OMAHA, Neb. - A federal judge in Nebraska on Aug. 3 dismissed counterclaims in a suit in which the issuers of loans allege that the owners of a cattle feed yard failed to pay amounts owed, constituting a default and breach of the loan guarantees (Farm Credit Services of America PCA, et al. v. Brad Haun, et al., No. 11-00320, D. Neb.; 2012 U.S. Dist. LEXIS 108765).
TAMPA, Fla. - A company that supplies karaoke compact disks need not name a karaoke operator to sustain claims of vicarious infringement and unfair competition and trade practices against the restaurant that hired the operator, a Florida federal judge said Aug. 3, denying a motion to dismiss (Slep-Tone Entertainment Corporation v. Il Mio Sogno, LLC, No. 8:12-cv-1187-T-30EAJ, M.D. Fla.; 2012 U.S. Dist. LEXIS 108702).
CHICAGO - JPMorgan Chase Bank N.A. filed a brief in the U.S. Bankruptcy Court for the Northern District of Illinois on Aug. 6 opposing a motion by the trustee in the Chapter 7 bankruptcy of Peregrine Financial Group Inc., arguing that the trustee should not be granted broad subpoena power in his investigation of financial institutions that did business with Peregrine before its bankruptcy (In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.). Subscribers may view the brief available within the full article.
DETRIOT - SAAB Automobiles AB and its Dutch owner, Spyker NV, on Aug. 6 sued General Motors Co. in the U.S. District Court for the Eastern District of Michigan, seeking $3 billion in damages for allegations that GM took actions that "had the direct and intended" result of driving Saab into Chapter 11 bankruptcy (SAAB Automobiles AB, et al. v. General Motors Company, No. 12-13432, E.D. Mich.).
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DENVER - A federal judge in Colorado on Aug. 2 granted Target National Bank N.A.'s motion to dismiss a suit alleging that the bank's credit card interest rates violated the National Banking Act 12 U.S.C.S. § 85, (Marie T. Giannangeli v. Target National Bank N.A., No. 11-02154, D. Colo.; 2012 U.S. Dist. LEXIS 108268).
ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on Aug. 3 reversed and remanded a bankruptcy court's ruling that denied an insurer its right to recoupment and concluded that the bankruptcy court had improperly applied a "balancing of equities" test to make its decision (Joseph Warren Terry v. Standard Insurance Coumpany [In Re: Joseph Warren Terry], No. 11-2582, Chapter 7; 2012 U.S. App. LEXIS 16095).
WILMINGTON, Del. - RG Steel LLC, the affiliate of bankrupt WP Steel Venture LLC, on Aug. 2 announced it had reached an agreement to sell one of its plants for $20 million to a contractor that specializes in plant demolition, among other things (In Re: WP Steel Venture LLC, No. 12-11661, Chapter 11, D. Del. Bkcy.). Subscribers may view the agreement available within the full article.
NEW YORK - A creditor that holds a patent licensing agreement with bankrupt Eastman Kodak Co. on Aug. 3 moved in the U.S. Bankruptcy Court for the Southern District of New York for a determination that, based on that contract, it has a valid, perfected and first-priority lien (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). See related prior history 2012 Bankr. LEXIS 2944.
NEWARK, N.J. - A federal judge in New Jersey on Aug. 1 significantly trimmed a shareholder's state and federal securities law claims against pharmaceutical giant Merck & Co. Inc. and several of its current and former officers and directors, who are alleged to have misrepresented significant risk associated with Merck's sale and marketing of Vioxx (Stichting Pensioenfonds ABP v. Merck & Co. Inc., et al., No. 05-5060, D. N.J.).See related prior history, 2012 U.S. Dist. LEXIS 56309.
TAMPA, Fla. - A Florida federal judge on Aug. 2 dismissed aiding and abetting claims from a suit accusing Wells Fargo Bank NA and Wachovia Bank NA of failing to detect convicted hedge fund manager Arthur G. Nadel's $168 million Ponzi scheme but allowed other claims to remain (Burton W. Wiand v. Wells Fargo Bank N.A., et al., No. 12-00557, M.D. Fla.). Subscribers may view the opinion available within the full article.
NEW YORK - The federal judge in New York overseeing a securities class action against IMAX Corp., certain of its current and former officers and directors and its auditor granted an award of nearly $4 million in attorneys' fees and expenses on Aug. 1, ruling that lead counsel in the action should divide the fees pursuant to its "good-faith judgment" (In re IMAX Corp. Securities Litigation, No. 06-6128, S.D. N.Y.; 2012 U.S. Dist. LEXIS 108516).
NEW YORK - A federal judge in New York on Aug. 2 approved nine settlement agreements worth approximately $183 million after reduction for opt-outs between air carriers and direct and indirect domestic and foreign purchasers of airfreight shipping services on their claims that the carriers were part of a worldwide price-fixing scheme (In re: Air Cargo Shipping Services Antitrust Litigation No. 06-MD-1775, E.D. N.Y.; 2012 U.S. Dist. LEXIS 108299).
