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,…
A New York-based law firm has filed for Chapter 11 bankruptcy protection, marking a significant development in a continuing legal saga surrounding allegations of a hostile takeover. The firm took this step shortly after creditors initiated involuntary Chapter 7 liquidation petitions. This dramatic move comes more than a month after the firm’s founder publicly accused…
Fossil Group Inc., a global designer and manufacturer of watches and lifestyle products, has effectively managed to avoid the negative connotations associated with a Chapter 11 bankruptcy by executing a cross-border restructuring plan. This restructuring allows Fossil to stabilize its financial foundation without pursuing formal bankruptcy protection, a path increasingly considered by multinational corporations facing…
The recent decision by a federal appeals court to deny $21 million in legal fees claimed by law firms representing abuse victims in the Boy Scouts of America bankruptcy case underscores the complex legal landscape surrounding mass tort litigations and bankruptcy proceedings. The court’s ruling indicates a strict interpretation of fee arrangements within the unique…
Warner Bros. has formally requested that a Delaware bankruptcy judge halt the $18.5 million sale of derivative film rights held by its bankrupt former business partner, Village Roadshow Entertainment Group. This move signals Warner Bros.’ intent to challenge the transaction, which involves the rights to produce sequels, remakes, or prequels to movies co-produced with Village…
WeightWatchers, officially known as WW International Inc., has undergone significant transformations in 2025, marked by a comprehensive financial restructuring and strategic leadership appointments. Central to these developments is Jacqueline Cooke, who assumed the role of General Counsel and Corporate Secretary in March 2024. Cooke, formerly the legal head at 23andMe, brings a wealth of experience…
The landscape of Chapter 11 bankruptcy proceedings is fraught with complexities, one of which is the risk of administrative insolvency that vendors must navigate carefully. Administrative insolvency occurs when a debtor’s assets are insufficient to cover the costs and expenses incurred during the Chapter 11 process, leaving administrative claimants, including vendors, with unpaid balances. Vendors,…