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Trump Suggests Cornell Defendants Won’t Get a ‘Fair Shake’ From Letitia James
President Trump weighed in on the case when asked about Ms. James, who has become a target of his second-term retribution campaign.
MD Health Department fined $4.7M so far for delayed psychiatric care
Maryland is scheduled to approve a six-figure payment after the Department of Health failed to provide prompt psychiatric care to criminal defendants, an ongoing issue that has racked up a cost of $4.7 million.
Health issues or legal strategy? Defense and prosecutors clash over Cilia Flores’s condition
While lawyers for the wife of Nicolás Maduro claim she suffers from heart and gastric problems, the U.S. Attorney’s Office says the defendant has refused medical treatment, according to court filings
Oregon mental health providers, hospitals challenge mandate to treat criminal defendants first
The providers say the Oregon Health Authority is overstepping its authority in making them prioritize patients discharged from the Oregon State Hospital, but the state argues the requirement is needed to help it satisfy court orders.
Appeals court cites defendant's mental health issues in reversing trial court ruling on probation violation
The Indiana Court of Appeals cited a defendant’s mental health crisis in reversing a trial court decision ordering him back to prison for a probation violation.
Pioneer of China NewCo model sued in US over trade secret misuse, double-dealing
A legal feud unfolding in New York is putting a spotlight on the work of a business development veteran who is credited for pioneering one of biopharma’s hottest dealmaking mechanism: the China “NewCo” model. In a lawsuit originally filed in New York state court and recently moved to federal court, China’s Lepu Medical Technology has alleged that biopharma business development consultant Su Zhang, who was hired to help shop its GLP-1 weight-loss candidates to Western partners, engaged in corporate double-dealing and trade secret leaks. According to the complaint, while acting as Lepu’s primary dealmaking liaison for a group of obesity and metabolic disease drug candidates, Zhang was secretly double-dipping as the acting chief business officer for a direct competitor, BrightGene Pharmaceutical. “She never adequately disclosed the role, never sought Lepu’s consent, and never proposed any safeguard,” Lepu alleged in its complaint, which was filed in July after Zhang’s consulting firm, CoDevCo, sought certain transaction-based success fees from its angry customer through an arbitration process in Singapore. Lepu, the parent company of Lepu Biopharma, has asked Zhang to pay back its $500,000 retainer and disgorge all benefits she received during the alleged breaches of fiduciary duty, plus other damages and relief. The company has also requested the court grant injunctions to protect Lepu’s trade secrets. The ill-fated partnership officially kicked off in December 2024, when Lepu tapped CoDevCo as its “exclusive business development mechanism” to identify collaborators for the company’s drug candidates. According to Lepu’s complaint, Zhang personally negotiated and signed the agreement as managing director for CoDevCo, which used her home address. Before the Lepu deal, Zhang made a name following a short stint as the global head of business development for Hengrui Pharmaceuticals. It was during her tenure that Hengrui signed a landmark deal granting exclusive rights for a portfolio of GLP-1 assets to Hercules, which was at that time newly established by a group of private equity and venture capital firms. In addition to the regular upfront and milestone payments, Hengrui also gained an equity stake in Hercules, which later became Kailera Therapeutics. The Hengrui-Hercules deal opened a new paradigm, where a Chinese biopharma company spins off certain early-stage assets to investors for further development through the creation of a new company abroad. The “NewCo” model quickly came into vogue as it allows Western investors to access high-potential assets originating from China at an early stage while giving the Chinese licensors an opportunity to reap long-term benefits through equity stakes in the new firms. The NewCo model proved its value when Kailera staged a record-breaking $625 million IPO on Nasdaq this April, merely two years into the Hengrui deal. Related Kailera CEO 'knew we were in a good spot' before obesity biotech's record-breaking $625M IPO On her LinkedIn page, Zhang described her work at Hengrui as “[b]uilding team and capability from the ground up,” forming NewCo and major pharma partnerships worth billions of dollars. Lepu clearly wanted that kind of track record to help boost its own cardiometabolic portfolio, which includes a range of assets for obesity, Type 2 diabetes, fatty liver disease and muscle preservation during weight loss treatment. “Lepu’s pipeline is very valuable, but only if Lepu could secure the right international partner to expand into the overseas market during the available commercial window,” the company argued in its complaint. The Chinese biotech said it had little knowledge of U.S. laws, customs or business practices in the business development field, and therefore “needed to rely entirely” on the expertise of Zhang and her team as the firm’s first engagement of a U.S.-based BD consultant. “Zhang’s dominating influence on the business development strategy is further evidenced by the fact that she personally controlled the business-development communications on behalf of Lepu with potential partners,” Lepu said in its complaint. After entering the deal, Zhang introduced Lepu to her four associates. According to Lepu’s version of events, all of them were allegedly employed at different time points to perform similar jobs at other Chinese companies that Lepu described as its competitors, while having access to Lepu’s confidential information. As such, Lepu described Zhang’s team as “a roster of individuals whose primary professional loyalty, by virtue of their concurrent full-time employment, ran to Lepu’s competitors.” As well as the specific examples set out in the case, a look at Lepu’s deals over the period suggests Zhang may have been involved in at least one transaction. During their partnership, Lepu, through its subsidiary Shanghai Minwei Biotechnology, also out-licensed its GLP-1/GIP/FGF21 agonist MWN105 to a NewCo called Sidera Bio in the fall of 2025. The deal included an upfront and near-term payment of $35 million, up to $1.01 billion in milestones, and a 9.99% stake in the Danish startup. It seems likely that Zhang facilitated the Minwei deal given that Lepu is on record as having used CoDevCo as its “exclusive business development mechanism.” The big shock for Lepu came in the form of a news article on June 25, 2025. The article, reporting on phase 2 data for BrightGene’s GLP-1/GIP receptor agonist BGM0504, identified Zhang as acting chief business officer of the Lepu rival. Blindsided by her association with BrightGene, Lepu confronted Zhang in July 2025. “Lepu was given assurances that there was nothing to be concerned about and told that Zhang would explain the matter to Lepu,” Lepu alleged in its complaint. “Zhang never did.” Lepu claimed that Zhang had the motive and opportunity to steer potential prospective partners toward BrightGene or other competitors. Later, in February 2026, one of Zhang’s associates joined BrightGene as the vice president for