Mid Cap

  • July 01, 2024

    NJ Hospital Dodges $14.7M In Damages Over Audits

    An accounting firm for the former operator of Hoboken University Medical Center has dodged more than $14.7 million in malpractice liability damages even though a New Jersey federal jury found it had violated professional accounting standards in audits of the financially struggling hospital.

  • July 01, 2024

    How We Got To Purdue: From Johns Manville To The Sacklers

    The U.S. Supreme Court upended years of bankruptcy practice last week when it definitively barred nonconsensual releases of nondebtors in the Chapter 11 case of Purdue Pharma, saying no authority exists to extinguish claims that creditors of a bankrupt entity may have against related entities that themselves did not file for bankruptcy.

  • July 01, 2024

    Takeoff Ch. 11 Loan Delayed As Creditors Seek Liquidation

    A Delaware bankruptcy judge indicated Monday that he wouldn't give final approval to the debtor-in-possession loan in Takeoff Technologies' Chapter 11 bankruptcy in its current form, giving the grocery automation business more time to negotiate a solution and avoid conversion of its case to a Chapter 7 liquidation.

  • July 01, 2024

    Purdue Ruling Fallout, Rite Aid Confirms Ch. 11 Plan

     A long-awaited decision by the U.S. Supreme Court struck down nonconsensual third-party releases in the bankruptcy of Purdue Pharma LP, sending the bankruptcy bar toward a rethinking of the entire process of resolving mass torts through bankruptcy; pharmacy chain Rite Aid confirmed its Chapter 11 plan; and FTX Trading got court approval for its disclosure statement.

  • July 01, 2024

    Optio Rx Scores Final Green Light On $10M DIP Deal

    A Delaware bankruptcy judge on Monday gave Illinois-based specialty pharmacy chain Optio Rx final approval for a $10 million debtor-in-possession financing package to fund its Chapter 11 case after hearing issues regarding it had been resolved.

  • July 01, 2024

    Justices Told Clarity Needed On Ch. 11 Exculpations

    Highland Capital and parties opposed to the venture capital firm's Chapter 11 plan asked the U.S. Supreme Court to clear up how the high court's recent rejection of third-party claims releases in the Purdue Pharma reorganization applies to Chapter 11 exculpations.

  • July 01, 2024

    Talc Victims Can't Block J&J From Filing For Ch. 11 Outside NJ

    A New Jersey federal judge has denied a bid for a restraining order from a group of patients suing Johnson & Johnson over claims they were injured by its talc products, saying their concern that the company would try to file for bankruptcy outside the Garden State is based on speculation and not ripe for litigation.

  • July 01, 2024

    Catching Up With Delaware's Chancery Court

    Two multimillion-dollar settlement approvals, a $25 million fee-shifting demand, and a biotech merger spoiled by murder: This was just the beginning of the drama last week in the nation's preeminent court of equity. Shareholders in satellite companies filed new cases, a cannabis company headed toward trial, and there were new developments in old disputes involving Tesla and Truth Social.

  • July 01, 2024

    Clothing Maker Delta Apparel Hits Ch. 11 With Sale Plans

    Delta Apparel Inc., a Georgia-based clothes manufacturer, and six affiliates filed for Chapter 11 bankruptcy protection in Delaware with around $250 million in debt and plans to sell the lifestyle and clothes brand Salt Life while in bankruptcy.

  • June 28, 2024

    Chevron's End Is Just The Start For Energized Agency Foes

    By knocking down a powerful precedent that has towered over administrative law for 40 years, the U.S. Supreme Court's right wing Friday gave a crowning achievement to anti-agency attorneys. But for those attorneys, the achievement is merely a means to an end, and experts expect a litigation blitzkrieg to materialize quickly in the aftermath.

  • June 28, 2024

    In Chevron Case, Justices Trade One Unknown For Another

    The U.S. Supreme Court's decision to overrule a decades-old judicial deference doctrine may cause the "eternal fog of uncertainty" surrounding federal agency actions to dissipate and level the playing field in challenges of government policies, but lawyers warn it raises new questions over what rules courts must follow and how judges will implement them.

  • June 28, 2024

    Problems Linger Amid Efforts To Clean Up Debt Firm's Mess

    After the collapse of a California debt relief firm last year amid allegations of fraud, a bankruptcy judge signed off on a plan to allow a new firm to begin providing services for thousands of affected clients. While the new firm has promised to clean up its predecessor’s mess, some consumers say little to nothing has changed, and now enforcement agencies including the Consumer Financial Protection Bureau have started asking questions.

  • June 28, 2024

    Mercon Coffee Given More Time To Explain Insider Releases

    At its confirmation hearing Friday, Mercon Coffee Corp. said it needs more time to brief a New York bankruptcy judge on why certain employees are eligible for releases that were meant to keep them at the company.

  • June 28, 2024

    Ex-NS8 Exec Was 'Willing Participant' In Fraud, Trustee Says

    The litigation trustee in defunct cybersecurity startup NS8's Chapter 11 said co-founder David Hansen must return over $5 million to the bankruptcy estate, alleging in a lawsuit in the Delaware bankruptcy court that Hansen knew about and helped cover up years of fraud by the firm's former CEO that cost investors more than $100 million.

  • June 28, 2024

    Girardi's Ch. 7 Evidence Fight May Raise Novel Issues

    Tom Girardi told a California federal judge that FBI agents violated his constitutional rights by obtaining evidence from his law firm's bankruptcy trustee without a search warrant, an argument that, if successful, could hamstring prosecutors in his upcoming wire fraud trial and shake up law enforcement's dealings with trustees.

