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Bankruptcy

  • September 18, 2018

    WR Grace's $1.6M Tax Win Affirmed By Delaware Court

    A Delaware federal court on Monday affirmed a bankruptcy court ruling that increased reorganized debtor W.R. Grace's 1998 tax refund by $1.6 million, finding that a judge was correct in applying the interest rate included in the company's confirmed Chapter 11 plan.

  • September 18, 2018

    Utilities Float $11M Antitrust Deal With Chemical Supplier

    A class of public utilities has urged a New Jersey federal judge to approve a $10.7 million settlement with a company accused of rigging bids on a water treatment chemical, arguing the company’s bankruptcy could threaten their ability to recoup losses.

  • September 18, 2018

    NextEra Wants 3rd Circ. To Revisit $275M EFH Breakup Fee

    NextEra, the once-proposed buyer of the assets of Energy Future Holdings Corp., told a Delaware bankruptcy judge Tuesday that it intends to seek a rehearing before the Third Circuit Court of Appeal on its right to a $275 million breakup fee after a three-judge panel denied its appeal last week.

  • September 18, 2018

    Creditors Can't Put Stop To Puerto Rico GDB Restructuring

    A Puerto Rico federal judge denied on Tuesday a motion by unsecured creditors in its government’s bankruptcy proceedings to enforce a stay and prevent a proposed Government Development Bank restructuring, finding that neither the automatic stay nor the court’s stay order applies to moves made by the debtor.

  • September 17, 2018

    Israeli Gov’t Contractor Settles Securities Suit With $3M Deal

    Ability Inc. agreed to pay $3 million to investors to resolve a securities suit accusing the Israeli government contractor of making misleading financial statements during its bid to buy Cambridge Capital Acquisition Corp., according to a deal approved by a New York federal judge on Monday.

  • September 17, 2018

    Rakoff Hits Cocoa Trader With 2.5 Years For $350M Fraud

    A former executive of bankrupt Transmar Commodity Group Ltd. on Monday was sentenced to two and a half years in prison by U.S. District Judge Jed Rakoff for a “massive” $350 million asset fraud at the family-run cocoa commodity trading company.

  • September 17, 2018

    How Lehman's Bankruptcy Put SIPC In The Spotlight

    When Lehman Brothers filed for bankruptcy 10 years ago, one of the first outfits called in was one that traditionally operated under obscurity. But the Securities Investor Protection Corp. made a name for itself in the historic Chapter 11 case, restoring more than $90 billion worth of assets to Lehman’s brokerage customers.

  • September 17, 2018

    Mining Co.’s Involuntary Ch. 7 Draws Judge’s Skepticism

    A Delaware bankruptcy judge on Monday questioned a creditor’s use of an involuntary Chapter 7 action against a mining company that branded the case as an effort to neutralize its Chancery Court lawsuit against the same creditor, cautioning that the bankruptcy court is “not a collection court.”

  • September 17, 2018

    Arizona $3.5M Settlement Approved In Woodbridge Ch. 11

    The Woodbridge Group of Companies received bankruptcy court approval Monday in Delaware to enter into a consent order with Arizona regulators calling for a $3.5 million restitution payment to investors in that state duped into investing in the company’s Ponzi scheme.

  • September 17, 2018

    Claire's Strikes Deal With Oaktree Over Contested Ch. 11

    After several hours of negotiations, Claire's was able to avoid what was likely to be a highly contentious confirmation hearing for the accessory retailer's Chapter 11 restructuring plan after settling with second-lien creditors now set to recover millions more under the plan.

  • September 17, 2018

    Hospitals Fight Blue Cross Blue Shield Bid To Nix ERISA Suit

    Seven affiliated hospitals — five of them bankrupt — have urged a Texas federal judge to spare their Employee Retirement Income Security Act suit claiming that dozens of Blue Cross Blue Shield entities underpaid them by tens of millions of dollars, arguing the Western District of Texas is a proper venue for the litigation.

  • September 17, 2018

    TelexFree Admits Massive Telecom Scam, Securities Abuses

    The scam corporations behind one of the world's largest pyramid schemes, TelexFree Inc. and TelexFree LLC, admitted Monday to securities fraud that federal agents believe swindled more than 1 million people, a move signaling the end of criminal charges and a lawsuit that halted the massive scheme in its tracks in 2014.

  • September 14, 2018

    Oaktree Flags Claire's Modified Ch. 11 Plan

    Oaktree Capital Management LP on Friday objected to the modified Chapter 11 plan of fashion accessory retailer Claire's Inc., claiming last-minute changes significantly impact the amount of claims to be paid and contesting the debtors' call to bar certain evidence at a confirmation hearing set for Monday.

  • September 14, 2018

    Irish Bank Reps Say Ch. 15 Suit Has No American Nexus

    The foreign representatives of Chapter 15 debtor Irish Bank Resolution Corp. Ltd. objected Friday to a move by an Irish creditor to lift the automatic stay of litigation to allow the creditor to move forward with an adversary proceeding in Delaware, saying the loans at issue in the complaint are governed by Irish law.

  • September 14, 2018

    Trustee Of Modi's Jewelry Cos. Starting Ch. 11 Claims Probe

    The recently appointed Chapter 11 trustee of three bankrupt U.S. jewelry companies linked to Indian billionaire Nirav Modi’s massive $2 billion bank fraud has asked for authorization to begin sending out subpoenas while he investigates further.

  • September 14, 2018

    Car Dealer Loses RICO Suit Over Alleged Scam By Employees

    An Illinois federal judge on Friday canned a racketeering suit brought by an auto dealership owner accusing his former business associates of conspiring to run his business into the ground, saying his failure to prove they were part of an enterprise proved "fatal."

  • September 14, 2018

    DOJ Warns Against Fraud In Kaiser Asbestos Trust Plan

    The Department of Justice has filed a statement of interest in the asbestos-centric bankruptcy of Kaiser Gypsum Co., warning that it won't tolerate any continuation of the "fraud, abuse and mismanagement" that have plagued the asbestos trust system in recent years.

  • September 14, 2018

    Actresses Get 'Road Map' To File New Weinstein Class Suit

    Counsel for the actresses accusing Harvey Weinstein of sexual assault in a putative class action say a New York federal judge gave them a “road map” to a stronger case when he dismissed their claims this week.

  • September 14, 2018

    Lehman Judge Looks Back On Historic Case 10 Years Later

    Ten years ago, Lehman Brothers filed the largest bankruptcy in history, an event that accelerated the global financial crisis and inspired a new regime of banking regulation. Judge James Peck spoke with Law360 about the gravity of Lehman's historic filing and how his prior work helped him steward the case. This is the first in a three-part series looking back at Lehman's collapse.

  • September 13, 2018

    Puerto Rico Creditors Blast GDB Deal As It Clears Hurdle

    Puerto Rico’s creditors and its financial oversight board clashed Thursday over the proposed $4.1 billion restructuring of the island’s Government Development Bank, with creditors deriding it as a “home-baked bankruptcy” that would shield corrupt bankers from scrutiny even as the bank’s own creditors overwhelmingly approved the deal.

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.