Supreme Court Allows $2.46 Billion Boy Scouts Settlement to Proceed​​​

The U.S. Supreme Court today allowed the Boy Scouts of America's $2.46 billion settlement with sexual abuse victims to move forward, lifting a temporary pause imposed in response to an appeal by 144 former scouts who opposed the agreement, Reuters reported. The order supersedes one issued by Justice Samuel Alito on Feb. 16 that froze the settlement to give the full court more time to consider a Feb. 9 request by abuse claimants who sought to stop the settlement from moving forward while they pursue appeals. The Boy Scouts of America (BSA) filed for bankruptcy in 2020 after several U.S. states enacted laws letting accusers sue over decades-old abuse allegations. The organization ultimately reached a settlement, approved in court in 2022, that would pay abuse victims amounts ranging from $3,500 to $2.7 million. The settlement involves more than 82,000 men who have said they were abused as children by troop leaders while in the Boy Scouts. More than 86% of abuse survivors voted to support the agreement in bankruptcy court. Read more.

CFPB: Rising Credit Card Interest Costs Consumers Extra $25 Billion​​​

The Consumer Financial Protection Bureau (CFPB) said on Thursday that credit card companies' interest on loans was at an all-time high, costing customers about $25 billion extra each year, Reuters reported. Typically, the interest on credit card debt is a combination of the borrowing cost determined by the U.S. Federal Reserve and an additional rate charged by the lender. The additional rates, called the annual percentage rate (APR) margin, have been raising costs for consumers by billions of dollars a year, the CFPB said. Major credit card issuers have increased the average APR margin by 4.3 percentage points over the last 10 years, the consumer watchdog said, adding it had found evidence of practices inhibiting customers' ability to find alternatives to expensive products. The credit card market, being a highly concentrated industry, has attracted scrutiny from regulators and lawmakers for years. Concerns about competition were renewed this week after Capital One Financial agreed to buy Discover Financial for $35.3 billion, with analysts predicting tough antitrust scrutiny for the proposed merger. CFPB said that the APR margin for revolving accounts — a type of credit account that lets customers borrow up to their maximum credit limit — is now at 14.3%, the highest in recent history. Read more.

Latest ABI "Party in Interest" Podcast Features Attorney and “Squid Game” Competitor Chad Van Horn​​​

The latest episode of ABI's "Party in Interest" podcast features ABI Executive Director Amy Quackenboss talking with Chad Van Horn, the founding partner of Van Horn Law Group, P.A. in Fort Lauderdale, Fla. An ABC board-certified attorney and member of ABI’s 2022 “40 Under 40” class, Van Horn recently appeared as Player 286 on the popular Netflix reality show “Squid Game: The Challenge” and says he would have donated the $4.56 million in prize money to Big Brothers Big Sisters (he finished out the game as one of the top 10 contestants). Find out more about Van Horn's drive to succeed in both representing clients in the courtroom and competing in “Squid Game.” Listen here.

U.S. Justice Department Corporate Penalties Plunge in 2023 as Trial Backlog Bites​​​

The U.S. Justice Department team tasked with rooting out corporate crime secured $690 million in penalties in 2023, its lowest tally in at least eight years, Reuters reported. The department's Washington, D.C., Fraud Section, which focuses on corporate wrongdoing related to health care, securities and foreign bribery, last year brought eight resolutions to settle probes into companies working with other overseas regulators. While that was one more settlement than in 2022, total fines plunged 68%, falling below $1 billion for the first time since at least 2015, according to a Reuters analysis of data from the agency's annual report. The fall was partly due to a pandemic trial backlog that has diverted resources from settlement negotiations, while the bribery unit, historically a driver of record fines, brought fewer large cases, according to officials. Read more.

Unpack ADR in Global Restructuring & Insolvency Cases on Special Feb. 27 abiLIVE Webinar!

ABI's Mediation and International Committees will be hosting a special abiLIVE webinar on Feb. 27, with experts exploring the dynamic world of mediation and arbitration in restructuring and insolvency cases across common law and civil law jurisdictions. The program will delve into the different (supra)national legal frameworks shaping these processes, uncovering when and why mediation and arbitration is a game-changer, especially for cross-border and parallel proceedings. Register for FREE!

