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Bankruptcy
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March 14, 2025
US Trustee Pans Pump Co.'s $9M Asbestos Insurance Deal
The U.S. Trustee's Office has challenged a proposed $9 million settlement between a Chapter 7 trustee for a bankrupt Connecticut pump company and two insurers, saying the agreement nonconsensually deprives third parties of their asbestos-related personal injury claims against the insurance carriers.
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March 14, 2025
Three Arrows Beats FTX To Get $1.5B Bankruptcy Claim
The liquidators of failed cryptocurrency hedge fund Three Arrows Capital have prevailed in a dispute with FTX Trading Ltd. over the allowance of a $1.53 billion bankruptcy claim, with a Delaware judge deciding to grant Three Arrows' bid to change its original claim despite FTX asserting that the move was made in bad faith.
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March 14, 2025
Canadian Accounting Service Co. Hits Ch. 15 With Sale Plan
Vancouver-based accounting and financial services firm Bench Accounting Inc. has filed a Chapter 15 recognition in a Delaware bankruptcy court with approximately $51.5 million in liabilities and $5.1 million in assets, asking a U.S. bankruptcy court to approve a plan to sell all its assets.
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March 14, 2025
Startup Investor Says Cooley Knew About Fraud Probe
Attorneys for a dry cleaning delivery startup knew that the founder and sole director of the company had fabricated company documents and was the subject of an active securities fraud investigation in Texas as he solicited money from investors, an ex-board member said Friday in response to the law firm's bid to toss a securities fraud lawsuit.
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March 14, 2025
Taxation With Representation: Davis Polk, Paul Weiss
In this week's Taxation With Representation, Mallinckrodt PLC and Endo Inc. combine, Rocket Cos. buys Redfin, and Endo divests its international pharmaceuticals business to Knight Therapeutics Inc.
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March 13, 2025
Judge Won't Toss $35M Ch. 11 Bank Fee Clawback Lawsuit
A Delaware bankruptcy judge has denied a summary judgment bid to dismiss a lawsuit alleging that an $1.8 billion loan set medical testing company Millennium Laboratories on course for its 2015 Chapter 11.
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March 13, 2025
Sandy Hook Families Oppose Revived Infowars Sale Bid
Families of the victims of the 2012 Sandy Hook Elementary School shooting have urged a Texas bankruptcy judge to block an Alex Jones-affiliated company's revived bid to buy his Infowars platform, saying it will cause delays in the more than three-year-old related bankruptcy cases.
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March 13, 2025
Law Firm Helped Fintech CEO Undercut $1.7B Deal, Suit Says
A fintech startup that went belly up after a $1.7 billion deal to take it public fell apart told a Texas federal court that Chapman and Cutler LLP helped the startup's CEO stab it in the back, saying in a Thursday complaint the firm breached its fiduciary duties.
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March 13, 2025
6 Firms Steer $6.7B Mallinckrodt, Endo Pharma Merger
Six law firms are guiding a $6.7 billion merger between Ireland's Mallinckrodt PLC and Pennsylvania-based Endo Inc. on a deal announced Thursday that the companies said will create a global pharmaceutical industry leader with projected 2025 revenues of $3.6 billion.
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March 13, 2025
Senate Stablecoin Bill Advances With Democrats Divided
The Republican-led U.S. Senate Banking Committee advanced its stablecoin framework Thursday with the help of Democrats who broke from ranking member Sen. Elizabeth Warren's opposition, while a separate bill on what is being called debanking passed along party lines.
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March 13, 2025
Alex Jones' Sandy Hook Atty Suspended Over Info Release
Former Alex Jones attorney Norm Pattis will be suspended from practicing law for two weeks, a Connecticut judge has ruled, capping a three-year ethics saga that started when Pattis asked an associate to send Sandy Hook families' medical records to the Infowars host's Texas bankruptcy lawyer.
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March 12, 2025
Mo. Court Finds Exclusion Bars Mallinckrodt Opioid Coverage
A group of insurers have no coverage obligations under certain policies issued to drugmaker Mallinckrodt as a trust created from the company's first bankruptcy seeks to resolve underlying opioid claims with the help of insurance benefits, a Missouri state court ruled, finding a "your products" exclusion applicable.
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March 12, 2025
Pallet Biz Says District Court Can't Weigh Bankruptcy Order
Pallet company PaLIoT Solutions Inc. told a Michigan federal judge on Wednesday that the issue of whether it violated a bankruptcy court's order regarding trade secrets purchased in a rival company's asset sale has already been decided, while the competitor said its rival is flip-flopping on its arguments.
