Dechert LLP on Tuesday challenged a settlement plastic bottle maker Capsule — which the firm represented in bankruptcy — reached with lenders in an $80 million lawsuit that accuses the firm of diverting money to the company's former bosses, saying the deal includes terms that could tilt the litigation against the firm.
An arbitration panel on Tuesday ordered defunct Florida investment firm NSM Securities Inc., its founder and a broker to pay $1.9 million to four customers for a long list of claims, including breach of contract, excessive trading, fraudulent misrepresentations and a variety of financial rules violations.
The jailed ex-CEO of military body armor maker DHB Industries Inc. on Wednesday asked the Delaware bankruptcy court to halt a $20 million loan from disputed escrowed litigation funds until his several appeals in the Chapter 11 case are resolved, arguing that otherwise his claim to the money could be sunk.
Quiksilver’s Chapter 11 trustee urged a Delaware bankruptcy judge Tuesday to deny plans designed to keep certain important employees with the company, calling goals that executives must meet to cash in on the $2.3 million programs “low hanging fruit” and questioning the noninsider status of some eligible employees.
A Delaware bankruptcy judge gave Energy Future Holdings Corp. the go-ahead Wednesday for a series of settlements with bondholders and others that knock out the major opposition to the power giant's Chapter 11 plan and are expected to significantly smooth and truncate the debtor's path to confirmation.
Columbia House's corporate parent defended the potential sale of the once-popular music club to an affiliated company called Edge Line Ventures on Tuesday after unsecured creditors filed papers in New York federal court accusing executives of having used the business as a “personal piggy bank” before it fell into bankruptcy.
Albertsons received a Delaware bankruptcy judge’s blessing Tuesday to buy back 30 grocery stores it sold to small chain Haggen, which has failed under the weight of its rapid expansion, undoing a major aspect of the $9.2 billion Albertsons-Safeway merger's regulatory approval.
The Manhattan District Attorney’s office will soon decide whether or not to retry the former top executives of Dewey & LeBoeuf LLP on charges of conning lenders and investors into backing the troubled law firm, the U.S. Securities and Exchange Commission said Wednesday.
A Delaware bankruptcy judge gave oil services company Signal International LLC the go-ahead Tuesday for its sale to senior lenders and confirmation of its Chapter 11 plan, which aims to pay roughly $20 million to ex-employees who have made serious labor trafficking accusations against the debtor.
The federal government told the Third Circuit on Monday that it has decided not to pursue its challenge over LifeCare Holdings Inc.'s $320 million bankruptcy sale to Carlyle Group LP that purportedly stiffed the Internal Revenue Service for $24 million in capital gains taxes.
Moore Capital Management LLC asked a New York bankruptcy court Tuesday to turn Lehman Brothers Holdings Inc.'s withdrawal of claims in a $20 million fight over swap agreements into a with-prejudice dismissal, after Lehman allegedly wasted 18 months’ worth of Moore’s time and money.
The new owner of Revel Casino Hotel and its utility provider reached a $45 million settlement Tuesday that will end the litigation over a soured power supply contract and restart full electricity service at the shuttered New Jersey venue.
Boutique firm Rimon PC has lured an experienced bankruptcy and real estate litigator from Duane Morris LLP to join the firm's teams in San Francisco and Silicon Valley, where he'll serve as a partner, according to Rimon.
Bankrupt oil and gas company Samson Resources Corp.'s attorneys at Kirkland & Ellis LLP can't recover fees for defending any fee disputes, the U.S. Trustee said Monday, telling a Delaware bankruptcy judge that the firm's request flouts a recent U.S. Supreme Court ruling.
The owner of A&P supermarkets on Monday filed a lawsuit in New York bankruptcy court accusing commercial real estate broker Lee & Associates of hiding from the debtor that its proposed $11.8 million purchase of stores in New Jersey and Brooklyn actually were on behalf of a third party.
A Florida music publisher has filed for bankruptcy weeks after the U.S. Supreme Court passed on an appeal that sought to overturn a $2.2 million judgment against the company in a dispute over the ownership rights to the '90s hip-hop hit “Whoomp! (There It Is).”
