NEW YORK - A federal judge in New York on July 16 remanded a pair of securities lawsuits filed by German Bank Bayerische Landesbank (BayernLB) to state court without offering a written opinion (Bayerische Landesbank, New York Branch, v. Bear Stearns & Co. Inc., et al., No. 12-2804; Bayerische Landesbank, New York Branch, v. Merrill Lynch & Co. Inc., No. 12-3856, S.D. N.Y.).Subscribers may view the order available within the full article.
WILMINGTON, Del. - A company's directors and officers say in their motion to dismiss a shareholder security fraud suit in a Delaware federal court on July 13 that a group of shareholder's claims against them do not meet the heightened standards imposed by the Private Securities Litigation Reform Act (PSLRA) (Martin Bartesch, et al. v. Brent M. Cook, No. 11-cv-01173, D. Del.).
NEW YORK - Directors and officers of a company on July 16 moved to dismiss a shareholder case against them in a New York federal court, arguing that the shareholders failed to show any particularized facts that individual defendants may be liable for any of the company's alleged actions (In re The Bank of New York Mellon Corporation Shareholder Derivative Litigation, No. 11-cv-08471, S.D. N.Y.).
OAKLAND, Calif. - The plaintiff in a shareholder derivative suit against directors and officers of Google Inc. tells a California federal court in a July 12 brief that she has shown that Google's board of directors wrongfully refused her presuit demand (Judy Wang, Derivatively on Behalf of Google Inc. v. Larry Page, et al., No. 12-cv-01785, N.D. Calif.).
BOSTON - A Massachusetts federal judge did not err in dismissing an amended securities class action complaint against medical device maker Boston Scientific Corp. (BSX) and certain of its executive officers for alleged violations of federal securities law because the lead plaintiffs failed to plead materiality or scienter, a First Circuit U.S. Court of Appeals panel ruled July 12 (In re Boston Scientific Corp. Securities Litigation, No. 11-2250, 1st Cir.; 2012 U.S. App. LEXIS 14326).
WHEELING, W. Va. - A West Virginia federal judge on July 11 remanded a wrongful denial of benefits case to state court, saying the defendants did not meet their burden in showing that the health plan at issue fell under the Employee Retirement Income Security Act (Christopher J. Regan, et al. v. Coventry Health & Life Insurance Co., et al., No. 12-25, N.D. W. Va.; 2012 U.S. Dist. LEXIS 96487).
CHICAGO - An Illinois federal judge on July 13 dismissed a shareholder derivative lawsuit and said a shareholder failed to prove that presuit demand on a company's board of directors would have been futile (Gordon, Derivatively on Behalf of Navigant Consulting, Inc., v. William M. Goodyear, et al., No. 12-cv-00369, N.D. Ill.; 2012 U.S. Dist. LEXIS 97623).
NEW YORK - A federal judge in New York on July 11 granted in part and denied in part a number of dismissal motions in a securities class action lawsuit against Bank of America Corp. (BoA), several of its current and former officers and directors and others for alleged violations of federal securities laws (Pennsylvania Public School Employees' Retirement System v. Bank of America Corp., et al., No. 11-733, S.D. N.Y.).Subscribers may view the opinion available within the full article.
SIOUX CITY, Iowa - An Iowa federal magistrate judge on July 11 denied a motion by the Federal Deposit Insurance Corp., as receiver of an insured bank, for early discovery in a directors and officers coverage dispute (Progressive Casualty Insurance Company v. Federal Deposit Insurance Corporation, et al., No. C12-4041-DEO, N.D. Iowa, Western Div.; 2012 U.S. Dist. LEXIS 96337).
NEW YORK - A Second Circuit U.S. Court of Appeals panel, in an unpublished opinion issued July 12, affirmed a lower court decision and found that an investment fund could not bring derivative claims against a company's directors and officers (In re: Ambac Financial Group, Incorporated, No. 11-4643, 2nd Cir.; 2012 U.S. App. LEXIS 14229).
CHARLESTON, S.C. - A commercial general liability insurance policy and an umbrella policy do not provide coverage for damages to a building caused by alleged design and construction defects or for loss of use of the machines or loss of profits, a South Carolina federal judge held July 9, granting in part summary judgment to the insurer (Penn National Security Insurance Co. v. Design-Build Corp., et al., No. 11-02043, D. S.C.; 2012 U.S. Dist. LEXIS 94012).
NEW YORK - A federal judge in New York on July 9 denied a former Citigroup Global Markets Inc. employee's motion for summary judgment on claims that he misrepresented the investment quality of certain collateralized debt obligations (CDOs) he structured and marketed for Citigroup in violation of federal securities laws (United States Securities and Exchange Commission v. Brian Stoker, No. 11-7388, S.D. N.Y.).
LOS ANGELES - A California judge in a tentative ruling issued July 6 awarded $89.7 million in back wages, interest and waiting time to a class of approximately 15,000 security guards who were denied off-duty rest breaks (Jennifer Augustus v. American Commercial Security Services, et al., No. BC336416, Calif. Super., Los Angeles Co.). Subscribers may view the tentative ruling available within the full article.
NEW YORK - In an unpublished opinion issued July 9, a Second Circuit U.S. Court of Appeals panel affirmed a lower court dismissal of a shareholder derivative suit, holding that the shareholder failed to show that presuit demand on General Electric Co.'s board would have been futile (Albert Stein, Derivatively o/b/o Nominal Defendant General Electric v. Jeffrey R. Immelt, et al., No 11-2236, 2nd Cir.; 2012 U.S. App. LEXIS 13888).
