SDTX Bankruptcy Court Scandal Timeline
2011: David Jones leaves Houston law firm Porter Hedges after 19 years as a corporate bankruptcy lawyer to become a bankruptcy judge in the Southern District of Texas. Jones later hires
GWG Bondholders Slam Dismissal Bids in RICO Suit
In four separate filings, GWG bondholders this week spoke out forcefully against requests from Jackson Walker, Porter Hedges, David Jones and Elizabeth Freeman to dismiss racketeering claims against them, doubling down on allegations that each party was enriched by keeping secret a “live-in, intimate relationship” between then-bankruptcy judge Jones and bankruptcy lawyer Freeman.
U.S. Trustee Again Voices Disapproval for Jackson Walker Bankruptcy Settlement
A filing this week marked the second time the U.S. Trustee’s Office, referred to as the watchdog of the bankruptcy system, has urged the presiding judge to reject proposed settlements the Dallas-based law firm has reached with its former bankruptcy clients.
Judge Says He Has Lost Sleep in Dr. Phil Bankruptcy Case, Takes Motion to Dismiss Under Advisement
The two-week-long hearing in the Dr. Phil McGraw bankruptcy case concluded Monday afternoon. Counsel presented their closing arguments to the Northern District bankruptcy court on whether the case should be dismissed or converted to a Chapter 7.
Jackson Walker Strikes 2 More Proposed Settlements in Bankruptcy Fee Cases
Strike Liquidating Trust and Auto Plus Auto Sales are among a handful of companies that have reached proposed settlements with Jackson Walker. Most recently, JCPenney reached a potential $1.4 million settlement with the law firm.
Auto Parts Financial Arm Files Bankruptcy in SDTX
In one of the largest and most complex corporate bankruptcy filings in Texas this year, the financial arm of global auto parts seller First Brands Group sought Chapter 11 protection today in the Southern District of Texas, citing between $1 billion and $10 billion in liabilities but only $500 million to $1 billion in assets. Weil is advising the debtors.
Dr. Phil Testifies in Merit Street Media Bankruptcy Case
Taut testimony was heard from Dr. Phil McGraw Tuesday in the bankruptcy case of his Merit Street Media. He will continue testifying Thursday. The hearing that began Sept. 16 and has spanned several days is expected to end on Monday.
Omnicare Hires Haynes Boone, Files for Bankruptcy in NDTX
Facing a $949 million federal court judgment for improperly billing charges to Medicaid, Medicare and Tricare, Rhode Island-headquartered pharmacy services company Omnicare Inc. filed for Chapter 11 bankruptcy protection Monday in the Northern District of Texas. The company stated the Chapter 11 filing will give it time to work on resolving the federal legal dispute, which is the huge majority of Omnicare’s liabilities.
Trustee for Bankrupt Financial Startup Sues Winston & Strawn
The trustee of a bankrupt financial services startup aimed at conservative customers that Winston & Strawn represented is suing the law firm and one of its partners for alleged malpractice. The trustee for GloriFi, seeking more than $1.7 billion in damages, claims Winston & Strawn schemed with the company’s founder, putting his interests over those of the business.
Winston & Strawn said it “will vigorously defend against these meritless claims, including the fanciful, billion-dollar lost value claim for a company that never opened its doors for business.”
David Jones Wants GWG Bondholders’ RICO Suit Tossed
The former jurist who resigned his position in the Southern District of Texas in the wake of reporting about his previously secret romantic relationship with a bankruptcy lawyer told the court he is entitled to complete immunity from the lawsuit brought by aggrieved GWG bondholders. “There can be no genuine dispute that Jones is entitled to absolute immunity from civil lawsuits arising from his role as a judicial mediator in the GWG bankruptcy cases under applicable law,” the motion to dismiss reads. (File photo by Brett Coomer/Houston Chronicle via Getty Images)
Hearing in Merit Street Media Case Premiered Tuesday
Northern District Bankruptcy Judge Scott Everett heard from counsel representing Dr. Phil’s Merit Street Media and Trinity Broadcasting Network Tuesday, who argued about whether the celebrity television psychologist acted in bad faith by filing for bankruptcy. The hearing on the motion to dismiss and partial summary judgment is expected to last through Thursday, and Dr. Phil is on the list of potential witnesses who will testify. (File photo by Andy Kropa/Invision/AP)
JCPenney Estate, Jackson Walker Reach Potential $1.4M Settlement
Jackson Walker, which represented JCPenney during its 2020 bankruptcy proceedings, has agreed to pay the estate of the department store $1.4 million as a result of a romantic relationship between a former partner and a former Houston bankruptcy judge. This latest settlement proposal requires the court’s approval, but the U.S. Trustee’s Office remains opposed to individual settlements.