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With a $25 million settlement hanging in the balance, lawyers in the Trump University class action are lashing out at a New York attorney who filed an objection, accusing him of ethics violations and demanding that his client drop her opposition, the National Law Journal reported today. The accusations against Gary Friedman come as his objection to the settlement, filed earlier this month on behalf of Fort Lauderdale, Florida, lawyer Sherri Simpson, could sabotage final approval of the deal at a hearing on Thursday in San Diego. Plaintiffs lawyers with Robbins Geller Rudman & Dowd sent a letter last week to Simpson, urging her to withdraw her objection, which they called ill-advised and warned could "jeopardize tens of millions of dollars in recoveries to thousands of Trump University student-victims who need relief now, not years down the line." Plaintiffs lawyers allege in a court filing that Friedman violated New York's Rule of Professional Conduct 7.3(a) by soliciting clients on the phone last month. Simpson, who has appeared in several political advertisements against Trump's presidential campaign in 2016, had no intention of opting out of the settlement until she was solicited by Friedman, wrote Rachel Jensen, a Robbins Geller partner.

Reversing the Third Circuit in Czyzewski v. Jevic Holding Corp., the Supreme Court ruled 6-2 yesterday in an opinion by Justice Stephen G. Breyer that the bankruptcy court, without consent from affected parties, cannot approve so-called structured dismissals that “deviate from the basic priority rules,” not even in rare cases, according to a special analysis from ABI Editor-at-Large Bill Rochelle. Justice Breyer was careful to narrow the Court’s holding so the opinion would not be interpreted to preclude first-day wage or critical vendor orders. Joined by Justice Samuel A. Alito, Jr., Justice Clarence Thomas dissented, saying that the writ of certiorari should have been dismissed as improvidently granted. Read more. 

Additionally, Cliff White, Director of the Executive Office for U.S. Trustees, issued a statement praising the decision and appreciating the efforts of the U.S. Trustee Program in the litigation. “The Supreme Court ruled in favor of truck drivers whose employer fired them, went bankrupt the next day, and then denied them their right to priority payment under bankruptcy law,” White said. “The Supreme Court’s ruling is a victory for the faithful application of the Bankruptcy Code as Congress has written it. When the rules are clear and consistently applied by the courts, then the system works more fairly. In the long run, that benefits all stakeholders — debtors, creditors, and the American public.”

ABI will be holding a media webinar tomorrow at 10 a.m. ET with experts examining the decision. A limited number of spots are available for ABI members to participate in the hour-long program. If you are interested in participating, please register via the following link.