global business development, according to the complaint. Around the same time, Lepu sent written demand letters asking Zhang to account for her BrightGene role, identify what confidential data were shared with the rival firm, and provide any conflict-of-interest or firewall policies during the engagement. According to Lepu, neither CoDevCo nor Zhang answered the questions in their responses. Related Novo vs. KBP: How a $1.3B deal turned into a fraud accusation and an international legal fight In a motion to dismiss filed with the U.S. District Court in the Eastern District of New York on Sept. 4, Zhang’s legal team argued that Lepu’s agreement was signed with CoDevCo, and that an employee of the contractor does not owe fiduciary duties to the client. In its complaint, Lepu said: “That CoDevCo was the contracting entity does not insulate Zhang from personal liability for duties she personally undertook and personally breached.” Taking the argument one step further, the defending party argued that the consulting agreement “does not create a fiduciary relationship even between CoDevCo and Lepu; instead, it identifies CoDevCo as an independent contractor retained to market Lepu’s business to potential western partners.” Although CoDevCo was Lepu’s exclusive business-development contractor, there were no terms stipulating that the consulting firm should serve only Lepu, Zhang’s lawyer noted. As to Lepu’s claims that Zhang misappropriated trade secrets, the defendant argued that Lepu authorized the use of the information so Zhang’s team could perform their service per the agreement. In a rebuttal filed on Sept. 11, Lepu’s lawyer set out why they believe the Chinese biotech satisfied New York law’s misappropriation definition by alleging that the defendant used a trade secret “in breach of a duty or through improper means.” As an alternative to dismissing the suit, the defendant suggested the action should be stayed pending outcomes from the arbitration of a separate case in Singapore. While NewCo pioneer Zhang is defending her business arrangements, momentum behind the NewCo trend has continued unabated into 2026. Through August, Chinese biotech assets have spurred 15 NewCo deals this year, according to local trade publication PharmaDJ.
Kayla Keyt Testifies on Family Business and Defendant Caleb Flynn
Kayla Keyt testifies about her family's commercial flooring business, her late sister Ashley, and the financial projections she shared with the defendant, Caleb Flynn.
Florida State University brings trauma science, resilience research into Florida courtrooms
The Lindsay Clancy trial was the latest high-profile case that affected defendants, families, jurors, judges and the professionals charged with
Wanted: An Associate Attorney (5+ Years) and a Paralegal (10+ Years). Want to Put Us Out of Business? Come Help Us Try.
We need a lawyer who can find the defendant and a paralegal who can find the one page that matters. Marler Clark has been suing the companies that poison
Two CT business owners plead guilty to millions in COVID program fraud
Prosecutors across the country took part in enforcement against 160 defendants responsible for frauds totaling $245 million targeting the Paycheck Protection Program, authorities said.
Lawyers seek sanctions for alleged ‘judge shopping’ to avoid Colorado’s Daniel Domenico
Lawyers for a group of San Diego-based corporate defendants are seeking sanctions against the plaintiff's attorneys for allegedly dismissing and refiling similar cases to try and avoid one federal judge in Colorado.
Colorado Supreme Court upholds constitutionality of new ‘reasonable doubt’ definition
The Colorado Supreme Court placed its stamp of approval on Monday on a revised definition of “reasonable doubt” that defendants have repeatedly challenged as unconstitutional in the three years since its unveiling. To date, multiple Court of Appeals decisions have endorsed the constitutionality of the current phrasing, which resembles the instruction given in Colorado’s federal […]
Judge Releases 1999 Murder Defendant Amid Health Issues
DC Superior Court Judge Rainey Brandt granted a homicide defendant’s unopposed motion for release on Sept. 11. George Mudd, 72, is charged with first-degree premeditated murder and felony murder, with aggravating factors of being especially heinous or cruel while committing or attempting to commit a robbery. The charges stem from his alleged involvement in the […]
Former Miss Hall's School science teacher Matthew Johnson arraigned in Berkshire Superior Court
A grand jury in Berkshire Superior Court indicted Johnson on three criminal charges, all of which stem from the defendant’s tenure at the school. The victim was a student attending Miss Hall’s School at the time the alleged crimes occurred.
Epic v. Health Gorilla: “Working as Designed”
We’ve been on a bit of a legal bender since just before Labor Day, so let’s keep a good thing going! As predicted, Epic does not want its case against Health Gorilla consolidated with the data breach cases, so it filed a motion to vacate the conditional transfer. And because they had to explain to the Panel why this case is different, they put a good chunk of previously unseen Epic v. Health Gorilla discovery record on the public docket! Roll the tape! The Case Against Consolidation Before we get to the fun stuff, let’s do the housekeeping. Epic's motion boils down to three arguments (sorted in ascending order of how well they land): A judge has already decided this. Judge Olguin declined to relate the fraud action to another ELU case (Patterson v. UVA Health), holding that the two do not call for determination of substantially similar questions of law or fact. Epic asks the Panel to treat that (a Rule 42 ruling) as law of the case. The overlap is thin. The three common questions Health Gorilla and the Panel identified are neither numerous nor complex (the qualities the Panel looks for before centralizing). Moreover, they are outnumbered by the questions unique to each side: The breach cases turn on security architecture, notification timing, and patient-level access. The fraud action turns on false treatment attestations and breaches of the framework agreements. Consolidation costs more than it saves. 17 of 21 parties in the fraud action do not appear in a breach case. The cases are also at very different stages: Olguin has a scheduling order running through a January 2028 trial while the breach actions are much more nascent. I like the last two more than the first because they attack the basic economics of an MDL: there just may not be enough shared discovery here to justify dragging all the defendants and a relatively mature fraud case all the way to Florida. On the other hand (while I know exceedingly little about MDL and Rule 42), I have a hard time seeing why a district judge's decision about his own docket would control what the Panel does with the separate § 1407 question. I might be reading between the lines too much, but I sorta think Epic's own brief half-concedes this, framing the two provisions as "two sides of the same coin" but then adding "respectfully submit" (which is often lawyer speak for “we know this is a reach”). The Ladder Gets More Rungs Anyway, the arguments are not why you're here (aside from the lawyers, maybe). Back in June, we discussed how Epic was using the smaller defendants to build an evidentiary ladder toward Health Gorilla and Unit 387. Turns out discovery has been adding a few rungs of its own.
