Bankruptcy

  • July 27, 2022

    Vet Slams 3M's Bid To Undo $50M Earplug Injury Verdict

    A veteran of the war in Afghanistan is urging a Florida federal judge not to reduce a $50 million verdict or grant a new trial in his suit alleging Combat Arms earplugs made by 3M caused him to develop tinnitus and hearing loss, saying the company is "grasping for straws" with unsupported arguments.

  • July 26, 2022

    Ch. 11 Cheat Sheet: Aearo Technologies

    3M subsidiary Aearo Technologies and its affiliates filed for Chapter 11 bankruptcy in Indiana on July 26 to deal with hundreds of thousands of claims of hearing loss from defects in Combat Arms Earplugs.

  • July 26, 2022

    J&J Unit, Talc Claimants Spar Over Ch. 11 Case's Path

    Attorneys for Johnson & Johnson's bankrupt talc unit and the committee representing talc claimants presented arguments Tuesday in New Jersey court in support of their competing visions for the Chapter 11 case and how to best determine the amount of liability the debtor has related to talc injuries.

  • July 26, 2022

    'Baffling' I'm Not Out Of Prison Yet, Ex-Insys Exec Says

    One of the former Insys executives convicted in an opioid kickback scheme told a Boston federal court that he should be granted compassionate release from prison, saying in a court filing that his continued incarceration is "baffling but not surprising."

  • July 26, 2022

    Kossoff Out Of Time In $4.5M Escrow Row, Court Told

    A Miami real estate company told a New York federal court that the clock has run out on disbarred and incarcerated New York City real estate attorney Mitchell Kossoff's attempts to avoid returning $4.5 million in missing escrow funds, urging an immediate default judgment.

  • July 26, 2022

    Jury Hears $150M Damages Bid As Alex Jones Trial Begins

    Right-wing conspiracy theorist Alex Jones and his company Free Speech Systems should pay $150 million in damages for lying about the 2012 Sandy Hook shooting being a hoax in a crass attempt to drive up product sales, counsel for victims told a Texas jury during opening arguments Tuesday in the defamation case.

  • July 26, 2022

    These Law Firms Have The Most Diverse Equity Partnerships

    While law firms overall continue to take only modest steps toward achieving their long-standing diversity and inclusion goals, some firms are making significant strides and showing that progress is possible even in the uppermost ranks.

  • July 26, 2022

    3M Unit Seeks Ch. 11 Protection To Settle Earplug Claims

    3M said Tuesday it has placed its Aearo Technologies subsidiary into Chapter 11 bankruptcy in Indiana to deal with hundreds of thousands of claims of hearing loss from defects in Aearo's Combat Arms Earplugs.

  • July 25, 2022

    HNA Must Pay $185M Park Ave. Skyscraper Arbitration Award

    A New York federal judge confirmed a $185.4 million arbitral award issued to an affiliate of commercial office space giant SL Green Realty Corp. on Monday, rejecting HNA Group's attempt to challenge the finding of the arbitrator, a former New York appellate judge.

  • July 25, 2022

    J&J Talc Unit, Tort Claimants Clash On Claim Estimation

    Johnson & Johnson's talc unit and a committee of talc tort claimants continued to clash over whether tort claims estimation would speed up or slow down LTL Management's Chapter 11 case, as a New Jersey bankruptcy judge prepares to hear arguments on the issue Tuesday.

  • July 25, 2022

    Testy Tilton Questioned On Taxes, Investing In Fraud Trial

    Distressed debt manager Lynn Tilton defiantly sparred Monday in New York state court with lawyers for a large German bank that accused her of "picking our pocket" to the tune of $45 million, allegedly by using the bank's investment money for unauthorized, risky stock transactions.

  • July 25, 2022

    Catching Up With Delaware's Chancery Court

    On top of two big-name trials and at least three multimillion-dollar settlements, the Delaware Chancery Court got hit with COVID-19 last week. Positive tests forced the court to shift a hearing on expediting Twitter's battle with Elon Musk to Zoom, and a high-profile witness for Oracle initially scheduled to testify at trial is now preparing to do it in virtual mode.

  • July 25, 2022

    Armstrong Flooring Seeks OK Of $1M Ch. 11 Trademark Deal

    Bankrupt Armstrong Flooring Inc. asked a Delaware judge Monday to fast-track approval for a $1 million settlement of a trademark dispute, citing worries that a licensing company's quick appeal from a Friday order to surrender the rights could derail Armstrong Flooring's Chapter 11 sale.

  • July 25, 2022

    Dallas Nursing Home Says It Won't Indemnify Committee Pros

    The operator of Dallas' Edgemere retirement community has asked a Texas bankruptcy judge to reject a request by the unsecured creditors committee in its Chapter 11 case that it indemnify the committee's proposed financial adviser.

