Bankruptcy

  • February 27, 2025

    Judge Axes NYC Loan Row, Sanctions Firm For Depositions

    A New York federal judge has dismissed a commercial real estate lender's claims against two guarantors for a 2022 loan it made, ripping the lender and its ex-counsel, Fox Rothschild LLP, for deposition no-shows.

  • February 27, 2025

    Judge Urges $15.5M Tax Judgment Against Ex-NFL Champ

    A federal magistrate judge recommended a default judgment against four-time Super Bowl champion Bill Romanowski and his wife for $15.5 million in taxes, saying in a report Thursday that the couple failed to respond to the underlying government complaint against them.

  • February 27, 2025

    Yellow Corp. Beats Teamsters In WARN Act Row

    A Delaware bankruptcy judge has ruled that trucking company Yellow Corp. is not liable for its failure to provide 60 days notice of layoffs to 22,000 union workers who lost their jobs as the company descended into Chapter 11, finding that Yellow was a "liquidating fiduciary" at the time and intended to comply with the WARN Act.

  • February 27, 2025

    Jones Day Gets OK For $52M In NY Diocese Ch. 11 Fees

    A New York bankruptcy judge Thursday gave final approval to Jones Day's request for nearly $52 million in compensation for shepherding Long Island's Roman Catholic diocese through its Chapter 11 case, overruling arguments it spent too much time objecting to claims.

  • February 26, 2025

    Fuel Co. Trustee Accuses Ex-Owners Of $100M Buyout Fraud

    The founders and former majority owners of the bankrupt fuel distributor Mountain Express Oil Co. were hit with a lawsuit by the company's trustee Monday alleging that they took nearly $100 million out of the business through a bogus stock buyout that pushed it to the brink of insolvency.

  • February 26, 2025

    Joann To Wind Down Operations After Judge Approves Plan

    A Delaware bankruptcy judge on Wednesday approved renowned fabric and crafts retailer Joann Inc. to wind down its operations after a "global consensus" was reached among the debtor, lender and creditors committee, allowing the 80-year-old chain to hold going-out-of-business sales.

  • February 26, 2025

    Party City Approved To Sell IP, Assets For $20.6M In Ch. 11

    A Texas bankruptcy judge on Wednesday blessed retailer Party City's bid to sell its brand name and other intellectual property to an affiliate of pop culture merchandiser Ad Populum for $20.6 million, rejecting a challenge to the deal by franchise owners that claimed the buyer was ill-equipped to take on contracts with their stores.

  • February 26, 2025

    Investor Says Lowenstein Sandler Violated Dispensary Deal

    An investment group involved in a complex dispute between Lowenstein Sandler LLP and a cannabis dispensary has asked a New Jersey state judge to enforce a settlement order and sale order, alleging the firm has violated previous legal rulings while pursuing its claim for purportedly unpaid legal fees.

  • February 26, 2025

    Boeing, Lockheed Supplier Hits Ch. 11 With Over $50M In Debt

    Dynamic Aerostructures LLC, a Los Angeles aerospace parts supplier for Lockheed Martin and Boeing, filed for bankruptcy Wednesday, citing more than $50 million in debt, after the company suffered from "manufacturing practice inconsistencies" that resulted in quality control issues.

  • February 25, 2025

    Drinks Co. Ex-CEO Files $732M Sanctions Motion Against Firm

    The former CEO of an energy drinks company on Tuesday urged a Florida state court to impose $732 million in sanctions against a law firm in a legal fees dispute, saying its attorneys' litigation misconduct caused serious financial harm while representing him in a separate federal bankruptcy case.

  • February 25, 2025

    Alex Jones Asks To Maintain Stay On Sandy Hook Payment

    Infowars founder Alex Jones told the Connecticut Appellate Court that he shouldn't be forced to pay the judgment that Sandy Hook families won in their long-running defamation case as he awaits a review by the state's Supreme Court, saying the plaintiffs are wrong that he discarded underlying constitutional arguments.

  • February 25, 2025

    Purdue Gets Time To Document New $7.4B Ch. 11 Settlement

    Counsel for bankrupt drugmaker Purdue Pharma received approval Tuesday for an extension of a mediation window during which litigation against nondebtors is paused after telling a New York judge that it has reached definitive terms on a new $7.4 billion settlement of opioid claims and needs time to finalize documentation surrounding the deal.

  • February 25, 2025

    Dental Co. Biolase Drills Down On Unopposed Ch. 11 Plan

    A Delaware bankruptcy judge on Tuesday OK'd the Chapter 11 plan of dental technology maker Biolase Inc., which was fully consensual following changes to gain the approval of the U.S. Trustee and the official committee of unsecured creditors.

  • February 25, 2025

    Landscaping Plant Farmer TreeSap Hits Ch. 11 With Sale Plans

    A Texas bankruptcy judge on Tuesday agreed to give interim approval for landscaping plants grower TreeSap Farms LLC to access $14 million of its debtor-in-possession financing, which it hopes to use to turn its business around ahead of a sale.

