Two lawyers who say their livelihoods were destroyed by the Consumer Financial Protection Bureau’s crackdown on debt-relief firm Morgan Drexen Inc. told a California federal court Thursday that there is no good reason to dismiss their $25 million suit against the regulator.
The federal bankruptcy watchdog has asked a New Jersey bankruptcy court to pull the plug on defunct children’s products manufacturer Kid Brands Inc., either by converting its Chapter 11 case to a Chapter 7 liquidation or by dismissing it altogether.
An Illinois bankruptcy judge on Thursday approved a state of Mississippi claim for $3.02 million in Caesars Entertainment Operating Co. Inc.'s Chapter 11 reorganization, giving final approval to the parties' settlement stemming from the state's original request for $26.95 million.
Loyal customers of Toys R Us were given reassurance Thursday that the bankrupt retail giant will make good on gift cards and other consumer-friendly deals after it received court permission to maintain its customer programs, shortly after gaining access to $2.2 billion in post-petition financing.
A bankrupt information technology company whose former top executives face criminal fraud charges for allegedly plundering their company’s accounts and trying to hide it won’t have to pay a cent under a settlement filed by the U.S. Securities and Exchange Commission in Illinois federal court on Wednesday.
The liquidating trustee of long-bankrupt Washington Mutual Inc. has hit back against Grant Thornton LLP’s bid for sanctions over an unpaid $5 million contingency fee, telling a Delaware bankruptcy judge the fee was only approved because the firm lied to the court at an earlier hearing.
The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.
The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.
MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.
Caught short by a parent company’s failure to complete a $200 million post-confirmation Chapter 11 investment, Optima Specialty Steel Inc. on Wednesday launched a modified reorganization plan that erases the corporate parent’s equity.
While the future for Toys R Us Inc. looks uncertain now, the company’s performance over the crucial holiday season will go a long way toward determining its long-term prospects, with experts pointing to the timing of and rationale for the company's bankruptcy filings this week.
Holland & Knight LLP has agreed to pay $5 million to escape a malpractice suit brought by the bankruptcy trustee for a Miami hotel condominium project over its alleged failure to tell one of the condo project owners about the other’s planned fraud.
Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.
An Illinois bankruptcy judge Wednesday ordered celebrity British chef Gordon Ramsay to turn over documents covering plans for restaurants with Caesars, saying that the television personality is at the center of a dispute involving the casino giant as it nears the end of its Chapter 11 saga.
The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.
The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.
The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.
Bankrupt oil and gas driller Adams Resources Exploration Corp. received court approval Wednesday in Delaware for the sale of two additional well interests after an earlier sale generated proceeds of more than $5 million.
A New York bankruptcy judge on Tuesday allowed a woman allegedly burned by a defectively designed gas tank to move forward with her second attempt to hold General Motors LLC liable.
New York law firm Ressler & Ressler must face a trimmed-down defamation lawsuit from an outside attorney claiming the firm convinced Tradewinds Airlines Inc. to dump her as its special litigation counsel, according to a federal judge’s ruling Tuesday.
When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.
Debtors in bankruptcy have often used the ambiguity surrounding the meaning of the word “received” as a tool to fight against administrative expense claims. Earlier this month, the Third Circuit issued an opinion in the case of World Imports that will likely be highly influential on this matter, says Mark Sherrill of Eversheds Sutherland.
To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.
Law firm management should understand the client’s reasons for requesting an alternative fee arrangement, and whether approving the fee will help grow the relationship with the client, say attorneys with WilmerHale.
Having embraced the notion that the right space can reinforce the right firm culture, law firm leaders have been evaluating real estate primarily for its physical properties. However, it's hard to be collegial, even in the coolest of in-house coffee bars, if your cost structure is untenable, says Craig Braham of Advocate Commercial Real Estate Advisors LLC.
Litigation finance is increasingly used in the bankruptcy arena to help generate meaningful recoveries. In addition to transactions in which a finance provider purchases an interest in a high-value judgment from the estate, litigation finance can be used in a variety of bankruptcy scenarios, says Travis Lenkner of Burford Capital LLC.
Cases are built on evidence and evidence comes from discovery. But discovery is largely a voluntary process. Serving a document subpoena on a third party can be an efficient and creative way to fill in the gaps that may exist in the productions of opposing parties, says Wyatt Dowling of Yetter Coleman LLP.
PEM Entities v. Levin, which the U.S. Supreme Court will hear next term, potentially could provide the court with a coherent rationale to start resolving the uncertainty it created six years ago in Stern v. Marshall regarding the constitutional authority of bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.
Lawyers move to New York City to work on some of the most sophisticated work the legal market has to offer. This exposure and experience is an amazing asset and many of the skills developed will make associates very marketable in the event they consider relocating to another market. However, this isn’t always the case, says Jacqueline Bokser LeFebvre of Major Lindsey & Africa.
Only a handful of the largest U.S. law firms are led by women. Here, in their own words, are perspectives from Shook Hardy & Bacon Chair Madeleine McDonough, Crowell & Moring Chair Angela Styles, Morgan Lewis & Bockius Chair Jami Wintz McKeon and Goodwin Procter Chair Emeritus Regina Pisa.