  • June 28, 2024

    US Logistics Liquidation Comes Amid Industry Headwinds

    A lender cutting off funding may have been the direct cause of trucking company U.S. Logistics Solutions Inc. filing for Chapter 7 liquidation in Texas, but it came amid a challenging environment for truck carriers.

  • June 28, 2024

    Telecom Co. Airspan Cleared For $200M Equity Swap

    Wireless telecommunications equipment maker Airspan Networks received court approval for its prepackaged Chapter 11 plan Friday in Delaware, paving the way for a $200 million debt-for-equity transaction that the company's attorney said will give it sure financial footing for the future.

  • June 28, 2024

    Lincoln Logs Maker Basic Fun Inc. Files For Ch. 11

    Basic Fun Inc., the toy-maker behind Lincoln Logs and Tinker Toys, filed for Chapter 11 bankruptcy Friday in a Delaware bankruptcy court, listing less than $100 million in assets and liabilities each. 

  • June 28, 2024

    Nixed Purdue Ch. 11 Plan May Leave States Ready For A Fight

    State attorneys general across the country could be gearing up for more opioid-related litigation against the Sackler family after the U.S. Supreme Court wiped out a $5.5 billion third-party release for the owners of bankrupt drugmaker Purdue Pharma LP, experts told Law360.

  • June 28, 2024

    Estate Owes $4.9M For Son-Of-Boss Scheme, US Says

    An estate owes $4.9 million in tax liabilities for a couple's scheme to artificially cancel out their capital gains, the federal government said in a complaint in Michigan federal court, arguing that the Son-of-Boss scheme constitutes fraud and its proceeds aren't entitled to bankruptcy protection.

  • June 28, 2024

    Manolete Sues MSR Partners For £15.6M Over Audit Failure

    Manolete Partners PLC has sued MSR Partners LLP for £15.6 million ($19.7 million), alleging that the accounting firm failed in auditing a peer-to-peer lending platform that went into administration in 2019.

  • June 27, 2024

    Credivalores, Lender's Noteholders Tussle On Ch. 11 Plan Vote

    Colombian consumer lending giant Credivalores-Crediservicios and an ad hoc group of noteholders on Thursday disputed the legitimacy of a vote count that would determine whether the lender's prepackaged Chapter 11 reorganization plan goes forward, leaving a New York bankruptcy judge to mull what must be done.

  • June 27, 2024

    Purdue Ruling Reshapes Conn. Catholic Diocese's Ch. 11 Plan

    The U.S. Supreme Court's decision Thursday banning bankruptcy judges from forcing non-debtor third parties to release claims against other non-debtors quickly reshaped a proposed Chapter 11 plan for a Connecticut Roman Catholic diocese, as a creditors committee withdrew a $32 million abuse victim trust proposal and proffered an immediate replacement.

  • June 27, 2024

    Kavanaugh Rips 'Ruinous' Decision To Kill 3rd Party Releases

    In a fiery dissent to the U.S. Supreme Court's split ruling Thursday that eviscerated Purdue Pharma LP's reorganization plan and, along with it, nonconsensual third-party releases in Chapter 11 cases, Justice Brett M. Kavanaugh became the champion of the bankruptcy system, defending its practicality — especially in mass tort cases.

  • June 27, 2024

    Ch. 7 Can't Free PE Firm From Suit, Diamond Polisher Says

    A Canadian diamond polisher urged a Michigan federal judge to keep alive its suit alleging that a lab-grown diamond company's private equity owner knew it couldn't make good on its promise to fund new facilities to process the gemstones, saying the fact that the company is going through bankruptcy can't shield the PE firm from liability for using its alter ego to make fraudulent statements.

Expert Analysis

  • What Lawyers Must Know About Calif. State Bar's AI Guidance

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    Initial recommendations from the State Bar of California regarding use of generative artificial intelligence by lawyers have the potential to become a useful set of guidelines in the industry, covering confidentiality, supervision and training, communications, discrimination and more, say attorneys at Debevoise.

  • Industry Must Elevate Native American Women Attys' Stories

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    The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.

  • Pa. Ruling Shows Why Term Sheet Can Be Worth The Wait

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    A Pennsylvania bankruptcy court’s recent In re: Legarde ruling, holding that a settlement term sheet was enforceable, reminds litigants that it’s crucial to draft a written agreement before leaving mediation in order to resolve potential evidentiary issues and protect against buyer’s remorse, says Brian Shaw at Cozen O'Connor.

  • Understanding Discovery Obligations In Era Of Generative AI

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    Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.

  • Asserting 'Presence-Of-Counsel' Defense In Securities Trials

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    As illustrated by the fraud trial of FTX founder Sam Bankman-Fried, defense attorneys in securities trials might consider arguing that counsel had some involvement in the conduct at issue — if the more formal advice-of-counsel defense is unavailable and circumstances allow for a privilege waiver, say Joseph Dever and Matthew Elkin at Cozen O'Connor.

  • Crypto Has Democratized Trading In Bankruptcy Claims

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    Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.

  • The Case For Post-Bar Clerk Training Programs At Law Firms

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    In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.

  • 5 Key Tips For Attorneys In The Subchapter V Arena

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    Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.

  • Attorneys Have An Ethical Duty To Protect The Judiciary

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    The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.

  • Why The Debt Maturity Wall Is Still A Figment, For Now

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    While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.

  • AI Can Help Lawyers Overcome The Programming Barrier

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    Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.

  • 10 Essential Bankruptcy Litigation Tips For In-House Counsel

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    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.

  • Preparing Law Students For A New, AI-Assisted Legal World

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    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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