Bankruptcy

  • March 08, 2024

    Experian Biased Jury In Credit Reporting Suit, 11th Circ. Told

    An attorney for a Florida resident who sued Experian alleging it inaccurately reported a discharged mortgage in his credit history told the Eleventh Circuit on Friday that a lower court judge allowed the company to introduce improper evidence at trial, arguing it caused jurors to deliver an unfavorable verdict against her client.

  • March 08, 2024

    Sorrento Gets OK For $2M Ch. 11 Funding Infusion, Asset Sale

    A Texas bankruptcy judge on Friday approved drug developer Sorrento Therapeutics Inc.'s bid for an asset sale and $2 million in funds to fuel its Chapter 11 case, saying they represented the only option outside of a transition to Chapter 7.

  • March 08, 2024

    Aircraft Parts Co. AeroCision Begins Ch. 11 Liquidation

    AeroCision, a troubled supplier of airplane components, has informed Delaware's bankruptcy court its Chapter 11 liquidation plan has gone into effect, distributing remaining assets of the business after it went on the auction block late last year.

  • March 08, 2024

    UBS Luxembourg Must Face $50M Madoff Clawback Suit

    UBS Luxembourg can't escape a lawsuit seeking to claw back nearly $50 million the bank allegedly redeemed from Bernard L. Madoff feeder fund Fairfield Sentry Limited at highly inflated values, a New York bankruptcy judge ruled on Friday. 

  • March 08, 2024

    Kwok Judge Lets Gov't Keep $302M In Crypto For Restitution

    A New York federal judge has denied a request to return more than $300 million in assets to holders of cryptocurrrency issued by bankrupt Chinese exile Ho Wan Kwok's Himalaya Exchange, finding that the federal government has a continued interest in the property it seized.

  • March 08, 2024

    Giuliani Creditors Ask To Investigate His Finances

    Former New York City Mayor Rudy Giuliani's creditors want to probe his finances, his businesses, his advisers and even defense funds paying some of his legal bills, telling a bankruptcy court in a filing late Thursday that his history of shirking discovery requests in other cases and concerns that he could be hiding assets warrant a formal investigation.

  • March 08, 2024

    BowFlex OK'd For April Auction, $37.5M Stalking Horse Bid

    Fitness equipment maker BowFlex Inc. received a New Jersey bankruptcy judge's approval Friday to sell its U.S. and Canada businesses at an auction next month, setting it up to repay its debtor-in-possession loan and draw up a Chapter 11 liquidation plan.

  • March 08, 2024

    Clifford Chance Adds Arnold & Porter Restructuring Duo

    Clifford Chance LLP is no exception to the wave of firms seeking restructuring talent in recent months, announcing Thursday that it's brought on two former Arnold & Porter Kaye Scholer LLP attorneys with a history of working on high-stakes reorganizations.

  • March 08, 2024

    Catholic Group Gets $2M Fee Award In Boy Scouts' Ch. 11

    A Delaware bankruptcy judge on Friday awarded an ad hoc group of Roman Catholic organizations just over $2 million in legal fees and expenses in the Boy Scouts of America's Chapter 11 case, saying it had made a substantial contribution to the group's bankruptcy plan.

  • March 07, 2024

    No Pretrial Win For Anyone In $1.3M Dish Network Print Fight

    A Colorado federal judge on Thursday rejected dueling summary judgment motions in a $1.3 million contract fight between a Dish Network unit and defunct printing company, finding the companies' "vehement disagreement" about simple facts of the case makes clear it can't be decided at this stage.

  • March 07, 2024

    Asbestos Claimants Refuel Bid To Chuck Bestwall Ch. 11

    Mesothelioma victims seeking recompense for asbestos exposure are taking another stab at throwing out the bankruptcy case of Georgia-Pacific unit Bestwall LLC, telling a North Carolina federal judge that the papermaker has abused the bankruptcy process to shield itself from liability.

  • March 07, 2024

    Judge Delays Final OK For Almond Grower's Ch. 11 Loan

    A California bankruptcy judge Thursday pushed back final approval of $30 million in Chapter 11 financing for almond grower Trinitas Farming by at least another week, saying more time is needed to address his concerns with the loan agreement.

