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Bankruptcy
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April 08, 2025
Jazz Agrees To Pay $145M To Settle Xyrem Antitrust Fight
Jazz Pharmaceuticals has agreed to pay $145 million to resolve antitrust litigation accusing it of working with its rival Hikma Pharmaceuticals to stave off generic competitors to Jazz's narcolepsy drug Xyrem, the Ireland-based pharmaceutical company revealed Tuesday.
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April 08, 2025
Univ. Of The Arts Gets Last Ch. 7 Property Sale Approved
Philadelphia's University of the Arts received the Delaware bankruptcy court's approval Tuesday for its sale of an historic building, the seventh and final real estate sale in the defunct school's Chapter 7 case.
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April 08, 2025
Warner Bros. Wants Rights Protected In Film Co. Ch. 11 Sale
Warner Bros. has objected to the proposed Chapter 11 bidding procedures and debtor-in-possession financing of bankrupt Village Roadshow, asking the court to protect its rights to more than 90 films the parties co-produced and keep its cut of the proceeds ahead of other creditors.
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April 08, 2025
True Value Gets OK For Post-Sale Ch. 11 Plan
A Delaware bankruptcy judge said she would approve hardware store supplier True Value Co.'s Chapter 11 plan, which will distribute the proceeds of its $153 million sale to stalking horse bidder Do It Best.
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April 08, 2025
IT Staffing Co. CEO Charged With $2M Payroll Tax Fraud
The chief executive officer of a Philadelphia-area information technology staffing firm was charged with failing to collect and pay $2 million in trust fund taxes on behalf of his company and also perjuring himself in his Chapter 13 bankruptcy proceedings.
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April 08, 2025
Hyzon Motors Steers Into ABC In Chancery After Subsidy Cuts
Global hydrogen fuel cell truck maker Hyzon Motors Inc. sought Delaware Court of Chancery jurisdiction Monday over assignment of company assets for the benefit of creditors, after a string of setbacks for the clean energy venture, including stock exchange delisting, government subsidy losses and a plant shutdown in China.
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April 08, 2025
Ex-Judge Subpoenaed In Probe Of Secret Romance With Atty
The U.S. Trustee has given notice of a subpoena it filed for the trial testimony of former federal bankruptcy judge David Jones, after Jones said he hoped to avoid "live trial testimony" in the agency's pursuit of fees paid to Jackson Walker LLP amid the judge's undisclosed relationship with a firm attorney.
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April 08, 2025
Clifford Chance Lands Gibson Dunn Restructuring Co-Chair
Clifford Chance LLP announced Tuesday that it has hired the former co-chair of Gibson Dunn & Crutcher LLP's corporate restructuring practice to co-lead its global restructuring and insolvency practice.
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April 07, 2025
Fintech Customers Sue Banks Over Synapse Collapse
Evolve Bank & Trust and Lineage Bank were hit with a consumer's proposed class action in Tennessee federal court accusing them of mismanaging their relationships with Synapse Financial, a now-bankrupt middleware fintech service that the suit says caused customers to lose $85 million.
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April 07, 2025
Ore. Distillery Hits Ch. 11 After Demand Drop, Supply Glut
Oregon whiskey distillery House Spirits Distillery LLC has filed a streamlined Chapter 11 for businesses with small debt loads in Delaware, saying a post-COVID drop in alcohol demand mixed with a glut of inventory had hampered its financial health.
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April 07, 2025
Judge Agrees To Give Brazilian Builder OEC Ch. 15 Nod
A New York bankruptcy judge said Monday he will grant a Brazilian construction company known as OEC recognition of insolvency proceedings the firm launched in its home country once the debtor revises the language in its proposed order.
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April 07, 2025
Girardi Hearing On Prison Option Pushed To May
A hearing to discuss whether disbarred attorney Tom Girardi should serve any sentence in prison or be committed to a care facility due to his dementia diagnosis was pushed back to May to accommodate scheduling for witnesses.
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April 07, 2025
Brown Rudnick Inks $8M Deal With Guo Ch. 11 Trustee
Brown Rudnick LLP has agreed to pay nearly $8 million in a deal with the trustee overseeing Chinese exile Miles Guo's Chapter 11 case in Connecticut to settle potential claims tied to the law firm's onetime work for the convicted fraudster.
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April 07, 2025
Spirit Airlines CEO Departs After Ch. 11 Exit
The CEO of budget air carrier Spirit Airlines LLC has resigned following the company's completion of its bankruptcy, the company announced Monday.
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April 04, 2025
4th Circ. Rules Ch. 7 Debtor On The Hook For Mortgage Bill
The Fourth Circuit on Friday revived class claims by a Chapter 7 debtor who received a collection letter over a defaulted mortgage, saying the debtor still has obligations to pay the mortgage lender, partially overturning a West Virginia district court's decision.
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April 04, 2025
Defamation Litigation Roundup: Jay-Z, Blake Lively, Drake
In this month's review of ongoing defamation fights, Law360 looks back on an escalation in Jay-Z's case against personal injury lawyer Tony Buzbee, who he accuses of pursuing a "false" and "malicious" rape suit, as well as on the war of words between actors Justin Baldoni and Blake Lively.
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April 04, 2025
Azzur Creditors Call $61M DIP Rollup Excessive
The unsecured creditors of Azzur Group urged a Delaware bankruptcy judge Friday to reject a proposed $84.5 million Chapter 11 financing package, saying far too much of it is a rollup of the biotech consulting firm's pre-bankruptcy debt.
