Eye Care Center – Lutra Vision http://lutravision.com/ Tue, 20 Sep 2022 05:12:48 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://lutravision.com/wp-content/uploads/2021/11/lutra-vision-icon-120x120.jpg Eye Care Center – Lutra Vision http://lutravision.com/ 32 32 “Will wants to abolish the level system. I say yes!”: Broad support for Will Lehman’s campaign for UAW president at Michigan’s Ford Assembly https://lutravision.com/will-wants-to-abolish-the-level-system-i-say-yes-broad-support-for-will-lehmans-campaign-for-uaw-president-at-michigans-ford-assembly/ Tue, 20 Sep 2022 03:30:52 +0000 https://lutravision.com/will-wants-to-abolish-the-level-system-i-say-yes-broad-support-for-will-lehmans-campaign-for-uaw-president-at-michigans-ford-assembly/ The WSWS supported Will Lehman’s campaign for UAW President. For more information, visit WillforUAWPresident.org. Will Lehman’s campaign volunteers for United Auto Workers union presidency found strong support among autoworkers during the afternoon shift change at Ford Michigan Assembly in Wayne, Michigan, just west of Detroit on Friday. Lehman, a second-tier worker at Mack Trucks in […]]]>

The WSWS supported Will Lehman’s campaign for UAW President. For more information, visit WillforUAWPresident.org.

Will Lehman’s campaign volunteers for United Auto Workers union presidency found strong support among autoworkers during the afternoon shift change at Ford Michigan Assembly in Wayne, Michigan, just west of Detroit on Friday.

Lehman, a second-tier worker at Mack Trucks in Pennsylvania, calls for building a mass movement of rank-and-file workers to abolish the corrupt bureaucracy that has dominated the union for decades.

To lead a fight for what workers need – including ending the tier system, converting all temps to full-time status, a 50% pay rise, COLA increases to keep up with inflation , and more – Lehman advocates for the organization of rank-and-file committees in every factory and workplace, connecting workers in an international network.

Michigan Assembly employs approximately 4,600 hourly workers and produces the successful Bronco and Ranger light trucks. Many shift change workers said they had heard of the campaign before and supported it. “I get the text messages and plan to vote for him,” was a common refrain.

Rahim [Photo: WSWS]

Activists informed workers of the upcoming UAW presidential candidates debate is scheduled to take place on Thursday, September 22, hosted by the court-appointed UAW monitor. The UAW apparatus has essentially sought to conceal from workers that the debate is even taking place, without doing anything to make it public, with incumbent President Ray Curry and the bureaucracy he leads undoubtedly fearful of being challenged by a rank and file worker in front of a large audience.

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It’s time for a crypto crackdown – POLITICO https://lutravision.com/its-time-for-a-crypto-crackdown-politico/ Fri, 16 Sep 2022 12:00:00 +0000 https://lutravision.com/its-time-for-a-crypto-crackdown-politico/ This just in: The White House is beginning to solidify its stance on crypto. Six months after President Joe Biden signed an executive order requiring a whole-of-government assessment of U.S. digital asset policies, the Treasury Department and other federal agencies released a series of reports this morning that, among other things, encourage the Securities and […]]]>

This just in: The White House is beginning to solidify its stance on crypto.

Six months after President Joe Biden signed an executive order requiring a whole-of-government assessment of U.S. digital asset policies, the Treasury Department and other federal agencies released a series of reports this morning that, among other things, encourage the Securities and Exchange Commission and Commodity Futures Trading Commission to “aggressively pursue” investigations and enforcement action against crypto scams, fraud, and other illegal activities in the digital asset space.

“We recommend that agencies continue to rigorously pursue enforcement efforts focused on the crypto asset sector,” Treasury Secretary Janet Yellen said in a Thursday briefing. “Agencies should use existing powers to issue additional oversight guidance and new rules to address current and emerging risks. (Emphasis mine.)

Market regulators have so far avoided crafting new rules for digital asset firms following a crypto market meltdown that wiped out more than $2 trillion of the market value of cryptography.

Although administration officials said the unrest was their primary concern, they refrained from offering recommendations for specific regulations or laws that might address their concerns.

Officials said a separate report from the Financial Stability Supervisory Board will address some of those risks in the coming weeks. (This is already a priority for members of Congress, particularly on the Senate Agriculture Committee, but we’ll get to that in a moment).

Digital assets used for financial services present “real challenges and risks,” Yellen said. “At the same time, if these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities.”

For the moment, Crypto’s potential is most apparent in institutional clearing and settlement systems that are beyond the reach of Main Street consumers who have relied heavily on digital assets for trading, lending and borrowing, officials say. administration.

The reports also focus on the potential development of a crypto-friendly digital dollar – otherwise known as central bank digital currency. The Treasury recommends that US policymakers encourage the use of instant payment systems – which will soon include a Federal Reserve system known as FedNow – as it leads an interagency task force to support the project.

“These reports underscore and advance our understanding of the policy implications and technical choices surrounding a possible U.S. central bank digital currency should it be deemed to be in the national interest,” the Council’s director told reporters. National Economics, Brian Deese.

IT’S FRIDAY “And it’s a fine day to catch a train.” Please send tips, story ideas and feedback to [email protected].

University of Michigan consumer sentiment data released at 10 a.m.

SPEAKING OF CRYPTO — It was a big day at the Senate Agriculture Committee as Congress held its first hearing on proposed regulations for crypto markets that crumbled under the weight of their own hype earlier this year.

Of me: “The law project, S.4760sponsored by the chairman of the committee Debbie Stabenow (D-Mich.) and Sen.John Boozman (R-Ark.), marks the clearest effort by Congress to establish rules for a crypto market that crashed amid a series of scandals and bankruptcies earlier this year. The measure would give the CFTC the role of the industry’s primary regulator even as SEC Chairman Gary Gensler plans to bring high-level digital exchanges under his agency’s jurisdiction…’It’s not about us at the CFTC. It’s not about the SEC. This is the regulatory framework. These are the financial markets. This is about protecting customers,’ CFTC Chairman Rostin Behnam told senators Thursday.

TRAIN STRIKE AVOIDED — POLITICO’s Ben White and Eleanor Mueller: ‘President Joe Biden narrowly avoided an economic and political debacle on Thursday as senior administration officials helped salvage a last-minute tentative deal to avert a devastating railroad strike. iron. And it almost didn’t happen. To avert catastrophe, it took about 20 straight hours of talks beginning Wednesday that taxed Labor Department coffee supplies, kept West Wing office lights on for the first few hours, and left all people involved cloudy eyes and largely insomniac.

