Bankruptcy

  • June 07, 2024

    Brewery Wants Extra Damages For Co-Owner's 'Brazen' Theft

    A Colorado brewery accusing a former manager of embezzling hundreds of thousands of dollars has asked a state court for permission to seek exemplary damages, saying there's plenty of evidence the former manager willfully stole the money for himself and competing businesses he had a stake in.

  • June 07, 2024

    Rite Aid Can Borrow Another $75M In Ch. 11 Plan Pursuit

    Bankrupt retail drug-store chain Rite Aid Corp. received court approval on Friday in New Jersey for an amended debtor-in-possession financing package that provides $75 million in new-money financing as it moves toward confirmation of a Chapter 11 plan.

  • June 07, 2024

    'Deceit On Deceit': 7th Circ. OKs Atty's Asset-Hiding Sentence

    The Seventh Circuit Court of Appeals upheld a Chicago-area lawyer's three-year sentence for hiding over $350,000 in her brother's bankruptcy, finding two sentence enhancements were properly applied since she "layered deceit upon deceit" to try to conceal assets and cover her tracks.

  • June 07, 2024

    Judge Agrees To DQ Houston Firm In Fight Over MMA Law

    A Texas bankruptcy judge sided with troubled Houston firm MMA Law and agreed this week that another Houston firm, Okin Adams Bartlett Curry LLP, had received confidential information from MMA Law and should be disqualified from representing its creditors.

  • June 07, 2024

    Acorda Therapeutics Gets OK On $185M Ch. 11 Sale To Merz

    Drugmaker Acorda Therapeutics Inc. received a New York bankruptcy judge's approval Friday to complete a $185 million sale of its assets to a fellow pharmaceutical company, allowing Acorda to move ahead with a Chapter 11 plan to wind down its business.

  • June 06, 2024

    'Any Judge' Should Have DQ'd In Romance Case, Attys Told

    A Texas federal judge was adamant Thursday that a former bankruptcy judge should have recused himself from an engineering company's Chapter 11 proceeding because of his relationship with a then-Jackson Walker LLP partner, but seemed torn over whether a lawsuit from a former shareholder over the secret relationship had a leg to stand on.

  • June 06, 2024

    NRA Can't Undo $6.4M Misconduct Verdict In NY AG Case

    A New York judge on Thursday rejected a request by the National Rifle Association and its longtime executives to set aside a jury's $6.4 million verdict that found they misspent charitable funds, saying Attorney General Letitia James provided sufficient evidence for the jurors to rule in her favor.

  • June 06, 2024

    Kwok's 'Whole Movement Is A Scam,' Ex-Fundraiser Tells Jury

    A former top deputy in exiled Chinese billionaire Ho Wan Kwok's anti-Chinese Communist Party movement testified in Manhattan federal court this week that she raised millions of investor dollars out of a deep belief in the cause, but has since realized the entire enterprise was a "scam."

  • June 06, 2024

    Law Firm Says Axe 'Draconian' J&J Subpoena In Talc Claim

    A Mississippi plaintiffs firm urged a New Jersey federal court on Thursday to quash a subpoena served by Johnson & Johnson requesting that the firm turn over documents related to litigation funding and its communication with media outlets, calling the subpoena "draconian" and improper as the firm is not a party to the pharmaceutical giant's current personal injury litigation surrounding its talcum powder products.

  • June 06, 2024

    Alex Jones Abandons Ch. 11 Reorg Plan, Moves To Liquidate

    Right-wing radio host Alex Jones asked a Texas bankruptcy court to convert his bankruptcy case to a Chapter 7 liquidation, abandoning his proposed plan to reorganize his personal debts in the face of more than $1 billion in defamation claims from the families of Sandy Hook school shooting victims.

  • June 06, 2024

    In Reversal, Justices Say Insurer Has Standing In Ch. 11 Case

    Truck Insurance Exchange can intervene in Chapter 11 bankruptcy proceedings of two manufacturing companies facing numerous asbestos injury claims, the U.S. Supreme Court ruled unanimously Thursday in a reversal of the Fourth Circuit, finding Truck qualifies as a "party in interest" under the Bankruptcy Code.

