ATWATER, Calif. - The Atwater City Council on Sept. 19 issued a report in which it recommended that the city manager declare a fiscal emergency pursuant to state code in order to prepare the way for the municipality to file a Chapter 9 bankruptcy petition.
SAN FRANCISCO - A federal judge in California on Sept. 20 sentenced Taiwan-based AU Optronics Corp. (AUO) to pay a $500 million criminal fine for engaging in a global conspiracy to fix worldwide prices of thin-film transistor-liquid crystal display panels for use in computer monitors and televisions in violation of Section 1 of the Sherman Act, 15 U.S.C.S. § 1 et seq. (United States of America v. AU Optronics Corp., et al., No. 09-cv-0110 SI, N.D. Calif.). View related prior history, 2012 U.S. Dist. LEXIS 80605.
WASHINGTON, D.C. - Three state attorneys general have joined a lawsuit challenging the constitutionality of provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 124 Stat. 1376, according to an amended complaint filed Sept. 20 in Washington federal court (State National Bank of Big Spring, et al. v. Timothy Geithner, et al., No. 12-1032, D. D.C.).
DENVER - A federal judge in Colorado on Sept. 20 granted in part and denied in part an attorney's request for fees for work done in a Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq., lawsuit against a debt collector, ruling that although the amount sought and the number of hours provided are excessive, the attorney is entitled to $1,900 in fees (Doetta Livingston v. Midland Credit Management Inc., No. 11-2775, D. Colo.; 2012 U.S. Dist. LEXIS 134633).
WASHINGTON, D.C. - A federal judge in Washington on Sept. 20 dismissed former Fannie Mae CEO Franklin D. Raines from a securities fraud suit, ruling that the plaintiffs offered no evidence that Raines knew that the company had overstated its profits by $6.3 billion between 2001 and 2004 (In Re: Fannie Mae Securities Litigation, No. 04-01639, Dist. D.C.). View related prior history, 2009 U.S. App. LEXIS 9.
PHOENIX - A federal judge in Arizona on Sept. 19 dismissed a consumer's Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq.,complaint against a debt collector, ruling that judgments in two substantially similar suits bar the claims in the instant action under res judicata (Sol Jaffe v. Cardworks Servicing LLC, No. 12-1058, D. Ariz.; 2012 U.S. Dist. LEXIS 133743).
NEW YORK - A federal judge in New York on Sept. 19 issued an order dismissing claims for negligent misrepresentation against rating agencies in a securities class action lawsuit after investors withdrew the claims in light of a recent Second Circuit U.S. Court of Appeals ruling (Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., Inc., et al., No. 08-7508, S.D. N.Y.). View related prior history, 2012 U.S. Dist. LEXIS 119671.
NEW YORK - Directors and officers of a company argued in a New York federal court on Sept. 19 that a shareholder has failed to assert particularized facts in support of the contention that presuit demand on the company's board of directors would have been futile (Louisiana Municipal Police Employees' Retirement System, Derivatively on Behalf of Itself, and All Others Similarly Situated v. Dan R. Hesse, et al., No. 12-cv-04017, S.D. N.Y.). Subscribers may view the brief available within the full article.
ATLANTA - The 11th Circuit U.S. Court of Appeals on Sept. 19 reversed the dismissal of a consumer's complaint in which he alleged that Bank of America (BOA) failed to properly investigate and remove charges on his credit card for a cancelled travel club membership, finding, among other things, that the consumer adequately pleaded a "billing error" as defined by the Fair Credit Billing Act (FCBA) 15 U.S.C.S. § 1666, (James Rigby v. FIA Card Services, No. 12-10053, 11th Cir.; 2012 U.S. App. LEXIS 19681).
OXFORD, Miss. - A federal judge in Mississippi on Sept. 17 ruled that summary judgment in a debt collection lawsuit is not proper because a triable issue of material fact exists as to whether a debt collection violated provisions of the Fair Debt Collection Practices Act (FDCPA)15 U.S.C.S. § 1692e , in attempting to collect on a consumer debt (Roger Abernathy v. NCC Business Services Inc., No. 11-219, N.D. Miss.; 2012 U.S. Dist. LEXIS 132762).
MIAMI - Dismissal of a consumer's Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. § 1692e, lawsuit against a law firm and one of its attorneys is proper because the consumer has failed to state a claim for relief, a federal judge in Florida ruled Sept. 19 in dismissing the consumer's second amended complaint and denying the consumer's motion for leave to amend his complaint (Juan Abanto v. Hayt, Hayt & Landau, P.L., et al., No. 11-24543, S.D. Fla.; 2012 U.S. Dist. LEXIS 133788).
LAS VEGAS - A federal judge in Nevada on Sept. 17 granted summary judgment to the Federal Deposit Insurance Corp. in a suit in which the FDIC, as the receiver for a failed bank, alleged that the defendants defaulted on a $2 million loan, dismissing the defendants' contentions that the FDIC did not show that Nevada closed the bank or that it appointed the FDIC as receiver (Federal Deposit Insurance Corp. v. CBC Financial Corp., et al., No. 11-00297, D. Nev.; 2012 U.S. Dist. LEXIS 133069).
