Mid Cap
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
23andMe Says Ch. 11 Privacy Ombudsman Not Required
DNA testing company 23andMe Inc.'s customer data will be protected in Chapter 11, its attorneys told a Missouri bankruptcy judge Wednesday as it argued that the appointment of a consumer privacy ombudsman is not required.
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March 26, 2025
Resort Developer Asks To Unwind Pre-Ch. 11 Equity Deal
California resort developer SilverRock Development Co. filed an adversary complaint in its Chapter 11 case Tuesday asking a Delaware court to unwind a pre-bankruptcy securitization transaction that converted preferred shares into secured debt.
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March 26, 2025
Mondee Defends Ch. 11 Sale To Stalking-Horse Bidder
Bankrupt travel app company Mondee Holdings Inc. on Wednesday defended its plan to sell its assets for about $200 million to its stalking-horse bidder, asking a Delaware judge to overrule a shareholder's objection that claimed the proposed sale runs afoul of bankruptcy rules.
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March 26, 2025
Judge To OK $3.3M DIP Draw In Wood Insulation Co.'s Ch. 11
A Delaware bankruptcy judge said Wednesday she will allow wood fiber insulation maker GO Lab Inc. to tap into a $10 million Chapter 11 bankruptcy financing facility provided by existing bondholders on an interim basis as the company seeks to restructure its balance sheet and give those bondholders nearly all equity.
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March 26, 2025
23AndMe's Ch. 11 Sale Hinges On Patchwork Of Privacy Laws
Bankrupt genetic testing company 23andMe wants to put its vast store of genetic data up for auction in order to repay creditors, but customer privacy concerns and a patchwork of state data protection laws could throw this plan into disarray.
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March 26, 2025
NY REIT Gets Ch. 11 Plan Confirmed After Deal With Creditors
A Delaware bankruptcy judge on Wednesday approved New York-based real estate investment trust JER Investors Trust Inc.'s Chapter 11 plan that calls for about $2.25 million in payments to general unsecured claim holders, following the company's report that it reached a consensus with noteholders that challenged the proposal.
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March 26, 2025
Office Snapshot: Butler Snow Trims Nashville Footprint
In response to changing operational needs, including a decreased need for physical storage and a greater need for collaborative spaces, Butler Snow LLP recently moved to a new office in Nashville's historic Germantown district that it said better fits its goals in the fast-growing city.
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March 26, 2025
Hybrid Engine Maker First Mode Gets Ch. 11 Plan Confirmed
First Mode Holdings, a company that makes hybrid engines for heavy-duty vehicles, received the Delaware bankruptcy court's approval Wednesday to move forward with its Chapter 11 plan, which calls for full recoveries for unsecured creditors.
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March 26, 2025
Justices Rule Ch. 7 Trustee Can't Recover Tax Payments
The U.S. Supreme Court on Wednesday reversed a Tenth Circuit decision allowing the bankruptcy trustee of a defunct Utah company to claw back $145,000 in federal taxes, saying the sections of the Bankruptcy Code relied upon by the trustee provide only a limited waiver of sovereign immunity.
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March 25, 2025
Aerospace Co. Creditor Must Say If It Will Bid Against Debt
The stalking horse bidder for the assets of bankrupt aerospace parts supplier Dynamic Aerostructures must inform the Delaware bankruptcy court by Thursday whether it intends to make a credit bid that includes $54 million of debt it currently holds against the company, after a judge found that a lack of clarity about the creditor's bid would affect other bidders.
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March 25, 2025
Apparel Biz Delta's Ch. 11 Converted To Ch. 7
A Delaware bankruptcy judge has granted a motion from the former owner of the Salt Life clothing and lifestyle business, Delta Apparel Inc., to transition its bankruptcy case from a Chapter 11 to a Chapter 7 liquidation, following the company's failure to secure enough funding to continue its reorganization proceedings.
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March 25, 2025
Catching Up With New Bankruptcy Case Action
23andMe Holding Co. entered Chapter 11 to sell its business and address $214 million in debt; Danimer Scientific Inc., which makes plastics alternatives, entered Chapter 11 to wind down while it tends to its roughly $450 million debt burden; and sneaker shop Soleply began a streamlined bankruptcy for small businesses in an effort to exit some lease obligations and restructure its debt.
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March 25, 2025
Pension Seeks To Opt Class Out Of Cutera Ch. 11 Releases
A pension fund heading up a class action against skin care technology group Cutera has urged a Texas bankruptcy court to find the shareholder has authority to opt all class members out of the company's Chapter 11 plan.
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March 25, 2025
Lowenstein Sandler Can Pursue NJ Dispensary Fraud Claims
Lowenstein Sandler LLP on Tuesday secured a ruling enabling the firm to pursue claims that a cannabis dispensary committed a "fraud on the court," with a New Jersey state judge rejecting the business' attempt to preclude those claims in the firm's $800,000 suit over unpaid legal fees.
