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Bankruptcy
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September 25, 2025
Dr. Phil Defends Worker Layoffs That Came With Ch. 11
Phil McGraw, also known as Dr. Phil, hit back Thursday at accusations that workers at his television channel joint venture were fired when it filed for bankruptcy so they could work for a new entity started by McGraw, saying that the terminations were needed because the company's financials hit a wall that couldn't be overcome.
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September 25, 2025
Entities Tied To Auto Parts Supplier Hit Ch. 11 With $1B+ Debts
A group comprising at least a dozen entities affiliated with Carnaby Capital Holdings LLC filed for Chapter 11 protection in Texas on Wednesday, reporting liabilities of between $1 billion and $10 billion.
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September 25, 2025
Flagstar Seeks Instant Win In Ex-Live Well VP Fraud Case
Flagstar Bank has urged a Michigan federal judge to grant it an early win against a former executive of the now-bankrupt Live Well for his role in a scheme to defraud lenders by inflating the value of bonds, saying because the executive already pled guilty to securities fraud, he cannot now deny liability in the bank's civil case.
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September 25, 2025
Atty's 'Horrible' Mistake Rooted In Firm Biz, NJ Justices Hear
Former Sacks Weston attorney Scott Diamond's counsel urged the New Jersey Supreme Court on Thursday to refrain from disbarring him for fraudulently resolving cases behind his former firm's back, arguing during a hearing that his actions stemmed from a "bona fide" business dispute.
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September 25, 2025
Avon Gets Ch. 11 Plan Approved
A Delaware bankruptcy judge has confirmed Avon's Chapter 11 plan a few days after verbally agreeing to approve it.
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September 25, 2025
Jackson Walker Reaches 2 New Deals Over Judge Romance
Jackson Walker LLP has reached two new settlements to resolve claims related to a concealed romance between a former firm attorney and a onetime bankruptcy judge, marking at least five such settlements since the scandal broke.
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September 24, 2025
Omnicare Can Tap $25M Initial DIP, Stage Set For Gov't Feud
Omnicare LLC, a CVS Health subsidiary that provides pharmacy services for long-term care facilities, won a Texas bankruptcy court approval on Wednesday to use $25 million of interim debtor-in-possession financing amid a looming dispute over a $949 million judgment owed to the U.S. government over allegedly illegal billing.
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September 24, 2025
Committee Says $100M DIP Loan Doesn't Benefit Modivcare
The official committee of unsecured creditors in the Chapter 11 case of medical transport company Modivcare objected to final approval of the debtor's $100 million bankruptcy loan late Tuesday, telling a Texas court the package includes "numerous infirmities" that need to be addressed.
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September 24, 2025
Maverick Gaming Gets OK For $28M Card Room Sale
A Texas bankruptcy judge gave Maverick Gaming permission Wednesday to sell four of its card rooms to its founder for $28 million, a price the casino operator said was driven up more than 60% through competitive bidding.
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September 24, 2025
Books Inc. Gets OK For $3.25M Sale To Barnes & Noble
California's oldest independent bookstore chain, Books Inc., received approval Wednesday from a bankruptcy judge for a $3.25 million sale to Barnes & Noble, and hopes to close on the sale Oct. 1.
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September 24, 2025
Kennedys Adds Bankruptcy Partner From Connell Foley In NJ
Kennedys CMK grew in New Jersey this week with the hire of a bankruptcy and creditors' rights expert joining the firm after nearly 20 years as a partner at Connell Foley LLP.
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September 23, 2025
This Week In Healthcare Cybersecurity
Expiring Obama-era cybersecurity legislation, U.K. charges for 'Scattered Spider' breach, and the challenges of 23andMe's bankruptcy. Law360 looks at the week in cybersecurity developments affecting the healthcare industry.
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September 23, 2025
Dr. Phil Says Trinity 'Abandoned' TV Network Before Ch. 11
"Dr. Phil" McGraw testified Tuesday in Texas bankruptcy court that he sought control of his joint venture with Trinity Broadcasting last year because his partner had "abandoned" the venture's mission and failed to support it during its startup phase.
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September 23, 2025
Spirit Strikes Ch. 11 Global Deal With Largest Lessor AerCap
Spirit Airlines urged a New York bankruptcy court Tuesday to approve a global resolution the company reached with AerCap, its largest lessor, that could be a major step forward for the budget airline's riskier, second Chapter 11.
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September 23, 2025
NY Judge Throws Out Appeals By Ex-Eletson Shareholders
A New York federal judge has ruled that a group of former shareholders of Eletson Holdings have no standing to appeal an order consummating the shipping company's Chapter 11 plan and no grounds to appeal sanctions for failing to follow the order.
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September 23, 2025
Ch. 11 Shields Co. From Suit Over Inmate Stroke, Judge Says
A federal judge in North Carolina has dismissed prison healthcare provider Wellpath from a lawsuit brought by the family of a man who died of a stroke inside a Charlotte jail, finding that the company's bankruptcy shields it from liability but allowing claims against a county sheriff and others to continue.
