• March 7, 2018

    Consultant Targeted In NJ Water Agency Mismanagement Suit

    A defunct Newark water agency sought approval Tuesday from a New Jersey bankruptcy judge to add a political consultant and her firm as defendants in its lawsuit over unlawful and wasteful conduct at the organization, following her admission to taking part in a kickback scheme there.

  • March 7, 2018

    Patent Adversary Disputes Hobbico Ch. 11 Sale Plans

    A Texas-based firm that holds patents for radio-controlled model and drone components objected Wednesday to Hobbico Inc. plans for an all-asset Chapter 11 sale in Delaware, citing its ongoing federal infringement suit against Hobbico.

  • March 7, 2018

    BCBS Affiliates Can't Dismiss Hospital Benefits Payment Suit

    A Texas magistrate judge on Tuesday said a pair of Blue Cross Blue Shield plan administrators can't escape claims they underpaid five bankrupt and two nonbankrupt hospitals in the Victory Medical Center chain by $34.5 million on jurisdictional grounds, but that they will have the chance to switch venues to their home states.

  • March 7, 2018

    CRS Trustee Settles Claims Against Auditor For $2M

    Accounting firm Crowe Horwath LLP will pay $2.1 million to settle a bankruptcy trustee's claims over its auditing work for human resources contractor Corporate Resource Services Inc., according to papers filed in New York bankruptcy court on Tuesday.

  • March 7, 2018

    Puerto Rico Atty Fees Of $50M OK'd Amid Billing Concerns

    The attorneys and other professionals working on the Puerto Rican public’s dime in landmark court proceedings to restructure the territory’s crippling debt had their first applications for fees authorized Wednesday, totaling near $50 million, after being warned about billing practices and the close scrutiny they are under.

  • March 7, 2018

    Bancomext Sues M&G In Ch. 11, Probes $550M Transfers

    Mexico's Bancomext export-import bank launched a Delaware bankruptcy court suit against M&G USA Corp., its parent and affiliates on Wednesday, accusing them of fraudulently shifting as much as $550 million from nondebtor plants in Mexico to a giant plastics complex in Corpus Christi, Texas.

  • March 6, 2018

    Puerto Rico Regulator Wants Power In PREPA Restructuring

    Looking to draw jurisdictional boundaries, Puerto Rico's energy regulator has filed an adversary complaint against the island’s electric utility and the federal board shepherding the territory through its historic debt crisis, saying it must authorize any restructuring changes that impact its areas of oversight.

  • March 6, 2018

    Fyre Festival Organizer Cops To Fraud, Faces 10 Years

    The 26-year-old entrepreneur whose plans for a music festival in the Bahamas crashed and burned pled guilty to two counts of fraud in New York federal court Tuesday as part of a plea deal that could land him behind bars for eight to 10 years.

  • March 6, 2018

    SEC Rebukes Ponzi Suspect's Bids To Escape Case, Penalties

    The U.S. Securities and Exchange Commission urged a Florida federal judge Tuesday to deny Ponzi scheme suspect Robert H. Shapiro's bids to dismiss its case or to avoid having to disgorge any ill-gotten gains, describing his argument for the latter as “disingenuous and farcical.”

  • March 6, 2018

    HCR Manorcare Approved For Quick Trip Through Bankruptcy

    Long-term health care provider HCR Manorcare Inc. received bankruptcy court approval Tuesday in Delaware for a rapid Chapter 11 process that will see its prepackaged plan of reorganization up for confirmation in five weeks.

  • March 6, 2018

    Examiner To Be Tapped In Cenveo Ch. 11 To Probe Payments

    A New York bankruptcy judge said on Tuesday he will appoint an examiner to help creditors look into alleged payments to insiders at envelope-maker Cenveo Inc., but added that he wouldn’t authorize a wider inquiry.

  • March 6, 2018

    GM Seeks Stay In Mich. Groundwater Contamination Suit

    General Motors LLC asked a Michigan federal judge on Monday to stay a putative class action alleging one of its testing facilities caused salt to seep into the surrounding groundwater, saying a New York bankruptcy court must first determine the extent to which the suit violates the company’s 2009 bankruptcy sale agreement.

  • March 6, 2018

    RCS Trust Seeks To Reargue Tossed AR Cap Breach Claim

    The creditor trust formed during RCS Capital Corp.’s $1 billion bankruptcy urged a Delaware vice chancellor Tuesday to allow reargument of a dismissed lawsuit claim that controlling investor Nicholas Schorsch’s AR Capital overstaffed RCS and forced overspending that drove it into Chapter 11.

  • March 6, 2018

    Defense Bar, Law Prof Side With Ex-CEO Over GE Legal Tab

    An American criminal defense organization and a Georgetown University professor have waded into a U.S. Supreme Court case over whether defendants should have to repay victims’ attorney’s fees under the Mandatory Victim Restitution Act, arguing that law was not written to include hefty legal bills.

  • March 6, 2018

    Shoemaker Hits Ch. 11 With Plans To Negotiate Rent Deals

    Comfort-shoe maker and retailer The Walking Company hit Chapter 11 Tuesday in Delaware with plans to renegotiate leases with the landlords of its store locations in order to secure a capital injection to help it survive post-bankruptcy.

