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Bankruptcy
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May 19, 2025
Manhattan Private School Files Ch. 11 On Verge Of Closure
Not-for-profit New York City private school Manhattan Country School has filed for Chapter 11 protection in a New York bankruptcy court with more than $27.4 million in debt, saying it's insolvent and on the verge of closing its doors.
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May 16, 2025
Real Estate Recap: Gold Card, Hospitality, Revolving Door
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including attorney insights into the "Gold Card" visa program, the hospitality sector's reaction to tariffs, and the path from in-house attorney to private practice.
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May 16, 2025
Bank Balks At Nostrum Ch. 11 Sale Over Drug Disposal Issue
Waterford Bank NA has objected to New Jersey drugmaker Nostrum Laboratories Inc.'s plan to sell an Ohio property, saying the bank doesn't want to be left to pay for the disposal of large quantities of controlled substances left at the site, an issue the parties are now negotiating ahead of a hearing next week.
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May 16, 2025
Oregon Distillery Seeks Ch. 11 Loan To Reassure Vendors
Citing an emergency need for a shot of cash, an insolvent Oregon whiskey distiller sought a Delaware bankruptcy judge's approval for an up-to $1.55 million Chapter 11 loan in part to assure vendors that it will continue business through its reorganization and after exit.
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May 16, 2025
Feds Want Ex-McKinsey Exec To Serve Time For Obstruction
Prosecutors urged a Virginia federal judge Thursday to sentence a disbarred, former senior McKinsey & Co. partner to one year in prison for obstructing an investigation into the consulting giant's work with opioid-manufacturer Purdue Pharma, while defense counsel pushed for probation so that he can return to his home in Thailand.
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May 16, 2025
Rite Aid Announces Deals To Transfer Pharmacy Assets
Rite Aid Corp. has entered into sale and transition agreements subject to approval from a New Jersey bankruptcy judge that would see pharmacy assets and services transition to new operators, according to an announcement from the company.
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May 16, 2025
Canadian Geothermal Co. STS Hits Ch. 15 With Sale Plan
Toronto-based geothermal energy company STS Renewables Ltd. and affiliates have filed for Chapter 15 protection in Delaware bankruptcy court seeking recognition of a Canadian insolvency proceeding designed to help the company sell its assets.
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May 16, 2025
Porzio Bromberg Accused Of Pushing Doctor Into Bankruptcy
A Louisiana doctor claims a New Jersey law firm and one of its principals failed in their representation of him in a deal he wasn't fully informed of and which led to an involuntary bankruptcy, according to a complaint recently removed to federal court in Louisiana.
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May 16, 2025
Jackson Walker Criticizes JC Penney Fee Suit As 'Money Grab'
Jackson Walker LLP wants out of a fee suit brought by former client J.C. Penney, arguing that the bankrupt department store's wind-down debtors entered claims as a "leverage play and a money grab" after learning that a firm partner had engaged in a yearslong undisclosed relationship with a Texas bankruptcy judge.
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May 16, 2025
Milbank Lands Ex-Assistant To Solicitor General In DC
Milbank LLP has hired Colleen Roh Sinzdak, a former assistant to the U.S. solicitor general, as a partner in the firm's Washington, D.C., office.
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May 15, 2025
Ex-CEO Cops To Conspiracy Charge In $212M Fraud Case
A New Jersey-based former CEO of a medical billing company has pled guilty to conspiring to commit securities fraud in connection with government claims he was part of a $212.5 million scheme to inflate the value of his company to defraud potential investors in a go-private transaction.
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May 15, 2025
Troutman Adds K&L Gates CMBS Partner In NC
Troutman Pepper Locke LLP announced it has hired Christopher J. Fernandez from K&L Gates LLP as a partner in its bankruptcy and restructuring practice group in Charlotte, North Carolina.
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May 15, 2025
Ex-Eletson Board Facing Fees In Ch. 11 Fight
A New York bankruptcy judge Thursday said international shipping group Eletson Holdings can collect legal fees for its long-running fight against former board members and that he would consider new sanctions against parties Eletson says are interfering with its Chapter 11 plan.
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May 15, 2025
Battery Recycler Cites 'Green' Funding Uncertainties In Ch. 15
Lithium battery recycler Li-Cycle asked a New York bankruptcy judge to recognize its Canadian insolvency, saying the current political climate has made investors wary of infusing money needed to tap a $475 million U.S. federal loan.
