Insights

A New York bankruptcy court has enjoined the State of Texas from prosecuting state court consumer protection litigation against General Motors to the extent that it involves facts that predate the General Motors 2009 bankruptcy. The decision, In re Motors Liquidation Co., shows the broad scope and effect of “Gatekeeper” injunctions and “free and clear” sale…

Client Alerts | November 5, 2025 | Business Restructuring and Reorganization | Creditors’ Rights and Bankruptcy Litigation

A Texas bankruptcy judge has ruled that a post-confirmation litigation trust has no obligations under a litigation funding agreement that had been completely drawn down because the litigation trustee was not authorized to obtain litigation funding. The decision, In re Fresh Acquisitions, LLC, demonstrates the uncertainties in post-confirmation estate administration and serves as a warning…

Client Alerts | September 2, 2025 | Creditors’ Rights and Bankruptcy Litigation | Securities and Corporate Finance

The Second Circuit Court of Appeals has ordered the dismissal of all clawback actions brought by the liquidators of a Madoff feeder fund against foreign investors who made withdrawals before the Madoff fraud was revealed to the public. The decision, In re Fairfield Sentry Ltd., demonstrates that the Safe Harbor — which provides protections from…

Client Alerts | August 14, 2025 | Creditors’ Rights and Bankruptcy Litigation

The Supreme Court has turned down a request to reinstate a bankruptcy court “Gatekeeper” injunction that shielded non-debtor parties from litigation. This injunction had been rejected by the Fifth Circuit Court of Appeals. The decision, Highland Capital Management, L.P. v. Nexpoint Advisors, L.P., shows the limits of bankruptcy court jurisdiction to enter Gatekeeper injunctions as…

Client Alerts | July 21, 2025 | Business Restructuring and Reorganization | Creditors’ Rights and Bankruptcy Litigation

A recent decision by the Third Circuit Court of Appeals has reversed a Delaware bankruptcy court decision and directed the appointment of an examiner over the objection of the debtors and the official committee of unsecured creditors. The decision, In re FTX Trading Ltd., will provide a public accounting of the implosion of FTX, gives…

Client Alerts | January 29, 2024 | Creditors’ Rights and Bankruptcy Litigation | Digital Assets and Cryptocurrency