Lookzy: all your daily legal news in 0.1 billable hours. Litigation, deals, lateral moves and industry news; we cover it all.

Welcome to Lookzy. In today's Lookzy:

• A meme stock's volatile capital markets journey

• Is this the end for the Texas Two-Step?

• How litigation funding helped a corporate litigant

• The ABA votes to keep the LSAT mandatory

A MEME STOCK'S VOLATILE CAPITAL MARKETS JOURNEY

The "Beyond" in Bed, Bath & Beyond may stand for endless business for capital markets lawyers and bankers.

Bed Bath & Beyond started its modern journey as a Covid meme stock darling, with its stock price at one point skyrocketing nearly 9x over its April 2020 lows. But that was only the beginning.

In 2022, activist investor Ryan Cohen took a 9.8% stake in the company seeking to shake up leadership and make strategic changes. Since then, however, the stock price has been nearly only down-only.

In late January 2023, BB&B disclosed that it received a notice of default from its lender JP Morgan. BB&B's JP Morgan credit line was secured by the company's inventory; when the value of that collateral fell, the amount BB&B had already borrowed put BB&B outside of its limits and required a cash payment in order to avoid default, which was not paid.

An imminent bankruptcy filing was widely discussed.

Now, though, a lifeline: BB&B successfully launched an equity offering raising more than $1 billion. The equity was offered as convertible stock and warrants, with $225 million being provided upfront and remaining investor commitments being provided over time.

Potentially now able to resolve defaults on its credit lines and bond debt, BB&B's next moves will likely determine whether this is a short-term delay of the inevitable or a long-term strategic move for the trouble company.

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ECON SNAPSHOT

The difference between special bonuses and layoffs

THE VERDICT

Arguing today's litigation news

Firm v. firm fight. Quinn Emanuel and Hagens Berman are battling to lead a consumer antitrust class action suit against Meta after the judge reversed a prior order which had appointed both firms as co-counsel. A Hagens Berman partner involved in the trial claims that a Quinn partner discounted her views due to her gender, which the Quinn partner calls a "mystery".

Texas Two-Step. Following the 3rd Circuit's rejection of Johnson & Johnson's attempted use of the "Texas Two-Step" to use a subsidiary's bankruptcy to avoid mass tort litigation, plaintiffs largely consisting of military veterans suing 3M Co. over allegedly faulty earplugs urged a judge to throw out a 3M subsidiary's bankruptcy along similar lines.

Grocery dividend. A private consumer antitrust suit is the latest attack against Kroger's attempted $25 billion acquisition of Albertsons, following a 'second request' from the FTC, numerous suits by state AGs and others, all seeking to either prevent the acquisition or prevent a $4 billion dividend payment that Albertsons intends to make to shareholders before the transaction closes.

Litigation funding. Samsung Electronics agreed to pay British nanotechnology company Nanoco Technologies $150 million to settle lawsuits filed by Nanoco regarding claims of technology infringement in Samsung's LED TVs. Nanoco's CEO noted that litigation-funding firm GLS Capital provided funds to Nanoco, providing them with "equal footing against a much larger adversary.”

Hair relaxers. A Judicial Panel on Multidistrict Litigation order consolidated more than 60 lawsuits in Chicago federal court against L'Oreal USA and other companies, such suits claiming that hair relaxer products sold by those companies cause cancer and other health issues.

THE DEAL

Wheelin' and dealin' today's corporate news

Convenient health. CVS is reportedly nearing a deal to acquire primary care provider Oak Street Health, which owns a collection of doctors offices, for $10.5 billion including debt. The deal could be announced as soon as this week if it goes through.

For the tabloids. VVIP Ventures, a digital media joint venture between Vinco Ventures and Icon Publishing, agreed to acquire tabloids The National Enquirer, the Globe and the National Examiner from magazine publisher A360 Media in an all-cash asset purchase. Financial details were not disclosed.

Rothschild family. The dynastic Rothschild family announced plans to take their investment bank Rothschild & Co. private at a $4 billion valuation, with a shareholder vote taking place on May 25th. The family explained that because the investment bank has expanded into wealth management and other financings, it is no longer as reliant on the public markets for capital. The Rothschild family controls 55% of the bank and 69% of exercisable voting shares.

PE exit. Growth equity investor General Atlantic is reportedly exploring the sale of OneOncology, which operates independent cancer-care practices, in a deal which could be valued over $2 billion, including debt. General Atlantic previously obtained a majority stake in the company in a $200 million 2018 investment.

BUSINESS OF THE FIRM

Lateral Moves:

• Dechert hired Orrick's global practice head John 'Jay' Jurata, Jr. and partners Russell Cohen and Douglas Lahnborg.

• Wilson Sonsini hired partner Sebastian Alsheimer from Olshan Frome Wolosky.

• Cadwalader hired partners Martin J. Weinstein and Jeffrey D. Clark from Willkie Farr.

• Sidley hired partner Phil Cheveley from Shearman & Sterling.

Industry News:

• LSAT still mandatory. The ABA voted to reject a proposal that would would have made use of the LSAT optional in law school admissions.

• Discrimination claims. Following a departing lawyer's tell-all departure email, the managing partner of Baker McKenzie's Brussels office, Daniel Fesler, has temporarily stepped down while the firm investigates claims of discrimination.

BOILERPLATE

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