SAN FRANCISCO - The plaintiffs in a shareholder derivative lawsuit told a federal court in California on March 6 that they have reached a settlement with a company's directors and officers (In re Oclaro, Inc. Derivative Litigation, No. 11-cv-03176, N.D. Calif.).
WILMINGTON, Del. - The foreign representatives of bankrupt Irish Bank Resolution Trust Corp. Ltd. (IBRC) on March 7 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that a creditor should not be permitted to pursue litigation against IBRC because it will "negatively impact" liquidation proceedings (Kieran Wallace, et al. v. John Flynn Sr. [In Re: Irish Bank Resolution Trust Corporation Ltd.], No. 13-12159, Adv. No. 13-52547, Chapter 15, D. Del. Bkcy.).
NEW YORK - The federal judge in New York overseeing litigation stemming from contamination allegedly caused by the handling and sale of gasoline containing methyl tertiary butyl ether (MTBE) on March 5 dismissed with prejudice the City of Fresno's lawsuit against Chevron U.S.A. Inc. and others, finding that the city does not have any evidence to show that the defendants' conduct resulted in the threat of contamination to sites that were not previously addressed in a September 2013 ruling (In re: Methyl Tertiary Butyl Ether (MTBE) Products Liability Litigation, MDL 1358, Case No. 00-1898, City of Fresno v. Chevron U.S.A. Inc., et al., No. 04 Civ. 4973, S.D. N.Y.; 2014 U.S. Dist. LEXIS 29194).
ATLANTA - A long-term disability insurer did not act arbitrarily or capriciously in denying benefits to a participant in the absence of objective evidence that she suffered from seizures, the 11th Circuit U.S. Court of Appeals affirmed March 5 in an unpublished opinion (Melissa R. Bloom v. Hartford Life and Accident Insurance Company, No. 13-10827, 11th Cir.; 2014 U.S. App. LEXIS 4081).
BOSTON - More than 3,600 individuals and entities have filed proofs of claim against the bankrupt compounding pharmacy at the center of a deadly fungal meningitis outbreak, according to a March 5 report by a bankruptcy trustee and a committee of injured plaintiffs (In Re: New England Compounding Pharmacy, Inc. Products Liability Litigation, MDL Docket No. 1:13-md-2419, D. Mass.).
WAUKESHA, Wis. - A Wisconsin appeals panel on March 5 found that an insured's bankruptcy does not relieve a commercial general liability insurer of its obligation under a directors and officers (D&O) endorsement to the policy, reversing and remanding a lower court's ruling in favor the insurer (Guy Hollingsworth, et al. v. Landing Condominiums of Waukesha Association Inc., et al., Nos. 2013AP888, 2013AP1538, Wis. App., Dist. 2; 2014 Wisc. App. LEXIS 178.)
PROVIDENCE, R.I. - Evidence that a manufacturer was one of a limited number of brake suppliers for vehicle manufacturers does not create an inference that a mechanic working on those vehicles suffered asbestos exposure from the work, a Rhode Island judge held March 5 (Laverne E. Hostetterr and Eliza Hostetter v. Air & Liquid Systems Corp., et al., No. PC 12-0650, R.I. Super., Providence Plantation; 2014 R.I. Super. LEXIS 30).
BOSTON - A disability plan participant's claim challenging the calculation of his benefits under the Employee Retirement Income Security Act is untimely, the First Circuit U.S. Court of Appeals held March 4, rejecting the participant's theory that, similar to an installment contract, a new accrual period began with each benefits check (Robert Riley v. Metropolitan Life Insurance Company, No. 13-2166, 1st Cir.; 2014 U.S. App. LEXIS 3990).
SAN FRANCISCO - A former starting running back for the West Virginia University football team filed an antitrust class complaint in California federal court on March 5 against the National Collegiate Athletic Association (NCAA) and the "Power Conferences" for the cap placed on athletic scholarships (Shawne Alston, et al. v. National Collegiate Athletic Association, et al., No. 14-1011, N.D. Calif.).