  • March 07, 2024

    Cano Health's Ch. 11 Financing Approved Consensually

    Primary care group Cano Health Inc. told a Delaware bankruptcy judge Thursday that productive talks with a recently appointed creditors' committee had enabled it to submit a consensual order to gain final approval for its $150 million Chapter 11 loan.

  • March 07, 2024

    Ex-SVB Counsel Farella Braun Seeks $49K In Unpaid Fees

    Farella Braun & Martel LLP, which previously represented Silicon Valley Bank's parent in a dispute over fraud coverage, has sued the Federal Deposit Insurance Corp. in a California federal court to extract nearly $49,000 in unpaid legal fees it says the agency must pay on behalf of the defunct lender.

  • March 07, 2024

    Equity Concerns Follow Mass Torts' March Into Bankruptcy

    After decades of suffering and waiting, a group of more than 82,000 childhood sexual abuse survivors recently reached a $2.5 billion bankruptcy settlement with the Boy Scouts of America and related groups. Yet the survivors may once again be in suspense.

  • March 07, 2024

    Bankruptcy Group Of The Year: White & Case

    White & Case LLP spent 2023 in the trenches of new and emerging issues in bankruptcy, steering the Boy Scouts of America out of Chapter 11 and breaking down the bankruptcy process for hundreds of thousands of former customers and unsecured creditors of former crypto company Celsius Network, earning the firm a spot as one of Law360's 2023 Bankruptcy Groups of the Year.

  • March 07, 2024

    Honigman Picks Up Corporate Attorney From Ropes & Gray

    Honigman LLP said it has hired away a Ropes & Gray LLP counsel with finance transaction expertise who started his career at Honigman to become a partner in its corporate finance practice group.

  • March 07, 2024

    EV Charging Co. Hits Ch. 11 With Plan For Lender Takeover

    Electric vehicle charging company Charge Enterprises Inc. filed for Chapter 11 protection Thursday in Delaware bankruptcy court with $48.7 million in debt, saying it plans to hand control of the company to lenders following a dispute with an investment adviser.

  • March 06, 2024

    Yellow Corp. Faces Pension Funds' Arbitration Bid In $6B Spat

    Eleven retirement funds urged a Delaware bankruptcy judge Wednesday to order Yellow Corp. to arbitrate their claims worth over $6 billion, arguing it would be efficient to take the dispute before a benefits plan expert, while the trucking firm insisted that arbitration would delay its ongoing Chapter 11 proceedings.

  • March 06, 2024

    SVB Parent Co. Sues Receivers Over $1.9B In Withheld Funds

    Silicon Valley Bank's former parent company has sued the Federal Deposit Insurance Corp. in its capacity as receiver for its defunct subsidiary and Silicon Valley Bridge Bank in California federal court, alleging it was wrongfully denied its administrative claims to recover approximately $1.9 billion in account funds and other deposit claims.

  • March 06, 2024

    BlockFi, FTX Strike Global Deal To Settle Bankruptcy Disputes

    Fallen cryptocurrency giants BlockFi Inc. and FTX have settled their wide-ranging feud, with BlockFi allowed claims for $874.5 million and FTX to lay claim to roughly $600 million worth of liquidated Robinhood shares, formally ending all disputes and litigation between the two companies.

  • March 06, 2024

    11th Circ. Told IRA Account Isn't Exempt From $1.6M Ruling

    An attorney representing a group of creditors told the Eleventh Circuit on Wednesday that the individual retirement account belonging to a medical doctor-turned-developer isn't exempt from a $1.6 million judgment related to fraud, saying the Florida federal bankruptcy court ignored a ruling made in an Alabama state court.

  • March 06, 2024

    Del. Judge Asks If Byju's Ch. 11 Clawback Bid Is A Legal Claim

    A Delaware bankruptcy judge asked for more briefing on a temporary restraining order demand by the U.S. arm of Indian tech giant Byju's Wednesday, saying he wasn't sure he had the authority to issue such an order in the debtor's $533 million clawback action because Byju's is seeking the return of cash assets.

