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Bankruptcy
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January 24, 2025
9th Circ. Renews Billing Co.'s Suit Against Texas Data Firm
A Ninth Circuit panel on Friday partly revived a Washington billing services company's lawsuit over a soured business deal with bankrupt Addison Data Services, finding a bankruptcy settlement agreement and the statute of limitations can't keep the plaintiff from pursuing its breach of fiduciary duty claims.
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January 24, 2025
Mass Tort Atty Files Ch. 11 Owing $202M To Litigation Funders
A Houston plaintiffs attorney has filed for personal Chapter 11 protection with more than $202 million of litigation funding liabilities, according to his petition in the Southern District of Texas.
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January 24, 2025
Grier Wright Tapped For Insurance Mogul's $2B Liquidation
Bankruptcy attorney Joseph Grier of Grier Wright Martinez PA will serve as special master to identify, receive, track and distribute billions of dollars that will go toward restitution to victims defrauded by convicted insurance mogul Greg Lindberg, a North Carolina federal judge ruled.
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January 24, 2025
La. Judge Returns $22M Hurricane Ida Claim To State Court
A Louisiana federal judge has sent a $22 million insurance dispute over oil drilling equipment damaged by Hurricane Ida back to state court, citing an invalid arbitration clause between the parties.
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January 23, 2025
Yellow Corp. Says It Acted In Good Faith With WARN Notices
Defunct trucking company Yellow Corp. told a Delaware bankruptcy judge on Thursday that its last delivery was made the day before it laid off 22,000 union workers, making it a "liquidating fiduciary" that would not be liable for inadequate mass-layoff notices under the WARN Act.
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January 23, 2025
Conn. Lawmakers Target Healthcare After Hospital's Ch. 11
In the lead-up to and aftermath of California hospital operator Prospect Medical Holdings Inc.'s $1 billion bankruptcy, Connecticut lawmakers are considering new regulatory powers, promising and penning oversight bills for hospitals owned by private equity firms and real estate trusts while seeking to stabilize the state's healthcare markets.
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January 23, 2025
GenapSys Says Paul Hastings Can't Keep Privileged Docs
GenapSys is pushing back on Paul Hastings LLP's bid to force it to turn over documents that it had inadvertently released during discovery in a legal malpractice suit alleging that the law firm improperly drafted board documents that led to the "demise and liquidation" of the genetic-sequencing company.
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January 23, 2025
Exactech Seeks Bonuses For Top Execs For Ch. 11 Sale
Bankrupt medical implant manufacturer Exactech asked a Delaware bankruptcy judge Thursday for permission to pay up to $5 million in bonuses to its top executives, saying they are performing necessary work for the company's sale plans.
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January 23, 2025
White And Williams' NY Office Head Named Bankruptcy Chair
The managing partner of White and Williams LLP's New York office has taken on the role of chair of the firm's financial restructuring and bankruptcy practice, where she plans to focus on improving the practice group's visibility while ensuring high quality of client service and helping its attorneys to excel.
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January 23, 2025
15 States Reach $7.4B Settlement With Sackler Family
A bipartisan coalition of states on Thursday announced a $7.4 billion settlement in principle with the Sackler family and their company Purdue Pharma Inc., representing the largest settlement to date with the family accused of contributing significantly to the opioid epidemic.
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January 22, 2025
Reed Smith Rips Claim Firm Is 'Causing Chaos' In $102M Suit
Reed Smith fought back Tuesday against allegations by the purported new owners of Eletson Holdings that the BigLaw firm is "causing chaos" by refusing to withdraw as counsel of record in $102 million breach-of-contract litigation, arguing that ownership of the international shipping group is "hotly contested" and being litigated in multiple jurisdictions.
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January 22, 2025
Prospect Seeks To Move Conn. Hospital Sale Suit To Texas
National hospital chain Prospect Medical Holdings on Wednesday told a Connecticut federal judge that its recent Texas bankruptcy filing means a suit over a collapsed $435 million deal to sell its Connecticut-based hospitals belongs in Texas bankruptcy court.
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January 22, 2025
Billionaire Debtor's Daughter Loses Appeal Over Jet Sale
The daughter of bankrupt billionaire Miles Guo on Tuesday lost her appeal of a Connecticut bankruptcy judge's ruling that the $10 million she reaped from the sale of a private jet is the property of her father's estate because he was the beneficial owner of the plan.
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January 22, 2025
Pa. Justices Revive Case Over Hospital Care Discontinuation
Pennsylvania's highest court on Wednesday ruled a trial court had reasonable grounds to halt plans by now-bankrupt hospital operator Prospect Medical Holdings Inc. to discontinue emergency and acute care services at a Delaware County facility.
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January 22, 2025
Alex Jones Asks Conn. Justices To Review Sandy Hook Case
Infowars host Alex Jones has asked Connecticut's highest court to review a $1.44 billion judgment for calling the Sandy Hook school massacre a "hoax," arguing his trial judge violated the state and federal constitutions by skipping causation, jumping straight to a default liability judgment and adding damages without proof.
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January 22, 2025
Bankruptcy Judge Greenlights Suit Against Celsius Founder
A New York bankruptcy judge has ruled a suit alleging Celsius Network founder and former CEO Alex Mashinsky caused the now-bankrupt cryptocurrency lender billions in damages can go forward in the wake of Mashinky's guilty plea to federal fraud charges.
