Mid Cap
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March 28, 2025
3rd Circ. Preview: April Arguments Feature Class Action Rows
The Third Circuit's April argument lineup springs into action with securities litigation brought by Walmart investors claiming they were misled about the government's opioid investigation into the company, and a bid to upend an attorney fee award stemming from the settlement of data breach litigation against convenience store chain Wawa.
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March 28, 2025
The Supreme Court's Week: By The Numbers
The U.S. Supreme Court heard five arguments this week, including in cases over the proper venue for challenges to EPA actions and the potential revival of a doctrine not used since the 1930s, while also issuing two rulings, one of them a high-profile decision involving ghost guns. Here, Law360 Pulse takes a data-driven dive into the week that was at the U.S. Supreme Court.
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March 28, 2025
CarePoint Mediator Says Ch. 11 Confirmation Deal Is Futile
A mediator appointed in a New Jersey hospital operator's Chapter 11 told a Delaware bankruptcy judge that discussions to close the gap on holdout objections to its reorganization plan have hit a wall.
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March 28, 2025
Meet The Attys Assisting Village Roadshow In Ch. 11
Village Roadshow Entertainment Group, a production company behind blockbusters like "The Matrix" and "The Great Gatsby," has put together a team of lawyers from Young Conaway Stargatt & Taylor LLP and Sheppard Mullin Richter & Hampton LLP to help it pursue a sale amid Chapter 11.
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March 28, 2025
'Matrix' Producer Gets 2-Member Creditor Committee
The U.S. Department of Justice's bankruptcy watchdog selected a landlord and a movie production consultant to make up the unsecured creditors committee in Village Roadshow Entertainment Group's Delaware Chapter 11.
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March 27, 2025
Diocese Creditors Gain Access To Abuse Claim Data In Ch. 11
Creditors of the Archdiocese of San Francisco will have access to records of the archdiocese's independent review board after a California bankruptcy judge said production of the documents serve a valid purpose in its Chapter 11 case.
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March 27, 2025
Sticky's Seeks To Pluck Ch. 11 Victory From Jaws Of Defeat
Popular New York-area chicken restaurant chain Sticky's has asked a Delaware bankruptcy judge for permission to enter deals with a Southern-style restaurant chain and an investment firm in a last-ditch attempt to sell off the debtor's assets in its Chapter 11 case.
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March 27, 2025
Exactech To Solicit Ch. 11 Plan Votes Amid Claimant Row
A Delaware bankruptcy judge on Thursday approved Exactech Inc.'s contentious bid to solicit votes from creditors on its Chapter 11 plan after the implant maker agreed to include a statement from a committee of unsecured creditors in its disclosure statement that reflects the group's opposition to the deal.
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March 27, 2025
Mondee's $200M Ch. 11 Sale OK'd Over Shareholder Objection
A Delaware bankruptcy judge on Thursday approved a nearly $200 million sale of assets by artificial intelligence-powered travel app company Mondee Holdings, overruling objections from a shareholder and saying the deal is in the best interests of creditors.
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March 27, 2025
Pa. Coal Co. Gets OK For $23.5M Asset Sale In Ch. 11
A Pennsylvania bankruptcy judge on Thursday approved the sale of assets of bankrupt Corsa Coal Corp. for $23.5 million, overriding arguments against including litigation claims in the sale and for earmarking proceeds for environmental cleanup.
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March 27, 2025
Meet The Attys Helping 23AndMe Through Ch. 11
DNA testing company 23andMe Holding Co. enlisted a group of attorneys from Carmody MacDonald PC and Paul Weiss Rifkind Wharton & Garrison LLP to help it address $214 million in debt as it tries to sell its business through Chapter 11.
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March 27, 2025
TreeSap Farms Gets Final OK For $51M Ch. 11 Loan
Landscape plant grower TreeSap Farms LLC received a Texas bankruptcy judge's approval to tap the final branch of its $51 million debtor-in-possession loan as it looks to sell itself in Chapter 11.
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March 27, 2025
Gastropub Chain Bar Louie Hits Second Chapter 11 In 5 Years
Texas-based gastropub chain Bar Louie filed for Chapter 11 protection in Delaware, listing nearly $70 million of debt, about five years after the chain sold itself to creditors in a previous bankruptcy.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
23andMe Says Ch. 11 Privacy Ombudsman Not Required
DNA testing company 23andMe Inc.'s customer data will be protected in Chapter 11, its attorneys told a Missouri bankruptcy judge Wednesday as it argued that the appointment of a consumer privacy ombudsman is not required.
