LexisNexis® Legal Newsroom
Mealey's Bankruptcy - GM Plaintiffs Tell MDL Judge They Will Appeal Bankruptcy Court Order Barring Suits

NEW YORK - Owners of vehicles containing defective ignition switches on April 29 told the judge overseeing multidistrict litigation against General Motors LLC (New GM) that they intend to appeal a ruling by the U.S. Bankruptcy Court for the Southern District of New York finding that the bulk of ignition switch suits stemming from conduct on the part of General Motors Corp. (Old GM) are barred (In re General Motors LLC Ignition Switch Litigation, No. 14-md-2543 [JMF], S.D. N.Y.).

Mealey's PI/Product Liability - GM Plaintiffs Tell MDL Judge They Will Appeal Bankruptcy Court Order Barring Suits

NEW YORK - Owners of vehicles containing defective ignition switches on April 29 told the judge overseeing multidistrict litigation against General Motors LLC (New GM) that they intend to appeal a ruling by the U.S. Bankruptcy Court for the Southern District of New York finding that the bulk of ignition switch suits stemming from conduct on the part of General Motors Corp. (Old GM) are barred (In re General Motors LLC Ignition Switch Litigation, No. 14-md-2543 [JMF], S.D. N.Y.).

Mealey's Insurance - New York Panel: Court Incorrectly Found That Policy Exclusion Was Inapplicable

NEW YORK - A New York appeals panel found April 30 that a professional liability insurer has no duty to pay its insured's defense costs in an underlying false claims act action, reversing a lower court's ruling against the insurer (Certain Underwriters at Lloyd's London v. Huron Consulting Group, Inc., et al., Nos. 14799, 14798, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 3590).

Mealey's PI/Product Liability - Another Specialty Pharmacy Settles Exjade False Claims Allegations For $45M

NEW YORK - Specialty pharmacy Accredo Health Group Inc. on April 30 agreed to pay $45 million to settle a whistle-blower's allegations that its efforts to push prescriptions for the iron chelation drug Exjade resulted in false claims being submitted to federal health care programs (United States of America, ex rel. David Kester v. Novartis Pharmaceuticals Corp., et al., No. 11-8196, S.D. N.Y.).

Mealey's IP/Tech - New York Panel Withdraws Appeal After Sony, Insurers Discontinue Coverage Suit

NEW YORK - A New York appeals panel on April 30 withdrew Sony's appeal of a lower court's finding that there is no coverage for a data breach caused by a cyber-attack of Sony's online networks, one day after Sony and its insurers filed a stipulation to discontinue the coverage lawsuit with prejudice (Zurich American Insurance Co. v. Sony Corporation of America, et al., Nos. 14547, 14546, N.Y. App., 1st Dept.).

Mealey's Insurance - New York Panel Withdraws Appeal After Sony, Insurers Discontinue Coverage Suit

NEW YORK - A New York appeals panel on April 30 withdrew Sony's appeal of a lower court's finding that there is no coverage for a data breach caused by a cyber-attack of Sony's online networks, one day after Sony and its insurers filed a stipulation to discontinue the coverage lawsuit with prejudice (Zurich American Insurance Co. v. Sony Corporation of America, et al., Nos. 14547, 14546, N.Y. App., 1st Dept.).

Mealey's Toxic Tort/Environmental - Judge: MTBE Evidence Lacking As To Some Defendants In Puerto Rico Litigation

NEW YORK - The federal judge in New York presiding over litigation regarding groundwater allegedly contaminated by the gasoline additive methyl tertiary butyl ether (MTBE) on April 28 partially granted and partially denied a motion for summary judgment filed by the defendants, ruling that some defendants were entitled to dismissal based on lack of evidence, but one was liable for selling gasoline that resulted in contamination (In re: Methyl Tertiary Butyl Ether [MTBE] Products Liability Litigation, MDL 1358, No. 00-1898, Commonwealth of Puerto Rico v. Shell Oil Co., et al., No. 07 Civ. 10470, S.D. N.Y.; 2015 U.S. Dist. LEXIS 55535).

