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Bankruptcy
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June 17, 2025
Judge OKs Deal To End LeClairRyan Founder Tax Claims
A Virginia bankruptcy judge Tuesday approved a settlement striking LeClairRyan PLLC founder Gary LeClair from the list of owners of the defunct firm, relieving him of responsibility for a share of the firm's nearly $21 million in tax liabilities.
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June 17, 2025
Hooters Can Seek Ch. 11 Plan Votes Following Creditor Deal
A Texas bankruptcy judge determined Tuesday that Hooters of America may solicit votes on its Chapter 11 plan after the troubled casual dining chain reached an agreement with its unsecured creditors committee, overruling objections lodged by the U.S. Trustee's Office.
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June 17, 2025
WeightWatchers Cleared To Exit Ch. 11 And Cut $1.15B In Debt
WeightWatchers on Tuesday secured a Delaware bankruptcy judge's blessing to exit Chapter 11 less than two months after filing the case with a leaner balance sheet and new owners, allowing the dieting company to refocus its business after new weight-loss drugs threatened its main product.
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June 17, 2025
BowFlex Recall Burdens Buyers Of 3.7M Dumbbells, Suit Says
A BowFlex buyer is suing the brand's new owner in California federal court, alleging that a recall of defective adjustable dumbbells wrongly leaves out the vast majority of the product's buyers, covering only about 100,000 of the 3.8 million products sold.
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June 16, 2025
Consolidated SVB Class Action Survives 3 Dismissal Bids
A California federal judge has rejected three bids to dismiss a proposed shareholder class action against Silicon Valley Bank's brass, underwriters and auditor stemming from the bank's 2023 failure, finding the plaintiffs' "well-pleaded" allegations can continue.
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June 16, 2025
Burgess Biopower Gets OK For Ch. 11 Debt-Equity Swap
A Delaware bankruptcy judge on Monday approved the Chapter 11 debt-equity-swap reorganization of New Hampshire power plant operator Burgess BioPower.
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June 16, 2025
Joann Seeks Ch. 11 Block For Vendors' Ohio Suit
Bankrupt fabric retailer Joann Inc. has asked a Delaware bankruptcy judge to block an Ohio state suit filed against seven top company officials by vendors who claim they were deceived into extending credit to the 80-year-old fabric retailer between its first and second retreat into Chapter 11.
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June 16, 2025
All 50 States Agree To Purdue Pharma's $7.4B Settlement
Attorneys general from 55 U.S. states and territories on Monday backed Purdue Pharma's $7.4 billion deal to settle opioid injury claims against the company and the Sackler family, almost a year after the U.S. Supreme Court threw out Purdue's previous plan to end litigation over its role in the opioid epidemic.
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June 16, 2025
Home Decor Retailer Blames Tariffs For New Ch. 11 Filing
Household furnishing retail chain At Home Group Inc. filed for Chapter 11 protection Monday with just shy of $2 billion of debt, saying recent uncertainty over tariffs worsened its highly leveraged balance sheet and drove it into bankruptcy.
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June 13, 2025
Real Estate Recap: Builders' Hack, Korean Mezz, Hotel Angst
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including an inside look at California's Builder's Remedy, aggressive moves by South Korean mezzanine lenders, and why one BigLaw hospitality leader says hotels are "scared to death."
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June 13, 2025
23andMe Founder's $305M Bid Buys Back Co. In Ch. 11 Sale
With a winning bid of $305 million, a nonprofit controlled by 23andMe founder Anne Wojcicki beat out Regeneron Pharmaceuticals to purchase the bankrupt company's assets, 23andMe announced Friday.
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June 13, 2025
Celsius Founder To Drop Ch. 11 Claims After Prison Sentence
Claims asserted by Alexander Mashinsky, the founder of bankrupt cryptocurrency lender Celsius Networks, and his affiliated entities in the company's Chapter 11 case are being withdrawn and disallowed now that Mashinsky has been sentenced to prison.
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June 13, 2025
ENGlobal OK'd For Ch. 11 Sale And Wind Down Plan
Engineering firm ENGlobal Corp. on Friday confirmed a Chapter 11 plan to wind down following the sale of its business just over three months after it filed for bankruptcy in Texas.
