The liquidators of the entity at the center of a dispute between bankrupt cryptocurrency players FTX and BlockFi Inc. over $590 million in stock filed for Chapter 11 protection Friday in Delaware bankruptcy court, saying it was the best way to handle the competing claims to its assets.
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Tuesday, February 7, 2023 Follow Law360

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Entity At Center Of FTX-BlockFi Dispute Files For Ch. 11

The liquidators of the entity at the center of a dispute between bankrupt cryptocurrency players FTX and BlockFi Inc. over $590 million in stock filed for Chapter 11 protection Friday in Delaware bankruptcy court, saying it was the best way to handle the competing claims to its assets.

Declaration attached | Read full article »

New FTX CEO To Testify In Bankruptcy Examiner Showdown

The Office of the United States Trustee intends to call John J. Ray III, the new CEO of bankrupt cryptocurrency exchange FTX Trading Ltd., to testify as part of its bid to have an examiner appointed to investigate the company's downfall last year, which saw tens of billions of dollars in value evaporate over the course of eight days.

2 documents attached | Read full article »

Target Of Del. Funding Probe Seeks Pause For High Court Bid

Nimitz Technologies — an alleged stalking horse for so-called patent troll IP Edge — plans on going to the U.S. Supreme Court to fight a Delaware federal judge's headline-grabbing "inquisition" into its business practices, asking an appeals court to freeze that investigation until it files with the justices.

Motion attached | Read full article »

Jay-Z, Bacardi End Cognac Feud With Partial Buyout Deal

Bacardi Ltd. has agreed to buy out a portion of Shawn "Jay-Z" Carter's stake in their joint cognac venture, ending a bitter legal fight that spanned multiple arbitrations and court cases in both New York and Delaware.

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COURT OF CHANCERY

Financial Adviser Wants Faraday To Pay Its Fees In Del. Suit

Riverside Management Group LLC wants the Delaware Chancery Court to order Faraday Future Intelligent Electric Inc. to cover its legal costs in connection with a lawsuit over a 2021 merger with a special purpose acquisition company that took the electric vehicle company public.

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Masimo Urges Chancery To Uphold Founder's Takeover Shield

An attorney for Masimo Corp. urged a Delaware vice chancellor Friday to dismiss some of a hedge fund investor's suit challenging the medical monitoring device company's change-of-control and poison pill protections, branding the arguments in part as unfounded and time-barred.

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SPAC Says Philippines Resort Is Trying To Tank $2.6B Merger

A special-purpose acquisition company filed suit against a series of entities affiliated with a Philippines-based casino and luxury resort, telling a Delaware court the companies are dragging their feet while closing a $2.6 billion merger in an effort to tank the deal.

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BANKRUPTCY

Edelson, Kaplan Fox, Pomerantz Seek To Rep FTX Investors

Five investors suing former FTX CEO Sam Bankman-Fried and others over the recent collapse of the now-bankrupt cryptocurrency exchange have asked a California federal judge to consolidate their proposed class actions and appoint Edelson PC, Kaplan Fox & Kilsheimer LLP and Pomerantz LLP as interim co-lead class and trial counsel.

Motion attached | Read full article »

EXPERT ANALYSIS

A Litigation Move That Could Conserve Discovery Resources

Bennett Rawicki at Hilgers Graben proposes the preliminary legal opinion procedure — seeking a court's opinion on a disputed legal standard at the outset, rather than the close, of discovery — as a useful resource-preservation tool for legally complex, discovery-intensive litigation.

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LEGAL INDUSTRY

ABA Votes Law School Admissions Tests Must Stay, For Now

The American Bar Association's policymaking body on Monday rejected a proposal that would make it optional for accredited law schools to use standardized test scores in their admissions processes.

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ABA House Urges Binding Ethics Code For Supreme Court

The American Bar Association's policymaking body on Monday pushed the U.S. Supreme Court to adopt an ethics code for its justices, a proposal that comes in the wake of ethics questions surrounding Justice Clarence Thomas and comments made by his wife.

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Fox Rothschild Taps Health Pro As Firm Managing Partner

A veteran health care attorney is taking over as firmwide managing partner of Fox Rothschild LLP as part of a series of leadership changes at the Pennsylvania-based powerhouse firm, it announced Monday.

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Exclusive

NY Chief Judges Failed To Report Taxable Chauffeur Perks

Resigned New York Chief Judge Janet DiFiore and acting Chief Judge Anthony Cannataro appear to have underreported their compensation to state tax authorities by failing to declare any personal use of their full-time chauffeured cars in 2022, a Law360 investigation has found.

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Girardi Competency Hearing Ordered In LA Wire Fraud Case

A California federal magistrate judge entered a not guilty plea Monday for disgraced former attorney Tom Girardi on behalf of the court, pending a competency hearing to determine his ability to face wire fraud charges connected to his alleged theft of millions from clients of his former firm, Girardi Keese.

