New Orleans-based law firm McGlinchey Stafford PLLC has filed for Chapter 7 bankruptcy, marking the end of a firm that has operated for more than fifty years. The filing reveals liabilities exceeding $10 million, accrued through debts owed to former staff and attorneys, workplace vendors, financial institutions, and other creditors. This move follows the firm’s…
In a notable development within the legal sector, five attorneys from FBT Gibbons have transitioned to Connell Foley, contributing to the creation of a new bankruptcy practice within the firm. This move happens in the context of FBT Gibbons’ recent merger, which one departing attorney described as a combination where “not all the pieces are…
Flavored Air Co., a Canadian company specializing in flavored air devices, has turned to the U.S. Bankruptcy Court in Nevada, seeking recognition of its ongoing insolvency proceedings in Canada under Chapter 15 of the U.S. Bankruptcy Code. This move comes in response to the company’s financial difficulties arising from a settlement linked to a U.S….
Cooley LLP, a prominent law firm known for its work with technology and venture capital clients, is facing a lawsuit from a venture fund alleging that the firm concealed a $76 million Ethereum liability while assisting a cryptocurrency company in raising funds. This alleged concealment is claimed to have contributed to the company’s subsequent collapse…
“`html In a complex development within legal circles, former bankruptcy counsel for Rhodium Enterprises is actively pursuing sanctions over a contentious fee dispute. The motion for sanctions, filed in Delaware, involves a demand for compensation related to the efforts and expenses incurred during Rhodium’s Chapter 11 case. This request spotlights ongoing tensions in the negotiation…
At least 50 Moroccan companies and hundreds of workers have not received payment for renovation and maintenance work totaling approximately $5 million at a palace in Tangier owned by Saudi Prince Turki bin Mohammed bin Fahd bin Abdulaziz Al Saud, according to Human Rights Watch (HRW). ([hrw.org](https://www.hrw.org/news/2026/02/11/workers-unpaid-for-renovating-saudi-princes-tangier-palace?utm_source=openai)) In 2023, the prince’s office contracted two Saudi…
A recent decision by a split panel of the Sixth Circuit highlights the critical importance of timing in bankruptcy proceedings. The panel affirmed two lower court rulings from federal judges in Michigan, which denied a Chapter 13 debtor’s motion to dismiss his bankruptcy case. The motion was filed just 84 minutes after the case had…
The ongoing legal battles involving the Boy Scouts of America have taken a new turn as abuse claimants enlist Dechert LLP to counter the strategies of a prominent mass tort firm. This tactical shift highlights the complex dynamics of one of the most extensive bankruptcy cases related to abuse claims in U.S. history. The appointment…
In the evolving landscape of artificial intelligence, companies embedding AI into essential functions are facing a critical challenge: vendor bankruptcy. As AI solutions become intertwined with corporate operations, ensuring continued access to licensed intellectual property (IP) amidst a vendor’s financial collapse is paramount. This scenario isn’t merely a hypothetical exercise. As discussed in recent analyses,…
In a pivotal moment for litigation surrounding Johnson & Johnson’s talcum powder, the Beasley Allen Law Firm’s involvement faced a potential roadblock. The firm is appealing a New Jersey state court order that disqualified it from representing hundreds of women who attribute their ovarian cancer to the company’s product. A decision to pause the disqualification…
In a recent development, a Delaware bankruptcy court has been asked to consider the fate of a biopic screenplay agreement centered on golfing legend Jack Nicklaus. A film production company is urging the court to keep the screenplay deal intact, regardless of any outcomes related to bidding for brand licensing rights associated with Nicklaus. The…
The U.S. Court of Appeals for the Fifth Circuit recently delivered a significant ruling that shields the law firm Jones Walker LLP from liability in a complex bankruptcy case involving the Archdiocese of New Orleans. This decision highlights intricate aspects of legal protection for law firms in bankruptcy proceedings and reinforces the roles of legal…
Legal malpractice claim assignability remains a contentious issue that continues to divide state courts across the United States. The core of the debate centers on whether such claims can be transferred to third parties, a concept that some jurisdictions resist on public policy grounds. Most jurisdictions maintain that allowing the assignment of legal malpractice claims…