  • July 25, 2022

    Voyager Scoffs At FTX's Unsolicited 'Lowball' Ch. 11 Bid

    Bankrupt cryptocurrency platform Voyager Digital responded Sunday to a proposed Chapter 11 plan from FTX.com and Alameda Ventures Ltd., saying it subverts the bankruptcy process while providing a "lowball bid" that seeks to liquidate Voyager's digital assets.

  • July 25, 2022

    Law360's Diversity Snapshot: What You Need To Know

    As many law firms have renewed their commitments to diversity, the task of the past year has been to bring new energy to the work and put those promises into action. Here's our data dive into minority representation at law firms in 2021.

  • July 22, 2022

    Luckin Coffee Investor Attys Nab $30M Fees From $175M Deal

    A New York federal judge awarded $30 million to the attorneys who secured a $175 million cash settlement for a class of investors that sued now-defunct Luckin Coffee Inc. and who alleged the Beijing-based company used "sham transactions" to fake hundreds of millions of dollars in sales.

  • July 22, 2022

    Voyager Wants Quinn Emanuel As Ch. 11 Special Counsel

    Quinn Emanuel Urquhart & Sullivan LLP could join Voyager Digital Holdings Inc.'s Chapter 11 proceedings, with the bankrupt cryptocurrency lender asking a New York federal court to let it employ the firm as special counsel to investigate transactions and potential claims stemming from a defaulted loan to now-defunct hedge fund Three Arrows Capital.

  • July 22, 2022

    FirstEnergy Directors Fight Atty Fees In $180M Settlement

    A group of independent directors appointed to the board of FirstEnergy Corp. in the wake of a $1 billion bribery scandal said in a Thursday court filing that attorneys representing company shareholders shouldn't get to claim a full 27% of a $180 million settlement because they weren't alone in working to improve the company.

  • July 22, 2022

    Trustee For Cred Sues Over $784M Loss In Crypto Venture

    The liquidation trust for bankrupt cryptocurrency investment platform Cred Inc. filed suit Friday against crypto exchange Uphold, saying Cred lost nearly $784 million in a joint venture that Uphold continued to promote and profit from while Cred headed for insolvency.

  • July 22, 2022

    Revlon's $15M Ch. 11 Retention Bonus Plan Approved In NY

    A $15.4 million key employee bonus plan proposed by bankrupt cosmetics giant Revlon Inc. received approval on Friday in New York after a judge there said he was satisfied the payments served a retentive purpose and were only payable to non-insiders of the debtor.

  • July 22, 2022

    Judge Orders Armstrong IP Released To Close Ch. 11 Sales

    A Delaware bankruptcy judge on Friday ordered Armstrong World Industries Inc. to immediately sign over perpetual, royalty-free rights to use of the Armstrong brand for flooring and tile products, allowing bankrupt Armstrong Flooring Inc. to complete $203.3 million in sales of its businesses in North America, China and Australia.

  • July 22, 2022

    NJ Firm Trenk Isabel Adds Bankruptcy Atty, Associate

    Trenk Isabel Siddiqi & Shahdanian PC is continuing to grow its ranks and recently added a partner and an associate who are each coming to the firm with experience from careers outside the legal profession.

  • July 22, 2022

    Ga. Judge Suggests Baker McKenzie DQ In Russian Bank Row

    Baker McKenzie should be disqualified from representing a Russian bank in its loan fraud fight against an agricultural supply business that the law firm had advised on restructuring, a federal magistrate judge in Georgia has recommended.

  • July 22, 2022

    Bankrupt Rig Owner Seeks $2.7M To Shelter From Hurricanes

    The bankrupt owners of a drilling rig asked a Texas bankruptcy judge Thursday for immediate permission to tap into $2.71 million of its cash so it can move the vessel out of Mexican waters to keep it safe during hurricane season.

Expert Analysis

  • Opinion

    Hold Alabama And North Carolina Accountable On Ch. 11 Fees

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    As highlighted in the U.S. Supreme Court’s recent Siegel v. Fitzgerald case, Chapter 11 debtors in Alabama and North Carolina are paying lower quarterly fees than those in the other 48 states, an unconstitutional reality creating harms and costs that must be addressed by the Fourth Circuit, says Donald Swanson at Koley Jessen.

  • 8 Steps To Creating A Legal Ops Technology Road Map

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    Legal departments struggling to find and implement the right technologies for their operations should consider creating a road map that summarizes their approach to technology changes, provides clearly defined metrics for success, and serves as the single source of truth for stakeholders, says Melanie Shafer at SimpleLegal.