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June 13, 2025
3rd Circ. Won't Rehear Bid To Toss Boy Scouts' Ch. 11 Plan
The Third Circuit declined to hold a panel or full court rehearing of its May decision to uphold the Boy Scouts of America's Chapter 11 bankruptcy plan in a pair of Friday orders rejecting petitions by two sets of abuse survivors, with the orders implying some judges on the court had supported taking another look.
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June 13, 2025
Jackson Walker, Ex-Judge Facing Class Action Over Romance
A former bankruptcy judge and Jackson Walker LLP have been hit with another lawsuit over the judge's secret romance with a former firm partner, this time a proposed class action from a group of bondholders of financial company GWG Holdings Inc.
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June 12, 2025
Fla. Doc Sues In Del. Alleging Multistate Group Conspiracy
A Florida doctor and emergency room companies serving departments in Texas, Florida and Oklahoma have sued multiple entities in Delaware's Court of Chancery allegedly involved in an elaborate private equity-tied scheme to duck bans on the corporate practice of medicine.
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June 12, 2025
23andMe Ombudsman Not Confident Sale Is Lawful
The privacy expert probing 23andMe's proposed sale of customers' genetic data in bankruptcy told a Missouri federal judge Wednesday that he couldn't determine the deal wouldn't violate state privacy laws and recommended the company be required to obtain consent from its customers before handing over the data.
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June 12, 2025
Ch. 11 Creditors Seek Sanctions In $57M Conn. Mortgage Feud
An unsecured-creditor committee has asked a Connecticut federal bankruptcy judge to sanction a successor to an entity that lent $57 million to the bankrupt real estate and building companies behind a luxury Newtown apartment complex, saying the successor hasn't provided details about the mortgage or several reserves earmarked within it.
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June 12, 2025
3rd Circ. Will Reconsider Shipbuilder's Ch. 11 Reopening Bid
The Third Circuit said Thursday that it will reconsider whether to reopen Congoleum Corp.'s 2003 Chapter 11 bankruptcy so the bankruptcy court, not a district court, can say whether Congoleum affiliate Bath Iron Works should share liability for cleaning up a polluted New Jersey river.
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June 12, 2025
Fla.-Based Med Spa Chain Files For Ch. 11 After Expansion
Contour Spa LLC, a Florida-based chain of fat-burning med spas, filed for Chapter 11 protection after a rapid expansion and a sprawling and decentralized operational system led to financial challenges that ate into revenues.
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June 12, 2025
Philly Suburb Retirees Sue Ch. 9 Receiver Over Asset Sale
A committee of retired city employees sued the Chapter 9 receiver overseeing the city of Chester, Pennsylvania's municipal bankruptcy, arguing that by requiring water system assets be sold to a publicly owned entity, the receiver is forgoing private bids that could generate an extra $270 million for the city's creditors.
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June 12, 2025
Reed Smith Pushes For 2nd Circ. Stay In $102M Award Fight
Still seeking to represent prebankruptcy owners of international shipping company Eletson Holdings Inc., Reed Smith LLP has asked the Second Circuit to stay a bankruptcy proceeding and a district court action, arguing the reorganized Eletson, now allegedly under common control with a former adversary, has launched a "calculated effort" to seize the company's privileged client information.
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June 12, 2025
Kirkland & Ellis Adds Former Ropes & Gray Deals Atty In NY
Kirkland & Ellis LLP said Wednesday it has welcomed a corporate partner from Ropes & Gray LLP to its New York office, touting her experience with major deals in sectors such as financial services, software, healthcare, industrials, consumer products and retail.
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June 12, 2025
Pa. Panel Says Borough Didn't Break Law In Condemning Mall
A Pennsylvania appellate panel affirmed a decision backing the borough of West Mifflin's condemnation of a local mall, rejecting the property owner's argument that its due process rights were violated.
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June 11, 2025
23andMe Shows Need For National DNA Data Law, Sens. Hear
Senators from both sides of the aisle expressed interest in passing national consumer data privacy legislation during a Wednesday committee hearing inspired by 23andMe Inc.'s Chapter 11 bankruptcy.
Expert Analysis
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Series
Law School's Missed Lessons: Mastering Discovery
The discovery process and the rules that govern it are often absent from law school curricula, but developing a solid grasp of the particulars can give any new attorney a leg up in their practice, says Jordan Davies at Knowles Gallant.
