Bankruptcy

  • 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.

  • February 26, 2024

    Stimwave Prosecutors Accused Of Brady Violation Mid-Trial

    The former CEO of Stimwave Technologies has alleged in the middle of her criminal fraud trial that the Manhattan U.S. Attorney's Office withheld key evidence about proffer meetings, teeing up a potential Brady fight before a skeptical judge.

  • February 26, 2024

    Prosecutors Ask NC Justices To Enforce Ban On MV Realty

    Prosecutors told the North Carolina Supreme Court on Monday that MV Realty is trying to dodge the state's efforts to put it out of business, first with a bankruptcy filing and then by asking the court last week to overturn a decision blocking the company's operations in the state.

  • February 26, 2024

    H&M-Backed Fabric Recycler Files For Bankruptcy In Sweden

    Swedish textile recycler Renewcell AB has declared bankruptcy in Stockholm District Court, saying it hasn't been able to secure sufficient financing to complete a strategic review with satisfactory results.

  • February 26, 2024

    Yellow Corp. Gets Nod On New Procedures For Injury Claims

    Trucking company Yellow Corp. will use its insurance policies to deal with only certain claims from people alleging they were injured by its vehicles under new procedures a Delaware bankruptcy judge approved Monday, after the debtor resolved objections from parties who said its earlier plans would have violated their rights.

  • February 26, 2024

    Kirkland Nabs $14.6M Payout For Cyxtera's Ch. 11

    A New Jersey bankruptcy judge on Monday approved $43.8 million in final fee and expense applications for professionals involved in Cyxtera Technologies Inc.'s Chapter 11 case, with almost half the money going to an investment banking firm and roughly $15 million to Kirkland & Ellis LLP.

  • February 26, 2024

    Catching Up With Delaware's Chancery Court

    Delaware's Court of Chancery dropped two potentially far-reaching decisions last week: one about founder control at Moelis & Co. and another about TripAdvisor's planned move to Nevada. On top of that, there were new cases involving Citrix Systems, Alcoa Corp., BGC Partners Inc. and Cantor Fitzgerald LP.

  • February 23, 2024

    SVB's Cayman Unit Loses Ch. 15 Bid In NY

    A bankruptcy judge in New York has dismissed a petition from the Cayman Islands branch of Silicon Valley Bank that sought U.S. recognition of its Cayman insolvency proceedings, finding that it is not eligible to file a Chapter 15 petition.

  • February 23, 2024

    MV Realty Asks NC Justices To Stay Injunction Pending Appeal

    MV Realty is defending the enforceability of a series of agreements with more than 2,000 North Carolina homeowners — asking the state's Supreme Court to overturn a trial judge's injunction finding the company likely couldn't beat claims that the deals were truly predatory, high-interest loans.

  • February 23, 2024

    US Trustee Objects To Rite Aid Disclosure Statement

    The U.S. Trustee's Office has flagged what it called "objectionable" proposals from Rite Aid to hold post-confirmation votes on some Chapter 11 plan releases, as well as shortening senior secured voting and preemptively deeming unsecured creditors as detractors.

  • February 23, 2024

    Bankrupt REIT Gets Ch. 11 Reorganization Plan Approved

    A subsidiary of Silver Star Properties REIT Inc. received approval Friday for its Chapter 11 reorganization plan that will channel its remaining property assets into a Delaware subsidiary free and clear of all creditor claims.

Expert Analysis

  • Opinion

    J&J Bankruptcy Could Thwart Accountability For Victims

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    Johnson & Johnson's latest attempt at a "Texas Two-Step" bankruptcy proceeding exemplifies the way in which corporate defendants can use bankruptcy to evade accountability, limit resources available to victims, and impose flawed, one-size-fits-all resolutions on diverse groups of plaintiffs, says Michelle Simpson Tuegel at Simpson Tuegel Law.

  • 6 Pointers For Attys To Build Trust, Credibility On Social Media

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    In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.

  • A Post-Mortem Analysis Of Stroock's Demise

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    After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.

  • Don't Sit On Bankruptcy Sidelines, 5th Circ. Ruling Reminds

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    The Fifth Circuit’s recent In re: Louisiana Pellets decision, holding that a creditor couldn’t assert indemnification defenses in a suit brought by the trustee of a liquidation trust, highlights the risks faced by creditors and other contract parties that choose not to participate in a bankruptcy, say Gregory Hesse and Kaleb Bailey at Hunton.

  • 2nd Circ. Ruling Will Guide Social Media Account Ownership

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    The Second Circuit’s recent decision in JLM Couture v. Gutman — which held that ownership of social media accounts must be resolved using traditional property law analysis — will guide employers and employees alike in future cases, and underscores the importance of express agreements in establishing ownership of social media accounts, says Joshua Glasgow at Phillips Lytle.

  • Texas Ruling Clarifies That Bankruptcy Shields LLC Rights

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    A Texas bankruptcy court’s recent ruling in In re: Envision makes it clear that the Bankruptcy Code preempts a section of Delaware state law that terminates a member’s interest in an LLC upon a bankruptcy filing, clarifying conflicting case law, say Larry Halperin and Joon Hong at Chapman and Cutler.

  • Series

    Coaching High School Wrestling Makes Me A Better Lawyer

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    Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.

  • Debt Collector Compliance Takeaways From An FDCPA Appeal

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    A Consumer Financial Protection Bureau amicus brief last month in an ongoing First Circuit appeal focusing on an interpretation of the Fair Debt Collection Practices Act can serve as a reminder for debt collectors to understand how their technologies, like bankruptcy scrubs and letter logic, can prevent litigation, says Justin Bradley at Womble Bond.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • Crypto Issues To Watch Amid Evolving Legal Landscape

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    This year will likely be a momentous one for crypto in the U.S., but whether it is successful or disastrous will depend on the outcome of high-profile court decisions and key regulatory actions, say attorneys at Venable.

  • Opinion

    3rd-Party Financiers Have Power To Drive Mass Tort Cases

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    The abnormal recovery premium presented by modern mass tort cases coupled with their deemphasized role for attorneys creates an opportunity for third-party financiers to both create and control these cases, says Samir Parikh at Lewis & Clark Law School.

  • Del. Dispatch: Clarification On Fiduciary Duties Of Controllers

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    The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.

  • Stay Ruling Challenges Sovereign Debt Dynamics

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    The Southern District of New York’s recent ruling in Hamilton Reserve Bank v. Sri Lanka, which provides sovereigns with a de facto bankruptcy stay in restructuring scenarios, may create uncertain consequences for sovereign creditors and borrowers alike, says Jeff Newton at Omni Bridgeway.

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • What Are The Pros And Cons Of Selling A Bankruptcy Claim?

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    As companies navigate financial uncertainties and market challenges, they should understand the advantages and disadvantages of selling a bankruptcy claim, so that they can monetize it with confidence and minimize the risk that amounts received in connection with a sale will be subject to potential disgorgement, says Evelyn Meltzer at Troutman Pepper.

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