Mid Cap
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February 11, 2025
3rd-Party Releases OK'd In Rochester Diocese's Ch. 11 Plan
A New York bankruptcy judge Tuesday delayed approval of the Roman Catholic Diocese of Rochester's Chapter 11 plan disclosure for a month to review last-minute changes, but he said he had made up his mind that third-party liability releases in the plan are acceptable.
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February 11, 2025
Catching Up With New Bankruptcy Case Action
Zips Car Wash filed for Chapter 11 in Texas with $654 million in debt, struggling with liquidity from competition and rising interest rates. Omega Therapeutics filed for bankruptcy with $140 million in debt and a restructuring plan with its shareholders. White Forest Resources filed for Chapter 11 due to production and shipping issues and plans to sell one of its two mines in West Virginia.
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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
Meet The Attys Guiding Omega Therapeutics Through Ch. 11
Biotechnology company Omega Therapeutics, which hit Chapter 11 in Delaware on Monday with more than $140 million of debt and a restructuring agreement with an affiliate of its controlling stockholder, has called on attorneys from Morris Nichols Arsht & Tunnell LLP to guide its insolvency.
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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.
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February 10, 2025
GenapSys Can't Claw Back Some Docs From Paul Hastings
A California judge ruled that GenapSys Inc. can claw back some documents it inadvertently released during discovery in a legal malpractice suit against Paul Hastings LLP, but that some documents discussed during depositions cannot be clawed back because attorneys for GenapSys did not lodge proper objections during the proceedings.
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February 10, 2025
DC Apartment Owner Finds Ch. 11 Buyer Via Credit Bid
The owner of a Washington, D.C., apartment building told a Delaware bankruptcy judge it found a buyer for the property who will acquire the asset through a credit bid.
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February 10, 2025
Sandy Hook Families Accuse Alex Jones Of 'Ambush' Appeal
Connecticut's highest court should swat down Infowars host Alex Jones' attempt to appeal a record-smashing Sandy Hook defamation verdict because he abandoned the very defenses he now seeks to present under a special type of review for unpreserved constitutional arguments, the victims of the 2012 mass shooting have said.
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February 10, 2025
Spyglass Says Weinstein Has No Rights To 'Scream 4' Profits
Film and television production company Spyglass, which bought the assets of The Weinstein Co. during its bankruptcy several years ago, is trying to fend off an attempt by Harvey Weinstein to collect money generated by the film "Scream 4."
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February 10, 2025
Akoustis Gets OK On Motions Tied To Ch. 11 Sale 'Cleanse'
A Delaware bankruptcy judge on Monday agreed to approve a handful of motions that radio frequency filter maker Akoustis Technologies Inc. said are related to its efforts to quickly scrub information covered by an intellectual property injunction from its assets before selling them in Chapter 11.
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February 10, 2025
Jones' Ch. 7 Deal Sunk, Yellow Scores Partial Pension Win
A Texas bankruptcy judge has rejected a Chapter 7 trustee's proposal to settle $1.5 billion in Sandy Hook claims against Alex Jones, Yellow Corp. won a partial victory in a $540 million pension dispute after a Delaware judge ruled liabilities were overstated, and the Eleventh Circuit barred a mortgage servicer from charging unauthorized "pay to pay" fees. This is the week in bankruptcy.
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February 10, 2025
Former Palm GC's Racial Bias Claim Should End, Judge Says
A New York federal judge has recommended dismissing a race discrimination claim brought by an ex-general counsel for The Palm steakhouse chain's owner while allowing her retaliation and breach of contract claims to proceed to arbitration, concluding that the company's onetime top lawyer had not shown the restaurant had "discriminatory intent."
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February 10, 2025
Small Businesses Already Closing After Subchapter V Lapse
Some small businesses have failed, with their owners simply walking away, since Congress let expire a provision that had made them eligible for Subchapter V protection, according to bankruptcy professionals.
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February 10, 2025
Biotech Firm Omega Therapeutics Hits Ch. 11 To Restructure
Biotechnology company Omega Therapeutics hit Chapter 11 in Delaware on Monday, listing over $140 million of debt on its petition and having filed a form with the U.S. Securities and Exchange Commission saying it had entered a restructuring agreement with an affiliate of its controlling stockholder.