MAJOR CHANGE TO CFIUS — POLITICO’s Doug Palmer: “Administration officials said the first-ever presidential directive for the nearly 50-year-old Interagency Committee on Foreign Investment in the United States, or CFIUS, complements other work that the administration made for strengthen supply chains, strengthen U.S. technology leadership, and address the risks of handling sensitive data.”

THE BATTLE OVER FINTECH REGULATIONS IS HEATING — POLITICO’s Katy O’Donnell: “Banks and consumer lending advocates are teaming up to trying to get the Consumer Financial Protection Bureau to crack down on fintech companies that extend credit to consumers. The Center for Responsible Lending and the Consumer Bankers Association are jointly calling on the CFPB to develop a rule that would expand federal oversight to include the new generation of noncustodial lenders, according to letter sent by the two groups to the director of the CFPB, Rohit Chopra Thursday.”

THE GOLDMAN QUOTE — With market rates rising 75 basis points next week, economists at Goldman Sachs Research have updated their projections for the Fed’s December meeting by 25 basis points to 50 basis points, citing strength wages and persistent increases in housing, health care and education.

“We believe the Fed will guide the market into a period – possibly a very long period – of holding the fed funds rate steady at above neutral” after Tuesday’s CPI report, said Goldman’s Josh Schiffrin, co-head of US interest rate products and global interest rate products.

NOBODY KNOWS WHAT IT MEANS, BUT IT’S PROVOCATIVE — Vince Golle and Reade Pickert of Bloomberg: “[Thursday’s economic] data illustrate many economic cross-currents in which the Federal Reserve navigates as he attempts a soft landing for the economy while pressing the brakes on monetary policy harder to stamp out the fastest inflation in a generation.

DROP IN HOUSING — Also from Katy: “Mortgage rates have exceeded 6% for the first time since 2008, reported Freddie Mac on Thursday, as the Federal Reserve struggles to get inflation under control. Mortgage rates have more than doubled over the past year as the Fed raised borrowing costs in an effort to rein in soaring prices.

GOP BLASTS ESG — POLITICO’s Declan Harty: “GOP lawmakers have called on SEC Chairman Gary Gensler to justify his agency’s proposed rule to require publicly traded companies to publish more standardized information about the climate risks their companies pose. companies, warning that the proposal is unlikely to withstand legal challenges once finalized. »

ALANIS MORISSETTE SAYS THE AUDIT KNOWS — Also from Declan: “SEC Chairman Gary Gensler called for speeding up the timetable to expel Chinese and Hong Kong companies from US stock exchanges if the companies do not allow US inspectors to review their financial audits as promised.

A LITTLE SHOCK FOR FALLING I-BANK REVENUES Cara Lombardo and Dana Cimilluca of the WSJ: “Adobe Inc. agreed to buy collaboration software company Figma for around $20 billion, in the tech giant’s biggest acquisition.

SIGNS OF SLOWDOWN — WSJ’s Esther Fung: “FedEx Corp. said its quarterly revenue is below its expectations and it was closing offices and parking planes to make up for the drop in parcel volumes being transported around the world.

FIRST IN MM — Prior to the Treasury crypto reports, Sen. Elizabeth Warren (D-Mass.) sent a long letter to Yellen warning that “the crypto ecosystem has the ability to undermine our national security, worsen the climate crisis, harm consumers and retail investors, and threaten global economic stability – all while lining the pockets of billionaires” .

DOG BITES MAN/FTX BUYS DISTRESSED CRYPTO ASSETS — Ian Allison and Tracy Wang of Coindesk: “The exchange giant FTX in lead to buy assets of Voyager Digitalthe cryptocurrency lender whose bankruptcy filing has deepened the industry’s crisis this year, but higher bids could still come in the coming days, according to a person familiar with the matter.

POST-MERGER HANGOVER — Bloomberg’s Yueqi Yang and Muyao Shen: “Ether drove digital assets lower after the token’s groundbreaking underlying network software upgrade turned into what some market watchers called ‘sell-the-news‘ an event.”

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CarePoint sues RWJBarnabas over alleged care monopolization scheme https://lutravision.com/carepoint-sues-rwjbarnabas-over-alleged-care-monopolization-scheme/ Wed, 14 Sep 2022 19:23:18 +0000 https://lutravision.com/carepoint-sues-rwjbarnabas-over-alleged-care-monopolization-scheme/ A “year-long systemic effort” to “destroy the competition”. Allegations of conspiracy with real estate investors to push a New Jersey healthcare system into bankruptcy. Accused of neglecting the poor and the uninsured. All of the above made its way into a lawsuit between a three-hospital health system in New Jersey against the state’s largest health […]]]>

A “year-long systemic effort” to “destroy the competition”.

Allegations of conspiracy with real estate investors to push a New Jersey healthcare system into bankruptcy. Accused of neglecting the poor and the uninsured.

All of the above made its way into a lawsuit between a three-hospital health system in New Jersey against the state’s largest health system, accusing it of conspiracy to eliminate competition.

CarePoint Health filed a lawsuit against RWJ Barnabas Health September 6. Plaintiff alleged that RWJBarnabas pursued a multi-year anti-competitive scheme to “monopolize the provision of general acute care hospital services and related health care services in northern New Jersey.”

CarePoint includes the 349-bed Christ Hospital, the 224-bed Bayonne Medical Center and the 348-bed Hoboken University Medical Center. RWJBarnabas Health includes 12 acute care hospitals and four children’s hospitals, as well as other locations and services including outpatient care centers, ambulatory care centers, home care and palliative care programs, and health care organizations. responsible care.

The lawsuit alleges that RWJBarnabas conspired with real estate investors, government officials, and Horizon Blue Cross Blue Shield (New Jersey’s largest payer) to usurp revenue from CarePoint patients and drive the healthcare system into bankruptcy.

CarePoint claimed that RWJBarnabas’ goal was to force Christ Hospital and Bayonne Medical Center to close, but acquire Hoboken University Medical Center because of its more lucrative payer mix. This alleged plan “did not consider the needs of the poor, underinsured and charitable patients that CarePoint serves in its role as a hospital safety net system in and around Jersey City,” the lawsuit said.

