 | | Featured Premium Content | | | | | [Creditor Rights Coalition]: Commentary: Prudential Considerations: Why Mediate the United States Trustee v. Jackson Walker Fee Dispute?*
After nearly two years of sometimes acrimonious wrangling between the Justice’s Department bankruptcy watchdog and prominent Houston law firm Jackson Walker LLP (JW) over legal fees, the parties announced that they would enter into mediation to resolve their dispute. According to a commentary by Cliff White, former head of the U.S. Trustee Program (USTP), the U.S. Trustee (UST) is seeking denial and disgorgement of all fees requested or paid to JW in cases in which former Bankruptcy Judge David R. Jones presided while his live-in romantic interest was a partner in the law firm. The news was greeted with some surprise by many, because the UST seemed to have the upper hand after the bankruptcy reference was withdrawn by U.S. District Judge Alia Moses. READ MORE
* The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI. | | |  | | Editor's Picks | | | | | Anne Wojcicki Wins Bidding for 23andMe
Anne Wojcicki is poised to regain control of 23andMe, after a nonprofit she controls topped Regeneron’s bid for the DNA-testing company, the Wall Street Journal reported. 23andMe said on Friday that a nonprofit controlled by Wojcicki was the new buyer for the company’s assets, offering $305 million. Last month, 23andMe said Regeneron, a biotech based in Tarrytown, N.Y., had won the bidding during a bankruptcy auction to buy the company for $256 million. (Subscription required.) READ MORE | | Shaquille O'Neal to Pay $1.8 Million to Settle FTX Class Action Lawsuit
Former NBA player Shaquille O'Neal will pay $1.8 million to settle a class action lawsuit related to the demise of cryptocurrency exchange FTX, the Associated Press reported. O'Neal, and other celebrities like Tom Brady and Stephen Curry, were named in the lawsuit in 2022. They had been accused of touting FTX as a reputable and trustworthy investment option via paid endorsements. The proposed settlement only pertains to O'Neal. READ MORE | | Retail Sales Rose in May, but Trade Group Warns of Spending Shift
Core retail sales — which excludes restaurant, car and gas spending — rose about 0.2% from April to May, and 4.2% from a year earlier, the National Retail Federation said on Friday, Investopedia.com reported. Spending on digital products, such as games and books, shot up about 28% year-over-year in May, and sporting goods sales rose 8.2%, the NRF said. But sales at building and garden supply stores fell 7.3% over the past year, it said. READ MORE
MORE NEWS BELOW | | | | |  | | Upcoming Events | | | | | ABI New York City Bankruptcy Conference New York Hilton Midtown
June 17 | New York, N.Y. | | ABI Central States Bankruptcy Workshop The Ritz-Carlton, Chicago
June 18-20 | Chicago, Ill. | | | | | | |  | | Daily Roundup | | | | | NY Lawmakers Near Deadline to Pass Bill Targeting Emerging Market ‘Vulture Funds’
New York state lawmakers are within days of a deadline to pass legislation targeting so-called vulture funds that has languished in the local legislature for the past two years, Bloomberg News reported. The state Assembly is expected to make a decision on the so-called Champerty bill before adjourning next Tuesday. If it doesn’t pass by then, supporters will have to wait until January for the debate to resume. The legislation, which has already passed the local senate, would bar investors from purchasing distressed debt at a deep discount with the intention of suing foreign governments after they’ve defaulted. READ MORE | | May Imports Drop 9% at Busiest U.S. Seaport on 145% China Tariffs
Imports to the busiest U.S. seaport at Los Angeles dropped 9% year-on-year in May, offering insight into how many shipments were canceled or put on hold after President Donald Trump slapped tariffs of 145% on goods from China, Reuters reported. The Port of Los Angeles handled the equivalent of 355,950 20-foot shipping containers of imports in May, when the 145% tariffs began to show up in data. READ MORE | | SEC Taps New Director of Trading and Markets Who Has Crypto Ties
The U.S. Securities and Exchange Commission announced four hires for prominent roles, including a new director of trading and markets who has ties to the crypto industry, Bloomberg News reported. Jamie Selway will lead a division responsible for regulating major securities market participants. He has previously served as the global head of institutional markets at Blockchain.com, as well as the chair of Skew’s board of directors. Coinbase Global Inc. acquired Skew, which provides data visualization and analytics for crypto markets, in 2021. READ MORE | | Stalled Arizona Mixed-Use Project Gets Second Chance with New Developer
For more than five years, the fate of a mixed-use development in downtown Mesa, Ariz., hung in the balance. The project formerly known as The Grid faced headwinds from the start amid the COVID-19 pandemic before stalling out for good last year, abc15.com reported. About 15 months later, the 3.3-acre downtown project has new life after Mesa City Council unanimously authorized a ground lease agreement on June 2 with its new developer, Soltrust Main QOZB LLC. READ MORE | | Iconic Liquor Brand in Chapter 11 Faces Liquidation
While many consider it a value brand, Stoli Vodka filed for chapter 11 in late November and remains under court protection, but that could change soon, The Street reported. Stoli Group USA blamed its bankruptcy filing on a two-month-long cyberattack that impacted its U.S. operations. Under the terms of the original filing, the company planned to continue operations as normal, making all required payments. The filing showed the company as having between $50 million and $100 million in liabilities. READ MORE | | Retailer At Home Files Bankruptcy with Lenders Set to Take Over
At Home Group Inc. filed for bankruptcy to implement a restructuring deal that will see its lenders take over the business, Bloomberg reported. The retailer has reached an agreement with creditors holding more than 95% of its debt that envisages the write-off of most of their $2 billion exposure and the provision of $200 million of new capital. Even before the latest round of import duties came into effect, the company had blamed tariffs for threatening a supply chain that provides its typical store with around 45,000 items. (Subscription required to view article.) READ MORE | | Pickleball Company Owner Waives Bankruptcy
A pickleball entrepreneur who was forced into bankruptcy by investors he lured with promises of generous returns recently agreed to waive his bankruptcy discharge after an investigation by the U.S. Trustee Program, preventing the discharge of more than $47 million in unsecured debt, Eagle Country Online reported. On May 14, the U.S. Bankruptcy Court for the Southern District of Indiana approved a voluntary waiver discharge by Rodney Grubbs, owner of All About Pickleball LLC. As a result, Grubbs remains personally liable for his debts, and creditors are free to pursue payment after the case is closed. READ MORE | | | | |
