Bankruptcy

  • September 18, 2017

    Takata Injury Claimants Get More Time To Probe Financing

    A Delaware bankruptcy judge on Monday gave Takata Corp. personal injury claimants more time to challenge the unusual funding arrangement that the debtor has with its automaker customers, over the objections of both parties, ruling that to do otherwise would improperly curb their due process rights.

  • September 18, 2017

    Benefits To Ex-Avaya Worker's Widow Deemed Unsecured

    The widow of a former Avaya Inc. employee on Monday failed in her bid to have her survivorship benefits treated as an administrative expense rather than any other unsecured claim in the company’s ongoing restructuring in New York bankruptcy court.

  • September 18, 2017

    Class Seeks Cert. ln Puerto Rican Kickback Suit

    Customers of PREPA, Puerto Rico’s electric utility, have moved for certification in a proposed class action over an allegedly yearslong fraud in which the utility bilked customers by cheating on environmental standards testing and charging top dollar for what was actually dirty, noncompliant fuel.

  • September 18, 2017

    NJ 'Housewives' Star Blasts 'Insulting' Malpractice Suit Offer

    "Real Housewives of New Jersey" star Teresa Giudice and her Chapter 7 trustee told a bankruptcy judge Monday that they’re willing to take a second stab at mediating their state court malpractice lawsuit against Giudice’s former lawyer, despite having received an “insulting” settlement offer during a failed negotiation attempt last month.

  • September 18, 2017

    REIT Had Reasons Not To Pursue Investor Claims, Judge Told

    Resource Capital Corp. asked a New York federal court Friday to toss a handful of derivative suits alleging the real estate investment trust misled investors over a failed $40 million Puerto Rican loan portfolio, saying the investors haven’t cleared the legal hurdle necessary to bring derivative litigation in the first place.

  • September 18, 2017

    Investment Banks Keep Fighting FDIC After 2nd Circ. Defeat

    Investment banks that sold or underwrote toxic mortgage-backed securities have again asked a New York federal court to reject the Federal Deposit Insurance Corp.’s suit to win damages on behalf of two failed banks, saying the case for dismissal remains strong even after the Second Circuit brought the lawsuit back earlier this year.

  • September 15, 2017

    Damages Math Set In MBS Suits Against Goldman, Deutsche

    A Texas federal judge has approved a method and rate for calculating damages in suits brought by the Federal Deposit Insurance Corp., which alleges RBS Securities Inc., Goldman Sachs & Co. and Deutsche Bank Securities Inc. sold the now-defunct Guaranty Bank shoddy mortgage-backed securities.

  • September 15, 2017

    Buchanan, Doctor Settle Suit Over Arena Football Team Buy

    Buchanan Ingersoll & Rooney PC and a bankrupt Tampa-area surgeon asked a Florida federal court Friday to permanently dismiss the doctor's suit claiming the law firm improperly vetted his $19 million purchase of a local Arena Football League team, having reached a settlement.

  • September 15, 2017

    Bostwick Labs Gets Confirmation Of Uncontested Ch. 11 Plan

    Bankrupt cancer diagnostics firm Bostwick Laboratories Inc. had its Chapter 11 liquidating plan confirmed in Delaware on Friday, with no parties objecting to the plan, which will see an administrator pursue possible causes of action against company insiders.

  • September 15, 2017

    $20M TerraVia Asset Sale OK'd After Ch. 11 Contract Snag

    A $20 million sale of bankrupt algae-based food developer TerraVia Holding Inc.’s assets won a Delaware judge’s approval Friday, after nearly stumbling over disputed requirements for protection of federal agency interests in some of the company’s contracts.

  • September 15, 2017

    Caesars Reaches $19M Settlement With La. Dept. Of Revenue

    An Illinois bankruptcy judge on Friday signed off on a $19 million settlement between Caesars Entertainment Operating Company Inc. and the Louisiana Department of Revenue over its unpaid taxes and requested tax refund.

  • September 15, 2017

    DOJ Director Turned Sessions Aide Tapped For Civil Division

    The White House said Friday that it plans to nominate a 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 to lead the DOJ's Civil Division.

  • September 15, 2017

    Ex-SunEdison Execs Get OK For $17M In Investor Deals

    A New York federal judge on Thursday preliminarily approved settlements of $14.7 million and $2.1 million in separate shareholder class actions alleging the former directors of bankrupt renewable energy giant SunEdison Inc. maintained faulty internal controls and provided inaccurate financial statements that misled investors.

  • September 15, 2017

    Taxation With Representation: Paul, Shearman, Haynes, Locke

    In this week’s Taxation With Representation, Pilgrim’s Pride acquired the European poultry company Moy Park for $1.3 billion, casino operator Golden Nugget priced a $1.4 billion notes offering, and agribusiness giant Bunge locked in a $946 million deal to take over a 70 percent stake in food oil manufacturer IOI Loders Croklaan.

  • September 15, 2017

    Stanford Receiver Loses $88M Clawback Bid

    A Texas federal judge shut down a post-verdict attempt to revive an $88 million clawback suit linked to the $7 billion Stanford Ponzi scheme on Thursday, saying there's no justification for questioning the jury's finding that no payback was required.