Johnson County weighs new mental health court to divert defendants from jail
Johnson County leaders are considering a new criminal mental health court designed to keep people with mental health needs out of jail and better connected to t
In the Lindsay Clancy case, the mental health system is also on trial
On trial alongside the broken defendant in the Clancy case: Our broken mental health system.
Judge Excludes Key Confession in Sept. 11 Case
Prosecutors argued the statements by the defendant, Khalid Shaikh Mohammed, were crucial evidence for the eventual death-penalty trial.
Denver murder, assault convictions reversed due to faulty jury instructions
Colorado’s second-highest court reversed a defendant’s convictions for murder and assault last week after concluding a Denver judge incorrectly omitted key jury instructions that could have affected the verdict and sentencing. Stephen C. Swainson fatally stabbed Israel Casillas in downtown Denver one night in September 2020. He also stabbed Levi Casillas, Israel’s brother, who survived. […]
Prosecutors say bullet engraving shows Charlie Kirk was targeted for his politics
Prosecutors in Charlie Kirk's killing pointed to an engraved bullet, arguing that the inscription “Hey Facist! CATCH!” demonstrates that Kirk was targeted for how the defendant perceived his politics.
Prosecutors say bullet engraving shows Charlie Kirk was targeted for his politics
Whether defendant Tyler Robinson acted out of political animus could be key for prosecutors seeking the death penalty — or for his attorneys in taking that punishment off the table.
Prosecutors say bullet engraving shows Charlie Kirk was targeted for his politics
SALT LAKE CITY (AP) — Prosecutors in Charlie Kirk 's killing pointed Tuesday to an engraved bullet, arguing that the inscription “Hey Facist! CATCH!” demonstrates that Kirk was targeted for how the defendant perceived his politics.
Prosecutors say bullet engraving shows Charlie Kirk was targeted for his politics
Prosecutors in Charlie Kirk's killing have pointed to an engraved bullet in arguing that Kirk was targeted for how the defendant perceived his politics.
Prosecutors say bullet engraving shows Charlie Kirk was targeted for his politics
Prosecutors in Charlie Kirk’s killing have pointed to an engraved bullet in arguing that Kirk was targeted for how the defendant perceived his politics
Lindsay Clancy: Why her mental health providers didn't see a crisis
Lindsay Clancy was under the care of several mental health professionals — so why couldn't they connect the dots? She went from "a loving mother" to a defendant
Lindsay Clancy: Why her mental health providers didn't see a crisis
Lindsay Clancy was under the care of several mental health professionals — so why couldn't they connect the dots? She went from "a loving mother" to a defendant
A pardoned Capitol riot defendant wants her restitution money back. The Justice Department wants to keep it
After the protracted demise of the $1.776 billion fund meant to pay perceived victims of government lawfare, prosecutors say they don’t have to give a now-pardoned January 6, 2021, defendant her restitution money back.
Business Restructuring Review Vol. 25 No. 4 July-August 2026
In This Issue New York Bankruptcy Court: Premature Allegations of Creditor Mistreatment Insufficient to Deny Chapter 15 Recognition of Foreign Restructuring Proceeding In In re ARD Finance, S.A., No. 25-12794 (MG), 2026 WL 817458 (Bankr. S.D.N.Y. Mar. 25, 2026), the U.S. Bankruptcy Court for the Southern District of New York was presented with a petition seeking chapter 15 recognition of Luxembourg's recently enacted bankruptcy law governing judicial reorganization proceedings. The court granted the petition, turning aside challenges to recognition voiced by a creditor group arguing that recognition should be denied based upon allegations of unfairness to creditors in the Luxembourg proceeding that would make recognition manifestly contrary to U.S. public policy. According to the bankruptcy court, recognition was warranted because: (i) the rules and procedures governing the proceeding under Luxembourg law were fundamentally fair; (ii) the petition otherwise satisfied chapter 15's recognition requirements; and (iii) the creditor group's allegations were premature, given the fact that the Luxembourg court presiding over the debtor's restructuring proceeding had not confirmed a restructuring plan, and all creditors had the right to participate fully and voice their objections in the proceeding (including the right to appeal an order approving a plan). [read more …] Florida Bankruptcy Court Examines Scope of Discovery in Chapter 15 Cases In In re Banco Master, S.A., No. 25-24568-SMG, 2026 WL 931729 (Bankr. S.D. Fla. Apr. 6, 2026), the U.S. Bankruptcy Court for the Southern District of Florida granted in part and denied in part post-recognition motions filed by an insider of a foreign debtor seeking to bar or limit discovery sought by the debtor's foreign representative concerning allegedly voidable transfers involving the debtors' U.S. real property. According to the court: (i) although chapter 15 includes its own discovery provisions among the relief that may be granted to a foreign representative, the expansive discovery available in cases under other chapters of the Bankruptcy Code is also available in chapter 15 cases; (ii) the discovery sought by the foreign representative was permissible; (iii) discovery regarding matters that were the subject of a pending adversary proceeding had to be undertaken under the more restrictive rules applicable to such proceedings; and (iv) a discovery request would be barred to the extent that it sought production of documents or testimony from a subpoenaed entity that exceeded the geographic limitations specified in such rules. [read more …] Delaware District Court Affirms Chapter 15 Recognition Order Enforcing Nonconsensual Third-Party Releases In U.S. Int'l Dev. Fin. Corp. v. Credito Real S.A.B. de C.V. SOFOM, E.N.R. (In re Credito Real S.A.B. de C.V. SOFOM, E.N.R.), 677 B.R. 192 (D. Del. 2026), appeal filed, No. 26-2356 (3d Cir. June 5, 2026), the U.S. District Court for the District of Delaware affirmed a bankruptcy court order granting chapter 15 recognition to a Mexican "concurso mercantile" proceeding and enforcing nonconsensual third-party releases approved by the Mexican court. Agreeing