DETROIT - A drainage district lacks standing to assert antitrust, Racketeer Influenced and Corrupt Organizations Act., 18 U.S.C.S. §§ 1961 et seq., and state noncontractual claims against former Detroit Mayor Kwame Kilpatrick and others on allegations that the defendants conspired to overcharge the Detroit Water and Sewerage Department (DWSD) for repairing a sewer collapse, a federal judge in Michigan ruled Sept. 17, finding that the district was an indirect purchaser (Macomb Interceptor Drain Drainage District, et al. v. Kwame Kilpatrick, et al., No.11-13101, E.D. Mich.; 2012 U.S. Dist. LEXIS 132395).
WATERLOO, Iowa - Russell R. Wasendorf Jr., the son of former Peregrine Financial Group CEO Russell R. Wasendorf Sr., on Sept. 19 sued U.S. Bank in an Iowa state court, alleging that it committed fraud by not fulfilling its fiduciary duty to inform Peregrine that it was comingling customer funds with other money used for running the company (Russell R. Wasendorf Jr. v. U.S. Bank, No. LACV119935, Iowa Dist., Black Hawk Co.). Subscribers may view the complaint available within the full article.
WASHINGTON, D.C. - A federal judge in Washington on Sept. 17 denied the U.S. government's motion for reconsideration of a July ruling granting in part and denying in part the government's motion to dismiss a shareholder class action and derivative amended complaint challenging the government's takeover of American International Group Inc. (AIG) during the financial crisis (Starr International Co. Inc. v. The United States, et al., No. 11-779, Fed. Clms.).
SAN FRANCISCO - A man may amend his California unfair competition law (UCL) unlawful-prong action against his lenders who allegedly failed to provide due diligence, but the remainder of his claims lack sufficient particularity, a federal judge held Sept. 17 (John Avila v. Wells Fargo Bank, et al., No. 12-1237, N.D. Calif.; 2012 U.S. Dist. LEXIS 132499).
SAN FRANCISCO - Loan documents a couple attached as evidence of fraud in their California unfair competition law (UCL) action lay out the precise terms of the loan they received, a federal judge held Sept. 17 in dismissing the claims (Rosa M Villegas and Gerardo Chavez v. Wells Fargo Bank N.A. and DOES 1-20, inclusive, No. 12-2004, N.D. Calif.; 2012 U.S. Dist. LEXIS 132511).
CHICAGO - A federal judge in Illinois on Sept. 19 declined to dismiss a consumer's Fair Credit Reporting Act (FCRA) lawsuit against Chase Bank USA N.A., ruling only that the motion is "taken under advisement pending a hearing" (Kent v. Chase Bank USA N.A., No. 12-1411, N.D. Ill.; 2012 U.S. Dist. LEXIS 133579).
SAN JUAN, Puerto Rico - Humana Health of Puerto Rico Inc., a health insurer, sufficiently alleged that eight physicians violated federal and state antitrust laws by price-fixing, a federal judge in Puerto Rico ruled Sept. 17 in denying the physicians' motion to dismiss (Humana Health of Puerto Rico, Inc. v. Juan L. Vilaro, et al., No. 12-1445, D. Puerto Rico). Subscribers may view the opinion available within the full article.
NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Sept. 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that its settlement and release plan for the firm's partners meets federal bankruptcy standards (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
SAN FRANCISCO - A California federal magistrate judge on Sept. 18 granted dismissal of unregistered trademark dilution and common-law trademark infringement claims but will allow a pro se plaintiff leave to amend his complaint (Akeem O. Brown v. Shawn David Green et al., No. 12-2113, N.D. Calif.). Subscribers may view the order available within the full article.
CHICAGO - A federal judge in Illinois on Sept. 17 granted a bank and an ATM owner and operator's motion for summary judgment in a putative class action that alleges that the defendants violated the Electronic Funds Transfer Act's (EFTA) 15 U.S.C.S. § 1601 , ATM fee notice requirements, ruling that the evidence shows that the owner and operator posted a fee notice and that it was not removed by an employee of the owner and operator or bank (Hank Drager v. Bridgeview Bank, No. 10-07585, N.D. Ill.; 2012 U.S. Dist. LEXIS 132584).
PHILADELPHIA - A federal judge in Pennsylvania on Sept. 14 declined to reconsider or to certify for interlocutory appeal his ruling declining to dismiss allegations by a developer of technology used to locate mobile handsets that three corporate members of a standard-setting organization (SSO) engaged in a conspiracy to exclude the developer's technology from the SSO's standard (TruePosition, Inc. v. LM Ericsson Telephone Company, et al., No. 11-4574, E.D. Pa.; 2012 U.S. Dist. LEXIS 131453).
KANSAS CITY, Kan. - Consumers in a class action lawsuit have failed to show that a debt collector violated state or federal debt collection laws by collecting an interest rate higher than allowed under state law because the controlling statute allows for such action, a federal judge in Kansas ruled Sept. 18 (Donald M. Browning, et al. v. Cohen, McNeile & Pappas P.C., No. 11-2611, D. Kan.; 2012 U.S. Dist. LEXIS 132714).
SAN JOSE, Calif. - A federal judge in California on Sept. 17 granted JP Morgan Chase Bank NA's motion to dismiss a wrongful foreclosure suit brought by a borrower who originally took out his more than $1.2 million loan with the failed Washington Mutual Bank (WaMu), refuting the borrower's argument that Chase did not require any rights regarding the loan when it purchased Chase's assets (Angel S. Lomely v. JP Morgan Chase Bank NA, No. 12-01194, N.D. Calif.; 2012 U.S. Dist. LEXIS 132599).