In a legal battle intensifying in the United States Bankruptcy Court for the Southern District of New York, McKinsey & Co. is seeking to dismiss a lawsuit filed by a bankruptcy trustee. The suit accuses the consultancy of playing a pivotal role in the downfall of the pharmaceutical company Endo International Plc due to what…
U.S. District Judge Sean F. Cox, the chief judge for the Eastern District of Michigan, has announced his decision to retire, effective July 27. Known for his role in mediating the Detroit bankruptcy, Judge Cox informed President Donald Trump of his pending retirement, as noted in an update on the federal judiciary’s website. For more…
A lawsuit against Holland & Knight LLP and partner William “Bill” Banowsky has been lodged by the bankruptcy trustee of the GWG Litigation Trust, alleging a multifaceted fraudulent scheme causing GWG Holdings Inc. significant financial loss exceeding $100 million. The trustee, Michael L. Goldberg, is pursuing a minimum of $148.4 million, covering damages and legal…
Baker Donelson has announced the recruitment of James Roberts as a shareholder in its corporate restructuring and bankruptcy group located in Birmingham, Alabama. This addition underscores the firm’s commitment to expanding its expertise in financial services-specific legal issues, particularly in areas of commercial loan restructurings and bankruptcies. Read more from Bloomberg Law. Roberts brings a…
“`html In recent developments within the legal community, a conservative group has filed a misconduct complaint against U.S. District Judge M. Casey Rodgers. The grievance highlights her order promoting female representation in the leadership of the Depo-Provera multidistrict litigation (MDL), which encompasses over 70 lawsuits following claims that the injectable birth control is linked to…
A federal judge has taken an unusual approach in a case involving a former partner at Jackson Walker, expressing disbelief at the law firm’s lack of rigorous inquiry into the specific dates concerning a relationship between the partner and a former bankruptcy judge. The allegations regarding their relationship emerged in 2021, yet the firm reportedly…
The Trump Administration has initiated steps to identify federal courthouses and other public buildings for potential sale as part of a cost-cutting measure. This initiative is spearheaded by the General Services Administration (GSA) and was recently detailed in a GSA document listing over 400 properties, including approximately 20 federal district courthouses. Among those listed for…
The legal industry is closely following the recent allegations made by a litigation trustee for the creditors of the bankrupt GWG Holdings Inc., claiming that a partner at the law firm Holland & Knight LLP, William “Bill” Banowsky, played a significant role in a fraudulent scheme designed to strip the bond seller of its assets….
Johnson & Johnson has presented its closing arguments in support of a $10 billion bankruptcy plan related to thousands of talc claims. Represented by legal teams from both the company itself and its subsidiary, Red River Talc, the focus of the arguments centered on the significant portion of claimants, believed to be at least 75%,…
John J. Ray III, the seasoned executive known for overseeing the liquidation of Enron, is now at the helm of FTX’s restructuring efforts with a substantial compensation package on the horizon. Following FTX’s dramatic collapse in 2022, Ray was brought in to navigate the complex task of returning billions of dollars to affected customers. Now,…
One year after her entrance into Selendy Gay, Kelley Cornish has assumed a pivotal leadership position within the New York-initiated litigation-focused boutique firm. Effective from February 3, Cornish has begun overseeing the firm’s strategic and financial operations, which marks a significant step in her career trajectory following a long tenure at Paul Weiss. Her role…
The collapse of FTX Trading Ltd. continues to unravel, leaving numerous account holders in a precarious situation as they scramble to validate their claims. This need for action arises as hundreds of thousands of holders find themselves at risk of being unable to reclaim any of the cryptocurrency locked within the platform. The urgency is…
