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Bankruptcy
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October 31, 2024
3rd Circ. Preview: Boy Scouts' Cap. 11 Plan Row Tops Nov.
The future of the Boy Scouts of America's Chapter 11 bankruptcy plan is set to be determined by the Third Circuit this month, with the court poised to consider whether recent U.S. Supreme Court precedent on bankruptcies and settlements allows the reopening of the plan.
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October 31, 2024
Purdue Gets More Time For Deal, 'Substantial' Progress Made
Bankrupt OxyContin maker Purdue Pharma LP on Thursday won more time to continue mediating a new settlement with its owners — certain members of the Sackler family — and reported that it is nearing a deal, in a bid to avoid having one of the most complex Chapter 11 cases in U.S. history tumble into a litigation free-for-all.
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October 31, 2024
True Value Hammers Out Deal To Fund Ch. 11, Speed Up Sale
After days of negotiating, bankrupt hardware store supplier True Value Thursday reached a deal with its lenders to avoid liquidation, fund its reorganization and move up a Chapter 11 sale, with member-owned hardware brand Do It Best Corp. lined up as a stalking-horse bidder.
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October 31, 2024
Judge Upholds Sanctions Against Ex-Stimwave CEO
A Delaware federal judge has upheld a decision by the bankruptcy judge overseeing the Chapter 11 case of medical device maker Stimwave Technologies to screen the filings of the company's ex-CEO and two of her relatives.
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October 31, 2024
Conn. Firm Beats Ex-Client's Negligence, Conversion Claims
Connecticut law firm Evans & Lewis PC and partner Douglas J. Lewis have prevailed in a professional negligence lawsuit in state court alleging that their incompetence caused a former client's home to go into foreclosure and that they pocketed a $1,500 fee for services that they didn't provide.
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October 31, 2024
The 2024 Law360 Pulse Leaderboard
Check out the Law360 Pulse Leaderboard to see which firms made the list of leaders in all-around excellence this year.
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October 31, 2024
Firms' Hiring Strategies Are Evolving In Fight For Top Spot
Competition for top talent among elite law firms shows no signs of slowing down, even amid economic uncertainty, with financially strong firms deploying aggressive strategies to attract and retain skilled professionals to solidify their market position.
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October 31, 2024
MVP: Fried Frank's Rachel C. Strickland
Rachel C. Strickland, partner and global chair of the restructuring department at Fried Frank Harris Shriver & Jacobson LLP, represented two Georgia election workers in a bankruptcy lawsuit against Rudolph W. Giuliani and advised NanoString Technologies Inc. on its asset sale, earning her a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 30, 2024
Calif. Panel Axes $10.6M Abex Asbestos Verdict
A California appellate panel has thrown out a $10.6 million asbestos verdict against Pneumo Abex LLC and ordered a new trial, finding that the trial court erred in granting a directed verdict that rejected the now-bankrupt braking lining manufacturer's sophisticated user defense.
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October 30, 2024
Equifax Doesn't Report Ch. 7 Discharges, Suit Says
Credit reporting bureau Equifax was recently hit with a proposed class action accusing it of failing to note discharged debts when debtors converted their bankruptcy cases from Chapter 13 to Chapter 7.
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October 30, 2024
American Tire Floats Ch. 11 Sale Plan To Wrap Up In December
Bankrupt tire and wheel seller American Tire Distributors Inc. proposed a Chapter 11 bid and sale process that it intends to wrap up by the end of December, with a group of secured lenders serving as a stalking horse.
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October 30, 2024
FTX Witness Who Saw Bankman-Fried's 'Evil' Avoids Prison
A Manhattan federal judge allowed FTX's former chief engineer to avoid prison Wednesday, crediting his trial testimony against the crypto exchange's founder Sam Bankman-Fried, his ongoing cooperation and his relatively small role in the $11.2 billion fraud.
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October 30, 2024
Canadian Lender Seeks Ch. 15 With Wind-Down Or Sale Plans
A Toronto-based specialty lender and 13 affiliates filed for Chapter 15 recognition of their Canadian insolvency proceedings on Wednesday, with Chesswood Group Ltd. blaming a rise in interest rates and U.S. regional bank failures for heavy losses that added to its over $148 million in debt.