Altar’d State, a faith-based clothing retailer, has made a strategic move by setting an opening bid of $7 million for the intellectual property of Francesca’s, a bankrupt women’s clothing brand, as disclosed in a recent hearing before a New Jersey bankruptcy judge. This development marks a significant step in the ongoing proceedings of Francesca’s financial…
In a recent legislative move, former President Donald Trump signed into law a bill that extends the tenure of temporary bankruptcy judgeships while simultaneously raising the fees associated with certain bankruptcy filings. This legislation, the Bankruptcy Judgeship Act of 2019, addresses the critical need for continued judicial resources in light of fluctuating bankruptcy filings across…
In a significant development within the sports licensing landscape, brand manager Iconix International has positioned itself as a key player by submitting a $50 million baseline bid for the licensing rights associated with golf legend Jack Nicklaus’ iconic name. This bid sets the stage for a Chapter 11 auction process, as communicated to a Delaware…
The Oakland Diocese, currently navigating the complexities of bankruptcy, faced a significant legal setback as it was denied a request to postpone payment of attorney fees. The diocese, which filed for Chapter 11 bankruptcy earlier this year, aimed to delay these payments amid ongoing financial challenges stemming from numerous claims of sexual abuse against clergy…
The recent bankruptcy appeal involving Nikola Corporation poses intriguing questions regarding the extent of presidential pardons, particularly those issued during Donald Trump’s administration. This legal quandary centers on whether a presidential pardon can absolve a corporate executive from obligations within bankruptcy proceedings. This case is highly anticipated, given the increasing scrutiny of presidential pardons, especially…
In a recent case that underscores the challenges of automated content management systems, a Denver-based bankruptcy law firm has taken legal action against Google after the tech giant removed the firm’s business profile without prior notice. According to the firm, this action followed the appearance of an AI-generated summary of a supposed false review, which…
ArentFox Schiff LLP has appointed a seasoned bankruptcy attorney to take the helm of its Los Angeles office, signaling a strategic emphasis on bolstering its insolvency capabilities in the region. This move comes as the legal landscape in Los Angeles continues to witness substantial activity in bankruptcy and restructuring, aligning with broader national trends. The…
In a significant legal development, Fenwick & West LLP has reached a settlement with victims of the collapsed cryptocurrency exchange FTX, who had accused the law firm of abetting the fraudulent activities of its founder, Sam Bankman-Fried. The victims alleged that the firm’s advice and actions facilitated the misappropriation of their investments. According to the…
In a strategic move that underscores a shifting landscape in the legal industry’s bankruptcy practice, Ropes & Gray has made a notable acquisition by hiring a prominent team from Fried, Frank, Harris, Shriver & Jacobson. This team includes seasoned experts crucial in navigating the complexities of financial restructuring cases. The latest developments have been detailed…
The growing deluge of mass tort cases in bankruptcy courts is prompting calls for the appointment of special masters to streamline proceedings and ensure efficiency. This demand comes as courts grapple with complex cases involving large numbers of claims and intricate legal issues. Mass tort cases, which often involve thousands of claimants affected by defective…
The U.S. Supreme Court is scheduled to hear oral arguments on April 1 in Trump v. Barbara, a case that challenges former President Donald Trump’s executive order to curb birthright citizenship in the United States. This order, issued on January 20, 2025, sought to deny automatic citizenship to children born in the U.S. if their…
Recent decisions by the United States Court of Appeals for the Fifth Circuit are significantly impacting the landscape for creditors seeking equitable treatment in bankruptcy proceedings. These rulings aim to standardize practices and ensure a balanced approach, mitigating previous discrepancies that often favored debtors. The Fifth Circuit’s recent decisions reflect a shift towards harmonizing outcomes…