In a recent noteworthy move, Bankruptcy Judge James J. Tancredi has provided a chapter 7 debtor a final opportunity for avoiding imprisonment. The decision arises from adversary proceedings linked to the bankruptcy of a thrice-convicted former stockbroker, known in court records as In re Simone, No. 18-21993 (JJT), 2023 WL 5338676, (Bankr. D. Conn. Aug….
There has been a notable increase in bankruptcy filings this year, as reported by Above the Law. The data, provided by finance industry specialist Epiq Bankruptcy, indicates a continuous upward trend for the past thirteen months. This surge in filings marks a period of financial instability for many businesses, particularly relevant to legal practitioners working…
The U.S. Court of Appeals for the Fourth Circuit recently ruled that state law claims regarding allegedly improper debt collection attempts on a debt discharged in bankruptcy are not preempted by the federal Bankruptcy Code. This decision came from a three-judge panel and offers some important clarifications to legal professionals working in corporate law and…
In an noteworthy ruling on August 24, 2023, The United States Court of Appeals for the Second Circuit upheld a decision from the District Court concluding that syndicated loans are not to be regarded as securities. This decision was part of a securities fraud case sparked by a Chapter 11 bankruptcy trustee, who sought to…
DLA Piper, a multinational law firm, recently announced the appointment of Robert Klyman as the global co-chair, as well as the US co-chair, of its restructuring practice based in Los Angeles. The firm conveyed this in an official announcement issued on Tuesday. Klyman’s career has been marked by providing sound advisories to companies, lenders, acquirers,…
In the second quarter of 2023, several asbestos bankruptcy trusts expanded their approved jobsite lists, enabling compensation for more individuals alleging asbestos-related injuries. This expansion has led to a significant implications for both potential plaintiffs and corporations involved in asbestos litigation. Regrettably, many of these trusts also decreased their payment percentages, as reported by the…
Legal professionals worldwide have closely observed a recent development involving drugmaker Mallinckrodt, who filed for its second bankruptcy in the span of a few months. According to reports by Seward & Kissel LLP on JD Supra, the situation appears to be largely influenced by high interest rates, upcoming settlement payments, and reduced sales. The company…
In an attempt to bolster resolution planning for large banking firms, the FDIC and the Federal Reserve Board have taken a proactive stance. On August 29, these agencies issued a joint press release presenting new rules and guidelines that are currently open for public commentary. A central part of this proposal is to fortify the…
In a recent case, a Minnesota bankruptcy court made a significant ruling that is of particular consequence to legal professionals dealing with franchise law. The court granted Fantastic Sams, a well-known hair salon franchise, a preliminary injunction against a former franchisee. The plaintiff was operating four new hair salons, which the court found to be…
In the competitive and challenging environment of the cannabis industry, a host of complex legal issues arise. Among these, the process of bankruptcy remains fraught with its own unique set of challenges, due in part to marijuana’s still contentious legal status at the federal level in the United States. This environment has driven cannabis businesses…
On August 29, United States financial regulators including the Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) took a significant step towards strengthening the financial stability of major banks. In an announcement, the agencies issued a notice…
The Restructuring Roundup for August 2023 presents a comprehensive monthly review focusing on pertinent commercial litigation and bankruptcy issues. The newsletter encapsulates original content from AGG’s specialised attorneys in Bankruptcy, Creditors’ Rights, & Financial Restructuring. Coupled with previously published articles and news, this curated publication provides valuable insights for legal professionals. With the ever-changing legal…
In a recent court decision that may impact the way corporations manage insolvency procedures, an appeals court has declared that chapter 5 avoidance actions are considered part of a debtor’s bankruptcy estate. These actions can be sold in section 363 sales according to the case of In re Simply Essentials, LLC, No. 22-2011, 2023 U.S….
Recent years have witnessed a surge in businesses facing mass tort claims filing for bankruptcy, primarily due to nonconsensual nondebtor releases. The aim behind this strategy is for Chapter 11 to facilitate an expedited and more budget-friendly resolution as compared to class actions or multi-district litigation. This has been the subject of an elaborative piece…
The First Amendment protects the freedom of speech, even when it pertains to criticizing a public school softball coach. Despite the clear constitutional right, a related case is still in progress casting doubts over the full extent of this freedom. The details of the case and its implications can be reviewed here on Law.com. In…
Drug manufacturer Mallinckrodt Plc’s recent return to bankruptcy, in which it plans to significantly slash payouts to opioid claimants, is raising eyebrows and concerns in the legal industry. This development signals a shift from its initial, overly optimistic predictions when it first filed for Chapter 11. After falling behind in its financial forecasts, Mallinckrodt’s second…
A compromised resolution is in the offing in the case involving a co-founder of distinguished law firm LeClairRyan who is amid mounting tax issues related to the firm’s bankruptcy. After a prior settlement was emphatically dismissed as ‘offensive’ by a Virginia Federal Judge, there’s now prospect of approval for a subdued variation of the deal,…
On Tuesday, an adversary lawsuit filed by the Girardi Keese bankruptcy trustee was dismissed by a California bankruptcy judge. The lawsuit aimed to reclaim $2.8 million, alleged to have been disbursed to BizJet, an aircraft maintenance company. The suit alleges these payments were part of the disgraced law firm’s fraudulent scheme to dupe creditors. Despite…
Erika Girardi, also known as Erika Jayne and wife of the disbarred and indicted plaintiffs’ lawyer Thomas Girardi, along with American Express and the Secret Service, have been accused in recent litigation of conspiring to ruin a Hollywood costumer by falsely accusing him of committing wire fraud. Bloomberg Law reports that the lawsuit was lodged…
In a recent update, a federal judge in Virginia sanctioned a settlement agreement permitting Gary LeClair, co-founder of now-dissolved law firm LeClairRyan, a $1.6 million unsecured claim in the firm’s ongoing bankruptcy proceedings. This decision followed earlier contentions in which the same judge, as well as a bankruptcy judge, intensely criticized LeClair and a bankruptcy…
Sacks Weston LLC, a Philadelphia-based plaintiff firm, has filed for bankruptcy protection in Pennsylvania following a scandal in which two of its former attorneys pleaded guilty to secretly resolving cases and misappropriating the proceeds. This move comes after months of financial struggles within the firm. The case has drawn the attention of the wider legal…
In a recent development, a bankruptcy court ruling has determined that specific portions of employer liability in California Private Attorneys General Act (PAGA) actions can be discharged in bankruptcy. As stated by Fox Rothschild LLP, those specific portions include the 25% share of PAGA penalties designated to be paid to aggrieved employees, as well as…
The relationship between a president and a justice can significantly impact the course of law within a country. This fascinating dynamic is evident through the examination of securities law at the Supreme Court, largely shaped by President Franklin Delano Roosevelt and Justice Lewis Powell. When we consider the pivotal work of the Supreme Court, constitutional…
A recent study printed on JD Supra indicated a decline in the number of diagnoses of asbestos-induced mesothelioma over the past forty years. This form of cancer, often attributed to asbestos exposure, has fueled years of litigation and numerous companies seeking bankruptcy protection. The authors of “Chronological trends in the causation of malignant mesothelioma: Fiber…
Leading law firm Thompson Hine, in a move to bolster its litigation team, has welcomed Ryan Blackney as a litigation partner in its Chicago office, as reported by Bloomberg Law. This strategic addition underscores the firm’s commitment to offer its clients the best legal talent in the industry. Blackney comes with extensive experience in complex…