  • September 15, 2017

    Cadwalader Adds SEC Litigator, 2 Others In NY, DC

    A former New York federal prosecutor, a U.S. Securities and Exchange Commission senior counsel and an Olshan Frome Wolosky LLP securities and bankruptcy partner have joined Cadwalader Wickersham & Taft LLP in New York and Washington, D.C.

  • September 15, 2017

    E-Cig Trustee Taps Cozen As GC, Fox Rothschild In D&O Case

    A Delaware bankruptcy court Thursday gave the Chapter 7 trustee for bankrupt e-cigarette maker NJOY Inc. the green light to employ Cozen O'Connor as general counsel and Fox Rothschild LLP as special counsel to investigate possible claims against the debtor’s former officers and directors.

  • September 15, 2017

    Aerosoles Owner Seeks Ch. 11 For $72M Debt Rework, Sale

    Global footwear firm Aerogroup International Inc., maker of the well-known Aerosoles brand, sought Chapter 11 protection in Delaware early Friday, reporting plans to close most retail stores, restructure its $72 million debt and seek a buyer or new investor for the private equity-controlled business.

  • September 14, 2017

    Avaya Creditor Spat Over Ch. 11 Plan Sent To Mediation

    A creditor quarrel over proposed payouts in Avaya Inc.'s Chapter 11 restructuring plan is headed to mediation after a New York bankruptcy judge on Wednesday ordered the telecom giant and its creditor factions to make a good-faith attempt at resolving or narrowing lingering objections.

  • September 14, 2017

    Takata US Creditors Fight Planned Payment To Parent Co.

    Defunct airbag maker Takata’s U.S. unit TK Holdings shouldn’t have to pay retainer fees incurred by the Japanese parent company through a plea deal with the U.S. Department of Justice, the subsidiary’s unsecured creditors told a Delaware bankruptcy court Wednesday.

Expert Analysis

  • Diversity In The Legal Profession — A Stubborn Vision

    Robert Grey

    At the Leadership Council on Legal Diversity, we want to see, as founding member and Microsoft chief legal officer Brad Smith once stated, “a legal profession as diverse as the nation we serve.” We are not there yet — far from it — but we are beginning to put some numbers on the board, says Robert Grey, president of the Leadership Council on Legal Diversity.

  • Opinion

    New Salary History Laws Crimp Attorney Hiring Process

    Fredric Newman

    In prohibiting employers from asking potential hires about their previous salaries, lawmakers seek to "level the playing field." But there are real problems with the practicality, legality and enforceability of many of the salary history laws, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • 5 Tips For A Successful Legal Blog

    David Coale

    David Coale, leader of the appellate practice at Lynn Pinker Cox & Hurst LLP, shares his insights into what works — and what does not — when setting up and maintaining a legal blog.

  • Series

    Judging A Book: Kopf Reviews Posner's 'Federal Judiciary'

    Judge Richard Kopf

    There is a wonderful sketch of Seventh Circuit Judge Richard Posner dressed in a black robe with arms outstretched as if they were the billowing wings of a lean vulture. He is kicking a human brain down a hallway and wearing a half-smile that looks for all the world like a sneer. That sketch is the perfect metaphor for both Judge Posner and his new book, "The Federal Judiciary: Strengths and Weaknesses," says U.S. District Judge Ri... (continued)

  • Lehman Ruling Sets Stage For Future Subordination Contests

    John Stigi

    The Second Circuit's determination that former Lehman Brothers employees' restricted stock units are securities is important to creditors seeking to safeguard their priority position among bankruptcy claimants, say John Stigi and Christopher Bosch of Sheppard Mullin Richter & Hampton LLP.

  • When Are Appellate Time Limits Jurisdictional?

    Eric Miller

    During its upcoming term, the U.S. Supreme Court will examine Federal Rule of Appellate Procedure 4(a)(5), which limits a district court's authority to extend the time for filing appeals. The court’s decision should further clarify the distinction between jurisdictional and nonjurisdictional time limits, says Eric Miller, chairman of the appellate practice at Perkins Coie LLP.

  • The Use Of Special Masters In Complex Cases

    Shira Scheindlin

    Special master appointments can be very beneficial in resolving disputes quickly, streamlining discovery, handling delicate settlement negotiations, and — somewhat surprisingly — reducing cost and delay, says retired U.S. District Judge Shira Scheindlin, now with JAMS.

  • Roundup

    Notes From A Law Firm Chief Privacy Officer

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    As more law firms become the targets of major cyberattacks, more firms may consider appointing a chief privacy officer. In this series, CPOs at four firms discuss various aspects of this new role.

  • Series

    Notes From A Law Firm Chief Privacy Officer: New Demands

    Phyllis Sumner

    For outside counsel, oftentimes efficiency and responsiveness collide with security measures as clients are increasingly requiring their law firms to comply with third-party risk management programs. To meet these challenges, law firms are focusing more on the roles of chief privacy officer and chief information security officer, says Phyllis Sumner, chief privacy officer for King & Spalding LLP.

  • Del. Case May Set New Roadblocks For 3rd-Party Releases

    Stephen Zide

    If the Delaware bankruptcy court were to find in the case of Millennium Lab Holdings that it lacks constitutional authority to approve nonconsensual third-party releases, such releases as part of a Chapter 11 plan will be even more difficult to obtain than they are already, say Stephen Zide and Rachael Ringer of Kramer Levin Naftalis & Frankel LLP.