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A person who was not a creditor of a bankruptcy estate was entitled to actual notice of an injunction that would bar the non-creditor from suing the debtors’ insurance carriers, a federal court has ruled.
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The intersection of artificial intelligence and cryptocurrency was involved in a recent decision where the U.S. Bankruptcy Court for the District of Delaware dismissed claims against an alleged participant in a scheme that induced investors to fund over $30 million in an artificial intelligence company designed to generate revenue from enhanced cryptocurrency mining.
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Bankruptcy courts typically scrutinize transactions that attempt to shift the jurisdiction or activities of a debtor, prior to filing for bankruptcy, on the basis that such actions may thwart creditor expectations or accomplish other improper objectives.
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Plaintiff attorneys are grappling with the fear of the rise of big companies utilizing bankruptcy court to skirt large final or anticipated judgments. The most recent and high-profile example is Johnson & Johnson’s alleged attempt to utilize this move in its talc bankruptcy litigation.