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Bankruptcy
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April 15, 2025
9th Circ. Backs $272M Verdict For Monster In Bang Ad Case
The Ninth Circuit on Tuesday affirmed a $272 million verdict for Monster Energy Co. in a false advertising case against defunct Vital Pharmaceuticals Inc. and its former CEO, rejecting a series of challenges to rulings that narrowed the evidence at trial.
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April 15, 2025
Boies Schiller Can't Escape Guo Clawback Claim, Judge Rules
Boies Schiller Flexner LLP must face a Chapter 11 trustee's nearly $654,000 clawback case for receiving cash from a company connected to since-convicted Chinese exile Miles Guo, a Connecticut bankruptcy judge has ruled, advancing the case against the firm's motion to dismiss.
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April 15, 2025
Telecom Infrastructure Biz Hits Ch. 11 With Up To $50M Debt
Excell Communications Inc., a telecommunications infrastructure developer, and two affiliates filed for bankruptcy in New York with $45.5 million in unsecured debt after losing a key business relationship.
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April 15, 2025
Husch Blackwell Adds Chamberlain Hrdlicka Bankruptcy Ace
Husch Blackwell LLP has fortified its insolvency and commercial bankruptcy practice with a partner in Austin, Texas, who came aboard from Chamberlain Hrdlicka White Williams & Aughtry.
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April 14, 2025
Judge Says Barretts Needs Independence To Resolve Ch. 11
A Texas bankruptcy judge on Monday said he would have to consider ways to increase Barretts Minerals Inc.'s perceived independence from its parent company if he agrees to allow the talc miner to stay in Chapter 11.
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April 14, 2025
Crypto Firm DCG Can't Dodge NY AG Suit Over Genesis Woes
Crypto venture capital firm Digital Currency Group must face the bulk of the New York attorney general's claims it defrauded investors by hiding the dire financial condition of its bankrupt lending subsidiary Genesis Global, a New York state judge has ruled.
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April 14, 2025
Fulcrum's Ch. 11 Plan Approved Following Asset Sales
Waste-to-fuel recycler Fulcrum Bioenergy received approval Monday for its Chapter 11 plan of liquidation following a surprisingly successful sale process, debtor's counsel said.
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April 14, 2025
UK Co. Says Ex-Sikorsky Atty Gave 'Inconsistent' Testimony
A British company locked in a $64 million contract feud with Lockheed Martin subsidiary Sikorsky Aircraft accused its former in-house counsel of giving testimony "blatantly inconsistent" with other evidence at a Connecticut trial, requesting the alleged transgressions be discussed after a Texas bankruptcy judge slammed the lawyer for providing "false statements" in a separate matter.
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April 14, 2025
Wealth Management App Developer Hits Ch. 11 In Delaware
The developer of a wealth management software app filed for Chapter 11 in Delaware bankruptcy court on Monday, seeking to wind down after its Australian parent company collapsed last year.
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April 14, 2025
Women's Healthtech Co. Chiaro Files Ch. 15 In Delaware
British women's healthtech company Chiaro Technology Ltd. has filed for Chapter 15 recognition in Delaware bankruptcy court, seeking acknowledgment of an insolvency proceeding in the United Kingdom through which it aims to manage its American assets while pursuing a sale to a competitor.
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April 11, 2025
Investors Claim $43M Fraud By Miami Adviser's Firms
More than three dozen investors have sued the companies connected to a former financial adviser in Miami state court over claims of fraud, alleging he squandered nearly $43 million to enrich himself and fund a Ponzi-like scheme.
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April 11, 2025
Forever 21 Can't Tap Cash Collateral In Ch. 11, Creditors Say
The unsecured creditors committee in fast-fashion chain Forever 21's Chapter 11 has challenged the debtor's motion to use cash collateral, telling the Delaware bankruptcy court that the funding bid is part of a plan that would prejudice the group and leave the creditors with insufficient recoveries.
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April 11, 2025
Nikola Corp. Gets OK For $30M Arizona Factory Sale
A Delaware bankruptcy judge Friday gave electric vehicle and hydrogen fueling technology maker Nikola Corp. the go-ahead to sell its Arizona factory and headquarters to electric carmaker Lucid Motors for $30 million.
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April 11, 2025
Alex Jones' Sandy Hook Atty Lands 7-Day Suspension Credit
Alex Jones' former lead Connecticut attorney will be suspended for only one additional week because of a prior sit-out in 2023, a state court judge has clarified, saying she hadn't considered that Norm Pattis was previously benched while he appealed his discipline for his role in transferring Sandy Hook families' confidential records to another Jones attorney.
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April 11, 2025
Ex-Girardi CFO Gets 10 Years For 'Devastating' Fraud
A California federal judge sentenced Girardi Keese's former chief financial officer to just over 10 years in prison Friday for aiding firm leader Tom Girardi's $15 million client theft scheme while also embezzling $6 million for himself, saying the two interrelated schemes "had devastating and far-reaching effects."
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April 10, 2025
Byju's Alpha Sues Co-Founder Over $533M In Missing Funds
The bankrupt U.S. subsidiary of Indian tech giant Byju's has filed a suit alleging the company's founder had a direct hand in the disappearance of $533 million in company assets prior to its Chapter 11 filing.
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April 10, 2025
Judge Romance Fee Disputes Moved From Bankruptcy Court
A Texas federal district court agreed to preside over a suit brought by the U.S. Trustee's Office to make Jackson Walker LLP forfeit fees from more than 30 cases overseen by a former bankruptcy judge who was romantically involved with a one time-partner from the firm.
