WASHINGTON, D.C. - Boehringer Ingelheim Pharmaceuticals Inc. (BIPI) was ordered by a federal magistrate judge in the District of Columbia on Oct. 16 to search four backup tapes for responsive electronically stored information (ESI) in response to a subpoena duces tecum filed by the Federal Trade Commission because the company was unable to show that searching for the records would "unduly disrupt or seriously hinder normal operations of a business" (Federal Trade Commission v. Boehringer Ingelheim Pharmaceuticals Inc., No. 09-564, D. D.C.; 2012 U.S. Dist. LEXIS 148251).
NEW YORK - Dismissal of a lawsuit against a provider of online credit card processing services is proper because an agreement for providing the services requires that all claims be subject to arbitration, a federal judge in New York ruled Oct. 15 (Garry Wendrovsky v. Chase Paymentech, No. 12-0704, S.D. N.Y.). Subscribers may view the opinion available within the full article.
DENVER - In a suit in which First Southwest Bank (FSB) sued Colorado Capital Bank (CCB) regarding a loan agreement, the Federal Deposit Insurance Corp., which replaced CCB as the defendant after CCB failed, filed an untimely removal notice, a federal judge in Colorado ruled Oct. 16, granting FSB's motion to remand the suit to a state court (First Southwest Bank v. Federal Deposit Insurance Corp., No. 12-01669, D. Colo.; 2012 U.S. Dist. LEXIS 148458).
BOWLING GREEN, Ky. - A federal judge in Kentucky on Oct. 16 granted Capital One N.A. Corp.'s motion for partial dismissal of a suit in which it is alleged to have withdrawn more than $86,000 from a consumer's account with another bank without her permission, agreeing with Capital One that she lacks standing under the Kentucky Consumer Protection Act (KCPA) and failed to plead a fraud claim with the particularity required by Federal Rule of Civil Procedure 9(b) (Peggy Campbell v. Capital One N.A. Corp., No. 12-00082, W.D. Ky.; 2012 U.S. Dist. LEXIS 148410).
WILMINGTON, Del. - The U.S. government on Oct. 16 moved in the U.S. Bankruptcy Court for the District of Delaware to compel Solyndra LLC to produce documents related to the decisions the company made in crafting its liquidation plan (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.). Subscribers may view the motion available within the full article.
NEW YORK - In an issue of first impression, a federal bankruptcy judge in New York on Oct. 12 ruled that the liquidation trustee for Bernard L. Madoff Investment Securities LLC (BLMIS) may recover more than $42 million from the Taiwanese Bureau of Labor Insurance (BLI) as a subsequent transferee because the initial transfers from BLMIS to the feeder fund in which BLI invested "are avoidable" (Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC, No. 08-1789, [In re: Bernard L. Madoff Investment Securities LLC (Irving H. Picard v. Bureau of Labor Insurance, No. 11-02732], S.D. N.Y. Bkcy.). View related prior history, 2011 U.S. App. LEXIS 16884, 2012 U.S. Dist. LEXIS 92231.
WILMINGTON, Del. - A123 Systems Inc., manufacturer of lithium-ion batteries used in hybrid electric vehicles (HEVs), on Oct.16 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware despite listing assets of $459,795,000 and debts of only $376,045,000 (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.). Subscribers may view the petition available within the full article.
SACRAMENTO, Calif. - Home purchasers who sued a subdivision's developer, builder and seller, alleging that the defendants manipulated the market value of the homes in the subdivision in violation of the Sherman Act, failed to allege a sufficient effect on interstate commerce, a federal judge in California ruled Oct. 12 in dismissing the claim for lack of federal question subject matter jurisdiction (Connie Cherrone, et al. v. Florsheim Development, et al., No. 2:12-02069, E.D. Calif.; 2012 U.S. Dist. LEXIS 147433).
KANSAS CITY, Mo. - A Missouri federal judge on Oct. 12 denied a proposed settlement as written in a class lawsuit accusing 21 Budget brand rental car businesses of violating the Fair and Accurate Credit Transactions Act (FACTA),117 Stat. 1952, (John T. Galloway, et al. v. The Kansas City Landsmen, LLC, et al., No. 11-1020, W.D. Mo.; 2012 U.S. Dist. LEXIS 147148). A complimentary copy of the order is available in the pdf attached below.
MEMPHIS, Tenn. - Morgan Keegan & Co. Inc. and certain of its related entities, as well as its former parent company, Regions Financial Corp. (RFC), have agreed to pay $68 million to settle claims that they breached their fiduciary duty by mismanaging a group of mutual funds that were backed by asset-backed securities, a federal judge in Tennessee ruled Oct. 12 (In re Regions Morgan Keegan Securities, Derivative and ERISA Litigation, No. 2:09-md-02009-SHM, [In re Helios Closed-End Funds Derivative Litigation, No. 2:11-cv-02935-SHM-TMP], W.D. Tenn.). Subscribers may view the motion available within the full article.
EUGENE, Ore. - A debt collector has failed to provide sufficient evidence showing that a statement made by one of its representatives to a consumer while attempting to collect on a debt falls under the bona fide error exemption of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C.S. §§1692 et seq., a federal judge in Oregon ruled Oct. 11 (Seif Elzaghal v. Ray Klein Inc., dba Professional Credit Service, No. 12-0116, D. Ore.; 2012 U.S. Dist. LEXIS 147323).
