NEW YORK - The reorganized version of bankrupt Arcapita Bank B.S.C. on Nov. 7 filed an omnibus brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that $23,036,633 in claims against the bankruptcy estate asserted by three creditors should be disallowed on grounds that they are equity interest claims (In Re: Arcapita Bank B.S.C., No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).
RIVERSIDE, Calif. - The California Public Employees Retirement System (CalPERS) on Nov. 7 filed a brief in the U.S. Bankruptcy Court for the Central District of California, asking it to reconsider an oral ruling it issued denying CalPERS's direct appeal to the Ninth Circuit U.S. Court of Appeals regarding the City of San Bernardino's eligibility to file for Chapter 9 bankruptcy (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).
SACRAMENTO, Calif. - Two financial companies that together hold more than $35 million in bonds for the public financing of the bankrupt City of Stockton, Calif., on Nov. 7 filed a brief in the U.S. Bankruptcy Court for the Eastern District of California objecting to the city's motion for approval of its plan of adjustment (In Re: City of Stockton, Calif., No. 1232118, Chapter 9, E.D. Calif. Bkcy.).
SAN FRANCISCO - Parties on Nov. 7 briefed the Ninth Circuit U.S. Court of Appeals on whether a $25 payment made on an allegedly unlawful attempt to collect on a $9,000 automobile debt satisfies the California unfair competition law (UCL) injury standard (Roderick Wright, et al. v. General Motors Acceptance Corp., No. 12-55319, 9th Cir.).
SAN JOSE, Calif. - A federal judge in California on Nov. 6 ordered a fund manager to pay nearly $7.8 million in disgorgement, prejudgment interest and civil penalties for misrepresenting the investment activity of three funds he was managing in violation of the anti-fraud provisions of the federal securities laws (Securities and Exchange Commission v. Small Business Capital Corp., et al., No. 12-3237, N.D. Calif.; 2013 U.S. Dist. LEXIS 159227).
NEW YORK - Suntech Power Holdings Co. Ltd., which was placed into involuntary bankruptcy by a group of creditors, on Nov. 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the bankruptcy should be dismissed (In Re: Suntech Power Holdings Co. Ltd., No. 13-13350, Chapter 7, S.D. N.Y. Bkcy.).
NEWARK, N.J. - Summary judgment against a former employee of Autodesk Inc. who is alleged to have provided inside information to a hedge fund manager as part of an insider trading scheme is warranted because the employee's relationship with the hedge fund manager demonstrates a "personal benefit to the tipper," a federal judge in New Jersey ruled Nov. 6 (Securities and Exchange Commission v. Clay Capital Management LLC, et al., No. 11-5020, D. N.J.; 2013 U.S. Dist. LEXIS 159130).
NEW YORK - A federal district court did not err in dismissing a securities class action complaint against Freddie Mac for alleged federal securities law violations because the lead plaintiff failed to plead loss causation, a Second Circuit U.S. Court of Appeals panel ruled Nov. 5 (Central States, Southeast and Southwest Areas Pension Fund, et al. v. Federal Home Loan Mortgage Corp., et al., No. 12-4353, 2nd Cir.; 2013 U.S. App. LEXIS 22413).
SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on Nov. 7 affirmed a district court's finding that a man had committed bankruptcy fraud as part of a business scheme to avoid debts related to losses he incurred speculating on the cattle futures market (The United States of America v. Todd Kenneth Horob, No. 11-30119, Chapter 13, 9th Cir.; 2013 U.S. App. LEXIS 22604).
NEW HAVEN, Conn. - RBS Securities Inc. will pay more than $153 million to settle claims that it misrepresented the investment quality of a $2.2 billion residential mortgage-backed security (RMB) offering it was promoting in violation of federal securities law, according to court documents filed Nov. 7 in Connecticut federal court (Securities and Exchange Commission v. RBS Securities Inc., No. 13-1643, D. Conn.).
WILMINGTON, Del. - A barrister-at-law who is permitted to practice law by the Bar of Ireland on Nov. 5 filed a brief opposing the Chapter 15 bankruptcy petition of Irish Bank Resolution Corp. Ltd. (IBRC) filed in the U.S. Bankruptcy Court for the District of Delaware on grounds that the claims made by the Central Bank of Ireland (CBI) on the assets of IBRC are "illegal" (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).
DETROIT - Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, the Syncora entities) on Nov. 6 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to the bankrupt City of Detroit's motion seeking an order authorizing between $11 million and $12 million for a public lighting initiative in connection with the city's revitalization that is not tied to recovery for the city's creditors (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
TAMPA, Fla. - A federal judge in Florida on Nov. 6 denied a property appraiser's motion for summary judgment in the Federal Deposit Insurance Corp.'s suit alleging that she conducted a negligently prepared appraisal that contained misrepresentations for a since-failed bank, finding that there are genuine issues of material fact regarding the FDIC's standing to bring the suit (Federal Deposit Insurance Corp. v. Diana Pearl, No. 12-1813, M.D. Fla.; 2013 U.S. Dist. LEXIS 159046).