The complaint stated that RWJBarnabas had issued a false letter of intent to acquire Christ Hospital and Hoboken University Medical Center in 2019. Carepoint claimed that RWJBarnabas did not actually want to buy these hospitals – instead, RWJBarnabas was conspiring with “real estate players” to gather market intelligence and competitive intelligence to “freeze programmatic growth and any significant hiring or construction at Christ Hospital.”

At first, CarePoint believed the offer was made in good faith. Negotiations stalled after CarePoint began to believe that RWJBarnabas intended to hold the real estate “hostage”. RWJBarnabas circulated rumors about Christ Hospital being consolidated and closed or reduced to a small emergency department, which led to the attrition of doctors, staff and patients at the hospital, according to the trial.

The lawsuit drew attention to a satellite emergency service that RWJBarnabas opened “in coordination with Horizon” in 2017, just five blocks from CarePoint’s Bayonne Medical Center. The resulting discrepancy of urgent care patients has cost CarePoint at least $80 million over the past three years, according to the lawsuit. Carepoint alleged that the satellite emergency service was built and began operating without the required approval from the New Jersey Department of Health.

Carepoint also claimed to have lost at least $227 million as a result of RWJBarnabas’ efforts to turn away and head to its Jersey City medical center. RWJBarnabas has diverted EMS patient transportation from CarePoint facilities and to the medical center, especially patients with private medical insurance or the financial means to pay for transportation and any resulting emergency or hospitalization services , according to the lawsuit. He also alleged that RWJBarnabas referred uninsured patients and those covered by Medicare or Medicaid to CarePoint facilities.

Practices represent ‘flagrant disregard’ of 2016 deal settled earlier dispute over ambulance service in and around Jersey City, CarePoint said. The insurance information that RWJBarnabas uses to divert and direct EMS transportation was obtained through Horizon, according to the complaint.

The lawsuit also alleged that RWJBarnabas and his conspirators claimed “undue influence over the NJDOH and the Governor’s Office to prevent CarePoint from developing programs for the community, receiving funding to serve the underinsured and underserved and also creating barriers to CarePoint’s evolution into a regional powerhouse in the health care field with a stable financial base.

RWJBarnabas’ wrongdoing violates the Sherman Antitrust Act and the New Jersey Antitrust Act, according to the lawsuit.

A statement from RWJBarnabas forcefully denied the allegations.

The lawsuit is “yet another in a series of baseless complaints filed by CarePoint, an organization whose management apparently prefers to blame others rather than accept responsibility for the unsatisfactory results of their own poor business decisions and actions over the years. years,” a RWJBarnabas spokesperson said. The spokesperson would not comment on the specific claims beyond what the health system said in a statement last week.

This is not the first time RWJBarnabas’ alleged anti-competitive business practices have made headlines this year. In June, the health system canceled a merger with Saint Peter Health System after the Federal Trade Commission blocked the dealclaiming it would harm competition and raise prices.

Photo: Doug Kerr, Flickr user

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THE DAILY NEWSPAPER NAMES SKLAR KIRSH’S ROBBIN ITKIN A TOP BANKRUPTCY LAWYER https://lutravision.com/the-daily-newspaper-names-sklar-kirshs-robbin-itkin-a-top-bankruptcy-lawyer/ Tue, 13 Sep 2022 01:52:00 +0000 https://lutravision.com/the-daily-newspaper-names-sklar-kirshs-robbin-itkin-a-top-bankruptcy-lawyer/ LOS ANGELES, September 12, 2022 /PRNewswire/ — Los Angeleslaw office Sklar Kirsh LLP announced that the partner Robbin Itkin was recognized as a “Top Bankruptcy Lawyer” by the Daily newspaper. “Robbin is an exceptional lawyer who consistently provides his clients with the highest level of strategy and service,” the firm’s co-chairman said. Jeffrey Skler. “We […]]]>

LOS ANGELES, September 12, 2022 /PRNewswire/ — Los Angeleslaw office Sklar Kirsh LLP announced that the partner Robbin Itkin was recognized as a “Top Bankruptcy Lawyer” by the Daily newspaper.

“Robbin is an exceptional lawyer who consistently provides his clients with the highest level of strategy and service,” the firm’s co-chairman said. Jeffrey Skler. “We are delighted that she has received this recognition and honored to have her represent our firm alongside such esteemed professionals.”

Itkin is a partner and a leader in At Sklar Kirsh Bankruptcy and Financial Restructuring Practice Group. His experience in restructuring billions of dollars in debt includes insolvency resolutions in Chapter 11 cases and numerous restructurings outside of the courtroom. As a mediator, Itkin uses her problem-solving strength to advise both healthy and struggling companies, leading them to negotiate effectively with their own creditors and counterparties who are in fragile economic situations.

The post states that Itkin believes “what sets her apart is her compassion in dealing with clients and her desire to understand their business and their specific issues, pressures and goals.” The article continues, “Everyone knows the law…but truly understanding the client is what leads to good work.”

Recently named “Legal Visionary” by the Los Angeles TimesItkin’s excellence in complex cases has earned him recognition as Chambers UNITED STATES-lawyer classified in restructuring. Super Lawyers has featured her since 2005 and named her among Southern California Top 50 female lawyers and Top 100 female lawyers. She is also recognized by Best Lawyers in Southern California and Martindale Hubbell. Itkin received the Century City Bar Association’s “Bankruptcy Lawyer of the Year” award in 2013 and was named to LawDragon’s inaugural list of America’s Top Bankruptcy and Restructuring Lawyers of 2020.

Sklar Kirsh LLP is a boutique law firm that provides sophisticated, expert advice in the areas of corporate, real estate, bankruptcy and entertainment law, as well as commercial, real estate and entertainment litigation. For more information, visit www.SklarKirsh.com.

Show original content:https://www.prnewswire.com/news-releases/the-daily-journal-names-sklar-kirshs-robbin-itkin-a-top-bankruptcy-lawyer-301622462.html

SOURCESklar Kirsh LLP

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Kessler Topaz Meltzer & Check, https://lutravision.com/kessler-topaz-meltzer-check/ Sat, 10 Sep 2022 18:13:00 +0000 https://lutravision.com/kessler-topaz-meltzer-check/ RADNOR, Pa., Sept. 10, 2022 (GLOBE NEWSWIRE) — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is advising investors that two class action securities lawsuits have been filed in the United States District Court for the District of New Jersey and the United States District Court for the Southern District of New York […]]]>

RADNOR, Pa., Sept. 10, 2022 (GLOBE NEWSWIRE) — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is advising investors that two class action securities lawsuits have been filed in the United States District Court for the District of New Jersey and the United States District Court for the Southern District of New York v. Coinbase Global, Inc. (“Coinbase”) (NASDAQ: COIN). The actions accuse Coinbase of violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and outlook. Due to Coinbase’s materially misleading statements and omissions to the public, Coinbase investors have suffered significant losses.