  • March 6, 2018

    High Court Ruling Questions Ch. 11 'Insider' Status Test

    In ruling that appellate courts should defer to a bankruptcy court’s factual findings when hearing challenges over a creditor’s insider relationship to a debtor, the U.S. Supreme Court refused to endorse an “arm’s length” test used in bankruptcies, suggesting other evaluative standards may be better, according to experts.

  • March 6, 2018

    Asbestos Suits Not Barred By Ch. 11 Plan, 3rd Circ. Told

    The victims of asbestos-related ailments stemming from a Montana mine operated by bankrupt W.R. Grace told the Third Circuit Tuesday that its claims against the chemical maker’s insurers aren’t barred by its Chapter 11 plan, because they stem solely from the insurers’ alleged misconduct.

  • March 6, 2018

    Weinstein Co. Sale Collapses Over 'Disappointing' Info

    The Weinstein Co.’s proposed $500 million sale to a group of investors led by former Small Business Administration head Maria Contreras-Sweet has fallen through, the investors said Tuesday, delivering the latest turn in a roller coaster ride that had the company warning last month of impending bankruptcy.

  • March 6, 2018

    Barnes & Thornburg Opens Office With Ex-Cooley Partner

    Barnes & Thornburg LLP has hired a former Cooley LLP partner experienced in representing life sciences and technology clients in bankruptcies, complex transactions and debt financings to open an office in San Diego, making it the firm's second California location, Barnes & Thornburg said Monday.

  • March 6, 2018

    9th Circ. Revives Loan Advice Suit Against Heller Ehrman

    A California federal bankruptcy judge erred when he decided the relationship between Heller Ehrman LLP and former client Paravue Corp. “conclusively terminated” in 2007 and started the clock running on Paravue’s $20 million malpractice suit, the Ninth Circuit said Monday.

Expert Analysis

  • The Bankruptcy Eligibility Of Quasi-Government Entities

    James Heiser

    In cases where a not-for-profit corporation is closely related to or controlled by a governmental unit, a creditor may challenge the corporation’s eligibility to file for bankruptcy. An Illinois bankruptcy judge's decision in Lombard Public Facilities is a reminder that eligibility is a fact-specific inquiry, say attorneys with Chapman and Cutler LLP.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.

  • Per Plan Or Per Debtor? New Ruling Has Precedential Value

    Luke Barefoot

    While lower courts remain split on the question, the Ninth Circuit in Transwest Resort Properties recently provided the first circuit-level ruling on whether the impaired accepting class requirement applies to bankruptcy plan confirmation on a per-plan or a per-debtor basis. The opinion will have persuasive weight for lower courts that have not previously weighed in, say Luke Barefoot and Dan Soltman of Cleary Gottlieb Steen & Hamilton LLP.

  • Opinion

    Evolving Due Process In The Digital Age

    Stephen Kane

    Because courts have not modernized as quickly as companies like Amazon, Tesla and Apple, Americans are becoming increasingly dissatisfied, but technological innovations may be able to help Americans access their due process, says Stephen Kane of FairClaims.

  • Under New Tax Law, Time Is Running Out For Ponzi Victims

    Kevin Diamond

    Counsel representing victims of Ponzi schemes should note that the Tax Cuts and Jobs Act eliminates the theft tax loss provisions of the Internal Revenue Code for tax years after 2017. The time to act is now, before this important tax benefit goes away, says Kevin Diamond of Rico Murphy & Diamond LLP.

  • The Meaninglessness Of 'Disinterested'

    Richard Roth

    The Black Elk bankruptcy — related to the criminal indictment and upcoming trial of seven former Platinum Partners and Black Elk executives — involved a claimed disinterestedness that seems to indicate that the Bankruptcy Code’s disinterested requirement is something seasoned counsel can work around, says Richard Roth, a corporate and securities attorney.

  • Centers Of Influence Are Key To Small Law Firm Rainmaking

    Frank Carone

    In a national survey of 378 small law firms, partners ranked client referrals as the most important means of business development. Yet studies reveal that while professional services providers obtain most new clients from existing client referrals, their best new clients — the ones providing the largest pool of investable assets — overwhelmingly come from “centers of influence,” says Frank Carone, an executive partner at Abrams Fensterman.

  • Feature

    From Law Firm To Newsroom: An Interview With Bob Woodruff

    Randy Maniloff

    Lawyers who have left the traditional practice for perceived greener pastures are many. But the circumstances surrounding broadcast journalist Bob Woodruff’s departure are unique. Like none I’ve ever heard, says Randy Maniloff of White and Williams LLP.

  • Series

    Judging A Book: Kendall Reviews 'On The Jury Trial'

    Judge Virginia Kendall

    As someone who spent half her days last year on the bench presiding over trials, I often find the alarmist calls to revamp the jury trial system a tad puzzling — why is making trial lawyers better rarely discussed? Then along comes a refreshing little manual called "On the Jury Trial: Principles and Practices for Effective Advocacy," by Thomas Melsheimer and Judge Craig Smith, says U.S. District Judge Virginia Kendall of the Northe... (continued)

  • Do I Need New Trial Counsel? 9 Questions To Ask

    Russell Hayman

    Initial selection of defense counsel is usually made at the outset of litigation, long before it is known whether the case may actually proceed to trial. Attorneys with McDermott Will & Emery discuss questions in-house lawyers should consider when deciding whether their litigation counsel should remain lead trial counsel in a case proceeding to trial.