The First Circuit said Wednesday that bondholders of the Puerto Rico Electric Power Authority have valid liens worth $8.5 billion on the revenue of the utility, reversing a lower court's ruling but leaving it up to the bankruptcy court to determine what effect that has on the restructuring plan.
Law360
Bankruptcy
THURSDAY, JUNE 13, 2024 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

1st Circ. Finds PREPA Bondholders Have $8.5B In Valid Liens

By Vince Sullivan

The First Circuit said Wednesday that bondholders of the Puerto Rico Electric Power Authority have valid liens worth $8.5 billion on the revenue of the utility, reversing a lower court's ruling but leaving it up to the bankruptcy court to determine what effect that has on the restructuring plan.

Opinion attached | Read full article » | Save to favorites »

Terraform To Settle With SEC For $4.5B After Fraud Trial

By Aislinn Keely

Crypto firm Terraform Labs has agreed to a $4.47 billion settlement with the U.S. Securities and Exchange Commission after a Manhattan jury found the firm and its founder Do Kwon liable for fraud in April.

4 documents attached | Read full article » | Save to favorites »

Money Fight Between Trustee, Law Firm Goes To Mediation

By Daniel Connolly

A money conflict between a Chapter 11 bankruptcy trustee and an outside law firm is going to mediation, the parties announced in a court filing this week. It's the latest move in the saga of Litigation Practice Group, the failed California debt relief law firm that was secretly run by a disbarred lawyer.

Report attached | Read full article » | Save to favorites »

CHAPTER 11

Pool Co. Hits Ch. 11 After 'Crippling' $16M False Ads Verdict

By Hayley Fowler

The American arm of a Chinese swimming pool products manufacturer has declared bankruptcy after it was slapped with a $16 million false advertising and unfair business practices judgment in North Carolina that the company previously warned would put it out of business.

4 documents attached | Read full article » | Save to favorites »

CHAPTER 7

2nd Circ. Backs Brokerage In Suit Over Biotech's Failed IPO

By Yun Park

The Second Circuit on Wednesday declined to reinstate a Texas company's suit against an investment brokerage that advised biotech Inpellis on an initial public offering that failed and sent the company to file Chapter 7, ruling a lower court rightly found a global settlement eclipsed the need for a jury trial.

Decision attached | Read full article » | Save to favorites »

RESTRUCTURING

Directors Of Defunct Med Tech SPAC Seek Toss Of Del. Suit

By Leslie A. Pappas

Directors of a special purpose acquisition company that merged with now-defunct medical technology company Better Therapeutics Inc. urged Delaware's Court of Chancery on Wednesday to toss a shareholder's suit about the $15 million de-SPAC merger, saying it wasn't like other problematic SPAC deals.

Read full article » | Save to favorites »

DEALS

SPAC Dealmakers Expect Modest Pickup After Market Bottom

By Tom Zanki

Market professionals expect a slow pickup in deals involving special-purpose acquisition companies starting in the second half of 2024, predicting on Wednesday that a leaner market will emerge following the recent crash and imposition of tighter regulations.

Read full article » | Save to favorites »

PEOPLE

Pillsbury Adds Aviation-Focused Bankruptcy Partner In NY

By Tracey Read

Pillsbury Winthrop Shaw Pittman LLP has hired a corporate restructuring partner with aviation expertise for its insolvency and restructuring group in New York.

Read full article » | Save to favorites »

EXPERT ANALYSIS

9th Circ. Clarifies ERISA Preemption For Healthcare Industry

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.

Opinion attached | Read full article » | Save to favorites »

Litigation Inspiration: Attys Can Be Heroic Like Olympians

Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.

Read full article » | Save to favorites »

LEGAL INDUSTRY

Analysis

How 3 Firms Cleared 2 Ex-Autonomy Execs In HP Fraud Case

By Bonnie Eslinger

A California federal jury's rejection last week of fraud charges against the founder and former finance vice president of British software company Autonomy validated an approach by the defendants' three law firms — Steptoe, Clifford Chance and Bird Marella — to form a "seamless" collaboration throughout the trial, from jury selection to closing arguments.