CLICK HERE To SUBMIT YOUR COINBASE LOSSES.

YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE INTO YOUR BROWSER: https://www.ktmc.com/new-cases/coinbase-global-inc-2022?utm_source=PR&utm_medium=link&utm_campaign=coinbase&mktm=r

CAN’T SEE THIS VIDEO? PLEASE CLICK HERE

PRINCIPAL APPLICANT DEADLINE: OCTOBER 3, 2022

COURSE PERIOD: FROM APRIL 14, 2021 TO JULY 26, 2022

CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or by email at info@ktmc.com

Kessler Topaz is one of the world’s foremost advocates for protecting the public from corporate fraud and other wrongdoing. Our securities fraud litigants are consistently individually recognized as leaders in the field and our firm is both feared and respected within the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the categories of shareholders we represent.

COINBASE’S ALLEGED MISCONDUCT
The lawsuits against Coinbase allege that the registration statement and other documents filed with the SEC in connection with the company’s public offering in April 2021 made false or misleading statements and/or failed to disclose that Coinbase insiders had sharply increased their holdings of Coinbase Class A common stock. and intended to sell Coinbase shares as early as April 14, 2021, the first day of public trading for Coinbase shares. Indeed, on April 14, 2021, multiple Coinbase insiders sold over seven million shares of Coinbase Class A common stock, including over 1.3 million shares at market open that day, receiving collectively over $2.7 billion in proceeds from these sales.

The lawsuits further allege that the defendants made false and/or misleading statements and/or failed to disclose that: (1) Coinbase held crypto assets in custody on behalf of its clients, which Coinbase knew or recklessly neglected to they could be considered the property of a bankrupt estate, making such assets potentially subject to bankruptcy proceedings in which Coinbase customers would be treated as general unsecured creditors of the Company; (2) Coinbase allowed Americans to trade digital assets that Coinbase knew or carelessly ignored should have been registered as securities with the SEC; (3) the foregoing conduct has subjected the Company to increased risk of regulatory and governmental scrutiny and enforcement action.

On May 10, 2022, Coinbase disclosed that: “Because crypto assets held in custody may be considered the property of bankruptcy estate, in the event of bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and those customers could be treated as our general unsecured creditors.” Following this disclosure, the price of Coinbase Class A common stock fell more than 26%.

Then, on July 25, 2022, Bloomberg reported that Coinbase was facing an SEC investigation into whether it was improperly letting Americans trade digital assets that should have been registered as securities. Following this news, the price of Coinbase’s Class A common stock fell another 21%, further hurting investors.

WHAT CAN I DO?
Coinbase investors can, no later than October 3, 2022, seek to be named as the lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages Coinbase investors who have suffered significant losses to contact the company directly for more information.

CLICK HERE TO REGISTER FOR THE CASE

WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the proposed category of investors. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
info@ktmc.com

A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8c8d51be-e19f-4e14-8404-e4e88e1311c9.

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NewAge, Inc. Announces Sale of Legacy Direct Store Distribution Division https://lutravision.com/newage-inc-announces-sale-of-legacy-direct-store-distribution-division/ Fri, 09 Sep 2022 20:01:00 +0000 https://lutravision.com/newage-inc-announces-sale-of-legacy-direct-store-distribution-division/ NewAge, Inc. SALT LAKE CITY, Sept. 09, 2022 (GLOBE NEWSWIRE) — NewAge, Inc.. (OTC: NBEVQ) (the “Company”), the Utah-based direct-to-consumer (D2C) organic and healthy products company, today announced that its wholly-owned subsidiaries, NABC, Inc. and NABC Properties , LLC (together, “NABC”), have entered into a definitive agreement to sell the former Direct Store Distribution (“DSD”) […]]]>

NewAge, Inc.

SALT LAKE CITY, Sept. 09, 2022 (GLOBE NEWSWIRE) — NewAge, Inc.. (OTC: NBEVQ) (the “Company”), the Utah-based direct-to-consumer (D2C) organic and healthy products company, today announced that its wholly-owned subsidiaries, NABC, Inc. and NABC Properties , LLC (together, “NABC”), have entered into a definitive agreement to sell the former Direct Store Distribution (“DSD”) division to Legacy Distribution Group, a Colorado-based distribution company.

The transaction is expected to close in the fourth quarter of 2022, and closing will be subject to court approval in the company’s ongoing bankruptcy filing.

The company believes that the DSD business is one of Colorado’s largest independent distributors, supplying beverages and snacks to grocers, big-box retailers and convenience stores. He has served the Colorado community for more than twenty years, providing what the company considers best-in-class service to more than 5,000 outlets, and has helped launch and grow some of the largest leading brands in the sector.

NABC is not included in the previously announced bankruptcy cases of the Company and certain of its subsidiaries, and the DSD division continues to operate independently of the NewAge entities currently in bankruptcy proceedings. The proposed sale is part of the company’s overall effort to align its assets and focus its business on maximizing revenue and cash flow generation for its larger scale direct/social selling division.

Legacy Distribution Group is a wholly owned subsidiary of CBD Global Sciences Inc. (CSE: CBDN), an American multinational consumer goods and manufacturing company headquartered in Denver, Colorado.

Ed Brennan, Interim President and CEO of NewAge, said, “Over the past several months, we have conducted a comprehensive strategic review of our business as we strive to simplify our business, expand our operations and to position NewAge for continued growth in the direct selling industry. DSD had humble beginnings and grew into one of the largest independent distributors in the country. This proposed sale delivers what we believe will be an excellent outcome for stakeholders in the DSD business, including our employees and customers. Legacy Distribution Group has a deep understanding of the industry and market in which DSD operates, and we believe they will be able to provide strategic ownership of the business in the future.

About NewAge, Inc.
NewAge is a determined company dedicated to inspiring the planet to live well™. The Utah-based company markets a portfolio of organic and healthy products globally, primarily through a direct-to-consumer (D2C) route to market distribution system in more than 50 countries. The company competes in three major platform categories, including health and wellness, inner and outer beauty, nutritional performance and weight management, through a network of independent brand partners. exclusive, equipped with the main social selling tools and technologies available in the world. For more information about the company, visit NewAgeGroup.com.