Mealey's Litigation Procedure - Judge Substantially Trims Claims In Securities Class Action Lawsuit

NEW YORK - A federal judge in New York on April 24 substantially dismissed federal claims in a securities class action lawsuit, ruling that shareholders failed to plead an actionable misstatement, scienter and loss causation in making a number of their claims (Barbara Strougo v. Barclays plc, et al., No. 14-5797, S.D. N.Y.; 2015 U.S. Dist. LEXIS 54059).

Mealey's PI/Product Liability - MDL Judge Orders GM To Make Sampling Of Ignition Switches Available

NEW YORK - General Motors LLC (GM) must make available recalled ignition switch parts to the plaintiffs in the pending multidistrict litigation against the automaker, the federal judge overseeing the litigation said April 27 (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's Securities/D&O Liability - Judge Substantially Trims Claims In Securities Class Action Lawsuit

NEW YORK - A federal judge in New York on April 24 substantially dismissed federal claims in a securities class action lawsuit, ruling that shareholders failed to plead an actionable misstatement, scienter and loss causation in making a number of their claims (Barbara Strougo v. Barclays plc, et al., No. 14-5797, S.D. N.Y.; 2015 U.S. Dist. LEXIS 54059).

Mealey's IP/Tech - New York Federal Judge Releases Redacted Ruling In Trademark Dispute

NEW YORK - Competing motions for summary judgment in a dispute over the "RLX" trademark were denied March 31, according to a ruling released April 27 by a New York federal judge (Rolex Watch USA Inc. v. PRL USA Holdings Inc., No. 12-6006, S.D. N.Y.; 2015 U.S. Dist. LEXIS 54766).

Mealey's Insurance - Judge Grants Motion To Remand Reinsurance Dispute To New York Supreme Court

SYRACUSE, N.Y. - A federal judge in New York on April 27 found that a reinsurer's removal of a state court case was untimely and therefore granted a motion to remand the case to the state court (Utica Mutual Insurance Company v. American Re-Insurance Company, n/k/a Munich Reinsurance America, Inc., No. 14-cv-01558, N.D. N.Y.).

Mealey's Litigation Procedure - New Jersey Devils Sued By Season Ticket Holders For Obstructing Sales

NEWARK, N.J. - Two New York residents filed a class complaint on April 21 against New Jersey Devils LLC in the U.S. District Court for the District of New Jersey, alleging that the hockey team improperly prohibits them and other season ticket holders from selling individual or blocks of game tickets (Rey Olsen, et al. v. New Jersey Devils, LLC, No. 15-2807, D. N.J.).

Mealey's Banking & Finance - Judge Partially Sustains Trust's Objection, Allows Wrongful Foreclosure Claim

NEW YORK - A New York bankruptcy judge on April 21 ruled on a trust's objection to certain claims asserted by a borrower, finding that her claims for wrongful foreclosure and violation of the Massachusetts Consumer Credit Cost Disclosure Act (MCCCDA) can proceed (In re Residential Capital LLC, et al., No. 12-12020, S.D. N.Y. Bkcy.; 2015 Bankr. LEXIS 1373).

Mealey's Litigation Procedure - Parties Reach $30M Settlement In Securities Class Action Lawsuit

NEW YORK - Shareholders and an electronic manufacturing services provider and certain of its executive officers have agreed to a $30 million settlement on claims that the defendants misrepresented the company's earnings, profitability and financial outlook in violation of federal securities laws, according to documents filed in New York federal court on April 17 (In re Celestica Inc. Securities Litigation, No. 07-312, S.D. N.Y.).

Mealey's Litigation Procedure - GM Must Produce Some Documents, Can Retrieve Others, MDL Judge Rules

NEW YORK - The federal judge overseeing the multidistrict ignition switch litigation against General Motors LLC (GM) entered an order April 17 requiring GM to produce documents already turned over to governmental agencies and Congress but allowing the automaker to retrieve any documents that were inadvertently produced (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's Securities/D&O Liability - Parties Reach $30M Settlement In Securities Class Action Lawsuit

NEW YORK - Shareholders and an electronic manufacturing services provider and certain of its executive officers have agreed to a $30 million settlement on claims that the defendants misrepresented the company's earnings, profitability and financial outlook in violation of federal securities laws, according to documents filed in New York federal court on April 17 (In re Celestica Inc. Securities Litigation, No. 07-312, S.D. N.Y.).

