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Bankruptcy
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October 02, 2025
Wind Co.'s Pre-Ch. 11 Uptier Deal Draws Suit From Creditors
The official committee of unsecured creditors in the Chapter 11 of wind turbine blade maker TPI Composites has brought an adversary action against the debtor in Texas bankruptcy court, alleging a prepetition uptier transaction made preferred equity holder Oaktree a secured creditor to the detriment of unsecured noteholders.
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October 02, 2025
Attys Get Mixed NJ Discipline After Fraud Convictions
The New Jersey Supreme Court has disbarred ex-Sacks Weston attorney Scott Diamond from the practice of law in the Garden State following his conviction for fraudulently resolving cases behind the back of his old firm, according to filings issued Thursday.
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October 02, 2025
Ch. 11 Trustee Appointed In Eventide Bankruptcy
A Texas bankruptcy judge has appointed a Chapter 11 trustee in the bankruptcy of Eventide Credit Acquisitions following a request from the official committee of unsecured creditors.
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October 02, 2025
Cajun Restaurant Chain Hits Ch. 11 Amid Consumer Shifts
Cajun restaurant chain Razzoo's filed for Chapter 11 protection in Texas bankruptcy court, citing consumer shifts since the COVID-19 pandemic began that have led to financial distress and made it necessary for the business to seek relief from onerous lease obligations and reduce its store count.
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October 01, 2025
Coinbase Gets Securities Suit Over Biz Risks Trimmed
A New Jersey federal judge trimmed claims from a class action against Coinbase alleging the crypto exchange misrepresented or concealed parts of its business, ruling that claims tied to bankruptcy risk and regulatory disclosures that aren't based on group pleading can proceed, while claims related to proprietary trading statements were dismissed.
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October 01, 2025
Reed Smith Seeks 2nd Circ. Help Over Eletson Orders
Reed Smith LLP has urged the Second Circuit to nix an order displacing the firm as counsel and requiring it to turn over client files for international shipping group Eletson Holdings Inc. to lawyers representing the company's new owners, saying Eletson's bankruptcy plan has not validly taken effect.
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October 01, 2025
PG&E Brass, Underwriters Get Investors' Wildfire Suit Tossed
A California federal judge has thrown out a proposed investor class action against PG&E officers, directors and underwriters that blamed stockholder losses following deadly wildfires on previous statements by PG&E officials about the utility's safety practices, but said they could try a fifth time.
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October 01, 2025
First Brands Can Tap $1B DIP As It Seeks Stability In Ch. 11
A Texas bankruptcy judge Wednesday gave interim approval to car parts maker First Brands' $1.1 billion debtor-in-possession loan, freeing up $500 million in funds, after a stalled refinancing and limited liquidity pushed it to Chapter 11.
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October 01, 2025
Alex Jones Ch. 7 Stay Doesn't Protect Co. Assets, Judge Says
The Texas bankruptcy judge overseeing the Chapter 7 case of right-wing conspiracy theorist Alex Jones said Wednesday the automatic stay of the bankruptcy does not extend to the assets of Jones' media company, Free Speech Systems.
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October 01, 2025
Conn. Diocese Attys Slam US Trustee's $3.1M Fee Complaint
The Norwich Roman Catholic Diocesan Corp.'s attorneys at Ice Miller LLP and Robinson & Cole LLP, along with other bankruptcy advisers, have disputed a U.S. Trustee's claims that nearly $3.1 million in combined professional fees were not actual, necessary and reasonable in light of a mediator's efforts.
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October 01, 2025
Hub Hires: Morgan Lewis, WilmerHale, Simpson Thacher
Other than the Red Sox and a few muggy late summer days, few things were hotter in September than the Boston legal market. Morgan Lewis made four lateral hires, WilmerHale welcomed back an experienced life sciences attorney, and Simpson Thacher snagged a former Goodwin banking lawyer.
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September 30, 2025
McKinsey Trims Endo Suit But Can't Nix Indemnification Claim
A New York bankruptcy judge trimmed an adversary suit Monday claiming McKinsey & Co. Inc. should pay at least $1.5 billion to cover costs bankrupt pharmaceutical developer Endo International racked up defending against opioid claims, tossing nearly all allegations with leave to amend, but greenlighting an indemnification claim.
