Chapter

Supreme Court Blocks Nonconsensual Third-Party Bankruptcy Releases, Reshaping Chapter 11 Landscape

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Washington, D.C. — The Supreme Court has handed down a significant decision on June 27, 2024, that changes the landscape of bankruptcy law, particularly how claims against third parties are handled in Chapter 11 reorganization cases. The court ruled in a 5-4 decision across ideological lines, prohibiting the inclusion of nonconsensual third-party releases in Chapter 11 reorganization plans, a practice that had previously allowed for the discharge of claims against nondebtors without their consent. Justice Neil Gorsuch, writing for the majority, which included Justices Clarence Thomas, Samuel Alito, Amy Coney Barrett, and Ketanji Brown Jackson, … Read more

Supreme Court to Decide if Insurers Can Claim in Chapter 11 Bankruptcy Cases

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Washington — The U.S. Supreme Court is currently deliberating a major case concerning the legal standing of insurance companies in bankruptcy disputes under Chapter 11. The decision could significantly shape the rights and responsibilities of insurers when a policyholder files for bankruptcy protection. At the heart of the debate is whether insurance companies should be allowed to intervene in bankruptcy proceedings to protect their interests directly, especially when claims covered by them might be discharged or compromised during the proceedings. This issue not only affects the balance of power between debtors and creditors but also … Read more

Johnson & Johnson Subsidiary to File for Chapter 11 Amid Baby Powder Lawsuits

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New Brunswick, NJ — On May 1, Johnson & Johnson’s subsidiary LLT Management LLC expressed its plans to initiate a Chapter 11 bankruptcy filing and proposed a structured plan to settle over 61,000 lawsuit claims. These claims concern the company’s past sale of baby powder, which plaintiffs argue contained asbestos and provoked cases of ovarian cancer. This legal maneuver is set within the broader context of increasing scrutiny and litigation that Johnson & Johnson has faced in recent years, attributed to allegations that its talc-based products were contaminated with asbestos—a substance well-known for its carcinogenic … Read more

Ripple Reaches $125M Settlement After Lengthy Battle with the SEC: A New Chapter Begins

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San Francisco, USA – In a landmark ruling that caps off a closely watched four-year legal battle, the U.S. Securities and Exchange Commission (SEC) has imposed a $125 million penalty on Ripple Labs Inc., the cryptocurrency giant, for violating investor protection laws. This case marks one of the most significant regulatory actions against a blockchain entity, spotlighting the increasingly intense scrutiny facing the cryptocurrency sector. The SEC’s enforcement actions originated from allegations that Ripple engaged in the sale of unregistered securities. Central to the conflict was the status of XRP, Ripple’s native digital currency, which … Read more