bankruptcy court

Former Colorado Avalanche defenseman Jack Johnson is back in the NHL news after his parents were sentenced to federal prison as part of a bankruptcy fraud investigation in Pennsylvania. The case recalls one of the biggest financial scandals in hockey, with Johnson said to have lost millions during his NHL career, before restoring his reputation and finally winning the Stanley Cup with the Colorado Avalanche.

Erika Jayne has reportedly settled a USD 25 million bankruptcy lawsuit just days before a crucial trial hearing. The singer and reality star faced allegations of using funds from her ex-husband's law firm for personal expenses. While most settlement details remain confidential, both parties have agreed to dismiss the case without prejudice, averting a public court battle.

Trial Against Former Promoters Continues

Edtech giant Byju's founder Byju Raveendran received a six-month prison sentence in Singapore for contempt of court over asset disclosure non-compliance. This latest setback adds to the company's mounting legal woes, including fund diversion allegations and creditor claims, marking a significant downfall for the once-celebrated startup.

Fintech startup Parker, known for its corporate credit cards and banking services for e-commerce businesses, has filed for Chapter 7 bankruptcy. Despite raising over $200 million, the company reportedly shut down abruptly after acquisition talks failed. This leaves its small business customers in a difficult situation regarding access to funds.

EY Canada has removed an AI-generated report on loyalty rewards programs after researchers discovered significant errors, including fabricated data and non-existent citations. The consulting firm is now reviewing the publication process for the report, which was used to market cybersecurity services. This incident highlights growing concerns about AI accuracy in professional services.

Shedeur Sanders reacted online after fresh developments emerged in brother Shilo Sanders’ ongoing $11 million legal battle. Ahead of the August 2026 bankruptcy trial, Shilo’s legal team reportedly filed new motions seeking to block certain evidence from court proceedings. Shedeur’s brief Instagram response quickly went viral as fans discussed the latest twist surrounding the Sanders family. The case traces back to a 2015 incident involving a school security guard and has remained in headlines due to bankruptcy filings, court rulings, and fresh legal developments.

Spirit Airlines has ceased operations after decades of making air travel affordable. TikTok founder Hunter Peterson has launched a movement to "nationalise" the airline with collective ownership. This initiative, inspired by the Green Bay Packers model, aims to shift focus from profit to service. Millions have pledged support, showing a growing trend in crowd-equity perception.

Byju's, once a $22 billion edtech giant, has collapsed. Founder Byju Raveendran faces jail for contempt. The remarkable thing about Byju’s is that it did not begin as a cynical idea. There was something authentic at its core. That is partly why the collapse feels so dramatic

Spirit Airlines, a prominent low-cost carrier, has ceased operations after 34 years, citing an immediate shutdown. The airline's abrupt closure follows failed federal intervention and mounting financial losses exceeding $2.5 billion since 2020. This development impacts approximately 17,000 employees and cost-conscious travelers.

The Supreme Court has taken suo motu action, highlighting severe infrastructure and vacancy issues plaguing the National Company Law Tribunals (NCLT). These deficiencies are causing significant delays in crucial insolvency and bankruptcy cases, potentially undermining the Insolvency and Bankruptcy Code's objectives. The court emphasized the urgent need for immediate remedial measures to prevent further frustration of the IBC's purpose.

Sullivan & Cromwell has apologized to a Federal judge for AI-driven errors in a bankruptcy case filing. The motion contained fictitious case names, fabricated quotes, and non-existent statutes, attributed to "AI hallucinations." The firm stated it failed to follow its verification protocols, regretting the burden on the court and parties involved.

Former Microsoft CEO Steve Ballmer is furious after losing $60 million to fintech founder Joseph Sanberg's Aspiration Partners. Sanberg defrauded investors with false environmental claims. Ballmer's reputation suffered, leading to a public campaign against him and an NBA investigation. Sanberg's plea deal and sentencing are pending.