As Johnson & Johnson readies its third attempt to resolve talc-related cancer litigation through bankruptcy, a spotlight has been cast on the issue of what constitutes a “good faith” filing in Chapter 11 cases. There is no standardized method of evaluating good faith filings in the US Bankruptcy Code, leading to varied interpretations across different…
A California bankruptcy judge ruled on Tuesday that the now-defunct Orange County debt relief law firm, Litigation Practice Group, operated as a “criminal enterprise” and potentially a Ponzi scheme. This decision will likely empower representatives for the firm’s court-appointed bankruptcy trustee to reclaim funds from investors. For further details, visit Law360.
The trustee assigned to oversee the liquidation of the now-bankrupt electric utility company, Brilliant Energy LLC, has aligned with attorneys from the U.S. Department of Justice in requesting that the bankruptcy clawback proceedings involving the law firm Jackson Walker LLP be transferred to a federal district court. Such a move could be instrumental in ensuring…
“`html In a pivotal week for class action and mass tort attorneys, Amanda Bronstad of Law.com reports that Tom Girardi, founder of Girardi Keese, has been convicted of four counts of wire fraud by a Los Angeles jury on Tuesday. This development marks a significant legal turning point for the high-profile case involving Girardi, who…
In a heated discovery dispute, Jackson Walker LLP has accused the U.S. Trustee’s Office of wanting “everyone to play by the rules except for [itself],” during a recent hearing in Houston. The dispute is intertwined with allegations concerning a former Texas bankruptcy judge’s secretive relationship. Concurrently, the U.S. Trustee has countered that Jackson Walker is…
Thomas V. Girardi, a formerly celebrated figure in the realm of toxic tort litigation, was found guilty of four counts of wire fraud on Tuesday in the Los Angeles federal court. After twelve days of trial, the jury reached a unanimous verdict in just four hours, concluding that Girardi had orchestrated a massive Ponzi scheme…
Foley & Lardner LLP is set to confront legal challenges in Texas as allegations arise that the firm exploited confidential data from a former client for financial gain during bankruptcy proceedings. The Texas Court of Appeals, First District has issued a decision overturning a previous ruling by a Houston trial court, which had dismissed the…
Houston’s chief bankruptcy judge, Eduardo V. Rodriguez, will oversee the deposition of his former colleague, David R. Jones, as part of an investigation into Jones’ relationship with a former Jackson Walker LLP attorney, Elizabeth Freeman. This judicial oversight aims to ensure compliance with judicial regulations as the deposition unfolds. The case is particularly significant as…
Latham & Watkins has fortified its restructuring and special situations practice with the addition of Joe Zujkowski as a partner in its New York office. The firm revealed the new hire on Monday. Zujkowski arrives from Gibson, Dunn & Crutcher, bringing with him a wealth of experience in representing debtors, ad hoc creditor groups, and…
A Justice Department unit has identified three Houston jurists and a prominent Kirkland & Ellis LLP restructuring partner as potential witnesses to a growing ethics debacle involving former bankruptcy judge David R. Jones. The federal bankruptcy judges Eduardo V. Rodriguez, Christopher Lopez, and Marvin Isgur, along with Kirkland partner Joshua Sussberg, have been named as…
A recent ruling by the California Superior Court, San Francisco County, may significantly impact the ongoing legal battles faced by MultiPlan Corp., a prominent data analytics company. The court dismissed a price-fixing case against the company, initiated by the bankruptcy liquidator for Verity Health System of California Inc. The case revolved around accusations that MultiPlan’s…
Judge Milan Smith Jr. of the U.S. Court of Appeals for the Ninth Circuit has highlighted a notable circuit split over the issue of federal preemption in bankruptcy cases. In a recent concurrence, Smith addressed the disagreement among different circuit courts on whether claims against attorneys for alleged abuse of the federal bankruptcy process should…
Almost a year has passed since the public learned that former federal bankruptcy judge David R. Jones was involved in a secret, live-in romantic relationship with a partner at Jackson Walker, a bankruptcy firm actively involved in his Houston court. The implications of this relationship have spurred continuing legal entanglements and intensified scrutiny on the…
