WILMINGTON, Del. - Liberty Mutual Insurance Co. filed a brief in the U.S. Bankruptcy Court for the District of Delaware on Dec. 6 objecting to the reorganization plan filed by New Page Corp. on grounds that the plan does not adequately protect its interests (In Re: New Page Corporation, No. 11-12804, Chapter 11, D. Del. Bkcy.).
NEW YORK - Bankrupt pharmaceutical company K-V Discovery Solutions Inc. on Dec. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a $60 million settlement with Hologic Inc. that would dispose of Hologic's claims, which are valued at $95 million (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Vertis Holdings Inc. on Dec. 6 issued an order approving the sale of substantially all of the company's assets free and clear of all liens for $258.5 million (In Re: Vertis Holdings Inc., No. 12-12821, Chapter 11, D. Del. Bkcy.).
NEW YORK - Consolidated putative antitrust class actions related to live-game video offerings against Major League Baseball (MLB) and the National Hockey League (NHL) and their subsidiaries and member clubs, regional sports networks (RSNs) that televise the games and multichannel video programming distributors (MVPDs) Comcast and DirecTV will continue, a federal judge in New York ruled Dec. 5 (Thomas Laumann, et al. v. National Hockey League, et al., No. 12 Civ. 1817, S.D. N.Y.; Fernanda Garber, et al. v. Office of the Commissioner of Baseball, et al., No. 12 Civ. 3704, S.D.N.Y.; 2012 U.S. Dist. LEXIS 172686). View a complimentary copy of the opinion in the pdf attached below.
CINCINNATI - A federal district court did not err in dismissing a securities lawsuit filed by five pension funds operated by the State of Ohio for public employees because the funds failed to state a claim for relief, a Sixth Circuit U.S. Court of Appeals panel ruled Dec. 3 (Ohio Police & Fire Pension Fund, et al. v. Standard & Poor's Financial Services LLC, et al., No. 11-4203, 6th Cir.; 2012 U.S. App. LEXIS 24778).
SPOKANE, Wash. - A federal judge in Washington on Dec. 4 granted a motion to dismiss filed by the Federal Deposit Insurance Corp. as the receiver for a failed bank, finding that borrowers did not exhaust the Financial Institutions Reform, Recovery and Enforcement Act of 1989's (FIRREA) administrative claims process before asserting their claims against the FDIC (Michael E. Henry, et al. v. David Craig Conklin, et al., No.12-05038, E.D. Wash.; 2012 U.S. Dist. LEXIS 171952).
WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to OSG's request for a waiver of requirements under the Bankruptcy Code governing the deposit and investment of $320 million in estate funds (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).
OAKLAND, Calif. - The Federal Trade Commission on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Northern District of California arguing that the Chapter 11 case of investment scheme operator John N. Beck II should be dismissed or converted because it was filed in bad faith (In Re: John N. Beck II, No. 12-47882, Chapter 11, N.D. Calif. Bkcy.).
DALLAS - A federal bankruptcy judge in Texas on Dec. 4 ruled that 10 affiliates of bankrupt Mexican glassmaker Vitro Asset Corp. could be forced into Chapter 11 bankruptcy involuntarily because all affiliates of the company are jointly and severally liable for the debts created when the parent company defaulted (In Re: Vitro Asset Corp., No. 11-32600, Chapter 11, N.D. Texas Bkcy.).
SANTA ANA, Calif. - Revisiting a ruling it originally reversed, a California appellate panel on Dec. 4 affirmed judgment on California unfair competition law (UCL) claims against a bank accused of skirting disclosure laws, finding the regulations preempted (Allan Parks v. MBNA America Bank, N.A., No. G040798, Calif. App., 4th Dist., Div. 3; 2010 Cal. App. LEXIS 671). View related prior history 2012 U.S. LEXIS 8906.
NEW ORLEANS - A federal judge in Louisiana on Dec. 3 granted motions to transfer filed by a defendant and intervenor in an investor Ponzi scheme suit, finding that private and public interest factors weigh in favor of transferring the action to a North Carolina federal court (Johnny Belsome, et al. v. Rex Venture Group LLC, et al., No. 12-02173, E.D. La.; 2012 U.S. Dist. LEXIS 171142).
BOSTON - Shareholders said in a Massachusetts federal court on Nov. 30 that a corporation's allegedly independent board improperly rejected a written demand the shareholders made on the board regarding an alleged fraud the corporation perpetrated on its clients (Operative Plasters' and Cement Masons' Local Union Officers' and Employees' Pension Fund v. Joseph L. Hooley, No. 12-cv-10767, D. Mass.).
