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Bankruptcy
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May 23, 2025
Battery Co. Li-Cycle Gets Ch. 15 Nod Amid Glencore Sale Bid
A New York bankruptcy judge on Friday granted Chapter 15 recognition to lithium battery recycler Li-Cycle and affiliates after overruling an objection from the U.S. Trustee's Office, as the Toronto-based debtor looks to sell its business and secure new funding.
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May 22, 2025
'Circular Firing Squad' Is Stalling Romance Case, Judge Says
A Texas federal judge told Jackson Walker LLP and Kirkland & Ellis LLP that they were stuck in a "circular firing squad" in a debate over whether the former CEO of a defunct barge company could sue the firms over a former bankruptcy judge's secret romance with an attorney.
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May 22, 2025
Senators Unveil DNA Privacy Bill Amid 23andMe's Ch. 11 Sale
A bipartisan group of U.S. senators on Thursday introduced a bill designed to safeguard customers' genetic information in bankruptcy cases, saying 23andMe's plan to sell users' DNA data to a pharmaceutical company during its Chapter 11 raises new concerns surrounding consumer privacy.
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May 22, 2025
5th Circ. Revives 'Unclean Hands' Defense In Ch. 13
A Louisiana homeowner can head back to bankruptcy court to try to discharge a $75,000 judgment against him from a contractor who said it was stiffed, a panel of the U.S. Court of Appeals for the Fifth Circuit has ruled.
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May 22, 2025
Servicer, BNY Seek Exit From Mortgage Statement Suit
Bank of New York Mellon and a mortgage servicing company have urged a Massachusetts federal court to permanently dismiss a proposed class action accusing them of trying to collect on post-bankruptcy liens, saying federal lending law does not obligate servicers to send mortgage statements to borrowers.
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May 22, 2025
New Orleans Archdiocese Strikes $179M Abuse Deal
The committee representing sexual abuse claimants in the Chapter 11 case of the Roman Catholic Archdiocese of New Orleans that began five years ago has announced it reached a roughly $179 million settlement of hundreds of abuse claims.
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May 22, 2025
Silvergate Estate To Chip In For $37.5M Investor Settlement
Silvergate Capital and investors suing over its collapse have reached a $37.5 million deal with a "rare" source of partial funding to resolve claims that the failed crypto-focused bank misrepresented its safeguards against onboarding customers like FTX, the fraud-ridden crypto exchange that made up roughly a sixth of the bank's deposit base.
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May 22, 2025
Trustee Alleges Developer Sold Gas Rights To Avoid Creditors
A bankrupt developer sold its oil and gas rights to an affiliated company for only $100 per parcel in order to keep them from becoming part of the bankruptcy estate, the estate's trustee has claimed in an adversary complaint.
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May 22, 2025
US Trustee, Jackson Walker Might Mediate Fee Case
The U.S. Trustee's Office and Jackson Walker LLP told a Texas federal judge Thursday they are open to mediating the watchdog's bid to have the law firm forfeit fees from more than 30 cases overseen by a former bankruptcy judge who was romantically involved with a onetime firm partner.
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May 21, 2025
'Tough Luck' Case Law Cited In Refusal To Stop Summons
An Illinois federal judge on Tuesday grudgingly declined to issue an injunction to stop an arbitrator from dragging insurance broker Arthur J. Gallagher & Co. into arbitration stemming from the bankruptcy of Cooks Venture, a startup that specialized in the production and processing of pasture-raised, slow-growth chickens.
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May 21, 2025
Conn. Diocese Ch. 11 Plan Approved With $31M Abuse Fund
A Connecticut bankruptcy judge on Wednesday approved the Chapter 11 plan of the Norwich Roman Catholic Diocese, clearing the way for survivors of childhood sexual abuse at the hands of priests and religious brothers to be compensated through a $31 million settlement fund.
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May 21, 2025
Chancery Orders Nominating Do-Over For Ionic Board Vote
Citing overwhelming trial evidence, a Delaware vice chancellor on Wednesday told bankrupt Celsius Network's Ionic Digital successor to reopen a board nomination window after finding that the company wrongly eliminated one of two director seats ahead of an election in a defensive move targeting dissident candidates.
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May 21, 2025
Vegan Restaurant Chain Planta To Tap $1.75M In DIP Funding
A Delaware bankruptcy judge Wednesday agreed to approve bankrupt vegan restaurant chain Planta's bid to access $1.75 million of its $3.5 million debtor-in-possession financing package, saying it needs funding to continue its efforts toward a sale.
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May 21, 2025
SC Justices Affirm Receivership Order In Asbestos Dispute
The South Carolina Supreme Court on Wednesday unanimously upheld a trial court's decision to appoint a receiver over a Canadian company's insurance assets as part of discovery sanctions in an asbestos injury lawsuit, despite the company's contention it possesses no property in the state.