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September 23, 2025
Wilmington Trust Seeks Receiver After $19M Loan Default
A single-asset real estate firm that owns an office building in the Denver Technological Center, or DTC, filed for Chapter 11 and faces a request for a receiver over the building it owns after it defaulted on a $19 million loan last year, according to court filings.
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September 23, 2025
FTX Trust Seeks $1B From Crypto Miner Genesis Digital
The recovery trust created under FTX's Chapter 11 plan has filed a lawsuit in Delaware bankruptcy court that aims to claw back more than $1 billion that FTX's founder invested in Genesis Digital Assets Ltd., accusing the bitcoin mining firm of overinflating its value and projections to secure the funds.
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September 23, 2025
Privy Council Backs Undoing Fund's $230M Madoff Claim Sale
The top appeals court for U.K. overseas territories has endorsed a successful U.S. appeal brought by the liquidator of an overseas Bernard L. Madoff feeder fund to undo its allegedly imprudent sale of its $230 million claim against the Ponzi schemer's defunct firm to a hedge fund.
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September 22, 2025
J&J Ruling Misapplied Goldman Precedent, 3rd Circ. Told
The U.S. Chamber of Commerce and other business organizations are supporting Johnson & Johnson's call for the full Third Circuit to reconsider a ruling that the groups argue could "saddle" companies with investor class-action suits through the misapplication of a recent U.S. Supreme Court ruling.
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September 22, 2025
Spirit Airlines To Furlough 1,800 Workers Amid Ch. 11
Bankrupt budget air carrier Spirit Airlines will furlough one-third of its flight attendants in the coming months as it aims to cut costs in its bankruptcy, Spirit confirmed Monday.
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September 22, 2025
Ligado OK'd For $7.8B Debt-For-Equity Swap Ch. 11 Plan
A Delaware bankruptcy judge Monday agreed to approve telecommunications group Ligado Networks' debt-for-equity swap Chapter 11 plan, overruling the U.S. Trustee's objection over the plan potentially not taking effect for three years.
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September 22, 2025
Feds Oppose Chinese Exile Guo's Bid To Take Ch. 11 Assets
Federal prosecutors in the Southern District of New York have opposed convicted securities fraudster and bankrupt Chinese exile Miles Guo's bid to force the government to take control of assets from his own Connecticut-based Chapter 11 trustee to satisfy a $1.3 billion criminal forfeiture order.
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September 22, 2025
Puerto Rico Finance Board Members Sue Trump Over Firings
Three former members of the Financial Oversight and Management Board for Puerto Rico have sued the Trump administration alleging they were illegally fired without cause last month, asking a judge to block the "unlawful and unconstitutional" action.
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September 22, 2025
Girardi Loses Bid To Avoid Prison During Appeal
Disgraced attorney Tom Girardi will have to wait in prison while he appeals his wire fraud conviction for stealing from his own clients, a California federal judge has ruled.
Expert Analysis
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Terraform Case May Be Bellwether For Crypto Enforcement
The prosecution of crypto company Terraform Labs and its CEO, Do Kwon, offers a unique test of the line between lawful and unlawful conduct in digital transactions, and the Trump administration’s posture toward the case will provide clues about its cryptocurrency enforcement agenda in the years to come, say attorneys at Brooks Pierce.
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How Law Firms Can Counteract The Loneliness Epidemic
The legal industry is facing an urgent epidemic of loneliness, affecting lawyer well-being, productivity, retention and profitability, and law firm leaders should take concrete steps to encourage the development of genuine workplace connections, says Michelle Gomez at Littler and Gwen Mellor Romans at Herald Talent.
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5 Keys To Building Stronger Attorney-Client Relationships
Attorneys are often focused on being seen as the expert, but bonding with clients and prospects by sharing a few key personal details provides the basis for a caring, trusted and profoundly deeper business relationship, says Deb Feder at Feder Development.
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How Courts Can Filter Nonmeritorious Claims In Mass Torts
Nonmeritorious claims have been a key obstacle to settlement in many recent high-profile mass torts, but courts may be able to use tools they already have to solve this problem, says Samir Parikh at Wake Forest University.
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Series
Racing Corvettes Makes Me A Better Lawyer
The skills I use when racing Corvettes have enhanced my legal practice in several ways, because driving, like practicing law, requires precision, awareness and a good set of brakes — complete with the wisdom to know how and when to use them, says Kat Mateo at Olshan Frome.
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Serta Ruling Further Narrows Equitable Mootness In 5th Circ.
The Fifth's Circuit recent Serta bankruptcy decision represents a further hardening of its view of the equitable mootness doctrine, and may set up a U.S. Supreme Court review of the doctrine in the near future, say attorneys at Cleary.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.