NEW YORK - Although entirely lifting the mandatory discovery stay in a securities class action lawsuit is not proper, lifting it in part to allow a lead plaintiff to request that a nonparty preserve certain documents is proper, a federal judge in New York ruled April 25 (In re Smith Barney Transfer Agent Litigation, No. 05-7583, S.D. N.Y.; 2012 U.S. Dist. LEXIS 58070).
CHICAGO - In a case arising from an unpaid mortgage loan, a federal judge in Illinois on April 26 granted the defendants' motions to voluntarily dismiss the Federal Deposit Insurance Corp. from the action and remand the suit to a state court (Inland Bank v. Robert Newman Family LLC, et al., No. 12-00379, N.D. Ill.; 2012 U.S. Dist. LEXIS 58528).
WILMINGTON, Del. - Parties to a shareholder lawsuit against a company and certain of the company's directors and officers over the sale of the company on April 26 filed a stipulation and agreement of settlement in a Delaware court (In re Caliper Life Sciences, Inc. Shareholders Litigation, No. 6853-VCP, Del. Chanc.).
WILMINGTON, Del. - The Official Committee of Equity Security Holders in bankrupt Syms Corp. on April 25 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Syms' motion for appointment of an examiner to investigate potential estate causes of action related to the company's directors and officers, contending that the examiner's report will be of no value (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).
CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on April 25 ruled that a bankruptcy court order denying a creditor's attempt to transfer his adversary action to the district court was not a final order; therefore, the appellate court lacked jurisdiction and the appeal was dismissed (Demetrious Yadirf Smith v. Bluegrass Mortgage Services Inc., No. 10-5785, Chapter 7, 6th Cir.; 2012 U.S. App. LEXIS 8391).
ATLANTA - Reverse payment settlements between the holder of a drug patent and generic manufacturers of the drug did not constitute an unfair restraint on trade in violation of Section 5(a) of the Federal Trade Commission Act 15 U.S.C.S. §45, the 11th Circuit U.S. Court of Appeals ruled April 25 in affirming the dismissal of the Federal Trade Commission's antitrust lawsuit (Federal Trade Commission v. Watson Pharmaceuticals, Inc., et al., No. 10-12729, 11th Cir.; 2012 U.S. App. LEXIS 8377).
SACRAMENTO, Calif. - The Sacramento Kings professional basketball team of the National Basketball Association on April 24 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of California, listing debts between $1 million and $10 million (In Re: Kings Professional Basketball Club, No. 12-27935, Chapter 11, E.D. Calif. Bkcy.). Subscribers may view the petition available within the full update.
SAN JOSE, Calif. - A federal judge in California on April 25 certified a nationwide class for borrowers who obtained a mortgage loan through Washington Mutual Bank FA (WMB) since June 2006 in which the lender obtained appraisals through eAppraiseIT LLC after finding that the plaintiffs sufficiently demonstrated that proof of an alleged conspiracy can be proven on a classwide basis and that common proof can be used to determine inflation in the aggregate (Felton A. Spears, et al. v. First American EAppraiseIT, a/k/a eAppraiseIT LLC, No. C-08-00868 RMW, N.D. Calif.). Subscribers may view the order available within the full update.
ATLANTA - In light of the U.S. Supreme Court's ruling that "Congress did not deprive federal courts of federal-question jurisdiction over private TCPA (Telephone Consumer Protection Act, 47 U.S.C.S. § 227) suits," the 11th Circuit U.S. Court of Appeals on April 23 reversed and remanded a district court's dismissal of a TCPA class action complaint (Lynne Balthazor v. Central Credit Services Inc., et al., No. 11-15513, 11th Cir.; 2012 U.S. App. LEXIS 8082).
CORAL GABLES, Fla. - Citizens Financial Group Inc., RBS Citizens N.A. and Citizens Bank of Pennsylvania (collectively, Citizens), in an April 25 joint notice of settlement filed in Florida federal court, have agreed to pay $137.5 million to settle a class action lawsuit in which it was accused of manipulating its customers' transactions to generate excess overdraft fee revenues (In Re: Checking Account Overdraft Litigation, No. 09-2036, S.D. Fla.). Subscribers may view the joint notice of settlement available within the full update.
NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on April 25 moved in the U.S. Bankruptcy Court for the Southern District of New York to strike certain items designated by the collateral and indenture trustees to be included in their appeal of a bankruptcy court ruling that denied those trustees relief from the automatic stay (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view AMR's motion and the brief of trustees available within the full update.
NEW YORK - Lead plaintiffs in a class action lawsuit against a reinsurance company, certain of its former officers and directors and others have properly pleaded scienter and loss causation against a majority of the defendants, a federal judge in New York ruled April 23 in substantially denying the defendants' motions to dismiss (In re Stillwater Capital Partners Inc. Litigation, No. 11-2275, S.D. N.Y.; 2012 U.S. Dist. LEXIS 57515).
HOUSTON - Insureds' losses did not result "directly" from their employees' misconduct but were the result of the insureds' contractual liability to third-party financial institutions, a Texas federal judge ruled April 23, finding that a commercial crime insurance policy does not provide coverage for the losses (BJ Services S.R.L., et al. v. Great American Insurance Co. No. H-11-2448, S.D. Texas). Subscribers may view the memorandum and order available within the full update.
