Judge: Investor May Not Offer New Evidence On Reconsideration Motion

NEW YORK - A federal judge in New York on Nov. 7 ruled that although an investor is not entitled to file declarations in a securities class action lawsuit because the move is not allowable pursuant to Second Circuit U.S. Court of Appeals precedent, the judge allowed the investor to file a motion for reconsideration (Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., Inc., et al., No. 08-7508, S.D. N.Y.).

New York Court: Contradicted Exposure Testimony Supports 'Last Injurious' Finding

NEW YORK - A man's testimony that he suffered exposure to asbestos at a fuel company, while conflicting with other testimony, constitutes substantial evidence in support of holding the employer liable as for the "last injurious exposure," a New York appeals court held Nov. 8 (In the matter of the claim of James Ward v. General Utilities, et al. and NY Choice Self-Insurance Trust, et al., workers' compensation board,   No. 512606, N.Y. Sup., App. Div., 3rd Dept.; 2012 N.Y. App. Div. LEXIS 7332).

Judge Gives Insurer Time To Clarify Jurisdiction Questions

MADISON, Wis. - A federal judge in Wisconsin on Nov. 8 said an insurer has not clearly expressed why the court has jurisdiction over a case regarding an alleged conflict of interest of certain counsel in a New York reinsurance arbitration (National Casualty Company v. Utica Mutual Insurance Company,  No. 12-cv-00657, W.D. Wis.).

2nd Circuit Affirms Dismissal Of Copyright Claims Over 'Alien Vs. Predator'

NEW YORK - A New York federal judge did not err in granting summary judgment dismissal of a copyright dispute over the film "Alien vs. Predator," the Second Circuit U.S. Court of Appeals ruled Nov. 8 (James Muller v. Paul W.S. Anderson et al.,  No. 11-1694, 2nd Cir.).

Pretext For Discrimination In Violation Of ERISA Not Proven, 2nd Circuit Rules

NEW YORK - Executors of a terminated employee's estate failed to prove that the employer's stated reason for the discharge - reducing costs during economic downturn - was pretextual, the Second Circuit U.S. Court of Appeals ruled Nov. 5 in affirming that the employer did not interfere with health plan benefits in violation of Section 510 of the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq.  (John Gioia, et al. v. Forbes Media LLC, et al.,  No. 11-4406, 2nd Cir.; 2012 U.S. App. LEXIS 22689).

Bankruptcy Judge Grants Dewey & LeBoeuf Subpoena Power For Accounts Receivable

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Dewey & LeBoeuf on Nov. 7 authorized the law firm to issue subpoenas for the production of documents and the examination of various officers to resolve issues with the company's outstanding accounts receivable (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.

Parties Seek Approval Of $80M Settlement In Madoff Feeder Fund Suit

NEW YORK - Investors on Nov. 6 asked a federal judge in New York to preliminarily approve a potential $80.25 million settlement of claims that defendants concealed that the investors' funds were being placed in accounts that were part of Bernard L. Madoff's massive Ponzi scheme (Pasha S. Anwar, et al. V. Fairfield Greenwich Ltd., et al., No. 09-0118, S.D. N.Y.).

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Magistrate Judge Denies Preliminary Injunction Motion Against Reinsurer

SYRACUSE, N.Y. - A federal magistrate judge in New York on Nov. 6 denied an insurer's motion for preliminary injunction against a reinsurer regarding a confidentiality agreement, finding that the insurer had not shown that it would be irreparably harmed (Utica Mutual Insurance Company v. INA Reinsurance Company, No. 12-cv-00194, N.D. N.Y.). Subscribers may view the report available within the full article.

Named Plaintiffs Oppose Approval Of $7.25B Antitrust Credit-Card-Fee Settlement

NEW YORK - Ten of the 19 named plaintiffs and other merchants and trade associations on Nov. 2 filed objections to the $7.25 billion class action settlement with Visa, MasterCard and a large number of banks that the proposed class alleges fixed the prices of interchange fees paid by merchants when customers use Visa and MasterCard credit cards (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation [All Cases], No. 05-MD-1720, E.D. N.Y.). Subscribers may view the opposition available within the full article.

Fannie Mae Wins Fraud Judgment Against Mortgage Firm Founder

BROOKLYN, N.Y. - A federal judge in New York on Nov. 5 awarded an $850,000 judgment to the Federal National Mortgage Association (Fannie Mae) against the founder of a mortgage company in a constructive fraud suit in which Fannie Mae accused the lender of lying in a $44 million scheme to continue collecting Fannie Mae payments after borrowers had paid off their loans (Federal National Mortgage Association v. Olympia Mortgage Corp., et al., No. 04-4971, E.D. N.Y.).  Subscribers may view the opinion available within the full article.

Judge Substantially Denies Dismissal In Securities Class Action Against Barclays

NEW YORK - A federal judge in New York on Nov. 5 substantially denied a motion to dismiss filed by the New York branch of German bank Bayerische Landesbank, ruling that the bank has standing to bring its state and federal securities law claims and that, at this point, dismissal under the Supreme Court's ruling in Morrison v. National Australia Bank, Ltd. is not warranted (Bayerische Landesbank, New York Branch, v. Barclays Capital Inc., et al., No. 12-3294, S.D. N.Y.).  Subscribers may view the opinion available within the full article.

U.S. Attorney: ResCap Asset Sale To Ocwen, Berkshire Hathaway Should Be Blocked

NEW YORK - The U.S. government on Nov. 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to bankrupt Residential Capital LLC's motion seeking to sell its assets (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.

