Bankruptcy

  • February 28, 2024

    Gemini To Pay $37M Fine, Vows To Make Customers Whole

    Crypto exchange Gemini Trust Co. has committed to making users of its now-shuttered Earn product whole through the bankruptcy of its former partner Genesis Global under a new settlement with a New York regulator that included a $37 million fine for additional alleged compliance failures.

  • February 28, 2024

    Kwok Trustee Seeks Second Judge's Help With Clawbacks

    Offering four high-profile bankruptcies as examples, the Chapter 11 trustee overseeing the $374 million case of Chinese exile Ho Wan Kwok has suggested that a second Connecticut bankruptcy judge could act as a mediator to help speed a deluge of 278 avoidance actions efficiently toward possible settlements.

  • February 28, 2024

    NY Bar Assoc. Building Owner Hits Ch. 11 Amid Lender Tiff

    The company that controls the historic New York County Lawyers Association Building in Manhattan petitioned a New Jersey bankruptcy court for Chapter 11 protection Wednesday, estimating between $50 million and $100 million in debt, as it faces in New York a roughly $28 million lawsuit leveled by a mortgage lender.

  • February 28, 2024

    Brazilian Airline Approved For Ch. 11 Loan Worth $1B

    GOL Linhas Aereas Inteligentes SA received final bankruptcy court approval Wednesday for a debtor-in-possession financing package that has grown to $1 billion after achieving consensus with creditors that previously objected to the package.

  • February 28, 2024

    Bankrupt Coffee Co. Says Nicaraguan Asset Sale Unlikely

    Coffee supplier Mercon Coffee Corp. Wednesday told a New York bankruptcy judge it no longer believes it will be able to win government cooperation for the sale of its Nicaraguan assets before it runs out of cash to fund its Chapter 11 case.

  • February 28, 2024

    Homeowners Urge Judge To Toss 'Tactical' MV Realty Ch. 11

    A committee of homeowners who signed agreements with MV Realty told a Florida bankruptcy judge on Tuesday that the company filed for Chapter 11 as a maneuver to dodge a series of state actions seeking to void predatory deals with some 40,000 homeowners in 34 states.

  • February 28, 2024

    Erika Girardi Can't Shed Costume Merchant's Suit

    A California federal judge has kept alive a costume merchant's malicious prosecution claim against singer and reality TV star Erika Girardi, saying the merchant showed evidence that Girardi had him wrongfully arrested and prosecuted on made-up fraud charges.

  • February 28, 2024

    US Trustee Taps Ex-Prosecutor To Be FTX Examiner

    The U.S. Trustee's Office has urged a Delaware bankruptcy judge to allow Robert Cleary, a former U.S. attorney who is now with Patterson Belknap Webb & Tyler LLP, to investigate FTX's finances as an examiner in the defunct cryptocurrency company's Chapter 11 case.

  • February 28, 2024

    NuVasive Can Pierce Co. To Collect From Ex-Rep, Judge Says

    NuVasive Inc. can pierce the corporate veil to collect a $617,000-plus arbitration judgment it won against a company operated by one of its former sales representatives who improperly cut ties with the medical device company and violated his noncompete agreement, a Boston federal judge has ruled. 

  • February 28, 2024

    Major Amazon Seller Thrasio Enters Ch. 11 To Cut $500M Debt

    Thrasio Holdings Inc., a consumer goods company that is one of Amazon's largest third-party sellers, announced Wednesday that it entered Chapter 11 bankruptcy in New Jersey with the aim of cutting nearly $500 million in debt while bringing in more capital.

  • February 27, 2024

    Bankman-Fried Urges No More Than 6.5 Years For FTX Fraud

    FTX founder Sam Bankman-Fried asked a Manhattan federal judge late Tuesday for a sentence that releases him "promptly" after his conviction for stealing billions from customers of the now-collapsed crypto exchange, arguing that federal sentencing guidelines recommend no more than six-and-a-half years in prison.

  • February 27, 2024

    Ex-Girardi Keese Atty Settles With Actress Over Missing Cash

    An actress alleging that Erika Girardi's entertainment company helped her husband's now-defunct law firm, Girardi Keese, hide his clients' stolen money, including $744,000 stolen from her, finalized a $6,000 settlement with one of the firm's attorneys on Tuesday when a California judge signed off on the deal.

  • February 27, 2024

    Atty Isn't Liable As Husband's Firm Partner, NJ Panel Says

    A New Jersey appellate panel on Tuesday said retired attorney Gail Beran isn't liable for malpractice in connection with her husband's failure to file a bankruptcy on time, because his then-clients didn't rely on the idea that she was a partner when they decided to hire the firm.

