WASHINGTON, D.C. - Credit Suisse Holdings (USA) Inc., certain related companies and others have agreed to pay $885 million to settle claims that they violated state and federal securities laws in their offer and sale of mortgage-backed securities that were purchased by Fannie Mae and Freddie Mac, according to a press release issued by the Federal Housing Finance Agency (FHFA) on March 21 (Federal Housing Finance Agency v. Credit Suisse Holdings [USA] Inc., et al., No. 11-6200, S.D. N.Y.; and Federal Housing Finance Agency, as Conservator for the Federal Home Loan Mortgage Corp. v. Ally Financial Inc., et al., No. 11-7010, S.D. N.Y.).
NEW YORK - A New York federal judge on March 19 denied a plaintiff's motion to remand a breach of contract dispute over payment for home health care services and instead dismissed the suit, saying that the Employee Retirement Income Security Act preempted the plaintiff's claim, which really was for "right of payment" and not "amount of payment" (Star Multi Care Services Inc. v. Empire Blue Cross Blue Shield, et al., No. 13-1138, E.D. N.Y.; 2014 U.S. Dist. LEXIS 36287).
WASHINGTON, D.C. - The U.S. Supreme Court on March 24 invited the U.S. solicitor general to file a brief expressing the views of the United States on whether to grant review of a Ninth Circuit U.S. Court of Appeals opinion that ruled that revenue sharing between mutual funds and a 401(k) plan's administrative service provider did not violate the plan or the Employee Retirement Income Security Act (Glenn Tibble, et al. v. Edison International, et al., No. 13-550, U.S. Sup.).
SHERMAN, Texas - The Securities and Exchange Commission on March 20 asked a federal judge in Texas to consider modifying deadlines in the scheduling order for a virtual currency Ponzi scheme action, arguing that the defendants in the action have failed to appear (Securities and Exchange Commission v. Trendon T. Shavers, et al., No. 13-0416, E.D. Texas).
LAS VEGAS - A company, joined by certain of the company's directors and officers, told a federal court in Nevada on March 20 that a shareholder derivative lawsuit should be dismissed because a state court found that the same claims and arguments failed to show that presuit demand upon the company's board of directors would have been futile (Mario Guerrero v. James J. Murren, et al., No. 09-cv-01815, D. Nev.).
TRENTON, N.J. - A shareholder in a company told a New Jersey federal court on March 19 that certain of the company's directors and officers breached their fiduciary duties regarding the proposed sale of the company (JR Fitch v. Foster Wheeler AG, et al., No. 14-cv-01777, D. N.J.).
NEW HAVEN, Conn. - A federal judge in Connecticut on March 17 granted a motion to strike a reinsurer's answer and other pleadings and ordered the reinsurer to post $824,591.79 in prepleading security (Travelers Indemnity Company v. Excalibur Reinsurance Corporation, No. 12-cv-01793, D. Conn.; 2014 U.S. Dist. LEXIS 35434).
SELMA, Ala. - A health insurance provider on March 14 removed a denial of health care benefits case to an Alabama federal court and moved to dismiss the case, saying the Employee Retirement Income Security Act preempted the plaintiffs' claims (Jane Wallace, et al. v. Blue Cross Blue Shield, No. 14-119, S.D. Ala.).
NEW YORK - A federal judge in New York on March 18 declined to give final approval to the settlement reached in a shareholder derivative lawsuit because the settlement does not require the company to become compliant with certain security laws (Carl Braun v. Zhiguo Fu, et al., No. 11-cv-04383, S.D. N.Y.).
DETROIT - A defendant on March 17 secured dismissal of allegations that she infringed copyrighted architectural drawings when a Michigan federal judge found that her purchase of the home does not make her an infringer (Excel Homes Inc. v. Mary Locricchio, et al., No. 13-14354, E.D. Mich.).
WILMINGTON, Del. - The Official Committee of Security Holders in the Chapter 11 bankruptcy of Tuscany International Holdings Ltd. (TIH) on March 14 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that TIH has failed to provide basic information needed to evaluate the relief it seeks in its first-day motions; therefore, the hearing must be continued (In Re: Tuscany International Holdings Ltd., No.14-10193, Chapter 11, D. Del. Bkcy.).
DETROIT - A group of creditors on March 13 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to the bankrupt City of Detroit's plan to secure $120 million in new financing without seeking Bankruptcy Court approval (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
SPRINGFIELD, Mass. - A federal judge in Massachusetts on March 12 dismissed a shareholder derivative suit, agreeing with a corporation's board's committee, which had asserted that the suit was not in the best interests of the corporation (Aaron Sarnacki v. Michael F. Golden, et al., No. 11-cv-30009, D. Mass.; 2014 U.S. Dist. LEXIS 32007).
NEW HAVEN, Conn. - A federal judge in Connecticut on March 11 ordered a reinsurer that is not authorized to do business in Connecticut to post pre-pleading security or said its answer will be stricken (Travelers Indemnity Company v. Excalibur Reinsurance Corporation, No. 11-cv-01209, D. Conn.).
SAN FRANCISCO - Granting ex parte motions for temporary restraining orders (TROs) filed by the plaintiffs in two different lawsuits against the U.S. government's collection of telephone call data record data, a California federal judge on March 10 ordered that any existing call data records be preserved, despite a March 7 order by the Foreign Intelligence Surveillance Court (FISC) that was interpreted as permitting destruction of the data (Carolyn Jewel, et al. v. National Security Agency, et al., No. 3:08-cv-04373, and First Unitarian Church of Los Angeles, et al. v. National Security Agency, et al., No. 13-03287, N.D. Calif.).
SAN FRANCISCO - A federal district court judge did not err in dismissing a securities class action lawsuit, a Ninth Circuit U.S. Court of Appeals panel ruled March 7, holding that the lead plaintiff in the action failed to properly plead falsity and scienter, (David Applestein, et al. v. Medivation Inc., et al., No. 12-15960, 9th Cir.; 2014 U.S. App. LEXIS 4318).
DENVER - A panel of the 10th Circuit U.S. Court of Appeals on March 11 ruled that it lacked subject matter jurisdiction to review a district court's decision to not remand to Oklahoma state court a lawsuit that dealt with issues of federal securities law and allegations that a Chapter 7 debtor made fraudulent transfers during his bankruptcy proceeding (Patrick J. Malloy III v. Commerce Bank, No. 13-5065, 10th Cir.; 2014 U.S. App. LEXIS 4480).
NEW YORK - Bankrupt Metro Affiliates on March 11 moved in the U.S. Bankruptcy Court for the Southern District of New York for authority to release $2,895,041 from an escrow account to pay secured claims against the bankruptcy estate related to prepetition mortgage loans (In Re: Metro Affiliates, No. 13-13591, Chapter 11, S.D. N.Y. Bkcy.).