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January 22, 2025
Nixed Invitae Asset Buyer Asks Ch. 11 Court To Stop Litigation
Genetic testing company Natera has launched an adversary lawsuit against Invitae, a competitor that sought insolvency protection last year, asking a New Jersey bankruptcy judge to stop Invitae's Chapter 11 plan administrator from collecting payments owed under a rejected contract.
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January 22, 2025
Lender Files Ch. 7 For Pa.-Based ATM Network Owner
Silverview Credit Partners LP has filed an involuntary Chapter 7 petition in Delaware bankruptcy court against Blackford ATM Ventures, a Pennsylvania-based operator of a network of ATMs, claiming the company owes $28.6 million for defaulted loans.
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January 21, 2025
LED Screen Distributor Lied About $10M Debt, Jury Told
The owner of a now-defunct LED screen distribution company lied to his Korean manufacturing partner about repaying an over $10 million debt in order to keep receiving shipments and pay himself a hefty salary, jurors heard as a civil fraud trial opened in California federal court on Tuesday.
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January 21, 2025
Ch. 11 Judge Slams Firm's 'Extraordinary' Lack Of Knowledge
A New York bankruptcy judge has refused a fee bid and ordered a debtor's firm to return a nearly $30,000 retainer in a scathing opinion that warns lawyers against tiptoeing into bankruptcy practice and slams counsel for having an "extraordinary lack of basic Chapter 11 understanding."
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January 21, 2025
Receiver Sought For Partnership That Funded Affleck Films
Film producer John P. Middleton has asked Delaware's Court of Chancery to appoint a receiver for The Film Capitol LLC, a partnership he formed in 2013 to provide funding for a production project with actor Casey Affleck.
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January 21, 2025
Judge OKs Deal To Keep Some American Freight Stores Open
A Delaware bankruptcy judge on Tuesday approved a sale in Chapter 11 that will keep the lights on in more than two dozen American Freight home furnishing stores by transferring their leases from the bankrupt Franchise Group.
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January 21, 2025
4th Circ. Backs NASCAR Team Owner's $31M Ch. 11 Sanction
The Fourth Circuit has backed a $31 million default judgment entered against a former NASCAR team manager as a sanction after what the published opinion called "egregious behavior" during discovery and "willful disregard of the bankruptcy code and the orders of the bankruptcy court."
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January 21, 2025
Last Sackler Family Members Join Purdue Draft Deal
The final holdouts among two branches of Sackler family members are ready to join a settlement in the bankruptcy of OxyContin maker Purdue Pharma LP, a business owned by the family, according to a report from the co-mediators handling negotiations.
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January 21, 2025
Firm Slams Beasley Allen's Bid To Nix Suit Over Talc Team-Up
Smith Law Firm PLLC is urging a Mississippi federal court to reject Beasley Allen Law Firm's bid to dismiss or transfer a defamation and breach of contract lawsuit over their joint venture agreement for talc litigation against Johnson & Johnson, saying the case shouldn't be thrown out in favor of Beasley Allen's Alabama suit.
Expert Analysis
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Opinion
6 Changes I Would Make If I Ran A Law School
Reuben Guttman at Guttman Buschner identifies several key issues plaguing law schools and discusses potential solutions, such as opting out of the rankings game and mandating courses in basic writing skills.
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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A Closer Look At SDNY Bankruptcy Rule Amendments
The U.S. Bankruptcy Court for the Southern District of New York’s recent amendments to its local rules aim to streamline key Chapter 11 processes, resolve misunderstandings about previous iterations of the rules and urge caution about the use of artificial intelligence, say attorneys at Skadden.
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FTX Exec's Sentencing Shows Pros And Cons Of Cooperation
The sentencing of former FTX tech deputy Gary Wang, whose cooperation netted him a rare outcome of no prison time, offers critical takeaways for attorneys and clients navigating the burgeoning world of crypto-related prosecutions, says Andrew Meck at Whiteford.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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Equitable Mootness Insights From Greenlit Ch. 11 Plan Appeal
A Texas federal court recently allowed a challenge to ConvergeOne's Chapter 11 bankruptcy plan to proceed because it wouldn't disrupt the IT company's confirmed plan or harm creditors, reinforcing the importance of judicial restraint in applying equitable mootness where limited relief is possible, say attorneys at Parkins & Rubio.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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How Boards And Officers Should Prep For New Trump Admin
In anticipation of President-elect Donald Trump's proposed tariffs and mass deportation campaign, company officers and board members should pursue proactive, comprehensive contingency planning to not only advance the best interests of the companies they serve, but to also properly exercise their fiduciary duty of care, say attorneys at Winston & Strawn.
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The Challenges Of Abandoned Retirement Plans In Ch. 7
The Department of Labor's rule for unwinding retirement accounts when plan sponsors file for Chapter 7 bankruptcy was intended to alleviate trustees' administration issues, but practical challenges, like unresolved fee and identification matters, could hinder its implementation, say David Goodrich at Golden Goodrich and Nancy Simons at Stretto.
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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When Investigating An Adversary, Be Wary Of Forged Records
Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.