  • June 05, 2024

    Sam Ash Approved For Ch. 11 Sale Process With Baseline Bid

    Bankrupt music store chain Sam Ash Music Corp. received approval Wednesday from a New Jersey bankruptcy judge for procedures governing its Chapter 11 asset sale process after negotiating concessions with its lenders, the official committee of unsecured creditors and the U.S. Trustee's Office.

  • June 05, 2024

    Brown Rudnick Partner's 50% Fee Hike Nixed In Ch. 11 Case

    A Brown Rudnick LLP bankruptcy partner Wednesday had his 50% fee increase rejected by a Delaware judge, who took issue with the proposed hike to $1,500 an hour for representing the creditors' committee in Kidde-Fenwal Inc.'s Chapter 11 case.

  • June 05, 2024

    Ex-Sacks Weston Atty Blames 'Toxic' Firm For His Theft

    A Philadelphia attorney convicted of defrauding his former law firm told a state ethics panel Wednesday that he was remorseful for his deeds, but he noted he was driven to his crime by being owed money by his firm for too long.

  • June 05, 2024

    Davis Polk Guiding Dollar Tree On Potential Family Dollar Sale

    Davis Polk & Wardwell LLP is representing Dollar Tree Inc. in a formal strategic review of its Family Dollar business that could lead to a sale, spinoff or other disposition, the Virginia-based retailer revealed Wednesday.

  • June 05, 2024

    Fish Taco Chain Rubio's Files 2nd Bankruptcy In 4 Years

    The California-based fish taco-focused chain Rubio's Coastal Grill filed its second Chapter 11 bankruptcy in four years on Wednesday in Delaware, saying it had between $100 million and $500 million of liabilities and plans for an asset sale.

  • June 04, 2024

    FTX Seeks Ch. 11 Stay On Competing Asset Claims

    Defunct cryptocurrency exchange FTX has urged a Delaware bankruptcy judge to put the brakes on multidistrict litigation targeting former company insiders, arguing that those claims rightfully belong to the bankruptcy estate and that any property recovered should instead go to creditors. 

  • June 04, 2024

    Regions Bank Escapes Ex-Ruby Tuesday Execs' Benefits Suit

    A Tennessee federal judge threw out a lawsuit lodged by former Ruby Tuesday managers alleging Regions Bank caused them to lose out on more than $35 million by inadequately protecting their pensions and breaching its duties as trustee, saying the retirement plans in question are exempt from federal benefits law.

  • June 04, 2024

    Bread Financial Wants Suit Over Spinoff's 'Death Spiral' Axed

    Financial services company Bread Financial Holdings Inc. and its CEO have asked an Ohio federal judge to toss a proposed investor class action over the alleged "death spiral" of a now-bankrupt spinoff company, saying the suit actually details Bread's "good faith efforts" to establish the spinoff as a successful independent venture.

  • June 04, 2024

    J&J Owes $260M To Ore. Talc Mesothelioma Patient, Jury Says

    An Oregon state jury has ruled that Johnson & Johnson owes $260 million to a woman who said she developed mesothelioma from breathing in asbestos during daily talcum powder use.

  • June 04, 2024

    'Miles Guo Stole My Money': NY Jury Hears Of Alleged Fraud

    A former supporter of exiled Chinese billionaire Miles Guo testified in Manhattan federal court Tuesday that the purported billionaire conned her into investing more than $100,000 in the media company he founded alongside former Donald Trump adviser Steve Bannon, describing Guo's interrelated business ventures as a "mafia."

  • June 04, 2024

    Bally Sports Parent Reaches Multiyear Fubo Carriage Deal

    The bankrupt owner of Bally Sports-branded regional sports networks told a Texas judge Tuesday that it has reached a multiyear agreement with fuboTV to continue that company's carriage of the debtor's channels on its streaming platform, adding to its roster of new distribution deals as a hearing on its Chapter 11 plan nears.

  • June 04, 2024

    Widow's 'Elderly' Claim For Atty Fee Can't Stand, Trustees Say

    A coal company executive's widow can't demand hundreds of thousands of dollars in attorney fees over a dismissed suit seeking $6.5 billion, United Mine Workers of America pension plan trustees argued, knocking her claim that the trustees are seeking funds from an "elderly woman."

