LOS ANGELES - A federal judge in California on Dec. 6 dismissed a suit in which a consumer alleged violations of the Fair Credit Report Act (FCRA) and the Song-Beverly Credit Card Act of 1971, finding that she failed to state a claim under the FCRA and that the Song-Beverly Act claims are preempted by the FCRA (Wendy Ellen Fleischmann v. Care Credit, et al., No. 12-08032, C.D. Calif.; 2012 U.S. Dist. LEXIS 174110).
CHICAGO - A federal judge in Illinois on Dec. 10 dismissed for lack of subject matter jurisdiction a suit in a which a consumer sued the Federal Deposit Insurance Corp., as the receiver for the failed Charter National Bank and Trust, and Barrington Bank and Trust Co., which acquired the assets of Charter, to recover funds from his money market account (Baldev Raj Bhutani v. Barrington Bank and Trust, et al., No. 12-05320, N.D. Ill.; 2012 U.S. Dist. LEXIS 174224).
DALLAS - Fastbucks Holding Corp., a provider of payday loans and other forms of "fast cash," on Dec. 10 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas, listing debts between $10 million and $50 million (In Re: Fastbucks Holding Corporation, No. 12-37793, Chapter 11, N.D. Texas Bkcy.).
FORT LAUDERDALE, Fla. - Dismissal of a consumer's complaint against his creditor and a debt collector working on behalf of the creditor for alleged violations of the Telephone Consumer Protection Act (TCPA) is not proper pursuant to the "language of the statute and the authority interpreting the TCPA," a federal judge in Florida ruled Dec. 7 (Frank Manfred II v. Bennett Law PLLC, et al., No. 12-61548, S.D. Fla.; 2012 U.S. Dist. LEXIS 173935).
BUTTE, Mont. - A federal bankruptcy judge in Montana on Dec. 5 ruled that the founder of the bankrupt Yellowstone Mountain Club LLC (YMC), Timothy L. Blixseth, had to pay the liquidating trustee more than $40.99 million related to fraudulent conveyances Blixseth made before YMC's bankruptcy filing (Timothy L. Blixseth v. Marc S. Kirschner [Yellowstone Mountain Club LLC], 08-61570-11, Adv. No. 09-00014, Chapter 11, D. Mont. Bkcy.).
WILMINGTON, Del. - The U.S. Department of Energy (DOE) on Dec. 7 moved in the U.S. Bankruptcy Court for the District of Delaware for a protective order against a notice of deposition filed by the Unsecured Creditors Committee in the Chapter 11 bankruptcy of alternative energy company A123 Systems Inc. (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).
LOS ANGELES - California unfair competition law (UCL) claims against The Coca-Cola Co. involving the marketing and advertising of pomegranate-flavored juice remain in federal court after a judge granted reconsideration Dec. 7 and reversed a ruling finding state courts better equipped to handle the case (Pom Wonderful LLC v. The Coca Cola Co., et al., No. 08-06237, C.D. Calif.).
WASHINGTON, D.C. - Thirty-nine federal personal injury cases representing more than 1,000 plaintiffs who claim that they suffered bone injuries from the prescription heartburn drug Nexium were centralized Dec. 6 before Judge Dale S. Fischer in the U.S. District Court for the Central District of California (In Re: Nexium [Esomeprazole] Products Liability Litigation, MDL Docket No. 2404, JPMDL).
SAN FRANCISCO - A man's California unfair competition law (UCL) claims based on allegedly deceptive advertising of white chocolate baking chips proceeds, but insufficiently similar advertising across products lines bars claims for products he never purchased, a federal judge held Dec. 7 (Scott Miller, et al. v. Ghirardelli Chocolate Co., and DOES 1 through 50, No. 12-04936, N.D. Calif.; 2012 U.S. Dist. LEXIS 174008).
NEW YORK - A group of insurance companies on Dec. 7 moved in the U.S. Bankruptcy Court for the Southern District of New York to compel arbitration of a contract dispute related to an insurance agreement involving bankrupt Hostess Brands Inc. (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 10 declined to hear arguments in a case in which a company that had purchased a debtor's trademarks at an asset sale argued that those trademarks were being infringed upon by a third party that continued selling products under the debtor's name (Sunbeam Products Inc. v. Chicago American Manufacturing LLC, No. 12-431, U.S. Sup.).
LOS ANGELES - A jury in a California federal court on Dec. 7 entered a $168.8 million verdict against three former officers of the failed IndyMac Bank F.S.B., finding that the individuals had been negligent and breached their fiduciary duties with respect to 23 loans at issue in the suit, brought by the Federal Deposit Insurance Corp. as the receiver for IndyMac (Federal Deposit Insurance Corp., as receiver for IndyMac Bank, F.S.B., v. Scott Van Dellen, et al., No. 10-4915, C.D. Calif.).
NEW YORK - A federal judge in New York on Dec. 6 granted Citibank N.A. and Discover Bank's motion to compel arbitration in a student loan borrower's putative class action, ruling that the borrower did not prove that the entire arbitration provision in his loan agreement was unenforceable (Justin A. Kuehn v. Citibank N.A., et al., No. 12-03287, S.D. N.Y.; 2012 U.S. Dist. LEXIS 173346).
SAN FRANCISCO - Investors in a securities class action lawsuit have failed to plead falsity and loss causation in making their federal securities law claims against a company and certain of its executive officers, a federal judge in California ruled Dec. 5 in dismissing the investors' second amended complaint with leave to amend (Cement Masons & Plasterers Joint Pension Trust v. Equinix, Inc., et al., No. 11-01016, N.D. Calif.; 2012 U.S. Dist. LEXIS 172711). View a complimentary copy of the order in the pdf attached below.
SAN FRANCISCO - A city attorney's California unfair competition law (UCL) action against an immigration law firm and its sole shareholder seeks to regulate fraud, not the practice of law, a state appeals court held Dec. 4 (The People ex rel. Dennis J. Herrera, as city attorney, etc. v. Christopher Stender, et al., No. A131625, Calif. App., 1st Dist., Div. 2; 2012 Cal. App. Unpub. LEXIS 8871).
SACRAMENTO, Calif. - A couple's lack of sufficiently specific allegations against their lender dooms their California unfair competition law (UCL) claims, a federal judge held Dec. 5 (Kim Carson and Jim Carson v. Bank of America N.A. and DOES 1-50 inclusive, No. 12-739, E.D. Calif.; 2012 U.S. Dist. LEXIS 172776).
NEW YORK - Former Goldman Sachs Group Inc. director Rajat Gupta's appeal of his conviction for his role in an insider-trading scheme with the former head of The Galleon Group will be expedited, and he will remain free on bail pending appeal, a Second Circuit U.S. Court of Appeals panel ruled Dec. 6 (United States of America v. Rajat Gupta, No. 12-4448, 2nd Cir.).
WASHINGTON, D.C. - The Supreme Court today granted the Federal Trade Commission's petition for a writ of certiorari seeking consideration of whether reverse-payment settlements of patent litigation between the holder of a drug patent and generic manufacturers of the drug violate federal antitrust law (Federal Trade Commission v. Watson Pharmaceuticals, Inc., et al., No. 12-416, U.S. Sup.).
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.).