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Bankruptcy
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January 14, 2025
Wynne Transportation Can Tap Some Of $6M DIP In Ch. 11
A Delaware bankruptcy judge said Tuesday she will allow transportation service provider Wynne Transportation to borrow $2 million in initial debtor-in-possession financing on an interim basis, clearing the way to fund a Chapter 11 case the company launched in the wake of a nearly $33 million arbitration judgment.
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January 14, 2025
Trade Secret Suit Sends New Zealand Software Co. Into Ch. 15
A New Zealand company that develops actuarial software products supported by artificial intelligence commenced a Chapter 15 bankruptcy case in Delaware Tuesday, saying ongoing trade secrets litigation had harmed its sales and operations.
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January 14, 2025
Giuliani Atty Chided For 'Higher Power' Remark Ahead Of Trial
A Manhattan federal judge pushed back Tuesday against Rudy Giuliani's lawyer ahead of a trial on whether the former New York City mayor must turn over his Florida condo and World Series rings to help cover a $148 million defamation judgment, after Giuliani's counsel said a precluded witness "answers to a higher power than this court."
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January 13, 2025
Ace Gallery Founder Gets 2 Years In Prison For Embezzlement
A California federal judge on Monday sentenced art dealer Douglas Chrismas, who founded the internationally renowned Ace Gallery, to two years in prison for embezzling hundreds of thousands of dollars from the bankruptcy estate of the shuttered Los Angeles art gallery.
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January 13, 2025
Colombian Refinery Co. Gets $1B McDermott Award OK'd
Colombia's state-owned oil company on Friday won enforcement of a $1 billion arbitral award issued against Dutch and British units of Texas-based construction firm McDermott International following a dispute over a refinery modernization project.
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January 13, 2025
Madoff Trustee Blasts Katten's 2nd Bid To Drop Client
The trustee overseeing the long-running liquidation of Bernie Madoff's bankruptcy estate is fighting a renewed attempt by Katten Muchin Rosenman LLP to drop its client, French investment fund Access International Advisors, telling the court that the firm's motion to withdraw as counsel lacks novel arguments differentiating it from an earlier bid that had already been denied.
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January 13, 2025
Sen. Warren To Grill Treasury Pick On Trump's Tax Agenda
Sen. Elizabeth Warren, D-Mass., plans to ask Treasury secretary nominee Scott Bessent at his confirmation hearing in front of the Senate Finance Committee on Thursday about President-elect Donald Trump's tax agenda and plans for the Internal Revenue Service, according to a letter she sent the nominee.
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January 13, 2025
Infowars Bidder Raises Offer As Attys Consider Auction
A failed bidder for conspiracy-monger Alex Jones' Infowars has more than doubled the amount it would pay to acquire the website, and the parent company of satirical news site The Onion is preparing to submit its own revised bid, counsel for the trustee in Jones' Chapter 7 case said at a hearing in Texas bankruptcy court Monday.
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January 13, 2025
Alex Jones Switches Conn. Attys In $1B Sandy Hook Appeal
A Randazza Legal Group attorney will represent Alex Jones in a Connecticut Supreme Court bid to erase the remainder of a $1.44 billion defamation judgment for Sandy Hook shooting victims after the Infowars host's now-former lawyer raised unspecified conflict concerns about a third attorney representing Jones in the Connecticut appeal.
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January 13, 2025
Ex-Sacks Weston Atty's Theft Supports Suspension, Court Told
The severity of a suspended Philadelphia attorney's actions when he defrauded his former firm, Sacks Weston LLC, of almost $320,000 supports the Pennsylvania Disciplinary Board's recommendation of a five-year suspension of his law license, the state's Office of Disciplinary Counsel has argued.
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January 13, 2025
Smith Gambrell Faces DQ Bid In Major Lindsey Suit
A former Major Lindsey & Africa employee with a lengthy legal history with the recruiter is seeking to disqualify Smith Gambrell from representing Major Lindsey in her $75 million federal defamation suit, arguing three attorneys are key witnesses to help determine liability.
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January 13, 2025
Wynne Transportation Files Ch. 11 After $32M Arbitration Loss
Transportation services company Wynne Transportation Holdings LLC filed for Chapter 11 protection in Delaware after an arbitrator said it must pay a former subcontractor $32.8 million because it severed their partnership after the state of Texas required it to bus migrants to Democratic-controlled areas.
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January 12, 2025
Hospital Operator Hits Ch. 11 With $1B-Plus Debt, Sale Plans
Listing more than $1 billion in debts, California-based hospital operator Prospect Medical Holdings Inc. and several subsidiaries on Saturday filed a Chapter 11 petition in bankruptcy court in the Northern District of Texas, saying they intend to advance the planned sales of several facilities and refocus on operations in their home state.
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January 10, 2025
Justices To Review Block On Expanded Student Loan Benefits
The U.S. Supreme Court on Friday agreed to review the Fifth Circuit's block on expanded benefits under a federal program that forgives student loans for borrowers defrauded by higher education institutes.
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January 10, 2025
US Trustee Balks At Ch. 11 Bid Protections In First Mode Case
A package of bid protections for the stalking horse of bankrupt electric-engine developer First Mode needs to be reined in, the Office of the U.S. Trustee has said, urging a Delaware bankruptcy judge to reject the debtor's request that expenses and fees tied to the $15 million bid be paid as priority claims.
