Business Torts › Bankruptcy

Settlements Redux: A Brief Follow-Up From My Bankruptcy Post

I received a number of e-mails on my three-part series on settlements, which ran over the past few weeks. Of those e-mails, several dealt with a topic I raised in Part 3 - accounting for the possibility of a settling...more

Ninth Circuit Rejects Class Action Settlement Providing Conditional Incentive Awards

Earlier this week, the United States Court of Appeals for the Ninth Circuit reversed approval of a $45 million class action settlement that had been reached with three credit reporting agencies in Radcliffe v. Experian...more

Settlements (Part 3 of 3): Dealing With a Defendant's Bankruptcy in Non-Compete Litigation

This is largely a plaintiff-centric column, offering some practical points to consider when assessing the risk of bankruptcy in connection with non-compete (or other competition) litigation. Though many non-compete suits...more

Rogers Towers: Debts Non-Dischargeable When Use of Proceeds Intentionally Misrepresented

When an individual obtains a loan with no intention of repaying the lender, it is well established that such a debt is not dischargeable in bankruptcy. If, however, a debtor does not misrepresent its intent to repay the...more

How Graphics Helped a Trial Team Show Complex Data and Win

I love hearing the news that one of our clients had a great result using the work we did for them. The most recent big win I’m happy to report is Manatt, Phelps & Phillips, LLP, won a major lender liability/wrongful...more

Narrow Interpretation of "Customer" Under SIPA Is Affirmed by the Second Circuit

On February 22, 2013, the United States Court of Appeals for the Second Circuit in In re Bernard L. Madoff Investment Securities LLC held that certain individuals who had invested indirectly in Bernard L. Madoff Investment...more

In re Canopy Financial, Inc.: A Primer From the Seventh Circuit on Excusable Neglect

What is “excusable neglect” under Fed. R. Civ. P. 60(b)(1)? The answer is that it depends, but generally it’s not much. That’s the first lesson from the Seventh Circuit’s recent decision in In re Canopy Financial, Inc., No....more

A PowerPoint Sample for Business Trial Lawyers

The Association of Business Trial Lawyers recently asked Cogent Legal to prepare the graphics for a presentation on mock trials. The panel consisted of some of the best jury consultants in the country exploring the factors...more

Commercial Restructuring & Bankruptcy Alert - February 2013

In this Issue: - Lenders Beware - International Insolvency Laws: Will One Size Fit All? The Debate Continues - ‘Fair and Equitable’ Means More Than Amortization Schedule - Pre-Petition Security License...more

Obligations To Pensioners In An Insolvency: Supreme Court Clarifies The Law

The Supreme Court of Canada overturned the Ontario Court of Appeal today in what is one of the most highly-anticipated cases for the pension and insolvency bars pending before the courts. In Indalex (Re) 2013 SCC 6, the court...more

North Carolina Court of Appeals Allows Borrower to Take Breach of Fiduciary Duty Claims Against Lender to a Jury

In what may be a first for a North Carolina appellate court, the North Carolina Court of Appeals has reversed the entry of summary judgment for a lender on a borrower’s breach of fiduciary claim. In Dallaire v. Bank of...more

Supreme Court to Address Circuit Split Over 'Defalcation' Meaning

Originally published in The Legal Intelligencer on November 16, 2012. In a corporate system based in part on the separation of ownership and control, the relationship between principals and agents is riddled with agency...more

Rogers Towers: The Right to Trial by Jury in Fraudulent Transfer Actions in Bankruptcy

Suppose you have been sued by the bankruptcy trustee for an alleged fraudulent transfer or a preferential payment. Who decides the case—the bankruptcy judge or a jury? This post explores the circumstances in which parties to...more

Inside the Mind and Behind the Numbers: Ponzi Schemes

John Hanson, a former FBI Agent and practicing forensic accountant, takes you inside of his mind and behind the numbers of a Ponzi Scheme to answer the universal question: "Where did all that money go?" Based on actual...more

Nondischargeable Debts: Some Lies Matter More Than Others

Originally published in Law360 on October 23, 2012. In Bandi v. Becnel (In re Bandi), 683 F.3d 671 (5th Cir. 2012), the debtors made false statements regarding their ownership of particular real estate. The Fifth...more

The Legal Canvas - Summer 2012

In This Issue: - Dealing in Hidden Risk: Agency and Fiduciary Liability in the Dealer-Seller Relationship 3 - Censorship: Silencing Art 7 - Quick Update - Consigned Art and Bankruptcy 11 - Thinking About...more

FHFA Can Pursue Claims Against Non-Debtor Affiliates of Residential Capital

On July 17, Judge Denise Cote of the United States District Court for the Southern District of New York ruled that the Federal Housing Finance Agency (“FHFA”) can pursue certain RMBS-related claims against affiliates of...more

Second Circuit Affirms Arbitration Panel’s Finding That A Securities Clearing Firm May Be Liable As The “Initial Transferee” Of A...

On July 3, 2012, the United States Court of Appeals for the Second Circuit refused to vacate an arbitration award against Goldman Sachs Execution & Clearing, P.C. The Court left intact the arbitration panel’s finding that the...more

United States of America vs. Russell Wasendorf Sr.

Criminal Complaint

Russell Wasendorf Sr., the chief executive of the futures brokerage firm Peregrine Financial Group, violated section 1001(a)(1) & (3) of Title 18 by “making and using false statements in a matter within the jurisdiction of...more

Credit Crunch Digest -- June 2012

This digest collects and summarizes recent media reports regarding potential liability, government initiatives, litigation and regulatory actions arising from the subprime mortgage crisis and credit crunch, including cases of...more

Bankruptcy Law: Tousa Update - June 2012

We reported to you in detail about the Tousa Bankruptcy Court decision in November, 2009 which found payments to lenders and the grant of associated liens were avoidable as fraudulent conveyances. The impacted Tousa lenders...more

Corporate and Financial Weekly Digest - June 1, 2012

In this issue: - NASDAQ Proposes Liberalization of Independence Exception Provisions - FINRA Provides Additional Guidance on New Suitability Rule - CFTC Roundtable to Discuss Proposed Regulations Implementing...more

Whalen: Go Back To The Future To Fight Fraud With Equity Receivers [Video]

May 23 (Bloomberg Law) -- Chris Whalen, senior managing director at Tangent Capital Partners, and Bill Rochelle from Bloomberg News talk with Bloomberg Law's Lee Pacchia about how the so-called in pari delicto defense stops...more

In re TOUSA, Inc.— Eleventh Circuit Reinstates Widely Criticized Fraudulent Transfer Decision

On May 15, 2012, the United States Court of Appeals for the Eleventh Circuit issued an opinion in the TOUSA, Inc. (“TOUSA”) chapter 11 bankruptcy cases reinstating a $480 million fraudulent transfer judgment previously...more

Just When I Thought I Was Out . . . Eleventh Circuit Rules in TOUSA that Refinanced Lenders Can Be “Pulled Back In” and Held...

On May 15, 2012, the Eleventh Circuit Court of Appeals upheld a ruling by the U.S. Bankruptcy Court for the Southern District of Florida, which required certain lenders to return $403 million in prepetition payments they had...more