The trustee representing the once iconic but now bankrupt New England Confectionery Co., better known as Necco, sued the company’s board of directors Friday in Massachusetts federal court alleging they committed a gross breach of fiduciary duty by ignoring a promising buyout offer in order to benefit conflicted board members.
The court-appointed receiver for companies linked to a Chilean fugitive who U.S. securities regulators say bilked investors out of $7.4 million asked a Florida federal court on Friday to approve hundreds of thousands of dollars in clawback settlements she has reached with various parties.
Woodbridge filed an objection on Thursday to the $14 million wrongful termination claim asserted by a former employee who said she was mistreated for being a transgender woman, saying the claim seeks unreasonable damages and should be subordinated amid the company’s Chapter 11 proceedings.
Unsecured creditors objected Friday to an attempt by Harvey Weinstein and defendants in one of his sexual assault cases in New York federal court to lift the stay in The Weinstein Co.'s Chapter 11 in Delaware, claiming such a move could leave the bankruptcy estate insolvent.
Nonprofit hospital chain Verity Health System of California Inc. Friday filed for Chapter 11 in a California bankruptcy court, saying it needs to sell the six hospitals it operates to escape more than a billion dollars in bond debt and pension liabilities.
Judge Brett Kavanaugh's confirmation hearing before the Senate Judiciary Committee starting Tuesday promises to be one of the most public spectacles of his career, with the D.C. Circuit jurist taking a step into the spotlight on his path toward replacing retired Justice Anthony Kennedy on the U.S. Supreme Court.
Bankrupt shoe maker Aerogroup International Inc. is suing fashion conglomerate Global Brands Group Holding Ltd. for pulling out of a deal to purchase it 11 minutes into the hearing where that deal was supposed to be confirmed, leading to a last-minute fire sale that Aerogroup says cost it $30 million.
The bitter, monthslong debate over what to do with two putative WARN Act class actions against Westinghouse Electric took another turn Wednesday, as counsel for one set of plaintiffs asked to have both suits transferred to South Carolina, while their counterparts demanded the suits stay put in New York bankruptcy court.
Applebee’s restaurant franchisee RMH Franchise Holdings Inc. told a Delaware bankruptcy judge Thursday that it was making progress in mediation talks with its lenders and had their consent to continue accessing their cash collateral while sale and plan talks continue.
The Ninth Circuit opened the door for awarding damages to an Oregon couple who said they suffered emotional distress when the IRS unlawfully sent them collection notices after they had filed for bankruptcy, ruling Thursday that the government had waived immunity to such damages.
Pacific Drilling SA received bankruptcy court approval Thursday to implement a performance incentive plan that could reward 11 executives with up to nearly $9.6 million in bonuses, but was told to refine a commitment agreement for $300 million in second-lien financing for its proposed Chapter 11 exit.
A White Plains, New York-based developer was arrested Thursday for what Manhattan federal prosecutors call a lengthy scheme to defraud backers of his luxury real estate plays, charges that came after investors sued, later pushing him into bankruptcy, to recover at least $17 million they say they are owed.
The former CEO of Life Partners Holdings Inc. disputed a Texas federal magistrate judge’s call for him to pay $5 million in fines, saying Wednesday that the judge got the law wrong and gave his stamp of approval to the U.S. Securities and Exchange Commission’s “trophy-hunting” mindset.
Long-running antitrust claims against American Airlines parent AMR Corp. over its 2013 acquisition of US Airways will advance to trial in New York bankruptcy court, a judge ruled Wednesday, determining that some of the customer claims over diminished airline competition merit further inquiry.
Following a damning report that three U.S. jewelry companies owned by billionaire Nirav Modi participated in India's largest ever bank fraud, a New York bankruptcy judge ruled Wednesday that the former president of those companies cannot block subpoenas probing his knowledge of the alleged scam.
Bankrupt Brookstone Holdings Corp. scrambled Wednesday to digest a new $40 million offer to serve as a stalking horse for the company’s Delaware Chapter 11, after Bluestar Alliance LLC jumped the fence and filed its bid directly onto a public court docket without being processed and filed by the debtor.
Viacom International Inc. objected Wednesday to a proposed settlement among debtor The Weinstein Co., its buyer Lantern Entertainment LLC and video streaming service Netflix Inc., saying the agreement strips the media giant's ability to recover $9 million it is owed for financing the production of the television series “Scream.”
A trust tasked with securing payouts on asbestos injury claims against Asarco LLC can pursue the full limits of excess policies that defunct Midland Insurance Co. issued to the mining company in a single year, a New York judge has ruled, refusing to restrict the insurer’s coverage to a proportional share of the trust’s total recovery.
The U.S. Trustee has urged a Virginia bankruptcy court to reject Toys R Us’ latest Chapter 11 plan disclosure, saying the company is trying to force approval of a plan that shortchanges priority claimholders with a “death trap” settlement they had no chance to object to.
Attorneys for Tintri Inc. told a Delaware bankruptcy judge Wednesday that a two-day Chapter 11 auction had yielded a price for its assets that exceeded its stalking horse baseline bid by more than $13 million.
A New Jersey state appellate court's decision in Jimenez v. Jimenez shows that when dealing with property owned by a husband and wife as tenants by the entirety, New Jersey law can impose very serious ramifications on a judgment creditor’s efforts to collect or levy on that property, says Bruce Buechler of Lowenstein Sandler LLP.
Courts have usually provided little guidance regarding problems that might affect the use of claims purchased in bankruptcy cases for strategic reasons. With three recent decisions, this dynamic has begun to change, say Nancy Peterman and John Elrod of Greenberg Traurig LLP.
When the next downturn occurs, bankruptcies and opportunities for investors to pick up distressed assets on the cheap will follow. Where those assets include customer lists or other personal information protected by new privacy laws in the EU and California, those sales will become more difficult, say Walt Sapronov and Paul Kouroupas of Sapronov & Associates PC.
People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.
Five years after the city of Detroit filed for Chapter 9 bankruptcy, experts look at the financial troubles of Chicago and other U.S. cities in this special series.
An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.
As we reflect on the five years since Detroit’s bankruptcy filing, Pennsylvania’s experience in intervening in its municipalities’ financial distress provides some useful insights on the problems plaguing municipalities as well as lessons for states, says professor Juliet Moringiello of Widener University Commonwealth Law School.
As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.
Michigan has taken a very aggressive approach to addressing municipal fiscal insolvency. But the state's emergency manager law fails to consider the unintended consequences of short-term financial adjustments, as seen in the case of Flint, say Eric Scorsone and Samantha Zinnes of Michigan State University.
Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.