LexisNexis® Legal Newsroom
Mealey's PI/Product Liability - New Jersey Law Allows Suit Against Dissolved Corporations, New York Court Affirms

NEW YORK - New Jersey law allowing dissolved corporations to "sue and be sued" clearly permits asbestos actions naming Liberty Mutual Insurance Co. as the insurer of the dissolved Jenkins Brothers, a New York appeals court held April 17 (In re New York City Asbestos Litigation; Robert Germain Sr. v. A.O. Smith Water Products Co., et al., Liberty Mutual Insurance Co., Daniel E. Valensi, etc. v. Air & Liquid Systems Corp., as successor by merger to Buffalo Pumps, Inc., et al., Liberty Mutual Insurance Co., Vashtee Antle, etc. v. A.O. Smith Water Products Co., et al., Liberty Mutual Insurance Co., Janeed Khan v. 3M Co., individually and as successor to Minnesota Mining and Manufacturing Co., et al., Liberty Mutual Insurance Co., Laurence Cunningham, et al. v. 3M Co., etc., et al., Liberty Mutual Insurance Co., No. 12249, N.Y. Sup., App. Div., 1st Dept.; 2014 N.Y. App. Div. LEXIS 2623).

Mealey's Toxic Tort/Environmental - New Jersey Law Allows Suit Against Dissolved Corporations, New York Court Affirms

NEW YORK - New Jersey law allowing dissolved corporations to "sue and be sued" clearly permits asbestos actions naming Liberty Mutual Insurance Co. as the insurer of the dissolved Jenkins Brothers, a New York appeals court held April 17 (In re New York City Asbestos Litigation; Robert Germain Sr. v. A.O. Smith Water Products Co., et al., Liberty Mutual Insurance Co., Daniel E. Valensi, etc. v. Air & Liquid Systems Corp., as successor by merger to Buffalo Pumps, Inc., et al., Liberty Mutual Insurance Co., Vashtee Antle, etc. v. A.O. Smith Water Products Co., et al., Liberty Mutual Insurance Co., Janeed Khan v. 3M Co., individually and as successor to Minnesota Mining and Manufacturing Co., et al., Liberty Mutual Insurance Co., Laurence Cunningham, et al. v. 3M Co., etc., et al., Liberty Mutual Insurance Co., No. 12249, N.Y. Sup., App. Div., 1st Dept.; 2014 N.Y. App. Div. LEXIS 2623).

Mealey's Insurance - D.C. Circuit Affirms Denial Of Medicare Payment For Depreciation After Merger

WASHINGTON, D.C. - A District of Columbia Circuit U.S. Court of Appeals panel on April 11 affirmed a district court's decision affirming an administrative ruling by the U.S. Department of Health and Human Services (HHS) denying depreciation reimbursement under the Medicare program to a Catholic health care system after a merger with two other Catholic-related hospitals, saying the merger was not a bona fide sale because the hospitals were not given proper consideration for their assets in exchange for their debts (Catholic Healthcare West v. Kathleen Sebelius, in her official capacity as Secretary of Health and Human Services, No. 13-5090, D.C. Cir.; 2014 U.S. App. LEXIS 6662).

Mealey's Health Law - D.C. Circuit Affirms Denial Of Medicare Payment For Depreciation After Merger

WASHINGTON, D.C. - A District of Columbia Circuit U.S. Court of Appeals panel on April 11 affirmed a district court's decision affirming an administrative ruling by the U.S. Department of Health and Human Services (HHS) denying depreciation reimbursement under the Medicare program to a Catholic health care system after a merger with two other Catholic-related hospitals, saying the merger was not a bona fide sale because the hospitals were not given proper consideration for their assets in exchange for their debts (Catholic Healthcare West v. Kathleen Sebelius, in her official capacity as Secretary of Health and Human Services, No. 13-5090, D.C. Cir.; 2014 U.S. App. LEXIS 6662).

Mealey's Bankruptcy - DOJ Responds To Critics, Says Airline Merger Is In Public Interest

WASHINGTON, D.C. - The U.S. Department of Justice (DOJ) on March 10 filed a brief in the U.S. District Court for the District of Columbia responding to the public comments on the proposed final judgment and concluding that the proposed settlement of the merger of US Airways Group and American Airlines Inc. should proceed because it is in the public interest (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Mealey's Securities/D&O Liability - Lead Plaintiff Failed To Plead Scienter In Securities Class Action, Judge Rules

NEW YORK - In a ruling made available on Feb. 26, a federal judge in New York dismissed federal securities law claims against an auditor for a Chinese company, ruling that claims that the auditor engaged in an illegal reverse merger scheme failed because the lead plaintiff did not properly plead scienter (Bhushan Athale v. SinoTech Energy Limited, et al., No. 11-5831, S.D. N.Y.; 2014 U.S. Dist. LEXIS 22996).

