Bankruptcy

  • March 19, 2024

    EV Charging Biz Pitches $400K Ch. 11 Staff Retention Plan

    Charge Enterprises Inc., a company that builds electric vehicle charging stations and other infrastructure, has urged a Delaware bankruptcy judge to let it offer about $400,000 in bonuses to keep a dozen employees the firm deemed critical during its Chapter 11 case.

  • March 19, 2024

    Bankman-Fried's Fraud Left FTX Users Reeling, Letters Say

    Customers of Sam Bankman-Fried's fallen crypto exchange are struggling with financial insecurity, skimping on expenses including food and worrying about their assets, according to victim letters lodged ahead of the FTX founder's sentencing for what prosecutors call an $11 billion fraud.

  • March 18, 2024

    Genesis Gets OK For $21M Deal To End SEC Crypto Loan Suit

    A New York federal judge on Monday approved a $21 million settlement to resolve allegations that bankrupt crypto lender Genesis Global Capital LLC violated the U.S. Securities and Exchange Commission's regulations by selling unregistered securities in a joint partnership with crypto exchange Gemini Trust Co.

  • March 18, 2024

    Genesis Defends Crypto Payments At Ch. 11 Plan Hearing

    Cryptocurrency lender Genesis Global Holdco Monday told a New York bankruptcy judge its proposal to distribute cryptocurrency to its customers is both fair and legal as the hearing on its Chapter 11 liquidation plan wound down.

  • March 18, 2024

    Voyager Investors Suing Mark Cuban Seek Class Cert.

    Investors suing billionaire Mark Cuban over his role in promoting now-bankrupt Voyager Digital Ltd. have pushed for class certification and urged the court to rule that Voyager was selling unregistered securities.

  • March 18, 2024

    ​​​​​​​Amyris Gets OK To Settle Pot Co.'s $15M Trade Secret Suit

    A Delaware bankruptcy judge has approved biotechnology company Amyris' $15.1 million settlement with cannabinoid manufacturer Lavvan, resolving yearslong litigation and arbitration proceedings alleging the debtor misused its then-business partner's trade secrets.

  • March 18, 2024

    Kirkland Wants To Escape Suit Over Ex-Judge's Relationship

    Kirkland & Ellis LLP wants to bring down the hammer on a racketeering lawsuit claiming the firm "conspired" to profit from a Texas bankruptcy judge's secret romance scandal, saying the "flimsy" suit should be dismissed, and both the plaintiff and his attorneys at Bandas Law Firm PC should be sanctioned for filing it.

  • March 18, 2024

    Major Lindsey Followed Rules In Sex Assault Suit, Judge Says

    A Chicago-based attorney who represents Major Lindsey & Africa LLC in an ex-employee's New York sexual assault suit did not run afoul of court requirements by sending a letter demanding that she drop the claims, a judge held Monday.

  • March 18, 2024

    Barnes & Thornburg Lands Morris Manning Bankruptcy Team

    Barnes & Thornburg LLP picked up a former Morris Manning & Martin LLP bankruptcy group in Atlanta, the firm announced Monday.

  • March 18, 2024

    Catching Up With Delaware's Chancery Court

    Multimillion-dollar e-cigarette settlements, $4 billion in stock buybacks and a $6.1 million appraisal tweak were among the big-dollar items logged in the Delaware Court of Chancery's ledger last week. Also on the docket: a Panama port project, a news outlet's defamation case, drone disputes and a flood of mail from Tesla shareholders. In case you missed it, here's all the latest from the Chancery Court.

  • March 18, 2024

    Joann Hits Ch. 11 With $1B Secured Debt, Creditor Deal

    Fabric retailer Joann Inc., better known as Joann Fabrics, filed for bankruptcy in Delaware on Monday with $1 billion in secured debt and an agreement with its creditors to trim $505 million from its balance sheet.

  • March 16, 2024

    Up Next At High Court: Gov't Jawboning & Retaliatory Arrests

    The U.S. Supreme Court has a packed oral arguments calendar this week that includes disputes over the Biden administration's work with social media companies to combat misinformation, the appropriate evidence standard for bringing retaliatory arrest claims and whether the federal government can object to a consent decree entered into by three states.

