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Bankruptcy
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April 03, 2025
Loyalty Platform Kognitiv Hits Ch. 11 With Over $10M In Debt
Customer loyalty platform Kognitiv US LLC filed for Chapter 11 on Wednesday in Delaware bankruptcy court, citing more than $10 million in liabilities with a plan to sell its assets to another loyalty platform.
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April 03, 2025
US Trustee Wants Jackson Walker Cases In District Court
The U.S. Trustee's Office has renewed its call for a district court trial over whether Jackson Walker LLP should return millions in fees for failing to disclose an ex-partner's romance with a bankruptcy judge, saying all the questions in the case should be tried in one venue.
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April 03, 2025
Franchise Group, Lenders Clash Over Control Of Ch. 11 Case
A Delaware bankruptcy judge said Thursday she would soon decide whether retail-chain owner Franchise Group Inc. can keep exclusive control over its efforts to confirm a reorganization deal, as a group of lenders that considers the debtor's Chapter 11 plan "unconfirmable" works to intervene in the process.
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April 03, 2025
Reed Smith Wants To Pull Out Of Eletson Ch. 11
An attorney from Reed Smith LLP asked a New York bankruptcy judge Thursday to let the firm withdraw its representation of one of two parties vying to control international shipping group Eletson Holdings, noting that opposing counsel has urged it for months to exit the case.
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April 02, 2025
Hooters Can Tap $5M Of Its $40M In Proposed Ch. 11 Loans
Bankrupt restaurant chain Hooters of America LLC can access $5 million in interim financing from a $40 million debtor-in-possession package from its prepetition lenders as it transitions to a franchise-only model, a Texas bankruptcy judge said Wednesday.
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April 02, 2025
Aspiration Partners Gets Interim OK For Ch. 11 Financing
Sustainability-focused financial services provider Aspiration Partners Inc. on Wednesday secured the Delaware bankruptcy court's interim approval to tap $2.2 million of an $18 million Chapter 11 financing facility as the company looks for a buyer, following its co-founder's arrest last month on federal fraud charges.
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April 02, 2025
PE Firm TPG Wants Endo Trust's Transfer Suit Tossed
Private equity firm TPG Capital is seeking the dismissal of a lawsuit that aims to claw back billions of dollars reaped in an allegedly unfair deal with Endo International PLC before the drugmaker went bankrupt.
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April 02, 2025
9th Circ. Doubts Bang Energy Founder's $272M Verdict Appeal
A Ninth Circuit panel expressed skepticism Wednesday about an attempt to undo Monster Beverage Corp.'s $272 million false advertising trial win against the founder of Vital Pharmaceuticals Inc., the now-defunct company behind Bang Energy drinks.
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April 02, 2025
Baltimore Diocese Abuse Claimants Sue Over Immunity Bid
Childhood sex abuse claimants are suing the bankrupt Archdiocese of Baltimore in a bid to stop the Catholic organization from using a charitable immunity defense to avoid paying claims that aren't covered by the debtor's insurance, urging a Maryland federal judge to declare that the defense isn't available in the bankruptcy case.
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April 02, 2025
Chester, Pa., Ch. 9 Document Dispute Won't Wait For Appeal
A Pennsylvania bankruptcy judge on Wednesday scuttled a request from the Chester Water Authority for a stay pending appeal of an order to produce documents to the bankrupt city of Chester, saying the utility hadn't shown the order should be frozen.
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April 01, 2025
CarePoint's Bankruptcy Plan Needs Changes, Judge Says
A Delaware bankruptcy judge determined on Tuesday that more work is needed on the Chapter 11 plan from New Jersey hospital operator CarePoint that would have handed control of the health system's medical facilities to one of its creditors, finding the debtor must address another creditor's claim that its collateral has diminished in value.
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April 01, 2025
Heritage Coal OK To Use Lender Cash Amid Settlement Effort
A Delaware bankruptcy judge on Tuesday approved Heritage Coal owner KTRV's bid to continue using cash to support its operations as the company works to strike a settlement with secured lender Bedrock Industries.
