Mid Cap
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November 26, 2024
Paul Hastings Seeks GenapSys CEO Depo In Malpractice Suit
Paul Hastings LLP has called on a California court to compel the founder and former CEO of GenapSys to sit for a deposition in a legal malpractice suit alleging that the firm improperly drafted board documents that invited an expensive lawsuit and led to the genetic sequencing company's "demise and liquidation."
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November 26, 2024
X Corp. Says InfoWars Social Media Accounts Can't Be Sold
The parent company that owns X, the social media platform formerly known as Twitter, told a Texas bankruptcy judge that the Chapter 7 trustee in the case of right-wing conspiracy theorist Alex Jones can't sell X accounts tied to Jones and his InfoWars business because they are the property of the social media company.
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November 26, 2024
Bitcoin Miner Rhodium To Get OK For $55M Ch. 11 Sale
A Texas bankruptcy judge on Tuesday agreed to approve bitcoin mining company Rhodium Encore's $55 million sale of the lease for its Temple, Texas, facility to data center company Temple Green Data LLC.
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November 26, 2024
Pa. Nursing Home Eying Sale Seeks Fraud Sentencing Delay
The parent company for a troubled Western Pennsylvania nursing home asked a federal court to postpone a sentencing for defrauding state and federal healthcare programs so the company can keep trying to sell the facility, or at least relocate its residents over a longer period of time.
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November 26, 2024
Giuliani's New Atty Faults Previous Counsel As NY Trial Nears
A Manhattan federal judge declined Tuesday to delay a January trial over whether Rudy Giuliani must turn over his Florida condo and World Series rings to fund a $148 million defamation judgment, after the former New York City mayor's new lawyer criticized outgoing counsel.
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November 25, 2024
Judge Eyes Dec. Hearing To Sort Out Onion's Bid For Infowars
A Texas judge asked the Chapter 7 trustee in right-wing fabulist Alex Jones' bankruptcy to preserve the status quo until a sale hearing sometime in December that will determine whether the parent company of satirical news publisher The Onion was correctly chosen as the winning bidder in the auction for Jones' Infowars program.
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November 25, 2024
Alex Jones Blasts Onion Bid, FTX Tech Deputy Avoids Prison
Alex Jones and a backup bidder linked to his Chapter 7 are challenging the sale of his Infowars website to The Onion, alleging flaws in the auction process. A former FTX's tech deputy can avoid prison time for assisting the FTX fraud case by exposing programming flaws; attorneys who have represented Purdue Pharma can receive $21.2 million in fees for its work during summer. This is the week in bankruptcy.
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November 25, 2024
Madoff Trustee Inks Deal To End $21M Clawback Against ZCM
The trustee liquidating the assets of Ponzi schemer Bernard Madoff has agreed to settle its $21.2 million clawback suit against ZCM Asset Holding Co. for $10.6 million, it said in filing in New York bankruptcy court Friday.
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November 25, 2024
NYC Real Estate Week In Review
Goldgrub Law and Mandelbaum Barrett are among the law firms that steered the largest New York City real estate deals to hit public records last week, a period that saw several large residential transactions across Manhattan and Queens.
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November 25, 2024
Aztec Fund Can Sell Colorado Building For $4.5M In Ch. 11
A Texas bankruptcy judge Monday gave his blessing for bankrupt private equity investor Aztec Fund Holding Inc. to sell one of its real estate properties to Valley Equity Group LLC for just over $4.5 million.
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November 25, 2024
Nostrum Wants Automatic Ch. 11 Stay Extended To CEO
Drugmaker Nostrum Laboratories asked a New Jersey bankruptcy judge to extend its Chapter 11 automatic stay to its CEO and its parent company, Nostrum Pharmaceuticals LLC, both of which are nondebtors.
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November 25, 2024
E-Commerce Co. Grocery Shopii Files For Ch. 7 Liquidation
E-commerce company Grocery Shopii filed for Chapter 7 liquidation in Delaware bankruptcy court listing a bit over $2.8 million of debt against a shade over $1 million of assets.
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November 22, 2024
Retirement Contributions Found Not Disposable In Ch. 13
A split Ninth Circuit on Friday held that voluntary contributions to employer-managed retirement plans are not disposable income under Chapter 13 bankruptcy, reversing a lower court's decision that required a debtor to include $484 in monthly retirement contributions in her disposable income.
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November 22, 2024
Under The Radar: Bankruptcy News You May Have Missed
Troubled nursing home operator Petersen Health Care reached a settlement with the former owner of one of its properties, a Chapter 11 examiner urged mediation in the bankruptcy of New York hedge fund Weiss Multi-Strategy Advisers and the liquidating trust for Residential Capital LLC was given a two-year extension to continue insurance coverage litigation.
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November 22, 2024
Trustee To Take Over Ch. 11 Of NY Bar Assoc. Building Owner
A New Jersey bankruptcy judge on Friday sided with a lender of the insolvent owner of the historic New York County Lawyers Association Building in Manhattan, ordering that a Chapter 11 trustee take over the property owner's bankruptcy cases.
