ALBANY, N.Y. - A federal judge in New York on Nov. 28 granted default judgment in favor of the U.S. government, finding that a student loan debtor owes the government $3,321.46 in unpaid principal and prejudgment interest, as well as post-judgment interest and fees. (United States of America v. Robert A. Steinkamp, No. 12-00132, N.D. N.Y.; 2012 U.S. Dist. LEXIS 168606).
SAN DIEGO - A federal judge in California on Nov. 26 denied a motion for stay or injunction pending appeal and a motion to set aside a $17 million judgment that was awarded to the Federal Deposit Insurance Corp., as the receiver for a failed bank, in a suit it brought for breach of guaranty on loans (Federal Deposit Insurance Corp. v. Danny Tarkanian, et al., No. 10-00980, S.D. Calif.; 2012 U.S. Dist. LEXIS 168344).
ANN ARBOR, Mich. - A Michigan couple's wrongful foreclosure suit against Bank of America N.A. and the Federal National Mortgage Association (Fannie Mae) was dismissed by a federal judge in Michigan on Nov. 27 after he found that they lacked standing to bring the suit because they did not attempt to recover their property during the six-month redemption period (Roger Pace, et al. v. Bank of America N.A., et al., No. 12-12014, E.D. Mich.; 2012 U.S. Dist. LEXIS 167557).
HOUSTON - A shareholder told a Texas federal court on Nov. 27 that presuit demand upon a board of directors was excused because certain directors and officers of a company are not disinterested (E. Howard King, Jr., Derivatively on Behalf of Houston American Energy Corp., v. John F. Terwilliger, et al., No. 12-cv-02182, S.D. Texas).
SAN JOSE, Calif. - A Hewlett-Packard shareholder sued certain of the company's directors and officers and others in a California federal court on Nov. 27 regarding damages to the company resulting from the acquisition of Autonomy Corp. PLC (Ernesto Espinoza, Derivatively on Behalf of Hewlett-Packard Company, v. Michael R. Lynch, et al., No. 12-cv-06025, N.D. Calif.).
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 27 partially affirmed the dismissal of a putative class action in which consumers alleged that travel club defendants swindled them into buying bogus travel club memberships and credit card companies provided point-of-sale financing for the sale of the memberships, but the panel reversed the dismissal of the consumers' Racketeer Influenced and Corrupt Organizations Act (RICO) 18 U.S.C.S. §§ 1961 et seq. conspiracy claims against the travel club defendants (Brian Grant, et al. v. Darryl Turner, et al., No. 11-2760, 3rd Cir.; 2012 U.S. App. LEXIS 24316). View a complimentary copy of the opinion in the pdf attached below.
INDIANAPOLIS - A federal judge in Indiana on Nov. 26 dismissed a complaint in which a consumer alleged that Capital One Bank (USA) N.A. violated the Fair Dept Collection Practices Act (FDCPA) 15 U.S.C.S. § 1692e , Fair Credit Reporting Act, 15 U.S.C.S. § 1681, and Truth in Lending Act (TILA) 15 U.S.C.S. § 1601, regarding its handling of her credit card account, ruling that none of the claims is viable as a matter of law (Beth A. Baker v. Capital One Bank [USA] N.A., No. 12-00971, S.D. Ind.; 2012 U.S. Dist. LEXIS 167579).
SAN FRANCISCO - A federal judge in Oregon did not err in dismissing a consumer's Fair Credit Reporting Act, 15 U.S.C.S. § 1681, claims against a credit card company because the FCRA claims do not provide for a private right of action for the consumer, a Ninth Circuit U.S. Court of Appeals panel ruled Nov. 26 (Lawrence James Saccato v. Discover Financial Services Inc., No. 11-35895, 9th Cir.; 2012 U.S. App. LEXIS 24241).
LOS ANGELES - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of megachurch Crystal Cathedral on Nov. 26 ruled that former senior pastor Robert H. Schuller was entitled to only $615,624.68 for breach of contract, rather than the $5 million he had sought in damages (In Re: Crystal Cathedral Ministries, No. 12-15665, Chapter 11, C.D. Calif. Bkcy.). Subscribers may view the opinion available within the full article.
NEW YORK - Objecting plaintiffs on Nov. 27 filed an appeal and requested a stay, pending appeal, of the order entered the same day by a federal judge in New York granting preliminary approval to the $7.25 billion class action settlement between merchants and 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.). View related prior history, 2012 U.S. Dist. LEXIS 153637.
NEW YORK - A Second Circuit U.S. Court of Appeals panel on Nov. 26 agreed to hear an appeal of a New York federal judge's ruling granting class certification in a securities class action lawsuit against underwriter Credit Suisse Securities (USA) LLC and others (Credit Suisse Securities (USA) LLC v. Vaszurele Ltd., No. 12-4411, 2nd Cir.). View related prior history, 2011 U.S. App. LEXIS 9567.
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Vertis Holdings Inc. on Nov. 27 approved the company's plan to pay its employees incentives (In Re: Vertis Holdings Inc., No. 12-12821, Chapter 11, D. Del. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 26 heard oral arguments regarding whether the state-action doctrine applied to immunize a merger between two Georgia hospitals from the Federal Trade Commission's challenge that the transaction substantially lessened competition or tended to create a monopoly (Federal Trade Commission v. Phoebe Putney Health System, Inc., et al., No. 11-1160, U.S. Sup.).
