on a Chapter 11 plan for the Roman Catholic Diocese of Rochester, a decision that could see a resolution of the more than 5-year-old case by the end of July.
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March 04, 2025
Petersen Health Care Opposes Vendor's Ch. 11 Fee Demand
Bankrupt skilled nursing facility operator Petersen Health Care told a Delaware bankruptcy judge Tuesday that a vendor seeking payment of its legal costs in pursuing a $163,000 administrative expense claim against the debtor should have the request slashed because the fees exceed the amount of the claim.
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March 04, 2025
3 Kasowitz Financial Litigators Leave BigLaw For NY Boutique
Litigation boutique Pallas Partners LLP has brought on three New York-based litigators from Kasowitz Benson Torres LLP to strengthen its commercial and financial litigation capabilities on both sides of the Atlantic, the firm said Tuesday.
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March 04, 2025
Exela Units File For Ch. 11 With $1.3B Debt
A Texas bankruptcy judge granted about 60 units of business process automation company Exela Technologies Inc. interim approval to access a $185 million lending facility to finance their Chapter 11 bankruptcy cases, in which the debtors hope to refinance their more than $1.3 billion of debt.
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March 03, 2025
Yellow Corp. Settles Pair Of WARN Suits In Del. For $12.3M
Shuttered Yellow Corp.'s trucking company bankruptcy estate has agreed to settlements totaling $12.3 million with two former employee groups, which were reached before a Delaware judge's posttrial denial of Worker Adjustment and Retraining Act claims covering thousands of ex-company employees, according to recent court filings.
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March 03, 2025
US Trustee Opposes Confirmation Of CarePoint's Ch. 11 Plan
The U.S. Trustee's Office on Monday joined a flurry of objections against the Chapter 11 plan of CarePoint Health Systems inc., saying the hospital owner has made it hard for the trustee to gauge the plan's potential.
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March 03, 2025
NC Hotel Developer Hits Ch. 11 After Defaulting On $17M Loan
A North Carolina hotel developer embroiled in a $17 million lawsuit over a defaulted loan to build a Hyatt hotel near the Asheville airport filed for bankruptcy on Sunday, reporting assets and liabilities between $10 million and $50 million.
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March 03, 2025
Calif. BMO Worker Can Bank On Litigating 401(k) Suit In Ill.
A proposed class action challenging BMO Financial Corp.'s alleged misuse of forfeited retirement contributions should be litigated in Illinois, where most of the bank's evidence and witnesses are located, a California federal judge said on Friday.
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March 03, 2025
Life Science Consulting Firm Hits Ch. 11 With Sale Plans
Azzur Group, which offers services for pharmaceutical developers, filed for bankruptcy in Delaware with at least $100 million in debt and plans to hold an auction backed by a $56 million stalking horse offer.
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March 03, 2025
High Court Declines Souvenir Store's TM Fraud Case
The U.S. Supreme Court said Monday it will not consider a Florida souvenir store chain's challenge to a Second Circuit decision shutting down its case that a bankrupt beachwear company fraudulently procured a trademark registration to secure a $3.5 million settlement.
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February 28, 2025
J&J Talc Spinoff Wraps Two-Week Chapter 11 Trial
A marathon Chapter 11 trial for Johnson & Johnson's talc liability unit wrapped up Friday, with attorneys defending the $10 billion plan against competing efforts to toss the Texas bankruptcy.
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February 28, 2025
Judge Refuses To Dismiss $500M Miss America Suit
A Florida judge has denied the bulk of real estate developer Glenn Struab and two associates' attempt to escape a fraud and racketeering lawsuit that accuses them of conspiring to assert control and ownership of the company that runs the Miss America pageant and seeks $500 million in damages.
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February 28, 2025
Real Estate Recap: Gov't Lease Limbo, AI Upset, Profiteering
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including attorney insights into federal lease upheaval, the impact of AI efficiency on data centers and price-gouging in the aftermath of the Los Angeles wildfires.