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March 24, 2025
WB Fight Led Production Co. Behind 'The Matrix' To Ch. 11
Village Roadshow Entertainment Group, a funding and production company behind blockbusters like "The Matrix" and "The Great Gatsby," filed for bankruptcy last week after a soured partnership with Warner Bros. and an attempt to open its own studio fell flat.
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March 24, 2025
Purdue Files New Plan, Forever 21 Hits Ch. 11 For 2nd Time
Purdue Pharma proposed a new bankruptcy plan, under which the Sackler family and the company would pay a total of $7.4 billion to settle opioid-related claims. Meanwhile, Forever 21's U.S. arm filed for Chapter 11 protection in Delaware, securing court approval to close more than 300 stores and planning to exit bankruptcy by June. Plus, a Texas bankruptcy judge rejected an $8 million bid to purchase right-wing conspiracy theory peddler Alex Jones' Infowars, shutting down a request to reopen the asset sale process.
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March 24, 2025
Calif. Hotel Operator Given 1 Week Of Interim Ch. 11 Financing
The owner and operator of a hotel in Southern California received a Delaware bankruptcy court's permission for a week of Chapter 11 financing after the judge said he would not approve MOM CA Investco LLC's initial debtor-in-possession funding proposal.
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March 24, 2025
Danish Court Sends Fintech Into Bankruptcy
Fintech company Spark Technology A/S on Monday hit bankruptcy in the Bankruptcy Division of the Danish Maritime and Commercial Court after several months of being in hot water with the Danish Business Authority.
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March 24, 2025
ENGlobal Gets OK For Ch. 11 Asset Auction In April
A Texas bankruptcy judge on Monday gave bankrupt engineering firm ENGlobal Corp. permission to put itself on the block a month from now, saying a quick sale made the most sense for the company.
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March 24, 2025
Vertical Farming Co. Files Ch. 11 Amid Financing Struggles
Vertical farming venture Plenty Unlimited Inc. filed for Chapter 11 protection in Texas bankruptcy court with $100 million to $500 million of both assets and liabilities after struggling to raise fresh funds to support its money-losing business.
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March 24, 2025
DNA Testing Firm 23AndMe Files Ch. 11 With Plans To Sell
DNA testing company 23andMe Inc. filed for Chapter 11 protection in Missouri bankruptcy court, listing $214 million of debt and saying it plans to sell its business through the bankruptcy process.
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March 21, 2025
HVAC Giant Air Pros Says It Grew Too Fast Before Ch. 11
Florida-based HVAC service provider AFH Air Pros LLC went on a nationwide acquisition spree between 2020 and 2022, only to land in bankruptcy court earlier this month to try to sell those same companies it purchased and clear its debt, court documents showed.
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March 21, 2025
Soybean Developer Benson Hill Can Tap $11M DIP In Ch. 11
A Delaware bankruptcy judge on Friday gave interim approval to a high-protein soybean developer's $11 million debtor-in-possession loan, allowing it to access $3 million as it looks to sell itself within 75 days.
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March 21, 2025
Unlockd To Take Google Antitrust Battle To 9th Circ.
Defunct advertising app maker Unlockd is hoping the Ninth Circuit will revive its antitrust suit accusing Google of allowing the then-up-and-coming business to build a reliance on Google platforms and then cutting it off once it became a threat.
Expert Analysis
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Competitive Weightlifting Makes Me A Better Lawyer
The parallels between the core principles required for competitive weightlifting and practicing law have helped me to excel in both endeavors, with each holding important lessons about discipline, dedication, drive and failure, says Damien Bielli at VF Law.
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Serta Ruling Further Narrows Equitable Mootness In 5th Circ.
The Fifth's Circuit recent Serta bankruptcy decision represents a further hardening of its view of the equitable mootness doctrine, and may set up a U.S. Supreme Court review of the doctrine in the near future, say attorneys at Cleary.
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Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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Ch. 11 Ruling Confirms Insurer Standing Requirements
A New York bankruptcy court's recent decision in the Syracuse Diocese's Chapter 11 case indicates that insurers have misread the U.S. Supreme Court’s 2024 ruling in Truck Insurance Exchange v. Kaiser Gypsum and that federal standing requirements remain unaltered, say attorneys at Lowenstein Sandler.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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How Ch. 11 Can Alleviate Merchant Cash Advance Concerns
Merchant cash advance funding is one of the biggest challenges for small businesses today because funders are so prevalent, aggressive and expensive, but bankruptcy can provide several tools for dealing with MCA agreements that may allow the debtor business to restructure and survive, says Patricia Fugée at FisherBroyles.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.