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Bankruptcy
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February 15, 2025
Real Estate Recap: Practice Pivot, Tariff Tax, Lennar's Lawyers
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including the latest shifts in real estate law practice, a Big Law leader's predictions for a looming tariff "tax" debate, and a look at the legal talent behind homebuilder Lennar Corp.'s $5.8 billion spinoff.
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February 14, 2025
Guo Ch. 11 Trustee Wins 3rd Clawback Extension, Seeks $38M
A Connecticut bankruptcy judge for a third time on Friday extended deadlines for a Chapter 11 trustee to file adversary proceedings against individuals and entities that received money from Chinese exile Miles Guo or his alter ego shell companies, noting that this order would be the final blanket extension.
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February 14, 2025
SmileDirectClub Trustee Gets OK To Hire Orrick
The Chapter 7 trustee liquidating SmileDirectClub can hire Orrick Herrington & Sutcliffe LLP as special litigation counsel, a Texas bankruptcy judge said Friday, concluding that Orrick met U.S. Bankruptcy Code requirements, despite him not being notified earlier of Orrick's previous work for the trustee.
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February 14, 2025
Trump Aims To End Limits On President's Power To Fire
President Donald Trump has his sights set on taking down a 90-year-old U.S. Supreme Court ruling that protects certain government officials from being fired, a U.S. Department of Justice letter confirms, and he plans to leverage his prior legal victories to deliver the precedent's death knell and expand presidential power.
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February 14, 2025
Conn. Diocese Reaches $31M Deal With Abuse Claimants
The bankrupt Roman Catholic Diocese of Norwich, Connecticut, has struck a deal to pay $31 million to sexual abuse survivors, the diocese and its unsecured creditors' committee jointly announced Friday.
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February 14, 2025
Camston Wrather Files For Ch. 7 With Over $100M In Debt
California-based sustainable resource recovery company Camston Wrather LLC has filed for Chapter 7 bankruptcy listing liabilities between $100 million and $500 million along with up to $50 million in assets, citing insufficient funding to continue operations.
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February 13, 2025
Fla. Judge Denies Drinks Co. Ex-CEO Bid To Ax Monster Liens
A Florida federal bankruptcy judge on Thursday declined to rule on a bid to dismiss all Monster Energy Company's claims and liens against the former CEO of the corporation that produces Bang Energy drinks, saying he lacks jurisdiction to resolve issues between two non-debtors.
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February 13, 2025
Chancery OKs Appraisal Suit Fix For Sears Damage Ruling
A Sears Hometown Stores investor that saw its Delaware Court of Chancery share appraisal suit tanked by the company's bankruptcy in 2019 won a $4.06 per share payout ruling Thursday in a Court of Chancery decision focused on fair price and full and incremental damage claims.
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February 13, 2025
Spirit Airlines Ch. 11 Plan Releases Need More Consideration
A New York bankruptcy judge said Thursday the Chapter 11 plan of budget air carrier Spirit Airlines met the conditions for approval, but also told the parties he needed more time to consider the third-party releases proposed in the plan and whether they were consensual.
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February 13, 2025
Creative Services Co. Hits Ch. 11 With $54M In Debt
Splashlight, a New York City-based company that provides media production and creative services to brands such as Target and Nike, has filed for Chapter 11 protection, listing $39 million of assets and $53.5 million in liabilities.
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February 13, 2025
Lowenstein Sandler Accuses Dispensary Of 'Bad Faith' Move
Lowenstein Sandler LLP has accused a cannabis dispensary it is suing for unpaid legal fees of effectively asking a New Jersey Superior Court judge to overturn another judge's partial denial of the dispensary's motion to dismiss the case.
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February 13, 2025
Sandy Hook Families Seek To Enforce Alex Jones Judgment
Infowars founder Alex Jones should be forced to pay the judgment that Sandy Hook families won in their long-running defamation case, even though he lodged a "baseless" appeal with the Connecticut Supreme Court in an effort to create further delays, the plaintiffs said.
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February 13, 2025
Orrick Hires Former Head Of A&O's Restructuring Practice
The former head of Allen & Overy's U.S. restructuring practice prior to A&O's transatlantic merger with Shearman & Sterling has joined Orrick Herrington & Sutcliffe LLP in New York.
