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Bankruptcy
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April 01, 2025
Talc Claimants Tell 3rd Circ. Whittaker Couldn't File Ch. 11
Talc injury claimants on Tuesday asked the Third Circuit to dismiss Whittaker Clark & Daniels' Chapter 11 case, saying a South Carolina state judge had given control of the talc supplier to a receiver six weeks before the company filed for bankruptcy.
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April 01, 2025
Ariz. Developer, Son Charged In $280M Sports Park Fraud
An Arizona developer and his son tricked bondholders into investing $280 million in a Phoenix-area youth sports park by falsely promising "100% occupancy prior to breaking ground" in part via the use of forged documents, federal prosecutors in Manhattan charged Tuesday.
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March 31, 2025
Hooters Hits Ch. 11 With Plans For Restaurant Sales
Restaurant chain Hooters filed for Chapter 11 protection in a Texas bankruptcy court late Monday with about $380 million in debt, saying it has reached a deal to shed its company-owned restaurants and trade debt for equity.
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March 31, 2025
J&J Talc Spinoff's Ch. 11 Case Gets Tossed, Erasing $9B Deal
A Texas bankruptcy judge rejected Johnson & Johnson's third attempt to use Chapter 11 to settle thousands of claims that its products caused cancer, dismissing J&J unit Red River Talc's Chapter 11 case on Monday and throwing out a roughly $9 billion bankruptcy deal over issues with the company's voting procedures and third-party releases.
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March 31, 2025
Costa Rica Dodges Bankrupt Telecom Co.'s $25M Claim
A bankrupt telecommunications company owner's $25 million arbitration against Costa Rica has been discontinued after the owner failed to show he could deposit and maintain a surety bond to secure the costs of the proceedings, according to the country's counsel.
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March 31, 2025
FTC Chair Flags Data Risks In 23andMe Bankruptcy
The Federal Trade Commission has added to the swell of privacy and security concerns surrounding the potential sale of sensitive consumer information swept up in the 23andMe bankruptcy, with the agency's Republican chair on Monday stressing the importance of data continuing to be protected in the way that users have been promised.
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March 31, 2025
Carlton Fields Faces DQ Bid In $500M Miss America Suit
Carlton Fields faces a disqualification bid for allegedly having a conflict of interest in a $500 million lawsuit regarding the ownership of the company that runs the Miss America pageant.
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March 31, 2025
Feds Seek 10 Years For Ex-Girardi CFO's 'Brazen' Crimes
Los Angeles federal prosecutors said Girardi Keese's former head of accounting should spend 10 years in prison after pleading guilty to assisting Tom Girardi in siphoning clients' settlement funds and what the government called a "brazen" side fraud to steal from the firm's operating accounts.
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March 31, 2025
Calif. Pot Co. Seeks Receivership, Blames Merger 'Disaster'
A cannabis producer in California has moved to enter receivership in state court, disclosing more than $173 million in liabilities and saying a 2023 merger with its parent company proved to be a "financial disaster."
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March 31, 2025
Aspiration Partners Hits Ch. 11 After Founder's Fraud Arrest
Sustainability-focused financial services company Aspiration Partners Inc. filed for Chapter 11 protection in Delaware, less than a month after founder Joseph Sanberg was arrested and hit with federal fraud charges.
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March 31, 2025
Dolphin Visit Co. Files For Ch. 11 With Debt Over $100M
Ejecutivos de Turismo Sustentable SA de CV, a business related to park and dolphin habitat operator The Dolphin Company, filed for bankruptcy Monday in Delaware with 14 affiliates and cited over $100 million in debt.
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March 31, 2025
Heritage Coal Files For Ch. 11, Alleging Ex-Owner Sabotage
Heritage Coal and its owner KTRV have both filed for Chapter 11 protection in Delaware, saying Heritage's owner prior to KTRV has asserted ownership over the debtors' assets and taken steps to sabotage and vandalize the debtors' mining equipment.
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March 28, 2025
TSI Ch. 7 Trustee Opposes Firm's Withdrawal From The Case
The Chapter 7 trustee for the Teams Systems International estate is opposing the withdrawal of law firm Cross & Simon from representing the defunct company and its principals in an adversary action alleging the misappropriation of some $14 million of funds in the years leading up to the bankruptcy, arguing it will leave the defendants without counsel with multiple matters pending.
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March 28, 2025
Purdue Lawsuit Injunction Extended Ahead Of Plan Hearings
Bankrupt drugmaker Purdue Pharma LP received a further extension of a bar on litigation against the company and its owners in the Sackler family as the debtor pursues a late May approval of a disclosure statement describing a Chapter 11 plan premised on a $7.4 billion settlement of opioid claims.
