Character Technologies, a notable player in the realm of artificial intelligence entertainment platforms, has initiated Chapter 11 bankruptcy proceedings in Delaware. The company faces a significant financial burden with debts exceeding $50 million, primarily driven by the escalating costs of development, according to a report from Law360. Amid this financial turmoil, Disney has emerged as…
Galindo Law, a Houston-based personal injury firm, has filed for Chapter 11 bankruptcy after a legal dispute with a marketing company escalated over fees related to mass tort litigation involving water contamination at Marine Corps Base Camp Lejeune. The firm reported liabilities exceeding $50 million, as reported by this coverage. The controversy centers on a…
A New York bankruptcy judge has dismissed the Chapter 11 filings by two commercial real estate law firms associated with Mark J. Nussbaum. The court found these petitions were filed in bad faith, determining that they belonged in a state-level assignment for the benefit of creditors process in New York, rather than federal bankruptcy court…
Rebel Creamery, a known player in the keto-friendly ice cream market, has filed for Chapter 11 bankruptcy protection in Utah. This development follows a significant financial setback from a trademark lawsuit brought by Van Leeuwen, a competing ice cream company. The legal dispute culminated in a $24 million judgment against Rebel Creamery, a financial blow…
Davis Polk & Wardwell LLP has initiated legal proceedings against Oasis Petroleum Inc., seeking $3.2 million in unpaid legal fees. The lawsuit, filed in New York state court, stems from services rendered during Oasis’s 2020 bankruptcy proceedings. According to the complaint, Oasis allegedly failed to settle invoices for legal work that the firm provided during…
Finch Therapeutics, a developer specializing in microbiome treatments, received conditional approval from a Delaware bankruptcy judge to proceed with soliciting creditor votes on its Chapter 11 plan. This decision marks a significant step forward in the company’s restructuring efforts under bankruptcy protection. The conditional approval of the disclosure statement, as reported by Law360, enables Finch…
In recent developments within the bankruptcy proceedings of the cryptocurrency lending platform Celsius Network, a lawsuit filed by the company’s former general counsel against its top executives has been dismissed. The legal action stemmed from allegations of misconduct and breaches of fiduciary duties by the company’s leadership prior to its Chapter 11 bankruptcy filing. This…
The San Francisco Catholic archdiocese has reached a $395 million settlement agreement with more than 500 survivors of childhood sexual abuse. This significant development follows years of legal challenges and accusations against the church’s handling of abuse cases, underscoring widespread efforts for accountability and reform within the institution. According to the terms of the settlement,…
In a recent development involving Sorrento Therapeutics, a federal judge in California has paused litigation brought by the company’s shareholders. This litigation, centered on racketeering allegations, has hit a roadblock following a Texas bankruptcy court’s decision that the shareholders lack the standing required to pursue these claims. The racketeering allegations revolve around a former attorney…
The recent resolution of Purdue Pharma’s bankruptcy case marks a notable development in the legal landscape surrounding the opioid crisis. A federal judge has approved a settlement plan, allowing Purdue Pharma to exit bankruptcy by providing up to $6 billion to aid communities affected by the opioid epidemic. This decision, available for review on Bloomberg…
In the wake of significant legal turmoil, two commercial real estate law firms led by Mark J. Nussbaum have filed for Chapter 11 bankruptcy protection in New York. The filings are overshadowed by allegations that the firms engaged in a Ponzi-like “hard money lending” scheme, with disputed unsecured claims escalating to at least $353 million….
In a recent development in the bankruptcy proceedings of the company behind Bang Energy drinks, a liquidating trust has petitioned a Florida federal bankruptcy judge to find the former CEO liable for breaching his fiduciary duty. The trust alleges that the executive’s actions, particularly his violation of a trademark settlement that resulted in a multimillion-dollar…
In a significant legal development, shareholders of the now-defunct biopharmaceutical company Sorrento Therapeutics have initiated a lawsuit against law firm Jackson Walker LLP and Sorrento’s former CEO. The lawsuit, filed under the Racketeer Influenced and Corrupt Organizations Act (RICO), seeks over $100 million in damages, accusing the parties of conspiring to initiate an unnecessary Chapter…
Sorrento Therapeutics Inc. shareholders have filed a lawsuit against the company’s CEO and the law firm Jackson Walker LLP over allegations of misconduct related to the company’s bankruptcy proceedings. The legal action, recently initiated, accuses Sorrento’s CEO, Henry Ji, and the Texas-based law firm of breaching fiduciary duties, which the shareholders claim led to financial…
Finch Therapeutics, a developer of microbiome treatments, has proposed that a Chapter 11 bankruptcy filing is the best route for selling its assets. During a hearing with a Delaware bankruptcy judge, Finch argued that its decision stemmed from a lack of revenue and challenges in collecting on a patent judgment, despite not having any secured…
BlockFills, a prominent digital asset trading firm based in Chicago, has filed for Chapter 11 bankruptcy protection. The company reported its assets and liabilities each ranging between $100 million and $500 million, and estimates it has between 200 and 999 creditors, according to a recent report. This move highlights ongoing turbulence in the digital asset…
The legal landscape surrounding the bankruptcy proceedings of Yellow Corp. has experienced further complication, as the International Brotherhood of Teamsters formally objected to a significant legal fee request. The objection targets a $12 million fee sought by the law firm Kasowitz Benson Torres LLP, which represents Yellow in its Chapter 11 case. The Teamsters argue…
In a significant development, a Florida federal judge has imposed sanctions on a businessman and his legal representative for their involvement in filing fraudulent documents amid a contentious $500 million ownership dispute over the Miss America pageant. The sanctions were announced after it was discovered that the documents in question were used to initiate a…
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 U.S. Congress has passed a bill that seeks to extend the tenure of certain temporary bankruptcy judges and increase various court fees, aiming for President Trump’s approval to become law. This legislative move reflects the growing demand for judges in bankruptcy courts, particularly in regions where economic distress is prevalent. The bill, significant for…
Jack Nicklaus, the legendary golfer, has recently turned his attention to the courtroom as he challenges the Chapter 11 bankruptcy proceedings of GBI Services, a company known for its specialized sporting gear and golf course design. Nicklaus is contesting the company’s proposed financing and asset sale procedures, arguing that they aim to offload valuable intellectual…
Bullivant Houser Bailey PC, a law firm with over 80 years of history, has filed for Chapter 11 bankruptcy in the Northern District of California. This move follows the firm’s decision to cease operations on November 1, 2025, and is intended to facilitate an orderly liquidation of its assets. The firm’s closure affected its offices…
Quinn Emanuel Urquhart & Sullivan LLP is engaged in a legal battle to recover approximately $30 million in fees from its former client, Desktop Metal Inc., following the enforcement of a merger agreement with Nano Dimension Ltd. The dispute centers on whether the case should be adjudicated in Massachusetts state court or transferred to the…
A Florida federal judge has granted the law firm Carlton Fields permission to withdraw from representing the plaintiffs in the ongoing legal battle over the ownership of the Miss America pageant. The firm cited “irreconcilable differences” as the reason for its departure. This development marks a significant shift in the protracted dispute between Robin Fleming,…
The evolving landscape of Chapter 11 bankruptcy proceedings for U.S. corporations is placing renewed emphasis on limiting exposure to legacy litigation. Recent case law underscores the importance of these protective measures for businesses seeking financial restructuring. One notable development involves the increased scrutiny on corporations using Chapter 11 to manage liabilities stemming from historic claims,…