  • March 06, 2024

    Judge Rejects Equity Challenge To Virgin Orbit Ch. 11

    A Delaware bankruptcy judge on Wednesday told Virgin Orbit LLC shareholders that she wouldn't retract confirmation of the satellite launch company's Chapter 11 liquidation plan, because Virgin Orbit appropriately sought approval even if the scheme left equity holders without hope of recoveries.

  • March 06, 2024

    Kwok Trustee Asks For Ch. 11 Pause During NY Criminal Trial

    The Chapter 11 trustee overseeing the $374 million case of Chinese exile Ho Wan Kwok has urged a Connecticut bankruptcy judge to pause a racketeering suit and roughly 270 avoidance actions, saying the stay would lighten the court's administrative burden while also allowing Kwok to face trial in New York.

Expert Analysis

  • USW Ruling Highlights Successor Liability In Bankruptcy Sale

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    A Delaware federal court's recent decision in United Steelworkers v. Braeburn is important for potential asset purchasers in Section 363 bankruptcy sales as it found the purchaser was subject to obligations under the National Labor Relations Act notwithstanding language in the sale approval order transferring the debtor's assets free and clear of successor liability, say attorneys at Arnold & Porter.

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • Ch. 12 Ruling Is A Helpful Addition To Interest Rate Case Law

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    In its recent In re: Topp ruling, the Eighth Circuit addressed the question of which rate of interest debtors should pay under a bankruptcy plan, showing that the choice of interest rate plan is a factual issue subject to appellate review for clear error, and not a legal issue subject to de novo review, says Donald Swanson at Koley Jessen.

  • Section 363 Ruling Lines Up With Avoidance Action Precedent

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    While it is safe to say that avoidance actions in bankruptcy cases are the exception, not the rule, when selling assets in a Section 363 sale, the Eighth Circuit’s recent ruling in Simply Essentials’ Chapter 5 case reveals uniformity among courts that have considered the issue, says Daniel Lowenthal at Patterson Belknap.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

  • Series

    Participating In Living History Makes Me A Better Lawyer

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    My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.

  • How Attys Can Weather The Next Disaster Litigation Crisis

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    On the heels of a number of damage catastrophes and ensuing litigation this summer alone, attorneys must recognize that it’s a matter of when, not if, the next disaster — whether natural or artificial — will strike, and formulate plans to minimize risks, including consolidating significant claims and taking remedial measures, says Mark Goldberg at Cosmich Simmons.

  • Opinion

    Private Equity Owners Can Remedy Law Firms' Agency Issues

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    Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.

  • Opinion

    Proving Causation Is Key To Fairness And Justice

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    Ongoing litigation over talc and acetaminophen highlights the important legal distinction between correlation and causation — and is a reminder that, while individuals should be compensated for injuries, blameless parties should be protected from unjust claims, say Drew Kershen at the University of Oklahoma College of Law, and Henry Miller at the American Council on Science and Health.

  • Potential WeWork Bankruptcy May Disrupt Coworking Spaces

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    If WeWork files for bankruptcy, as hinted at in its recent quarterly earnings report, landlords may struggle to take over management of WeWork's coworking spaces, but the coworking industry as a whole is showing some promise in adapting to the market's evolving post-pandemic office needs, says Ann Chandler at Hall Estill.

  • How To Protect Atty-Client Privilege While Using Generative AI

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    When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.

  • What FERC-PJM Negotiations Mean For The Energy Industry

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    Following the aftermath of Winter Storm Elliot, disputes associated with the PJM Interconnection settlement negotiations taking place at the Federal Energy Regulatory Commission have brought to the fore a potential legal minefield arising out of extreme weather events that could lead to commercial risks for power generating companies, say attorneys at Hogan Lovells.

  • How New Lawyers Can Leverage Feedback For Growth

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    Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.

  • Circuit Rulings Confirm Ch. 11 Trustee Fee Refund Trend

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    Recent Ninth and Eleventh Circuit rulings that Chapter 11 debtors are entitled to refunds for unconstitutional bankruptcy trustee fees paid under the Bankruptcy Judgeship Act support a developing trend in debtors' favor, making it likely that courts considering the same question will follow suit, says Adam Herring at Nelson Mullins.

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