Mealey's Litigation Procedure - Class Says Court Should Allow It To Amend Merger Case Against Bankrupt AMR

NEW YORK - Carolyn Fjord, who represents a class of plaintiffs who opposed the merger of bankrupt American Airlines Inc. and US Airways Group Inc. by filing an adversary complaint in the bankruptcy of American Airlines' parent company, AMR Corp., on Feb. 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that she should be permitted to file an amended complaint (Carolyn Fjord, et al. v. AMR Corporation, et al. [In Re: AMR Corporation], No. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Antitrust/Unfair Competition - Class Says Court Should Allow It To Amend Merger Case Against Bankrupt AMR

NEW YORK - Carolyn Fjord, who represents a class of plaintiffs who opposed the merger of bankrupt American Airlines Inc. and US Airways Group Inc. by filing an adversary complaint in the bankruptcy of American Airlines' parent company, AMR Corp., on Feb. 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that she should be permitted to file an amended complaint (Carolyn Fjord, et al. v. AMR Corporation, et al. [In Re: AMR Corporation], No. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Bankruptcy - Class Says Court Should Allow It To Amend Merger Case Against Bankrupt AMR

NEW YORK - Carolyn Fjord, who represents a class of plaintiffs who opposed the merger of bankrupt American Airlines Inc. and US Airways Group Inc. by filing an adversary complaint in the bankruptcy of American Airlines' parent company, AMR Corp., on Feb. 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that she should be permitted to file an amended complaint (Carolyn Fjord, et al. v. AMR Corporation, et al. [In Re: AMR Corporation], No. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

Mealey's Antitrust/Unfair Competition - 9th Circuit Declines To Order Divestiture In Southwest/AirTran Merger

SAN FRANCISCO - Direct purchasers of airline tickets who alleged that the merger between Southwest Airlines Co. and AirTran Holdings Inc. violated antitrust law are not entitled to a divestiture order, the Ninth Circuit U.S. Court of Appeals affirmed Feb. 4 in an unpublished opinion (Wayne Taleff, et al. v. Southwest Airlines Co., et al., No. 11-17995, 9th Cir.; 2014 U.S. App. LEXIS 2121).

Mealey's Securities/D&O Liability - Bank Settles Claims That It Breached Its Fiduciary Duty As Part Of Merger Deal

CHARLOTTESVILLE, Va. - A community bank and one of its shareholders agreed on Feb. 4 to settle claims filed in Virginia federal court that the bank and others breached their fiduciary duty in negotiating a merger deal with another community bank in violation of federal securities law (Jacklyn Crescente v. StellarOne Corp., et al., No. 10-0021, W.D. Va.).

Mealey's Litigation Procedure - Hospital System's Acquisition Of Physician Group Must Be Undone, Federal Judge Rules

BOISE, Idaho - A federal judge in Idaho on Jan. 24 ordered the divestiture of a consummated merger between Idaho's largest health system and the state's largest independent, multispecialty physician group, finding that the acquisition was anticompetitive (Saint Alphonsus Medical Center - Nampa, Inc., et al. v. St. Luke's Health System, Ltd., No. 12-560, D. Idaho; Federal Trade Commission, et al. v. St. Luke's Health System, Ltd., et al., No. 13-116, D. Idaho; 2014 U.S. Dist. LEXIS 9264).

Mealey's Health Law - Hospital System's Acquisition Of Physician Group Must Be Undone, Federal Judge Rules

BOISE, Idaho - A federal judge in Idaho on Jan. 24 ordered the divestiture of a consummated merger between Idaho's largest health system and the state's largest independent, multispecialty physician group, finding that the acquisition was anticompetitive (Saint Alphonsus Medical Center - Nampa, Inc., et al. v. St. Luke's Health System, Ltd., No. 12-560, D. Idaho; Federal Trade Commission, et al. v. St. Luke's Health System, Ltd., et al., No. 13-116, D. Idaho; 2014 U.S. Dist. LEXIS 9264).

Mealey's Antitrust/Unfair Competition - Hospital System's Acquisition Of Physician Group Must Be Undone, Federal Judge Rules

BOISE, Idaho - A federal judge in Idaho on Jan. 24 ordered the divestiture of a consummated merger between Idaho's largest health system and the state's largest independent, multispecialty physician group, finding that the acquisition was anti-competitive (Saint Alphonsus Medical Center - Nampa, Inc., et al. v. St. Luke's Health System, Ltd., No. 12-560, D. Idaho; Federal Trade Commission, et al. v. St. Luke's Health System, Ltd., et al., No. 13-116, D. Idaho; 2014 U.S. Dist. LEXIS 9264).

9th Circuit Affirms Dismissal Of Challenge To United, Continental Merger

SAN FRANCISCO - A federal district court did not abuse its discretion when it declined to estop United Airlines and Continental Airlines from opposing airline ticket purchasers' national market definition, the Ninth Circuit U.S. Court of Appeals ruled Jan. 16 in an unpublished opinion affirming the dismissal of the purchasers' complaint challenging the airlines' merger under Section 7 of the Clayton Act (Michael Malaney, et al. v. UAL Corporation, et al., No. 12-15182, 9th Cir.; 2014 U.S. App. 880).

