The government of Puerto Rico contributed to the island’s crippling debt crisis by implementing short-term fixes instead of long-term solutions, and did not attempt to evade a constitutional debt limit, according to a 600-page report released by the federal board charged with rehabilitating Puerto Rico's finances.
A group of Delta Air Lines Inc. pilots can't collect $544 million from the Pension Benefit Guaranty Corp. over its alleged mishandling of their pension plan after Delta’s bankruptcy, the D.C. Circuit ruled Tuesday, saying the agency had no further obligation to the pilots after paying out their benefits.
Senior secured creditors of bankrupt accessory retailer Claire’s Stores Inc. filed an adversary complaint Tuesday in Delaware saying second-lien creditor Oaktree Capital Management LP breached intercreditor agreements by trying to derail the debtor’s Chapter 11 plan and seeking to challenge the secured liens of other creditors.
Lawyers for General Motors told a Manhattan federal judge at a conference on Tuesday that fewer than 1,000 individuals' claims remain in the long-running multidistrict litigation over the automaker’s dangerous ignition-switch defect, although it isn’t clear when the cases will finally wrap up.
A Delaware federal court Tuesday refused to dismiss a former Fisker Automotive board member from a shareholder suit accusing the company of lying about its shaky financial footing prior to its 2013 bankruptcy, but it did dismiss a company owned by the board member.
The Chapter 7 trustee for scandal-plagued Cambridge Analytica reached a tentative deal in New York bankruptcy court Tuesday to hand over most of the documents in his possession to a group of Facebook users, who are suing the social media giant and the political consulting shop for allegedly misusing their personal data.
The First Circuit on Monday agreed to dismiss a tardy retaliation lawsuit filed against Lehman Brothers Inc. by a communications specialist who claimed she was fired in 2008 from the company's former Neuberger Berman unit for reporting that the subsidiary was falsifying information ahead of its bankruptcy.
Investors in Canadian ice maker Arctic Glacier International Inc. are barred from pursuing claims that they are owed a dividend from the sale of assets under the company’s bankruptcy reorganization plan, because the plan included provisions shielding the business from such liability, the Third Circuit has ruled.
Proposed releases for bankrupt furniture maker Heritage Home Group in a final order for its post-petition financing package drew an objection Monday in Delaware from the liquidating trustee of former debtor Furniture Brands International Inc. because they may impair potential claim the trust has against Heritage.
Safety National Casualty Corp. can’t arbitrate its claims that it doesn’t have to pay out a $5 million excess policy to help fund Garlock Sealing Technology’s $480 million asbestos settlement, after a North Carolina federal court declared an arbitration clause in the policy void on Monday.
Bankrupt musical instrument maker Gibson Brands Inc. told a Delaware judge Monday that creditor GSO Capital agreed to put off a dispute over its claim until after the debtor's Chapter 11 plan is confirmed because the process for determining the exact amount of the claim would take too much time.
New York City construction heavyweight Navillus Tile Inc. has reached a deal with the unions that forced it into bankruptcy last year with a devastating $76 million judgment, paving the way for an exit from Chapter 11 as early as October, the concrete contractor says.
Pacific Drilling SA announced Monday it has secured the approval of its majority shareholder for a Chapter 11 restructuring plan, putting the company on track to shed $3 billion in debt after more than a year of talks.
The U.S. Securities and Exchange Commission accused five people and four companies Monday with allegedly selling retail investors hundreds of millions of dollars in unregistered securities of the now-bankrupt Woodbridge Group of Companies LLC, which collapsed last year after the SEC charged it with running a $1.2 billion Ponzi scheme.
Bowles Rice has resolved a $41 million fight with a title insurer stemming from a troubled coal plant build and averted a trial that was set to start Monday, according to a lawyer involved in the case, heading off what at least one expert said was a sizable threat to the firm in the face of its limited malpractice coverage.
Claire’s Stores Inc. retained exclusive control of its Chapter 11 on Friday, overcoming a move by creditor Oaktree Capital Management to loosen the debtor’s hand and improve prospects for a competing $1.5 billion Oaktree bid for the fashion accessories retailer.
The Seventh Circuit on Friday upheld the dismissal of a bankruptcy trustee's suit against the officers of a defunct bank holding company for keeping a $76 million tax refund instead of disbursing it to the company’s failing banks.
A Florida bankruptcy judge signed off Friday on a $39.1 million sale of a stalled Fort Lauderdale resort partially built with $30 million from the EB-5 immigrant investor visa program.
The ex-CEO of bankrupt Constellation Healthcare Technologies Inc. Thursday asked a New Jersey federal court to dismiss claims he engaged in securities fraud, alleging he is the victim of an investor’s takeover scheme.
As wildfires again ravage swaths of California forests in what has become a deadly summer ritual, the threat of a Pacific Gas and Electric Co. bankruptcy looms over state lawmakers who are hastily debating how to apportion liability for billions of dollars' worth of damage stemming from last year's infernos.
The Tax Cuts and Jobs Act has been lauded as being generally beneficial to corporate taxpayers — but not so for corporate debtors, whose ability to reorganize and emerge under a Chapter 11 plan has been significantly and negatively impacted by the change, say Scott Grossman and Kenneth Zuckerbrot of Greenberg Traurig LLP.
Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.
While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.
Due to the idiosyncrasies of American bankruptcy law, The Weinstein Company's recent bankruptcy filing could cause many of Harvey Weinstein’s accusers to receive pennies on the dollar relative to what they are owed under state and federal laws prohibiting workplace sexual harassment, say Matthew LaGarde and Jessica Westerman of Katz Marshall & Banks LLP.
In a profession notoriously averse to change, it should come as no surprise that there is skepticism about the value of having attorneys perform nonbillable tasks. But U.S. law firms have slowly begun to incorporate knowledge lawyers into their operations — and the trend is likely to continue, says Vanessa Pinto Villa of Hogan Lovells.
For close observers of the Foreign Agents Registration Act, the June 8 release by the U.S. Department of Justice of over 50 FARA advisory opinions was a watershed. These opinions offer an unprecedented glimpse into how the FARA Registration Unit interprets the law, say Brian Fleming and Andrew Herman of Miller & Chevalier Chtd.
In the marijuana industry, there is ambiguity surrounding failing businesses because the product remains illegal under federal law. Brett Theisen of Gibbons PC identifies the credit risks associated with lending to, or working with, a marijuana business and highlights key state law solutions for both debtors and creditors.
The legal industry has already begun to feel the impact of anti-bribery and anti-money laundering requirements. When involved with cryptocurrency trading and remittance, law firms face more than the risk of being perceived as organizations that support money laundering practices, says John Reed Stark of John Reed Stark Consulting LLC.
The U.S. Supreme Court has been asked to clarify in the case of Tempnology the extent to which trademark license rights survive rejection in bankruptcy proceedings. In the meantime, licensees face continued uncertainty on their ability to use licensed trademarks following rejection, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.
Law firms are increasingly accepting cryptocurrency as payment for services. While this might seem innovative and forward-thinking, ironically it is much more of a throwback, says John Reed Stark of John Reed Stark Consulting LLC.