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February 28, 2025
FDIC Can't Nix SVB Trust's Claims Feds Must Turn Over $1.93B
A California federal judge has tossed a pair of claims from SVB Financial Trust's lawsuit alleging that the FDIC wrongfully took control of $1.93 billion in deposits amid Silicon Valley Bank's collapse, dismissing due process claims for good but allowing the trust to pursue promissory estoppel allegations and so-called turnover claims.
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February 28, 2025
Ex-UBS Financial Adviser Must Pay $2M Back, 11th Circ. Told
UBS urged the Eleventh Circuit on Friday to undo rulings in a bankruptcy adversary case precluding a former financial adviser from paying back the proceeds of a $2 million loan deposited in a joint account with his wife, saying the funds shouldn't be immune to creditors.
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February 28, 2025
Carbon Project Investor C-Quest Hits Ch. 7
Carbon project developer C-Quest Capital has filed for Chapter 7 liquidation in a Delaware bankruptcy court as its ex-CEO faces charges he fraudulently obtained millions of dollars worth of carbon credits.
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February 27, 2025
4th Circ. Says Trustees Can't Settle Co.'s Suit Against Ex-CEO
Separate bankruptcy trustees for a company and its former CEO have no right to settle the company's fraud claims against the CEO with insurance proceeds from a directors and officers policy, the Fourth Circuit ruled, agreeing with the insurer that only the former CEO himself has consent-to-settle rights.
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February 27, 2025
US Trustee, Creditors Blast GOL Linhas' Plan Disclosure
GOL Linhas noteholders and the U.S. Trustee's Office are asking a New York bankruptcy judge to reject the Brazilian airline's Chapter 11 plan disclosures, saying they lack information on items ranging from claims releases to the company's post-bankruptcy equity value.
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February 27, 2025
Judge Axes NYC Loan Row, Sanctions Firm For Depositions
A New York federal judge has dismissed a commercial real estate lender's claims against two guarantors for a 2022 loan it made, ripping the lender and its ex-counsel, Fox Rothschild LLP, for deposition no-shows.
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February 27, 2025
Judge Urges $15.5M Tax Judgment Against Ex-NFL Champ
A federal magistrate judge recommended a default judgment against four-time Super Bowl champion Bill Romanowski and his wife for $15.5 million in taxes, saying in a report Thursday that the couple failed to respond to the underlying government complaint against them.
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February 27, 2025
Yellow Corp. Beats Teamsters In WARN Act Row
A Delaware bankruptcy judge has ruled that trucking company Yellow Corp. is not liable for its failure to provide 60 days notice of layoffs to 22,000 union workers who lost their jobs as the company descended into Chapter 11, finding that Yellow was a "liquidating fiduciary" at the time and intended to comply with the WARN Act.
Expert Analysis
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Bankruptcy Courts May Be Budding Open To Cannabis Cases
Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Can Chapter 15 Bankruptcy Help Cannabis Businesses?
Attorneys at Fox Rothschild consider whether Chapter 15 may be used as a tool to liquidate U.S. assets of cannabis companies in foreign bankruptcy proceedings, and look at the statutory provisions that may have a bearing on the successful liquidation of assets under the Bankruptcy Code.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Mercon Coffee Ch. 11 Ruling Shows Insider Releases' Limits
A New York bankruptcy court’s recent ruling in Mercon Coffee’s Chapter 11 case highlights the stringent requirements for retention-related transfers to insiders, even in cases where no creditor has objected, say Robert Klyman and Scott Shelley at DLA Piper.
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5 Insights Into FDIC's Final Rule On Big-Bank Resolution Plans
Although the Federal Deposit Insurance Corp.'s recently finalized rule expanding resolution planning requirements for large banks was generally adopted as proposed, it includes key changes related to filing deadlines, review and feedback, and incorporates lessons learned — particularly from last year's bank failures, say attorneys at Cleary.
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Bankruptcy Trustees Need More FinCEN Guidance
Recent FinCEN consent orders in two North Carolina bankruptcy cases show that additional guidance is necessary for most types of fiduciaries overseeing bankruptcy estates or other insolvency vehicles, say Brian Shaw and David Doyle at Cozen O’Connor.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.