Applications for U.S. Jobless Benefits Fall Again​​​

The number of Americans applying for jobless benefits fell to its lowest level in five weeks, even as more high-profile companies announce layoffs, the Associated Press reported. Applications for unemployment benefits fell by 12,000 to 201,000 for the week ending Feb. 17, the Labor Department reported today. The four-week average of claims, a less volatile measure, fell by 3,500 to 215,250, down from 218,750 the previous week. Weekly unemployment claims have remained at historically low levels in recent years, despite efforts by the U.S. Federal Reserve to cool the economy. The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in an effort to bring down the four-decade-high inflation that took hold after the economy roared back from the COVID-19 recession of 2020. Many economists had expected the rapid rate hikes to weaken the labor market and potentially tip the country into recession, but that hasn't happened. Jobs have remained plentiful, and the economy has held up better than forecast thanks to strong consumer spending. U.S. employers delivered a stunning burst of hiring at the start of 2024, adding 353,000 jobs in January in the latest sign of the economy’s continuing ability to shrug off the highest interest rates in two decades. Read more.

Congratulations to the Winners of the Regional Moot Court Competitions; National Duberstein Competition Coming Up in March!​​​

ABI congratulates the winning teams of each of the regional moot court competitions that were held around the country on Feb. 19 in preparation for the 32nd Annual Duberstein Moot Court Competition, being held March 2-4 in New York City. The results of these regional moot court competitions and their respective winning teams are as follows:

Midwest Regional Moot Court (hosted by ABI and the American College of Bankruptcy)
Winning Team: Northwestern University Pritzker School of Law

ABI Shapero Cup Regional Moot Court
Winning Team: University of Memphis Cecil C. Humphreys School of Law

Third, Fourth and DC Circuits’ Regional Moot Court (hosted by ABI and the American College of Bankruptcy)
Winning Team: University of Maryland Francis King Carey School of Law

The Eleventh Circuit Cristol Kahn Paskay Cup will be taking place this Saturday, Feb. 24.

The national Duberstein Moot Court Competition will feature 52 student teams, representing law schools from across the country, arguing in at least two preliminary rounds on alternating sides, with 16 teams advancing beyond the preliminary rounds. Bankruptcy practitioners judge the preliminary rounds and briefs, and leading appellate and bankruptcy judges preside over the advanced rounds. The competition concludes on March 4 with competitors, judges and top practitioners networking at the Duberstein Bankruptcy Moot Court Gala and Awards Presentation at the New York Marriott Downtown. Register today to attend the Gala and Awards Presentation. 

ABI Diversity Mentoring Program Accepting Applications for New Mentees Through March 5

ABI's Diversity and Inclusion Mentoring Program (June 2024 – June 2025) seeks to build personal and professional relationships while promoting diversity and leadership within ABI. The goal of the Mentoring Program is to expose mentees to the many aspects of the restructuring profession, including becoming involved in ABI and interacting with mentors’ colleagues, peers and networks. Guided by the DWG Mentoring Subcommittee, there will be bi-monthly meetings or programming to address a variety of topics, with resources from ABI and members of the restructuring community, including judges, trustees, attorneys and financial professionals. These structured events will occur between April 2024 – June 2025 and will provide opportunities to interact with other experienced insolvency professionals while providing an educational program and fostering opportunities to discuss important topics in the mentees’ professional development. For more information, including eligibility requirements and how to apply, please click here.

Asset Sale of the Year Award Nominations Deadline Extended to March 18

ABI’s Asset Sales Committee is seeking nominations for its Annual ABI Asset Sale of the Year award. Any bankruptcy sale that closed between January 1 and December 31, 2023, and involved at least one professional who is a member of ABI’s Asset Sales Committee is eligible. The nomination deadline has been extended to March 18; please send your nominations to Matt LoCascio and Leyza Blanco. For more information, please click here.

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, who will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis, although please note that abstracts to be considered for the upcoming Annual Spring Meeting, being held April 18-20, 2024, at the Marriott Marquis in Washington, D.C., were due on December 31, 2023. 

Bankruptcy Judgeship Vacancy Announcement for the District of New Jersey

Chief Judge Michael A. Chagares of the U.S. Court of Appeals for the Third Circuit on Monday announced the application process for a bankruptcy judgeship in the District of New Jersey, seated in Trenton. For eligibility and qualifications, please click here to access the full announcement. Applications must be submitted electronically by noon on March 6, 2024.
 

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