  • Awaiting Critical Bankruptcy Decision For Surety Industry

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    The recent oral argument in Argonaut Insurance v. Falcon V offers the Fifth Circuit an opportunity to create a rule for multilateral contracts in bankruptcy and exposed the common misconception that a surety assumes the risk of the principal's nonperformance when it issues a bond, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.

  • The Importance Of Data And Data Analysis In Litigation

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    Understanding, analyzing and effectively presenting large data sets is an increasingly important skill in litigation as it allows plaintiffs to dramatically scale up the scope of cases and is often critical to defeating motions to dismiss and motions for summary judgment, says David Burnett at Motley Rice.

  • Navigating Section 363 As A Decentralized Autonomous Org

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    Decentralized autonomous organizations are all the rage, raising questions on the advantages and disadvantages of coupling them with the Bankruptcy Code’s Section 363 sale process to acquire assets free and clear under the supervision of a bankruptcy court, say attorneys at O’Melveny.

  • Takeaways From 1st Circ.'s Tribal Sovereign Immunity Ruling

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    The First Circuit's recent decision in Coughlin v. Lac du Flambeau, finding that the U.S. Bankruptcy Code unequivocally strips tribes of their sovereign immunity, disregards extensive case law to the contrary and may make it easier for litigants to pursue claims against tribes under laws with similar immunity waivers, say attorneys at Brownstein Hyatt.

  • Turnover Provision Ruling Is Warning For Junior Creditors

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    The recent Third Circuit decision in CoFund v. Hitachi serves as a useful reminder to junior and senior creditors as to how their dealings in an intercreditor arrangement may play out following a debtor's bankruptcy, and provides insight into the consequences a junior creditor may face after breaching a turnover provision, say attorneys at Cadwalader.

  • Steps Companies Can Take To Mitigate Privilege Labeling Risk

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    Although Google prevailed on a recent privilege labeling sanctions motion, an important takeaway from the decision is that companies should assess their in-house procedures and employee training programs regarding privileged communications to mitigate risks of the potential appearance of bad faith privilege claims, say Gareth Evans at Redgrave and e-discovery attorney James Hertsch.

  • Perspectives

    Nonprofit Ruling Is An Important Step For Nonlawyer Practice

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    A New York federal judge’s recent ruling that will allow nonprofit Upsolve to give legal advice to low-income debtors without a license is a positive development for nonlawyer practice, but presents questions about how to ensure similar programs can exist without fighting dodgy constitutional battles, says Ronald Minkoff at Frankfurt Kurnit.

  • A Look At Finality In Substantially Consummated Ch. 11 Plans

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    The finality of substantially consummated Chapter 11 plans is an indispensable element of the Bankruptcy Code, but stakeholders sometimes attempt to skirt this prohibition by characterizing proposed changes as some from of relief, a reality reflected in the Delaware bankruptcy court's recent Northeast Gas case, say Charles Oellermann and Mark Douglas at Jones Day.

  • What Litigation Funding Disclosure In Delaware May Look Like

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    A standing order issued by Delaware's chief federal judge requiring litigants to disclose whether their cases or defenses are being financed by third parties is unlikely to have onerous effects but may raise questions regarding potential conflicts of interest and access to justice, say Cayse Llorens and Matthew Oxman at LexShares.

  • How Bankruptcy Courts Address Goods, Services In 503(b)(9)

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    The recent Colorado bankruptcy court decision in Sklar shows how courts choose between the predominant purpose test and apportionment test to determine whether all the costs associated with the sale and delivery of a good that was accompanied by a service are entitled to priority status under Section 503(b)(9) of the Bankruptcy Code, says Sara Abner at Frost Brown.

  • Ch. 11 Trustee Fee Ruling Leaves Remedy Challenges

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    The U.S. Supreme Court’s unanimous decision this week in Siegel v. Fitzgerald concerning quarterly fees payable by Chapter 11 debtors to fund the U.S. Trustee Program offloads the determination of remedies to the courts below, raising questions such as whether there is a sound legal basis for foisting fees onto North Carolina and Alabama, says Sasha Gurvitz at KTBS.

  • How In-House Legal Leaders Can Drive Corporate Growth

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    Today, more executives are seeking legal leaders who are strategic, adaptable thinkers, making it essential that in-house counsel get out of their comfort zone of legal advice and take several steps to contribute toward revenue growth and raise their profile, says Tim Parilla at LinkSquares.

  • Attorneys Should Tread Carefully On Job Counteroffers

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    Promises of more compensation to keep attorneys from leaving their jobs have become commonplace in today's hot job market, but lawyers should weigh their options carefully as accepting a counteroffer can negatively affect their reputation, says Leeron Molloy at VOYlegal.

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