Read full article » | Save to favorites »

Senate Panel OKs Fix For Federal Courts' 'Genuine Crisis'

By Courtney Bublé

The Senate Judiciary Committee voted out unanimously on Thursday a bipartisan bill to create 66 new and temporary judgeships to alleviate the federal courts' workload.

2 documents attached | Read full article » | Save to favorites »

Contentious Del. Corporate Law Changes Sail Through Senate

By Jeff Montgomery

After triggering rare public dissent, a multipart Delaware general corporation law amendment that would let boards cede some governance rights to big stockholders whisked through the state's Senate on Thursday without debate or an opposing vote, with a House vote expected as early as next week.

Read full article » | Save to favorites »

Rutgers Fights Law School Vice Dean Subpoena In Bias Suit

By Jake Maher

Rutgers University argued in New Jersey state court this week that an attempt from a Jewish law student to subpoena the law school's vice dean for documents is really a means to "harass" the university because the student has already subpoenaed Rutgers for the same information.

3 documents attached | Read full article » | Save to favorites »

Confronting The Psychological Toll Of Personal Injury Law

Personal injury lawyers advocate for clients who have experienced trauma, loss and life-altering injuries, but these cases can have an emotional impact on attorneys themselves — so it is crucial to address these challenges proactively and openly, and normalize the conversation around mental health in the legal profession, says Lisa Lanier at Lanier Law Group.

Read full article » | Save to favorites »

Series

Playing Chess Makes Me A Better Lawyer

There are many ways that chess skills translate directly into lawyer skills, but for me, the bigger career lessons go beyond the direct parallels — playing chess has shown me the value of seeing gradual improvement in and focusing deep concentration on a nonwork endeavor, says attorney Steven Fink.

Read full article » | Save to favorites »

Promo that reads Law360 Pulse Summer Associates Survey Promo that reads Law360 400

LAW FIRMS IN TODAY'S NEWS

Antonetti Montalvo

Archer & Greiner

Bird Marella

Cadwalader Wickersham

Casellas Alcover

Casillas Santiago

Clifford Chance

Cooch & Taylor

Dailey LLP

Dechert LLP

Dentons

Dinsmore & Shohl

Ellenoff Grossman

Fox Rothschild

Gibson Dunn

Hilgers Graben

Holcomb & Ward

Javerbaum Wurgaft

Kaplan Hecker

Lanier Law Group

Law Office of Rajeh A. Saadeh

Law Office of Steven J. Fink PLLC

Litigation Practice Group

Loeb & Loeb

Marshack Hays

Maslon LLP

Mazie Slater

McCarter & English

McConnell Valdes

Monserrate Simonet

Morvillo Abramowitz

Newman Ferrara

Paul Hastings

Pillsbury Winthrop

Proskauer Rose

Quinn Emanuel

Rayburn Cooper

Saul Ewing

Shumaker Loop

Sidley Austin

Simpson Thacher & Bartlett LLP

Steptoe LLP

Troutman Pepper

Wachtell Lipton

White & Case

Womble Bond

COMPANIES IN TODAY'S NEWS

Alexander Capital LP

Amazon.com Inc.

Brooklyn Law School

Citigroup Inc.

Cortland Capital Market Services LLC

Delaware State Bar Association

Deloitte Touche Tohmatsu Ltd.

GoldenTree Asset Management LP

Jefferies Financial Group Inc.

LinkedIn Corp.

Moelis & Co.

Mountain Crest Acquisition Corp.

NASDAQ Inc.

Perceptive Advisors LLC

Pew Research Center

Playboy Enterprises Inc.

The Cigna Group

Therapeutics Inc.

TikTok Inc.

Total Quality Logistics Inc.

U.S. Bancorp

GOVERNMENT AGENCIES IN TODAY'S NEWS

Delaware Court of Chancery

Judicial Conference of the United States

U.S. Attorney's Office for the Northern District of California

U.S. Bankruptcy Court for the District of Massachusetts

U.S. Bankruptcy Court for the District of Puerto Rico

U.S. Court of Appeals for the First Circuit

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. District Court for the District of Puerto Rico

U.S. District Court for the Eastern District of New York

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Southern District of New York

U.S. Government Accountability Office

U.S. Securities and Exchange Commission

United States Bankruptcy Court for the Western District of North Carolina

United States District Court for the Southern District of Ohio