  • June 03, 2024

    FTX, IRS Propose Settling $8B Tax Fight For Just $885M

    FTX and the Internal Revenue Service have reached a proposed settlement worth roughly $885 million that would resolve the agency's contention that the bankrupt cryptocurrency exchange operator owes $8 billion in taxes, according to a motion filed Monday in Delaware federal bankruptcy court.

  • June 03, 2024

    Sandy Hook Families Seek To Liquidate Alex Jones' Media Co.

    Creditors of right-wing conspiracy theorist Alex Jones' media company Free Speech Systems have asked a Texas bankruptcy judge to convert its Chapter 11 to a Chapter 7, saying liquidation is the only realistic route for creditors to get paid as the separate bankruptcies of the InfoWars parent and Jones near their close.

Expert Analysis

  • Don't Use The Same Template For Every Client Alert

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    As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.

  • Series

    Walking With My Dog Makes Me A Better Lawyer

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    Thanks to my dog Birdie, I've learned that carving out an activity different from the practice of law — like daily outdoor walks that allow you to interact with new people — can contribute to professional success by boosting creativity and mental acuity, as well as expanding your social network, says Sarah Petrie at the Massachusetts Attorney General’s Office.

  • What Calif. Eviction Ruling Means For Defaulting Borrowers

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    A California appellate court's recent decision in Homeward Opportunities v. Taptelis found that a defaulting borrower could not delay foreclosure with an improperly served notice of pendency of action, but leaves open a possibility for borrowers to delay eviction proceedings merely by filing lawsuits, say Anne Beehler and Krystal Anderson at Holland & Knight.

  • Think Like A Lawyer: Follow The Iron Rule Of Trial Logic

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    Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.

  • Banks Have Won Syndicated Loan Battle, But Not The War

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    Though the U.S. Supreme Court's recent denial of certiorari in Kirschner v. JPMorgan preserves the status quo that syndicated loans are not securities, the U.S. Securities and Exchange Commission's discomfort suggests that the underlying issues have not been fully resolved, say attorneys at Crowell & Moring.

  • Potential Unintended Consequences Of NY Sovereign Debt Bill

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    New York lawmakers recently proposed a law to create a framework for restructuring sovereign debt, but there are concerns that the bill will increase financing costs and that it attempts to solve problems that have largely been dealt with by collective action clauses, say Jeffrey Rothleder and Tara Peramatukorn at Squire Patton.

  • The Art Of Asking: Leveraging Your Contacts For Referrals

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    Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.

  • Series

    Being An Equestrian Makes Me A Better Lawyer

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    Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.

  • 4 Ways To Refresh Your Law Firm's Marketing Strategy

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    With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.

  • What 3rd Circ. Trust Ruling Means For Securitization Market

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    Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.

  • Ch. 11 Case Shows Why Plan Acceptance Procedures Are Key

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    Sunland Medical's recent liquidation plan proposal is an important example of how top-notch judges and attorneys propose and analyze complex issues during the confirmation process, and the bankruptcy court was forward-thinking to consider the implications of such proposed treatment in the face of the Bankruptcy Code, says Kyle Arendsen at Squire Patton.

  • Risks Of Rejecting Hotel Mgmt. Agreements Via Bankruptcy

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    In recent years, hotel owners have paid a high price when they attempted to use bankruptcy proceedings to prematurely terminate their hotel management agreements, highlighting that other options may be preferable, say attorneys at Jenner & Block.

  • NC Rulings Show Bankruptcy Isn't Only For Insolvent Debtors

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    Two recent rulings from a North Carolina bankruptcy court show that lack of financial distress is not a requirement for bankruptcy protection, particularly in the Fourth Circuit, but these types of cases can still be dismissed for other reasons, say Stuart Gordon and Alexandria Vath at Rivkin Radler.

  • Series

    Whitewater Kayaking Makes Me A Better Lawyer

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    Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.

  • Cannabis Ruling Lights Path For Bankruptcy Protection

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    A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.

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