with the bankruptcy court that the releases were not manifestly contrary to U.S. public policy, the district court concluded: "It is well settled that U.S. bankruptcy courts can give effect to foreign orders in recognized foreign proceedings pursuant to the authority granted in Chapter 15, even when those orders contain relief unavailable under U.S. law. [The appellant's] arguments misconstrue the Supreme Court's narrow holding in Purdue, applicable in Chapter 11 cases, as well as the statutory framework of Chapter 15 and its core policy objectives. Accordingly, I will affirm the Enforcement Order." The ruling has been appealed to the U.S. Court of Appeals for the Third Circuit. [read more …] Fifth Circuit: Bankruptcy Court, Not State Court, Had Jurisdiction to Allow or Disallow Administrative Expense Claim In Storey Minerals Ltd. v. EP Energy E&P Co., LP (Matter of EP Energy E&P Co., LP), 169 F.4th 609 (5th Cir. 2026), the U.S. Court of Appeals for the Fifth Circuit affirmed lower courts' rulings disallowing a creditor's administrative expense claim. It also rejected the creditor's argument that, because the claims were predicated on state law, a state court should adjudicate the merits of the state law causes of action before the bankruptcy court could allow or disallow the claim as an administrative expense. According to the Fifth Circuit, even though the causes of action were based on state law, the bankruptcy court had jurisdiction to determine whether the creditor's claims should be conferred with administrative expense priority in the debtors' chapter 11 case. [read more …] New York Bankruptcy Court: Dismissal of Involuntary Chapter 11 Case Filed Prior to Commencement of Foreign Restructuring Proceeding Unwarranted In In re Xinyuan Real Estate Co. Ltd., No. 25-10745 (PB), 2026 WL 592250 (Bankr. S.D.N.Y. Mar. 3. 2026), the U.S. Bankruptcy Court for the Southern District of New York considered the bona fides of an involuntary chapter 11 petition filed by certain holders of U.S. dollar-denominated notes against a holding company for a group of Chinese property development companies that filed a restructuring proceeding in the Cayman Islands after the noteholders filed the involuntary chapter 11 petition. The court denied the debtor's motion to dismiss the chapter 11 case. Given the timing of the filing of the Cayman Islands restructuring proceeding, the absence of any progress in the proceeding for seven months, the debtor's need to restructure notes governed by U.S. law, and the debtor's lack of any meaningful contacts to the Cayman Islands, dismissal of the chapter 11 case was unwarranted under the applicable provision of the Bankruptcy Code, international comity, or the doctrine of forum non conveniens. [read more …] Bankruptcy Court Evaluates Trustee's Authority to Sell Avoidance Actions and Right of Target Defendants to Object In In re Law Enf't Officers Sec. Union, No. 24-70277-JAD, 2026 WL 560452 (Bankr. W.D. Pa. Feb. 27, 2026), a chapter 7 trustee sought court approval to sell certain avoidance actions to a creditor of the debtor's estate. Potential targets of the subject avoidance actions objected, arguing that such claims were nontransferable powers of the trustee rather than saleable estate property and urging the court to approve their competing settlement with the trustee. The U.S. Bankruptcy Court for the Western District of Pennsylvania disagreed with the potential defendants, holding that they lacked standing to object to the proposed sale, that avoidance actions are indeed estate property, and that the sale—rather than the settlement—best served the estate's interests. [read more …] U.S. Supreme Court Bankruptcy Roundup in Brief In Keathley v. Buddy Ayers Construction Inc., No. 25-6, 2026 WL 1686028 (U.S. June 11, 2026), the U.S. Supreme Court overturned a Fifth Circuit decision judicially estopping a chapter 13 debtor from asserting a personal injury claim against a construction company because the debtor failed to disclose the claim during his bankruptcy case. In so ruling, the Court held that "[t]he Fifth Circuit erred by artificially narrowing its inquiry to whether the debtor had knowledge of the underlying facts or a potential motive to conceal the claim." It represents the first time that the Court has applied judicial estoppel in the bankruptcy context, although it has suggested in other contexts that it may be inappropriate where an inconsistent legal position resulted from "inadvertence or mistake." Also in June, the Court denied petitions for certiorari in a few notable bankruptcy cases. [read more …] Newsworthy Heather Lennox (Cleveland/New York) (Star Individual), Bruce Bennett (Los Angeles) (Senior Statesperson), Kevyn D. Orr (Washington) (Eminent Practitioner), Gregory M. Gordon (Dallas) (Band 1), Carl E. Black (Cleveland), Corinne Ball (New York) (Senior Statesperson), Brad B. Erens (Chicago), Jeffrey B. Ellman (Atlanta), T. Daniel Reynolds (Cleveland), and Dan T. Moss (Washington/New York) were recognized as leading lawyers in the practice area Bankruptcy/Restructuring in the 2026 edition of Chambers USA: The World's Leading Lawyers for Business. The 2026 edition of Lawdragon 500 Leading Bankruptcy and Restructuring Lawyers ranked the following lawyers: Corinne Ball (New York) (Hall of Fame), Bruce Bennett (Los Angeles), Carl E. Black (Cleveland), Jeffrey B. Ellman (Atlanta), Brad B. Erens (Chicago), Gregory M. Gordon (Dallas), Heather Lennox (Cleveland/New York), Joshua M. Mester (Los Angeles), and Kevyn D. Orr (Washington). Fabienne Beuzit (Paris) and Jasper Berkenbosch (Amsterdam) were among the "Leading Individuals" ranked in the 2026 edition of The Legal 500 EMEA guide in the field of Restructuring and Insolvency or Insolvency. Rodolphe Carrière (Paris) was named a "Next Generation Partner" in the practice area Insolvency. Sid Pepels (Amsterdam) was selected by Global Restructuring Review's 40 under 40 2026. He was identified as a Rising Star within the global cross-border restructuring community. Global Restructuring Review is a leading digital subscription service, news outlet, and information platform dedicated exclusively to cross-border insolvency and corporate restructuring law. Fabienne Beuzit (Paris), Rodolphe Carrière (Paris), and Isabelle Maury (Paris) were recognized in the 2027 edition of The Best Lawyers in France™ in the practice area Insolvency and Reorganization Law. An article written by Corinne Ball (New York) titled "Comity and Fairness are Critical to Granting Additional Assistance under Chapter 15: A Canadian Reverse Vesting Order and Related Releases in Proceedings Involving Canadian and U.S.