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Bankruptcy
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September 12, 2025
Real Estate Recap: CMBS Distress, Nuclear AI, Campus Golf
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including attorney perspectives on commercial mortgage-backed securities distress, the dawn of nuclear-powered data centers, and the albatross of golf courses on colleges and universities.
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September 12, 2025
Exile's Wife Loses Appeal Over $6.9M Connecticut Mansion
The wife of Chinese exile and convicted security fraud defendant Miles Guo lost her bid to shield a $6.9 million Greenwich mansion from her husband's creditors when a Connecticut federal judge ruled Friday that the property ultimately belongs to his Chapter 11 estate.
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September 12, 2025
Justices Urged To Skip Highland's Ch. 11 'Gatekeeper' Appeal
An alternative investment firm pressed the U.S. Supreme Court to not review a Fifth Circuit decision narrowing releases and so-called "gatekeeper" provisions in bankrupt Texas investment group Highland Capital Management's Chapter 11 plan.
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September 12, 2025
Heavy Equipment Seller Hits Ch. 11 With $100M Of Debt
Construction equipment seller and rental company Worldwide Machinery Group Inc. filed for Chapter 11 protection in Texas late Thursday, saying it has at least $100 million of debt in its initial court filings.
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September 12, 2025
Quinn Emanuel's $30M Fee Bid Flouts Ch. 11, Co. Says
Israeli printed circuit maker Nano Dimension has told a Massachusetts federal judge that Quinn Emanuel Urquhart & Sullivan LLP can't claim a $30 million attorney's lien to make an "end run" around the bankruptcy of 3D printing company Desktop Metal, a former client that Nano acquired.
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September 12, 2025
Magnesium Producer's DIP Rollup Denied Amid Enviro Row
A Delaware bankruptcy judge on Friday rejected US Magnesium's request to roll up some $3 million in existing debt after the state of Utah argued that doing so would improperly grant a lender liens on unencumbered assets, saying the evidence didn't support approving the rollup so early in the Chapter 11 case.
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September 12, 2025
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen former Master Chef presenter Gregg Wallace sue the BBC, Elon Musk's xAI take legal action against a staff engineer, and fashion mogul Kevin-Gerald Stanford file a fresh claim against Lion Capital-owned Klotho and EY amid a long-running All Saints share acquisition dispute.
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September 11, 2025
Girardi's Atty, Judge Debate If His Conviction Is 'Debatable'
A California federal judge pushed back Thursday on arguments by Tom Girardi's lawyer that he should be free on bond while he appeals his wire fraud conviction, saying that debating the case doesn't automatically mean it raises "fairly debatable" questions sufficient to meet the Ninth Circuit's standard for remaining free on appeal.
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September 11, 2025
Capital One Sues FDIC Over $149M SVB Bailout Charge
Capital One has sued the Federal Deposit Insurance Corp. in Virginia federal court challenging a $149 million charge in a special assessment levied by the agency as part of an effort to recoup losses from the 2023 regional banking crisis, saying the FDIC improperly included certain data in its calculation of the special assessment.
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September 11, 2025
Colo. Judge Says $1.5M Damages Request May Be 'Piling On'
A Colorado federal judge was skeptical Thursday to award a $1.5 million default judgment against the owner of a now-defunct metal fabrication and construction company who was accused by former employees in a class action of failing to pay wages in the months before the business filed for bankruptcy.
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September 11, 2025
SEC Drops Suit Against Nikola Founder After Trump's Pardon
The U.S. Securities and Exchange Commission on Thursday ended its civil enforcement action in New York federal court against Nikola founder Trevor Milton months after he was pardoned by President Donald Trump for his securities fraud conviction on charges of lying to boost the company's stock on Wall Street.
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September 11, 2025
Bankrupt $300M Fla. Project Gets Nod On DIP Loan
A Florida bankruptcy judge on Thursday signed off on a $1.75 million debtor-in-possession loan and approved a chief restructuring officer for the debtors of a $300 million real estate development to buy time for the parties to work out a deal to exit bankruptcy.
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September 11, 2025
3rd Circ. Won't Toss Talc Co. Whittaker Clark & Daniels' Ch. 11
Defunct talc supplier Whittaker Clark & Daniels properly filed for Chapter 11 protection in 2023 and its bankruptcy case should not be dismissed, the Third Circuit has ruled, siding against talc claimants who argued the company already being in receivership precluded it from filing for bankruptcy.
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September 11, 2025
JCPenney Settles Fee Dispute Over Jackson Walker Romance
The corporate entities formerly known as JCPenney on Thursday asked a Texas federal court to greenlight a $1.4 million settlement with Jackson Walker PC in a dispute concerning the romance of a partner with a bankruptcy judge, the latest and largest of several settlements to seek approval in recent months.