A neurologist from Vanderbilt University testified on Wednesday during Tom Girardi’s criminal fraud trial in California federal court, stating that the disbarred attorney likely exaggerated his cognitive problems in late 2020. The testimony comes at a time when Girardi’s law firm was collapsing into bankruptcy amidst mounting legal issues. The neurologist suggested that Girardi believed…
Earlier this week, a new lawsuit filed against Fenwick & West posits that the Biglaw firm’s role as attorney for a cryptocurrency client induced the plaintiff to invest. The plaintiff, Seven Peaks Ventures, invested in Prime Core Technologies, the parent company of crypto company Prime Trust, purchasing 700,000 shares in the Series A funding round,…
Kirkland & Ellis is increasingly turning to New Jersey for high-profile Chapter 11 bankruptcies. The trend raises questions about whether other major law firms will follow. Central to this development is Chief Judge Michael Kaplan, who is credited with fostering a court that is known for its efficiency and effectiveness. The growing reputation of New…
A series of mixed rulings involving former bankruptcy judge David R. Jones and his previously undisclosed relationship with an attorney from Jackson Walker LLP underscore the judiciary’s discomfort with Jones’ ethical transgressions, despite many decisions favoring him. Jones resigned from his post after the relationship was revealed, signaling a significant disruption in the Houston bankruptcy…
Rite Aid Corp. has once again shifted its legal leadership as it moves closer to exiting bankruptcy. Thomas Sabatino Jr., who was brought on roughly a year ago to steer the company through its restructuring process, has departed. In an August 19th securities filing, the company revealed that Christin Bassett has been appointed as the…
A hedge fund manager affiliated with the embattled Indian tech firm Byju’s finds himself in a precarious financial situation, with only $3,000 remaining to fund his legal defense. This disclosure comes amid allegations that the manager, 27-year-old William Morton, assisted Byju’s in concealing $533 million from lenders. As Morton finds himself entangled in legal proceedings,…
The US Court of Appeals for the Fifth Circuit has directed a Texas bankruptcy court to reassess whether former bankruptcy judge David R. Jones, who resigned amid an ethics investigation last year, should have recused himself from a restructuring case. This decision reopens litigation that played a part in Jones’s resignation, stemming from allegations that…
This morning’s docket brings several noteworthy updates from the legal industry, highlighting ethical quandaries and significant legal decisions that resonate within corporate law spheres. In a notable development, Disney has decided to withdraw its controversial motion tying Disney+ usage to mandatory arbitration. This decision marks a significant turn in a wrongful death lawsuit the company…
The recent decision by the US Bankruptcy Court to recognize a decentralized autonomous organization (DAO) as a debtor for the first time marks a pivotal moment in the evolving landscape of decentralized finance (DeFi). This legal precedent was established in the case of Hector DAO, which faced severe financial difficulties earlier this year, leading to…
In a recent development, a Texas bankruptcy judge has curtailed probing questions directed at a Jackson Walker attorney concerning his knowledge of a past romantic relationship between former bankruptcy judge David R. Jones and an ex-partner at the same firm, Elizabeth Freeman. The inquiry took place during a hearing on Jackson Walker’s legal fees for…
Chief U.S. Bankruptcy Judge Edwardo Rodriguez of the Southern District of Texas recently sanctioned former U.S. Bankruptcy Judge David Jones. The sanctions include 7.5 hours of ethics-related continuing legal education, as detailed in the findings. The decision follows accusations that Jones acted in bad faith during an informal interview process. This decision reinforces the judiciary’s…
In a recent legal development, a New Jersey state court ruled in favor of McElroy Deutsch, thereby pausing all ongoing litigation between the prominent law firm and two of its former executives. This suspension includes both the firm’s fraud claims and the discrimination counterclaims levied against it. The decision comes as a related bankruptcy case…