Bankruptcy – Page 32 – Legal News Feed

Bloomberg Law

Infowars Bankruptcy Auction: A Clash of Ideologies in the Race for Alex Jones’ Legacy

Pieter Gunst2 years ago03 mins

The bankruptcy sale of Alex Jones’ media platform, Infowars, presents a distinctive conundrum in the usually straightforward domain of financial liquidations. While bankruptcy proceedings typically revolve around monetary recuperation, this particular auction unfolds with significant political overtones. As Jones’ media empire is dismantled, stakeholders with divergent ideological agendas emerge as potential bidders. On one side,…

Law360

Texas Legal Battle Intensifies as Judge Halts U.S. Trustee Deposition in Judicial Conduct Inquiry

Pieter Gunst2 years ago01 mins

In a significant development within a Texas legal proceeding, a Houston judge has paused the deposition of the U.S. Trustee for the Texas divisions. The deposition was sought by the law firm Jackson Walker in relation to an ongoing dispute over a former Texas bankruptcy judge’s undisclosed relationship with a former partner at the firm….

Bloomberg Law

Jackson Walker Faces DOJ Scrutiny Over Alleged Undisclosed Relationship with Former Judge

Pieter Gunst2 years ago02 mins

In recent legal developments, Jackson Walker LLP finds itself at the center of a controversy involving allegations of ethical breaches related to undisclosed relationships within the legal profession. According to materials viewed by Bloomberg Law, two attorneys from the firm exchanged text messages in 2021 discussing the implications of a hidden romantic relationship between one…

Bloomberg Law

Auto Industry Navigates Financial Challenges with Bankruptcy Alternatives

Pieter Gunst2 years ago03 mins

In the current post-pandemic landscape, automotive suppliers are increasingly seeking alternatives to traditional Chapter 11 bankruptcy filings to navigate financial distress and operational restructuring. This strategic shift is driven by a host of challenges facing the industry, such as persistent supply chain disruptions, raw material shortages, and the financial demands of transitioning to electrification. One…

Bloomberg Law

Justice Department Intensifies Venue Dispute Over Jackson Walker LLP Fee Challenges amid Ethical Concerns

Pieter Gunst2 years ago02 mins

The United States Department of Justice’s Bankruptcy Division has intensified its challenge against Jackson Walker LLP by seeking to move 16 contentious disputes from the bankruptcy court to a federal district court. These disputes, which center around ethical concerns regarding fees the Texas-based law firm earned, have sparked significant attention due to the undisclosed relationship…

Law.com

Corporate Bankruptcies Decline in Q3, Yet 2023 Set to Exceed Previous Year by 25%

Pieter Gunst2 years ago01 mins

The third quarter of this year saw a slowdown in corporate bankruptcies, providing some relief for the business sector. Despite this, the year remains poised to surpass 2023 business bankruptcy filings by 25%, according to a recent report. Legal firms Weil, Gotshal & Manges, Davis Polk & Wardwell, and Sidley Austin have notably secured significant…

Law360

Gloria Allred’s Legal Battle with Former Tenant Over Rat Infestation Raises Questions in Federal Court

Pieter Gunst2 years ago01 mins

The ongoing legal confrontation between prominent attorney Gloria Allred and her former tenant has taken an intriguing turn. The tenant alleges that he vacated Allred’s Manhattan apartment due to a rat infestation eight years prior. This dispute has now progressed to the New York federal court system, prompting the presiding judge to express puzzlement over…

Law.com

Jackson Walker Remains Resilient Amid Bankruptcy Partner Controversy

Pieter Gunst2 years ago01 mins

A spokesperson for Texas-based law firm Jackson Walker has stated that the firm remains “on track” for a successful year, despite handling repercussions from a controversy involving a former bankruptcy partner engaged in a relationship with a former bankruptcy judge in Houston. This judge had overseen numerous cases involving the law firm. Despite the potential…

