Bankruptcy

May 24, 2022
Committee Pros Approved In J&J Talc Unit's Ch. 11 Case

A New Jersey bankruptcy judge approved the retention of several advisory firms to work on behalf of the claimant committee in the Chapter 11 case of Johnson & Johnson's bankrupt talc unit Tuesday, saying a court-appointed fee examiner would determine if their work was necessary or duplicative.
May 24, 2022
Week In Bankruptcy: Dioceses Settle; Wind-Downs Reined In?

Three Roman Catholic dioceses are pushing for approvals of settlements for hundreds of sexual abuse claims in bankruptcy courts, a Delaware state court judge denied a litigation stay in a nonbankruptcy wind-down case, potentially signaling a crackdown, and Purdue Pharma executives got their bonuses approved. This is the week in bankruptcy.
May 24, 2022
Tool Co., Travelers Settle Fraud Coverage Suit

A toolmaker dropped its suit against Travelers seeking coverage related to fraud allegations involving a $40 million patent suit, after the sides told a Texas federal court they reached a settlement.
May 24, 2022
Coffee Chain Accused Of Flouting Pittsburgh Library Lease

The Carnegie Library of Pittsburgh is seeking to evict a local coffee chain from its main library, citing failures to follow the terms of its lease after the company emerged from bankruptcy and pandemic-related closures, according to filings in Pennsylvania state court.
May 24, 2022
Judge Raises Payout To Unit Owners Amid $1B Surfside Deal

The Florida state court judge overseeing consolidated litigation over the collapse of the Champlain Towers South condominium in Surfside agreed Tuesday to increase the payouts to unit owners now that a recently announced $1 billion settlement will provide a better recovery for victims than initially expected.
May 23, 2022
Creditors Question Need For Architectural Firm's Ch. 11 Loan

The unsecured creditors of architectural firm EYP Group on Monday asked a Delaware bankruptcy judge to examine whether the company needs to draw on the rest of its $5 million in Chapter 11 financing, particularly since it is coming from EYP's prospective buyer.
May 23, 2022
Mallinckrodt Calls Shareholder Ch. 11 Stay Bid Untimely

Drugmaker Mallinckrodt PLC objected Monday to a motion from an equity holder seeking to stay the consummation of the company's Chapter 11 plan pending the outcome of an appeal of a claims bar date decision, saying the stay motion came months late and after other, more targeted stay requests were defeated.
May 23, 2022
Bank's $45M Tilton Suit Will Go To Jury Despite Virus Spike

A German bank's $45 million fraud suit against Lynn Tilton and her investment fund will go before a jury in July, after a Manhattan state judge on Monday rejected the bank's bid to pivot to a bench trial because of a spike in coronavirus cases.
May 23, 2022
Dallas Nursing Home Nonprofit Hits Ch. 11 With $64M Debt

A nonprofit Dallas-area nursing home operator filed for Chapter 11 protection in a Texas bankruptcy court Monday, saying it is seeking a sale to deal with $64.5 million in debt, saying a weakened financial position left it unable to deal with the COVID-19 pandemic.
May 23, 2022
The Case Runner: Girardi Pal's Scandals Go Beyond Lion Air

The continued fallout over the theft of settlement funds by Tom Girardi’s law firm has thrown a spotlight on a low-profile consultant with a long history in the legal industry’s underworld. Even as bereaved families begged for their money, Girardi Keese cut $50,000 monthly checks to that consultant, George Hatcher. Here, Law360 Pulse explores Hatcher’s criminal past and his connections to Girardi.
May 23, 2022
Eversheds Sutherland Adds New Partner To Finance Group

Eversheds Sutherland brought on a longtime Alston & Bird LLP partner as the new head of its corporate debt advisory and financial restructuring group.
May 23, 2022
Rochester Diocese Reaches $147M Ch. 11 Deal With Insurers

The Roman Catholic Diocese of Rochester proposed a $147 million settlement with its insurers late Friday to resolve coverage disputes for sex abuse claims lodged against the organization after nearly a year of intense mediation among the parties at the direction of a New York bankruptcy judge.
May 23, 2022
Blindness Testing Device Co. To Sell IP In Del. Wind-Down

MacuLogix Inc., an ophthalmology company that specializes in the detection of age-related macular degeneration, owes $23 million it cannot pay and will wind down the business in a state liquidation process, the company said in a petition to Delaware Chancery Court.
May 23, 2022
Catching Up With Delaware's Chancery Court