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May 15, 2025
Genesis Fights Jefferies Bid To Be Paid In Bitcoin Over USD
Failed cryptocurrency lender Genesis Global has asked a New York bankruptcy judge to throw out investment bank Jefferies' request for an order forcing the wind-down debtor to take back money it paid Jefferies and instead reimburse it in bitcoin, arguing it's too late for the bank to amend a claim that was filed "solely in dollars."
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May 14, 2025
Tripwire Moves To End Explosives Suit Over Licensing Issues
Tripwire South, its affiliate Tripwire Aviation and executive Ryan Morris urged a Pennsylvania federal court to dismiss Bizzell Corp.'s fraud and contract claims, arguing Bizzell's failure to obtain proper government licenses made delivery of military-grade explosives legally impossible.
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May 14, 2025
Alex Jones Can't Duck $1B Sandy Hook Payout During Appeal
Infowars host Alex Jones cannot avoid a $1.3 billion defamation judgment favoring the victims of the Sandy Hook Elementary massacre while he crafts an appeal to the U.S. Supreme Court in the hopes it accepts his final challenge to the record-breaking verdict, a Connecticut appeals court has ruled.
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May 14, 2025
Judge Rejects DQ Of Smith Gambrell In Defamation Suit
A New York federal judge denied a former Major Lindsey & Africa recruiter's bid to disqualify Smith Gambrell from representing Major Lindsey in the employee's $75 million federal defamation suit, saying the request wasn't ripe for consideration yet.
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May 14, 2025
Grant & Eisenhofer Exits Tech Co. Ch. 11 After Watchdog Balk
Insolvent technology firm AgileThought's special litigation counsel, Grant & Eisenhofer, said it was withdrawing from representing the debtor after the U.S. Trustee objected to a plan to have the firm also represent AgileThought's prepetition lender and the buyer of its assets, Blue Torch Finance LLC.
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May 14, 2025
Reed Smith Can't Duck Out Of Eletson Ch. 11, Judge Says
A New York bankruptcy judge has rejected Reed Smith LLP's effort to withdraw its representation of one of the parties vying for control of international shipping group Eletson Holdings, ruling the law firm's bid to end its apparently limited work for the company's pre-Chapter 11 shareholders while still counseling them in related matters was improper.
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May 14, 2025
A&O Shearman Adds Ex-Schulte Roth Restructuring Atty
A&O Shearman has added a restructuring attorney previously with Schulte Roth & Zabel LLP as a partner in New York, the firm announced Wednesday.
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May 13, 2025
Crypto Platform's Ex-Brass Plead Guilty To $150M Fraud
Two former executives behind bankrupt cryptocurrency investment platform Cred Inc. pled guilty Tuesday in California federal court to conspiracy to commit wire fraud, admitting they gave customers "an unreasonably positive" portrayal of the business ahead of a collapse that prosecutors say wiped out up to $150 million in customer crypto.
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May 13, 2025
Magistrate Judge Cuts Defendants In J&J Talc Unit Fraud Suit
A New Jersey magistrate judge on Tuesday dropped a collection of defendants from a class action brought by cancer patients alleging that Johnson & Johnson's maneuvers to settle thousands of tort claims through Chapter 11 involved fraud.
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May 13, 2025
Hooters Can Tap Full $40M DIP In Chapter 11
Restaurant chain Hooters can tap the last $30 million of its $40 million Chapter 11 debtor-in-possession loan after it agreed to escrow disputed royalty revenue to quell a creditor's objection during a Tuesday hearing in a Texas bankruptcy court.
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May 13, 2025
Boeing Slams Defunct Airline's Sanctions Bid In 737 Max Spat
Boeing has fired back at defunct airline Comair's bid to get the major American aerospace company sanctioned for deleting evidence of a side letter that purportedly assured Comair that its deposit for the purchase of 737 Max jets was refundable, telling a Washington federal court that no such assurances were made in the nonexistent letter.
Expert Analysis
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Banking Compliance Takeaways From Joint Agency Statement
Federal bank regulatory agencies’ recent joint statement warning of risks associated with third-party fintech deposit services spotlights a fundamental problem that may arise with bank deposit products that are made through increasingly complex customer relationships, says Tom Witherspoon at Stinson.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Crypto Gatekeepers May Be The Next Front Of Enforcement
Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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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.