Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, December 19. In today's briefing, the administrator winding down what remains of Terraform Labs is seeking $4 billion in damages. And the tie-up between Hogan Lovells and Cadwalader marks the latest high-profile consolidation in the legal industry.

Jump accused of contributing to collapse of Do Kwon’s Terraform. The administrator winding down what remains of Do Kwon’s Terraform Labs has sued Jump Trading, alleging that the high-speed trading giant unlawfully profited from and contributed to the crypto empire’s collapse.

A court-appointed plan administrator alleged that Jump had entered into a secret deal to prop up TerraUSD before the coin’s collapse, and later emerged from Terraform’s collapse with billions of dollars in gains.

Hogan Lovells and Cadwalader to merge, creating $3.6 billion law firm. The tie-up is described as the industry’s largest ever, creating a $3.6 billion megafirm with more than 3,000 lawyers. Hogan Lovells Cadwalader will be the fifth-largest global law firm by revenue, according to the firms’ announcement.

Cadwalader had been actively looking for a merger partner as it struggled with departures of some of its partners in the last year.

Begin Learning files for bankruptcy as it adjusts to waning post-Covid demand. Begin Learning, a software publisher for children’s apps and learning kits under such brands as CodeSpark and Little Passports, has filed for bankruptcy as it adjusts to falling demand after worries over the Covid pandemic waned.

The New York-based company, known formally as Conscious Content Media, filed for chapter 11 Wednesday in the U.S. Bankruptcy Court in Wilmington, Del., with liabilities exceeding $200 million and with a proposed restructuring agreement with bondholders.

Creditors agreeing to the restructuring include Magnetar Financial, owed $100 million on notes coming due next month, as well as Marbruck Investments and Sesame Workshop, the nonprofit behind Sesame Street. The reorganization aims to eliminate $106.5 million in liabilities, and provide at least $20 million in fresh capital to help the business get through bankruptcy.

Like other education technology companies, Begin “experienced headwinds as heightened consumer demand during the pandemic returned to pre-pandemic” levels, chief executive Neal Shenoy said in a sworn declaration. –Becky Yerak

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