Elizabeth Freeman, formerly a partner at Jackson Walker LLP, has sought judicial intervention to stop a government subpoena requesting her personal bank records. This action follows the probe into the alleged concealment of her relationship with ex-bankruptcy judge David R. Jones, as noted by Bloomberg Law. The US Trustee, the Department of Justice’s bankruptcy monitor,…
The firm hired to investigate Rudolph Giuliani’s finances in bankruptcy must reduce its Chapter 11 bill owed by the former New York City mayor, but by only a fraction of what Giuliani had requested, a judge said. Global Data Risk LLC, hired by creditors to conduct a forensic analysis into Giuliani’s opaque finances, will have…
In recent developments, U.S. Bankruptcy Judge Christopher Lopez of the Southern District of Texas has ordered an automatic stay on litigation concerning Johnson & Johnson’s talc products. This decision came during a Monday hearing after dual motions were filed to transfer the Chapter 11 case to New Jersey. One motion was filed before Judge Lopez,…
Chief operating officers at law firms are increasingly expected to focus on clients as the demands of the job shift (Bloomberg Law). Traditionally overseeing departments such as technology and marketing, COOs now find client acquisition and retention within their purview. This evolution is spurred by firms seeking leaders with experience in companies resembling their client…
U.S. Bankruptcy Judge Marvin Isgur has initiated an investigation into Jackson Walker LLP, urging a Texas federal court to consider potential sanctions against the firm. The investigation centers around the firm’s failure to disclose a relationship between a Jackson Walker partner and a federal judge. In addition, Judge Isgur announced his decision to recuse himself…
The FTX bankruptcy estate and the multidistrict litigation (MDL) team have recently resolved critical differences over the valuation of damages, a significant step in the ongoing litigation surrounding the collapse of the cryptocurrency exchange. According to Adam Moskowitz, co-lead counsel in the FTX multidistrict litigation, the parties are optimistic about recovering up to $20 billion…
Litigation surrounding Jackson Walker LLP’s fees, collected for work performed before a bankruptcy judge involved in an undisclosed romantic relationship with a former attorney from the firm, is being reassigned to multiple judges in Houston. The adjustment follows the recusal of Judge Marvin Isgur from the bankruptcy fee cases. Judge Alfredo R. Pérez of the…
Paul Hastings has expanded its financial restructuring team by bringing on board Charles Persons as a partner in its Dallas office. The firm announced this development on Monday, reinforcing its capabilities in handling intricate restructuring and insolvency matters. Persons, who transitions from Sidley Austin, brings extensive experience in representing both debtors and creditors. His practice…
Each weekday, SCOTUSblog provides a carefully curated selection of news articles, commentary, and relevant links for those closely following the activities of the Supreme Court. For Monday, September 23, the highlights included significant developments in various legal battles and court rulings. One notable piece discussed Johnson & Johnson’s bankruptcy effort facing a setback at the…
Cooperation agreements are increasingly becoming a valuable tool for distressed debtholders who wish to negotiate from a unified and strengthened position. These agreements can also assist in protecting debtholders from liability management exercises (LMEs), a strategy that has gained traction among financially stressed private equity-sponsored companies. LMEs allow borrowers to gain additional liquidity by restructuring…
Judge Marvin Isgur recused himself from a fee dispute involving Jackson Walker LLP following his referral of the Texas law firm for disciplinary action. This referral stemmed from the firm’s failure to disclose a romantic relationship between attorney Elizabeth Freeman, then a partner at Jackson Walker, and former bankruptcy judge David R. Jones, who was…
Jackson Walker LLP is currently under intense scrutiny due to allegations of severe ethical breaches related to its former bankruptcy partner, Elizabeth Freeman, and her undisclosed relationship with ex-judge David R. Jones. The allegations surfaced in a damning letter by Judge Marvin Isgur, who stated that Jackson Walker “defiled the very temple of justice,” accusing…