  • February 27, 2024

    Ch. 11 Trustee Says Bank Fraud-Tied Jewelry CEO Hid Assets

    The trustee for a bankrupt jewelry company allegedly tied to a $2 billion Indian bank fraud has filed a suit in New York bankruptcy court accusing the company's CEO of trying to hide a $7 million Manhattan apartment from creditors.

  • February 27, 2024

    Hospital Groups Allege Opioid Crisis Damaged Their Finances

    More than 20 hospitals and related companies have joined multidistrict litigation over the opioid epidemic, alleging in a massive new complaint that pharmacies, drug distributors and others contributed to a crisis that damaged hospitals' finances and strained their ability to help patients.

  • February 27, 2024

    Jackson Walker, Kirkland Again Sued Over Judge's Romance

    Jackson Walker and Kirkland & Ellis LLP have been hit with another lawsuit alleging they were aware of a former Texas bankruptcy judge's relationship with a onetime partner of the former firm and failed to disclose it during proceedings worth millions of dollars.

  • February 27, 2024

    Trial Over Ch. 11 Trustee In Eletson Bankruptcy Set For April

    A New York bankruptcy judge scheduled an April trial to determine whether to appoint a Chapter 11 trustee in the bankruptcy of Eletson Holdings, while directing the tanker company and its unsecured creditors to continue mediation.

  • February 27, 2024

    Katten Can't Drop Madoff Ch. 7 Clawback Client, Court Rules

    Katten Muchin Rosenman LLP must keep representing French investment fund Access International Advisors in a $2 billion lawsuit filed by the Chapter 7 trustee for Bernard L. Madoff Investment Securities, a New York bankruptcy judge has ruled, explaining that the potential fallout from dropping AIA ahead of discovery in the case overshadows Katten's concerns that it won't be paid.

  • February 27, 2024

    NH Power Plant Gets OK On Purchaser Settlement In Ch. 11

    Bankrupt New Hampshire power plant Burgess Biopower LLC will receive a $3.35 million payment from a power purchaser that allegedly withheld money it owed last year, reaching a settlement agreement between the parties that won a Delaware federal judge's blessing on Tuesday.

  • February 27, 2024

    Careismatic Creditors Lash Out At DIP Proposal

    Prepetition lien lenders for bankrupt medical scrubs distributor Careismatic Brands LLC are using an agreement aimed at funding the company's Chapter 11 case to swipe potential recoveries from unsecured creditors, those unsecured creditors have told a New Jersey bankruptcy court.

  • February 26, 2024

    Latham, Jackson Walker Avoid Sanctions Over Sorrento Venue

    A Texas bankruptcy judge declined to level sanctions against Latham & Watkins LLP and Jackson Walker LLP for trying to establish Texas jurisdiction for California-based Sorrento Therapeutics Inc. in its Chapter 11 bankruptcy, finding that their conduct did not amount to bankruptcy fraud.

  • February 26, 2024

    AmEx Fights To Arbitrate Merchant's Girardi-Linked Suit

    An attorney for American Express Co. urged a California federal judge on Monday to reconsider his tentative ruling declining to force a costume merchant to arbitrate malicious prosecution claims over charges disputed by Erika Girardi, saying the agreement in question applies to the merchant and not just his company.

  • February 26, 2024

    Genesis Creditors, Owners Allege Cash Grab At Plan Hearing

    Customers and the equity owners of cryptocurrency lender Genesis on Monday accused each other of trying to rob them of assets they deserve, as the debtor began a confirmation hearing for its Chapter 11 plan in New York bankruptcy court.

  • February 26, 2024

    11th Circ. Says Bankruptcy Fraud Threat Can't Tank Deal

    The Eleventh Circuit ruled Monday that coupon marketing agency Valpak's alleged threat to report a franchisee for bankruptcy fraud was not extortion and refused to set aside the settlement that ended the franchisee's suit accusing Valpak of wrongfully terminating their agreement.

  • February 26, 2024

    Bally Sports Parent Gets OK For $495M Settlement, $450M DIP

    A Houston bankruptcy judge on Monday approved a $495 million settlement and a $450 million debtor-in-possession financing package for Bally Sports Network's parent company, loading the bases for the broadcaster to file a Chapter 11 plan in the coming weeks.

Expert Analysis

  • Shifts In The CRE Landscape Demand Creative Loan Solutions

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    An increase in commercial real estate loan workouts makes it critical for borrowers, lenders and other CRE participants to examine all the available options and remedies, including mortgage and mezzanine foreclosures, bankruptcy filings and property short sales, say attorneys at Goulston & Storrs.