Federal Judge Dismisses Engineering Defects Case After Settlement Is Reached

TRENTON, N.J. - A federal judge in New Jersey on Jan. 10 filed an order dismissing a case involving an engineering firm that allegedly was negligent and breached express and implied warranties when designing precast panels for use in the construction of an ultraviolet water disinfection facility in Valhalla, N.Y., after being informed that an undisclosed settlement was reached (JPC Merger Sub LLC v. Baker Engineering and Risk Consultants Inc., No. 12-2825, D. N.J.).

Judge Certifies Class In Securities Suit Against Gas And Oil Company

SANTA ANA, Calif. - A federal judge in California on Jan. 6 certified a class of investors in a securities class action lawsuit against a natural gas and oil company alleged to have issued misrepresentations in proxy statements used as part of a series of mergers in violation of federal securities laws, ruling that the investors have met all statutory requirements for class certification (Jeffrey Schulein, et al. v. Petroleum Development Corp., et al., No. 11-1891, C.D. Calif.).

Judge Says CVS Shareholders Properly Pleaded Material Misrepresentation, Scienter

PROVIDENCE, R.I. - Dismissal of a shareholder class action lawsuit challenging the merger that brought CVS Caremark Corp. together is not warranted because the shareholders have properly pleaded a material misrepresentation and scienter in making their federal securities law claims, a federal judge in Rhode Island ruled Dec. 31 (City of Brockton Retirement System, et al. v. CVS Caremark Corp., et al., No. 09-554, D. Rhode Island; 2013 U.S. Dist. LEXIS 181627).

Class Opposed To Merger Of American, US Airways Appeals, Says Evidence Not Considered

NEW YORK - The class plaintiffs who opposed the merger of bankrupt American Airlines Inc. and US Airways Group Inc. by filing an adversary complaint in the bankruptcy of American Airlines' parent company, AMR Corp., on Dec. 19 filed a designation of appeal contending that evidence presented in the U.S. Bankruptcy Court for the Southern District of New York was not considered (Carolyn Fjord, et al. v. AMR Corporation, et al. $(In Re: AMR Corporation$), No. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

Federal Judge Certifies Class Of Health Care Purchasers In Hospital Merger Case

CHICAGO - End payers who purchased inpatient and outpatient health care services directly from NorthShore University HealthSystem and alleged that NorthShore illegally monopolized the market for such services following the merger of hospitals demonstrated that class adjudication of the antitrust claims was superior, a federal judge in Illinois ruled Dec. 10 in granting the purchasers' motion for class certification (In re: Evanston Northwestern Corporation Antitrust Litigation, No. 07-cv-04446, N.D. Ill.; 2013 U.S. Dist. LEXIS 173794).

U.S. High Court Denies Stay Of American Airlines Merger With US Airways

WASHINGTON, D.C. - U.S. Supreme Court Justice Ruth Bader Ginsburg on Dec. 8 denied an emergency application by individual airline customers seeking to prevent the merger of bankrupt American Airlines Inc. and US Airways Group Inc. The customers had argued that the merger violates federal antitrust laws (Carolyn Fjord v. AMR Corporation, No.13A579, U.S. Sup.).

Airline Customers: American Airlines Merger Approval Should Be Stayed For Appeal

NEW YORK - The class action plaintiffs that sued bankrupt AMR Corp., the parent company of American Airlines, on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the Bankruptcy Court should stay its decision approving the merger of American Airlines and US Airways Group Inc. pending appeal (Carolyn Fjord, et al. v. AMR Corporation, et al. $(In Re: AMR Corporation$), no. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

Bankruptcy Judge Approves DOJ, American Airlines Settlement Ending Merger Lawsuit

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of AMR Corp., the parent company of American Airlines Inc., on Nov. 27 approved a settlement between American Airlines and the U.S. Department of Justice (DOJ) that will allow the airline to merge with US Airways Inc. and emerge from Chapter 11 bankruptcy (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

3 Unions Ask Bankruptcy Court To Approve American Airlines, DOJ Settlement

NEW YORK - The Allied Pilots Association (APA) and two other unions representing workers in the airline industry on Nov. 21 filed a statement in the U.S. Bankruptcy Court for the Southern District of New York supporting the settlement agreement reached between the U.S. Department of Justice (DOJ) and US Airways Group Inc. and American Airlines Inc. that would resolve antitrust objections to the proposed merger of the two airlines (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

High Court Denies Challenge To Judge's Practice In Appointing Class Counsel

WASHINGTON, D.C. - The U.S. Supreme Court on Nov.18 denied a petition for review filed by a class member who objected to the settlement of a class suit accusing Sirius XM Radio Inc. of antitrust violations in connection with the 2008 merger of the only two providers of satellite radio, and Justice Samuel A. Alito Jr. commented that a judge's requirement that class counsel reflect the class as to race and gender may warrant "future review" (Nicholas Martin v. Carl Blessing, et al., No. 13-169, U.S. Sup.).