Mid Cap

  • June 20, 2024

    Cancer Test Company DermTech Gets 1st Day Approvals

    Bankrupt California-based dermatologic test maker DermTech Inc. won approval on Thursday for a series of first-day Chapter 11 motions, including to continue paying providers of electricity, internet and other utilities that power its molecular laboratory.

  • June 20, 2024

    Spinal Implant Maker Can Liquidate Under Ch. 11 Plan

    A Delaware bankruptcy judge agreed Thursday to approve the Chapter 11 liquidation and wind-down plan of biotechnology developer InVivo, which reported it landed a buyer for its spinal cord implant technology following an unsuccessful bankruptcy auction.

  • June 20, 2024

    Ex-ITT Students Net $12M Win In Predatory Lending Scheme

    A California federal judge has ordered loan servicer Vervent Inc. to pay $12 million to ex-students of bankrupt for-profit college ITT Education Services Inc. for Vervent's role in an alleged predatory lending scheme for ITT's benefit, finding it was appropriate to triple a $4 million jury award.

  • June 20, 2024

    Boies Schiller Tapped To Represent Ex-Judge In Romance Suit

    A former Texas bankruptcy judge has brought on Boies Schiller Flexner LLP attorneys to defend him against a racketeering lawsuit from a barge business over his undisclosed romantic relationship with a then-Jackson Walker LLP attorney involved in the company's bankruptcy case.

  • June 20, 2024

    US Trustee Says Bittrex Still Owes Sanctioned Creditors

    The U.S. Trustee asked a Delaware judge not to close the Chapter 11 case of crypto exchange Bittrex Inc., arguing that the estate must first get government permission to settle up with creditors in countries under U.S. sanctions.

  • June 18, 2024

    Judge Skeptical Of Houston Developer's $2M DIP Bid In Ch. 11

    The insolvent developer of an almost-finished apartment building in Houston hit a hiccup Tuesday during its first-day hearing in a Texas bankruptcy court, where a judge indicated the company did not present enough evidence to support a nearly $2 million debtor-in-possession package from an affiliate of its subordinate lender.

  • June 18, 2024

    Judge Will OK Disclosures For 3 Plans In Eletson Ch. 11

    A New York bankruptcy judge said Tuesday he will approve disclosure statements detailing three competing Chapter 11 plans proposed in the bankruptcy of shipping company Eletson Holdings Inc. after some revisions, overruling overlapping objections claiming the statements didn't offer adequate information.

  • June 18, 2024

    Biotech Co. NanoString Gets OK On Ch. 11 Wind Down Plan

    NanoString Technologies Inc., a Seattle-based maker of gene analysis technology, can use proceeds from the $393 million sale of its business to repay nearly all creditors in full after a Delaware bankruptcy judge Tuesday approved its Chapter 11 plan.

  • June 18, 2024

    Aircraft Co. Icon's Ch. 11 Sale Cleared With Higher Price

    Light-sport aircraft producer Icon received a Delaware bankruptcy court's approval Tuesday for a nearly $15.8 million sale of its assets after securing an agreement to increase the price by $250,000, just hours before a hearing on the transaction.

  • June 18, 2024

    Rite Aid, SVB Affiliates Among Top 2024 Ch. 11 Sales So Far

    Branches of Rite Aid and Silicon Valley Bank, technology and biotech firms and a discount store chain were among the companies that attracted top dollar in the Chapter 11 auctions held during the first half of 2024.

  • June 18, 2024

    San Diego Diocese ReEnters Ch. 11 Over Sex Abuse Claims

    The Roman Catholic Diocese of San Diego has reentered Chapter 11 in a California bankruptcy court, saying it is facing more than $100 million in liabilities from more than 450 new sexual abuse claims filed in recent years.

  • June 18, 2024

    Kristen Bell's Baby Co. Gets OK For Ch. 11 Plan

    A Delaware bankruptcy judge on Tuesday confirmed the Chapter 11 plan for Unconditional Love Inc., the baby-product company founded by actress Kristen Bell that does business as Hello Bello, as it prepares to wind down its business.

  • June 18, 2024

    Cancer Test Company DermTech Hits Ch. 11, Seeking Sale

    California-based dermatologic test maker DermTech Inc. hit Chapter 11 Tuesday in Delaware and said it would be laying off about 20% of its workforce as it seeks to sell its assets.

  • June 18, 2024

    Electric Vehicle Startup Fisker Hits Ch. 11 With Sale Plans

    Electric vehicle company Fisker Group Inc. has petitioned for Chapter 11 protection in Delaware bankruptcy court with more than $100 million of debt, months after the collapse of a potential partnership with a major automaker imperiled the startup's attempts to raise new financing.

  • June 17, 2024

    Cybersecurity Co. Appgate Gets OK For Prepack Ch. 11 Plan

    A Delaware bankruptcy judge said Monday he would confirm network security solutions provider Appgate Inc.'s prepackaged Chapter 11 plan, and overruled an objection from the U.S. Trustee's Office to the plan's release opt-out form for equity interest holders.

  • June 17, 2024

    Creditors Say Giuliani Is 'Shrewd' And Needs Ch. 11 Trustee

    Rudy Giuliani's creditors made their argument to a New York judge on Monday about why they felt he should be stripped of control of his bankruptcy case, disparaging his motives, missing financial information and ability to stick to a budget.

  • June 17, 2024

    SEC Alleges Texas Man Offered Virgin Sham $200M 'Lifeline'

    Securities regulators sued a venture capitalist and his investment firm in Texas federal court Monday, accusing the firm of making a bogus offer to invest $200 million into Virgin Orbit last year despite having less than $1 in its bank account and causing stock prices to swell before plummeting when the deal collapsed.

