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Bankruptcy
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April 07, 2025
Girardi Hearing On Prison Option Pushed To May
A hearing to discuss whether disbarred attorney Tom Girardi should serve any sentence in prison or be committed to a care facility due to his dementia diagnosis was pushed back to May to accommodate scheduling for witnesses.
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April 07, 2025
Brown Rudnick Inks $8M Deal With Guo Ch. 11 Trustee
Brown Rudnick LLP has agreed to pay nearly $8 million in a deal with the trustee overseeing Chinese exile Miles Guo's Chapter 11 case in Connecticut to settle potential claims tied to the law firm's onetime work for the convicted fraudster.
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April 07, 2025
Spirit Airlines CEO Departs After Ch. 11 Exit
The CEO of budget air carrier Spirit Airlines LLC has resigned following the company's completion of its bankruptcy, the company announced Monday.
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April 04, 2025
4th Circ. Rules Ch. 7 Debtor On The Hook For Mortgage Bill
The Fourth Circuit on Friday revived class claims by a Chapter 7 debtor who received a collection letter over a defaulted mortgage, saying the debtor still has obligations to pay the mortgage lender, partially overturning a West Virginia district court's decision.
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April 04, 2025
Defamation Litigation Roundup: Jay-Z, Blake Lively, Drake
In this month's review of ongoing defamation fights, Law360 looks back on an escalation in Jay-Z's case against personal injury lawyer Tony Buzbee, who he accuses of pursuing a "false" and "malicious" rape suit, as well as on the war of words between actors Justin Baldoni and Blake Lively.
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April 04, 2025
Azzur Creditors Call $61M DIP Rollup Excessive
The unsecured creditors of Azzur Group urged a Delaware bankruptcy judge Friday to reject a proposed $84.5 million Chapter 11 financing package, saying far too much of it is a rollup of the biotech consulting firm's pre-bankruptcy debt.
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April 04, 2025
Trevor Milton Wants Nikola Corp. Ch. 11 Subpoena Quashed
Recently pardoned Nikola Corp. founder Trevor Milton asked a Delaware bankruptcy judge to reject a subpoena seeking documents from an arbitration between the former CEO and embattled electric-vehicle maker.
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April 04, 2025
Guo Trustee Properly Obtained Yacht And $37M, 2nd Circ. Told
The Second Circuit should affirm rulings that drew a $37 million escrow fund and a $23 million yacht into Chinese exile Miles Guo's Connecticut bankruptcy estate, his Chapter 11 trustee has argued, asking the appellate court to uphold multiple prior rulings in his favor.
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April 04, 2025
NY Youth Welfare Org Snags $9M Real Estate Bid In Ch. 11
Bankrupt youth mental health provider St. Christopher's Inc. is asking a New York bankruptcy court to approve the private sale of a 22.1 acre property for $9 million.
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April 03, 2025
Ex-SunEdison Exec Gets 'Historic' $34.5M Deal In SOX Case
A former SunEdison Inc. executive scored a record-breaking $34.5 million settlement with SunEdison-sponsored yieldcos he once ran following a nearly decadelong legal battle and a finding that he was fired as retaliation in violation of the Sarbanes-Oxley Act for highlighting potential securities laws violations, his Hinckley Allen attorneys announced Thursday.
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April 03, 2025
Ex-Judge, Profs Ask Justices To Weigh 9th Circ. Ch. 7 Ruling
A former bankruptcy judge and five law professors have asked the U.S. Supreme Court to review a Ninth Circuit opinion protecting the state of Montana from a real estate mogul and Montana ski resort founder's bid for damages over an involuntary Chapter 7 the state initiated.
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April 03, 2025
Loyalty Platform Kognitiv Hits Ch. 11 With Over $10M In Debt
Customer loyalty platform Kognitiv US LLC filed for Chapter 11 on Wednesday in Delaware bankruptcy court, citing more than $10 million in liabilities with a plan to sell its assets to another loyalty platform.
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April 03, 2025
US Trustee Wants Jackson Walker Cases In District Court
The U.S. Trustee's Office has renewed its call for a district court trial over whether Jackson Walker LLP should return millions in fees for failing to disclose an ex-partner's romance with a bankruptcy judge, saying all the questions in the case should be tried in one venue.
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April 03, 2025
Franchise Group, Lenders Clash Over Control Of Ch. 11 Case
A Delaware bankruptcy judge said Thursday she would soon decide whether retail-chain owner Franchise Group Inc. can keep exclusive control over its efforts to confirm a reorganization deal, as a group of lenders that considers the debtor's Chapter 11 plan "unconfirmable" works to intervene in the process.
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April 03, 2025
Reed Smith Wants To Pull Out Of Eletson Ch. 11
An attorney from Reed Smith LLP asked a New York bankruptcy judge Thursday to let the firm withdraw its representation of one of two parties vying to control international shipping group Eletson Holdings, noting that opposing counsel has urged it for months to exit the case.