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MSG Entertainment Nixes Adverse Atty Ban For Tao Litigation

Madison Square Garden Entertainment Corp. on Monday said it has partially pulled back its policy of prohibiting attorneys whose firms are engaged in litigation against the company from entering its venues, noting the updated guidelines only affect litigation involving its majority interest in Tao Group Hospitality.

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Vidal Berates OpenSky While Granting VLSI Atty Fees

OpenSky Industries must pay VLSI Technology's attorney fees after its abuse of the patent system drew the latter company into sanctions proceedings, U.S. Patent and Trademark Office Director Kathi Vidal has ruled.

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Receiver Wants Levine Kellogg Ponzi Probe Of Wells Fargo

The court-appointed receiver in a lawsuit against an attorney shot by FBI agents has asked a Nevada federal judge to let Levine Kellogg Lehman Schneider & Grossman LLP investigate and possibly sue Wells Fargo Bank NA over claims the bank helped run a $449 million Ponzi scheme he allegedly participated in.

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Dechert Says Ex-WSJ Reporter's Hacking Suit Missed Deadline

A former Wall Street Journal reporter waited too long to file a lawsuit in which he accuses Dechert LLP and its partners of hacking into his email account and leaking his inappropriate communications with a source, the law firm has argued in D.C. federal court.

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Ex-Rep. Ron Kind Joins Arnold & Porter Public Policy Group

Former U.S. Rep. Ron Kind has joined Arnold & Porter's lobbying practice in Washington as a senior policy adviser after 26 years in Congress, the firm said Monday.

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Catching Up With Delaware's Chancery Court

Bacardi and Jay-Z finally clinked glasses and resolved their long-running dispute over D'Usse cognac, a 72-year-old rule on judicial appointments got tossed, and three more electric vehicle companies asked the court to retroactively validate shares.

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LAW FIRMS IN TODAY'S NEWS

Abrams & Bayliss

Amin Turocy

Arnold & Porter

Audet & Partners

Barrack Rodos

Bayard PA

Bronstein Gewirtz

Cadwalader Wickersham

Cravath Swaine

Dechert LLP

Edelson Lechtzin

Edelson PC

Engstrom Lipscomb

Fabian VanCott

Faruqi & Faruqi

Fish & Richardson

Fox Rothschild

Gibson Dunn

Girardi & Keese

Heideman Nudelman

Hilgers Graben

Holland & Hart

Irell & Manella

Kaplan Fox

Kaplan Hecker

Kehoe Law Firm

Kessler Topaz

Landis Rath

Latham & Watkins

Lehman Lee

Levine Kellogg

Lowenstein & Weatherwax

McGuireWoods

Morgan Lewis

Morris Nichols

O'Kelly & O'Rourke

Oberheiden PC

Paskowitz Law

Paul Hastings

Paul Weiss

Pomerantz LLP

Potomac Law Group

Prickett Jones

Quinn Emanuel

Reed Smith

Richards Layton

Schulte Roth

Semenza Kircher

Sullivan & Cromwell

Sullivan Blackburn

WilmerHale

Wites Law Firm

Young Conaway

deLeeuw Law

COMPANIES IN TODAY'S NEWS

10X Capital

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American Bar Association

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Bacardi Ltd.

Bank of America Corp.

BlockFi Inc.

Bloomberg

BuzzFeed Inc.

Carlyle Group LP

ChargePoint Inc.

Clayton Dubilier & Rice LLC

Continental AG

CoreLogic Inc.

Deutsche Bank AG

DocuSign Inc.

Faraday & Future Inc.

Golden State Warriors

Harvard University

Hobby Lobby Stores

JPMorgan Chase & Co.

KnowBe4 Inc.

LinkedIn Corp.

Madison Square Garden Entertainment Corp.

Masimo Corp.

NASDAQ Inc.

Nardello & Co. LLC

News Corp.

Nokia Corp.

Okada Manila

Petrobras

Riverside Management Group LLC

Robinhood Markets Inc.

State Bar of California

Tao Group Hospitality

Tesla Inc.

The New York Times Co.

TransUnion LLC

Vista Equity Partners

Washington & Lee University

Wells Fargo & Co.

Wynnchurch Capital LLC

GOVERNMENT AGENCIES IN TODAY'S NEWS

Consumer Financial Protection Bureau

Delaware Court of Chancery

Federal Bureau of Investigation

Internal Revenue Service

New York Attorney General's Office

New York City Police Department

New York State Comptroller

New York State Unified Court System

Texas State Securities Board

U.S. Attorney's Office for the Central District of California

U.S. Bankruptcy Court for the District of Delaware

U.S. Court of Appeals for the Federal Circuit

U.S. Department of Justice

U.S. District Court for the Central District of California

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Minnesota

U.S. District Court for the Eastern District of New York

U.S. District Court for the Eastern District of Virginia

U.S. District Court for the Northern District of California

U.S. District Court for the Southern District of Florida

U.S. District Court for the Southern District of New York

U.S. Patent and Trademark Office

U.S. Securities and Exchange Commission

U.S. Supreme Court

United States District Court for the District of Nevada