NEW YORK - The federal judge in New York overseeing the U.S. government's civil forfeiture action against a hedge fund and certain of its related entities on Nov. 6 granted approval of a plea deal that will see the defendants paying $1.8 billion to settle claims that they engaged in a massive insider trading scheme (United States of America v. SAC Capital Advisors LP, et al., No. 13-5182, S.D. N.Y.).
DETROIT - The U.S. government on Nov. 6 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan supporting the constitutionality of Detroit's decision to file for Chapter 9 bankruptcy (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D .Mich. Bkcy.).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Nov. 5 affirmed a bankruptcy court's decision that a creditor of a debtor company was not entitled to recover his $1.4 million loan to the company because the loan itself was part of a plan to establish an illegal tax shelter (Terrill J. Horton v. Walter O'Cheskey, Chapter 11 trustee, No. 12-11200, Chapter 11, 5th Cir.; 2013 U.A. App. LEXIS 22468).
WASHINGTON, D.C. - A state's lawsuit may not be removed to federal court under the Class Action Fairness Act (CAFA), Jonathan S. Massey of Washington, representing the State of Mississippi's attorney general, told the U.S. Supreme Court on Nov. 6 (State of Mississippi, ex rel. Jim Hood, Attorney General v. AU Optronics Corp., et al., No. 12-1036, U.S. Sup.).
JACKSON, Miss. - The rental car company that does business under the name "Advantage Rent-A-Car" on Nov. 5 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Mississippi, listing both assets and debts ranging between $100 million and $500 million (In Re: Simply Wheelz d/b/a Advantage Rent-A-Car, No. 13-03332, Chapter 11, S.D. Miss. Bkcy.).
DETROIT - The bankrupt City of Detroit on Nov. 5 filed a brief objecting to the application for an order filed by the Official Committee of Retirees that seeks to retain Dentons US as its counsel, along with a subcontractor of Dentons because the payment structure involved in the arrangement with the subcontractor is "contrary to the fee review order" issued by the bankruptcy court (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
TRENTON, N.J. - A New Jersey appeals court in a Nov. 4 unpublished opinion affirmed the dismissal of chiropractors' challenge to a health insurer's policy provision limiting reimbursement of diagnostic imaging services but ordered the case transferred to the state insurance department for review of a claim alleging violation of a state law requiring group health policies to cover services performed by chiropractors if the services are also reimbursed when provided by other health providers (The Association of New Jersey Chiropractors Inc., et al. v. Horizon Healthcare Services Inc., et al., No. A-6022-11T4, N.J. Super., App. Div.; 2013 N.J. Super. Unpub. LEXIS 2677).
SAN DIEGO - Injunctive relief and restitution constitute separate remedies under the California unfair competition law (UCL), and lack of standing to pursue one does not bar the other, a California federal judge held Nov. 1 (Gino Maraventano and Neesha Kurji v. Nordstrom Inc., a Washington corporation, and DOES 1-100 inclusive, Gina Balasanyan and Nune Nalbandian, et al. v. Nordstrom Inc., et al. Nos. 10-2671, 11-2609, S.D. Calif.; 2013 U.S. Dist. LEXIS 157194).
NEW YORK - A federal judge in New York on Nov. 4 denied the dismissal of a class action complaint alleging that a Citicorp subsidiary failed to comply with the Truth in Lending Act (TILA) billing notice requirements in a consumer's credit card statement but granted the subsidiary's motion to strike the consumer's request for $1 million in statutory damages (Marcy Zevon v. Department Stores National Bank, No. 12-7799, S.D. N.Y.; 2013 U.S. Dist. LEXIS 157784).
NEW YORK - Bankrupt Hostess Brands Inc. on Nov. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a stipulation that would reduce the amount owed by Kroger Co. to the Hostess estate from $2,835,028.14 to $1.95 million (In Re: Old HB Inc., No. 12-22052, Chapter 11. S.D. N.Y. Bkcy.).
SAN FRANCISCO - A procedure for determining the portion of settlement proceeds to be awarded to certain class members in a consumer antitrust action against Microsoft Corp. does not violate the terms of the underlying $1.1 billion settlement agreement, a California appellate court affirmed Oct. 31 in an unpublished opinion (Charles J. Longo, et al. v. Microsoft Corporation, No. A136531, Calif. App., 1st Dist.; 2013 Cal. App. Unpub. LEXIS 7931).
SAN FRANCISCO - A federal district court judge erred in granting summary judgment on behalf of a debt collector in a Fair Debt Collection Practices Act (FDCPA) lawsuit, a divided Ninth Circuit U.S. Court of Appeals panel ruled Nov. 4, because the debt collector's alleged FDCPA violations were not covered under the bona fide error rule (Arthur Engelen v. RBB Erin Capital Management LLC, et al., No. 12-55039, 9th Cir.; 2013 U.S. App. LEXIS 22359).