Volume 2 Issue 4

Quarterly Newsletter

January 2025 minute read

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Industry News

Bankruptcy/Corporate Restructuring
The Delaware District Court recently reversed a bankruptcy court holding that a standard deviation can’t be the only test to prove the “ordinary course” defense to an alleged preference.  Rather, the standard deviation analysis must be accompanied by undisputed expert testimony.  A copy of the decision can be found here.
 
Bankruptcy trends to watch in 2025 can be found here.
 
Corporate/M&A
On December 3, 2024, in the matter Texas Top Cop Shop, Inc. v. Garland, et al., the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction staying the enforcement of the Corporate Transparency Act, in particular the Beneficial Ownership Information Reporting Rule.  The implications of the preliminary injunction are significant considering that entities formed prior to 2024 were required to file their initial reports by January 1, 2025.  A copy of the decision can be found here. Although the court granted the government’s motion for a stay pending appeal, the court ultimately vacated the stay, keeping the original injunction in place.
 
Commercial Litigation/ADR
On January 16, 2024, New Jersey Governor Phil Murphy signed into law Senate Bill 322, “An Act concerning online services, consumers, and personal data.”  The Act imposes unique obligations on businesses and will take effect on January 16, 2025. A copy of the Act can be found here.
 
Real Estate
​In November, New York City passed the Fairness in Apartment Rental Expenses Act, which requires the party that hired the real estate broker (typically is the landlord) to pay them. This may cause landlords to increase rental fees in the future. See here for more details.

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We're Hiring!

​We’re seeking talented and friendly attorneys.

​If you are interested in working at M&B, please contact ​[email protected].

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M&B Life

​The M&B Team enjoyed plenty of holiday cheer at their annual winter dinner in December! 

The M&B Team congratulates Pearl Shah Dalsania on her well-deserved promotion to Counsel.

In early January, Dave McGrail, Cynthia Botello and Steven Roz attended The Ames & Gough Law Firm Excellence Awards, where M&B was awarded the “Best Firm” at which to work! 

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M&B News

​Bankruptcy/Corporate Restructuring
On November 8, 2024, the U.S. District Court for the Southern District of New York affirmed the bankruptcy court’s ruling that the powers of a Subchapter V trustee cannot be expanded to pursue avoidance actions. Ilana Volkov and Veronique Urban served as co-counsel to class action plaintiffs who successfully obtained conversion of the Subchapter V case to Chapter 7.
 
Dave McGrail, Veronique Urban, and Robert Kern represented the successful bidder in its purchase of a concrete manufacturing business from a bankruptcy estate.  
 
Ilana Volkov is representing the “stalking horse” purchaser of a $13 million compostable sealant and barrier sealant films manufacturer in the United States Bankruptcy Court for the District of New Jersey.
 
Corporate/M&A
Mona Kaplan and Pearl Shah Dalsania represented sellers in the divestiture of their property management business for a purchase price of $18.75 million.
 
Mona Kaplan, Robert Kern, and Pearl Shah Dalsania represented sellers in the divestiture of their shipping optimization business.
 
Mona Kaplan and Robert Kern represented a buyer in its acquisition of a distressed outdoor wear company.
 
Commercial Litigation/ADR
In November, Ephraim Glatt assisted a lender in procuring a dismissal of a federal lawsuit bought by borrowers who defaulted on their loan.
 
In November Ephraim Glatt and Pearl Shah Dalsania assisted a defrauded investor in securing a judgment for over $350,000 against a company and its owner who orchestrated a Ponzi scheme.
 
In November, Kate McGrail, Patrick Train-Gutiérrez, and Cynthia Botello secured an award of over $1 million in unpaid rent, approximately $100,000 in pre-judgement interest, and $50,000 in attorneys’ fees in connection with a grant of summary judgment.
 
In December, Ephraim Glatt secured a favorable settlement for a healthcare company in a dispute with an insurance carrier.
 
In December, Patrick Train-Gutiérrez and Sophia Herbst secured a favorable settlement in mediation through JAMS in a multi-jurisdictional/multi-party negotiation regarding a loan guarantee.
 
Real Estate
Joshua Hager and Steven Roz represented a client in the first of four installments of their purchase of a $24 million portfolio of multi-family complexes.
 
Joshua Hager and Steven Roz successfully guided a client in the sale of its $68 million portfolio consisting of three long-term care facilities in Florida.
 
Joshua Hager and Steven Roz represented a foundation in the sale of two commercial condominium units in New York to a not-for-profit organization.