Bankruptcy

  • February 19, 2025

    Silver Point Knocks SEC Suit Over Attorney Info Access Rules

    Investment adviser Silver Point Capital LP said it did not need to write special rules banning a now-deceased former BigLaw bankruptcy attorney from sharing information between its business units, accusing the U.S. Securities and Exchange Commission of filing a "farfetched theory of noncompliance" in a Connecticut enforcement action.

  • February 19, 2025

    Franchise Group Gets Tentative Deal On Ch. 11 Voting Process

    Retail chain operator Franchise Group Inc. and a group of lenders told a Delaware bankruptcy judge on Wednesday they were close to agreeing on a disclosure statement for Franchise Group's Chapter 11 plan that will let the debtor take votes on the proposed debt-for-equity and liquidation deal.

  • February 19, 2025

    EV Maker Nikola Hits Bankruptcy After Battery Recall

    Nikola Corp., maker of electric and hydrogen-powered trucks, filed for Chapter 11 bankruptcy protection Wednesday in Delaware, listing about $98 million of funded debt and blaming a sprawling battery pack recall for its financial troubles.

  • February 18, 2025

    Reed Smith Removed In $102M Shipping Group Award Fight

    A New York federal judge granted a request by the purported new owners of Eletson Holdings Inc. and removed Reed Smith LLP as counsel in a $102 million breach of contract suit the firm brought on behalf of the international shipping group in 2023.

  • February 18, 2025

    J&J Talc Unit Launches 2-Week $10B Ch. 11 Settlement Trial

    A Johnson & Johnson spinoff began its case Tuesday for a $10 billion Chapter 11 settlement of the company's talc liability before a Texas bankruptcy judge while opponents of the deal questioned the legitimacy of the bankruptcy case and the plan vote.

  • February 18, 2025

    Bankruptcy Judge OKs Plan To Close NY Nursing Home

    A New York bankruptcy judge has said a 588-bed nursing home can shut its doors if the state's Department of Health will sign off on the debtor's plan to close the facility, after the company asked for permission as it faced mounting losses.

  • February 18, 2025

    Steward Says Mass. Owes $22M For Withheld Patient Claims

    Steward Health Care has sued Massachusetts in Texas bankruptcy court to recover $22 million, which the insolvent hospital operator alleged it is owed for treating low-income patients in Massachusetts after the company filed for Chapter 11 relief.

  • February 18, 2025

    Feds Strike $29M Deal To Settle FCA Overpayment Claims

    Healthcare system SVCMC Inc. will pay $29 million to resolve allegations it held onto erroneous overpayments for medical services provided to retired military members and their families, the U.S. Department of Justice has said.

  • February 18, 2025

    Vaccine Developer Files Ch. 11 Sale Plan With $11.5M Bid

    Omega Therapeutics, which develops mRNA vaccines, filed proposed bidding procedures in Delaware bankruptcy court, saying it hopes to get a sale approved by mid-April and has a stalking-horse bid in hand worth about $11.5 million.

  • February 18, 2025

    Muni Bond Firm Stoever Glass Files For Ch. 7 In NY

    The 61-year-old Wall Street municipal bond investment firm Stoever Glass & Co. Inc. has filed for Chapter 7, reporting liabilities of up to $10 million and assets of less than $1 million.

  • February 15, 2025

    Real Estate Recap: Practice Pivot, Tariff Tax, Lennar's Lawyers

    Catch up on this past week's key developments by state from Law360 Real Estate Authority — including the latest shifts in real estate law practice, a Big Law leader's predictions for a looming tariff "tax" debate, and a look at the legal talent behind homebuilder Lennar Corp.'s $5.8 billion spinoff.

  • February 14, 2025

    Guo Ch. 11 Trustee Wins 3rd Clawback Extension, Seeks $38M

    A Connecticut bankruptcy judge for a third time on Friday extended deadlines for a Chapter 11 trustee to file adversary proceedings against individuals and entities that received money from Chinese exile Miles Guo or his alter ego shell companies, noting that this order would be the final blanket extension.

  • February 14, 2025

    SmileDirectClub Trustee Gets OK To Hire Orrick

    The Chapter 7 trustee liquidating SmileDirectClub can hire Orrick Herrington & Sutcliffe LLP as special litigation counsel, a Texas bankruptcy judge said Friday, concluding that Orrick met U.S. Bankruptcy Code requirements, despite him not being notified earlier of Orrick's previous work for the trustee.

  • February 14, 2025

    Trump Aims To End Limits On President's Power To Fire

    President Donald Trump has his sights set on taking down a 90-year-old U.S. Supreme Court ruling that protects certain government officials from being fired, a U.S. Department of Justice letter confirms, and he plans to leverage his prior legal victories to deliver the precedent's death knell and expand presidential power.

  • February 14, 2025

    Conn. Diocese Reaches $31M Deal With Abuse Claimants

    The bankrupt Roman Catholic Diocese of Norwich, Connecticut, has struck a deal to pay $31 million to sexual abuse survivors, the diocese and its unsecured creditors' committee jointly announced Friday.