  • March 15, 2024

    Ex-Prisoners Partially Settle Prepaid Card Suit For $2.8M

    Central National Bank NA and a class of former inmates who were charged fees for using the bank's prepaid debit cards from partner Numi Financial reached a $2.8 million settlement following mediation, but the parties have requested the court stay the case while class counsel investigates Numi's potential insolvency.

  • March 15, 2024

    Eletson Creditors Urge Cutting Most Of Reed Smith's Fee Bid

    Eletson Holdings Inc.'s unsecured creditors told a New York bankruptcy judge to cut the "vast majority" of the fees Reed Smith LLP requested for its work on the tanker company's Chapter 11 case because the firm wants nearly $1.9 million for work that didn't help the estate.

  • March 15, 2024

    Peer Street Can Solicit Ch. 11 Plan Votes, Judge Says

    Peer Street told creditors of the company and its entities Friday to expect ballots for their Chapter 11 plan, after a Delaware bankruptcy judge decided the real estate investment platform had disclosed enough information about its proposal for reorganization.

  • March 15, 2024

    Kwok Daughter Says Ch. 11 Judge Can't Hear RICO Suit

    The daughter of Chinese exile Ho Wan Kwok has implored a Connecticut bankruptcy judge to punt to the district court the civil Racketeer Influenced and Corrupt Organizations claims that a Chapter 11 trustee for her father leveled, contending they raise "significant issues involving non-bankruptcy federal law."

  • March 15, 2024

    Judge Voids Boy Scouts Ch. 11 Ballots For Likely Forgery

    Three Chapter 11 plan ballots that opted for a quicker but smaller settlement payout in the Boy Scouts of America's bankruptcy should be tossed, a Delaware bankruptcy judge has ruled, finding they were likely forged.

  • March 15, 2024

    Cybersecurity Co. Co-Founder Must Face SEC Fraud Claims

    A New York federal judge determined that the U.S. Securities and Exchange Commission has sufficiently alleged that the co-founder of a now-bankrupt cybersecurity company raked in over $6.2 million in ill-gotten gains by participating in a fraudulent securities scheme that defrauded investors of over $100 million.

  • March 15, 2024

    Camden Diocese Gets OK For Ch. 11 Plan On 4th Attempt

    The Roman Catholic Diocese of Camden has won approval from a New Jersey bankruptcy judge for its plan to settle sexual abuse claims for $87.5 million after three prior versions of the plan were rejected over insurance carrier objections.

  • March 15, 2024

    Feds Say Bankman-Fried Deserves 40 To 50 Years In Prison

    Sam Bankman-Fried should spend 40 to 50 years in prison for engaging in a massive fraud that sank his FTX crypto exchange, Manhattan federal prosecutors argued Friday, pushing back against a request by defense counsel for a sentence of roughly six years.

  • March 14, 2024

    Lehman Brothers Can't Undo Trial Loss Over Crisis-Era CDS

    A New York appeals court on Thursday affirmed a bench trial loss Lehman Brothers' bankrupt European unit suffered last year in a suit attempting to claw back nearly half a billion dollars from Assured Guaranty over losses on credit default swaps tied to the 2008 financial crisis.

  • March 14, 2024

    72-Year Weil Alum, 'True Visionary' Corporate Atty Dies At 97

    Ira M. Millstein, the legendary Weil Gotshal & Manges LLP senior partner who helped save New York City from bankruptcy in the 1970s and used his bipartisan connections to help smooth Ruth Bader Ginsburg's path to the federal judiciary, has died, the firm said Thursday.

  • March 14, 2024

    PE Firm Riverspan Agrees To Pay $32M For Barretts' Assets

    Barretts Minerals Inc. told a Texas bankruptcy court Thursday that a unit of private equity firm Riverspan Partners had won an auction for its assets with a $32 million cash offer, money that the talc-mining company intends to use to fund a settlement trust for alleged victims of asbestos exposure. 