-Affiliated Companies Are Approved" was published in the June 24, 2026, edition of the New York Law Journal. An article written by Caitlin K. Cahow (Detroit) titled "New York Bankruptcy Court Weighs In on Adequate Assurance of Future Performance under Assigned Leases and Chapter 11 Plan Exculpation Provisions" was published on June 8, 2026, in Lexis Practical Guidance. An article written by Trisha L. Mowbray (Real Estate; Chicago) and Ryan Sims (Washington) titled "Chapter 11 Plan that Abridged Non-Debtor Lessee's Rights to Remain in Possession After Rejection Unconfirmable as Having Been Proposed in Bad Faith" was published on June 16, 2026, in the Harvard Law School Bankruptcy Roundtable. An article written by Dan T. Moss (Washington/New York), Corinne Ball (New York), Isel M. Perez (Miami), and David S. Torborg (Washington) titled "Texas Bankruptcy Court Adopts Barnet Rule Requiring Foreign Debtor to Have U.S. Assets to Be Eligible for Chapter 15 Relief" was published on June 10, 2026, in Lexis Practical Guidance. An article written by Daniel J. Merrett (Atlanta) and Nathaniel Parr (Atlanta) titled "Southern District of Texas Clarifies Post-Purdue Course for Consensual Third-Party Releases and Gatekeeping Provisions" was published on June 11, 2026, in Lexis Practical Guidance. An article written by Corinne Ball (New York) titled "LMEs, Sophisticated Investors and Equitable Mootness: The Fifth and Third Circuits Warn Against Testing the Limits of Chapter 11" was published in the June 2026 issue of the American Bankruptcy Institute Journal. Nicholas J. Morin (New York) was quoted in an article titled "Serta Ruling Offers Damages Road Map in Lender-on-Lender Disputes," published by Bloomberg Law on July 7, 2026. The article discussed U.S. Bankruptcy Judge Christopher Lopez's July 7, 2026, ruling that participating lenders in Serta Simmons Bedding's 2020 non-pro rata uptier exchange breached the credit agreement's ratable-sharing provision, and awarding excluded lenders more than $261 million in damages. The opinion resolves six years of litigation related to Serta's 2020 transaction, where it raised $200 million in new financing and exchanged $1.2 billion of term loans for $875 million in superpriority debt. Judge Lopez found that the debt-for-debt exchange constituted a "payment" under the credit agreement, requiring proportional sharing among lenders, and dismissed various defenses raised by the participating lenders. The case is Serta Simmons Bedding LLC v. AG Centre Street Partnership (In re Serta Simmons Bedding LLC), 2026 WL 1968535 (Bankr. S.D. Tex. Jul. 7, 2026). The New York Law Journal has recognized Andrew M. Butler (New York) as a 2026 "Rising Star" in Restructuring/Bankruptcy as part of the New York Legal Awards. The Rising Star category recognizes New York's most promising lawyers age 40 and under who have distinguished themselves through exceptional legal work, leadership, and contributions to the profession. Lawyer Spotlight: Daniel J. Merrett Dan Merrett, a partner in the Atlanta Office, has spent nearly 20 years representing all manner of stakeholders in complex corporate restructurings and chapter 11 reorganizations. His practice extends to related transactions and disputes involving acquisitions; divestitures; credit facilities; securities; environmental obligations; and vendor, employee, and governance matters. Dan has substantial experience managing mass tort liabilities, including the restructurings and related chapter 11 cases of affiliates of Georgia Pacific and Johnson & Johnson, implemented to resolve asbestos and talc liabilities. He also represents key parties in energy and infrastructure matters, including facility owners, EPC contractors, and joint-venture parties. Dan was a key player in the restructuring teams in the historic bankruptcies of the City of Detroit and Chrysler. His other significant representations in chapter 11 cases include AFA Foods, Alpha Natural Resources, Dana Corporation, M&G Chemicals, McDermott International, Monster/CareerBuilder, Transtar Industries, and Westinghouse. He is licensed in both the United States and England & Wales and recognized in restructuring by Chambers USA and Best Lawyers.
19 defendants charged in Pennsylvania home healthcare fraud schemes
Nineteen defendants are facing criminal charges following an investigation into healthcare fraud in Pennsylvania, officials said.
FBI Oakland bribery case: Defendant took secret, compromising videos of politicians, records show
The government says defendant Andy Duong, own of the owners of California Waste Solutions, took secret photos and videos of politicians in compromising positions.
Greene County launches mental health court to divert eligible defendants to treatment
Greene County has launched a new mental health court aimed at keeping eligible defendants out of prison and connecting them with treatment.
Fines for slow pretrial mental healthcare upheld against MD Health Department
The Maryland Supreme Court upheld fines against the state health department for failing to provide prompt psychiatric care to criminal defendants deemed incompetent to stand trial.
Netflix actress, model plead guilty to $3.4M Medicaid fraud scheme
The unusual defendants were swept up as part of a larger investigation into healthcare fraud in the Minnesota housing services program. An alleged third co-conspirator has pleaded not guilty and will take her chances at a jury trial.
2 defendants in Glenwood South violence appear in court, told to stay out of entertainment district
New details revealed in court showed a Raleigh police officer suffered an elbow injury while breaking up a fight allegedly involving the two defendants.
Trump administration claims healthcare fraud crackdown has saved taxpayers $5.56B in six months
A new report from the U.S. Department of Health and Human Services’ Office of Inspector General shows most of the money comes from a small number of huge cases, where the federal government was able to reclaim hundreds of millions of dollars in Medicare and Medicaid funds being abused by criminal defendants.