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October 30, 2024
MVP: Kirkland's Steven Serajeddini
Steven N. Serajeddini, a restructuring partner at Kirkland & Ellis LLP, has kept busy over the last year handling some of the largest and most complex bankruptcy cases in the country, including the sprawling insolvencies of flexible workspace provider WeWork Inc. and cancer healthcare company GenesisCare, earning him a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 29, 2024
Alameda Research Wants Crypto Exchange To Return $50M
Alameda Research, the crypto trading affiliate of the bankrupt FTX digital asset empire, has sued the operators of KuCoin cryptocurrency exchange in Delaware bankruptcy court seeking the return of $50 million of assets that continue to be held on the platform despite the debtors' requests.
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October 29, 2024
Defunct Pot Co. CEO Says 'Grifter' Is Trying To Stop Settlement
The founder of a defunct marijuana greenhouse claims the $1.5 million settlement it made with a class of investors has been stymied in unrelated legal action filed by a "sophisticated grifter" looking for personal gain, urging a Colorado federal judge to push aside the bankruptcy action.
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October 29, 2024
Republic First Bank Discriminated Before It Failed, NJ Says
New Jersey authorities said Tuesday that they have concluded that the former Republic First Bank redlined local communities of color in the state in the years before it failed, findings they have taken up with the bank's receiver, the Federal Deposit Insurance Corp.
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October 29, 2024
Baseball Bat Cos. Reach Deal To End Fla. Trademark Battle
A baseball bat company owned by ex-MLB player Yoenis Céspedes has settled an intellectual property lawsuit against several businesses over baseball bats, months after a Florida federal judge handed the former New York Mets outfielder's business a preliminary injunction in the case.
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October 29, 2024
Purdue Creditors Can Sue Sacklers For $11.5B
Creditors of bankrupt OxyContin maker Purdue Pharma LP will get the right to sue the company's owners — certain members of the Sackler family — and others for $11.5 billion, should they choose to do so, a New York judge said on Tuesday.
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October 29, 2024
4th Circ. Unclear On LeClairRyan Founder's Tax Liability
A Fourth Circuit panel appeared confused and noncommittal Tuesday as it wrestled with a narrow question of contract interpretation that could determine whether Gary LeClair of defunct LeClairRyan PLLC is on the hook for massive tax bills tied to the firm's collapse.
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October 29, 2024
MVP: Latham's George Davis
George Davis, global chair of Latham & Watkins LLP's restructuring and special situations practice, negotiated successful prepackaged Chapter 11 plans for Joann Inc. and Audacy and helped Mallinckrodt navigate two bankruptcy cases tied to opioid litigation, earning him a spot as one of the 2024 Law360 Bankruptcy MVPs.
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October 29, 2024
PE-Owned Implant Maker Plagued By Lawsuits Hits Ch. 11
Joint implant maker Exactech Inc. on Tuesday filed for Chapter 11 protection in Delaware bankruptcy court with an offer from its lenders to take over the company, as a wave of lawsuits tied to product recalls weighs on the private equity-owned firm.
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October 28, 2024
Judge Hopes To Avoid Vote Issue Repeat In Talc Ch. 11 Plan
A Delaware bankruptcy judge on Monday told a pair of talc producers that the proposed creditor voting procedures on their joint Chapter 11 plans will need some work to avoid a repeat of the voting problems that derailed a previous attempt to settle asbestos injury claims.
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October 28, 2024
Creditors Get Ponzi Finding In Wash. Bankruptcy Trial
A Washington state bankruptcy judge has found that real estate investment firm iCap Enterprises Inc. had operated as a Ponzi scheme, opening up the door for creditors to bring lawsuits and deduct some part of the losses from their taxes, attorneys for the official committee of iCap's unsecured creditors said Monday.
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October 28, 2024
Yellow Corp. Says Failing Biz Excuses WARN Act Duty
Bankrupt trucking firm Yellow Corp. told a Delaware judge Monday that it should get early wins in suits brought by laid off employees, saying that because the company had ceased most business operations, it was excused from notification obligations surrounding the firing of thousands of workers.
Expert Analysis
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Bankruptcy Decision Exemplifies Venue Issue For Franchisees
A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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What Being An 'Insider' Means In Ch. 11, And Why It Matters
As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.