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April 02, 2025
Hooters Can Tap $5M Of Its $40M In Proposed Ch. 11 Loans
Bankrupt restaurant chain Hooters of America LLC can access $5 million in interim financing from a $40 million debtor-in-possession package from its prepetition lenders as it transitions to a franchise-only model, a Texas bankruptcy judge said Wednesday.
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April 02, 2025
Aspiration Partners Gets Interim OK For Ch. 11 Financing
Sustainability-focused financial services provider Aspiration Partners Inc. on Wednesday secured the Delaware bankruptcy court's interim approval to tap $2.2 million of an $18 million Chapter 11 financing facility as the company looks for a buyer, following its co-founder's arrest last month on federal fraud charges.
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April 02, 2025
PE Firm TPG Wants Endo Trust's Transfer Suit Tossed
Private equity firm TPG Capital is seeking the dismissal of a lawsuit that aims to claw back billions of dollars reaped in an allegedly unfair deal with Endo International PLC before the drugmaker went bankrupt.
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April 02, 2025
9th Circ. Doubts Bang Energy Founder's $272M Verdict Appeal
A Ninth Circuit panel expressed skepticism Wednesday about an attempt to undo Monster Beverage Corp.'s $272 million false advertising trial win against the founder of Vital Pharmaceuticals Inc., the now-defunct company behind Bang Energy drinks.
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April 02, 2025
Baltimore Diocese Abuse Claimants Sue Over Immunity Bid
Childhood sex abuse claimants are suing the bankrupt Archdiocese of Baltimore in a bid to stop the Catholic organization from using a charitable immunity defense to avoid paying claims that aren't covered by the debtor's insurance, urging a Maryland federal judge to declare that the defense isn't available in the bankruptcy case.
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April 02, 2025
Chester, Pa., Ch. 9 Document Dispute Won't Wait For Appeal
A Pennsylvania bankruptcy judge on Wednesday scuttled a request from the Chester Water Authority for a stay pending appeal of an order to produce documents to the bankrupt city of Chester, saying the utility hadn't shown the order should be frozen.
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April 01, 2025
CarePoint's Bankruptcy Plan Needs Changes, Judge Says
A Delaware bankruptcy judge determined on Tuesday that more work is needed on the Chapter 11 plan from New Jersey hospital operator CarePoint that would have handed control of the health system's medical facilities to one of its creditors, finding the debtor must address another creditor's claim that its collateral has diminished in value.
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April 01, 2025
Heritage Coal OK To Use Lender Cash Amid Settlement Effort
A Delaware bankruptcy judge on Tuesday approved Heritage Coal owner KTRV's bid to continue using cash to support its operations as the company works to strike a settlement with secured lender Bedrock Industries.
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April 01, 2025
InterCement Gets Ch. 15 Recognition Of Brazil Restructuring
A New York bankruptcy judge on Tuesday recognized cement supplier InterCement's reorganization efforts in Brazil, overruling an objection from an ad hoc group of New York noteholders that said a subsidiary's restructuring belonged in the Netherlands.
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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.
Expert Analysis
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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2 Options For Sackler Family After High Court Purdue Ruling
After the U.S. Supreme Court recently blocked Purdue Pharma's plan to shield the family that owns the company from bankruptcy lawsuits, the Sacklers face the choice to either continue litigation, or return to the bargaining table for a settlement that doesn't eliminate creditor claims, says Gregory Germain at Syracuse University.
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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Revisiting Scalia's 'What's It To You?' After Kaiser Ruling
While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.
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Series
Florida Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 brought two notable bills that will affect Florida's banking and finance community across many issues, including virtual currency abandonment, cancellation of financial services on the basis of political opinions, and the exemption amount of motor vehicles, say Joshua Prever and Andrew Balthazor at Holland & Knight.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Opinion
Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.
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Roundup
After Chevron
Since the U.S. Supreme Court overturned the Chevron deference standard in June, this Expert Analysis series has featured attorneys discussing the potential impact across 37 different rulemaking and litigation areas.
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Opinion
Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan
The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.
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Contract Disputes Recap: Addressing Dispositive Motions
Stephanie Magnell and Bret Marfut at Seyfarth examine three recent decisions from the U.S. Court of Claims and the U.S. Civilian Board of Contract Appeals that provide interesting takeaways about the nuances of motion practice utilized by the government to dispose of cases brought under the Contract Disputes Act prior to substantive litigation
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Series
Skiing And Surfing Make Me A Better Lawyer
The skills I’ve learned while riding waves in the ocean and slopes in the mountains have translated to my legal career — developing strong mentor relationships, remaining calm in difficult situations, and being prepared and able to move to a backup plan when needed, says Brian Claassen at Knobbe Martens.