NEW YORK - A monoline insurer has properly pleaded its fraud-based claims against Goldman, Sachs & Co. for allegedly fraudulently inducing it into providing guaranty insurance for a collateralized debt obligation, but it has failed to plead its claim for unjust enrichment, a New York justice ruled April 23 in granting in part and denying in part Goldman Sachs' motion to dismiss (ACA Financial Guaranty v. Goldman, Sachs & Co., No. 650027/11, N.Y. Sup., New York Co.). Subscribers may view the order available within the full update.
NEW YORK - The bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) on April 25 ruled that creditors who sought a specific type of asset distribution from MFGH's estate could not appeal the opinion that denied their motion directly to the Second Circuit U.S. Court of Appeals on procedural grounds (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). See related prior history, 2012 Bankr. LEXIS 1490, and 2012 Bankr. LEXIS 995. Subscribers may view the opinion available within the full update.
SACRAMENTO, Calif. - A federal judge in California on April 23 granted a consumer's motion to amend a complaint against a debt collector to add a number of class claims, ruling that the consumer timely filed the motion and the debt collector won't be prejudiced by amendment (Robin Langley v. Sentry Credit, Inc., No. 10-3060, E.D. Calif.; 2012 U.S. Dist. LEXIS 56847).
LOS ANGELES - Most intellectual property and unfair competition claims were dismissed April 24 in California federal court in a family feud involving the developer of a popular line of folding bicycles and his wife and son (Dahon North America, Inc. v. Joshua Hon, et al., No. 2:11-cv-05835, C.D. Calif.; 2012 U.S. Dist. LEXIS 57510).
SAN DIEGO - A federal judge in California on April 24 granted the Federal Deposit Insurance Corp.'s motion to substitute another party in place of itself as plaintiff in a suit in which the FDIC, as the receiver for a failed bank, sued defendants for alleged breach of contract on a loan but later sold interest in the loan to another party (Federal Deposit Insurance Corporation Acting as Receiver for La Jolla Bank, FSB v. CG 80, LLC, et al., No. 11-02165, S.D. Calif.; 2012 U.S. Dist. LEXIS 57382).
DENVER - The 10th Circuit U.S. Court of Appeals on April 24 ruled that a debtor could claim certain funds in a Keogh retirement plan as exempt from his bankruptcy estate (David L. Gladwell v. Douglas James Reinhart $(In Re: Douglas James Reinhart$), No. 09-4028, Chapter 7, 10th Cir.; 2012 U.S. App. LEXIS 8251).
SAN FRANCISCO - A federal judge in California on April 23 approved a $38 million settlement of a shareholder suit against a company and certain of its directors and officers, finding it fair, reasonable and adequate (In re Cadence Design Systems, Inc. Securities and Derivative Litigation, No. 08-cv-04966, N.D. Calif.; 2012 U.S. Dist. LEXIS 56785).
HOUSTON - A federal judge in Texas on April 23 dismissed a majority of claims asserted by a couple who claim that Bank of America N.A. and its servicing arm BAC Home Loans Servicing LP wrongfully foreclosed on their property during the loan modification process and only allowed the plaintiffs to amend two of their dismissed claims (Rachelle Casey, et al. v. Federal Home Loan Mortgage Association, et al., No. H-11-3830, S.D. Texas; 2012 U.S. Dist. LEXIS 57316).
NEW YORK - The bankruptcy judge in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 proceeding of MF Global Inc. (MFGI) on April 24 granted the SIPA trustee's claims distribution motion but ruled that agreements the SIPA trustee entered with certain claimants were void and had to be revised (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). See prior history, 2012 Bankr. LEXIS 1490, and 2012 Bankr. LEXIS 995. Subscribers may view the opinion available within the full update.
SALT LAKE CITY - A federal judge in Utah on April 20 granted a motion to dismiss a suit accusing defendants of enabling an alleged Ponzi scheme conducted by a defendant in a Securities and Exchange Commission action, ruling that securities law statutes of limitations bar the plaintiffs' federal claims and declining supplemental jurisdiction over their state law claims (Padilla, et al. v. Winger, et al., No. 11-00897, D. Utah; 2012 U.S. Dist. LEXIS 56688).
NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy case of Eastman Kodak Co. on April 23 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to Kodak's motion seeking an order authorizing it to pay its employees $13.5 million in bonuses (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). See related prior history, 2006 U.S. Dist. Lexis 79879. Subscribers may view the brief available within the full update.
OAKLAND, Calif. - PNY Technologies Inc. failed to sufficiently allege that SanDisk Corp. misused the market power inherent in its patent portfolio in the flash memory technology upstream market to demand multitiered licensing and royalties in the downstream markets, a federal judge in California ruled April 20 in dismissing PNY's antitrust complaint (PNY Technologies, Inc. v. SanDisk Corporation, No. C-11-04689, N.D. Calif.; 2012 U.S. Dist. LEXIS 55965).