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September 30, 2025
Spirit Airlines Brass Face Investor Suit Over Pre-Ch. 11 Claims
The CEO and chief financial officer of embattled budget airline Spirit face proposed shareholder class action claims that they misled investors about the company's prospects after its emergence from bankruptcy in March, only to announce months later that it had sought Chapter 11 protection once again.
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September 30, 2025
HSBC Gets $324M Claims Tossed In Row With Madoff Trustee
A New York bankruptcy judge has thrown out $324 million of claims against London-based HSBC and its affiliates that were brought by the trustee overseeing the liquidation of Bernie Madoff's bankruptcy estate, finding the claims in an amended complaint do not relate back to claims in an earlier complaint.
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September 30, 2025
3rd Circ. Mulls Liens On Casino Revenue In Pa. City's Ch. 9
The Third Circuit Court of Appeals on Tuesday pressed attorneys for Delaware County and municipal bondholders on why their liens on city-generated revenues carried forward when the Pennsylvania city of Chester filed for bankruptcy in 2022.
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September 30, 2025
Real Estate Mogul Invited To Settle Fraud, Wage Suit For $40M
A Chapter 7 trustee and a minority shareholder have offered to drop a sprawling lawsuit against a New York and Connecticut real estate mogul and other company leaders in exchange for $40 million, less than two months after convincing a judge to tie up $51.2 million of the defendants' assets as the contract, fraud and wage case moves forward.
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September 30, 2025
Hooters Gets OK To Exit Bankruptcy, Shift To Franchise Model
A Texas bankruptcy judge Tuesday approved restaurant chain Hooters of America's plan to sell more than 100 restaurants to a group of franchisees and exit Chapter 11, confirming the debtor's reorganization plan weeks after ruling on a royalty dispute in the case.
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September 30, 2025
Education Tech Co. Anthology Hits Ch. 11 With Over $1B Debt
Anthology Inc., a software company in the educational technology space, filed for Chapter 11 protection in a Texas bankruptcy court with more than $1 billion in debt, saying it intends to sell parts of its business and restructure the rest.
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September 29, 2025
Merit Street Ch. 11 Judge Shares Dismissal Evidence Concern
The bankruptcy judge presiding over the Chapter 11 case of Merit Street Media expressed his concerns Monday over some of the evidence presented during a multi-day trial over motions to dismiss the company's bankruptcy, saying some testimony caused him to lose sleep.
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September 29, 2025
Supreme Court Considers 7 Patent Petitions
The U.S. Supreme Court held its first conference Monday, presenting the justices with several petitions of interest to patent practitioners before the court's new term kicks off next week.
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September 29, 2025
In Chancery, Bankrupt First Brands Accused Of Deal Breach
Automotive manufacturer Grammer Inc. filed a suit in the Delaware Chancery Court accusing APC Parent LLC and guarantor First Brands Group, which filed for Chapter 11 protection on Sunday, of breaching multiple agreements and withholding more than $20 million in payments involved with a $40 million merger.
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September 29, 2025
Cayman Liquidators Lack Standing On All Claims In SVB Case
A New York bankruptcy judge Monday found the liquidators of Silicon Valley Bank's Cayman Islands branch lacked standing in their bid to bring some $944 million in claims, ruling that the officials failed to timely file adversary complaints and proofs of claim in the case.
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September 29, 2025
Claire's To Sell 156 UK Stores In Ch. 11
Jewelry retailer Claire's has secured a sale for some of its business in the U.K. and Ireland to private equity firm Modella Capital, the company's British restructuring administrator announced Monday.
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September 29, 2025
Yale Unit Will Pay $45M To End Failed Hospitals Sale Dispute
Yale New Haven Health Services Corp. has agreed to pay $45 million to hospital operator Prospect Medical Holdings Inc. to conclude their legal dispute over a failed $435 million sale of three Connecticut hospitals, according to a motion filed in Texas bankruptcy court.
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September 29, 2025
Parts-Maker First Brands Files Ch. 11 With Over $10B In Debt
Auto parts maker First Brands Group filed for Chapter 11 protection late Sunday in Texas bankruptcy court with more than $10 billion in debt and said it had secured $1.1 billion in bankruptcy financing from its creditors to keep the business running through the case.
Expert Analysis
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Series
Law School's Missed Lessons: Mastering Discovery
The discovery process and the rules that govern it are often absent from law school curricula, but developing a solid grasp of the particulars can give any new attorney a leg up in their practice, says Jordan Davies at Knowles Gallant.
