Bankruptcy

  • April 23, 2018

    Burt Barr Gets $3M Legal Malpractice Suit Tossed

    A Texas federal judge on Monday granted Burt Barr & Associates LLP's bid to toss the remaining claims in a $3 million malpractice suit brought by a former client, writing in a brief order that the woman had dropped her fight for the funds in a filing with the court earlier this month.

  • April 23, 2018

    High Court Won't Review Sentinel's Clawback Attempt

    The U.S. Supreme Court declined Monday to review the Sentinel Management Group Inc. trustee’s bid to claw back nearly $300 million from the bankrupt investment firm’s creditors, driving the final nail in the dispute’s coffin despite the trustee’s warning that future financial fraud bankruptcies will “become free-for-alls” unless the case was taken up.

  • April 23, 2018

    2nd Circ. Upholds DLA Piper Win In Malpractice Suit

    The Second Circuit on Monday found that lower courts had applied the correct law when they dismissed claims against DLA Piper for the services it provided to a Cayman Islands investment manager who supposedly siphoned more than $36 million from his own now-bankrupt fund.

  • April 23, 2018

    Investors, Pernix Set $75M Stalking Horse Bid For Orexigen

    The bankrupt obesity-drug maker Orexigen Therapeutics Inc. on Monday said it will likely sell its business to Nalpropion Pharmaceuticals, which was just formed by an investor group and Pernix Therapeutics Holdings Inc., for a $75 million stalking horse bid.

  • April 20, 2018

    Sanctions Bid Advances Against Fla. Firm, Billionaire

    A bankruptcy judge on Friday ordered Florida law firm Fowler White Burnett PA and convicted billionaire sex offender Jeffrey Epstein to show cause why they should not be held in contempt of court for allegedly retaining copies of another firm's confidential documents in violation of the court's order.

  • April 20, 2018

    Toys R Us Fetches $235M Offer For Canadian Stores

    Toys R Us has entered into an agreement to sell its Canadian stores and assets for at least C$300 million (roughly $235 million), the bankrupt retail giant said in a court filing Thursday, stating that Toronto-based Fairfax Financial Holdings Ltd. has come in as a stalking horse bidder.

  • April 20, 2018

    Puerto Rico Sales Tax Bond Fight Sparks Muni Market Anxiety

    Municipal bond investors are paying close attention to what happens in a pending court fight over the validity of bondholder liens on Puerto Rican sales tax, experts say, warning of widespread consequences should investments thought to be bankruptcy-proof turn out otherwise.

  • April 20, 2018

    NY Wheel Dismissal Ruling Put Off For Renewed Mediation

    A Delaware judge on Friday put off until next week ruling on the dismissal of the Chapter 11 case of the bankrupt design and build team for the proposed New York observation wheel, after attorneys for the team said they had restarted negotiations with the project’s developer.

  • April 20, 2018

    Key Safety Not Covered For Interest In AIG Dispute: 6th Circ.

    Key Safety Systems Inc., which recently purchased Takata Corp.’s assets at a bankruptcy auction, cannot force an AIG unit to pay nearly $600,000 in post-judgment interest racked up in an underlying suit over a car crash, the Sixth Circuit affirmed on Friday.

  • April 19, 2018

    Puerto Rico Fed Board Approves Pension-Cutting Fiscal Plan

    The federal panel empowered to restructure Puerto Rico's debts and shore up its finances certified six-year fiscal plans for the island on Thursday, bucking the resistance by the territory’s government to pension reform and other austerity measures in an effort to fix the island’s debt crisis and instill investor confidence.

  • April 19, 2018

    Lehman Judge Fumes At RMBS Trusts' Distribution Moves

    Trustees for investors who bought toxic residential mortgage-backed securities from Lehman Brothers Holdings Inc. before the 2008 financial crisis got an earful Thursday from a New York bankruptcy judge who fumed that their concerns over how to distribute funds from a $2.4 billion settlement could have been raised months ago.

  • April 19, 2018

    Envelope Maker's 3rd-Party Releases Draw Ch. 11 Trustee's Ire

    The U.S. Trustee’s Office objected in New York bankruptcy court Wednesday to envelope maker Cenveo Inc.’s Chapter 11 plan disclosure statement, saying its “overbroad” third-party liability releases bind creditors that cannot or do not vote for the plan.

  • April 19, 2018

    Barnes & Thornburg Nabs 3 Restructuring Attys From Cooley

    Barnes & Thornburg LLP announced it has picked up two new partners and an associate from Cooley LLP, bolstering the firm’s finance, insolvency and restructuring department in its newly opened San Diego office, as well as its Los Angeles office.

  • April 19, 2018

    Weinstein Co. Says Dozens Of Buyers Have Shown Interest

    Bankrupt movie studio The Weinstein Co. told a Delaware judge Thursday that since its auction plan received court approval this month it has received more than 50 expressions of interest from potential buyers for its assets.

  • April 19, 2018

    NextEra Fights To Keep $275M Termination Fee At 3rd Circ.

    NextEra Inc. urged the Third Circuit on Thursday to reinstate a $275 million termination fee it won after its deal to buy assets from Dallas-based Energy Future Holdings Inc.’s Chapter 11 estate fell through, arguing that there was no manifest error plaguing the award that warranted its later reversal.

  • April 19, 2018

    1st Circ. Upholds $2.7M Payment From Bankrupt Railroad

    Despite not being sold on their reasoning, the First Circuit on Wednesday upheld two lower court rulings that found the Federal Railroad Administration had properly distributed $2.7 million from a bankrupt freight railroad to an Ohio-based railway company that had furnished the troubled carrier a line of credit.

