Mid Cap
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May 22, 2025
5th Circ. Revives 'Unclean Hands' Defense In Ch. 13
A Louisiana homeowner can head back to bankruptcy court to try to discharge a $75,000 judgment against him from a contractor who said it was stiffed, a panel of the U.S. Court of Appeals for the Fifth Circuit has ruled.
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May 22, 2025
Paper Biz Royal Interco Cleared For $180M Ch. 11 Sale
Arizona-based Royal Interco LLC, a supplier of private-label paper products to grocery chains including Trader Joe's and Aldi, received the Delaware bankruptcy court's permission Thursday to sell its assets to an affiliate of an Italian tissue paper producer Sofidel for $180 million, an increase of more than $50 million from Sofidel's stalking horse bid.
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May 22, 2025
Under The Radar: Bankruptcy News You May Have Missed
Biotech company Molecular Templates defended its Chapter 11 plan against opposition from the U.S. Trustee's Office, paper product maker Royal Interco said its Chapter 11 asset auction has secured a $180 million bid, and insurers for a New Jersey Catholic diocese fought a bid from abuse victims and the diocese to lift a stay to reinvigorate settlement discussions. Here are the bankruptcy stories you may have missed this week.
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May 22, 2025
Meet The Attorneys Directing Genetics Co. Synthego's Ch. 11
A team of lawyers from Pachulski Stang Ziehl & Jones LLP is guiding Synthego Corp. through its Chapter 11 case in Delaware, as the California-based biotechnology company pursues a sale of its assets to a prepetition lender during the proceedings.
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May 22, 2025
Servicer, BNY Seek Exit From Mortgage Statement Suit
Bank of New York Mellon and a mortgage servicing company have urged a Massachusetts federal court to permanently dismiss a proposed class action accusing them of trying to collect on post-bankruptcy liens, saying federal lending law does not obligate servicers to send mortgage statements to borrowers.
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May 22, 2025
Nostrum Cleared for $1.75M Sale Of Ohio Drug Facility
Bankrupt drugmaker Nostrum Laboratories received approval from a New Jersey court for a $1.75 million sale of an Ohio facility after reaching an agreement with the buyer and lenders over the costs of removing controlled substances at the property.
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May 22, 2025
Silvergate Estate To Chip In For $37.5M Investor Settlement
Silvergate Capital and investors suing over its collapse have reached a $37.5 million deal with a "rare" source of partial funding to resolve claims that the failed crypto-focused bank misrepresented its safeguards against onboarding customers like FTX, the fraud-ridden crypto exchange that made up roughly a sixth of the bank's deposit base.
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May 22, 2025
Procopio Expands In San Diego With Bankruptcy Specialist
Procopio Cory Hargreaves & Savitch LLP is expanding its team, bringing in a Henderson Caverly & Pum LLP bankruptcy pro as a partner in its San Diego office.
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May 22, 2025
Trustee Alleges Developer Sold Gas Rights To Avoid Creditors
A bankrupt developer sold its oil and gas rights to an affiliated company for only $100 per parcel in order to keep them from becoming part of the bankruptcy estate, the estate's trustee has claimed in an adversary complaint.
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May 22, 2025
US Trustee, Jackson Walker Might Mediate Fee Case
The U.S. Trustee's Office and Jackson Walker LLP told a Texas federal judge Thursday they are open to mediating the watchdog's bid to have the law firm forfeit fees from more than 30 cases overseen by a former bankruptcy judge who was romantically involved with a onetime firm partner.
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May 21, 2025
'Tough Luck' Case Law Cited In Refusal To Stop Summons
An Illinois federal judge on Tuesday grudgingly declined to issue an injunction to stop an arbitrator from dragging insurance broker Arthur J. Gallagher & Co. into arbitration stemming from the bankruptcy of Cooks Venture, a startup that specialized in the production and processing of pasture-raised, slow-growth chickens.
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May 21, 2025
Vegan Restaurant Chain Planta To Tap $1.75M In DIP Funding
A Delaware bankruptcy judge Wednesday agreed to approve bankrupt vegan restaurant chain Planta's bid to access $1.75 million of its $3.5 million debtor-in-possession financing package, saying it needs funding to continue its efforts toward a sale.
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May 21, 2025
SC Justices Affirm Receivership Order In Asbestos Dispute
The South Carolina Supreme Court on Wednesday unanimously upheld a trial court's decision to appoint a receiver over a Canadian company's insurance assets as part of discovery sanctions in an asbestos injury lawsuit, despite the company's contention it possesses no property in the state.