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September 11, 2025
Entities Tied To Several CVS Locations File For Ch. 11
Several entities tied to properties operating as CVS locations have filed for Chapter 11 bankruptcy in Delaware, saying that the filings are "in the best interests" of the debtors, creditors and other stakeholders.
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September 11, 2025
Magnesium Producer Hits Ch. 11 Following Plant Failures
US Magnesium LLC, once North America's largest producer of primary magnesium, has filed for Chapter 11 protection in Delaware bankruptcy court with up to $500 million of debt, years after major equipment failures at its Utah facility ground production to a halt.
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September 10, 2025
Fla. Judge Chides Attys Over Discovery In High-Rise Ch. 11
A Florida federal judge on Wednesday chided attorneys over discovery deadlines in a Chapter 11 bankruptcy case involving a downtown Miami high-rise development, setting an October deadline to produce documents after requests weren't fulfilled on time.
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September 10, 2025
Hydroxycut Maker Iovate Gets Ch. 15 Relief As Case Kicks Off
A New York bankruptcy judge agreed Wednesday to temporarily stay creditor actions against Canadian dietary supplement business Iovate Health Sciences one day after the Hydroxycut maker sought Chapter 15 protection.
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September 10, 2025
NIST Links Start Of Surfside Towers Collapse To Pool Deck
The National Institute of Standards and Technology's ongoing investigation into the 2021 partial collapse of the Champlain Towers South in Surfside, Florida, shows the collapse likely began in the 12-story residential building's pool deck, rather than in the main tower structure.
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September 10, 2025
$36M DOL Award Unjustified, Nursing Homes Tell 3rd Circ.
A group of bankrupt nursing homes told a Third Circuit panel Wednesday that a nearly $36 million judgment against it for not paying employees overtime should be thrown out because the judge who ordered it found sweeping Fair Labor Standards Act violations across the company without the support of the evidence.
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September 10, 2025
Guo Trustee, Law Firms Get OK For Deals On $4.4M Disputes
A Connecticut bankruptcy judge has approved deals between Chinese exile Miles Guo's Chapter 11 trustee and the law firm McDermott Will & Schulte, four other law firms and one consulting firm, ending $4.4 million in potential clawback claims without formal litigation.
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September 10, 2025
Firm Seeks To Toss Lowenstein Sandler Claims Over Affidavit
Trif & Modugno LLC has reiterated to the Essex County Superior Court in New Jersey that part of a malpractice suit filed against it by Lowenstein Sandler LLP must be dismissed because the national firm did not file an affidavit of merit within the time limit.
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September 10, 2025
Bowling Chain Pinstripes Gets Interim OK Of $3.8M DIP Loan
A Delaware bankruptcy judge on Wednesday granted interim approval for Italian eatery and bowling chain Pinstripes' $3.8 million debtor-in-possession financing from its prepetition lender, which will help the company navigate its Chapter 11 proceedings and pursue a going-concern sale.
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September 10, 2025
Subprime Lender Tricolor Auto Hits Ch. 7 With Over $1B Debt
Tricolor Holdings, a Texas-based company that provides car loans to low-income buyers, and several affiliates filed for Chapter 7 liquidation in Texas bankruptcy court Wednesday with more than $1 billion of debt.
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September 09, 2025
Ariz. Developer, Son Get Prison For $280M Sports Park Fraud
An Arizona developer and his son were both sentenced to prison Tuesday for deceiving investors into sinking $280 million into a Phoenix-area sports park by forging documents and inflating revenue projections for the facility, which entered bankruptcy soon after it opened.
Expert Analysis
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.
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Series
Coaching Little League Makes Me A Better Lawyer
While coaching poorly played Little League Baseball early in the morning doesn't sound like a good time, I love it — and the experience has taught me valuable lessons about imperfection, compassion and acceptance that have helped me grow as a person and as a lawyer, says Alex Barnett at DiCello Levitt.
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5 Litigation Funding Trends To Note In 2025
Lawyers and their clients must be prepared to navigate an evolving litigation funding market in 2025, made more complicated by a new administration and the increasing overall cost of litigation, says Jeffery Lula at GLS Capital.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Lessons From Two New Year's Eve Uptier Exchange Decisions
On the last day of 2024, two different courts issued important decisions relating to non-pro rata uptier exchanges — and while they differ, both rulings highlight that transactions effected in reliance on undefined terms in debt agreements come with increased risk, say attorneys at Simpson Thacher.
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Series
Playing Rugby Makes Me A Better Lawyer
My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
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Opinion
No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Consultants Should Be Aware Of DOJ's Potential New Reach
The U.S. Department of Justice's recent first-of-its-kind settlement with McKinsey & Co. indicates not only the DOJ's more aggressive stance toward businesses' potential criminal wrongdoings, but also the benefits of self-disclosure and cooperation when wrongdoing becomes apparent, says Dom Caamano at Kibler Fowler.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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An Associate's Guide To Career Development In 2025
As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.