LJN Newsletters

The federal appeals court in Atlanta has rejected objections to the settlement of a securities fraud suit against HealthSouth. In re: HealthSouth Corporation Securities Litigation, Nos. 07-10701 and 07-11908.

A federal judge recently concluded in a widely reported option backdating case that the California law firm Irell & Manella had "compromised ' important principles" involving the "fair administration of justice."

The Madoff detention litigation has revived longstanding questions about whether pretrial detention can ever be based solely on economic dangerousness. This article discusses the issue in depth.

Highlights of the latest equipment leasing news from around the country.

The most recent results of Nassau Asset Management's NasTrac Quarterly Index show that the company's level of repossession and liquidation activity for the first quarter has risen significantly over the past year in the construction equipment and machine tool categories, while also showing continued high activity in trucking.

Who's doing what; who's going where.

The U.S. Court of Appeals for the Seventh Circuit held on May 5, 2009, that two secured lenders were fully secured, "entitled to a full recovery" from the debtor despite the bankruptcy court's improper valuation of the collateral (improved airport terminal space) securing the lenders' underlying $60 million loan. In re United Air Lines, Inc.

In 2005, Congress added Code ' 503(b)(9) and created a new administrative claim which, in effect, creates a class of "critical" pre-petition creditors that debtors can pay without court authority. The creditors in this entitled class did nothing more than deliver goods to the debtor within 20 days prior to the petition date. Interestingly, the section provides no similar relief to providers of services or any class of lender.