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January 10, 2025
SafeMoon CEO Wants 'Misleading' Reddit Post Explained
The CEO of bankrupt cryptocurrency asset company SafeMoon LLC asked a Brooklyn federal judge Friday to order the government to explain whether it had a role in a social media user's "misleading" post that promised to connect SafeMoon investors with the U.S. government.
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January 10, 2025
Giuliani Held In Contempt Again, This Time In DC
A D.C. federal judge Friday held Rudy Giuliani in contempt for continuing to repeat false claims that two Georgia poll workers meddled with the outcome of the 2020 presidential election, marking the second time in a week the former New York City mayor has been found in civil contempt.
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January 10, 2025
J&J Talc Claimants Seek Sanctions Over Morelli No-Show
A group of attorneys representing talc claimants in Johnson & Johnson unit Red River Talc's Chapter 11 case has urged a Texas bankruptcy judge to sanction Morelli Law Firm PLLC's founding partner, Benedict Morelli, for allegedly failing to appear in person at a December hearing and falsely claiming to have resolved a dispute with the talc group.
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January 10, 2025
Ex-McKinsey Partner Admits To Obstructing Purdue Probe
A former senior partner at consulting giant McKinsey & Co. pled guilty Friday to obstructing the U.S. Department of Justice's investigation into the firm's work with opioid manufacturer Purdue Pharma LP, a month after McKinsey agreed to pay $650 million to resolve related charges.
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January 09, 2025
J&J Spin-Off Says Talc Committee Can't Hire Brown Rudnick
Johnson & Johnson's bankrupt spin-off called Brown Rudnick's bid to represent an official committee of talc claimants "an ethical violation," telling a Texas bankruptcy judge that the law firm's previous work for a group trying to toss the case clashes with the committee's support for its Chapter 11 plan.
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January 09, 2025
Texas Oil Well Operator's Ch. 11 Plan Approved With Releases
Oil well operator Independence Contract Drilling received approval Thursday from a Texas bankruptcy judge for its Chapter 11 reorganization plan, which includes consensual third-party releases.
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January 09, 2025
FTX Squabbles With Crypto Startup Over EU Distributions
The estate of bankrupt crypto exchange FTX said it had no involvement with a startup cryptocurrency exchange's announcement that it had purchased FTX EU and would be handling distributions to former customers of the FTX European subsidiary.
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January 09, 2025
Judge Nixes Bid To Depose SEC Counsel In $73M Fraud Case
A New Jersey federal magistrate judge has denied a credit reporting agency's bid to depose four U.S. Securities and Exchange Commission attorneys and to compel the production of their witness interview notes in a civil enforcement action over an alleged $73 million fraud, ruling the information sought is protected by the work-product doctrine.
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January 09, 2025
IRS Gets First Dibs On $1M BP Oil Spill Payout, 11th Circ. Says
The IRS gets first priority to a $1 million settlement BP paid to a staffing company that racked up $23 million in federal tax debt and went bankrupt following the Deepwater Horizon oil spill, the Eleventh Circuit affirmed, denying an insurer's claim to the money.
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January 09, 2025
Body Glove Licensee Surf 9 Files Ch. 11
Florida-based sporting goods seller Surf 9, which says it is the third-largest retailer of paddle boards in the world, has filed for bankruptcy in New York, listing up to $50 million each of assets and liabilities.
Expert Analysis
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Series
Being An Equestrian Makes Me A Better Lawyer
Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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What 3rd Circ. Trust Ruling Means For Securitization Market
Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.
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Ch. 11 Case Shows Why Plan Acceptance Procedures Are Key
Sunland Medical's recent liquidation plan proposal is an important example of how top-notch judges and attorneys propose and analyze complex issues during the confirmation process, and the bankruptcy court was forward-thinking to consider the implications of such proposed treatment in the face of the Bankruptcy Code, says Kyle Arendsen at Squire Patton.
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Risks Of Rejecting Hotel Mgmt. Agreements Via Bankruptcy
In recent years, hotel owners have paid a high price when they attempted to use bankruptcy proceedings to prematurely terminate their hotel management agreements, highlighting that other options may be preferable, say attorneys at Jenner & Block.
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NC Rulings Show Bankruptcy Isn't Only For Insolvent Debtors
Two recent rulings from a North Carolina bankruptcy court show that lack of financial distress is not a requirement for bankruptcy protection, particularly in the Fourth Circuit, but these types of cases can still be dismissed for other reasons, say Stuart Gordon and Alexandria Vath at Rivkin Radler.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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Cannabis Ruling Lights Path For Bankruptcy Protection
A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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What Bankruptcy Deadline Appeal May Mean For Claimants
If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Series
Playing Hockey Makes Me A Better Lawyer
Nearly a lifetime of playing hockey taught me the importance of avoiding burnout in all aspects of life, and the game ultimately ended up providing me with the balance I needed to maintain success in my legal career, says John Riccione at Taft.
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For Lawyers, Pessimism Should Be A Job Skill, Not A Life Skill
A pessimistic mindset allows attorneys to be effective advocates for their clients, but it can come with serious costs for their personal well-being, so it’s crucial to exercise strategies that produce flexible optimism and connect lawyers with their core values, says Krista Larson at Stinson.
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Bankruptcy Courts' Role In Shaping Crypto's Legal Framework
Massive financial and criminal liability has led to the recent collapse of major cryptocurrency companies and put bankruptcy courts in the spotlight, underscoring the urgent need for a comprehensive regulatory framework, say Tara Pakrouh and Eric Monzo at Morris James.