NJ's top court says defendant can seek sex assault victim's mental health records
The state Supreme Court said a judge can privately look at mental health records, reversing a lower court that previously denied it.
District attorneys, lawmakers celebrate changes to mental health diversion law
The newly signed law expands courts’ ability to deny mental health diversion to defendants in criminal cases.
Gavin Newsom Signs Law Limiting Mental Health Diversion for People Accused of Crimes
A new California law gives just more flexibility to keep defendants in jail rather than releasing them to community-based mental health treatment programs.
Former NBA player, Richmond native Ed Davis indicted in federal sports gambling case
Former National Basketball Association (NBA) player and Richmond native Ed Davis is among the six defendants indicted in a federal sports gambling case, according to an indictment unsealed on Monda…
Gavin Newsom signs law limiting mental health diversion for people accused of crimes
A new California law gives just more flexibility to keep defendants in jail rather than releasing them to community-based mental health treatment programs.
Health system CEO fired without cause in wake of class-action lawsuit over unnecessary surgeries
Reese Jackson, the former president and CEO of Chesapeake Regional Healthcare was unceremoniously dismissed from his role on June 1. Jackson has been named as a defendant in a pending class-action lawsuit filed by 900 women.
The Painting That Is Still on Trial in South Korea: How the unending Korean War became a permanent excuse to criminalise expression
By Boram Jang, East Asia Researcher at Amnesty International In a Seoul courtroom in March this year, a prosecutor read out charges against Jeon Seung-il, a former art student, from an indictment first written in 1989. The language had not changed, nor had the charges. Thirty-seven years later, only the young defendant had grown old. In 1989, he was 23 years old in a South Korea still shaped by decades […]
455 individuals charged with perpetrating healthcare fraud to the collective tune of $6.5B+
The defendants include 90 physicians and other licensed medical professionals.
DOJ announces $6.5B healthcare fraud takedown with record Medicaid enforcement
The Department of Justice unveiled charges against 455 people, including 90 doctors and other licensed medical professionals, for their alleged participation in healthcare schemes that involved mor | Law enforcement unveiled charges against 455 defendants for their alleged participation in healthcare schemes, among which fraudulent amniotic wound allografts and undelivered Medicaid services were spotlighted.
DOJ unveils charges for $6.5 billion in health fraud schemes
The Department of Justice (DOJ) unveiled on Tuesday charges against more than 450 defendants for alleged health care fraud totaling over $6.5 billion in false claims, as part of the Trump administr…
DOJ charges 455 defendants with healthcare fraud worth $6.5B
The indictments took place over the last two weeks in 45 states and U.S. territories.
DOJ charges 455 defendants with healthcare fraud worth $6.5B
The indictments took place over the last two weeks in 45 states and U.S. territories.
Exclusive | Justice Department Unveils $6.5 Billion Healthcare Fraud Crackdown
Prosecutors are expected to charge around 450 defendants in alleged fraud spanning Medicaid and hospice care.
Miami-Dade commissioners vote unanimously for new mental health center
Steven Leifman, a judge and finance chair of the Homeless Trust, has been on a quest to help address a societal problem he has experienced in his Miami-Dade courtroom, defendants with untreated mental health issues leading to what he says is a revolving door of arrest and release.
Jan. 6 debanking probe once floated as way to pad anti-weaponization fund
A Justice Department probe examining whether some of the nation’s biggest banks closed accounts of defendants charged in the 2021 Capitol riot and others for political reasons has been raised to the Trump administration as a way to support it’s efforts to compensate people the president claims were victims of weaponization, according to people briefed on the matter.
Ex-Reno business owner indicted for allegedly embezzling $7.8 million from high-speed internet project
“Through multiple fraudulent schemes, the defendant clearly exploited trust to line his pockets,” according to an FBI official.
Business Restructuring Review Vol. 25 No. 3 May-June 2026
In This Issue Texas Bankruptcy Court Adopts Barnet Rule Requiring Foreign Debtor to Have U.S. Assets to Be Eligible for Chapter 15 Relief In In re Siu-Fung Ceramics Holdings Limited, No. 24-33299, 2026 WL 382424 (Bankr. S.D. Tex. Feb. 10, 2026), the court denied petitions for chapter 15 recognition of Hong Kong bankruptcy and liquidation proceedings commenced on behalf of an individual debtor and a group of companies that he owned or controlled. According to the court: (i) the corporate debtors' Hong Kong liquidation proceeding was not eligible for chapter 15 recognition because the attorney retainer upon which such relief was based was not funded until nine months after the chapter 15 petition date; and (ii) the individual debtor's Hong Kong bankruptcy case could not be recognized because the debtor's "center of main interests" on the chapter 15 petition date was not in Hong Kong, and he did not even maintain an "establishment" there. [read more …] Southern District of Texas Clarifies Post-Purdue Course for Consensual Third-Party Releases and Gatekeeping Provisions In In re Container Store Group, Inc., 676 B.R. 356 (S.D. Tex. 2026), appeal filed, No. 26-20166 (5th Cir. Apr. 14, 2026), cross appeal filed, No. 26-20166 (5th Cir. Apr. 24, 2026), the U.S. District Court for the Southern District of Texas addressed consensual third-party releases and gatekeeping provisions in the aftermath of the U.S. Supreme Court's ruling in Harrington v. Purdue Pharma L.P., 603 U.S. 204 (2024). Consistent with existing Fifth Circuit precedent, the court confirmed that, in appropriate circumstances, consent for third-party releases may be obtained through a creditor's failure to opt out of granting that consent. But, the court ruled, consent through an opt-out mechanism essentially can never be inferred for creditor classes that stand to receive no recovery under a chapter 11 plan and that are deemed to reject the plan by operation of applicable bankruptcy law. Instead, those classes must affirmatively opt in to any release. The court also narrowed and remanded the bankruptcy court's acceptance of a broad gatekeeping provision, ruling that such provisions must correspond to the restrictions