LITTLE ROCK, Ark. - An Arkansas federal judge refused to throw out a lawsuit alleging violation of the Arkansas Deceptive Trade Practices Act (ADTPA) stemming from defective pollution control systems in Caterpillar diesel truck engines, saying in an Aug. 3 opinion that significant fact issues remain and that a witness's alleged statement to the plaintiff that the problem had been solved was not necessarily mere puffery (JMAR Express Inc., et al. v. Peterbilt of Memphis Inc., et al., No. 4:10CV01231-BRW, E.D. Ark., Western Div.; 2012 U.S. Dist. LEXIS 108685).
LAS VEGAS - A Nevada federal judge on Aug. 3 refused to dismiss claims by stun-gun maker TASER Inc. that a competitor issued unfair and misleading press releases to drive its stock price down and granted the plaintiff time to depose two key defendant witnesses regarding their role in the releases (TASER International, Inc. v. Stinger Systems, et al., No. 2:09-cv-289-MMD-PAL; 2012 U.S. Dist. LEXIS 108737).
CHICAGO - The Seventh Circuit U.S. Court of Appeals on Aug. 2 reversed a district court's dismissal of a Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq., finding that the attorney fee statements in the debt collection agency's letters to a plaintiff debtor were materially false and misleading on their face (Jeffrey Lox v. CDA Limited, No. 11-2729, 7th Cir.; 2012 U.S. App. LEXIS 15961).
NEW YORK - The National Aeronautics and Space Administration's inspector general issued a report Aug. 2 rejecting conflict-of-interest charges brought in connection with the Chapter 11 bankruptcy proceeding of wireless networking company Lightsquared Inc. as it relates to a communications contract with NASA (In Re: Lightsqaured Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Two independent directors told a Delaware court on Aug. 2 that they should be dismissed from a shareholder derivative lawsuit because they had no knowledge at the relevant time of the wrongdoing allegedly perpetrated by their company's chairman of the board (In re Puda Coal, Inc. Stockholders Litigation, No. 6476-CS, Del. Chanc.). Subscribers may view the brief in support of motion to dismiss available within the full article.
NEW YORK - A federal judge erred in dismissing a shareholder class action lawsuit against a Chinese oil exploration and production company, certain of its current and former directors and others because the lead plaintiff in the action properly pleaded loss causation pursuant to the U.S. Supreme Court's ruling in Dura Pharmaceuticals, Inc. v. Broudo, a Second Circuit U.S. Court of Appeals panel ruled Aug. 1 (Acticon AG v. China North East Petroleum Holdings Ltd., No. 11-4544, 2nd Cir.). View related prior history, 2006 U.S. Dist. LEXIS 41193.
CINCINNATI - An issuer of a financial institution bond is not entitled to credit a commercial crime insurer's $50,000 payment against an insured's recovery of damages stemming from employee theft, a majority of the Sixth Circuit U.S. Court of Appeals ruled Aug. 1, reversing a lower federal court in part (First Defiance Financial Corporation, et al. v. Progressive Casualty Insurance Company, Nos. 10-3943/3944, 6th Cir.; 2012 U.S. App. LEXIS 15852).
PHOENIX - An Arizona federal judge on July 31 certified a national class of people who bought stock in Matrixx Initiatives Inc. from Dec. 22, 2007, and June 15, 2009, and allegedly saw their stock price drop because the company failed to report 800 cases of customers who lost their sense of smell (anosmia) after using Matrixx's nonprescription cold remedy nasal products (David Shapiro, et al. v. Matrixx Initiatives, Inc, et al., No. 09-1479, D. Ariz.).
NEW YORK - Shareholders and a number of defendants in a securities class action lawsuit against investment bank IndyMac Bank MBS Inc., its subsidiary and others have agreed to settle claims for $6 million, according to court documents filed July 31 by the lead plaintiffs in the action (In re IndyMac Mortgage-Backed Securities Litigation, No. 09-4583, S.D. N.Y.). Subscribers may view the motion for class certification available within the full article.
NEWARK, N.J. - Dismissal of a securities class action complaint is proper, a federal judge in New Jersey ruled July 31, because the federal securities law claims brought by the lead plaintiff in the action are time-barred (Pension Trust Fund for Operating Engineers v. Mortgage Asset Securitization Transactions, Inc., et al., No. 10-898, D. N.J.; 2012 U.S. Dist. LEXIS 106542).
ROCK HILL, S.C. - A federal judge in South Carolina on Aug. 1 found that a boat dealership violated the Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq. and awarded a $16,660 judgment to the plaintiff (Darwin Dwight Roots v. American Marine Liquidators Inc., No. 12-00602, D. S.C.; 2012 U.S. Dist. LEXIS 106937).
LAS VEGAS - An Internet site accused of copyright infringement of "adult-themed" videos must disclose to a Las Vegas video producer the identities of six people who allegedly uploaded protected video, a Nevada federal judge ruled Aug. 1 (Liberty Media Holdings, LLC v. Sergej Letyagin, d/b/a SunPorno.com, et al., No. 2:12-cv-00923-LRH-GWF, D. Nev.; 2012 U.S. Dist. LEXIS 107184).
PHILADELPHIA - An elderly resident whose home was rendered uninhabitable by substandard repair work and is being foreclosed upon won more than $1 million in a default judgment against several defendants Aug. 1 in a Pennsylvania federal court on claims under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL) (Mildred v. Bibbs v. Security Atlantic Mortgage Co. Inc., et al., No. 2:10-cv-00346-TON, E.D. Pa.; 2012 U.S. Dist. LEXIS 107337).