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May 21, 2025
Rite Aid Cleared To Sell Pharmacy Assets To CVS, Others
A New Jersey bankruptcy judge Wednesday gave drugstore chain Rite Aid the go-ahead to transfer millions of prescriptions and dozens of stores to CVS, Walgreens and other pharmacy businesses in Chapter 11 transactions.
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May 21, 2025
Ex-Atty's Cooperation Deal OK'd In Calif. Debt Firm's Ch. 11
A California bankruptcy judge on Wednesday approved a deal allowing a disbarred attorney accused of operating a fraudulent debt relief law firm to admit wrongdoing and provide information about the firm's collapse to a court-appointed trustee in an effort to recoup money for creditors.
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May 21, 2025
Sheppard Mullin Lands Alston & Bird, Dechert Attys
Sheppard Mullin Richter & Hampton LLP has brought on a former Alston & Bird LLP partner in its Dallas office and a former Dechert LLP partner in its San Francisco office, strengthening the firm's finance and bankruptcy practice and business trial practice.
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May 21, 2025
50 Cent Wants Ch. 11 Reopened To Fight Woman's $20M Suit
A Connecticut bankruptcy judge will review under seal a woman's $20 million New York injury suit against recording artist 50 Cent during an agreed-upon pause in the state court proceeding, helping her decide whether the rapper can use his Chapter 11 case to torpedo the woman's claims.
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May 20, 2025
Crypto Co. Genesis Sues Parent Co. Over $1.2B In Transfers
Genesis Global Capital, a crypto lender that filed for bankruptcy in 2023, is now suing its parent company in bankruptcy court, seeking to recover more than $1.2 billion that the lender says was transferred to insiders while the company was insolvent and headed for Chapter 11.
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May 20, 2025
Creditors Win Fight Against Insider Releases In Azzur Ch. 11
A Delaware bankruptcy judge on Tuesday sustained an objection to insider releases in the Chapter 11 liquidation plan of Azzur Group, finding the pharmaceutical services company had not justified the releases for prepetition conduct of current and former officers, directors, and equity holders.
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May 20, 2025
Franchise Group Says Ch. 11 Plan Cuts $1.5B In Debt
Bankrupt retail franchise owner and operator Franchise Group Inc. told a Delaware judge on Tuesday that its proposed Chapter 11 plan would slash $1.5 billion from its balance sheet while positioning the business to emerge with 1,700 retail locations intact.
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May 20, 2025
Jailed Investor Puts Portfolio In Ch. 11 Ahead Of NY Auction
A group of companies owned by a real estate investor jailed last month for his role in a scheme defrauding Fannie Mae has filed for bankruptcy protection in New Jersey on a portfolio carrying at least $100 million in both assets and debt, ahead of a sheriff's sale in New York set for Tuesday.
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May 20, 2025
Nursing Homes Facing 'Corporate Death Penalty' Owe $15.4M
The companies behind two Pittsburgh-area nursing homes convicted of falsifying staffing records were ordered Tuesday to pay a total of $15.35 million in restitution to the federal government, though the corporations' attorney told the judge that they had already received a "corporate death penalty" for their conviction.
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May 19, 2025
Carrier's Kidde-Fenwal Ch. 11 Deal Barred By Purdue, AGs Say
Connecticut and other states Monday objected to Carrier Global Corp.'s proposed $540 million deal releasing it from "forever chemicals" litigation liability through its ownership of bankrupt firefighting foam manufacturer Kidde-Fenwal Inc., saying the U.S. Supreme Court shot down a similar deal in drugmaker Purdue Pharma LP's bankruptcy case.
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May 19, 2025
Binance Calls FTX Ch. 11 Clawback Suit 'Legally Deficient'
Binance has asked a Delaware bankruptcy judge to dismiss FTX's lawsuit seeking to recover $1.76 billion that was transferred to Binance, accusing the estate of FTX of trying to "shift the blame" for that company's November 2022 collapse.
Expert Analysis
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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.
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Series
Fixing Up Cars Makes Me A Better Lawyer
From problem-solving to patience and adaptability to organization, the skills developed working under the hood of a car directly translate to being a more effective lawyer, says Christopher Mdeway at Kaufman Dolowich.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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Justices May Find Gov't Can Keep Fraudulent Transfer Benefit
Based on the justices' questions at the recently argued U.S. v. Miller, the Supreme Court appears prepared to hold that the U.S. — unlike any other creditor — is permitted to retain the benefits of a fraudulent transfer to the detriment of other bankruptcy creditors, says Kevin Morse at Clark Hill.