U.S. Bankruptcy Court

A U.S. Bankruptcy Court judge in Vermont has allowed clergy abuse claimants to sue for parish assets, including an estimated $500 million in local parish holdings, as part of the Roman Catholic Diocese's bankruptcy reorganization. The diocese, which filed for Chapter 11 protection in 2024, faces potential litigation over parish assets placed in trusts, with claimants arguing these funds should cover abuse settlements.

Johnson & Johnson proposes a $5.5 billion settlement to resolve remaining lawsuits claiming its talc products caused ovarian cancer, requiring 95% claimant participation. The company previously rejected a $9 billion settlement proposal and faced challenges proving no direct link between its products and cancer, but the new deal aims to end the decade-long legal battle.

Vermont’s Roman Catholic Diocese seeks court approval to sell Rice Memorial High School to a nonprofit, RMHS Inc., to protect the school from liquidation. The diocese, reorganizing finances under Chapter 11 bankruptcy, aims to preserve the school’s Catholic identity and operations ahead of the 2026-2027 academic year.

Sleep Number filed for Chapter 11 bankruptcy and agreed to be acquired by Sleep Country Canada for $415 million. The deal involves Sleep Country Canada's U.S. subsidiary SNBR purchasing Sleep Number, with stores remaining open during the process. Sleep Number's CEO cited an unsustainable capital structure but expressed confidence in improving financial position through the acquisition.

President Donald Trump is considering a taxpayer-funded takeover of Spirit Airlines to resell it for profit after oil prices drop, as the struggling budget carrier seeks government financing to avoid bankruptcy. The plan faces skepticism from officials like Transportation Secretary Sean Duffy, who question setting a financial aid precedent.