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Bankruptcy
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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.
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September 22, 2025
CVS's Omnicare Hits Ch. 11 After $949M FCA Judgment
Omnicare LLC, CVS Health's subsidiary that provides pharmacy services for long-term care facilities, filed for Chapter 11 bankruptcy relief Monday in Texas following a $949 million judgment against Omnicare and CVS issued by a New York federal judge earlier this year.
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September 22, 2025
Crime-Fraud Exemption Applies To Eletson Docs, Judge Says
Reed Smith LLP has until the end of the day on Monday to turn over a dozen client files related to its prior representation of shipping company Eletson Holdings amid a dispute with rival Levona, after a Manhattan federal judge found probable cause that a fraud was committed in an underlying arbitration.
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September 22, 2025
ProPhase COVID-19 Testing Units Hit Ch. 11 In NJ
Biotechnology company ProPhase Labs Inc. put three of its COVID-19 laboratory testing subsidiaries in Chapter 11 bankruptcy Monday in New Jersey with combined liabilities of more than $13 million, saying it has been underpaid by insurance companies.
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September 19, 2025
Gov't Must Keep Waiting To Pursue Oil Cleanup Claims
A Washington federal judge will continue to pause the U.S. government's claims against two defendants in an environmental cleanup case following a 2021 incident in which a derelict fishing vessel ran aground while being towed off the California coast.
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September 19, 2025
Bankruptcy Firm Fined, Banned For 3 Years Over Disclosures
A Michigan bankruptcy judge has hit Recovery Law Group, a national consumer bankruptcy law firm, with a fine of about $392,000 and a three-year ban on bringing insolvency cases in the Eastern District of Michigan, finding it violated fee disclosure requirements in 220 cases.
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September 19, 2025
FTX Trust Says Bankruptcy Laws Apply To Binance Founder
The recovery trust created by the Chapter 11 plan of cryptocurrency exchange FTX told a Delaware judge late Thursday that the bankruptcy court has jurisdiction over Binance and its founder in a $1.76 billion clawback suit, and that bankruptcy laws apply to entities outside the United States.
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September 19, 2025
Co. Tied To Lehman Ex-Restructuring Chief Faces Loan Suit
A holding company linked to Lehman Brothers' post-2008 era restructuring professional defaulted on a commercial loan secured by a large office building and now owes a reinsurer about $19.5 million, according to a lawsuit brought in North Carolina's business court.
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September 19, 2025
MMA Law Inks Deals With Firms, Insurance Group
A Texas bankruptcy judge has signed off on a series of settlements worth $2.6 million to resolve claims brought by bankrupt MMA Law that other law firms and parties were holding back money it was owed for representing Louisiana hurricane victims.
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September 19, 2025
Polsinelli Adds ArentFox Schiff Bankruptcy Pro In NY
Polsinelli PC has expanded its bankruptcy team in New York with the addition of an attorney from ArentFox Schiff LLP.
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September 19, 2025
Rite Aid Gets OK To Seek Votes On Dual-Track Ch. 11 Plan
A New Jersey bankruptcy judge on Friday approved drugstore chain Rite Aid's bid to take votes on a Chapter 11 plan as the debtor weighs whether to complete a deal with McKesson Corp. or formally seek to dismiss its bankruptcy case.
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September 18, 2025
Prospect Medical Says It May Drop Stay On Tort Cases
Counsel for Prospect Medical Holdings on Thursday told a Texas bankruptcy judge that talks to establish a procedure for handling tort claims in the hospital operator's Chapter 11 case have deadlocked, and it's prepared to let hundreds of tort claimants go back to the courthouse.
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September 18, 2025
SafeMoon Ch. 7 Trustee Pitches $12M Settlement
Cryptocurrency asset company SafeMoon US LLC's Chapter 7 trustee has asked a Utah bankruptcy judge to approve a settlement for a class action alleging the company defrauded investors, saying the deal to pay plaintiffs at least $12 million is fair and wise.
Expert Analysis
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Consultants Should Be Aware Of DOJ's Potential New Reach
The U.S. Department of Justice's recent first-of-its-kind settlement with McKinsey & Co. indicates not only the DOJ's more aggressive stance toward businesses' potential criminal wrongdoings, but also the benefits of self-disclosure and cooperation when wrongdoing becomes apparent, says Dom Caamano at Kibler Fowler.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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An Associate's Guide To Career Development In 2025
As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.
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Series
Fixing Up Cars Makes Me A Better Lawyer
From problem-solving to patience and adaptability to organization, the skills developed working under the hood of a car directly translate to being a more effective lawyer, says Christopher Mdeway at Kaufman Dolowich.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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Justices May Find Gov't Can Keep Fraudulent Transfer Benefit
Based on the justices' questions at the recently argued U.S. v. Miller, the Supreme Court appears prepared to hold that the U.S. — unlike any other creditor — is permitted to retain the benefits of a fraudulent transfer to the detriment of other bankruptcy creditors, says Kevin Morse at Clark Hill.
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When US Privilege Law Applies To Docs Made Outside The US
As globalization manifests itself in disputes over foreign-created documents, a California federal court’s recent trademark decision illustrates nuances of both U.S. privilege frameworks and foreign evidentiary protections that attorneys must increasingly bear in mind, say attorneys at Hunton.
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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.