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HOUSTON - A federal judge in Texas on Nov. 26 remanded a man's wrongful foreclosure suit after finding that a nondiverse successor loan servicer was properly joined as a defendant (Richard H. Alsenz v. Aurora Bank FSB, et al., No. H-12-2695, S.D. Texas; 2012 U.S. Dist. LEXIS 166902).
LAS VEGAS - A federal judge in Nevada on Nov. 20 ruled that enforcement of a Private Securities Litigation Reform Act (PSLRA) discovery stay is proper in a securities class action lawsuit because a discovery stay is required upon a filing of a motion to dismiss (Frank J. Fosbre Jr. v. Las Vegas Sands Corp., et al., No. 10-765, D. Nev.; 2012 U.S. Dist. LEXIS 166420).
TEXARKANA, Ark. - A federal judge in Arkansas on Nov. 20 granted a motion to stay a shareholder derivative action against certain current and former officers and directors of Wal-Mart Stores Inc., ruling that abstention is proper under the Colorado River Water Conservation District v. U.S. abstention doctrine (Colorado River Water Conservation District v. U.S. abstention doctrine (In re Wal-Mart Stores Inc. Shareholder Derivative Litigation, No. 12-4041, W.D. Ark.; 2012 U.S. Dist. LEXIS 165632).
BALTIMORE - A federal judge in Maryland on Nov. 20 held that a woman lacked standing to pursue a claim under the Maryland Mortgage Fraud Protection Act (MMFPA) against her loan servicer because Trial Period Plan (TPP) payments she made while attempting to modify her home loan did not cause her to suffer a concrete injury (Valerie Stoval, et al. v. SunTrust Mortgage Inc., No. RDB-10-2836, D. Md.; 2012 U.S. Dist. LEXIS 165377).
NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Nov. 21 moved for approval of its plan of liquidation in the U.S. Bankruptcy Court for the Southern District of New York (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D.N.Y. Bkcy.). Subscribers may view the motion available within the full article.
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Hostess Brands Inc. on Nov. 27 issued an interim order approving the company's plan to wind down its business and liquidate its assets (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.
WILMINGTON, Del. - A creditor in the Chapter 11 bankruptcy of alternative energy company A123 Systems Inc. on Nov. 26 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the company's plan to reject various contracts on grounds that doing so would jeopardize the creditor's ability to continue operating (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).
WASHINGTON, D.C. - Merck & Co. Inc. on Nov. 20 urged the U.S. Supreme Court to grant review of both its challenge to a Third Circuit U.S. Court of Appeals ruling and the Federal Trade Commission's challenge to an 11th Circuit U.S. Court of Appeals ruling in Federal Trade Commission v. Watson Pharmaceuticals, Inc., et al. and to set them for parallel briefing and oral argument because both cases present the issue of the appropriate antitrust standard for evaluating settlements involving reverse payments from name-brand drug manufacturers to generic challengers (Merck & Co., Inc. v. Louisiana Wholesale Drug Co., Inc., et al., No. 12-245, U.S. Sup.).
VALDOSTA, Ga. - A Georgia federal judge on Nov. 26 found that borrowers have not met their burden to show that they can pursue claims against the Federal Deposit Insurance Corp. as the receiver for a failed bank, granting the FDIC's motion to dismiss the suit in which the borrowers alleged that the bank breached an agreement with them (Jay Gregory Branch Sr., et al. v. Federal Deposit Insurance Corp., No. 11-00044, M.D. Ga.). Subscribers may view the order available within the full article.
NEW YORK - A putative class of former employees of bankrupt Hostess Brands Inc. on Nov. 21 sued the company in the U.S. Bankruptcy Court for the Southern District of New York, alleging violations of the Worker Adjustment and Retraining Notification Act (WARN), 29 U.S.C.S. § 2101. (Mark Popovich v. Hostess Brands Inc. [In Re: Hostess Brands Inc.], No. 12-22052, S.D. N.Y. Bkcy.).
LOS ANGELES - An organization's class action attacks allegedly false representations about the nature of business ratings, not the protected activity of the ratings themselves, a California appellate court held Nov. 19 in affirming denial of a motion to strike state unfair competition law (UCL) Cal. Bus. & Prof. Code § 17200 claims (The League of California Homeowners v. The Better Business Bureau of The Southland, No. E053423, Calif. App., 4th Dist., Div. 2).
NEW ORLEANS - A lawsuit filed by the State of Mississippi against liquid crystal display (LCD) panel manufacturers and distributors accusing them of engaging in a conspiracy to fix prices for LCD panels qualifies as a "mass action" under the Class Action Fairness Act of 2005, 28 USCS § 1711 and belongs in federal court, the Fifth Circuit U.S. Court of Appeals ruled Nov. 21 (State of Mississippi, ex rel Jim Hood, Attorney General v. AU Optronics Corporation, et al., No. 12-60704, 5th Cir.; 2012 U.S. App. LEXIS 24096).