Johnson & Johnson has filed its third bankruptcy in Texas regarding its talc-related liabilities. This move is contentious, with Beasley Allen opposing the Chapter 11 case. The legal firm argues that the proposed compensation, which includes up to $10 billion for talc claimants, is substantially undervalued. Andy Birchfield, a principal at Beasley Allen, referred to…
Alleged victims of childhood sexual abuse are voicing concerns regarding the Norwich Roman Catholic Diocese in Connecticut, asserting that the diocese is using its bankruptcy case as a strategy to sidestep paying settlements. Despite substantial legal expenses, with millions allocated to its legal team, victims argue that the bankruptcy plan would redirect approximately $2 million,…
A Senate committee on Thursday voted overwhelmingly to hold Ralph de la Torre, CEO of the failed Steward Health Care System, in civil and criminal contempt for rejecting a rare Congressional subpoena. In July, the Senate Committee on Health, Education, Labor, and Pensions (HELP) subpoenaed de la Torre to testify about the deterioration and eventual…
Johnson & Johnson has increased its settlement offer to over $8.2 billion in an attempt to resolve thousands of lawsuits alleging that its baby powder caused cancer. This revised bid, up from the earlier $6.5 billion proposal, indicates that J&J might allocate an additional $1.7 billion to settle the ongoing litigation. Under the new terms,…
Cahill Gordon & Reindel, a 105-year-old law firm, faced an unprecedented period of decline with a 20% drop in revenue over three years due to a slump in the high-yield and leveraged loans market. This downturn, coupled with the departure of roughly a dozen partners, served as a wake-up call that highlighted the need for…
A wave of distressed real estate properties in New York City’s outer boroughs, particularly in Brooklyn and Queens, is propelling business bankruptcy filings at the federal courthouse in downtown Brooklyn. This surge has positioned the US Bankruptcy Court for the Eastern District of New York as a national leader in real estate-related bankruptcy cases, surpassing…
A trial is set to commence in December to determine if Texas law firm Jackson Walker LLP can retain fees accrued during a former oil and gas company’s bankruptcy, despite not disclosing an attorney’s relationship with the mediating judge. The trial, slated for December 16, pits Jackson Walker against the US Trustee, the Justice Department’s…
Scott Lepene has joined ArentFox Schiff as a partner in its financial restructuring and bankruptcy practice in New York, the firm announced Monday. Lepene represents secured and unsecured creditors, debtors, and assignees in Chapter 11 proceedings, out-of-court workouts, and assignments for the benefit of creditors transactions, the firm said. He also works with real estate…
As the energy sector rapidly evolves, technology-driven collaborations have become critical to foster innovation and drive the energy transition toward global, sustainable solutions. These transactions, often between large, established energy companies and smaller, disruptive tech startups, can take various forms, including joint ventures, strategic development projects, and licensing agreements. However, negotiating these transactions requires careful…
The U.S. Trustee has recently taken the position that GUC Trusts (creditor trusts formed under bankruptcy plans) are subject to paying fees on their own disbursements to creditors. This stance has sparked debate and varied responses in the legal community, as evidenced by outcomes in three recent bankruptcy cases. Approaches to addressing the U.S. Trustee’s…
Fried Frank is embarking on an ambitious initiative to establish a leading debtor-side bankruptcy practice, and it’s doing so with a novel addition to its team: a Chief Operating Officer. Last month, the New York-based firm appointed Ben Schrag as COO of its new restructuring practice. Schrag will work alongside global restructuring chair Rachel Strickland,…
In a significant legal decision, U.S. Bankruptcy Judge Stacey L. Meisel has dismissed the Chapter 11 petition filed by John Dunlea, the former Chief Financial Officer of McElroy, Deutsch, Mulvaney & Carpenter. Currently serving a prison sentence for large-scale embezzlement from the law firm, Dunlea sought bankruptcy protection to manage his debts. The dismissal was…
In the ongoing bankruptcy case of fire protection equipment manufacturer Kidde-Fenwal Inc., California Attorney General Rob Bonta has formally raised objections regarding the escalating fees associated with the mediation process. Bonta has urged an end to the mediation, labeling the legal fees as “exorbitant” and accusing the company of “unbridled billing.” The objections were filed…