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March 12, 2025
Willkie Beats Malpractice Suit Over ERISA Ch. 11 Advice
An Ohio federal judge affirmed Tuesday a bankruptcy court's decision tossing legal malpractice claims filed by a coal company executive's estate against Willkie Farr & Gallagher LLP, rejecting the estate's arguments it sufficiently alleged Willkie was grossly negligent in failing to warn the estate about a potential $6.5 billion ERISA liability.
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March 12, 2025
Pa. Coal Co. Auction Gets 2-Week Pause After Value Spike
A Pennsylvania bankruptcy judge has agreed to allow a pause in the auction of bankrupt Corsa Coal Corp.'s assets after hearing from lawyers in the Chapter 11 case that the machinery, equipment and real estate being sold has recently been appraised for more than the current bids.
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March 12, 2025
Northvolt's Ch. 11 Dismissal Possible After Swedish Filing
Bankrupt electric vehicle battery maker Northvolt AB told a Texas bankruptcy judge that its Chapter 11 case is possibly headed for dismissal after its parent company filed an insolvency case in Swedish court early Wednesday.
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March 12, 2025
US Trustee Seeks Sanctions Against NY Lawyer
The federal bankruptcy watchdog asked a New York judge Wednesday to sanction a lawyer who allegedly concealed her conflicts of interest while representing a debtor and a buyer in two separate Chapter 11 cases.
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March 12, 2025
2nd Circ. Upholds Sanctions In Chinese Billionaire's Ch. 11
The Second Circuit Court of Appeals on Wednesday torpedoed an appeal from the daughter of bankrupt Chinese exile Miles Guo — also known as Ho Won Kwok — and her attorney seeking to overturn a nearly $83,400 discovery sanction, saying the contempt ruling was merited.
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March 11, 2025
Zachry Opposes Nebraska Utility's $38M Administrative Claim
Bankrupt natural gas contractor Zachry Holdings has objected to a Nebraska public electric utility's administrative claim seeking $38 million in damages for delays in the construction of new generating stations, saying it is too early to seek the claim, and the requested fees exceed the purported damages.
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March 11, 2025
Judge Questions Authority To Pay Giuliani's Ch. 11 Bill
A New York bankruptcy judge questioned Tuesday whether he could order former New York City Mayor Rudy Giuliani to sell off real estate to cover claims against his Chapter 11 estate, saying an order dismissing his bankruptcy case included assumptions that didn't come to fruition.
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March 11, 2025
Spirit Airlines Judge Says Opt-Out Releases Well Explained
A New York bankruptcy judge explained his February decision to approve third-party releases in budget air carrier Spirit Airlines' Chapter 11 plan, saying an opt-out mechanism of the releases is enough to establish the consent of creditors, given how thoroughly the process was discussed and the number of people who did opt out.
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March 11, 2025
Fannie Mae Says Complex Filed Ch. 11 To Duck $73M Loan
Fannie Mae told a federal court Monday that a Houston apartment complex's Chapter 11 filing was a "tactic" to avoid its obligation to repay a $73 million loan.
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March 11, 2025
Mitel Networks Gets OK For $60M Ch. 11 Financing
A Texas bankruptcy judge Tuesday gave communications software company Mitel Networks preliminary permission to draw on $60 million in Chapter 11 financing as it heads for an April hearing on its prepackaged restructuring plan.
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March 11, 2025
Dykema Doubles Houston Roster With 7 New Atty Hires
Dykema Gossett PLLC has expanded in Houston with the addition of seven attorneys, five of whom joined from Kane Russell Coleman Logan PC and two who came aboard from Hirsch & Westheimer PC.
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March 10, 2025
Warren Says Defense Nominee Has 'Clear Conflict Of Interest'
Democratic Sen. Elizabeth Warren called out deputy defense secretary nominee Stephen Feinberg on Sunday for a "clear conflict of interest" due to his ties to Ligado Networks, which is suing the federal government for $40 billion, and urged him to agree to recuse himself from any decisions about the company.
Expert Analysis
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Opinion
Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Series
Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Serta Ruling Further Narrows Equitable Mootness In 5th Circ.
The Fifth's Circuit recent Serta bankruptcy decision represents a further hardening of its view of the equitable mootness doctrine, and may set up a U.S. Supreme Court review of the doctrine in the near future, say attorneys at Cleary.
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Opinion
Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.
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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.