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February 10, 2025
W. Virginia Coal Miner Hits Ch. 11 With $79M Debt, Sale Plans
West Virginia coal miner White Forest Resources filed for Chapter 11 protection in Delaware with nearly $79 million in debt, saying after struggling with production and shipping issues it plans to sell one of its two mines before the end of April.
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February 07, 2025
3 Firms Seek To Co-Lead Suits Over Banks' Synapse Ties
Attorneys from three firms are seeking to represent fintech customers in consolidated class claims in Colorado federal court against several banks over $85 million in funds that went missing after the failure of fintech-to-bank middleman company Synapse Financial.
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February 07, 2025
For These Victims, Death Came Before Bankruptcy Resolution
Thousands of people have died with no compensation in recent years as big institutions shield themselves in bankruptcy court from claims related to opioids, fraud, asbestos and sexual abuse, plaintiffs' lawyers say. Critics say it's an inherent part of a bankruptcy court system that helps insiders and hurts creditors.
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February 07, 2025
Ex-NFL Star Romanowski's Bankruptcy Converted To Ch. 7
Former NFL player Bill Romanowski and wife Julie had their Chapter 11 bankruptcy case converted to a Chapter 7 on Friday, after a California judge called a filing from the couple seeking the case's dismissal full of "hyperbole" and said a trustee is needed to examine the pair's assets and liabilities.
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February 07, 2025
Trailer Cos. Sue KAL Freight Over Alleged Theft Of Vehicles
Two manufacturers of truck trailers have sued bankrupt trucking company KAL Freight Inc. in Texas bankruptcy court, saying the company ran a scheme to improperly take ownership of hundreds of trailers without paying for them.
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February 07, 2025
Under The Radar: Bankruptcy News You May Have Missed
A onetime financial adviser to UpHealth is opposing the debtor's Chapter 11 plan, Hearthside Food Solutions' official committee of unsecured creditors has balked at the company's executive bonus proposal in bankruptcy, and one-time investors in defunct real estate investment firm RealtyShares willingly dismissed a suit against the firm's former directors, litigation that had outlived the firm's Chapter 7 by more than a year.
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February 07, 2025
Syracuse Diocese Wants Rep For Unknown Abuse Claimants
The Roman Catholic Diocese of Syracuse asked a New York bankruptcy judge to appoint a representative for currently unknown sexual abuse claimants and to extend the deadline for the representative to vote on the diocese's Chapter 11 plan until the end of March.
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February 07, 2025
NAFTA Case Useful In Bid To DQ Quinn Emanuel, Judge Says
A Florida federal judge has ruled that a Mexican oil company can use information on dismissed NAFTA arbitration and other documents in a bid to disqualify former counsel Quinn Emanuel, saying the evidence is relevant to underlying litigation over alleged funds transfers.
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February 07, 2025
4th Circ. Says LeClairRyan Founder May Duck Tax Liability
Defunct law firm LeClairRyan PLLC's operating agreement did not bar founder Gary LeClair from jumping ship in time to potentially dodge massive tax bills tied to the firm's collapse, the Fourth Circuit ruled Friday.
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February 07, 2025
Aztec Fund To Sell 3 Office Buildings To Settle Ch. 11 Dispute
Private equity investment group Aztec Fund told a Texas bankruptcy judge Friday it will sell three office buildings and aim to liquidate through Chapter 11 to resolve a dispute over the insolvency case with Bank of America.
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February 06, 2025
Earthlink Investors' Attys Score $28M In Merger Suit
The attorneys who helped Earthlink investors score an $85 million settlement with the company after they said they were tricked into approving a $1.1 billion merger with a failing telecommunications company will be walking away with almost $28 million for their trouble.
Expert Analysis
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10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.
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Decoding The Digital Asset Landscape In Bankruptcy
Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.
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How Fla. Bankruptcy Ruling May Affect Equity Owners
A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.
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Calif. Ruling May Open Bankruptcy Trustees To Tort Liability
In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.
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Co. Directors Must Beware Dangers Of Reverse Factoring
New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.