Lawyers from two of the most prestigious law firms in the country, Weil Gotshal and Kirkland & Ellis, were very busy in February, involved in a surge of bankruptcy filings. According to a report from Epiq Bankruptcy and the American Bankruptcy Institute, commercial Chapter 11 bankruptcy filings rose by 118% in February 2024 over February…
Florida jurors are set to commence deliberations in the first ovarian talc trial since Johnson & Johnson’s (J&J) bankruptcy filings. This case marks a significant milestone as it’s the initial trial in Florida that centers around allegations that asbestos-contaminated talc in J&J’s products led to ovarian cancer in patients. During the final stages of the…
The New York Attorney General’s Office announced last Friday that a jury found current and former National Rifle Association (NRA) executives liable for corruption and financial misconduct. After a six-week trial, the jury determined that NRA executives Wayne LaPierre and Wilson “Woody” Phillips used NRA funds for personal gain. These individuals also reportedly failed to…
In an announcement by Young Conaway Stargatt & Taylor, a new office in Charlotte, North Carolina, has been inaugurated. The new establishment, announced on a Thursday, is a significant expansion of the firm’s physical presence. The freshly minted office will offer legal services within the scope of bankruptcy and restructuring, corporate and intellectual property litigation,…
In a remarkable demonstration of the complexity and cost associated with high-tier corporate litigation, Paul Hastings LLP, along with six other law firms and professional service providers, has filed an application to claim fees and costs exceeding $9.9 million. This claim is stemming from the ongoing Chapter 11 bankruptcy case of Chinese exile Ho Wan…
Cano Health, the leading senior-focused primary care provider, which went public through a $4.4 billion SPAC merger in 2021, filed for Chapter 11 bankruptcy following a turbulent 2023. The news did not come as a surprise to industry observers, who attributed the bankruptcy to a combination of mismanagement, inappropriate growth strategy, and poor market selection….
Alex Spiro, known for his legal accomplishments with billionaire Elon Musk during the takeover of Twitter Inc., is now assisting Adam Neumann in his attempt to purchase back WeWork Inc. The seasoned lawyer, a partner at Quinn Emanuel Urquhart & Sullivan, began as Neumann’s counsel towards the end of 2023, as per an informed person….
In a recent legal development, Rudy Giuliani, former New York City Mayor and personal attorney to ex-President Donald Trump, has filed for Chapter 11 bankruptcy after two Georgia poll workers were given approval to begin collection of a decisive $148 million defamation judgment against him. Giuliani’s choice of a Chapter 11 filing, often employed by…
The recent spate of liability management transactions has curtailed the quantity and quality of Chapter 11 bankruptcy filings in 2023. Although these filings have seen a slight increase when compared to 2022, they still fall short of the tally during the pre-pandemic period. The surge in liability management transactions can be attributed to loose restrictive…
In recent developments in the bankruptcy case of data center provider Cyxtera Technologies Inc., it has come to light that law firms and professional advisors involved in the case have submitted final fee applications amounting to over $23 million. This is inclusive of the legal fee request made by Kirkland & Ellis LLP, which stands…
For the legal professionals keenly following the FTX Group’s Chapter 11 bankruptcy case, a noteworthy development arose last Friday. The Third Circuit reversed a Delaware judge’s denial of an external investigation request, ruling that a probe into the FTX Group’s affairs is indeed compulsory under the US bankruptcy code, and an impartial examiner must be…
In a recent split decision, the Virginia Court of Appeals affirmed the dismissal of a legal malpractice action involving a Chapter 11 bankruptcy petition. The case was deemed to be time-barred and it was determined that the attorney in question did not provide continued services following the conversion into a Chapter 7 liquidation. The case…
The bankruptcy landscape in 2023 saw significant domination by repeat Chapter 11 filers, marking it as one of the largest years for such cases. As detailed in a report by Bloomberg Industry Group, many of these businesses had previously sought protection under Chapter 11, indicating that they were unable to successfully implement necessary adjustments or…
Throughout 2023, bankruptcy judges found themselves in the unusual role of becoming crypto regulators. The collapse of several key cryptocurrency exchanges left these legal experts in a position where they were enhancing the domain of regulators, surpassing the proceedings of prosecutors and most importantly, grappling with pivotal questions regarding the legality of digital currencies, according…
Rudy Giuliani, former personal lawyer to President Donald Trump, has filed for Chapter 11 protection, as reported by Rick Archer on Law360. The filing, submitted in a New York bankruptcy court, comes a day after two Georgia poll workers secured court authorization to pursue Giuliani for a debt of $148 million, owed due to false…
The ad hoc Coalition of Abused Scouts for Justice is steadfast in its pursuit of a $21 million request for fees. The fee request arises from the Boy Scouts of America’s Chapter 11 case, where the coalition is representing a group of victims. Most recently, they have filed an appeal against a Delaware bankruptcy judge’s…
Legal heavyweight Latham & Watkins LLP is currently in the process of billing a significant sum of $5.7 million for approximately three months’ worth of work. Their client is none other than Mallinckrodt PLC, a global biopharmaceutical company, presently navigating its second Chapter 11 bankruptcy in the short span of three years. Latham & Watkins…
Embracing a career in health care can be a significantly wise choice, especially for new Chapter 11 bankruptcy attorneys. This decision although seemingly unconventional may pave the way for developing specialized expertise and a stronger professional foothold. Not all lawyers have the flexibility to choose their cases, especially early in their career. However, demonstrating an…
In an unexpected turn of events, office-sharing giant WeWork, Inc. and 516 of its affiliated companies have filed for Chapter 11 bankruptcy protection. The submissions, made voluntarily, were filed on November 6, 2023, with the United States Bankruptcy Court for the District of New Jersey. A Chapter 11 filing represents a form of bankruptcy that…
WeWork Inc., once valued at $47 billion, along with 517 of its affiliates, has filed for Chapter 11 bankruptcy. A notable downfall was seen this year as the company’s Class A Common Stock reported a staggering drop of over 98 percent. The news of the bankruptcy filings has prompted varying discussions among legal professionals, as…
In a significant development in the corporate sector, workspace pioneer WeWork has filed for bankruptcy under Chapter 11, following a challenging period since its 2019 IPO that did not meet expectations. Law firm Kirkland & Ellis is reported to be leading the proceedings. This news raises pertinent concerns regarding the current volatile market conditions for…
In the rapidly evolving world of corporate law, significant events continue to shape and redefine the landscape. A series of recent events served a reminder of the uncertain and high stakes world which legal professionals grapple with daily. Take, for instance, WeWork; once hailed as a tech industry superstar, is now on a startlingly new…
Almost four years after Virginia-based LeClairRyan’s executive team promoted tax benefits as a strategic move to offset heavy debts and increase shareholder returns, a remaining group of the firm’s former equity shareholders are grappling with a potentially significant, yet bafflingly vague, tax liability. Originating from the company’s previous proposition to pair with legal mammoth UnitedLex…
Katherine Wawrzyniak, a former federal prosecutor, has recently been announced as a new partner of Goodwin Procter in its San Francisco office. Wawrzyniak’s career has put her in the lead of prominent government cases such as the prosecution of Anthony Levandowski, the former Google engineer, and Yevgeniy Nukulin, a Russian hacker. Prior to this, Wawrzyniak…
The world of business and finance has seen a significant uptick in bankruptcy filings, marked by an increase of 40% over the last year alone in Chapter 11 filings. Specialists attribute this rise to a combination of high interest rates and increased financial pressure across multiple industries. Some of the hardest hit sectors include crypto,…