A New Jersey federal court has approved a judgment agreed upon between the U.S. Securities and Exchange Commission and one of the assisted living facility operators the agency has accused of misappropriating millions of dollars in investor funds to prop up failing facilities and for their own benefit.
Unsecured creditors of bankrupt pharmacy services holding company ScripsAmerica Inc. sued the firm and the regional U.S. trustee in Delaware’s bankruptcy court Monday, claiming that both were wrongly seeking to disband the committee over allegations of member conflicts.
A Florida bankruptcy judge has approved a multimillion-dollar settlement that a Florida heart surgeon reached to resolve a False Claims Act suit against him, saying he found it to be in the best interests of the estate and all creditors.
Jury selection in the retrial of two former top executives of failed law firm Dewey & LeBoeuf LLP began Monday, and the judge overseeing the marathon case laid out some ground rules for the defense in its questioning of the star cooperating witness in the case, in light of his sweetened plea deal.
Oil tanker company Overseas Shipholding Group Inc. on Monday agreed to pay a $5 million fine to the U.S. Securities and Exchange Commission to settle charges it failed to report hundreds of millions of dollars in tax liabilities for almost 12 years.
Peabody Energy is facing opposition to its Chapter 11 disclosure statement from Indiana’s environmental watchdog, which said that the energy company needs to flesh out the details in regard to posting bonds for cleaning up mining sites in the future.
Saul Ewing LLP has filed a fee and expense application seeking Delaware court approval of $11.4 million in fees and $300,000 in expenses for the firm’s work on the Chapter 11 plan of food distributor Associated Wholesalers Inc.
A former Cooley LLP partner in charge of handling bankruptcy matters related to a number of high-profile retailers and technology companies has joined Lowenstein Sandler LLP in its New York office, the firm announced Monday.
TerraForm Power Inc. and TerraForm Global Inc., yieldcos controlled by bankrupt solar company SunEdison Inc., on Monday revealed exclusivity agreements with Canadian alternative asset manager Brookfield Asset Management Inc.
Bankrupt oil and gas drilling firm Triangle USA Petroleum Corp. received court approval on Monday in Delaware to enter into an agreement with JPMorgan Chase Bank NA for a $250 million exit facility to fund its operations once it exits bankruptcy.
A consortium of Nortel Networks Inc.’s suppliers and other creditors has agreed to a $153.6 million trade creditor claim in partial settlement of the group’s objections to the international telecom’s overall $7.3 billion Chapter 11 plan.
When DuPont spun off its Chemours business more than a year ago, it did so in part to shed potential cancer liabilities caused by decades' worth of Teflon manufacturing waste. But as the legal bill grows, experts believe that the punitive damages awarded in recent trials present grounds for the spinoff to fight back.
Another Resource Capital Corp. shareholder has brought a suit against the real estate investment trust’s directors in New York federal court, accusing them Monday of mishandling a Puerto Rico hotel loan portfolio that prompted a $41 million write-down in August 2015.
A New York bankruptcy judge on Monday said that by failing to obtain his permission before filing an action against MF Global’s trustee to arbitrate a contract dispute in Bermuda, Ironshore Insurance Ltd. and other MF Global excess insurers violated a legal doctrine and must dismiss those foreign proceedings by Tuesday.
Copyright infringement claims against the publisher of the Yellow Pages are dead, a Delaware judge ruled Thursday, because the owner of stock photos used in the directories has already litigated those claims and the court has already issued a ruling on the matter. Correction: An earlier version of this story misstated the conclusion of the opinion. The story has been corrected.
Telecommunications provider Avaya Holdings Inc. on Monday pulled long-dormant plans for an estimated $1 billion initial public offering, just days after the private-equity-backed company filed for Chapter 11 bankruptcy protection.
The U.S. Supreme Court on Monday refused to review a D.C. Circuit decision that said a NASA contract worker doomed her own discrimination allegations against Honeywell and other companies when she omitted the case from her Chapter 7 bankruptcy filings.