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May 21, 2025
Sheppard Mullin Lands Alston & Bird, Dechert Attys
Sheppard Mullin Richter & Hampton LLP has brought on a former Alston & Bird LLP partner in its Dallas office and a former Dechert LLP partner in its San Francisco office, strengthening the firm's finance and bankruptcy practice and business trial practice.
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May 21, 2025
50 Cent Wants Ch. 11 Reopened To Fight Woman's $20M Suit
A Connecticut bankruptcy judge will review under seal a woman's $20 million New York injury suit against recording artist 50 Cent during an agreed-upon pause in the state court proceeding, helping her decide whether the rapper can use his Chapter 11 case to torpedo the woman's claims.
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May 21, 2025
Meet The Attys Helping Gov't IT Contractor Sysorex In Ch. 11
Sysorex Government Services Inc., a government information technology contractor, has tapped attorneys from Cullen and Dykman LLP to steer it through the Chapter 11 it began with over $30 million in debt, wracked by uncertainty over potential cuts from the White House's Department of Government Efficiency, a six-figure judgment and a long sale process.
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May 20, 2025
Crypto Co. Genesis Sues Parent Co. Over $1.2B In Transfers
Genesis Global Capital, a crypto lender that filed for bankruptcy in 2023, is now suing its parent company in bankruptcy court, seeking to recover more than $1.2 billion that the lender says was transferred to insiders while the company was insolvent and headed for Chapter 11.
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May 20, 2025
Creditors Win Fight Against Insider Releases In Azzur Ch. 11
A Delaware bankruptcy judge on Tuesday sustained an objection to insider releases in the Chapter 11 liquidation plan of Azzur Group, finding the pharmaceutical services company had not justified the releases for prepetition conduct of current and former officers, directors, and equity holders.
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May 20, 2025
Catching Up With New Bankruptcy Case Action
Two Canadian companies, one a geothermal energy business and another that recycles batteries, sought Chapter 15 protection in the U.S. A biotechnology research company filed for Chapter 11 protection in Ohio after failing to generate enough revenue to maintain its capital-intensive operations. And a not-for-profit New York City private school launched a Chapter 11 case as it faces closure.
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May 20, 2025
Jailed Investor Puts Portfolio In Ch. 11 Ahead Of NY Auction
A group of companies owned by a real estate investor jailed last month for his role in a scheme defrauding Fannie Mae has filed for bankruptcy protection in New Jersey on a portfolio carrying at least $100 million in both assets and debt, ahead of a sheriff's sale in New York set for Tuesday.
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May 20, 2025
Disbarred Atty Turns Informant In Debt Firm Bankruptcy Battle
Two years after his debt relief law firm collapsed amid allegations he stole approximately $250 million from clients and investors, disbarred California attorney Tony Diab recently began telling a court-appointed bankruptcy trustee everything he did — and where the money went. The trustee has used this information to file dozens of lawsuits. But can Diab be trusted?
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May 20, 2025
Healthcare Spending Slowdown Sparked Accelerate's Ch. 11
Biotechnology company Accelerate faced regulatory challenges and weakened demand from hospitals for its diagnostics products before it filed for bankruptcy protection this month, and is now planning to sell its assets and wind down the business.
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May 20, 2025
Nursing Homes Facing 'Corporate Death Penalty' Owe $15.4M
The companies behind two Pittsburgh-area nursing homes convicted of falsifying staffing records were ordered Tuesday to pay a total of $15.35 million in restitution to the federal government, though the corporations' attorney told the judge that they had already received a "corporate death penalty" for their conviction.
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May 19, 2025
Whiskey Distillery Hopes To Beat COVID Hangover In Ch. 11
The Portland, Oregon-based distiller of Westward Whiskey was driven to bankruptcy by flagging demand for booze following the COVID-19 pandemic, according to its bankruptcy filings, but the liquor producer says it is not last call for the business.
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May 19, 2025
Heritage Coal's Ch. 11 Sale Timeline Approved In Del.
The proposed sale procedures for Heritage Coal, a bankrupt mining operation, received approval Monday from a Delaware bankruptcy judge, who overruled objections from the company's previous owners to certain deadlines.
Expert Analysis
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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How Courts Can Filter Nonmeritorious Claims In Mass Torts
Nonmeritorious claims have been a key obstacle to settlement in many recent high-profile mass torts, but courts may be able to use tools they already have to solve this problem, says Samir Parikh at Wake Forest University.
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Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Serta Ruling Further Narrows Equitable Mootness In 5th Circ.
The Fifth's Circuit recent Serta bankruptcy decision represents a further hardening of its view of the equitable mootness doctrine, and may set up a U.S. Supreme Court review of the doctrine in the near future, say attorneys at Cleary.
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Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.