This is the final full work week for Vice Chancellor Joseph R. Slights III, who retires on June 1. Law360 sat down with the 58-year-old vice chancellor to talk about his 18 years as a Delaware judge and what he expects to do next.
May 20, 2022
Surfside Collapse Site Will Sell For $120M To Sole Bidder

The Champlain Towers South condominium collapse site in Surfside, Florida, will sell for $120 million to Dubai-based buyer Damac Properties PJSC after other potential buyers failed to submit bids by the Friday deadline for next week's auction.
May 20, 2022
Latam Airlines Urges Judge To OK Ch. 11 Plan

Chilean air carrier Latam Airlines on Friday urged a New York bankruptcy judge to approve its Chapter 11 plan after spending a full day answering claims by investors, creditors and government watchdogs that the restructuring proposal is fatally flawed.
May 20, 2022
SEC Denies Atty's Bid To Ax Lifetime Ban Over Fraud Claim

The U.S. Securities and Exchange Commission on Friday shot down a California attorney's attempts to vacate a 2020 settled order that the agency entered against him, including a lifetime bar from practicing before the agency that he had agreed to at the time.
May 20, 2022
Creditors Urge Rejection Of Dallas Senior Home Ch. 11 Loan

Unsecured creditors of the bankrupt, 400-bed Edgemere retirement community in Dallas have asked a Texas bankruptcy judge to reject a proposed $10.1 million Chapter 11 financing loan unless modified, citing terms that overwhelmingly favor a bond trustee at the expense of the estate and unsecured creditors.
May 20, 2022
NJ Diocese Wants Insurer Deal Heard With Ch. 11 Plan

The bankrupt Diocese of Camden told a New Jersey judge Friday that he should hear arguments over a proposed but abandoned $30 million settlement with insurers at the same time he is considering confirmation of the debtor's Chapter 11 plan centered on a new deal with sex abuse claimants.
May 20, 2022
Guinea Beats Steinmetz Co.'s Claim Over Nixed Iron Mine

An international tribunal has rejected a claim brought by companies associated with Israeli billionaire Beny Steinmetz against Guinea, which were seeking billions of euros after the country canceled a project to mine some of the world's most valuable deposits of iron ore amid allegations of corruption.
May 20, 2022
Ex-MLBer Says Spring Training Makes Fla. Ideal For Bat IP Suit

A Major League Baseball bat-making business run by ex-New York Mets player Yoenis Céspedes says a trademark infringement lawsuit against the company's former owner should proceed in Florida federal court, arguing the "copycat" bats have been promoted to players in the state during spring training.
May 19, 2022
Judge Cuts 'Unreasonable' Atty Fee Bid In $98M Mattel Deal

A California federal judge has granted final approval to a $98 million settlement between investors and toymaker Mattel Inc. and PwC, but slashed the requested $24.5 million in attorney fees, saying it was too high.
May 19, 2022
Platinum Investors Lose Bid To Overturn Nordlicht Ch. 7 Deal

A New York federal judge on Thursday declined to overturn a bankruptcy court's approval of a $2.5 million settlement in the bankruptcy of defunct hedge fund Platinum Partners' founder over an alternative deal, saying the bankruptcy judge was not wrong to find the deal he chose better.
May 19, 2022
Del. Chancery Cracks Down On Non-Bankruptcy Bankruptcies

A vice chancellor's swift denial of an unusual request that a company winding down in a state liquidation get a stay of litigation comparable to that in the federal Bankruptcy Code is a signal to companies seeking bankruptcy alternatives in Delaware that Chancery Court may have had enough.
May 19, 2022
Camden Diocese Says Its Ch. 11 Plan Is Best Option

The Diocese of Camden told a New Jersey bankruptcy court Thursday that its proposed Chapter 11 plan represents the best possible outcome for sex abuse claimants and that insurer opposition to the plan is unfounded because it doesn't impact their contractual rights.