Law.com

Delaware Maintains Dominance Over Texas in Corporate Bankruptcy Cases for 2024

Pieter Gunst2 years ago01 mins

The rivalry between Delaware and Texas in the realm of corporate bankruptcies has grown more pronounced in 2024. Delaware continues to be the dominant jurisdiction, with its prominence further highlighted by the increasing difference between it and its closest competitor, the Southern District of Texas. For more in-depth insights, the full details can be accessed…

Bloomberg Law

Texas Supreme Court Poised to Uphold Bankruptcy Ruling in Real Estate Malpractice Case

Pieter Gunst2 years ago02 mins

In a recent session, the Texas Supreme Court justices conveyed indications that they may uphold a controversial bankruptcy court decision involving a significant legal malpractice judgment. This decision became central to the debates surrounding a botched real estate transaction that led a brokerage firm into financial distress. The case revolves around a $20 million legal…

Bloomberg Law

Smith, Gambrell & Russell Boosts Corporate and Global Transport Practices with Partner Addition

Pieter Gunst2 years ago02 mins

Smith, Gambrell & Russell has further strengthened its corporate practice and global transport group by recruiting Edward Christian as a partner. Christian brings a wealth of experience to the firm’s New York and Atlanta offices, particularly in advising an array of clients such as lenders, borrowers, investment funds, and portfolio companies. His expertise spans areas…

Bloomberg Law

Houston Bankruptcy Cases Drop 65% After Judge’s Resignation, Study Reveals

Pieter Gunst2 years ago01 mins

Large corporate bankruptcies in the Southern District of Texas have seen a notable decline, dropping by 65% in the first half of 2024 as compared to the same period in 2023. This substantial decrease follows the resignation of a prominent bankruptcy judge, manifesting significant changes in bankruptcy filings within the jurisdiction (more info). Despite the…

Law.com

Continued Underrepresentation of Nonwhite Attorneys in MDL Leadership Roles Highlights Need for Reform

Pieter Gunst2 years ago01 mins

A recent report by Law.com’s Amanda Bronstad highlights striking disparities in the appointment of nonwhite attorneys to lead roles in Multi-District Litigation (MDL). Data reveals that in 2023, nonwhite attorneys received just 11% of these critical positions, raising concerns over the diversity and inclusiveness within the legal community. The figures prompt further scrutiny on the…

Bloomberg Law

Nevada Court Rules Attorney’s Fees Take Precedence Over IRS Tax Liens in $750,000 Settlement

Pieter Gunst2 years ago01 mins

Fox Rothschild LLP’s claim to collect attorneys’ fees from a client’s $750,000 settlement takes precedence over the IRS’s tax lien on the same amount, according to a decision by a Nevada federal court. The firm had represented Timothy Blixseth in a Chapter 7 involuntary bankruptcy action initiated by a group of creditors in 2011. The…

Law360

U.S. Trustee Urges Recovery of Fees from Reed Smith Over Undisclosed Eletson Holdings Ties

Pieter Gunst2 years ago01 mins

The U.S. Trustee’s Office is urging a New York bankruptcy judge to recover fees and expenses from Reed Smith LLP, alleging that the firm failed to disclose its connections with directors of Eletson Holdings while representing the shipping company in its Chapter 11 bankruptcy. This development raises significant compliance and ethical considerations for legal practitioners…

Law.com

U.S. Trustee Seeks Transfer of Johnson & Johnson Talc Bankruptcy Case From Texas to New Jersey

Pieter Gunst2 years ago01 mins

In a recent motion filed on Thursday, Jayson Ruff, a trial attorney for U.S. Trustee Kevin Epstein in Houston, is pushing to move the ongoing Texas talc bankruptcy case involving Johnson & Johnson (J&J) to New Jersey. The move follows the New Jersey bankruptcy court’s refusal to address a similar motion just two days earlier…

Bloomberg Law

Foley & Lardner Accused of Malpractice Over $154 Million GWG Holdings Transactions

Pieter Gunst2 years ago02 mins

In recent developments, Foley & Lardner LLP is facing allegations of malpractice linked to their advisory role in transactions involving GWG Holdings Inc. According to a litigation trustee assigned to GWG’s bankruptcy estate, Foley & Lardner facilitated loan and equity transactions that allegedly disadvantaged their client, GWG Holdings, to the benefit of Beneficient Co. Group…