  • February 24, 2025

    Ex-Judge Hopes To Avoid Testimony In Atty Romance Probe

    Former Texas bankruptcy judge David R. Jones said Monday that he's been talking with the U.S. Trustee with the aim of avoiding "live trial testimony" in the probe of his undisclosed romantic relationship with a former Jackson Walker LLP partner, arguing that he's already given a deposition.

  • February 24, 2025

    Seyfarth Hires Veteran Bankruptcy Atty For Chicago Office

    Seyfarth Shaw LLP hired a veteran bankruptcy and commercial litigation attorney as a partner for the restructuring and insolvency team in its Chicago office, the firm has announced.

  • February 24, 2025

    Wellpath Delays Chapter 11 Exit To Buy Time For Creditor Deal

    Wellpath will delay confirmation of its Chapter 11 plan by two weeks to buy time to work through objections to the reorganization of its prison healthcare business, attorneys told a Texas bankruptcy judge Monday.

  • February 24, 2025

    Purdue's New Ch. 11 Plan Sidesteps Nonconsensual Releases

    Mediators helping to craft a new settlement in the case of bankrupt OxyContin maker Purdue Pharma LP said in their latest update in New York bankruptcy court that the company's revised deal does not contain nonconsensual third-party waivers.

  • February 24, 2025

    High Court Won't Hear Bankruptcy 'Safe Harbor' Dispute

    The U.S. Supreme Court declined Monday to hear a dispute over what transactions are protected from clawback by a trustee, leaving in place a Second Circuit decision finding that the U.S. Bankruptcy Code's safe harbor provisions trump the trustee's state-law based fraudulent transfer claims.

  • February 24, 2025

    Steward Health Risking Patient Lives At Hospitals, Buyer Says

    The buyer of eight Steward Health Care hospitals said the bankrupt company is putting patients' lives at risk by failing to provide funds and services it promised, urging a Texas federal judge to compel Steward to comply with contracts it signed as part of its hospital sales.

  • February 21, 2025

    Real Estate Recap: 'Park Ave' Effect, Federal Leases, Atty Hires

    Catch up on this past week's key developments by state from Law360 Real Estate Authority — including a fourth-quarter "Park Avenue Phenomenon" seen by top brokerages, industry reaction to the potential federal lease slimdown, and a senior analyst's projection for family office investment in commercial real estate.

  • February 21, 2025

    Prime Core Crypto 'Hopelessly Commingled,' Plan Admin Says

    Counsel for the administrator of cryptocurrency custodian Prime Core's Chapter 11 wind-down plan on Friday defended its decision to treat the debtor's cryptocurrency as property of the estate, even when it came from customers.

  • February 21, 2025

    First Horizon Says Ex-CEO Is Dropping Claims To Avoid Loss

    First Horizon Bank told a Florida federal judge that a former bank CEO cannot drop claims against individual bank directors to shield himself from an inevitable adverse judgment in the suit, which accused the bank and its directors of setting up the CEO as a scapegoat in the legal fallout of attorney Scott Rothstein's $1.2 billion Ponzi scheme.

  • February 21, 2025

    B. Riley Founders, Board Sued In Del. Over Investment Losses

    A B. Riley Financial Inc. stockholder has launched a derivative suit seeking hundreds of millions of dollars in damages for the company in Delaware's Court of Chancery, alleging director conflicts tied to investments in now-bankrupt holding company Franchise Group Inc., led by a longtime friend of a B. Riley co-founder.

  • February 21, 2025

    'Unsupported Conclusions' Doom Ad App Suit Against Google

    A California federal judge has permanently tossed an antitrust suit accusing Google of kicking a now-defunct advertising app maker out of the Play Store in order to squelch a potential digital advertising rival, finding that the act alone was not enough to show harm to the market from the alleged monopolization.

Expert Analysis

  • The 3rd-Party Bankruptcy Release Landscape After Purdue

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    In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.

  • Striking A Balance Between AI Use And Attorney Well-Being

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    As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.

  • Empathy In Mediation Offers A Soft Landing For Disputes

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    Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.

  • Series

    Being An Artist Makes Me A Better Lawyer

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    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.

  • How Judiciary Can Minimize AI Risks In Secondary Sources

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    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.

  • How Attorneys Can Break Free From Career Enmeshment

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    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.

  • Bankruptcy Decision Exemplifies Venue Issue For Franchisees

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    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.

  • Lawyers With Disabilities Are Seeking Equity, Not Pity

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    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.

  • Opinion

    Judicial Committee Best Venue For Litigation Funding Rules

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    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.

  • The Strategic Advantages Of Appointing A Law Firm CEO

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    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.

  • Series

    Beekeeping Makes Me A Better Lawyer

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    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.

  • Unpacking State AG Approaches To Digital Asset Enforcement

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    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.

  • Opinion

    Legal Institutions Must Warn Against Phony Election Suits

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    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.

  • What Being An 'Insider' Means In Ch. 11, And Why It Matters

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    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.

  • How Cos. Can Build A Strong In-House Pro Bono Program

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    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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