Expert Analysis

Early Asset Forfeiture Is Key Part Of Criminal Defense Plans

In light of the U.S. Department of Justice's increased scrutiny of cryptocurrency and the flow of money, it is important for counsel to focus on asset forfeiture and financial penalties early in a criminal defense to have the most significant impact on sentencing and defendants' financial future, says David Lazarus at Verrill Dana.
Series

Embracing ESG: Whirlpool CLO Talks Structural Improvement

As the global understanding of what it means to measurably make a positive societal and environmental impact evolves, creating a solid governance structure, backed up by bold action and increased transparency, will set up companies and their legal teams to remain resilient through economic and societal changes and manage risk, says Ava Harter at Whirlpool.
Opinion

Fla. High Court Is Wrong To Ban CLE Diversity Requirements

The Florida Supreme Court is wrong in precluding attorneys from getting any continuing legal education credit for courses that use so-called diversity quotas, as it erroneously assumes existing biases and prejudices in the legal profession will change without proactive steps, says Sidney Kanazawa at ARC LLC.
Lawyers Must Prepare For Contract Tech Co. Consolidation

The legal industry's continued remote work needs during the pandemic have fueled growth of contract lifecycle management providers, but to continue access to the platforms they have come to rely on, businesses should look out for the CLM mergers that are likely to occur in 2022, says Naseeha Machingal at LegalEase Solutions.
Cordova V. Chicago Could Narrow Fulton Creditor Protection

The U.S. Bankruptcy Court for the Northern District of Illinois in Cordova v. Chicago may partially retract the secured creditor shield of the U.S. Supreme Court's 2020 Chicago v. Fulton decision, as that case only addressed potential automatic stay violations of one section of the Bankruptcy Code, say attorneys at Crowell & Moring.
4th Circ. Ruling Offers Guidance On Scope Of WARN Act

A recent ruling from the Fourth Circuit in Pennington v. Fluor clarified how a company may be liable under the Worker Adjustment and Retraining Notification Act, providing key workforce layoff lessons for investors, parent corporations and enterprises that rely on third-party service providers, say attorneys at Ropes & Gray.
How Firms Can Adapt Amid COVID's Shifting Legal Needs

Avi Stadler at Esquire Deposition Solutions discusses the practice areas that are expanding most aggressively during the COVID-19 era of increased litigation and technology needs, and offers recommendations for how law firms can attract and retain the expertise they need to thrive in today's competitive market for legal services.
Series

Embracing ESG: Synchrony Counsel Talk Role Of Legal Teams

Jonathan Mothner and Danielle Do at Synchrony Financial discuss legal departments' essential role in their firms' environmental, social and governance programs, and how legal leaders can leverage their teams and internal relationships to advance ESG efforts.
For Junior Lawyers, Authenticity And A Solid Pitch Are Key

With strong lateral partner hiring and other pandemic-era trends making it harder for newly minted attorneys to progress in their careers, junior lawyers should take steps to perfect their elevator pitch and remain true to who they are, as a big part of their success will depend on how well they sell themselves to clients and how genuine they appear, says Emily Weber at Foley & Lardner.
A Compliance Primer For Attorneys Outsourcing Legal Work

Growing numbers of law firms and corporations outsource legal work for cost savings, so lawyers must firmly understand their related obligations set forth by bar associations across the country — from obtaining client consent to using accepted billing methods, say Melissa Khalil at Nora.Legal, Jeremy Babener at Structured Consulting and Patrice Asimakis at LegalEase Solutions.
When And How To Depose Fact Witnesses Remotely In 2022

Tim Tryniecki and Thomas Mudd at MG+M offer a series of practice tips for successfully conducting remote depositions of often-inexperienced fact witnesses, as the virtual court proceedings sparked by COVID-19 look set to become a part of the legal landscape next year.
Series

Embracing ESG: PayPal CLO Talks Gauging Impact And Intent

For legal teams, the corporate evolution toward more intentional post-COVID-19 environmental, social and governance strategies means deeper integration across business functions, seeking counsel on emerging issues affecting stakeholders, adapting initiatives around changing policies and regulations, and advancing ESG reports to better measure impact, says Louise Pentland at PayPal.
Ohio Opioid Verdict Brings Focus To Role Of Pharmacists

The recent federal Ohio jury verdict in National Prescription Opiate Litigation found pharmacies liable for contributing to the public nuisance of the opioid epidemic, advancing the question of when pharmacists owe a duty to warn or refuse to fill a prescription, says Roseann Termini at Widener University's Delaware Law School.
Without Leadership Buy-In, Law Firm DEI Efforts Stand To Fail

A law firm's diversity, equity and inclusion strategies need the full attention and support of its top leadership to succeed, and requiring the firm's key decision makers to join the DEI committee can make the difference, says Noble Allen at Hinckley Allen.
Series

Confronting Origination Credit: Self-Advocacy Tips For Attys

Female lawyers and lawyers of color have historically not been privy to the rules of the origination credit game, but they can employ various strategies to increase the chances of receiving the credit they are due, such as enlisting allies for support and tracking inequity patterns, says Marianne Trost at The Women Lawyers Coach.