  • April 18, 2018

    Mediation Progress Pushes Zohar Dismissal Trial One Week

    Attorneys for bankrupt investment vehicles the Zohar Funds told a Delaware judge Wednesday afternoon that their efforts to mediate issues in the cases had progressed far enough that the parties were comfortable adjourning a motion to dismiss the Chapter 11 filings until next week to allow for further talks.

  • April 18, 2018

    Bon-Ton's Ch. 11 Liquidation Sale Approved By Del. Court

    Bankrupt retailer Bon-Ton Stores Inc. received court approval Wednesday in Delaware for a transaction that will see all of its 256 store locations liquidated in the coming months after failing to receive a going-concern offer that satisfied the court.

  • April 18, 2018

    Trustee Slams Patriot National Ch. 11 Plan On Ghost Releases

    The U.S. Trustee’s Office objected Wednesday to the latest version of insurance company servicer Patriot National Inc.’s Chapter 11 plan, saying it contains unjustified legal releases and goes too far in blocking late claims.

  • April 18, 2018

    'Hotel Mumbai' Producer Sues Weinstein Co. To Nix Contract

    An Australian film production company Monday asked the Delaware bankruptcy court to cancel a distribution deal The Weinstein Co. has listed as an asset in its Chapter 11 case, saying it was fraudulently induced into a deal that has been effectively dead for months.

Expert Analysis

  • Opinion

    Attorney-Client Privilege Is Alive And Well

    Genie Harrison

    The FBI raid of the office of President Donald Trump’s personal lawyer set off a firestorm of controversy about the sanctity of the attorney-client privilege, epitomized by Trump's tweet that the "privilege is dead." But attorney-client privilege is never taken lightly — I have battle scars from the times I have sought crime-fraud exceptions, says Genie Harrison of the Genie Harrison Law Firm.

  • Roundup

    Dissolving Practice

    Dissolving Practice

    In this series, experts discuss the unique aspects of closing a law firm, and some common symptoms of dysfunctionality in a firm that can be repaired before it's too late.

  • Series

    Dissolving Practice: How To Fix A Dysfunctional Law Firm

    Larry Richard

    I am often asked, “When there are one or more partner departures, what can a firm do to prevent this from escalating to a catastrophic level?” The short answer is “nothing.” Law firms need to adopt culture-strengthening lifestyles to prevent defections from occurring in the first place, says Larry Richard of LawyerBrain LLC.

  • Series

    Dissolving Practice: Partner Agreement Clauses That Can Help

    ​​​​​Leslie Corwin

    Given the competing public policies of protecting clients’ right to counsel of their choice, lawyer mobility, and the fiduciary duty partners owe to a dissolved firm, it behooves law firms to carefully review their partnership agreements to make sure they adequately spell out what happens in the unfortunate event that the law firm chooses to wind down, say ​​​​​Leslie Corwin and Rachel Sims of Blank Rome LLP.

  • Series

    Dissolving Practice: The Unfinished Business Doctrine

    Thomas Rutledge

    There has been, of late, significant dispute as to the application of the unfinished business doctrine, particularly with respect to hourly rate matters of now-dissolved large law firms. And the California Supreme Court’s recent decision in Heller Ehrman, like others as to similar points, is highly questionable, says Thomas Rutledge of Stoll Keenon Ogden PLLC.

  • The Impact Of Tax Reform On Film, TV And Print Media: Part 1

    Michele Alexander

    While the media has been reporting on tax reform, tax reform will impact the media industry itself. Reform's effects are numerous, from a reduction in tax rates and new deductions to the loss of important deductions and new international regimes that have kept tax experts waiting in anticipation of further guidance, say attorneys Michele Alexander and Ryan Davis of Bracewell LLP.

  • A Cautionary Tale For Sublicensees

    John Loughnane

    Sirius Radio has been defending itself against a patent infringement suit that deserves the attention of any party that has ever sublicensed rights. The case is a reminder that a sublicensee whose licensor commences bankruptcy should pay close attention to the proceedings and take appropriate action, says John Loughnane of Nutter McClennen & Fish LLP.

  • A Notable Footnote In High Court Merit Management Decision

    Elliot Moskowitz

    The U.S. Supreme Court’s ruling in Merit Management v. FTI Consulting has been characterized as a narrowing of the Section 546(e) safe harbor, given the court’s holding that a transfer is not protected from avoidance merely because the funds passed through a “financial institution.” However, a footnote in the decision could mean that the safe harbor remains applicable to additional participants in securities transactions, say Ellio... (continued)

  • Opinion

    BigLaw Doesn't Have A Diversity Problem

    Marlen Whitley

    Although the lack of racial and gender diversity among the ranks of the majority of both midsized and top law firms is a major issue, it’s past time to shed light on the real problem — inclusion, or lack thereof, says Marlen Whitley of Reed Smith LLP.

  • Opinion

    Roman J. Israel, Esquire, Meet Donald J. Trump, POTUS

    Kevin Curnin

    Despite the Trump administration's desire to shut down the Legal Services Corp., thankfully the budget that Congress passed and the president signed into law last week has restored $410 million of funding to the legal aid organization. An unlikely brief for preserving LSC may be found in the quirky Denzel Washington film "Roman J. Israel, Esq.," says Kevin Curnin, immediate past president of the Association of Pro Bono Counsel.