  • March 14, 2024

    Near Intelligence's Ch. 11 Plan Gets Court's Approval

    A Delaware bankruptcy judge on Thursday confirmed consumer data platform Near Intelligence's Chapter 11 plan, which went through without objection after negotiations resolved outstanding concerns.

  • March 14, 2024

    Ex-Real Estate Exec Accused Of $77M WeWork Stock Fraud

    Manhattan federal prosecutors announced Thursday that the former CEO of real estate investment firm ArciTerra was indicted, alleging he issued a bogus $77 million offer for WeWork shares in an ultimately failed attempt to cash in on call options after juicing the stock price.

Expert Analysis

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • Ch. 12 Ruling Is A Helpful Addition To Interest Rate Case Law

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    In its recent In re: Topp ruling, the Eighth Circuit addressed the question of which rate of interest debtors should pay under a bankruptcy plan, showing that the choice of interest rate plan is a factual issue subject to appellate review for clear error, and not a legal issue subject to de novo review, says Donald Swanson at Koley Jessen.

  • Section 363 Ruling Lines Up With Avoidance Action Precedent

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    While it is safe to say that avoidance actions in bankruptcy cases are the exception, not the rule, when selling assets in a Section 363 sale, the Eighth Circuit’s recent ruling in Simply Essentials’ Chapter 5 case reveals uniformity among courts that have considered the issue, says Daniel Lowenthal at Patterson Belknap.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

  • Series

    Participating In Living History Makes Me A Better Lawyer

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    My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.

  • How Attys Can Weather The Next Disaster Litigation Crisis

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    On the heels of a number of damage catastrophes and ensuing litigation this summer alone, attorneys must recognize that it’s a matter of when, not if, the next disaster — whether natural or artificial — will strike, and formulate plans to minimize risks, including consolidating significant claims and taking remedial measures, says Mark Goldberg at Cosmich Simmons.

  • Opinion

    Private Equity Owners Can Remedy Law Firms' Agency Issues

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    Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.

  • Opinion

    Proving Causation Is Key To Fairness And Justice

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    Ongoing litigation over talc and acetaminophen highlights the important legal distinction between correlation and causation — and is a reminder that, while individuals should be compensated for injuries, blameless parties should be protected from unjust claims, say Drew Kershen at the University of Oklahoma College of Law, and Henry Miller at the American Council on Science and Health.

  • Potential WeWork Bankruptcy May Disrupt Coworking Spaces

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    If WeWork files for bankruptcy, as hinted at in its recent quarterly earnings report, landlords may struggle to take over management of WeWork's coworking spaces, but the coworking industry as a whole is showing some promise in adapting to the market's evolving post-pandemic office needs, says Ann Chandler at Hall Estill.

  • How To Protect Atty-Client Privilege While Using Generative AI

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    When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.

  • What FERC-PJM Negotiations Mean For The Energy Industry

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    Following the aftermath of Winter Storm Elliot, disputes associated with the PJM Interconnection settlement negotiations taking place at the Federal Energy Regulatory Commission have brought to the fore a potential legal minefield arising out of extreme weather events that could lead to commercial risks for power generating companies, say attorneys at Hogan Lovells.

  • How New Lawyers Can Leverage Feedback For Growth

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    Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.

  • Circuit Rulings Confirm Ch. 11 Trustee Fee Refund Trend

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    Recent Ninth and Eleventh Circuit rulings that Chapter 11 debtors are entitled to refunds for unconstitutional bankruptcy trustee fees paid under the Bankruptcy Judgeship Act support a developing trend in debtors' favor, making it likely that courts considering the same question will follow suit, says Adam Herring at Nelson Mullins.

  • Corporate Compliance Lessons From FirstEnergy Scandal

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    Fallout from a massive bribery scheme involving Ohio electric utility FirstEnergy and state officeholders — including the recent sentencing of two defendants — has critical corporate governance takeaways for companies and individuals seeking to influence government policymaking, say attorneys at Wilson Sonsini.

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