established by Fifth Circuit precedent. [read more …] Delaware Bankruptcy Court: Initial Transferee Need Not Be Defendant in Fraudulent Transfer Avoidance and Recovery Litigation The Bankruptcy Code gives a bankruptcy trustee the power to avoid asset transfers that are either made with the intent to defraud creditors or that are "constructively" fraudulent because an insolvent debtor did not receive adequate value in exchange. The Bankruptcy Code also permits recovery of an avoided transfer from not only the initial recipient, but also from subsequent transferees. Courts disagree over whether a transfer must actually be avoided before the trustee can seek recovery from a subsequent transferee and whether the initial transferee must also be a defendant in the recovery litigation against a subsequent transferee. The U.S. Bankruptcy Court for the District of Delaware weighed in on this debate in Phillips v. SS Associates LLC (In re ONH AFC CS Investors, LLC), No. 23-10931 (CTG), 2026 WL 312892 (Bankr. D. Del. Feb. 4, 2026). The court adopted the majority view, ruling that the initial transferee need not be a defendant in avoidance and recovery litigation against a subsequent transferee, but that the trustee must establish the elements necessary to avoid the initial transfer as part of the recovery litigation. [read more …] New York Bankruptcy Court Weighs In on Adequate Assurance of Future Performance under Assigned Leases and Chapter 11 Plan Exculpation Provisions In order to assume and assign an executory contract or unexpired lease, a bankruptcy trustee must cure most defaults under the agreement and provide "adequate assurance" of the assignee's future performance. However, the Bankruptcy Code provides no guidance as to the meaning of "adequate assurance" other than with respect to shopping center leases. In In re Broadway Realty I Co. LLC, No. 25-11050, 2026 WL 147505 (Bankr. S.D.N.Y. Jan. 19, 2026), the U.S. Bankruptcy Court for the Southern District of New York examined this issue in connection with a proposed assignment of thousands of residential leases as part of a free-and-clear sale of debtors' properties. The court held that "adequate assurance" does not mean a guarantee of the assignee's future performance, but merely demonstration that the assignee has the ability to satisfy the underlying obligations. The bankruptcy court also ruled that an exculpation provision in the debtors' chapter 11 plan exonerating non-estate fiduciaries from liability for actions taken in connection with the chapter 11 case was unobjectionable, provided it was limited in scope to postpetition conduct and actions taken in connection with implementation of the plan after its effective date. [read more …] Newsworthy Corinne Ball (New York) (Hall of Fame), Bruce Bennett (Los Angeles), Carl E. Black (Cleveland), Jeffrey B. Ellman (Atlanta), Brad B. Erens (Chicago), Gregory M. Gordon (Dallas), Heather Lennox (Cleveland/New York), Joshua M. Mester (Los Angeles), and Kevyn D. Orr (Washington) were included in the 2026 edition of Lawdragon 500 Leading Bankruptcy and Restructuring Lawyers. The Daily Business Review selected Isel M. Perez (Miami) as an "On the Rise" winner for the Florida Legal Awards. The Florida Legal Awards annually recognize those who have made significant contributions to the legal industry in Florida. Dan T. Moss (Washington/New York) was inducted as a Fellow in the 37th Class of the American College of Bankruptcy at its Annual Meeting in March 2026 in San Antonio, Texas. Christine Borries (Munich) was ranked in the practice area Restructuring/Insolvency in the 2026 edition of Chambers Germany. The 2027 edition of The Best Lawyers in Singapore™ recognized Sushma Jobanputra (Singapore) in the practice area Insolvency & Reorganization. The restructuring transaction involving Eissmann Automotive North America, Inc. received the "2025 Turnaround of the Year (Large Company)" at the Turnaround Management Association (Detroit) Annual Awards Reception. T. Daniel Reynolds (Cleveland) and Nick Buchta (Cleveland) represented subsidiaries of Eissmann Group Automotive in connection with the parent company's German insolvency proceedings. Roger Dobson (Sydney) is among 40 Jones Day lawyers recognized by The Best Lawyers in Australia 2027 for his contributions in Banking and Finance Law; Distressed Investing & Debt Trading; Insolvency and Reorganization Law; Litigation. An article written by Corinne Ball (New York) titled "Ard Finance—A Global Enterprise Combining an LME With a Foreign Insolvency Proceeding and Chapter 15" was published in the April 21, 2026, edition of the New York Law Journal. An article written by Alex Sapp (New York) titled "Recent Developments in Section 510—Subordination" was published in the 2025 edition of the Norton Annual Survey on Bankruptcy Law. An article written by Brad B. Erens (Chicago) titled "New York Bankruptcy Court Approves Insider DIP Litigation Financing" was published on April 6, 2026, by Lexis Practical Guidance. An article written by Corinne Ball (New York), Dan T. Moss (Washington/New York), David S. Torborg (Washington), and Isel M. Perez (Miami) titled "New York District Court Affirms Narrow Scope of 'Public Policy Exception' in Chapter 15 Cases" was published on April 6, 2026, by Lexis Practical Guidance. An article written by Jeffrey B. Ellman (Atlanta) titled "Statutory Cap on Lease Rejection Damage Claims in Bankruptcy Applies to Solvent Debtors" was published on April 6, 2026, by Lexis Practical Guidance. An article written by Trisha L. Mowbray (Real Estate; Chicago) and Ryan Sims (Washington) titled "Chapter 11 Plan that Abridged Non-Debtor Lessee's Rights to Remain in Possession After Rejection Unconfirmable as Having Been Proposed in Bad Faith" was published on April 6, 2026, by Lexis Practical Guidance. Lawyer Spotlight: Ben Rosenblum Ben Rosenblum, a partner in the New York Office, represents debtors, creditors, and other parties in out-of-court restructurings and court-supervised proceedings, including chapter 11 cases, municipal bankruptcies, international insolvency matters, and stockbroker liquidations. His experience spans industries such as manufacturing, shipping, mining, aviation, energy, real estate, and telecommunications. Ben's notable debtor representations include Peabody Energy, the City of Detroit, Chrysler LLC, Spansion Japan, and Dana Corporation. Significant creditor representations include General Maritime Corporation, Calpine Corporation, American Home Mortgage, and Murray Energy. He currently represents creditors in Puerto Rico's restructuring. He also has extensive experience advising financial institutions on bankruptcy law as applied to derivatives.
