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Bankruptcy
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September 11, 2025
Capital One Sues FDIC Over $149M SVB Bailout Charge
Capital One has sued the Federal Deposit Insurance Corp. in Virginia federal court challenging a $149 million charge in a special assessment levied by the agency as part of an effort to recoup losses from the 2023 regional banking crisis, saying the FDIC improperly included certain data in its calculation of the special assessment.
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September 11, 2025
Colo. Judge Says $1.5M Damages Request May Be 'Piling On'
A Colorado federal judge was skeptical Thursday to award a $1.5 million default judgment against the owner of a now-defunct metal fabrication and construction company who was accused by former employees in a class action of failing to pay wages in the months before the business filed for bankruptcy.
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September 11, 2025
SEC Drops Suit Against Nikola Founder After Trump's Pardon
The U.S. Securities and Exchange Commission on Thursday ended its civil enforcement action in New York federal court against Nikola founder Trevor Milton months after he was pardoned by President Donald Trump for his securities fraud conviction on charges of lying to boost the company's stock on Wall Street.
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September 11, 2025
Bankrupt $300M Fla. Project Gets Nod On DIP Loan
A Florida bankruptcy judge on Thursday signed off on a $1.75 million debtor-in-possession loan and approved a chief restructuring officer for the debtors of a $300 million real estate development to buy time for the parties to work out a deal to exit bankruptcy.
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September 11, 2025
3rd Circ. Won't Toss Talc Co. Whittaker Clark & Daniels' Ch. 11
Defunct talc supplier Whittaker Clark & Daniels properly filed for Chapter 11 protection in 2023 and its bankruptcy case should not be dismissed, the Third Circuit has ruled, siding against talc claimants who argued the company already being in receivership precluded it from filing for bankruptcy.
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September 11, 2025
JCPenney Settles Fee Dispute Over Jackson Walker Romance
The corporate entities formerly known as JCPenney on Thursday asked a Texas federal court to greenlight a $1.4 million settlement with Jackson Walker PC in a dispute concerning the romance of a partner with a bankruptcy judge, the latest and largest of several settlements to seek approval in recent months.
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September 11, 2025
Entities Tied To Several CVS Locations File For Ch. 11
Several entities tied to properties operating as CVS locations have filed for Chapter 11 bankruptcy in Delaware, saying that the filings are "in the best interests" of the debtors, creditors and other stakeholders.
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September 11, 2025
Magnesium Producer Hits Ch. 11 Following Plant Failures
US Magnesium LLC, once North America's largest producer of primary magnesium, has filed for Chapter 11 protection in Delaware bankruptcy court with up to $500 million of debt, years after major equipment failures at its Utah facility ground production to a halt.
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September 10, 2025
Fla. Judge Chides Attys Over Discovery In High-Rise Ch. 11
A Florida federal judge on Wednesday chided attorneys over discovery deadlines in a Chapter 11 bankruptcy case involving a downtown Miami high-rise development, setting an October deadline to produce documents after requests weren't fulfilled on time.
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September 10, 2025
Hydroxycut Maker Iovate Gets Ch. 15 Relief As Case Kicks Off
A New York bankruptcy judge agreed Wednesday to temporarily stay creditor actions against Canadian dietary supplement business Iovate Health Sciences one day after the Hydroxycut maker sought Chapter 15 protection.
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September 10, 2025
NIST Links Start Of Surfside Towers Collapse To Pool Deck
The National Institute of Standards and Technology's ongoing investigation into the 2021 partial collapse of the Champlain Towers South in Surfside, Florida, shows the collapse likely began in the 12-story residential building's pool deck, rather than in the main tower structure.
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September 10, 2025
$36M DOL Award Unjustified, Nursing Homes Tell 3rd Circ.
A group of bankrupt nursing homes told a Third Circuit panel Wednesday that a nearly $36 million judgment against it for not paying employees overtime should be thrown out because the judge who ordered it found sweeping Fair Labor Standards Act violations across the company without the support of the evidence.
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September 10, 2025
Guo Trustee, Law Firms Get OK For Deals On $4.4M Disputes
A Connecticut bankruptcy judge has approved deals between Chinese exile Miles Guo's Chapter 11 trustee and the law firm McDermott Will & Schulte, four other law firms and one consulting firm, ending $4.4 million in potential clawback claims without formal litigation.
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September 10, 2025
Firm Seeks To Toss Lowenstein Sandler Claims Over Affidavit
Trif & Modugno LLC has reiterated to the Essex County Superior Court in New Jersey that part of a malpractice suit filed against it by Lowenstein Sandler LLP must be dismissed because the national firm did not file an affidavit of merit within the time limit.