The bankruptcy proceedings of FTX, the crypto empire once led by Sam Bankman-Fried, have accrued an exorbitant $950 million in fees, positioning it as one of the most expensive Chapter 11 cases in the annals of U.S. financial history. This staggering figure situates the FTX saga alongside other renowned high-cost bankruptcies, such as the Lehman…
On Tuesday, the former CEO of a prominent energy drinks company urged a Florida state court to impose $732 million in sanctions against a law firm they allege caused significant financial harm. The legal contention stems from accusations of litigation misconduct by the firm’s attorneys during their representation in a separate federal bankruptcy case. The…
This week, “Critical Mass With Law.com’s Amanda Bronstad” delves into the ongoing developments in high-profile legal cases. At the heart of the discussion is a contentious bankruptcy hearing involving Johnson & Johnson, during which tensions erupted over alleged “wedges driven in the plaintiffs’ bar” and noted “toxicity and personality conflicts.” These conflicts came to the…
Morrison Foerster, a leading law firm with extensive operations in bankruptcy law, is increasing billing rates for some of its partners. This adjustment has been documented in a recent court filing, showing a significant rise in the hourly rates charged by certain high-level attorneys. The firm’s bankruptcy partner, Benjamin Butterfield, and tax partner, Philip Jaworskyj,…
Johnson & Johnson’s talc liability unit is making strategic legal moves amidst ongoing litigation. In a recent development, the unit has taken steps to appoint Kirkland & Ellis LLP as its special litigation counsel. This transition occurs during a crucial period as J&J seeks to address mass litigation claims related to its talc products. The…
David R. Jones, a former chief bankruptcy judge in Houston, is currently engaged in discussions with government attorneys in an effort to circumvent live testimony. This development arises from a trial focusing on significant fee awards amounting to as much as $23 million, granted to a Texas-based law firm that once counted Jones’s girlfriend among…
The ongoing legal battles surrounding Johnson & Johnson’s talcum powder have shed light on divisions within the plaintiffs’ bar. Notably, Beasley Allen’s Andy Birchfield and R. Allen Smith of the Smith Law Firm represent approximately 12,000 talcum powder clients. Recently, both lawyers provided testimony that revealed their differing perspectives on Johnson & Johnson’s proposed $10…
Paul Hastings LLP has recently filed a motion for summary judgment in a malpractice lawsuit initiated by GenapSys Inc. The main argument set forth by Paul Hastings is that the lawsuit should be considered invalid due to GenapSys failing to disclose its potential claim prior to the confirmation of its bankruptcy plan. This procedural defense…
The recent fee application by Genesis Credit Partners LLC, serving as financial advisers to an unsecured creditors’ committee in the Terraform Labs Pte. Ltd. bankruptcy case, has sparked a significant pushback from both the United States Trustee and the plan administrator. The firm is seeking a total of $4 million in fees for its services…
Opening statements have commenced in Houston for a pivotal trial addressing Johnson & Johnson’s talc bankruptcy. The proceedings, anticipated to last two weeks, focus on whether Johnson & Johnson’s subsidiary, Red River Talc’s Chapter 11 case, should be dismissed due to alleged bad faith or voting improprieties. Lawyers including Greg Gordon from Jones Day and…
The legal landscape sees a pivotal moment as U.S. Bankruptcy Judge Christopher Lopez presides over the trial concerning Johnson & Johnson’s third attempt to settle its talcum powder bankruptcy. This Texas trial, set to continue for two weeks, aims to determine the legitimacy of the Chapter 11 bankruptcy filing by Johnson & Johnson’s subsidiary, Red…
In a strategic expansion of its US real estate group, Cleary Gottlieb Steen & Hamilton LLP has announced the addition of David Herman as a partner. This move, announced Wednesday, is expected to bolster the firm’s real estate capabilities significantly. David Herman comes with a wealth of experience, having been involved in commercial real estate…
Latham & Watkins LLP is set to enter the bankruptcy proceedings of Steward Health Care System LLC, following the resolution of an objection raised by the U.S. Trustee. The private health network filed a statement in the U.S. Bankruptcy Court for the Southern District of Texas indicating that the Justice Department’s bankruptcy division has accepted…