Forward-looking statements

This press release contains forward-looking statements based on the beliefs and assumptions of management and on information currently available to the management of the Company. Forward-looking statements include statements relating to the Company’s proposed sale of the DSD Division and the continued operation of the DSD Division by Legacy Distribution Group. Forward-looking statements include statements that are not historical facts and can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”. of’, ‘may’, ‘plan’, ‘potential’, ‘predict’, ‘project’, ‘seek’, ‘should’, ‘shall’, ‘would’ or similar expressions and the negatives of these terms. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements due to certain risks and uncertainties. These risks and uncertainties include, but are not limited to, risks relating to the Company’s ability to complete the proposed sale of the DSD division, including receipt of bankruptcy court approval of the proposed sale; unforeseen difficulties or expenses related to the proposed sale; disruptions to ongoing plans and operations caused by the announcement and expectation of the proposed sale; potential difficulties in retaining employees due to the announcement and expectation of the proposed sale; the response of customers, suppliers and business partners to the announcement of the proposed sale; the effects of Chapter 11 cases on society and on the interests of various constituents; bankruptcy court decisions in Chapter 11 cases and the outcome of Chapter 11 cases generally; the length of time the company will operate under Chapter 11 cases; risks associated with third-party claims in Chapter 11 cases; the potential adverse effects of Chapter 11 matters on the Company’s liquidity or results of operations and increased legal and other professional fees necessary to execute the Company’s reorganization; the conditions to which any debtor in possession financing is subject and the risk that such conditions will not be satisfied for various reasons, including for reasons beyond the control of the Company; consequences of the Company’s debt acceleration, among other risks and uncertainties, as well as the factors described in greater detail in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (“SEC”), each of which may be accessed at the SEC’s website, www.sec.gov, or in the investor relations section of the Company’s website, investor.newagegroup.com. Except as required by law, the Company undertakes no obligation to update these forward-looking statements or to update the reasons why actual results could differ materially from those anticipated in these forward-looking statements, even if new information become available in the future. Accordingly, undue reliance should not be placed on forward-looking statements.

Investor and Media Inquiries:
IR@newage.com

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State Securities Regulators Seek More Transparency In Celsius Crypto Bankruptcy https://lutravision.com/state-securities-regulators-seek-more-transparency-in-celsius-crypto-bankruptcy/ Wed, 07 Sep 2022 22:25:00 +0000 https://lutravision.com/state-securities-regulators-seek-more-transparency-in-celsius-crypto-bankruptcy/ The Celsius logo and representation of cryptocurrencies are seen in this illustration taken July 7, 2022. REUTERS/Dado Ruvic/Illustration Join now for FREE unlimited access to Reuters.com Register Summary Companies Law firms The U.S. bankruptcy watchdog says an independent review would dispel customer ‘mistrust’ and ‘confusion’ At least 40 state securities regulators are investigating Celsius for […]]]>

The Celsius logo and representation of cryptocurrencies are seen in this illustration taken July 7, 2022. REUTERS/Dado Ruvic/Illustration

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  • The U.S. bankruptcy watchdog says an independent review would dispel customer ‘mistrust’ and ‘confusion’
  • At least 40 state securities regulators are investigating Celsius for potential violations

(Reuters) – State securities regulators in Texas, Vermont and Wisconsin on Wednesday pushed for greater transparency in the bankruptcy of cryptocurrency lender Celsius Network LLC, joining the U.S. department’s call of Justice to have a court-appointed reviewer ensure that Celsius provides creditors with accurate information.

State regulators said they support appointing an examiner in filings in U.S. Bankruptcy Court in Manhattan, noting they are particularly concerned about protecting retail investors who may have filed claims. university funds or retirement accounts with Celsius based on false promises.

New Jersey-based Celsius did not respond to a request for comment on Wednesday. The company filed for bankruptcy on July 13, following losses related to the collapse of major tokens TerraUSD and Luna in May.

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The US Trustee, the DOJ’s bankruptcy watchdog, has argued that a reviewer could provide an unbiased review of Celsius’ actions and finances, helping to clear up the “widespread confusion” and “mistrust” that surrounded the crypto lender’s bankruptcy.

The DOJ alleged that Celsius failed to provide clear information about the type and value of crypto it holds, where its assets are held, and its lending and investing activities.

In their filings, the states said Celsius misled customers for months before seeking Chapter 11 protection.

For example, Celsius CEO Alex Mashinsky told clients that “all funds are safe” in a May 11 tweet, when in fact Celsius suffered losses of around $454 million between May 2 and 12, according to Vermont’s. deposit. Mashinsky also told clients that regulators approved Celsius’ business model at a time when the company was facing multiple investigations related to potential securities law violations, according to Vermont.

Texas made similar arguments in its depositpointing out that Celsius froze customer accounts just five days after publishing a blog post saying it would have no problem honoring withdrawal requests.

According to filings in Texas and Vermont, at least 40 state securities regulators are investigating Celsius for potential unregistered securities activity, mismanagement, securities fraud and market manipulation. .

A group of shareholders opposite the DOJ’s request for an examiner as too broad. The DOJ’s current request would require the examiner to “investigate and report almost anything relating to debtors’ affairs,” a task that would cost tens of millions of dollars and consume the majority of Celsius’s attention “for at least least several months,” shareholders said Wednesday.

U.S. Chief Bankruptcy Judge Martin Glenn is due to consider a DOJ examiner’s request at a September 14 hearing.

The case is In re Celsius Network LLC, US Bankruptcy Court for the Southern District of New York, No. 22-10964

For Celsius Network: Joshua Sussberg of Kirkland & Ellis

For the DOJ: Shara Claire Cornell of the US Department of Justice

For Vermont: Jennifer Rood of the Vermont Department of Financial Regulation

For Texas: Layla Milligan of the Texas State Securities Board

Read more:

Crypto lender Celsius Network reveals $1.19 billion hole in bankruptcy filing

State securities regulators investigate freezing of Celsius accounts

Crypto lender Celsius gets court approval to sell bitcoin, but not stocks or debt

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Reporting by Dietrich Knauth

Our standards: The Thomson Reuters Trust Principles.