  • February 14, 2025

    Camston Wrather Files For Ch. 7 With Over $100M In Debt

    California-based sustainable resource recovery company Camston Wrather LLC has filed for Chapter 7 bankruptcy listing liabilities between $100 million and $500 million along with up to $50 million in assets, citing insufficient funding to continue operations.

  • February 13, 2025

    Fla. Judge Denies Drinks Co. Ex-CEO Bid To Ax Monster Liens

    A Florida federal bankruptcy judge on Thursday declined to rule on a bid to dismiss all Monster Energy Company's claims and liens against the former CEO of the corporation that produces Bang Energy drinks, saying he lacks jurisdiction to resolve issues between two non-debtors.

  • February 13, 2025

    Chancery OKs Appraisal Suit Fix For Sears Damage Ruling

    A Sears Hometown Stores investor that saw its Delaware Court of Chancery share appraisal suit tanked by the company's bankruptcy in 2019 won a $4.06 per share payout ruling Thursday in a Court of Chancery decision focused on fair price and full and incremental damage claims.

  • February 13, 2025

    Spirit Airlines Ch. 11 Plan Releases Need More Consideration

    A New York bankruptcy judge said Thursday the Chapter 11 plan of budget air carrier Spirit Airlines met the conditions for approval, but also told the parties he needed more time to consider the third-party releases proposed in the plan and whether they were consensual.

  • February 13, 2025

    Creative Services Co. Hits Ch. 11 With $54M In Debt

    Splashlight, a New York City-based company that provides media production and creative services to brands such as Target and Nike, has filed for Chapter 11 protection, listing $39 million of assets and $53.5 million in liabilities.

  • February 13, 2025

    Lowenstein Sandler Accuses Dispensary Of 'Bad Faith' Move

    Lowenstein Sandler LLP has accused a cannabis dispensary it is suing for unpaid legal fees of effectively asking a New Jersey Superior Court judge to overturn another judge's partial denial of the dispensary's motion to dismiss the case.

  • February 13, 2025

    Sandy Hook Families Seek To Enforce Alex Jones Judgment

    Infowars founder Alex Jones should be forced to pay the judgment that Sandy Hook families won in their long-running defamation case, even though he lodged a "baseless" appeal with the Connecticut Supreme Court in an effort to create further delays, the plaintiffs said.

  • February 13, 2025

    Orrick Hires Former Head Of A&O's Restructuring Practice

    The former head of Allen & Overy's U.S. restructuring practice prior to A&O's transatlantic merger with Shearman & Sterling has joined Orrick Herrington & Sutcliffe LLP in New York.

  • February 12, 2025

    Willkie DQ'd Out Of Franchise Group Ch. 11

    A Delaware bankruptcy judge Wednesday denied retail chain operator Franchise Group Inc.'s request to retain Willkie Farr & Gallagher LLP in its Chapter 11, saying issues stemming from a transaction it worked on before the bankruptcy are too central to the company's reorganization plans.

  • February 12, 2025

    Chester, Pa., Can Probe Water Utility's Assets In Ch. 9

    A Pennsylvania bankruptcy judge gave the ailing city of Chester the green light Wednesday to probe a water utility about its assets, but stopped short of allowing the city under Chapter 9 protection to share the information or allowing an auditor to visit the utility's property.

Expert Analysis

  • Series

    Playing Chess Makes Me A Better Lawyer

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    There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.

  • 9th Circ. Clarifies ERISA Preemption For Healthcare Industry

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    The Ninth Circuit's recent ruling in Bristol SL Holdings v. Cigna notably clarifies the broad scope of the Employee Retirement Income Security Act's preemption of certain state law causes of action, standing to benefit payors and health plan administrators, say attorneys at Troutman Pepper.

  • Litigation Inspiration: Attys Can Be Heroic Like Olympians

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    Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.

  • Lean Into The 'Great Restoration' To Retain Legal Talent

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    As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.

  • NY Combined Hearing Guidelines Can Shorten Ch. 11 Timeline

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    The Southern District of New York’s recently adopted guidelines on combining the processes for Chapter 11 plan confirmation and disclosure statement approval may shorten the Chapter 11 timeline for companies and reduce associated costs, say Robert Drain and Moshe Jacob at Skadden.

  • Opinion

    Bankruptcy Judges Can Justly Resolve Mass Tort Cases

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    Johnson & Johnson’s recent announcement of a prepackaged reorganization plan for its talc unit highlights that Chapter 11 is a continually evolving living statute that can address new types of problems with reorganization, value and job preservation, and just treatment for creditors, says Kenneth Rosen at Ken Rosen Advisors PC.

  • Series

    Fishing Makes Me A Better Lawyer

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    Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge​​​​​​​ at Robinson Bradshaw.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

  • To Make Your Legal Writing Clear, Emulate A Master Chef

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    To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.

  • Circuit Judge Writes An Opinion, AI Helps: What Now?

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    Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.

  • Perspectives

    Trauma-Informed Legal Approaches For Pro Bono Attorneys

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    As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.

  • 5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant

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    In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.

  • Series

    Playing Music Makes Me A Better Lawyer

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    My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.

  • How Attys Can Avoid Pitfalls When Withdrawing From A Case

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    The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.

  • Using A Children's Book Approach In Firm Marketing Content

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    From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.

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