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March 26, 2025
Resort Developer Asks To Unwind Pre-Ch. 11 Equity Deal
California resort developer SilverRock Development Co. filed an adversary complaint in its Chapter 11 case Tuesday asking a Delaware court to unwind a pre-bankruptcy securitization transaction that converted preferred shares into secured debt.
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March 26, 2025
Mondee Defends Ch. 11 Sale To Stalking-Horse Bidder
Bankrupt travel app company Mondee Holdings Inc. on Wednesday defended its plan to sell its assets for about $200 million to its stalking-horse bidder, asking a Delaware judge to overrule a shareholder's objection that claimed the proposed sale runs afoul of bankruptcy rules.
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March 26, 2025
Judge To OK $3.3M DIP Draw In Wood Insulation Co.'s Ch. 11
A Delaware bankruptcy judge said Wednesday she will allow wood fiber insulation maker GO Lab Inc. to tap into a $10 million Chapter 11 bankruptcy financing facility provided by existing bondholders on an interim basis as the company seeks to restructure its balance sheet and give those bondholders nearly all equity.
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March 26, 2025
23AndMe's Ch. 11 Sale Hinges On Patchwork Of Privacy Laws
Bankrupt genetic testing company 23andMe wants to put its vast store of genetic data up for auction in order to repay creditors, but customer privacy concerns and a patchwork of state data protection laws could throw this plan into disarray.
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March 26, 2025
NY REIT Gets Ch. 11 Plan Confirmed After Deal With Creditors
A Delaware bankruptcy judge on Wednesday approved New York-based real estate investment trust JER Investors Trust Inc.'s Chapter 11 plan that calls for about $2.25 million in payments to general unsecured claim holders, following the company's report that it reached a consensus with noteholders that challenged the proposal.
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March 26, 2025
Office Snapshot: Butler Snow Trims Nashville Footprint
In response to changing operational needs, including a decreased need for physical storage and a greater need for collaborative spaces, Butler Snow LLP recently moved to a new office in Nashville's historic Germantown district that it said better fits its goals in the fast-growing city.
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March 26, 2025
Hybrid Engine Maker First Mode Gets Ch. 11 Plan Confirmed
First Mode Holdings, a company that makes hybrid engines for heavy-duty vehicles, received the Delaware bankruptcy court's approval Wednesday to move forward with its Chapter 11 plan, which calls for full recoveries for unsecured creditors.
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March 26, 2025
Justices Rule Ch. 7 Trustee Can't Recover Tax Payments
The U.S. Supreme Court on Wednesday reversed a Tenth Circuit decision allowing the bankruptcy trustee of a defunct Utah company to claw back $145,000 in federal taxes, saying the sections of the Bankruptcy Code relied upon by the trustee provide only a limited waiver of sovereign immunity.
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March 25, 2025
Aerospace Co. Creditor Must Say If It Will Bid Against Debt
The stalking horse bidder for the assets of bankrupt aerospace parts supplier Dynamic Aerostructures must inform the Delaware bankruptcy court by Thursday whether it intends to make a credit bid that includes $54 million of debt it currently holds against the company, after a judge found that a lack of clarity about the creditor's bid would affect other bidders.
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March 25, 2025
Apparel Biz Delta's Ch. 11 Converted To Ch. 7
A Delaware bankruptcy judge has granted a motion from the former owner of the Salt Life clothing and lifestyle business, Delta Apparel Inc., to transition its bankruptcy case from a Chapter 11 to a Chapter 7 liquidation, following the company's failure to secure enough funding to continue its reorganization proceedings.
Expert Analysis
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.
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Decoding The Digital Asset Landscape In Bankruptcy
Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.
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How Fla. Bankruptcy Ruling May Affect Equity Owners
A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.
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Calif. Ruling May Open Bankruptcy Trustees To Tort Liability
In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.
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Co. Directors Must Beware Dangers Of Reverse Factoring
New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.
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Diamond Sports Cases Shed Light On Executory Contracts
Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.