WILMINGTON, Del. - The Tribune Co. officially emerged from Chapter 11 bankruptcy on Dec. 31 as the bankruptcy judge in the U.S. Bankruptcy Court for the District of Delaware confirmed the company's fourth amended plan of reorganization, which will be funded by $1.4 billion in new loans (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - The Chapter 7 trustee in the bankruptcy proceeding of Open Range Communications Inc. on Dec. 18 filed an emergency motion in the U.S. Bankruptcy Court for the District of Delaware calling for an order approving a settlement between himself and a group of defendants to avoid costly and complex litigation the trustee has filed to recover assets for the bankruptcy estate (Charles M. Forman v. One Equity Partners III, et al. [In Re: Open Range Communications Inc.], Adv. Proc. No. 12-50739, No. 11-13188, Chapter 7, D. Del. Bkcy.).
NEW YORK - Bankrupt pharmaceutical firm K-V Discovery Solutions Inc. on Dec. 11 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of an $85 million deal for post-petition financing, which the company says will enable it to emerge from Chapter 11 bankruptcy (In Re: K-V Discovery Solutions Inc, No. 12-113346, Chapter 11, S.D. N.Y. Bkcy.).
WASHINGTON, D.C. - Standard Chartered Bank (SCB) has agreed to the forfeiture of $227 million to the U.S. Department of Justice and to pay a $100 million penalty to the Federal Reserve Board for violating the International Emergency Economic Powers Act (IEEPA) by engaging in what is being deemed illegal transactions with a number of sanctioned entities, according to a press release issued on Dec. 11 by the U.S. Attorney's Office for the District of Columbia.
KANSAS CITY, Mo. - The Western District Missouri Court of Appeals, Division Two, on Dec. 4 affirmed a trial court ruling denying Medicaid coverage for kidney dialysis treatment to a "legal alien." The appeals court concluded that while a legal alien may receive Medicaid benefits after living in the country for five years or more, or for seeking emergency treatment, the plaintiff had resided in the United States for only three years and her condition was not considered an emergency under state and federal law (Bertha Cruz v. Mo. Department of Social Services, No. WD74667, Mo. App., Western Dist., Div. 2; 2012 Mo. App. LEXIS 1537).
ATLANTA - The Georgia Court of Appeals on Nov. 28 overturned summary judgment for the defendants in a medical malpractice action, concluding that the plaintiffs presented evidence showing that a delay in proper medical attention led to a man's finger being amputated (Ryan S. Dailey, et al. v. Dr. Gihan Abdul-Samed, et al., No. A12A1109, Ga. App.; 2012 Ga. App. LEXIS 1002).
WILMINGTON, Del. - A group of secured creditors in the Chapter 11 bankruptcy of alternative energy company Satcon Technology Corp. (STC) on Nov. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the debtor's emergency motion seeking authorization to enter a settlement in which it would incur post-petition trade debt (In Re: Satcon Technology Corporation, No. 12-12869, Chapter 11, D. Del. Bkcy.).
NEW YORK - The chairman of the restructuring group in the Chapter 11 bankruptcy case of Eastman Kodak Co. on Nov. 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should approve additional post-petition funding for Kodak to emerge from bankruptcy quickly (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
CHICAGO - Bankrupt Tribune Co. on Nov. 16 issued a statement in which it said that based on the approval it has gained from the Federal Communications Commission for broadcast licenses, the company will be able to emerge from Chapter 11 bankruptcy (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). Subscriber may view the statement available within the full article.
ALBANY, N.Y. - The New York Court of Appeals on Oct. 30 affirmed an appellate court order that the state's Department Of Health failed, and will likely continue to fail, to timely respond to requests for emergency medical assistance benefits. The high court agreed that the "likely to recur" mootness doctrine should be applied to the plaintiff's claim seeking damages for lack of notification of benefits availability (Barbara Coleman, etc., v. Richard F. Daines, M.D., etc., No. 152, N.Y. App.; 2012 N.Y. LEXIS 3263).
ATWATER, Calif. - An official in the City of Atwater, Calif., on Oct. 8 confirmed that the City Council has declared a fiscal emergency, which is seen as the first step toward officially filing for Chapter 9 bankruptcy.
ATWATER, Calif. - The Atwater City Council on Sept. 19 issued a report in which it recommended that the city manager declare a fiscal emergency pursuant to state code in order to prepare the way for the municipality to file a Chapter 9 bankruptcy petition.
SEATTLE - Student loan borrowers and a subsidiary of SLM Corp. on Sept. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular telephones in an attempt to collect on outstanding student loan debt, according to documents filed in a Washington federal court (Mark A. Arthur, et al. v. Sallie Mae Inc., No. 10-0198, W.D. Wash.).