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April 04, 2025
Trevor Milton Wants Nikola Corp. Ch. 11 Subpoena Quashed
Recently pardoned Nikola Corp. founder Trevor Milton asked a Delaware bankruptcy judge to reject a subpoena seeking documents from an arbitration between the former CEO and embattled electric-vehicle maker.
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April 04, 2025
Guo Trustee Properly Obtained Yacht And $37M, 2nd Circ. Told
The Second Circuit should affirm rulings that drew a $37 million escrow fund and a $23 million yacht into Chinese exile Miles Guo's Connecticut bankruptcy estate, his Chapter 11 trustee has argued, asking the appellate court to uphold multiple prior rulings in his favor.
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April 04, 2025
NY Youth Welfare Org Snags $9M Real Estate Bid In Ch. 11
Bankrupt youth mental health provider St. Christopher's Inc. is asking a New York bankruptcy court to approve the private sale of a 22.1 acre property for $9 million.
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April 03, 2025
Ex-SunEdison Exec Gets 'Historic' $34.5M Deal In SOX Case
A former SunEdison Inc. executive scored a record-breaking $34.5 million settlement with SunEdison-sponsored yieldcos he once ran following a nearly decadelong legal battle and a finding that he was fired as retaliation in violation of the Sarbanes-Oxley Act for highlighting potential securities laws violations, his Hinckley Allen attorneys announced Thursday.
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April 03, 2025
Ex-Judge, Profs Ask Justices To Weigh 9th Circ. Ch. 7 Ruling
A former bankruptcy judge and five law professors have asked the U.S. Supreme Court to review a Ninth Circuit opinion protecting the state of Montana from a real estate mogul and Montana ski resort founder's bid for damages over an involuntary Chapter 7 the state initiated.
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April 03, 2025
Loyalty Platform Kognitiv Hits Ch. 11 With Over $10M In Debt
Customer loyalty platform Kognitiv US LLC filed for Chapter 11 on Wednesday in Delaware bankruptcy court, citing more than $10 million in liabilities with a plan to sell its assets to another loyalty platform.
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April 03, 2025
US Trustee Wants Jackson Walker Cases In District Court
The U.S. Trustee's Office has renewed its call for a district court trial over whether Jackson Walker LLP should return millions in fees for failing to disclose an ex-partner's romance with a bankruptcy judge, saying all the questions in the case should be tried in one venue.
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April 03, 2025
Franchise Group, Lenders Clash Over Control Of Ch. 11 Case
A Delaware bankruptcy judge said Thursday she would soon decide whether retail-chain owner Franchise Group Inc. can keep exclusive control over its efforts to confirm a reorganization deal, as a group of lenders that considers the debtor's Chapter 11 plan "unconfirmable" works to intervene in the process.
Expert Analysis
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Ch. 11 Ruling Confirms Insurer Standing Requirements
A New York bankruptcy court's recent decision in the Syracuse Diocese's Chapter 11 case indicates that insurers have misread the U.S. Supreme Court’s 2024 ruling in Truck Insurance Exchange v. Kaiser Gypsum and that federal standing requirements remain unaltered, say attorneys at Lowenstein Sandler.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Imagine The Possibilities Of Openly Autistic Lawyering
Andi Mazingo at Lumen Law, who was diagnosed with autism about midway through her career, discusses how the legal profession can create inclusive workplaces that empower openly autistic lawyers and enhance innovation, and how neurodivergent attorneys can navigate the challenges and opportunities that come with disclosing one’s diagnosis.
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.
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Litigation Funding Disclosure Debate: Strategy Considerations
In the ongoing debate over whether courts should require disclosure of litigation funding, funders and plaintiffs tend to argue against such mandates, but voluntarily disclosing limited details about a funding arrangement can actually confer certain benefits to plaintiffs in some scenarios, say Andrew Stulce and Marc Cavan at Longford Capital.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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How Ch. 11 Can Alleviate Merchant Cash Advance Concerns
Merchant cash advance funding is one of the biggest challenges for small businesses today because funders are so prevalent, aggressive and expensive, but bankruptcy can provide several tools for dealing with MCA agreements that may allow the debtor business to restructure and survive, says Patricia Fugée at FisherBroyles.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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8 Lessons Yellow Corp. Layoffs Can Teach Distressed Cos.
A Delaware bankruptcy court’s recent decision, examining trucking company Yellow Corp.’s abrupt termination of roughly 25,500 employees, offers financially distressed businesses a road map for navigating layoffs under the Worker Adjustment and Retraining Notification Act, say attorneys at King & Spalding.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.
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Series
Coaching Little League Makes Me A Better Lawyer
While coaching poorly played Little League Baseball early in the morning doesn't sound like a good time, I love it — and the experience has taught me valuable lessons about imperfection, compassion and acceptance that have helped me grow as a person and as a lawyer, says Alex Barnett at DiCello Levitt.
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5 Litigation Funding Trends To Note In 2025
Lawyers and their clients must be prepared to navigate an evolving litigation funding market in 2025, made more complicated by a new administration and the increasing overall cost of litigation, says Jeffery Lula at GLS Capital.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Lessons From Two New Year's Eve Uptier Exchange Decisions
On the last day of 2024, two different courts issued important decisions relating to non-pro rata uptier exchanges — and while they differ, both rulings highlight that transactions effected in reliance on undefined terms in debt agreements come with increased risk, say attorneys at Simpson Thacher.