CINCINNATI - Directors and officers of a company argue in an July 10 brief in Ohio federal court that a shareholder failed to show that presuit demand would have been futile because he did not show particularized facts that at least half of the company's board of directors faced a substantial likelihood of liability for their alleged inaction to put certain corporate governance policies in place (Henry Stanley, derivatively on behalf of Cardinal Health, Inc, v. Colleen F. Arnold, et al., No. 12-cv-00482, S.D. Ohio). Subscribers may view the brief available within the full article.
GREEN BAY, Wis. - A federal judge in Wisconsin on July 5 awarded attorney fees and prejudgment interest under the Employee Retirement Income Security Act to a life insurance policy beneficiary who was granted summary judgment on her estoppel and breach of fiduciary duty claims (Susan Kaye Winkelspecht v. Gustave A. Larson Company, et al., No. 10-C-1072, E.D. Wis.; 2012 U.S. Dist. LEXIS 92906).
NEW ORLEANS - A 401(k) service provider is not a fiduciary under the Employee Retirement Income Security Act because it did not exercise discretionary authority and, therefore, it was not liable for any damages that might have occurred during an alleged freezing of the plan participants' accounts, the Fifth Circuit U.S. Court of Appeals ruled July 9 in an unpublished opinion (Sonya Turner, et al. v. Pan American Life Insurance Company, No. 11-31006, 5th Cir.; 2012 U.S. App. LEXIS 1396).
OAKLAND, Calif. - Google Inc. and certain of its directors and officers argued in a California federal court on July 6 that an amended shareholder derivative complaint should be dismissed because the shareholders allegedly failed to cure defects from an earlier version of the complaint (In re Google Inc. Shareholder Derivative Litigation, No. 11-cv-4248, N.D. Calif.). Subscribers may view the brief in support of motion to dismiss available within the full article.
RICHMOND, Va. - Surcharge and equitable estoppel are available as potential remedies under Section 502(a)(3) of the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001, to a plan participant who alleges that a plan fiduciary breached its fiduciary duties by withholding premiums for coverage that was not available to the participant under the plan's terms, the Fourth Circuit U.S. Court of Appeals ruled July 5 on rehearing and in light of CIGNA Corp. v. Amara (131 S.Ct. 1866 (2011). (Debbie McCravy v. Metropolitan Life Insurance Company, Nos. 10-1074, 10-1131, 4th Cir.; 2012 U.S. App. LEXIS 13683).
SAN FRANCISCO - The administrator of a plan governed by the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq.,did not abuse its discretion by interpreting the plan's provision that disability benefits would be reduced by pension benefits "received" to include amounts rolled over into an individual retirement account (IRA), the Ninth Circuit U.S. Court of Appeals affirmed July 3 (David Day v. AT&T Disability Income Plan, No. 10-16479, 9th Cir.; 2012 U.S. App. LEXIS 13558).
DALLAS - A federal judge in Texas on July 3 partially lifted a stay in five class action lawsuits against two law firms and others accused of assisting convicted Ponzi scheme mastermind R. Allen Stanford in his fraud (Michael Gale, et al. v. Proskauer Rose LLP, et al., No. 12-1803; Consuelo Ibarra, et al. v. Proskauer Rose LLP, et al., No. 12-1805; Pam Reed, et al. v. Proskauer Rose LLP, et al., No. 12-1806; Miguel Green, et al. v. Proskauer Rose LLP, et al., No. 12-1808; Juan F. Martin, et al. v. Proskauer Rose LLP, et al., No. 12-1809, N.D. Texas). Subscribers may view the order available within the full article.
WASHINGTON, D.C. - In an issue of first impression, a federal judge in Washington on July 3 refused to grant an application by the Securities and Exchange Commission to compel the Securities Investor Protection Corp. (SIPC) to file an application for a protective decree compelling the SIPC to commence liquidation proceedings on behalf of victims of R. Allen Stanford's massive Ponzi scheme, ruling that the SEC's interpretation of the Securities Investor Protection Act (SIPA) 15 U.S.C.S. § 78aaa , is too broad (Securities and Exchange Commission v. Securities Investor Protection Corp., No. 11-678, D.C. Dist.).
MINNEAPOLIS - A law firm on July 2 failed to secure dismissal of copyright infringement allegations levied in connection with the firm's practice of using journal articles in various patent applications (American Institute of Physics et al. v. Schwegman, Lundberg & Woessner, No. 12-528, D. Minn.). Subscribers may view the decision available within the full article.
TACOMA, Wash. - A federal judge in Washington on July 3 denied a motion to dismiss and found that a Washington corporation can bring a derivative shareholder suit against a Spanish company and its directors and officers (Enterprises International, Inc. v. Pasaban, S.A., et al., No. 11-cv-05919, W.D. Wash.; 2012 U.S. Dist. LEXIS 92205). Subscribers may view the decision available within the full article.
NEW ORLEANS - A federal judge in Louisiana dismissed a shareholder's derivative lawsuit on July 2, finding that the shareholder failed to plead with particularity why presuit demand on the company's board of directors would have been futile (Jonathan Strong, derivatively on behalf of Tidewater Inc. v. Dean E. Taylor, et al., No. 11-cv-00392, E.D. La.; 2012 U.S. Dist. LEXIS 91097).