City Files Suit Regarding Proposed Business
The City of Greenville has filed a lawsuit in Bond County Circuit Court against the company and three individuals who proposed a sports bar/restaurant business in the former Watson’s Drug Store building on the Greenville square. Named as defendants are W.G.O. Investments, LLC, and member managers of the developer, Joseph Gira, Tim O’Donnell and Dan
Colorado Supreme Court to decide whether out-of-state defendant may be prosecuted for in-state crime
The Colorado Supreme Court recently announced that it will decide whether Douglas County prosecutors had grounds to pursue criminal charges against a woman in New York whose conduct occurred outside of Colorado. Erin Brennan and her children lived in New York, and her ex-husband moved to Colorado after their divorce. In 2022, she proposed a […]
Epic et al. dismiss a defendant in patient-data lawsuit
SelfRx has been permanently dropped from a suit naming Health Gorilla and several of its customers after the defunct company's founder claimed retrieval of more than 100,000 medical records was unauthorized.
Mental Health Courts Offer People Facing Prison an Imperfect Alternative
Hundreds of U.S. courts offer treatment over prison for some defendants with mental illness. But critics say mental health courts have outpaced research on their effectiveness.
Tunisian court sentences Ennahdha leader Rached Ghannouchi to life in prison
Opposition leader and dozens of other defendants handed lengthy prison terms for 'forming a terrorist alliance'.
Lawsuits and political blowback don’t dim interest in $1.8B ‘Anti-Weaponization Fund’
Trump allies, Jan. 6 defendants and those pardoned for crimes during the Biden administration say they’d like a piece of the massive money pot. But challenges remain.
Meta settles first U.S. case over school costs tied to youth mental health, court filing shows
The agreement fully resolves a lawsuit brought by a Kentucky school district following earlier settlements by co-defendants YouTube, Snap and TikTok.
Couple sues Maine health providers, accusing radiologist of overlooking warning sign of stroke
The lawsuit is the first known medical malpractice case filed in Maine's federal court against a non-governmental defendant since a landmark U.S. Supreme Court decision, attorney says.
Young Dolph Shooter Pleads Guilty, Concluding Rapper’s Murder Case
Cornelius Smith Jr., who previously admitted to shooting the rapper at a co-defendant's trial, sentenced to 20 years in prison
Seattle small business owners devastated by break-ins as commercial burglary cases flood King County courts
Several defendants faced arraignment in King County court Monday on commercial burglary charges, cases that prosecutors said illustrate an ongoing problem devastating small business owners.
Quid pro no-no: When campaign contributions become a crime
When prosecutors criminalize politics, democracy becomes the defendant.
DOJ unveils West Coast ‘Strike Force’ as new tactic used to tackle healthcare fraud
Federal authorities said the shift to regional “Strike Force” models have been shown to be successful, with 6,200 defendants prosecuted nationwide. The DOJ said this latest unit will take a special interest in Northern California.
Joe Gibbs Racing intends to amend Spire, Gabehart lawsuit
The defendants had a response due on Monday that it now moot
Supreme Court Permits Gamesmanship in Small Business Lawsuits
NFIB is disappointed by the U.S. Supreme Court's decision in the case Enbridge v. Nessel, which concerns a defendant's right to remove a case to federal court.
A New Case Exposed the Clever Workaround the FBI Uses to Read 'Secure' Messages on iPhones
Law enforcement used Apple's push notifications database to gather messages sent through Signal, and convict defendants for terrorism activities.
Gov. Laura Kelly signs bills altering defendant competency process, child health care program
Gov. Laura Kelly announces the signing of more than 50 bills approved by the 2026 Kansas Legislature.
How the FBI Extracted Deleted Signal Messages From a Defendant's iPhone
The FBI was able to pull Signal messages from a defendant's iPhone—even though that user had deleted the app. Here's how they did it.
Judge tosses Blake Lively’s sexual harassment claims against Justin Baldoni one month before trial
A federal judge tossed out all of Blake Lively’s legal claims against her “It Ends With Us” director Justin Baldoni, leaving only three claims against other defendants to be addressed at the upcoming trial.
Despite court order, defendants waiting for mental health help still in jail
Oklahoma jails hold hundreds of people found incompetent to stand trial, awaiting mental health treatment for months.
Mental health petition denied in San Jose daycare drowning case as trial approaches
More than two years after the tragic drowning deaths of two toddlers at a San Jose home daycare, the criminal case against the daycare’s owners, Nina Fathizadeh and Shahin Gheblehshenas, continues to move forward after repeated delays. This week, a judge denied a mental health diversion petition by one of the defendants to avoid prison time, setting the stage for a jury trial scheduled to begin next week.
Hundreds of Missouri inmates need court-ordered mental health services. The waitlist is growing
Missouri Mental Health Director Valerie Huhn told state lawmakers that the department and courts need options to get defendants treatment in their communities.
Pardoned January 6 defendant runs for Florida political office
Adam Johnson served 75 days in prison before being pardoned by Donald Trump in January 2025
Mike Tyson, Ric Flair Sue Ex-Partners in Weed Business for $50M
The suit claims the defendants used cannabis company Carma as their "personal piggy bank, using more than $1 million" for personal expenses.
2 defendants in 'Buffalo Billion' case agree to plea deal to avoid retrial
Documents say Steven Aiello and Joseph Gerardi have pleaded guilty to one count of conspiracy to commit wire fraud.
Prosecutors claim Terry Rozier paying for co-defendant's legal defense in sports betting case
An attorney for the Miami Heat guard didn't deny that his client has helped childhood friend and co-defendant Deniro Laster.
Kroenke Sports and SoFi Stadium are new defendants in Rose Bowl lawsuit against UCLA
Kroenke Sports & Entertainment and SoFi Stadium have been added as defendants in an amended complaint filed by the Rose Bowl Operating Co. and the City of Pasadena in Los Angeles Superior Court.