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Series
Playing Guitar Makes Me A Better Lawyer
Being a lawyer not only requires logic and hard work, but also belief, emotion, situational awareness and lots of natural energy — playing guitar enhances all of these qualities, increasing my capacity to do my best work, says Kosta Stojilkovic at Wilkinson Stekloff.
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Crisis Management Lessons From The Parenting Playbook
The parenting skills we use to help our kids through challenges — like rehearsing for stressful situations, modeling confidence and taking time to reset our emotions — can also teach us the fundamentals of leading clients through a corporate crisis, say Deborah Solmor at the Wisconsin Alumni Research Foundation and Cara Peterman at Alston & Bird.
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Immunity Waiver Ruling A Setback For Ch. 7 Trustees
While governmental units should welcome the U.S. Supreme Court's recent decision in U.S. v. Miller restricting the reach of the Bankruptcy Code's sovereign immunity waiver, Chapter 7 trustees now have a limited ability to maximize bankruptcy estates, says Dan Prieto at Jones Day.
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Series
Adapting To Private Practice: From NY Fed To BigLaw
While the move to private practice brings a learning curve, it also brings chances to learn new skills and grow your network, requiring a clear understanding of how your skills can complement and contribute to a firm's existing practice, and where you can add new value, says Meghann Donahue at Covington.
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Top 3 Litigation Finance Deal-Killers, And How To Avoid Them
Like all transactions, litigation finance deals can sometimes collapse, but understanding the most common reasons for failure, including a lack of trust or a misunderstanding of deal terms, can help both parties avoid problems, say Rebecca Berrebi at Avenue 33 and Boris Ziser at Schulte Roth.
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How Attys Can Use A Therapy Model To Help Triggered Clients
Attorneys can lean on key principles from a psychotherapeutic paradigm known as the "Internal Family Systems" model to help manage triggered clients and get settlement negotiations back on track, says Jennifer Gibbs at Zelle.
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3 Steps For In-House Counsel To Assess Litigation Claims
Before a potential economic downturn, in-house attorneys should investigate whether their company is sitting on hidden litigation claims that could unlock large recoveries to help the business withstand tough times, says Will Burgess at Hilgers Graben.
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Negotiating Triparty Hotel Agreements To Withstand Risk
Brewing economic uncertainty in the hospitality industry underscores the importance of subordination, nondisturbance and attornment agreements, and hotel managers should tightly negotiate these agreements to ensure remedies will not disturb key rights, say attorneys at Sidley.
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J&J's Failed 3rd Try Casts Doubt On Use Of 'Texas Two-Step'
A Texas bankruptcy court recently rejected Johnson & Johnson's third attempt to use Chapter 11 to resolve liabilities from allegations of injuries from using talcum powder, suggesting that the U.S. Supreme Court's limitations on nondebtor releases, from 2024's Purdue Pharma ruling, may prove difficult to evade, say attorneys at Cadwalader.
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Series
Teaching College Students Makes Me A Better Lawyer
Serving as an adjunct college professor has taught me the importance of building rapport, communicating effectively, and persuading individuals to critically analyze the difference between what they think and what they know — principles that have helped to improve my practice of law, says Sheria Clarke at Nelson Mullins.
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Series
Adapting To Private Practice: From DOJ Enviro To Mid-Law
Practitioners leaving a longtime government role for private practice — as when I departed the U.S. Department of Justice’s environmental enforcement division — should prioritize finding a firm that shares their principles, values their experience and will invest in their transition, says John Cruden at Beveridge & Diamond.
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Addressing D&O Allocation Questions Amid Shifting Economy
As increasing global insolvency this year may lead to an increase in directors and officers insurance claims, businesses should review their policies' allocation provisions to avoid negotiating how coverage will apply to covered and uncovered claims during a suit, say attorneys at Reed Smith.
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Legal Ethics Considerations For Law Firm Pro Bono Deals
If a law firm enters into a pro bono deal with the Trump administration in exchange for avoiding or removing an executive order, it has an ethical obligation to create a written settlement agreement with specific terms, which would mitigate some potential conflict of interest problems, says Andrew Altschul at Buchanan Angeli.
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Cannabis Deregulation Raises Bankruptcy Access Questions
Attorneys at Thompson Coburn explore why cannabis companies have been historically prohibited from filing for bankruptcy, certain exceptions to the general rule, and the potential effects of federal deregulation on such companies' bankruptcy eligibility.