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Bankruptcy

Porter Hedges, Latham Lead Vroom’s Bankruptcy

Houston-headquartered Vroom Inc. filed for Chapter 11 bankruptcy protection Thursday in the Southern District of Texas, citing about $305 million in liabilities but only $44 million in assets. An automotive finance company and digital service platform for car retailers, Vroom selected Porter Hedges as its lead legal advisor and Latham & Watkins as special advisory counsel. The company also selected Stout Risius Ross as its financial advisor and Verita Global as claims and noticing agent.

Mark Curriden

J&J Talc Bankruptcy Judge: ‘Their Voices Must Be Heard’

U.S. Bankruptcy Judge Christopher Lopez told all sides in the Johnson & Johnson talc powder bankruptcy litigation Tuesday that he will “get a big pot of coffee” and spend the weekend in his office going through more than 11,500 disputed votes in order to get an accurate number of claimants supporting and opposing J&J’s $8.2 billion settlement plan. New Jersey-based J&J created a new Texas-headquartered subsidiary in September called Red River Talc and used a Texas law to transfer all its potential liabilities from tens of thousands of lawsuits filed against J&J by women who claim they have ovarian cancer because they used J&J’s talc powder. But there's a dispute over 11,500 votes that were switched from voting against J&J's forced bankruptcy plan to being in favor.

Mark Curriden

McDermott Advising Wellpath on SDTX Bankruptcy

A Nashville-based healthcare services company that focuses on treating incarcerated inmates filed for Chapter 11 bankruptcy protection in Houston Monday, claiming more than $1 billion in liabilities and an equal amount in assets. Wellpath Holdings and about 40 of its affiliated companies, which served about 3,000 in 2023 and reported revenues of $425 million, filed for bankruptcy in the Southern District of Texas. The case has been assigned to Judge Alfredo Perez.

Mark Curriden

A Texas Two-Step Showdown: J&J Talc Powder, $8B and Claims of Bankruptcy Fraud

Lawyers representing tens of thousands of women — including 465 from Dallas/Fort Worth and a total of 2,558 from Texas — will face off with each other and against pharmaceutical giant Johnson & Johnson in a Houston courtroom this week to determine the legitimacy of an $8.2 billion settlement agreement proposed by J&J to end all lawsuits brought by women who claim the company’s talc powder caused their ovarian cancer.

Trial lawyers representing thousands of the women claim the settlement is a farce and a fraudulent attempt by one of America’s most iconic and profitable corporations to use the federal bankruptcy system to force victims to accept their proposal and shield itself and its shareholders from billions of dollars more in potential liability. They and the U.S. Trustee want Judge Christopher Lopez to intervene.

Mark Curriden

Foley Advises TGI Friday’s in Bankruptcy Filing

TGI Friday’s Inc. and 23 of its subsidiaries filed for Chapter 11 bankruptcy protection in the Northern District of Texas over the weekend. In its bankruptcy petition, TGI Friday’s claims $100 million to $500 million in debts and the same range for assets. The Dallas-based company owns 39 actual bar-and-grill restaurants across the U.S. None of the TGI Friday’s franchised operations are part of the Chapter 11.

Mark Curriden

Jackson Walker Bankruptcy Fee Trial Pushed to April

During a roughly 80-minute hearing Tuesday, Chief U.S. Bankruptcy Judge Eduardo V. Rodriguez set an April 21 trial date in the litigation that will determine whether the U.S. trustee can claw back millions in bankruptcy fees awarded to Jackson Walker in cases handled by former judge David Jones. The court has given the parties until Dec. 2 to file dispositive motions in the case.

Michelle Casady

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