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November 22, 2024
Ex-Loot Crate Owner Says Fee Cut Deal Will Pave Ch. 11 Exit
The former owner of pop-culture merchandise subscription box Loot Crate has asked a Delaware bankruptcy judge to sign off on a settlement it said is the best way to maximize creditor recoveries and wind up its administratively insolvent, five-year-old Chapter 11 case.
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November 22, 2024
UAE Defense Contractor Says Ch. 11 Case 'Fell Apart Quickly'
Abu Dhabi-based defense contractor Paramount Group Ltd. told a Delaware bankruptcy judge on Friday that its efforts to implement a Chapter 11 restructuring "fell apart" in the early days of its case, and that a motion to dismiss the proceedings filed by the U.S. Trustee's Office should be granted.
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November 22, 2024
Judge Grants Dormify Breathing Room In Ch. 11
A Delaware bankruptcy judge on Friday gave Dormify Inc., a retailer that sells college gear and decor for dorms, approval to use its existing cash management system and held off on requiring it to hire a claims agent, having learned that the debtors' counsel are working fast to get a handle on the case themselves.
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November 22, 2024
Pot Dispensary Aims To Escape Lowenstein Sandler's Fee Suit
A New Jersey cannabis dispensary has moved to dismiss a suit from Lowenstein Sandler LLP seeking nearly $800,000 in unpaid fees, telling a state court that the firm did not give the proper notice before suing over the fee dispute.
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November 22, 2024
Judge Garrity Will Leave SDNY Bankruptcy Bench In 2025
The U.S. Bankruptcy Court for the Southern District of New York, one of the nation's busiest bankruptcy venues, has announced that it will be losing one of its longest-serving judges next year.
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November 22, 2024
Latham Adds 4 Restructuring Attys From Weil And Paul Weiss
Latham & Watkins LLP announced Thursday that it has tapped four restructuring practice leaders from two rival BigLaw shops to join its New York office.
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November 22, 2024
Fed Bans Ex-CEO Of Bank Felled By Crypto Scam
The former CEO of Kansas' now-shuttered Heartland Tri-State Bank has been banned by the federal government from being a part of the banking industry after stealing $47.1 million from the bank to give to cryptocurrency scammers, leading his bank to fail.
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November 22, 2024
Avante Health Parent Cleared To Sell For $72.5M In Ch. 11
A Delaware bankruptcy judge on Friday approved the $72.5 million sale of Jordan Health, the corporate parent of medical equipment company Avante Health, to an affiliate of Staple Street Capital after the debtor reached a settlement with unsecured creditors.
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November 22, 2024
1st Circ. Backs Auction For Bankrupt Farmer's Milk Quota
The First Circuit has affirmed a Puerto Rico regulator's ability to order the sale of a dairy farmer's milk quota despite his pending bankruptcy, ruling the action wasn't blocked by a stay blocking actions that can affect a bankruptcy estate.
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November 22, 2024
Hodgson Russ Adds Bankruptcy Talent To Buffalo Team
Hodgson Russ LLP has added an attorney who focuses on complex commercial insolvency matters to its team in Buffalo to work as a partner with its bankruptcy, restructuring and commercial litigation practice.
Expert Analysis
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan
The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.
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Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares
In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.
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No Matter The Purdue Ruling, Mass Tort Reform Is Needed
The U.S. Supreme Court will soon issue its opinion in the bankruptcy of Purdue Pharma LP, and regardless of the outcome, it’s clear legal and policy reforms are needed to address the next mass tort, says William Organek at Baruch College.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Insurers Have A Ch. 11 Voice Following High Court Ruling
The U.S. Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Gypsum — which reaffirmed a broad definition of "party in interest" — will give insurers, particularly in mass tort Chapter 11 bankruptcies, more opportunity to protect their interests and identify problems with reorganization plans, says George Singer at Holland & Hart.
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Considerations For Cooperation Contracts In Loan Trades
Significant challenges to settling trades can arise when lenders of syndicated bank loans enter into defense-oriented cooperation agreements, which are growing in popularity, but working through these issues on the front end of a trade can save hours down the road, says Robert Waldner at Crowell & Moring.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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9th Circ. Clarifies ERISA Preemption For Healthcare Industry
The Ninth Circuit's recent ruling in Bristol SL Holdings v. Cigna notably clarifies the broad scope of the Employee Retirement Income Security Act's preemption of certain state law causes of action, standing to benefit payors and health plan administrators, say attorneys at Troutman Pepper.
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NY Combined Hearing Guidelines Can Shorten Ch. 11 Timeline
The Southern District of New York’s recently adopted guidelines on combining the processes for Chapter 11 plan confirmation and disclosure statement approval may shorten the Chapter 11 timeline for companies and reduce associated costs, say Robert Drain and Moshe Jacob at Skadden.
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A Healthier Legal Industry Starts With Emotional Intelligence
The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.