WILMINGTON, Del. - Walt Disney Studios Motion Picture Production on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to bankrupt Digital Domain Media Group's (DDMG) motion seeking approval to sell assets and contracts free and clear of all liens, contending that Disney still has patent rights (In Re: DDMG Estate, No. 12-12568, Chapter 11, D. Del. Bkcy.).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Nov. 30 withdrew and vacated its own decision in which it had previously concluded that the liquidation trustee in the Chapter 11 bankruptcy proceeding of an investment management company failed to show that fraud had been committed in connection with a $312 million loan it obtained from the Bank of New York Mellon (In Re: Sentinel Management Group Inc., No. 11-1123, Chapter 11, 7th Cir.).
HOUSTON - A federal district court did not err in dismissing a shareholder class action lawsuit against jewelry retailer Zale Corp. and certain of its current and former officers and directors because the lead plaintiff failed to plead scienter in making its federal securities law claims, a Fifth Circuit U.S. Court of Appeals panel ruled Nov. 30 (Pipefitters Local No. 636 Defined Benefit Plan v. Zale Corp., et al., No. 11-10936, 5th Cir.; 2012 U.S. App. LEXIS 24689).
SCRANTON, Pa. - A federal judge in Pennsylvania on Dec. 4 directed a consumer to file an amended complaint showing that a district court has subject matter jurisdiction in a putative class action in which the consumer alleges that various credit and debit card companies' swipe fees amount to fraud (Michael Joseph Ruddy v. Mastercard Network & All Affiliates, et al., No. 12-02376. M.D. Pa.; 2012 U.S. Dist. LEXIS 171630).
ALEXANDRIA, Va. - Without providing further detail, a federal judge in Virginia on Nov. 30 granted a lead plaintiff's motion for certification of a class of shareholders that purchased a global information technology and business services company's securities and were damaged as a result of alleged securities fraud perpetrated by the company and certain of its officers and directors (In re Computer Sciences Corp. Securities Litigation, No. 11-610, E.D. Va.).
RICHMOND, Va. - The trustee in the Chapter 11 bankruptcy of Circuit City Stores Inc. on Dec. 3 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia seeking an order under which Toshiba America Information Systems Inc. will make a confidential payment to the Circuit City Liquidating Trust to avoid litigation over disputed claims against the estate (In Re: Circuit City Stores Inc., No. 08-35653, Chapter 11, E.D. Va. Bkcy.).
ATLANTA - A federal judge did not abuse his discretion in granting in part and denying in part sanctions against lead plaintiffs in a securities class action lawsuit against BankAtlantic Bancorp. Inc. and certain of its officers and directors, an 11th Circuit U.S. Court of Appeals panel ruled Dec. 3 (Joseph C. Hubbard, et al. v. BankAtlantic Bancorp Inc., et al., No. 14703, 11th Cir.; 2012 U.S. App. LEXIS 24805). View a complimentary copy of the opinion in the pdf attached below.
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 3 asked the U.S. solicitor general to provide perspective on whether a bankruptcy court has the power to levy a financial charge against a Chapter 7 debtor's residential property, which he has claimed falls under the homestead exemption (Stephen Law v. Alfred Siegel, No. 12-5196, U.S. Sup.).
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SAN FRANCISCO - Dismissal of a consolidated securities class action complaint is not proper because the lead plaintiff has properly pleaded scienter and loss causation on the part of a snack foods company, two of its former officers and its outside auditor in making its federal securities law claims, a federal judge in California ruled Nov. 30 (In re: Diamond Foods Inc. Securities Litigation, No. 11-5386, N.D. Calif.; 2012 U.S. Dist. LEXIS 170704).
LEXINGTON, Ky. - A federal judge in Kentucky on Nov. 30 denied Pilot Travel Centers LLC's motion to dismiss a case in which a consumer alleges that Pilot violated the Fair and Accurate Credit Transactions Act (FACTA),117 Stat. 1952, by printing receipts that included all of the digits of customers' credit card numbers, finding that the factors for dismissal for failure to prosecute were not met (Ronnie Gist v. Pilot Travel Centers LLC, et al., No. 08-00293, E.D. Ky.; 2012 U.S. Dist. LEXIS 170867).
GRAND RAPIDS, Mich. - A federal judge in Michigan on Nov. 29 approved a settlement between a group of shareholders and directors and officers of a corporation that puts in place certain corporate governance measures (Westchester Putnam Counties Heavy and Highway Laborers Local 60 Benefit Funds, et al. v. Stephen P. MacMillan, et al., No. 10-cv-00284, W.D. Mich.).
WILMINGTON, Del. - The foreign representatives of bankrupt Japanese microchip manufacturer Elpida Memory Inc. on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the court should approve its motion to sell certain assets to speed the company's global reorganization process (In Re: Elpida Memory Inc., No. 12-10947, Chapter 15, D. Del. Bkcy.).
LOS ANGELES - The federal judge in California presiding over the bankruptcy fraud proceeding of former Major League Baseball player Lenny Dykstra has sentenced him to 6-1/2 months in federal prison, a source told Mealey Publications Dec. 4. The sentence was handed down Dec. 3 (U.S. v. Lenny Kyle Dykstra, No. 11-00415, Chapter 7, C.D. Calif.).