  • Perspectives

    A Judge's Pitch To Revive The Jury Trial

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    Ohio state Judge Pierre Bergeron explains how the decline of the jury trial threatens public confidence in the judiciary and even democracy as a whole, and he offers ideas to restore this sacred right.

  • Opinion

    Calif. Policymakers Should Aid Crashing Cannabis Market

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    As California’s cannabis sector nears the brink of financial collapse, it may be time for the state government to seriously consider potential bailout programs for the embattled industry — though the crisis also presents strategic buying opportunities for those with a high tolerance for uncertainty, says Michelle Mabugat at Greenberg Glusker.

  • How To Recognize And Recover From Lawyer Loneliness

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    Law can be one of the loneliest professions, but there are practical steps that attorneys and their managers can take to help themselves and their peers improve their emotional health, strengthen their social bonds and protect their performance, says psychologist and attorney Traci Cipriano.

  • A Smoother Process For CRE Receiverships In Conn.

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    A newly effective Connecticut law concerning distressed commercial real estate provides a number of opportunities and strategic considerations for creditors, and should be watched even by counsel in other states as adoption of the law could become more widespread, say John Loughnane and Steven Coury at White and Williams.

  • Opinion

    Litigation Funding Disclosure Should Be Mandatory

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    Despite the Appellate Rules Committee's recent deferral of the issue of requiring third-party litigation funding disclosure, such a mandate is necessary to ensure the even-handed administration of justice across all cases, says David Levitt at Hinshaw.

  • Recalling USWNT's Legal PR Playbook Amid World Cup Bid

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    As the U.S. Women's National Soccer Team strives to take home another World Cup trophy, their 2022 pay equity settlement with the U.S. Soccer Federation serves as a good reminder that winning in the court of public opinion can be more powerful than a victory inside the courtroom, says Hector Valle at Vianovo.

  • The State Of Student Loan Debt In Bankruptcy

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    With student loan debt in the spotlight following the U.S. Supreme Court's recent decision to block President Joe Biden's forgiveness plan, it's an apt time to review how student loans are treated in bankruptcy and why very few are discharged, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.

  • SVB Bankruptcy Case Raises Asset Control Questions

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    The initial disputes in Silicon Valley Bank's bankruptcy case between the Federal Deposit Insurance Corp. and the debtor over tax refunds and deposits are likely to signal the rekindling of old battles for limited assets last fought during the Great Recession, say Jeffrey Rothleder and Maura McIntyre at Squire Patton.

  • Who Owns Crypto Assets? Know The Bankruptcy Risks

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    Amid a wave of recent crypto custodian Chapter 11 filings, the legal character of customer deposits give rise to a deluge of questions, because in the absence of a concrete regulatory regime, the terms and conditions are likely going to be how the court determines legal rights, says Heidi Hockberger at Levenfeld Pearlstein.

  • An In-Depth Look At FDIC Reform Options After Bank Failures

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    Anthony Pirraglia and Melissa Hall at Loeb & Loeb explain the three coverage options for reforming the deposit insurance system, which were proposed in a recent report from the Federal Deposit Insurance Corp. in the wake of the Silicon Valley Bank and Signature Bank failures.

  • Ch. 11 Ruling Informs On Social Media Ownership Rights

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    Social media users now have useful guidance regarding account ownership rights following a federal bankruptcy court's recent ruling in the Vital Pharmaceuticals Chapter 11 case, which rejected the notion that advertised content alone could create a presumption of ownership for the advertised business, say Deborah Enea and Thomas Dockery at Troutman Pepper.

  • Perspectives

    Mallory Gives Plaintiffs A Better Shot At Justice

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    Critics of the U.S. Supreme Court's recent decision in Mallory v. Norfolk Southern claim it opens the door to litigation tourism, but the ruling simply gives plaintiffs more options — enabling them to seek justice against major corporations in the best possible court, say Rayna Kessler and Ethan Seidenberg at Robins Kaplan.

  • Effectual Relief Questions Linger After Section 363 Ruling

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    In the months since the U.S. Supreme Court's ruling in MOAC Mall Holdings, courts and practitioners must grapple with the issue of what effectual relief courts may grant upon an appeal of an unstayed sale order, says Monique Jewett-Brewster at Hopkins Carley.

  • Blockchain Utopia Dream Fades Following Gemini Fraud Suit

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    Cryptocurrency exchange Gemini’s recent filing of a fraud suit against Digital Currency Group, coupled with industrywide bankruptcy complications and regulatory scandals, may signal the end of the dream of a utopian, decentralized financial future, says Christopher Ott at Loeb & Loeb.

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