  • June 17, 2024

    Dutch Insurer Says Record Clear To Affirm $160M Arbitration

    A Dutch insurer is pushing a North Carolina federal judge to confirm a €150 million (roughly $160 million) arbitration award against insurance mogul Greg Lindberg and his companies, citing a recent order in which the court acknowledged the award as binding.

  • June 17, 2024

    Ex-Stimwave CEO Gets 6 Years For Dummy Implant Scheme

    The founder and former CEO of Stimwave Technologies was sentenced to six years in prison Monday after tearfully proclaiming her innocence to healthcare fraud charges, with a Manhattan federal judge saying it's "sad" the defendant doesn't recognize the harm she inflicted by selling nonfunctional pain management device components.

  • June 17, 2024

    NY Archdiocese Wants Abuse Coverage Suit Tossed

    The Archdiocese of New York sought dismissal of Chubb's bid to evade coverage of over 1,700 underlying sexual abuse claims brought under the Child Victims Act, filing counterclaims with a state court alleging that the carrier has wrongfully refused coverage and must indemnify the organization in the underlying claims.

  • June 17, 2024

    Rubio's Taco Chain Faces WARN Act Suit Over Layoffs

    Rubio's Coastal Grill, a fast-casual restaurant chain and a Chapter 11 debtor, was hit with a putative class action in Delaware bankruptcy court that alleges it failed to provide proper notice to employees when the company shut down several locations at the time of its latest bankruptcy filing.

  • June 17, 2024

    Spinal Implant Maker's Creditors Vote To Approve Ch. 11 Plan

    InVivo Therapeutics Corp.'s creditors have voted to accept the biotechnology company's Chapter 11 liquidation plan, with an official for the debtor reporting in a Monday filing with the Delaware bankruptcy court that two creditor classes unanimously approved the proposal.

  • June 17, 2024

    Talc Claimants Want Documents In Fight Over J&J Unit Venue

    Cancer patients with talc damage claims against Johnson & Johnson have urged a New Jersey federal court to give them access to transcripts and exhibits from depositions of top executives at the company's talc unit, saying the information will aid their effort to bar the J&J spinoff from filing a third Chapter 11 outside the Garden State.

  • June 17, 2024

    Vesttoo Trust Objects To Kaplan Hecker Fee Bid

    The liquidating trustee for bankrupt fintech business Vesttoo Ltd. has asked a Delaware bankruptcy judge to deny fees for Kaplan Hecker & Fink LLP, which had been proposed to counsel the company, saying the firm's retention application wasn't confirmed before the Chapter 11 plan became effective.

  • June 14, 2024

    Judge Converts Alex Jones Ch. 11, Tosses Media Co.'s Case

    A Texas bankruptcy judge on Friday turned Alex Jones' bankruptcy case into a Chapter 7, allowing a trustee to liquidate the right-wing conspiracy theorist and media personality's assets to repay creditors, but declined to convert the Chapter 11 of the company that runs Jones' online show, dismissing its petition instead.

Expert Analysis

  • How Associates Can Build A Professional Image

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    As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.

  • Insurers Have A Ch. 11 Voice Following High Court Ruling

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    The U.S. Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Gypsum — which reaffirmed a broad definition of "party in interest" — will give insurers, particularly in mass tort Chapter 11 bankruptcies, more opportunity to protect their interests and identify problems with reorganization plans, says George Singer at Holland & Hart.

  • How Cooperation Contracts Can Ease Disorder In Loan Trades

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    Significant challenges to settling trades can arise when lenders of syndicated bank loans enter into defense-oriented cooperation agreements, which are growing in popularity, but working through these issues on the front end of a trade can save hours down the road, says Robert Waldner at Crowell & Moring.

  • Firms Must Rethink How They Train New Lawyers In AI Age

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    As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.

  • Think Like A Lawyer: Always Be Closing

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    When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.

  • 9th Circ. Clarifies ERISA Preemption For Healthcare Industry

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    The Ninth Circuit's recent ruling in Bristol SL Holdings v. Cigna notably clarifies the broad scope of the Employee Retirement Income Security Act's preemption of certain state law causes of action, standing to benefit payors and health plan administrators, say attorneys at Troutman Pepper.

  • NY Combined Hearing Guidelines Can Shorten Ch. 11 Timeline

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    The Southern District of New York’s recently adopted guidelines on combining the processes for Chapter 11 plan confirmation and disclosure statement approval may shorten the Chapter 11 timeline for companies and reduce associated costs, say Robert Drain and Moshe Jacob at Skadden.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

  • 5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant

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    In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.

  • Bankruptcy Courts Have Contempt Power, Del. Case Reminds

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    A Delaware bankruptcy court recently held Camshaft Capital and its principal in contempt, serving as a reminder to bankruptcy practitioners and anyone else that appears before a bankruptcy judge that there are serious consequences for failing to comply with court orders, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.

  • What Lies Behind Diverging US And UK Insolvency Trends

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    Contrasting U.K. and U.S. insolvency trends highlight the importance of policy interventions in shaping consumer financial outcomes and economic recovery, and while the U.K.'s approach seems to have mitigated issues, the U.S. faces challenges exacerbated by economic conditions and policy transitions, says Thomas Curran at Thomas H. Curran Associates.

  • E-Discovery Quarterly: Recent Rulings On Text Message Data

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    Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.

  • How Banks Can Preserve Value Amid Corporate Default Surge

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    Amid a busy time for corporate bankruptcies, banks need a nuanced understanding of contractual rights, regulatory frameworks and evolving legal developments to protect and preserve their rights and interests, say attorneys at Phelps Dunbar.