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September 10, 2025
Bowling Chain Pinstripes Gets Interim OK Of $3.8M DIP Loan
A Delaware bankruptcy judge on Wednesday granted interim approval for Italian eatery and bowling chain Pinstripes' $3.8 million debtor-in-possession financing from its prepetition lender, which will help the company navigate its Chapter 11 proceedings and pursue a going-concern sale.
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September 10, 2025
Subprime Lender Tricolor Auto Hits Ch. 7 With Over $1B Debt
Tricolor Holdings, a Texas-based company that provides car loans to low-income buyers, and several affiliates filed for Chapter 7 liquidation in Texas bankruptcy court Wednesday with more than $1 billion of debt.
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September 09, 2025
Ariz. Developer, Son Get Prison For $280M Sports Park Fraud
An Arizona developer and his son were both sentenced to prison Tuesday for deceiving investors into sinking $280 million into a Phoenix-area sports park by forging documents and inflating revenue projections for the facility, which entered bankruptcy soon after it opened.
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September 09, 2025
Hoodie Co. Wants $3.6M In Fees After Trial Loss Overturned
A sweatshirt maker wants $3.6 million in attorney fees from a rival after a $21 million judgment that forced it into bankruptcy was overturned by the Federal Circuit in July, saying the judgment was based on meritless allegations all along.
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September 09, 2025
2nd Circ. Allows NY AG To Curb Nonprofit's Debtor Coaching
The Second Circuit vacated a lower court order that prevented New York Attorney General Letitia James from stopping a bankruptcy education nonprofit from advising low-income debtors Tuesday, saying that while the state's unauthorized practice of law statutes regulate speech, they are content neutral and should be reviewed under intermediate scrutiny.
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September 09, 2025
Ohio Aerospace Manufacturer Hits Ch. 11 To Rework Debt
Cincinnati-based manufacturer CTL-Aerospace Inc. filed for Chapter 11 with at least $15 million in debt saying material sourcing troubles last year left it with an operating loss with limited funding avenues.
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September 09, 2025
Approach The Bench: Judge Shannon Discusses Bankruptcy
Bankruptcy might seem like a technical and obscure practice area, but not to U.S. Bankruptcy Judge Brendan Shannon.
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September 09, 2025
Bowling And Eatery Chain Pinstripes Hits Ch. 11 Seeking Sale
Illinois-based bowling and restaurant chain Pinstripes has filed for Chapter 11 protection in Delaware bankruptcy court with more than $143 million in debt and plans to seek a going concern sale.
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September 08, 2025
FDIC Bests Farella Braun In Dispute Over SVB Legal Fees
A California federal judge has sided with the Federal Deposit Insurance Corp. in a dispute over $48,800 in unpaid legal bills that Farella Braun & Martel LLP sought for work it did before Silicon Valley Bank's collapse, finding the firm's invoices lacked key details like hours and billing rates.
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September 08, 2025
London Insurers Owe Full Coverage Limits To NY Archdiocese
Certain underwriters at Lloyd's of London and other London market insurers must pay their full applicable policy limits under policies issued to the Archdiocese of New York, a state court ruled Monday in the archdiocese's suit seeking coverage for thousands of sexual abuse claims.
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September 08, 2025
Calif. Says Defunct SVB Owes State Over $76M In Taxes
The former parent company of Silicon Valley Bank owes the state of California upward of $76 million in taxes on income from a portfolio of securities for years leading up to the bank's failure, a state taxing authority told a New York bankruptcy court.
Expert Analysis
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A Strategic Checklist For Bankruptcy Motion Objections
Excerpt from Practical Guidance
Hewing to a set of best practices for objecting to a motion in bankruptcy cases can help creditors’ counsel stay on track as they juggle deadlines and jurisdictions, determine whether filing will help or harm the client, and negotiate with the debtor.
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Promoting Diversity In The Selection Of ADR Neutrals
Excerpt from Practical Guidance
Choosing neutrals from diverse backgrounds is an important step in promoting inclusion in the legal profession, and it can enhance the legitimacy and public perception of alternative dispute resolution proceedings, say attorneys at Lowenstein Sandler.
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Series
Playing Ultimate Makes Us Better Lawyers
In addition to being fun, ultimate Frisbee has improved our legal careers by emphasizing the importance of professionalism, teamwork, perseverance, enthusiasm and vulnerability, say Arunabha Bhoumik and Adam Bernstein at Regeneron.
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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The 3rd-Party Bankruptcy Release Landscape After Purdue
In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Bankruptcy Decision Exemplifies Venue Issue For Franchisees
A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.