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February 12, 2025
Willkie DQ'd Out Of Franchise Group Ch. 11
A Delaware bankruptcy judge Wednesday denied retail chain operator Franchise Group Inc.'s request to retain Willkie Farr & Gallagher LLP in its Chapter 11, saying issues stemming from a transaction it worked on before the bankruptcy are too central to the company's reorganization plans.
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February 12, 2025
Chester, Pa., Can Probe Water Utility's Assets In Ch. 9
A Pennsylvania bankruptcy judge gave the ailing city of Chester the green light Wednesday to probe a water utility about its assets, but stopped short of allowing the city under Chapter 9 protection to share the information or allowing an auditor to visit the utility's property.
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February 12, 2025
Spirit Opts For Ch. 11 Plan After Latest Frontier Bid
Bankrupt budget air carrier Spirit Airlines said it will pursue confirmation of its Chapter 11 debt swap plan at a hearing scheduled for Thursday, after it and competitor Frontier Group could not come to terms on a combination of the two companies.
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February 12, 2025
Conn. Opposes Bankrupt Prospect Medical's 'Plunder'
Prospect Medical Holdings Inc. must be held accountable for harm that the hospital operator caused in Connecticut, but first, its three facilities in the state need to quickly transition to new ownership, the offices of the attorney general and the governor told a Dallas bankruptcy judge.
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February 12, 2025
Joann To Close Over 500 US Stores In Second Ch. 11
Joann Inc., a fabrics and crafts retailer that reentered bankruptcy in January, asked a Delaware bankruptcy judge Wednesday for permission to close more than 500 underperforming stores throughout the country that the company said potential buyers of the business aren't interested in taking on.
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February 12, 2025
Blank Rome Adds 2 Ex-Otterbourg Finance Pros In NY
Blank Rome LLP has added the former chair of Otterbourg PC's banking and finance department and a fellow asset-based lending and corporate transactions specialist previously with that firm as partners in its New York office, the firm has announced.
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February 11, 2025
Celsius Crypto Spinoff Stockholders Sue For Board Docs
Stockholders of Ionic Digital Inc., a company formed to hold and operate digital mining assets of bankrupt Celsius Network LLC, have sued in Delaware's Court of Chancery for access to the company's stockholder lists in order to run a competing slate of directors.
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February 11, 2025
Guo Trustee Wants More Time For 'Mind-Boggling' Clawbacks
The Chapter 11 trustee overseeing convicted fraudster Miles Guo's bankruptcy estate on Tuesday testified that the complex task of unraveling millions in cash transfers without the Chinese exile's cooperation warrants a third blanket order allowing avoidance actions beyond typical deadlines.
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February 11, 2025
SC Justices Question Receivership Orders In Asbestos Row
The South Carolina Supreme Court on Tuesday appeared to agree with a trial court's imposition of sanctions against two Canadian companies found to disobey discovery orders in asbestos injury lawsuits, but questioned whether the judge's corresponding appointment of a receiver over their insurance assets was premature.
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February 11, 2025
NY Judge Sides With Attorney In Golf Malpractice Row
A New York federal magistrate judge has recommended summary judgment in favor of an attorney in a legal malpractice lawsuit in which he is accused of causing the plaintiffs to lose an Arizona golf course property because he failed to file the proper bankruptcy paperwork.
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February 11, 2025
Ill. Atty Beats Wire Fraud Retrial After Privilege Violation
An Illinois jury has acquitted a former Freeborn & Peters partner of charges that he helped a client shift assets to avoid creditors ahead of its anticipated bankruptcy filing, after a privilege violation prompted the trial judge to exclude certain evidence from the case.
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February 11, 2025
Ex-Major Lindsey Employee Must Face Firm's $4.8M Claim
A New York bankruptcy court ruled Monday that a former Major Lindsey & Africa LLC employee embroiled in over a decade of litigation with the recruiting firm cannot discharge a $4.8 million claim it filed against her.
Expert Analysis
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Banking Compliance Takeaways From Joint Agency Statement
Federal bank regulatory agencies’ recent joint statement warning of risks associated with third-party fintech deposit services spotlights a fundamental problem that may arise with bank deposit products that are made through increasingly complex customer relationships, says Tom Witherspoon at Stinson.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Crypto Gatekeepers May Be The Next Front Of Enforcement
Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Bankruptcy Courts May Be Budding Open To Cannabis Cases
Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.