Will The Texas Two-Step Create New Restructuring Opportunities For Companies Facing Mass Tort Liabilities?
Johnson & Johnson is using the bankruptcy code and a relatively obscure Texas statute in an attempt to limit its overall exposure to mass tort litigation over asbestos in the talc used in its baby powder products. This strategy, dubbed the “Texas Two-Step” by its critics, involved Johnson & Johnson first converting to a Texas…
Read MoreConsumer Protection Acts: What to Know for Businesses – Part One
Every state has a consumer protection law that prohibits deceptive business practices, with many prohibiting unfair or unconscionable practices as well. These statutes, commonly known as Unfair and Deceptive Act and Practice (“UDAP”) statutes, are intended to provide specific protections and remedies for consumers in the marketplace. UDAP laws have very broad language and cover…
Read MoreWill My Last Will and Testament Dispose of My Assets?
The importance of establishing a Last Will and Testament (“Will”) or other testamentary substitute(s) (such as a revocable trust) for all competent adults to dispose of their assets at death cannot be overstated. Without a formal plan for distributing assets to a client’s beneficiaries provided in a Will or trust, the intestacy laws of the…
Read MoreNew Standards for Phase I Environmental Site Assessments: Impact on Owner & Lender Liability
Phase I Environmental Site Assessments (“Phase I”) are a commonly utilized assessment tool for environmental due diligence in most commercial real estate transactions in the United States. These site assessments and environmental reports provide purchasers and lenders with a summary of environmental concerns for the subject property and abutting properties, specifically as to the existence…
Read More“CROWDFUNDING”: MONEY RAISED MAY BE TAXABLE
On March 21, 2022, the IRS issued a fact sheet on the tax treatment of money received through crowdfunding. Crowdfunding is a method of raising money through the Internet by soliciting contributions from many people. In many cases, people establish crowdfunding campaigns to raise money for personal or social causes for themselves or others. In…
Read MoreCONSUMER-STYLE DISCLOSURES COMING TO A COMMERCIAL TRANSACTION NEAR YOU
New consumer-style disclosure laws for certain commercial finance providers are springing up throughout the United States. States such as Connecticut, Missouri, New Jersey, North Carolina, Maryland, Utah, and Virginia have introduced commercial finance disclosure bills which are in the various stages of legislation. Most notably, California and New York, have signed these bills into law,…
Read MoreSEC PROPOSED RULE CHANGE: INCREASED COMPLIANCE OBLIGATIONS AND NEW PROHIBITIONS FOR PRIVATE FUND ADVISERS
The Securities and Exchange Commission (“SEC”) announced on February 9, 2022, proposed rules and amendments (“Proposed Rules”) under the Investment Advisers Act of 1940 that would impose significant new requirements and prohibitions on investment advisers to hedge funds, private equity funds and other Investment Company Act Section 3(c)(1) or 3(c)(7) private funds, as well as…
Read MorePOST-COVID-19 PANDEMIC COMMERCIAL OFFICE SPACE LEASING
As the United States slowly emerges from the Covid-19 Pandemic (“Pandemic”), many U.S. companies are re-evaluating their post-Pandemic employee and staffing needs. The results of such re-evaluations will directly impact how many square feet of commercial office space the respective companies will require to operate of their businesses. Specifically, due to the Pandemic’s impact and…
Read MoreUSE OF NON-CONSENSUAL THIRD-PARTY RELEASES IN BANKRUPTCY PLANS HEADED TO THE SECOND CIRCUIT AND POSSIBLY BEYOND
The U.S. District Court for the Southern District of New York (the “District Court”) recently overturned the U.S. Bankruptcy Court for the Southern District of New York’s confirmation of drugmaker Purdue Pharma’s controversial Chapter 11 Bankruptcy Plan (the “Plan”). At issue was Purdue Pharma’s use of non-consensual releases of third parties in this case, a…
Read MoreDOES YOUR TRUST HAVE A PROTECTOR?
The appointment of a trustee is one of the more important decisions that clients establishing trusts face because the trustee controls the client/creator’s trust assets. According to law, the trustee serves as the trust’s fiduciary, holding and investing the assets for the benefit of the trust beneficiaries. This means that the trustee has both a…
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