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Phillips Edison & Company Increases Monthly Distribution https://lutravision.com/phillips-edison-company-increases-monthly-distribution/ Tue, 06 Sep 2022 12:30:32 +0000 https://lutravision.com/phillips-edison-company-increases-monthly-distribution/ CINCINNATI, Sept. 06, 2022 (GLOBE NEWSWIRE) — Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the largest owners and operators of omni- neighborhood shopping centres, today announced that its Board of Directors (the “Board”) has approved a 3.7% increase in monthly distributions payable on October 3, 2022 and November 1, […]]]>

CINCINNATI, Sept. 06, 2022 (GLOBE NEWSWIRE) — Phillips Edison & Company, Inc. (Nasdaq: PECO) (“PECO” or the “Company”), one of the largest owners and operators of omni- neighborhood shopping centres, today announced that its Board of Directors (the “Board”) has approved a 3.7% increase in monthly distributions payable on October 3, 2022 and November 1, 2022 to shareholders of record at closing offices on September 16, 2022 and October 17, 2022, respectively.

The board approved the distribution at a rate of $0.0933 per common share of the company and per operating partnership unit. When annualized, this equates to a rate of $1.12 per share, which represents a 3.7% increase from the previous annualized rate of $1.08 per share.

“The strength of our operating fundamentals and the growth of our cash flow allow us to increase our monthly distribution to our shareholders. Our ongoing goal is to increase our payout ratio as we grow cash flow from our grocery-rooted portfolio,” said Jeff Edison, President and CEO of PECO. “This increase reflects the success of our focused and differentiated strategy of owning and operating small-format neighborhood centers anchored by the #1 or #2 grocer in a market that continues to generate foot traffic and demand. high and recurring neighbors, resulting in superior financial and operational performance.

“We recognize that distributions are an important component of an investment in PECO, and we believe that our increased dividend yield of approximately 3.4% strikes the right balance between current returns for our shareholders and funding growth opportunities. growth that is available to us through acquisitions and off-plot redevelopments.”

About Phillips Edison & Company

Phillips Edison & Company, Inc. (“PECO”), an internally managed REIT, is one of the largest owners and operators of grocery-anchored shopping centers in the United States. Founded in 1991, PECO has generated strong results through its vertically integrated operating platform and nationwide footprint of busy shopping centers. PECO Centers feature a mix of national and regional retailers providing essential goods and services to fundamentally strong markets across the United States. Major CEE grocery stalwarts include Kroger, Publix, Ahold Delhaize and Albertsons. As of June 30, 2022, PECO operates 289 malls, including 269 wholly-owned malls comprising 30.9 million square feet in 31 states, and 20 malls owned in an institutional joint venture. PECO is exclusively focused on creating omnichannel shopping experiences rooted in grocery and improving communities, one neighborhood mall at a time.

PECO uses, and intends to continue to use, its investor website, which can be accessed at https://investors.phillipsedison.com, as a means of disclosing material nonpublic information and comply with its disclosure obligations under FD regulations.

Forward-looking statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Phillips Edison & Company, Inc. (the “Company”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for the purposes of complying with safe harbor provisions. These forward-looking statements can generally be identified by the Company’s use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate “, “believe”, “continue”. ,” “seek”, “goal”, “goal”, “strategy”, “plan”, “focus”, “priority”, “should”, “could”, “potential”, “possible”, “optimistic” , or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. These statements include, but are not limited to: (a) statements about the Company’s plans, strategies, initiatives and outlook; (b) statements about the Company’s guaranteed additional returns; and (c) statements about the future results of operations, capital expenditures and liquidity of the Company. These statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated, including, without limitation: (i) changes in national economic climates, regional or local; (ii) local market conditions, including oversupply of space or reduced demand for properties similar to those in the Company’s portfolio; (iii) vacancies, changes in market rental rates and the need to periodically repair, renovate and re-let premises; (iv) competition from other available shopping centers and the attractiveness of properties in the Company’s portfolio to its tenants; (v) the financial stability of the Company’s tenants, including, without limitation, their ability to pay rent; (vi) the Company’s ability to repay, refinance, restructure or extend its indebtedness when it becomes due; (vii) increases in the Company’s borrowing costs due to changes in interest rates and other factors; (viii) potential liability for environmental matters; (ix) damage to Company properties caused by catastrophic weather and other natural events, as well as the physical effects of climate change; (x) the ability and willingness of the Company to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xi) changes in tax, real estate, environmental and zoning laws; (xii) information technology security breaches; (xiii) the Company’s corporate responsibility initiatives; (xiv) loss of key executives; (xv) concentration of the Company’s portfolio in a limited number of industries, geographies or investments; (xvi) the economic, political and social impact of the COVID-19 pandemic and the uncertainty related thereto; (xvii) the Company’s ability to re-let its properties on the same or better terms, or not at all, in the event of non-renewal or in the event the Company exercises its right to replace an existing tenant; (xviii) the loss or bankruptcy of the Company’s tenants; (xix) to the extent the Company seeks to sell properties, the Company’s ability to do so at attractive prices or not at all; and (xx) the impact of inflation on the Company and its tenants. Other important factors that could cause actual results to differ are described in the Company’s filings from time to time with the SEC and include the risk factors and other risks and uncertainties described in the Company’s 2021 Annual Report. the Company on Form 10-K, filed with the SEC on February 16, 2022, as updated from time to time in the Company’s periodic and/or current reports filed with the SEC, which can be accessed at SEC website at www.sec.gov. Accordingly, these statements are not intended to be guarantees of the Company’s performance in future periods.

Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investors:

Phillips Edison & Company, Inc.

Kimberly Green, Vice President of Investor Relations
(513) 692-3399
kgreen@phillipsedison.com

Stephanie Hout, Director of Investor Relations
(513) 746-2594
shout@phillipsedison.com

Source: Phillips Edison & Company, Inc.

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Different judicial approaches to objections to a bankruptcy petition https://lutravision.com/different-judicial-approaches-to-objections-to-a-bankruptcy-petition/ Sat, 03 Sep 2022 15:46:31 +0000 https://lutravision.com/different-judicial-approaches-to-objections-to-a-bankruptcy-petition/ JTo protect the legitimate rights and interests of debtors and creditors in bankruptcy proceedings, if they disagree with a bankruptcy petition listed on the creditors’ rights checklist, the Bankruptcy Act d The company grants the right to raise an objection and take legal action regarding any dispute regarding the confirmation of bankruptcy claims. To increase […]]]>

JTo protect the legitimate rights and interests of debtors and creditors in bankruptcy proceedings, if they disagree with a bankruptcy petition listed on the creditors’ rights checklist, the Bankruptcy Act d The company grants the right to raise an objection and take legal action regarding any dispute regarding the confirmation of bankruptcy claims. To increase the efficiency of bankruptcy trials, Article 8 of the Provisions (III) on Several Matters Concerning the Application of the Corporate Bankruptcy Law states that when the bankruptcy administrator has finished explaining or to adjust the claims based on the grounds and legal basis invoked by the opponent, or decides not to explain or adjust, the opponent may initiate legal action or arbitration within 15 days of the examination claims of creditors at the meeting of creditors. In practice, courts have different understandings and practices regarding the trial of an opponent. This article summarizes the content and judicial opinions of court documents across China in hopes of shedding light on the inconsistency.