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April 10, 2025
Carlton Fields Beats DQ Bid In Fla. $500M Miss America Suit
A Florida federal judge denied a bid to disqualify Carlton Fields in a $500 million lawsuit over the ownership of the company that runs the Miss America pageant, saying such a remedy is extraordinary, and that the allegations are "scattered and speculative."
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April 10, 2025
No Plan To Trim Do Kwon Case After Crypto Memo, Feds Say
A U.S. Department of Justice memo outlining the Trump administration's cryptocurrency policy and enforcement priorities has not prompted prosecutors to alter their $40 billion criminal fraud case against Terraform founder Do Kwon, a government lawyer told a Manhattan federal judge Thursday.
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April 10, 2025
Purdue Cleared To Start Ch. 11 Claims Processing Early
A New York bankruptcy judge on Thursday approved Purdue Pharma's request to appoint claims administrators and begin processing the tens of thousands of claims against the drugmaker, reasoning that doing so ahead of plan confirmation would enable the debtor to make faster distributions to creditors.
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April 10, 2025
Brazilian Sugar Producer Hits Ch. 15 In NY With $735M Debt
Brazilian sugar producer and distributor Virgolino de Oliveira SA has filed for Chapter 15 protection in New York bankruptcy court with $735 million in debt.
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April 09, 2025
Cross & Simon OK'd To Duck Out Of Team Systems Ch. 7 Suit
A Delaware bankruptcy judge on Wednesday approved law firm Cross & Simon LLC's request to withdraw as counsel to former Team Systems International executives in an adversary case brought by the insolvent government contractor's Chapter 7 trustee.
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April 09, 2025
Publishers Clearing House Hits Ch. 11, Plans Digital Pivot
Publishers Clearing House, which started as a magazine subscription seller known for giant check giveaways, filed for bankruptcy Wednesday in New York with plans to focus on its digital advertising operations and sell its assets.
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April 09, 2025
Quinn Emanuel DQ In Fla. Oil Row More Than Just 'Possibility'
A Florida federal judge has ordered expedited discovery in a Mexican oil company's case over alleged improper fund transfers, after determining there is "more than a mere possibility" of Quinn Emanuel being conflicted out of representing itself in the litigation due to prior representation of the company.
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April 09, 2025
23andMe Asks For Independent Customer Data Rep In Ch. 11
Genetic testing company 23andMe asked a Missouri bankruptcy judge to let it appoint an independent customer data representative as it looks to sell genetic data of 15 million users at a Chapter 11 auction.
Expert Analysis
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'Minimal Participant' Bar Is Tough To Clear For Whistleblowers
Under the U.S. Department of Justice’s corporate whistleblower pilot program, would-be whistleblowers will find it tough to show that they only minimally participated in criminal misconduct while still providing material information, but sentencing precedent shows how they might prove their eligibility for an award, say attorneys at MoloLamken.
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What 2024 Trends In Marketing, Comms Hiring Mean For 2025
The state of hiring in legal industry marketing, business development and communications over the past 12 months was marked by a number of trends — from changes in the C-suite to lateral move challenges — providing clues for what’s to come in the year ahead, says Ben Curle at Ambition.
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Opinion
How The Onion Could Still Buy InfoWars
While a Texas bankruptcy judge nixed the sale of InfoWars to The Onion on Tuesday, a slight tweak to the novel mechanism proposed could make the sale approvable, says Christopher Hampson at the University of Florida.
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Series
Group Running Makes Me A Better Lawyer
The combination of physical fitness and community connection derived from running with a group of business leaders has, among other things, helped me to stay grounded, improve my communication skills, and develop a deeper empathy for clients and colleagues, says Jessica Shpall Rosen at Greenwald Doherty.
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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A Closer Look At SDNY Bankruptcy Rule Amendments
The U.S. Bankruptcy Court for the Southern District of New York’s recent amendments to its local rules aim to streamline key Chapter 11 processes, resolve misunderstandings about previous iterations of the rules and urge caution about the use of artificial intelligence, say attorneys at Skadden.
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FTX Exec's Sentencing Shows Pros And Cons Of Cooperation
The sentencing of former FTX tech deputy Gary Wang, whose cooperation netted him a rare outcome of no prison time, offers critical takeaways for attorneys and clients navigating the burgeoning world of crypto-related prosecutions, says Andrew Meck at Whiteford.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Equitable Mootness Insights From Greenlit Ch. 11 Plan Appeal
A Texas federal court recently allowed a challenge to ConvergeOne's Chapter 11 bankruptcy plan to proceed because it wouldn't disrupt the IT company's confirmed plan or harm creditors, reinforcing the importance of judicial restraint in applying equitable mootness where limited relief is possible, say attorneys at Parkins & Rubio.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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How Boards And Officers Should Prep For New Trump Admin
In anticipation of President-elect Donald Trump's proposed tariffs and mass deportation campaign, company officers and board members should pursue proactive, comprehensive contingency planning to not only advance the best interests of the companies they serve, but to also properly exercise their fiduciary duty of care, say attorneys at Winston & Strawn.
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The Challenges Of Abandoned Retirement Plans In Ch. 7
The Department of Labor's rule for unwinding retirement accounts when plan sponsors file for Chapter 7 bankruptcy was intended to alleviate trustees' administration issues, but practical challenges, like unresolved fee and identification matters, could hinder its implementation, say David Goodrich at Golden Goodrich and Nancy Simons at Stretto.