Creditors of OCZ Technology Group Inc. urged a Delaware bankruptcy judge on Monday to not approve a proposed $7.5 million settlement of a shareholder class action, saying the deal shouldn't be blessed until they've had a chance to look into all the estate's claims.
In damning emails in which they allegedly discussed “cooking the books” and “fake income,” former executives of now-defunct Dewey & LeBoeuf LLP handed prosecutors evidence they needed to charge them with accounting fraud and put themselves in the difficult position of trying to explain away their own words, experts say.
Sentinel Management Group Inc.’s former chief financial officer testified Monday that the investment firm wasn’t entirely forthright with customers about its financial health and risky trading strategy leading up to its 2007 collapse, as her old boss’s trial on charges that he oversaw a $500 million fraud continued in Chicago.
A Georgia federal court last week added a new step for insurers to take before they can head to court to challenge directors and officers coverage for the Federal Deposit Insurance Corp.'s litigation over bank failures, a peculiar ruling that attorneys warned could drive up costs for insurers.
If Sbarro Holdings LLC hopes to make its second bankruptcy go-around more successful — and lasting — than its previous trip, the chain must dig in deep to carve off a chunk of its lease burdens, rework its bloated organizational structure and eke out new concessions from already burned creditors, experts say.
A California bankruptcy judge last week rejected the claims of Screen Capital International Corp., as well as approximately $3 million in associated legal fees, in the bankruptcies of film financier David Bergstein’s companies.
The government’s star witness in a trial against five former Bernie Madoff associates is a serial liar and “villain” who testified merely to save his own skin, a defense attorney said on Monday during closing arguments in the blockbuster case.
Bankrupt Liberty Medical Supply Inc. launched an adversary suit Friday alleging that former owner Medco Health Solutions Inc. breached the terms of their 2012 sale agreement, costing Liberty tens of millions of dollars and spurring its quick decent into Chapter 11.
Plus-sized women’s retailer Ashley Stewart Holdings Inc. sought Chapter 11 protection Monday — four years after the former owner of the brand sought bankruptcy — with the hope of selling all of its assets to keep the company’s operations afloat.
The path to success for women is the same as it is for men — building relationships, delivering an excellent work product and earning the trust of your clients by serving as both a legal and strategic business adviser. I must confess, however, that I also had to learn to drink scotch and play golf, says Linda Goldstein, chairwoman of Manatt Phelps & Phillips LLP's advertising, marketing and media division.
I will never forget stories I heard of what it was like to be a woman attending law school in the early 1960s, which included being called up to the front of the class to answer the professor’s questions on designated "Ladies’ Days," says Yuliya Oryol, chairwoman of Nossaman LLP's puplic pensions and investments practice group and administrative partner for the firm's San Francisco office.
Japanese bitcoin exchange Mt. Gox sought Chapter 15 protection in Texas on Sunday, saying it needed to halt two pending lawsuits in the U.S. while it sorts out its financial affairs through its main bankruptcy proceeding in Tokyo.
Fast-food pizza chain Sbarro Express LLC filed for bankruptcy protection in New York federal court on Monday, marking its second petition for Chapter 11 protection in less than three years.
Overseas Shipholding Group Inc. submitted a Chapter 11 plan Friday that envisions the oil tanker giant and its subsidiaries emerging from bankruptcy as a reorganized entity owned primarily by its largest lenders.
A junior Dewey & LeBoeuf LLP staffer hit with criminal charges for his alleged role in a scheme to misstate the firm’s financial position serves as a cautionary tale for any BigLaw employees who feel shielded from liability for the actions of their lawyer bosses, experts say.
A Pennsylvania federal judge on Friday doled out an 18-month prison sentence to a Bucks County, Pa., lawyer convicted of conspiracy and fraud charges over mortgage loans to distressed homeowners, in a case in which she cut the government's $14 million loss estimate to about $400,000.
The trustee for the producers of the “Girls Gone Wild” video series' Chapter 11 bankruptcy case asked a California federal judge on Thursday to stave off a tenant's attempts to evict the company units from their Los Angeles office, saying it violated the terms of a lease agreement that was likely destroyed by GGW founder Joe Francis.
