SHOP Act

The SHOP Act (S 4095) primarily reforms bankruptcy case venue to prevent "forum shopping," requiring companies filing Chapter 11 bankruptcy to do so in the district where their principal place of business or assets were located for most of the 180 days before filing. It limits nationwide injunctions by restricting courts to issuing orders only for specific case parties or similar individuals in the same judicial district. The bill also targets "judge shopping" by barring attorneys who manipulate case assignments to practice in federal courts, and restricts patent infringement lawsuits to districts where defendants have physical operations or relevant research. These changes aim to ensure bankruptcy cases occur where stakeholders are most affected and reduce venue manipulation across federal courts.