Articles Tagged: Bankruptcy


Judicial Conference Moves Forward on AI Governance and Broader Remote Access to Court Proceedings

The federal judiciary is continuing to formalize its approach to artificial intelligence while also widening public remote access to civil and bankruptcy proceedings beyond what existed before the pandemic. The latest report from the Judicial Conference signals that both issues are now firmly part of long-term court administration rather than temporary or experimental measures.

On the AI front, the significance is less about a single headline rule and more about institutional direction.

Texas Judge Confirms Omnicare Chapter 11 Plan After Sale and DOJ Deal

A Texas bankruptcy judge has approved the Chapter 11 plan for CVS subsidiary Omnicare, marking the latest turn in a restructuring shaped by both an asset sale and a settlement with the U.S. Department of Justice. The confirmation is notable not just because it advances Omnicare’s exit from bankruptcy, but because it shows how a company facing major healthcare-related liabilities can use Chapter 11 to resolve overlapping business, litigation, and government enforcement problems in a single forum.

The Omnicare case drew attention after the company was hit with a massive fraud judgment, creating pressure on its balance sheet and forcing hard questions about how private claimants, federal enforcement interests, and the debtor’s remaining enterprise value could be reconciled.

Second Circuit Bolsters FDIC Setoff Rights in SVB Bankruptcy Dispute

The Second Circuit delivered an important win to the FDIC in litigation arising from the collapse of Silicon Valley Bank, holding that the agency did not need to file claims in the parent company’s bankruptcy case to preserve defensive setoff rights. The ruling strengthens the FDIC’s hand as receiver and clarifies how bank receivership powers intersect with bankruptcy procedure in one of the most closely watched financial-failure disputes in years.

At the center of the fight is SVB Financial Group’s effort to recover roughly $1.7 billion in deposits.

J&J’s $5.5 Billion Talc Deal Signals a New Phase in Ovarian-Cancer Litigation

Johnson Johnson has announced a proposed $5.5 billion global resolution aimed at settling tens of thousands of lawsuits alleging its talcum powder products caused ovarian cancer, a major development in one of the country’s most closely watched mass torts.

23andMe’s $64.75M Breach Fallout Deepens With Multistate AG Deal

23andMe’s data-breach exposure grew again this week, as a coalition of more than 40 state attorneys general announced they will share in an additional $18 million resolution over alleged unreasonable security practices. The state deal follows a bankruptcy court’s approval of a separate $46.75 million settlement with private claimants, bringing the combined fallout to $64.75 million and underscoring how cyber incidents can trigger overlapping liability across private litigation, regulatory enforcement, and insolvency proceedings.

The underlying civil litigation has been centralized in the Northern District of California as IN RE: 23ANDME, Inc., Customer Data Security Breach Litigation, a multidistrict proceeding that has become a key docket for watching how courts handle privacy claims tied to alleged security failures involving highly sensitive consumer data.

Creditors’ Committee Pushes Emergency Motion to Compel in Texas Chapter 11

An emergency motion to compel filed by the Official Committee of Unsecured Creditors in this Texas Southern Bankruptcy Court Chapter 11 case is the kind of procedural fight that can quickly become outcome-determinative. At bottom, a creditors’ committee typically brings this kind of motion when it believes the debtor or another case stakeholder is not producing information fast enough—or fully enough—for the committee to perform its statutory oversight role.

In the Chapter 11 context, committees are charged with investigating the debtor’s financial affairs, scrutinizing transactions, and protecting unsecured creditor recoveries.

DOJ Secures $196,527 Refund Order Against Consumer Bankruptcy Firm

The Department of Justice’s U.S. Trustee Program said on April 17, 2026, that it obtained a judgment requiring a national consumer bankruptcy law firm to return $196,527 in fees to clients after finding deficient legal services and violations of the Bankruptcy Code. For bankruptcy practitioners and firms operating at scale, the judgment is a pointed reminder that fee collection, client service, and compliance obligations remain subject to close court and regulator scrutiny.

Although the announcement did not identify the firm in the summary provided, the outcome itself is notable.