Bloomberg Law

Judges Split on Creditor Consent After Supreme Court Nixes Purdue Pharma Bankruptcy Plan

Pieter Gunst2 years ago02 mins

After the US Supreme Court nullified Purdue Pharma’s bankruptcy plan, judges are divided on the issue left unresolved by the high court regarding creditor consent. This matter, particularly surrounding third-party liability releases, has seen conflicting interpretations among judges, even within the same district. In a 5-4 decision in June, the Supreme Court ruled that liability…

Law360

Former Jackson Walker Attorney Must Comply with Subpoena in Judge Romance Inquiry, Court Rules

Pieter Gunst2 years ago01 mins

Legal News A former Jackson Walker LLP lawyer on Thursday lost her bid to torpedo a subpoena from the U.S. Trustee’s Office seeking her bank records. The subpoena is part of an inquiry into her secret relationship with a former Texas federal bankruptcy judge. Court records indicate that the court denied the attorney’s request, thereby…

Bloomberg Law

Former Partner at Jackson Walker LLP Under Investigation Amid Relationship with Ex-Bankruptcy Judge

Pieter Gunst2 years ago01 mins

Elizabeth Freeman, a former partner at Jackson Walker LLP, is the focus of a criminal investigation alongside her relationship with a former bankruptcy judge. During a recent bankruptcy court hearing, Freeman’s attorney, Tom Kirkendall, disclosed that a subpoena from the US Trustee’s office has requested years of her client’s bank records. Kirkendall argued for the…

Law360

FTX Examines Sullivan & Cromwell’s Handling of Acquisition Amid Bankruptcy

Pieter Gunst2 years ago01 mins

In a recent development, the Chapter 11 examiner assigned to the bankruptcy proceedings of the cryptocurrency exchange FTX Trading has concluded that the debtor law firm Sullivan & Cromwell did not overlook any “red flags” related to allegations of misconduct by FTX. This evaluation centers around the $500 million acquisition of stock in Robinhood Markets…

Bloomberg Law

FTX Examiner Report Exonerates Sullivan & Cromwell in Robinhood Transaction Amid Bankruptcy Proceedings

Pieter Gunst2 years ago02 mins

FTX Examiner Clears Sullivan & Cromwell in Robinhood Shares Deal FTX Trading Ltd. counsel Sullivan & Cromwell LLP was not conflicted and did not ignore red flags when assisting the crypto company’s co-founder Sam Bankman-Fried in acquiring a significant stake in Robinhood Markets Inc., valued at over $600 million. This conclusion comes from a court-approved…

Law.com

Johnson & Johnson Files for Third Bankruptcy Amid Ongoing Talcum Powder Lawsuits and Zantac Litigation Setbacks

Pieter Gunst2 years ago01 mins

Johnson & Johnson has initiated its third wave of bankruptcy filings due to ongoing litigation over its talcum powder products, according to Amanda Bronstad from Law.com. This move comes as the pharmaceutical giant faces thousands of lawsuits alleging that its talc-based products cause cancer. Meanwhile, plaintiffs in the Zantac litigation have faced another setback, with…

Law.com

Legal Uncertainty Deepens as Courts Clash Over Bankruptcy Case Dismissals

Pieter Gunst2 years ago01 mins

Appellate courts are currently divided on whether to review a bankruptcy court’s refusal to dismiss an entire case. This disagreement has become more apparent as two district judges, within the last few months, have issued conflicting decisions in appeals from the bankruptcy court. This development highlights an ongoing split among the nation’s courts of appeals,…

Ars Technica

Caroline Ellison Sentenced to 2 Years for Aiding Sam Bankman-Fried in FTX Fraud

Pieter Gunst2 years ago03 mins

Caroline Ellison, former chief executive officer of Alameda Research LLC, was sentenced Tuesday to 24 months for helping Sam Bankman-Fried cover up FTX’s fraudulent misuse of customer funds, causing billions in customer losses. Addressing the judge at sentencing, Ellison expressed deep remorse for her role in the fraud and acknowledged the massive impact of her…