DIFFERENT INTERPRETATIONS

Wang Zhenxiang
Partner
Jingtian and Gongcheng

When the clock starts ticking. In most cases, the 15-day period runs from the end of the examination of the opposing claims by the competent meeting of creditors. However, in some regions, the starting point is considered the day the objector receives the writing issued by the administrator, based on the aforementioned provisions stipulating that the administrator may offer explanations or adjustments. This opinion was confirmed by the Higher People’s Court of Hebei Province in Detaiquan Special Steel vs. Mingjun Xintai Tourism Development (2021). The Shanghai Higher People’s Court and the Shenzhen Intermediate People’s Court both require administrators to provide a written response to objectors and allow them a reasonable period of time of at least 15 days from receipt of the written response, giving them gives ample opportunity to take legal action.

Roles in opposition trials. According to the Beijing High People’s Court, the debtor’s objection statement must be made by the debtor’s registered legal representative. If the right of the controlled creditor is secured, the guarantor must be notified of the inspection in writing and has the right to bring legal action to confirm the bankruptcy claims with the bankruptcy court if he believes that the adjustments are illegal. The Jiangxi Higher People’s Court made similar demands. The Sichuan Higher People’s Court further requires that where the debtor finds it difficult to file a lawsuit on his own behalf, a legal representative, shareholder/sponsor, director or supervisor may do so on his behalf, with any advantage of winning the lawsuit going to the debtor. The Shandong Higher People’s Court provides that: when the debtor opposes bankruptcy claims on the creditors’ rights checklist, the opposing creditor will be listed as a defendant; where a creditor opposes the claims of other creditors on the checklist, the opposing creditor is the defendant; when the creditor opposes his own claim, the debtor is the defendant; and where multiple parties oppose the same application, all opponents are listed as co-applicants. The Sichuan court also provides that where a creditor opposes the claims of other creditors, the debtor can be registered as a third party.

Nature of the 15-day period. As for the 15-day time limit for filing a lawsuit, court documents have yet to clearly define its legal nature, and court documents in various regions indicate an inconsistency in its interpretation. In Chen Hao vs. Wuhan Oriental Yixin Construction et al (2019)the civil judgment regards the 15-day period neither as a limitation of action nor as a lapse period, but as a guiding requirement with harmful consequences similar to the claim period, and a lawsuit can be brought after its expiration.

In China Chemistry Engineering No. 4 Construction v Shandong Jinshunda Group et al (2019), the court ruled that the 15-day period was peremptory and rejected the opponent’s request. In the 2021 Ping An Bank Taiyuan Branch Bankruptcy Application Confirmation Case, the court ruled that since the opponent did not file a lawsuit within 15 days, he was deemed to have consented to the results of the inspection during the meeting of creditors, therefore re-confirmation of the decisions of first and second instance of revocation.

Can the 15 day period be adjusted? In Weng Xiaoxiong v Xieli Hexing Real Estate Development (Pingtan) et al (2021), the court held that the 15-day period, the legal period given to opponents to bring a legal action, is not subject to termination, interruption or extension for any reason whatsoever. However, according to the Chongqing No. 5 Intermediate People’s Court, opponents can apply to the court for an extension of the 15-day period due to force majeure or for other reasonable reasons (for example, the administrator fails to publish a review result within the prescribed period) in accordance with Article 83 of the Civil Procedure Law.

Consequences of a late trial. According to the judgment procedures of the superior courts of Shandong, Jiangxi and Beijing, the opponent must file a lawsuit challenging the bankruptcy claims within 15 days, otherwise the claims are upheld. Judgment procedures of the higher courts of Chongqing, Sichuan, Yunnan and Shanghai, as well as the intermediate court of Shenzhen, indicate that if no legal action is taken, it will be considered that all parties consent or do not have no objections to the bankruptcy filings.

ANALYSIS OF LEGAL EFFECTS

Based on various court regulations and practices, the author believes that the 15-day period is more like a statute of limitations for action. Defining it as a legal time limit in the sense of procedural law comes close to its legislative purpose, while Article 83 of the Code of Civil Procedure can also be applied to prevent any loss of the opponent’s rights for legitimate reasons.

Since corporate bankruptcy law allows creditors to make additional filings if the time limit is exceeded, considering the 15-day time limit as peremptory would seem to contradict such regulation. Furthermore, since it usually takes a long time for confirmed bankruptcy applications to be granted, simply treating the 15-day period as a guiding settlement with a slap on the wrist may not be enough to achieve the goal. to urge opponents to speed up any trial. and improving the efficiency of bankruptcy proceedings.

RECOMMENDATIONS

In the absence of consensus in both legal regulations and judicial practice, the author advises debtors and administrators to respect the practice of the courts of Chongqing and Shanghai, and to fully inform the creditor of the starting point of the 15 days, the consequences of an objection, whether it can be extended and, if so, for what legitimate reasons, as well as other information relevant in the context of the official confirmation of the application for bankruptcy. The author advises creditors to place greater emphasis on timelines provided by statutes and legal interpretations, improve the effectiveness of communication with administrators, and bring legal action within prescribed timelines.

Wang Zhenxiang is a partner at Jingtian & Gongcheng

交通

Room 3001, Area A, China Resources Tower
No.1366 Qianjiang Road, Hangzhou 311500, China

Tel: +86 571 8992 6523

Fax: +86 571 8992 6501

Email: wang.zhenxiang@jingtian.com

www.jingtian.com

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Warren Grills DOJ Explains Why He’s Still Trying To Squash Student Debtors In Bankruptcy Court https://lutravision.com/warren-grills-doj-explains-why-hes-still-trying-to-squash-student-debtors-in-bankruptcy-court/ Fri, 02 Sep 2022 16:36:57 +0000 https://lutravision.com/warren-grills-doj-explains-why-hes-still-trying-to-squash-student-debtors-in-bankruptcy-court/ Just over a week after President Joe Biden unveiled a plan to forgive $10,000 in federal student loan debt for most borrowers and reform the income-based repayment program, his administration has was reprimanded Thursday for her continued efforts to deny bankruptcy relief to some of the nation’s most desperate student debtors. “Those who continue to […]]]>

Just over a week after President Joe Biden unveiled a plan to forgive $10,000 in federal student loan debt for most borrowers and reform the income-based repayment program, his administration has was reprimanded Thursday for her continued efforts to deny bankruptcy relief to some of the nation’s most desperate student debtors.