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Series
Playing Guitar Makes Me A Better Lawyer
Being a lawyer not only requires logic and hard work, but also belief, emotion, situational awareness and lots of natural energy — playing guitar enhances all of these qualities, increasing my capacity to do my best work, says Kosta Stojilkovic at Wilkinson Stekloff.
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Crisis Management Lessons From The Parenting Playbook
The parenting skills we use to help our kids through challenges — like rehearsing for stressful situations, modeling confidence and taking time to reset our emotions — can also teach us the fundamentals of leading clients through a corporate crisis, say Deborah Solmor at the Wisconsin Alumni Research Foundation and Cara Peterman at Alston & Bird.
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Immunity Waiver Ruling A Setback For Ch. 7 Trustees
While governmental units should welcome the U.S. Supreme Court's recent decision in U.S. v. Miller restricting the reach of the Bankruptcy Code's sovereign immunity waiver, Chapter 7 trustees now have a limited ability to maximize bankruptcy estates, says Dan Prieto at Jones Day.
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Series
Adapting To Private Practice: From NY Fed To BigLaw
While the move to private practice brings a learning curve, it also brings chances to learn new skills and grow your network, requiring a clear understanding of how your skills can complement and contribute to a firm's existing practice, and where you can add new value, says Meghann Donahue at Covington.
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Top 3 Litigation Finance Deal-Killers, And How To Avoid Them
Like all transactions, litigation finance deals can sometimes collapse, but understanding the most common reasons for failure, including a lack of trust or a misunderstanding of deal terms, can help both parties avoid problems, say Rebecca Berrebi at Avenue 33 and Boris Ziser at Schulte Roth.
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How Attys Can Use A Therapy Model To Help Triggered Clients
Attorneys can lean on key principles from a psychotherapeutic paradigm known as the "Internal Family Systems" model to help manage triggered clients and get settlement negotiations back on track, says Jennifer Gibbs at Zelle.
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3 Steps For In-House Counsel To Assess Litigation Claims
Before a potential economic downturn, in-house attorneys should investigate whether their company is sitting on hidden litigation claims that could unlock large recoveries to help the business withstand tough times, says Will Burgess at Hilgers Graben.
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Negotiating Triparty Hotel Agreements To Withstand Risk
Brewing economic uncertainty in the hospitality industry underscores the importance of subordination, nondisturbance and attornment agreements, and hotel managers should tightly negotiate these agreements to ensure remedies will not disturb key rights, say attorneys at Sidley.
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J&J's Failed 3rd Try Casts Doubt On Use Of 'Texas Two-Step'
A Texas bankruptcy court recently rejected Johnson & Johnson's third attempt to use Chapter 11 to resolve liabilities from allegations of injuries from using talcum powder, suggesting that the U.S. Supreme Court's limitations on nondebtor releases, from 2024's Purdue Pharma ruling, may prove difficult to evade, say attorneys at Cadwalader.
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Series
Teaching College Students Makes Me A Better Lawyer
Serving as an adjunct college professor has taught me the importance of building rapport, communicating effectively, and persuading individuals to critically analyze the difference between what they think and what they know — principles that have helped to improve my practice of law, says Sheria Clarke at Nelson Mullins.
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Series
Adapting To Private Practice: From DOJ Enviro To Mid-Law
Practitioners leaving a longtime government role for private practice — as when I departed the U.S. Department of Justice’s environmental enforcement division — should prioritize finding a firm that shares their principles, values their experience and will invest in their transition, says John Cruden at Beveridge & Diamond.
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Addressing D&O Allocation Questions Amid Shifting Economy
As increasing global insolvency this year may lead to an increase in directors and officers insurance claims, businesses should review their policies' allocation provisions to avoid negotiating how coverage will apply to covered and uncovered claims during a suit, say attorneys at Reed Smith.
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Legal Ethics Considerations For Law Firm Pro Bono Deals
If a law firm enters into a pro bono deal with the Trump administration in exchange for avoiding or removing an executive order, it has an ethical obligation to create a written settlement agreement with specific terms, which would mitigate some potential conflict of interest problems, says Andrew Altschul at Buchanan Angeli.
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Cannabis Deregulation Raises Bankruptcy Access Questions
Attorneys at Thompson Coburn explore why cannabis companies have been historically prohibited from filing for bankruptcy, certain exceptions to the general rule, and the potential effects of federal deregulation on such companies' bankruptcy eligibility.