A Georgia federal judge on Wednesday held for the second time that a 1989 federal law blocked him from deciding whether OneBeacon Midwest Insurance Co. owed coverage for the Federal Deposit Insurance Corp.'s claims that former directors and officers of a failed bank caused $15 million in losses.
The Backstreet Boys have requested additional time to resolve a dispute with their former Ponzi-scheming manager's bankruptcy trustee over $3.5 million in legal fees, seeking to push back a scheduled March 24 hearing on the matter.
Detroit retirees on Thursday took to bankruptcy court to air their fears about the city’s proposed plan of adjustment, which could force them to swallow hefty cuts to their pensions, with many noting that such measures would force them to seek public assistance.
Although an appointment order will define the scope of a federal court receiver’s duties, there are typically a handful of “do’s” that every receiver should strive to accomplish immediately. For example, any electronic access to the receivership entity’s files should be immediately disabled, and hence, having a digital forensic specialist available is necessary, says Patrick Rengstl of Levine Kellogg Lehman Schneider & Grossman LLP.
Cloud users must know how to use the cloud responsibly to prevent later difficulties with document production. When negotiating a cloud service agreement, users should look for certain services that will prove useful when responding to discovery requests, such as comprehensive search options, instant suspension of the auto-delete function, and preservation of metadata and embedded data, say attorneys with Sidley Austin LLP.
Thanks to the Third Circuit’s recent holding in In re Emoral Inc., entities purchasing a distressed debtor’s assets through a Section 363 bankruptcy sale may have greater protections against the subsequent claims of those seeking to hold the purchaser liable for damages arising from the debtor’s presale conduct, says Travis Powers of Buchanan Ingersoll & Rooney PC.
The First Circuit's recent decision in In re Munce’s Superior Petroleum Products Inc. is consistent with other circuits in concluding that noncompensatory environmental fines should receive administrative priority under the Bankruptcy Code. The decision, however, is at odds with other courts that have addressed the treatment of prepetition violations that result in post-petition penalties, say attorneys at Lowenstein Sandler LLP.
Section 503(b) of the Bankruptcy Code provides a unique opportunity for creditors to aid the estate in recovering assets and to be compensated for their efforts. However, a recent Florida court decision highlights the consequences of leaping to undertake such efforts but failing to obtain prior permission, says Reagan Boyce of Ezra Brutzkus Gubner.
If a company fails to comply with certain obligations under a loan agreement, it should engage the lender in discussions regarding the reasons for the failed compliance, whether the company is able to cure any existing default, or whether it believes a waiver, forbearance or amendment is appropriate. It could not be in the lender’s best interest to declare an event of default, and hence, the parties can begin negotiations, say George South and Daniel Egan of DLA Piper LLP (US).
In stark contrast to the changing environment for the majority of lawyers today, the evolution for the general counsel is driven less by necessity than by opportunity. Today’s GC may touch every aspect of his or her organization to solve challenges and propel the company forward, keeping the GC far ahead of what is expected of the average lawyer, says James Merklinger, vice president and general counsel of the Association of Corporate Counsel.
As reflected in a recent decision by the U.S. Bankruptcy Court for the District of New Jersey, in preparing loan documentation, it is important for practitioners to appreciate how applicable state law and bankruptcy courts will treat assignments of rents and whether, given that treatment, certain facts or structuring could alter whether and how the rents may be used in the event of the borrower’s bankruptcy, say attorneys with Alston & Bird LLP.
The trustee of bankrupt agribusiness giant SK Foods LP recently completed the Herculean task of recovering approximately $50 million from Australia for the company’s creditors in a saga that involved one of the largest Chapter 11 cases in the Eastern District of California, criminal charges, and a last-minute attempt by Australian authorities to confiscate assets. Among other things, the trustee's ability to establish personal jurisdiction in the U.S. over asset protection vehicles proved invaluable, say attorneys with Schnader Harrison Segal & Lewis LLP.
According to the Pew Center on the States, state retirement systems alone were collectively underfunded by $1.38 trillion as of 2010. Without pension reform, like in Florida after Scott v. Williams, state and municipal governments will be forced to cut spending elsewhere in order to continue funding pensions at current levels, which would hurt public employees themselves through layoffs and the breaking of contracts in municipal bankruptcies, say Jonathan Rose and Richard Siegel of Alston & Bird LLP.