A Louisiana federal judge on Monday dismissed the last part of a proposed class action claiming bankrupt ATP Oil & Gas Corp.’s top brass misled shareholders about the company’s liquidity after drilling moratoriums enacted following the Deepwater Horizon oil spill.
Thompson Coburn LLP urged a Pennsylvania federal court Monday to dismiss claims brought by the Chapter 7 trustee of Valley Forge Composite Technologies Inc., saying its downfall stemmed from the CEO's decision to illegally sell military-grade components to China, not the law firm's actions.
Attorneys representing a Lehman Brothers subsidiary on Tuesday defended a lawsuit against a subsidiary of Australia's ANZ Bank seeking to claw back more than $17.1 million, telling a New York bankruptcy judge that ANZ's argument that the funds fall outside the court's jurisdiction is misplaced.
A special master for discovery on Monday in Alabama federal court found Boeing in violation of deposition guidelines in how it interviewed a witness in a bankrupt aerospace contractor’s $1.1 billion lawsuit alleging Boeing reneged on a U.S. Air Force refueling tanker contract.
Several developments over the past few months caught the eye of Jim Maiwurm, chairman emeritus of Squire Patton Boggs. Try as he might, he could not resist the temptation to comment on a few — such as the expansion of the Dentons “polycentric” empire, a confused verein controversy, and provocative suggestions that the law firm partnership model is a dinosaur.
Defending a law firm, accounting firm or other professional against a malpractice suit can be complicated enough, but an insolvent former client under the control of a receiver or trustee may further complicate the defense. In defending against a trustee or receiver claim, a number of defenses may be investigated, including in pari delicto, contributory fault, statutes of limitations and causation, say attorneys with Williams & Connolly LLP.
The amendments to the Federal Rules of Civil Procedure scheduled to take effect Dec. 1 are designed to usher in a new era in the U.S. litigation system, this time acknowledging that what was once known as “e-discovery” is now just discovery. The amendments are sweeping in scope, but none is more important than the revised Rule 37(e), say Gregory Leighton and Eric Choi of Neal Gerber & Eisenberg LLP.
In distinguishing between materials prepared by tax professionals in the ordinary course of regulatory compliance and tax analysis tailored toward a specifically anticipated legal challenge — such as IRS scrutiny over a restructuring — the Second Circuit in Schaeffler v. U.S. added clarity about the work-product doctrine’s protection, say attorneys with WilmerHale.
A growing number of attorneys and firms are eschewing tradition by embracing technology to change not only the way we work, but also the way we organize our offices, says Anthony Johnson, founder and CEO of American Injury Attorney Group.
A recent decision from the U.S. Bankruptcy Court for the Southern District of New York in the restructuring case of a Berau Coal Energy subsidiary clarifies not only when a foreign company may be a debtor under Chapter 15, but the broader question of what satisfies the “property in the United States” requirements of Section 109, say attorneys with Ashurst LLP.
Over the past 35 years, Joe Kanka has experienced the corporate legal department from many angles, including management positions at a major law firm litigation support center, two legal staffing companies, and inside AT&T and Bell Atlantic. Here, he shares his 13 key business objectives that corporate legal departments must strive for in today’s business environment.
A decision last week by a New York bankruptcy judge splits innumerable hairs, but delineates the extent to which the new General Motors — which acquired the assets of "Old GM" in 2009 — is shielded from lawsuits based on ignition switch defects in cars manufactured prior to the acquisition, says Benjamin Feder of Kelley Drye & Warren LLP.
A recent Second Circuit decision in Franklin v. McHugh puts practitioners on notice that failure to “click all the buttons” may, with respect to electronically filing a notice of appeal, result in the appellate court lacking jurisdiction to consider the appeal. The case's lessons are equally applicable in the bankruptcy context, say Bryce Suzuki and Justin Sabin of Bryan Cave LLP.
For the foreseeable future, distressed investors and analysts will no longer have the luxury of assuming structural subordination will protect expected recoveries. Indeed, a recent decision in the Energy Future Holdings bankruptcy case will likely incentivize parent company creditors to more liberally distribute recoveries without strict adherence to the structural subordination doctrine, says Keith Sambur of Richards Kibbe & Orbe LLP.