NEW YORK - The U.S. Securities and Exchange Commission on March 6 filed a lawsuit in the U.S. District Court for the Southern District of New York against five former executives of bankrupt law firm Dewey & LeBoeuf, alleging that they engaged in a fraudulent bond offering to finance the ailing firm in violation of various federal laws governing the issuing of securities (Securities and Exchange Commission v. Steven H. Davis, et al., No. N/A, S.D. N.Y.).
NEW YORK - Bankrupt MF Global Holdings Ltd. (MFGH) on March 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York seeking to subordinate and reclassify claims filed by a former employee based on money he says he is owed from the MFGH employee stock program (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).
CHICAGO - Lorillard Tobacco Co. is barred from presenting two studies from the 1950s showing that no asbestos was released from its Micronite filter, an Illinois federal judge ruled March 6, because insufficient evidence exists to evaluate whether the studies meet the scientific reliability requirements of Daubert v. Merrell Dow Pharmaceuticals, Inc. (509 U.S. 579 $(1993$)) (Marilyn F. Quirin v. Lorillard Tobacco Company, et al., No. 1:13-cv-02633, N.D. Ill., Eastern Div.; 2014 U.S. Dist. LEXIS 29081).
ERIE, Pa. - A Pennsylvania federal judge on March 5 refused to dismiss an insured's breach of contract and bad faith lawsuit, rejecting the insurer's argument that underlying dispute was over business transactions that were not performed in the course of "professional services" as defined in the professional liability errors and omissions insurance policy (Municipal Revenue Service Inc., et al. v. Houston Casualty Co., No. 1:13-cv-151 Erie, W.D. Pa.; 2014 U.S. Dist. LEXIS 27762).
LOS ANGELES - A labor economist and professor on March 6 presented expert testimony in support of current California teacher employer laws in the lawsuit filed in Los Angeles County Superior Court by California students challenging the constitutionality of those laws (Beatriz Vergara, et al. v. State of California, et al., No. BC484642, Calif. Super., Los Angeles Co.).
LAFAYETTE, La. - Fearing that he will be charged with perjury, a retired Eli Lilly and Co. executive on March 6 asked the Actos multidistrict litigation court to modify a subpoena so his attorneys can become familiar with documents and his testimony (In Re: Actos (Pioglitazone) Product Liability Litigation, MDL Docket No. 2299, No. 6:11-md-2299, W.D. La., Lafayette Div.).
SHREVEPORT, La. - An insurer has a right to be reimbursed for funds it advanced to its insured prior to making a coverage decision because the insured would be unjustly enriched if the insurer were not entitled to seek reimbursement for a noncovered claim, a Louisiana federal judge said March 4 (Bridger Lake LLC v. Seneca Insurance Co. Inc., No. 11-0342, W.D. La.; 2014 U.S. Dist. LEXIS 27703).
LOS ANGELES - The Chapter 11 trustee in the bankruptcy proceeding of GGW Brands LLC, the parent company for the producer of adult entertainment company that produces videos carrying the name "Girls Gone Wild," on March 6 filed a brief in the U.S. Bankruptcy Court for the Central District of California opposing a motion to compel GGW to surrender commercial property that operates as the company's office (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
CINCINNATI - Employers that are challenging the amount of reallocation liability assessed by a multiemployer pension plan must arbitrate their claims prior to bringing their dispute in federal court, the Sixth Circuit U.S. Court of Appeals ruled March 4 (Knall Beverage, Inc., et al. v. Teamsters Local Union No. 293 Pension Plan, et al., No. 13-3698, 6th Cir.; 2014 U.S. App. LEXIS 3981).
WASHINGTON, D.C. - Plaintiffs cannot squeeze the individual insurance mandate in the Patient Protection and Affordable Care Act (ACA) into an "arbitrary as-applied" exemption to Congress' taxing power, a panel of the District of Columbia Circuit U.S. Court of Appeals affirmed March 7 (Association of American Physicians & Surgeons Inc., et al. v. Kathleen G. Sebelius, et al., No. 13-5003, D.C. Cir.).