Pharmaceutical Maker Quigley: Reorganization Plan Voting Should Be Extended

NEW YORK - Bankrupt pharmaceutical maker Quigley Co. Inc., a subsidiary of Pfizer Inc., on Nov. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for an extension of the voting deadline to approve its reorganization plan until the end of the month (In Re: Quigley Company Inc., No. 04-15739, Chapter 11, S.D. N.Y. Bkcy.).  Subscribers may view the motion available within the full article.

Federal Judge Says Reinsurers Must Provide Life Insurance Reinsurance Records

NEW YORK - A federal judge in New York on Nov. 5 refused to quash subpoenas served on a pair of reinsurers for discovery of certain life insurance reinsurance documents, but ordered that the bank serving the subpoenas pay the reinsurers' expenses regarding the document search and retrieval (US Bank National Association, a national association as securities intermediary for Lima Acquisition LP v. PHL Variable Insurance Company,  No. 12-cv-06811, S.D. N.Y.; 2012 U.S. Dist. LEXIS 158448).

Federal Circuit Vacates Noninfringement Findings, Cites Akamai

WASHINGTON, D.C. - A New York federal judge erred in finding that a luggage lock system patent was not indirectly infringed, the Federal Circuit U.S. Court of Appeals held Nov. 5 (Travel Sentry Inc. v. David Tropp,  No. 11-1023, 1367, Fed. Cir.).

Judge Lets Mortgage-Backed Securities Case Against Chase Continue

NEW YORK - A federal judge in New York on Nov. 5 allowed most of a suit alleging that JPMorgan Chase & Co. (Chase) lied to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac) about the quality of $33 billion in mortgage-backed securities (MBS) to proceed, ruling that the Federal Housing Finance Agency (FHFA) had adequately supported most of its claims (Federal Housing Finance Agency v. JPMorgan Chase & Co., et al., No. 11-6188, S.D. N.Y.). Subscribers may view the opinion available within the full article.

Jury Awards Plaintiff $10.4M For Injuries, Punitives Linked To Novartis' Zometa

CENTRAL ISLIP, N.Y. - A New York federal jury on Nov. 2 found Novartis Pharmaceuticals Corp. liable for a woman's osteonecrosis of the jaw (ONJ) and awarded her $10.45 million, according to the parties (Barbara Davids v. Novartis Pharmaceuticals Corporation, No. 2:06-431, E.D. N.Y.).

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Hostess, Unions Reach Deal On Wage Concessions To Pave Way For Reorganization

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Hostess Brands Inc. on Nov. 1 approved settlement agreements between Hostess and some of its unions that will help pave the way for Hostess to reorganize (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

Federal Judge Trims Claims In Madoff Feeder Fund Lawsuit

NEW YORK - In an opinion made available on Nov. 1, a federal judge in New York ruled that although an investor may file an amended complaint in a securities lawsuit against a feeder fund of Bernard L. Madoff's Ponzi scheme, dismissal of the negligence and fraud-based claims is proper because the investor failed to correct deficiencies in the claims (Pasha Anwar, et al. v. Fairfield Greenwich Ltd., et al.  No. 09-0118; [Joaquina Teresa Barbachano Herrero v. Standard Chartered Bank International (Americas) Ltd., et al.,] S.D. N.Y.; 2012 U.S. Dist. LEXIS 155470). A complimentary copy of the order is available in the pdf attached below.

Kodak Unsecured Creditors Committee Seeks Power To Prosecute 2nd-Lien Claims

NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Eastman Kodak Co. on Oct. 31 moved in the U.S. Bankruptcy Court for the Southern District of New York for authority to prosecute and settle avoidance claims against the second-lien parties (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the motion available within the full article.

Pfizer Takes $491M Charge To Settle Federal Investigation Of Rapamune Promotion

NEW YORK - Pfizer Inc. on Nov. 2 said in a quarterly financial report that it has taken a $491 million charge for an agreement in principle to settle a federal investigation into its promotions of its anti-rejection drug Rapamune.

Bankrupt Grubb & Ellis Says Agent's Claim Arose Post-Petition, Is Not Permitted

NEW YORK - Bankrupt commercial real estate company Grubb & Ellis Co. on Oct. 31 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that a former agent with the company is not entitled to file a claim for a commission he earned after the company filed its bankruptcy petition (In Re: Grubb & Ellis Company, No. 12-10685, Chapter 11, S.D. N.Y. Bkcy.).  Subscribers may view the brief available within the full article.

New York High Court Finds Challenge To Medicaid Benefits Notification Not Moot

ALBANY, N.Y. - The New York Court of Appeals on Oct. 30 affirmed an appellate court order that the state's Department Of Health failed, and will likely continue to fail, to timely respond to requests for emergency medical assistance benefits. The high court agreed that the "likely to recur" mootness doctrine should be applied to the plaintiff's claim seeking damages for lack of notification of benefits availability (Barbara Coleman, etc., v. Richard F. Daines, M.D., etc.,  No. 152, N.Y. App.; 2012 N.Y. LEXIS 3263).

Hawker Beechcraft Amends Reorganization Plan, Seeks Exit Financing Of $530M

NEW YORK - Bankrupt aircraft company Hawker Beechcraft Inc. on Oct. 29 filed an amended plan of reorganization in the U.S. Bankruptcy Court for the Southern District of New York that would convert all prepetition debt obligations to equity in a reorganized version of the company and seeks $530 million in exit financing (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the plan available within the full article.

Dewey & LeBoeuf Wants Former Partners Committee Disbanded

NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Oct. 30 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that the bankruptcy judge presiding over the case should direct the U.S. trustee to disband the Official Committee of Former Partners (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.