Performance Sports Group Ltd. told the Delaware bankruptcy court on Friday that it plans to sell its struggling soccer uniform business line to one of its original owners for nearly $1.6 million, which the sports equipment maker believes will be better than what a liquidation would have yielded.
Financier Lynn Tilton on Wednesday accused three collateralized loan obligation funds she founded of playing “tactical games” when they filed a fraud lawsuit seeking judgment on their ownership after convincing her to drop a similar case in New York federal court, prompting the funds to fire back in a letter Thursday, calling her accusations “unfounded and irrelevant.”
Former Michaels Stores Inc. chair Sam Wyly and his late brother's estate urged a Second Circuit judge Friday to allow oral arguments in their appeal of the U.S. Securities and Exchange Commission's $299.3 million securities fraud victory over the pair, citing “significant legal questions.”
Last year saw several large portfolio trades in the tertiary life settlements market, and the industry faced cost of insurance increases by several major companies. Brian Casey and Thomas Sherman of Locke Lord LLP discuss 2016's most important life settlements court cases from all around the country.
By not allowing Section 316(b) to be used to disrupt an out-of-court restructuring, the Second Circuit in Marblegate recognized the clear importance of business-oriented consensual restructurings to the detriment of nonconsenting bondholders. The court’s recent ruling also has the potential to be a trap for the unwary indenture trustee, says Karol Denniston of Squire Patton Boggs LLP.
While some courts have declined to apply the common-law doctrine of champerty to invalidate third-party litigation funding agreements, two recent rulings by appellate courts in New York and Pennsylvania have brought renewed attention to champerty principles, casting doubts on the legality of certain forms of third-party litigation funding, say John Beisner and Jordan Schwartz of Skadden Arps Slate Meagher & Flom LLP.
Instead of trying to change the new workforce to follow a law firm's existing processes and procedures, perhaps it's time for firms to start changing their processes and procedures to better accommodate the mentality of this next generation of lawyers, says Christopher Imperiale, a law firm adviser with Berdon LLP.
Every year, statistics reveal very little change in the number of women and minorities in the ranks of partnership. So how do law firms change this painfully slow rate of progress? It takes more than adding a diversity policy or a women’s leadership program to the current law firm business model, says Lucia Chiocchio, co-chair of Cuddy & Feder LLP's telecommunications and land use, zoning & development groups.
Two recent opinions in Lassman v. Cameron Construction and Spradlin v. Beads And Steeds Inns concerning the law of substantive consolidation serve as an important reminder of the significant equitable power that bankruptcy courts wield. That power affects the fate not only of debtors and their creditors but the rights and obligations of related parties and their creditors as well, says John Loughnane of Nutter McClennen & Fish LLP.
Choice-of-law rules for the perfection and priority of a security interest in “securities credited to a securities account” will change on April 1, 2017, when the Hague Securities Convention comes into effect. Edwin Smith and Alan Beloff of Morgan Lewis & Bockius LLP describe what steps secured parties may need to take now for existing secured transactions and in planning for new ones.
After a full year in effect, the amended Federal Rule of Civil Procedure 37(e) has been tested in a variety of district courts. A sampling of these decisions reveals that courts seem to be adhering closely to the amended rule and ordering adverse inference instructions only where there was intent to deprive another party of access to relevant information, say Carrie Amezcua and Samantha Southall of Buchanan Ingersoll & Rooney PC.
Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can all add up to a surprisingly large final cost, says Michael Cousino of Epiq Systems.
In Mission Product Holdings v. Tempnology, the bankruptcy appellate panel for the First Circuit held that Section 365(n) did not protect the exclusive distribution rights granted to the licensee of the debtor’s intellectual property, leaving unaddressed the practical implication that an IP license may be rendered worthless without the accompanying distribution rights, say Shmuel Vasser and Andrew Harmeyer of Dechert LLP.