Chapter 11 Bankruptcy – Legal News Feed

Law360

Galindo Law Files for Chapter 11: Examining the Financial Strain of Mass Tort Litigation in the Wake of Camp Lejeune Water Contamination Disputes

Pieter Gunst2 days ago03 mins

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…

Law360

Federal Court Dismisses Misuse of Chapter 11 by Real Estate Law Firms, Emphasizing Good Faith Requirement

Pieter Gunst1 week ago04 mins

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…

Law360

Rebel Creamery Seeks Chapter 11 Protection After Losing $24 Million Trademark Suit

Pieter Gunst1 week ago03 mins

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…

Bloomberg Law

Davis Polk Sues Oasis Petroleum for $3.2 Million in Unpaid Bankruptcy Legal Fees

Pieter Gunst2 weeks ago02 mins

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…

Law360

Finch Therapeutics Receives Green Light for Creditor Voting on Chapter 11 Plan, Signaling Key Restructuring Progress

Pieter Gunst1 month ago03 mins

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…

Law360

Celsius Network’s Legal Battle: Court Dismisses Lawsuit Against Executives Amid Bankruptcy Proceedings

Pieter Gunst2 months ago03 mins

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…

Jurist

San Francisco Archdiocese Reaches $395 Million Settlement with Sexual Abuse Survivors

Pieter Gunst2 months ago03 mins

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,…

Law360

Sorrento Therapeutics Shareholder Lawsuit Halted Amid Bankruptcy Court Standing Ruling

Pieter Gunst2 months ago03 mins

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…

Bloomberg Law

“Purdue Pharma Bankruptcy Settlement Signals Major Shift in Opioid Crisis Accountability”

Pieter Gunst4 months ago03 mins

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…

Law360

Commercial Real Estate Law Firms File for Bankruptcy Amid Alleged Ponzi Schemes Totalling $353 Million

Pieter Gunst4 months ago03 mins

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….

Law360

Bang Energy Bankruptcy Case Highlights CEO’s Alleged Fiduciary Breach Amidst Financial Turmoil

Pieter Gunst4 months ago03 mins

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…

Law360

Shareholders Sue Sorrento Therapeutics’ Former CEO and Law Firm, Citing RICO Violations Over Bankruptcy Maneuvering

Pieter Gunst5 months ago03 mins

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…

Bloomberg Law

Sorrento Therapeutics Shareholders Sue CEO and Law Firm Over Bankruptcy Misconduct Allegations

Pieter Gunst5 months ago02 mins

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…

Law360

Finch Therapeutics Seeks Chapter 11 Bankruptcy to Navigate Financial Challenges in Micobiome Industry

Pieter Gunst5 months ago03 mins

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…

Law.com

BlockFills Files for Chapter 11 Bankruptcy Amid Digital Asset Sector Challenges

Pieter Gunst5 months ago02 mins

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…

Bloomberg Law

Teamsters Challenge $12 Million Legal Fee in Yellow Corp Bankruptcy Case as Financial Pressures Mount

Pieter Gunst6 months ago03 mins

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…

Law360

Florida Judge Sanctions Businessman for Fraudulent Filings in Miss America Ownership Dispute

Pieter Gunst6 months ago03 mins

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…

Bloomberg Law

Oakland Diocese Bankruptcy: Judge Denies Delay in Attorney Fee Payments Amid Legal Challenges

Pieter Gunst7 months ago03 mins

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…

Bloomberg Law

U.S. Congress Passes Bill to Extend Bankruptcy Judgeships and Increase Court Fees, Awaiting Presidential Approval

Pieter Gunst8 months ago04 mins

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…

Law360

Jack Nicklaus Challenges Bankruptcy Court Over Intellectual Property Dispute in GBI Services Case

Pieter Gunst8 months ago03 mins

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…

Law360

Bullivant Houser Bailey PC Files for Chapter 11 Bankruptcy Amid Law Firm Industry Challenges

Pieter Gunst8 months ago02 mins

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…

Law360

Quinn Emanuel Battles Nano Dimension in $30 Million Fee Dispute Amid Desktop Metal Bankruptcy

Pieter Gunst8 months ago04 mins

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…

Law360

Florida Judge Permits Law Firm’s Withdrawal Amid Miss America Ownership Dispute

Pieter Gunst9 months ago03 mins

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,…

Bloomberg Law

Navigating Chapter 11: Balancing Corporate Restructuring and Legal Accountability in Bankruptcy Proceedings

Pieter Gunst9 months ago04 mins

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,…

Law360

Law Firm Bankruptcy Filing Highlights Growing Financial Vulnerabilities in Legal Sector

Pieter Gunst9 months ago03 mins

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…