Popular credit repair firm falls into bankruptcy after CFPB lawsuit: Federal agency asks for $3 billion in restitution from Lexington Law
PacerMonitor » Bankruptcy
by Juliette Fairley
11M ago
A popular credit repair company filed for chapter 11 bankruptcy after losing litigation lodged by the federal Consumer Financial Protection Bureau (CFPB) over its business model. The voluntary petition was submitted June 4 under PGX Holdings in the U.S. Bankruptcy Court for the District of Delaware with up to $500 million in listed assets, up to $10 billion in liabilities and more than 100,000 creditors. “Like most major companies that file chapter 11, they will find ways to continue doing business, and hopefully in a more ethical manner,” said Derek Jacques, a bankruptcy attorney with The Mit ..read more
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L.A. Attorney’s Involuntary Bankruptcy Lands Him In Court-Appointed Guardianship: Bankruptcy Trustee Snags Real Housewife Bling, FBI Agent’s Family Beach Home
PacerMonitor » Bankruptcy
by Juliette Fairley
1y ago
The seizure of a pair of $750,000 diamond earrings as part of an elderly attorney’s Los Angeles bankruptcy has left his estranged wife demanding a payout for damages. Tom Girardi, 84, and his Girardi Keese law firm were forced into Chapter 7 bankruptcy proceedings two years ago by a trio of attorneys and clients seeking to collect some $6.5 million. Real Housewives of Beverly Hills star Erika Jayne believes the bling should never have been seized and sold off at auction for $250,000, but the bankruptcy trustee claims to have found financial records showing Mr. Girardi acquired the jewelry ..read more
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Johnson & Johnson Texas Two-Step Bankruptcy Gets Booted by Federal Court: Third Circuit Vacates Bid to Split Talc Liabilities Into Separate Company
PacerMonitor » Bankruptcy
by Juliette Fairley
1y ago
Whether a class action case alleging Johnson & Johnson’s baby powder causes ovarian cancer can move forward will depend on whether a current stay is extended. On Feb. 2, after the U.S. Court of Appeals for the Third Circuit ruled against J&J’s bankruptcy, plaintiffs’ lawyers asked for relief from an automatic stay filed by J&J offshoot LTL Management LLC last year. A hearing is scheduled for Feb. 14 at 10 a.m. ET in New Jersey Bankruptcy Court. “When the court issues its mandate, that will lift the bankruptcy, but there’s going to be an En Banc appeal petition, and I imagine LTL wi ..read more
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Johnson & Johnson’s ‘Texas Two-Step’ Bankruptcy Gets Challenge From Talc Plaintiffs
PacerMonitor » Bankruptcy
by Juliette Fairley
1y ago
Although Johnson & Johnson was successful in its attempt to split off talcum liabilities via a so-called “Texas Two-Step” bankruptcy filing, the dance isn’t over as plaintiffs are vowing to appeal the denial of their motion to dismiss. The chapter 11 petition was filed after Johnson & Johnson was sued by multiple plaintiffs alleging that its baby powder caused women to develop ovarian cancer. “The rate of filing suggests that tens of thousands more cases are on their way and the few cases that have gone to verdict have had varied outcomes from zero to four billion,” said Anthony Casey ..read more
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Tech Nonprofit Sues for Right to Provide Free Bankruptcy Advice Without a Law Degree: Upsolve CEO Says U.S. Legal System Is ‘Civil Rights Injustice’
PacerMonitor » Bankruptcy
by Jan Hill
1y ago
Many Americans anticipate receiving income tax refunds in the spring so that they can buy a new car, take a vacation or pay down debt. However, others who are less fortunate look forward to being able to do the thing they’ve wanted but been unable to afford to do for months or even years: file for bankruptcy. Each year, the number of bankruptcy filings in the U.S. increases dramatically in March and April, according to one Washington Post report. Millions of American consumers face the prospect of bankruptcy each year, but for low-income families, being unable to afford a lawyer only adds to t ..read more
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Boy Scout Sex Abuse Class Action Sidetracked by Bankruptcy
PacerMonitor » Bankruptcy
by Juliette Fairley
1y ago
When the Boy Scouts of America filed for bankruptcy, the class action suit over allegations of child sex abuse was automatically stayed in favor of a plan that will create a Victims Compensation Trust. Just how much money will be set aside is hard to tell, but if Catholic Church litigation is any indication, it could be millions of dollars. “BSA consistently misrepresented itself as a safe, wholesome, values-based organization where scouts would be prepared for life, when BSA knew, in fact, that its programs were infested with pedophiles, its organization-wide abuse problem dated back to the 1 ..read more
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Bankruptcy Is the New Fashion in Fashion
PacerMonitor » Bankruptcy
by Derrick Rehn
1y ago
Over the past decade, the “fast fashion” industry has been declining as Americans choose to spend less on clothing and shift hard-earned dollars to enriching experiences and travel. The advent of Amazon means that interest in box stores is also declining. But what does this mean for so-called fast fashion retailers and their brick-and-mortar locations? The simple answer is that this often means bankruptcy. The list of companies forced to file for bankruptcy is ever-growing, and many other retailers are struggling. In 2019 alone, the Gap, Victoria’s Secret, J.C. Penney and Abercrombie & Fit ..read more
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Is Chapter 11 Bankruptcy a Way Out for Lawsuit-Ridden Corporations?
PacerMonitor » Bankruptcy
by Jan Hill
1y ago
On September 15, Purdue Pharma filed for chapter 11 bankruptcy, a move many see as an effort to shield itself and the billionaire Sackler family from liability for more than 2,600 federal and state lawsuits filed over the opioid crisis. The chapter 11 filing is part of a tentative agreement that could be worth as much as $12 billion over time between Purdue and 24 states and five U.S. territories, but not everyone considers it a good deal. States like Massachusetts and New York have expressed opposition, believing the agreement will allow the Sacklers to continue to participate in the drug man ..read more
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J.Crew Working on Turnaround to Avoid Bankruptcy ‘Death Knell’
PacerMonitor » Bankruptcy
by Juliette Fairley
1y ago
  J.Crew, long the go-to brand for yuppies seeking chinos and pullovers, has fallen on hard times, but it hasn’t quite thrown in the towel. Despite recording an inventory charge of $39.3 million during 2018’s fourth quarter, the retailer is reportedly pulling out all the stops for a turnaround, instead of waving the bankruptcy white flag like so many other retailers.   “J.Crew’s struggle to avoid bankruptcy indicates the view of retail in general that bankruptcy is a death knell as exemplified by the fact that in the current environment most retailers do not survive bankruptcy,” sai ..read more
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Bankrupcty Debrief for the Week of June 11th
PacerMonitor » Bankruptcy
by Christopher Mayfield
1y ago
New MACH Gen seeks quick restructuring with prepackaged plan New MACH Gen, owner and manager of three natural gas-fired electric generating facilities, filed for chapter 11 with a prepackaged restructuring plan. The company aims to have a quick trip through chapter 11, with emergence targeted for the second half of 2018. The plan, outlined in a restructuring support agreement entered with the first-lien lender and equity owner, proposes that New MACH Gen will transfer ownership of its Harquahala facility to the first-lien lender in exchange for a reduction of about $150 million of its debt as ..read more
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