Mealey's PI/Product Liability - GM Must Produce Some Documents, Can Retrieve Others, MDL Judge Rules

NEW YORK - The federal judge overseeing the multidistrict ignition switch litigation against General Motors LLC (GM) entered an order April 17 requiring GM to produce documents already turned over to governmental agencies and Congress but allowing the automaker to retrieve any documents that were inadvertently produced (In re: General Motors LLC Ignition Switch Litigation, No. 14-md-2543, S.D. N.Y.).

Mealey's Banking & Finance - 11th Circuit Refuses To Remand Foreclosure Case, Affirms Dismissal

ATLANTA - After finding that several of a borrower's claims were federal and that she failed to property state her claims, the 11th Circuit U.S. Court of Appeals on April 20 affirmed a decision refusing to remand and dismissed the case (Christine Stone v. Bank of New York Mellon, N.A., f.k.a. Bank of New York Trust Company N.A., et al., No. 13-15433, 11th Cir.; 2015 U.S. App. LEXIS 6449).

Mealey's Insurance - New York Federal Judge Denies Motion To Review, Says No New Evidence Presented

NEW YORK - A New York federal judge on April 15 denied an insurer's motion for reconsideration on the basis that the insurer failed to offer any new evidence or point to any changes in controlling law that would support reviewing the federal court's earlier decision in favor of a reinsurer (Global Reinsurance Corporation of America v. Century Indemnity Company, No. 13-cv-06577, S.D. N.Y.; 2015 U.S. Dist. LEXIS 50236).

Mealey's PI/Product Liability - New York Justice Finds Tile Maker Didn't Meet Summary Judgment Standard

NEW YORK - A tile company has not satisfied the prima facie standard for summary judgment, the recently appointed New York justice overseeing asbestos litigation in the city held in an opinion posted April 16 (Richard R. Lefrak v. Aerco International Inc., et al., No. 190033/14, N.Y. Sup., New York Co.).

Mealey's Litigation Procedure - Split 2nd Circuit Panel Affirms Dismissal Of Securities Class Action

NEW YORK - A divided Second Circuit U.S. Court of Appeals panel on April 15 affirmed a federal district court's dismissal of a securities class action lawsuit, ruling that shareholders failed to state a claim for relief (IBEW Local Union No. 58 Pension Trust Fund and Annuity Fund v. The Royal Bank of Scotland Group PLC, et al., No. 13-3289, 2nd Cir.).

Mealey's Insurance - Coverage For Insured Is Clearly Limited To $100,000, New York Appellate Panel Says

BROOKLYN, N.Y. - Because a policy clearly provides for a maximum of $100,000 in coverage for cleanup and removal of the discharge of a pollutant caused by a "peril" that occurs during a policy period, the maximum amount of coverage available to an insured seeking coverage for the release of gasoline from an underground storage tank at its service station is $100,000, the Second Department Appellate Division of the New York Supreme Court said April 15 (L & D Service Station, Inc., v. Utica First Insurance Co., et al., No. 2013-05805, N.Y. Sup., App. Div., 2nd Dept.; 2015 N.Y. App. Div. LEXIS 3084).

Mealey's Toxic Tort/Environmental - New York Justice Finds Tile Maker Didn't Meet Summary Judgment Standard

NEW YORK - A tile company has not satisfied the prima facie standard for summary judgment, the recently appointed New York justice overseeing asbestos litigation in the city held in an opinion posted April 16 (Richard R. Lefrak v. Aerco International Inc., et al., No. 190033/14, N.Y. Sup., New York Co.).

Mealey's Securities/D&O Liability - Split 2nd Circuit Panel Affirms Dismissal Of Securities Class Action

NEW YORK - A divided Second Circuit U.S. Court of Appeals panel on April 15 affirmed a federal district court's dismissal of a securities class action lawsuit, ruling that shareholders failed to state a claim for relief (IBEW Local Union No. 58 Pension Trust Fund and Annuity Fund v. The Royal Bank of Scotland Group PLC, et al., No. 13-3289, 2nd Cir.).