“Those who continue to struggle with student debt need updated guidance on undue hardship.”

In a letter Sent to Attorney General Merrick Garland, Sen. Elizabeth Warren (D-Mass.) asked about the status of the Justice Department’s “work to update guidance on how it handles claims for undue hardship of student borrowers in bankruptcy proceedings”.

“To support the administration’s efforts to overhaul the student loan system and ensure that bankruptcy relief is a viable option for borrowers in serious financial difficulty,” Warren wrote, “it is essential that you publish and implement these updated guidelines without delay”.

Although Biden spent years as a senator side with the lenders and making it more difficult for Americans to reduce their student loan repayment obligations in court, it promised last year to “allow student debt to be relieved in the event of bankruptcy,” which would help give overstretched borrowers a fresh financial start.

Nevertheless, as The lever first reported In early February, Biden administration officials moved to overturn a federal judge’s decision to eliminate nearly $100,000 in student debt held by Ryan Wolfson, 35, an epileptic man struggling to find a job. full time.

In response to public outcry, the Ministry of Education announcement that it would withdraw its notice of appeal in the Wolfson case. The agency added that “any borrower in adversarial bankruptcy proceedings may seek and receive a stay” during the department’s review of current policies, which was In progress since July 2021.

Less than a week later, however, the Biden administration filed another notice of appeal in an attempt to block a federal judge’s decision to award Monique Wheat – a mother of three with an annual income of ‘about $21,000 – over $100,000 in student debt relief, like reported by The lever.

Following another round of backlash, the Department for Education also dropped its appeal in Wheat’s case, prompting investigative journalist Julia Rock to ask, “Does this signal a change in policy at the agency?

While welcoming the pair of cancellations, a coalition of progressive advocacy groups urged Education Secretary Miguel Cardona to immediately stop fighting countless others seeking to pay off their student debt in court bankruptcy, writing that his department is “moving slowly to implement” promised reforms. and “does not have a full understanding of the cases currently pending”.

As Warren’s new letter to Garland explains, it follows a March investigation in which she “joined colleagues to request information about how the DOJ handled hardship claims from student borrowers during bankruptcy hearings”.

“Your June 2022 response to this request,” Warren wrote, “indicated that the DOJ and the Department of Education (ED) are “collaborating to develop guidelines for implementation. [the undue hardship standard] in a more consistent and streamlined manner,” and provided a copy of a separate DOJ guidance for U.S. attorneys’ offices, issued September 2021 and updated April 2022, on accepting the suspension of pending student loan release procedures.

In response to her July request for “a staff-level briefing on the delay in issuing the updated undue hardship guidelines,” Warren noted, she received only “a brief email containing no additional details on the status of the guidelines”.

“Months have passed since my March 2022 application and borrowers are still waiting for these new undue hardship guidelines,” she added. “This is a serious problem for many borrowers who are bankrupt or on the verge of bankruptcy.”

The Massachusetts Democrat continued:

As noted in the March 2022 letter, Congress and the courts have nearly eliminated bankruptcy as an option for Americans seeking freedom from crippling student debt. The bankruptcy code’s undue hardship exception has been interpreted narrowly by the courts, with most courts requiring borrowers to prove that their inability to repay the loan would persist in the future, that they could not not maintain a “minimal” standard of living if they were forced to repay the loan and made good faith efforts to repay the loans. In practice, this standard has proven so difficult to meet that most borrowers do not even attempt to repay their student loans through bankruptcy.

Those pursuing undue hardship claims face aggressive legal challenges from the federal government that fails to recognize borrowers’ difficulties navigating the student loan system. In particular, the current 2015 guidance assumes that a borrower can easily access income-based or income-driven repayment. [IDR] plan and that their failure to enroll in the IDR may constitute a bad faith effort to repay their loans. This is despite a well-documented history of gross mismanagement of the IDR program by service agents, including erroneous payments, failure to update and correct borrower records, misleading borrowers about their options and even drive IDR-eligible borrowers away from these programs. As a result, only 157 people had ever received IDR forgiveness through January 2021 according to a Government Accountability Office report, even though more than 4.4 million borrowers have been in repayment for at least 20 years. years and should apparently have access to loan forgiveness under the IDR. .

“Those who continue to struggle with student debt,” Warren wrote, “need updated undue hardship guidance that, among other things, reflects the realities borrowers have faced in accessing and paying payments under the IDR”.

“The DOJ must prioritize updating student bankruptcy guidelines,” she added, “and provide clear answers on the status of its plans to process bankruptcy discharge applications.” .

To this effect, the senator asked Garland to answer the following questions by September 15:

  1. Please provide a detailed update on the status of DOJ discussions and any updates to regulations or guidance for processing undue hardship bankruptcy discharge applications for student borrowers.
  2. Since the DOJ issued stay guidelines on September 7, 2021, how many borrowers have requested a DOJ stay? How many have benefited from such a stay?
  3. Will the DOJ guidelines remain in place until the DOJ and ED release new policies on canceling student loans through the bankruptcy process?
  4. Since September 7, 2021, in how many cases have judges granted borrowers student loan discharges? In how many of these cases did the DOJ appeal the discharge? Why did the DOJ appeal these decisions? What measures does the DOJ have in place to ensure that it does not cause unnecessary hardship through these appeals?

As The leverwho first got Warren’s letter, Noted Thursday, “bipartisan legislation that would allow student debt to be discharged through bankruptcy languishes in committee. »

Meanwhile, Republican attorneys general, business advocacy groups and GOP lawmakers, including Sen. Ted Cruz of Texas, are plotting to sue the Biden administration over its recently unveiled student debt cancellation plan. .

If one of these lawsuits is successful – something legal experts say is a real possibility given the right-wing makeup of the federal court system all the way to the US Supreme Court – “bankruptcy reform”, The lever pointed out, “could become even more crucial in relieving debtors of their burdens”.

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