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March 28, 2025
Chinese Pool Parts Supplier Can't Undo False Ads Verdict
A Chinese pool parts supplier can't reverse a jury verdict for false advertising and deceptive business practices, a North Carolina federal judge has said, finding the company tried to bring new arguments that weren't raised at trial.
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March 28, 2025
Ex-Director Of DOJ's Bankruptcy Watchdog Appeals Removal
The former director of the Department of Justice's U.S. Trustee Program, which oversees bankruptcy proceedings, has filed an appeal of her termination, saying it was without cause and violated her due process rights, according to documents obtained by Law360 on Friday
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March 28, 2025
Azzur Judge OKs At Least $1.3M In Potential Exec Bonuses
A Delaware bankruptcy judge on Friday approved Azzur Group Holdings LLC's plan to award company executives at least $1.3 million if a Chapter 11 sale yields at least $56 million in proceeds, over the objection of the U.S. Trustee's Office, which flagged a potential conflict of interest for an independent manager.
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March 28, 2025
NYC Margaritaville Ch. 11 Plan OK'd After Buffett Hit Played
A New York bankruptcy judge on Friday confirmed the Chapter 11 plan of the developer of the Margaritaville resort in Times Square, as he played the resort's namesake song during a hearing.
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March 28, 2025
3rd Circ. Preview: April Arguments Feature Class Action Rows
The Third Circuit's April argument lineup springs into action with securities litigation brought by Walmart investors claiming they were misled about the government's opioid investigation into the company, and a bid to upend an attorney fee award stemming from the settlement of data breach litigation against convenience store chain Wawa.
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March 28, 2025
FTX Sitting On $11.4B In Cash To Distribute To Creditors
FTX has $11.4 billion in funds ready to be handed out to creditors, but it still has much work to do to sort out the massive number of claims asserted against the collapsed cryptocurrency exchange, an attorney for the company told a Delaware bankruptcy judge Friday.
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March 27, 2025
Diocese Creditors Gain Access To Abuse Claim Data In Ch. 11
Creditors of the Archdiocese of San Francisco will have access to records of the archdiocese's independent review board after a California bankruptcy judge said production of the documents serve a valid purpose in its Chapter 11 case.
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March 27, 2025
Barretts Mediator Feinberg Blames Committee For Impasse
The mediator in the bankruptcy of talc miner Barretts Minerals Inc. has told a Texas bankruptcy court that Chapter 11 plan talks reached an impasse, saying the unsecured creditors in the case have not shown an "ability or willingness to engage."
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March 27, 2025
Guo Trustee Settles Clawbacks From Versace, Firms
The Chapter 11 trustee handling convicted Chinese exile Miles Guo's estate has asked a Connecticut bankruptcy judge to approve 10 clawback settlements with Hodgson Russ LLP, BakerHostetler, luxury retailer Versace and others, ending claims totaling $8.6 million but keeping the terms under wraps for six months.
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March 27, 2025
Pa. Coal Co. Gets OK For $23.5M Asset Sale In Ch. 11
A Pennsylvania bankruptcy judge on Thursday approved the sale of assets of bankrupt Corsa Coal Corp. for $23.5 million, overriding arguments against including litigation claims in the sale and for earmarking proceeds for environmental cleanup.
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March 27, 2025
Eletson, Levona Ask 2nd Circ. To Not Delay Atty Removal
The new owners of reorganized international shipping group Eletson and a creditor-turned-affiliate have urged the Second Circuit to nix Reed Smith LLP's emergency motion for a stay in a lawsuit seeking to enforce a $102 million arbitral award, as the law firm fights to continue representing the shipping company's pre-bankruptcy shareholders.
Expert Analysis
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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Series
Being A Navy Reservist Makes Me A Better Lawyer
Serving this country in uniform has not only been one of the greatest honors of my life, but it has also provided me with opportunities to broaden my legal acumen and interpersonal skills in ways that have indelibly contributed to my civilian practice, says Phillip Smith at Weinberg Wheeler.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Strategic Checklist For Bankruptcy Motion Objections
Excerpt from Practical Guidance
Hewing to a set of best practices for objecting to a motion in bankruptcy cases can help creditors’ counsel stay on track as they juggle deadlines and jurisdictions, determine whether filing will help or harm the client, and negotiate with the debtor.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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The 3rd-Party Bankruptcy Release Landscape After Purdue
In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Bankruptcy Decision Exemplifies Venue Issue For Franchisees
A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.