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April 01, 2025
InterCement Gets Ch. 15 Recognition Of Brazil Restructuring
A New York bankruptcy judge on Tuesday recognized cement supplier InterCement's reorganization efforts in Brazil, overruling an objection from an ad hoc group of New York noteholders that said a subsidiary's restructuring belonged in the Netherlands.
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April 01, 2025
Talc Claimants Tell 3rd Circ. Whittaker Couldn't File Ch. 11
Talc injury claimants on Tuesday asked the Third Circuit to dismiss Whittaker Clark & Daniels' Chapter 11 case, saying a South Carolina state judge had given control of the talc supplier to a receiver six weeks before the company filed for bankruptcy.
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April 01, 2025
Ariz. Developer, Son Charged In $280M Sports Park Fraud
An Arizona developer and his son tricked bondholders into investing $280 million in a Phoenix-area youth sports park by falsely promising "100% occupancy prior to breaking ground" in part via the use of forged documents, federal prosecutors in Manhattan charged Tuesday.
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March 31, 2025
Hooters Hits Ch. 11 With Plans For Restaurant Sales
Restaurant chain Hooters filed for Chapter 11 protection in a Texas bankruptcy court late Monday with about $380 million in debt, saying it has reached a deal to shed its company-owned restaurants and trade debt for equity.
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March 31, 2025
J&J Talc Spinoff's Ch. 11 Case Gets Tossed, Erasing $9B Deal
A Texas bankruptcy judge rejected Johnson & Johnson's third attempt to use Chapter 11 to settle thousands of claims that its products caused cancer, dismissing J&J unit Red River Talc's Chapter 11 case on Monday and throwing out a roughly $9 billion bankruptcy deal over issues with the company's voting procedures and third-party releases.
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March 31, 2025
Costa Rica Dodges Bankrupt Telecom Co.'s $25M Claim
A bankrupt telecommunications company owner's $25 million arbitration against Costa Rica has been discontinued after the owner failed to show he could deposit and maintain a surety bond to secure the costs of the proceedings, according to the country's counsel.
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March 31, 2025
FTC Chair Flags Data Risks In 23andMe Bankruptcy
The Federal Trade Commission has added to the swell of privacy and security concerns surrounding the potential sale of sensitive consumer information swept up in the 23andMe bankruptcy, with the agency's Republican chair on Monday stressing the importance of data continuing to be protected in the way that users have been promised.
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March 31, 2025
Carlton Fields Faces DQ Bid In $500M Miss America Suit
Carlton Fields faces a disqualification bid for allegedly having a conflict of interest in a $500 million lawsuit regarding the ownership of the company that runs the Miss America pageant.
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March 31, 2025
Feds Seek 10 Years For Ex-Girardi CFO's 'Brazen' Crimes
Los Angeles federal prosecutors said Girardi Keese's former head of accounting should spend 10 years in prison after pleading guilty to assisting Tom Girardi in siphoning clients' settlement funds and what the government called a "brazen" side fraud to steal from the firm's operating accounts.
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March 31, 2025
Calif. Pot Co. Seeks Receivership, Blames Merger 'Disaster'
A cannabis producer in California has moved to enter receivership in state court, disclosing more than $173 million in liabilities and saying a 2023 merger with its parent company proved to be a "financial disaster."
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March 31, 2025
Aspiration Partners Hits Ch. 11 After Founder's Fraud Arrest
Sustainability-focused financial services company Aspiration Partners Inc. filed for Chapter 11 protection in Delaware, less than a month after founder Joseph Sanberg was arrested and hit with federal fraud charges.
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March 31, 2025
Dolphin Visit Co. Files For Ch. 11 With Debt Over $100M
Ejecutivos de Turismo Sustentable SA de CV, a business related to park and dolphin habitat operator The Dolphin Company, filed for bankruptcy Monday in Delaware with 14 affiliates and cited over $100 million in debt.
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March 31, 2025
Heritage Coal Files For Ch. 11, Alleging Ex-Owner Sabotage
Heritage Coal and its owner KTRV have both filed for Chapter 11 protection in Delaware, saying Heritage's owner prior to KTRV has asserted ownership over the debtors' assets and taken steps to sabotage and vandalize the debtors' mining equipment.
Expert Analysis
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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.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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What Being An 'Insider' Means In Ch. 11, And Why It Matters
As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.