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Bankruptcy

  • August 30, 2018

    Ex-NY Developer Busted After Investors Sue For $17M

    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.

  • August 30, 2018

    $5M Fine Is Excessive, Ex-Life Partners CEO Tells Judge

    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.

  • August 29, 2018

    AMR-US Airways Merger Challenge Heads To Trial

    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.

  • August 29, 2018

    Indian Bank Can Depose Ex-Exec Of Modi's US Jewelry Cos.

    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.

  • August 29, 2018

    Surprise $40M Stalking Horse Bid Placed In Brookstone Ch. 11

    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.

  • August 29, 2018

    Viacom Objects To Weinstein Co.'s Settlement With Netflix

    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.”

  • August 29, 2018

    Insurer Can’t Prorate Asarco Asbestos Coverage, Judge Says

    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.

  • August 29, 2018

    Toys R Us Plan Shortchanges Priority Claims, Trustee Says

    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.

  • August 29, 2018

    Cloud Storage Co.'s Ch. 11 Sale Yields $13M Price Hike

    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.

  • August 29, 2018

    Life Partners Atty Says He's Not To Blame For CEO's Bad Acts

    The former top lawyer for bankrupt life settlement trader Life Partners Holdings Inc. urged a federal judge in Texas to reject a report and recommendation from a magistrate judge that he be held liable for the “bad actions” of the company's former CEO, who was found liable for securities violations.

  • August 28, 2018

    Madoff Investors Fight To Keep $41M In Profit Withdrawals

    A group of investors that earned millions in Ponzi scheme proceeds from Bernie Madoff’s defunct investment firm urged a New York federal judge on Tuesday to overrule the recommendations of a bankruptcy judge and grant them judgment over a trustee’s efforts to claw back $41 million.

  • August 28, 2018

    Investors Sue Clear Channel In Chancery Over $1B Claim

    A minority investor in Clear Channel Outdoor Holdings Inc. sued the company’s board, majority owners and private equity sponsors in Delaware’s Chancery Court late Monday, seeking class damages for alleged failures to seek payment on a $1 billion debt of bankrupt parent iHeartCommunications Inc.

  • August 28, 2018

    Sessions Aide Confirmed To Lead DOJ Civil Division

    The longtime overseer of the U.S. Department of Justice’s representation of government agencies who has recently been serving as U.S. Attorney General Jeff Sessions’ chief of staff was confirmed by the U.S. Senate to lead the DOJ's Civil Division Tuesday.

  • August 28, 2018

    Health Screener Files Ch. 11, Preps Sale To Quest Affiliate

    Felled by a debt load taken on in a string of recent acquisitions, Provant Health has filed for Chapter 11 in New York with plans to sell its assets to a subsidiary of Quest Diagnostics for $27 million.

  • August 28, 2018

    Pa. Energy Co. To Buy Rex Energy Out Of Ch. 11 For $600M

    Rex Energy Corp. will ask a Pennsylvania bankruptcy court on Thursday to approve the sale of its assets to PennEnergy Resources LLC for $600 million.

  • August 28, 2018

    7th Circ. Backs Disbarred Atty's Fraud Conviction, Sentence

    The Seventh Circuit on Monday affirmed a conviction and two-year sentence for a disbarred Indiana attorney who bilked a defunct grocery chain of more than $330,000, saying there was “plenty of evidence” to support the mail fraud conviction that put him behind bars.

  • August 28, 2018

    F-Squared Was Wrong Test Case For SEC Disgorgement

    A recently dismissed putative class action was the wrong test case to challenge the U.S. Securities and Exchange Commission's ability to seek disgorgement penalties, according to securities attorneys, who say a set of facts that fits more closely with the U.S. Supreme Court's landmark Kokesh decision could still deal a blow to the SEC's disgorgement power.

  • August 28, 2018

    US Pension Safety Net Wants To See How Deep Its Trouble Is

    The Pension Benefit Guaranty Corp., a soon-to-be insolvent federal insurance program that bails out bankrupt pension plans, is trying to see just how deep the hole it's in is, asking the White House on Tuesday for permission to determine how much the program owes multiemployer pension plans that have run out of money.

  • August 27, 2018

    US Cos. Culpable In $2B Indian Bank Fraud, Examiner Says

    An examiner from BakerHostetler assigned to investigate a handful of American jewelry companies that filed for bankruptcy in the wake of Indian billionaire Nirav Modi’s alleged $2 billion bank fraud scheme has concluded that the U.S. entities participated in the fraud, to the tune of roughly $280 million.

