Opening The Black Box Of Generative AI: Explainability In Bankruptcy Cases

By now, most of us have heard a story about the misuse of generative AI in the practice of law: the attorney who cited a case that didn’t exist,1 or the expert witness who relied on generative AI to create an expert report without independently verifying its contents.2

While these professionals’ willingness to be early adopters of new technology is admirable, both missed a critical step: supplementing artificial intelligence with human intelligence. While generative AI is […]

By | Oct 05, 2024 ||

Ohio Bankruptcy Court Offers Guidance On (The Amended) Ordinary Course Payment Preference Defense

To encourage vendors and other creditors to continue doing business with financially distressed entities, the Bankruptcy Code includes various defenses to litigation brought by a bankruptcy trustee or chapter 11 debtor-in-possession (“DIP”) seeking to avoid pre-bankruptcy payments to such entities. One of these defenses shields from avoidance transfers made to pay debts incurred in the ordinary course of business of the debtor and the transferee. Until lawmakers amended the Bankruptcy Code in 2005 as […]

By | Oct 03, 2024 ||

Proposed Legislation Targets “Texas Two-Step” Bankruptcy Tactic

On July 23, 2024, a bipartisan group of senators and representatives introduced the Ending Corporate Bankruptcy Abuse Act of 2024 (the Act). This proposed legislation aims to curtail the use of an increasingly common controversial corporate bankruptcy strategy known as the “Texas Two-Step,” which has been employed by several major companies, including Johnson & Johnson, to address mass tort liabilities.

The Texas Two-Step typically involves a company using a “divisional merger” to split into two entities: One […]

By | Oct 01, 2024 ||