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SACRAMENTO, Calif. - A California federal judge on Sept. 6 denied a defendant's request for an emergency stay in a longstanding trademark infringement case (CytoSport Inc. v. Vital Pharmaceuticals Inc., No. 08-2632, E.D. Calif.). Subscribers may view the decision available within the full article.
PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Sept. 10 dismissed as moot a creditor's motion seeking an emergency stay of a bond order in the Chapter 11 bankruptcy proceeding of Tribune Co. (In Re: Tribune Company, No. 12-3437, Chapter 11, 3rd Cir.). Subscribers may view the order available within the full article.
LOS ANGELES - The Ninth Circuit U.S. Court of Appeals on Sept. 6 accepted Lorillard Tobacco Co.'s appeal of a remand order and ordered expedited briefing but denied its emergency motion seeking to stay the state court asbestos case set for trial (Dimitris O. Couscouris, et al. v. Hatch Grinding Wheels Inc., et al., No. 12-56446, 9th Cir.).Subscribers may view the order available within the full article.
SAN BERNARDINO, Calif. - The City Council for San Bernardino, Calif., on Sept. 5 approved an emergency budget that will reduce expenses by 30 percent and aims to reduce the city's $45 million deficit to slightly more than $16.42 million (In Re: City of San Bernardino, California, No. 12-28006, Chapter 9, C.D. Calif. Bkcy.). Subscribers may view the emergency budget available within the full article.
NEW YORK - The CEO of bankrupt Hostess Brands Inc. on Aug. 20 sent a letter to employees indicating that the company had reached a breakthrough with its largest union regarding modification to the collective bargaining agreement (CBA), which may help pave the way for Hostess to emerge from bankruptcy (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
SAN BERNARDINO, Calif. - The San Bernardino City Council on July 18 voted 5-2 to declare a fiscal emergency, which allows it to file Chapter 9 bankruptcy without first negotiating with its creditors. City officials said they expect to file a petition in the next 30 days.
NEW YORK - Bankrupt grocer The Great Atlantic & Pacific Tea Co. on July 6 moved in the U.S. Bankruptcy Court for the Southern District of New York to enforce an agreement with one of its unions that had agreed to make cost reductions to help the company emerge from Chapter 11 bankruptcy (In Re: The Great Atlantic & Pacific Tea Company Inc., No. 10-24549, S.D. N.Y. Bkcy).
HARRISBURG, Pa. - The Harrisburg City Council sued Pennsylvania Gov. Thomas W. Corbett in the U.S. District Court for the Middle District of Pennsylvania on June 26, arguing that the governor violated the due process clause of the U.S. Constitution when he declared the fiscal emergency that led to the city's filing for Chapter 9 bankruptcy (Wanda R.D. Williams, et al. v. Governor Thomas W. Corbett, No. 12-1211, M.D. Pa.). Subscribers may view details of the complaint available within the full article.
ABERDEEN, Miss. - Citing a lack of subject-matter jurisdiction, a Mississippi federal senior judge on June 11 granted a motion by the Federal Emergency Management Agency to dismiss Kmart Corp.'s lawsuit seeking recovery of flood damage to one of its Mississippi stores (Kmart Corporation v. The Kroger Co., et al., No. 1:11-CV-001-03-GHD-DAS, N.D. Miss., Eastern Div.; 2012 U.S. Dist. LEXIS 80218).
BOSTON - Orthofix Inc. on June 7 pleaded guilty to a federal felony count of obstructing a federal audit and agreed to pay nearly $42 million in criminal fines and civil penalties for illegal promotion of its bone-growth stimulators (United States of America v. Orthofix, Inc., No. 1:12-cr-10169, United States of America, ex rel. Jeffrey Bierman v. Orthofix International, N.V., et al., No. 1:05-cv-10557, D. Mass.). Review a complimentary copy of the complete Mealey's Emerging Drugs & Devices Bulletin.
PHILADELPHIA - A black emergency medical technician who suffers from attention deficit hyperactivity disorder (ADHD) failed to show that the ambulance company he worked for discriminated against him because of his race but did make a prima facie showing that he was fired because of his disability, a Pennsylvania federal judge held June 5 (Michael McCarty v. Marple Township Ambulance Corps, No. 10-5747, E.D. Pa.; 2012 U.S. Dist. LEXIS 77519).
NEW ORLEANS - In anticipation of the September fairness hearing to consider the certification of a settlement class and approval of a global settlement in the multidistrict Federal Emergency Management Agency formaldehyde trailer litigation consolidated in the U.S. District Court for the Eastern District of Louisiana, joint stipulations of settlement with contractor defendants and additional emergency housing unit manufacturers were filed May 29 (In re: FEMA Trailer Formaldehyde Products Liability Litigation, No. 07-1873, MDL 1873, E.D. La.). Subscribers may view the joint stipulation of contractor settlement, individual settlement sheets, joint memorandum and manufacturer settlement sheets available within the full update.