  • August 27, 2018

    Archer Norris Files For Bankruptcy After Exodus Of 30 Attys

    San Francisco Bay Area law firm Archer Norris PLC has filed for Chapter 11 bankruptcy protection in California federal court, notifying its creditors that it plans to let go approximately 70 attorneys and shut its doors for good in October after seeing an exodus of around 30 attorneys in the past few years.

Expert Analysis

  • Series

    Judging A Book: Hood Reviews 'Lawyering From The Inside Out'

    Judge Denise Hood

    Law professor Nathalie Martin's new book, "Lawyering From the Inside Out: Learning Professional Development Through Mindfulness and Emotional Intelligence," can be of value to any lawyer aiming to achieve greater productivity, relieve the stress of the legal profession and focus on goals, says U.S. District Chief Judge Denise Page Hood of the Eastern District of Michigan.

  • Series

    Cities In Distress: A Tale Of 3 California Bankruptcies

    Karol Denniston

    The Chapter 9 bankruptcies of Vallejo, San Bernardino and Stockton have left a legacy of challenges facing California municipalities that seek to restructure their obligations. These cases show that a comprehensive restructuring remains illusory because restructuring pension obligations is legally complicated and politically sensitive, says Karol Denniston of Squire Patton Boggs LLP.

  • 3 Top E-Discovery Case Law Lessons Of 2018 (So Far)

    Casey Sullivan

    The blockbuster e-discovery cases, with big sanctions and bigger controversies, have been few and far between this year. But that doesn’t mean the legal questions around e-discovery have been answered. Let’s take a closer look at three cases worthy of our attention, says Casey Sullivan, an attorney at discovery technology provider Logikcull.

  • Series

    Cities In Distress: What Chicago's Bankruptcy May Look Like

    Adam Levitin

    In the five years since Detroit filed for Chapter 9 bankruptcy, people have wondered which big city will be next. But the next big-city bankruptcy will not be about one local government in crisis. It is more likely to be a crisis involving many overlapping local governments, in a place like Chicago, say Adam Levitin of Georgetown University and David Schleicher of Yale University.

  • Opinion

    Law Schools Must Take A Stand Against Mandatory Arbitration

    Isabel Finley

    Later this week, Harvard Law students will begin bidding on interview slots with the nation’s top law firms. Our institutions owe it to their students not only to require firms to disclose mandatory arbitration provisions in new associate contracts, but also to bar employers from on-campus recruiting if they require these provisions, says Isabel Finley, a third-year student at Harvard Law School and president of the Harvard Women’s Law Association.

  • Myths And Facts About Using TAR Across Borders

    John Tredennick

    Many legal teams involved in cross-border matters still hesitate to use technology assisted review, questioning its ability to handle non-English document collections. However, with the proper expertise, modern TAR can be used with any language, including challenging Asian languages, say John Tredennick and David Sannar of Catalyst Repository Systems.

  • The Path To Restitution After Lagos

    Shannon Murphy

    While the U.S. Supreme Court's decision in Lagos eliminated the traditional way that many corporate victims recouped investigation costs, there still may be ways for at least a subset of those costs to be recovered, say Shannon Murphy and Steven Grimes of Winston & Strawn LLP.

  • Roundup

    From Lawmaker To Lawyer

    From Lawmaker To Lawyer

    Earlier this year, Rep. Trey Gowdy, R-S.C., made headlines with his decision to leave Congress and return to law. ​​In this series, former members of Congress who made that move discuss how their experience on the Hill influenced their law practice.

  • Opinion

    A Trump Supreme Court Nominee Can Be Defeated

    Nan Aron

    The Senate Republican leadership and the Trump administration are racing to fill Justice Anthony Kennedy’s spot on the U.S. Supreme Court. Does opposition to their plans have any chance of success? My answer is yes, because the stakes are so high, people are so engaged, and the records of those short-listed are so deeply troubling, says Nan Aron, president of Alliance for Justice.

  • Limiting Law Firms' Professional Liability Risks: Part 3

    Stuart Pattison

    As clients increasingly look to limit their own liability exposure, they can reasonably expect that their retained counsel should do the same. In this context, a carefully crafted, thoughtfully presented engagement letter can help a law firm strike a successful balance between protecting itself and preserving a client relationship, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.