MIAMI - A federal magistrate judge in Florida on Oct. 15 allowed a consumer's suit alleging that a debt collection agency's phone calls violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, to proceed, explaining that he cannot resolve at the motion-to-dismiss stage the issue of whether the consumer consented to the calls (Jamar A. Scott v. Merchants Association Collection Division Inc., No.12-23018, S.D. Fla.; 2012 U.S. Dist. LEXIS 147987).
NEW YORK - State antitrust, consumer protection and unfair competition claims asserted by indirect purchasers of air freight shipping services against foreign airlines are expressly preempted by the Federal Aviation Act (FAA), the Second Circuit U.S. Court of Appeals affirmed Oct. 11 (In re Air Cargo Shipping Services Antitrust Litigation, No. 11-5464, 2nd Cir.; 2012 U.S. App. LEXIS 21091).
DETROIT - A federal judge in Michigan on Oct. 12 awarded summary judgment to Wells Fargo Home Mortgage Inc., doing business as America's Servicing Co., after ruling that a couple failed to demonstrate harm from the defendant's refusal to modify their home mortgage loan because they did not make the required contribution payment (Carl Schuler, et al. v. Wells Fargo Home Mortgage Inc. d/b/a America's Servicing Company, et al., No. 11-11501, E.D. Mich.; 2012 U.S. Dist. LEXIS 147231).
NEW YORK - A federal judge in New York on Oct. 15 allowed securities fraud claims that investors filed over alleged misrepresentations made by Lehman Brothers Holdings Inc. before its collapse to continue, finding that some allegations against Lehman's officers and directors can proceed but dismissing other claims (In re: Lehman Brothers Securities and ERISA Litigation, MDL No. 09-2017, S.D. N.Y.).
SAN FRANCISCO - The federal judge in California overseeing the film transistor-liquid crystal displays (TFT-LCD) antitrust litigation on Oct. 15 preliminarily approved a $30 million settlement between Toshiba Corp. and direct purchasers, vacating a jury award of $87 million in damages to the purchasers on their claims that Toshiba engaged in a conspiracy with other manufacturers to raise and fix the price of TFT-LCD panels and certain products containing those panels imported into the United States (In re: TFT-LCD [Flat Panel] Antitrust Litigation [All Direct Purchaser Actions], MDL No. 3:07-md-1827 SI, N.D. Calif.). View related prior history, 2012 U.S. Dist. LEXIS 148033.
NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Oct. 15 moved in the U.S. Bankruptcy Court for the Southern District of New York seeking the power to issue subpoenas for the production of documents and authorizing the examination of recalcitrant former clients of the firm who have yet to pay their invoices despite repeated requests (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the motion available within the full article.
WILMINGTON, Del. - Bankrupt solar energy company Solyndra LLC on Oct. 15 filed a brief in the U.S. Bankruptcy Court for the District of Delaware supporting the confirmation of its Chapter 11 plan contending that the U.S. Department of Energy (DOE) lacks claims for diminution and the IRS cannot show that the plan's purpose is tax avoidance (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 15 denied review of a divided Second Circuit U.S. Court of Appeals ruling adopting the presumption of prudence and finding that Citigroup Inc., Citibank N.A. and certain corporate officers and directors (collectively, Citigroup) did not breach their fiduciary duties under the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq.,by continuing to offer company stock as an investment option in current and former employees' 401(k) plans, even though the company would suffer huge losses from its subprime-mortgage-related investments (Stephen Gray, et al. v. Citigroup, Inc., et al., No. 11-1531, U.S. Sup.).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 15 declined to review a Second Circuit U.S. Court of Appeals ruling that McGraw-Hill Cos. Inc. and its officers and directors (collectively, McGraw-Hill) did not breach their fiduciary duties under the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq., by continuing to offer company stock as an investment option in its 401(k) plans, despite problems in its financial services division (Patrick L. Gearren, et al. v. The McGraw-Hill Companies, Incorporated, et al., No. 11-1550, U.S. Sup.).
SOUTH BEND, Ind. - A law firm did not violate provisions of the Fair Credit Reporting Act, 15 U.S.C.S. § 1681, by obtaining a consumer's credit report on a number of occasions because the law firm was attempting to collect on a debt, a federal judge in Indiana ruled Oct. 12 in granting the law firm's motion for summary judgment (Chien Dang v. Weltman, Weinberg & Reis Co., L.P.A., No. 12-246, N.D. Ind.; 2012 U.S. Dist. LEXIS 147060).
PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Oct. 12 upheld a district court's preliminary injunction and provisional class certification in a lawsuit accusing a debt collection company of using its telephone system to place calls to cellular telephone numbers with California area codes that the company obtained via skip tracing (Jesse Meyer, et al. v. Portfolio Recovery Associates, LLC, et al., No. 11-56600, 9th Cir.; 2012 U.S. App. LEXIS 21136).
SAN DIEGO - A California judge on Oct. 11 found future harm from a data breach sufficient injury for the purposes of the "injury-in-fact" requirement of Article III of the U.S. Constitution but dismissed California unfair competition law (UCL) claims (In re: Sony Gaming Networks and Customer Data Security Breach Litigation, Nos. MDL 11-2258, S.D. Calif.).
ASHEVILLE, N.C. - A federal judge in North Carolina on Oct. 11 granted investors' motion to remand to a state court a suit in which they assert claims against Morgan Stanley Smith Barney (MSSB) arising from their investments in what proved to be a Ponzi scheme, finding that the investors' state law claims do not present issues of federal law that are "actually disputed and substantial" (Leslie A. Whittington, et al. v. Morgan Stanley Smith Barney, et al., No. 12-00112, W.D. N.C.; 2012 U.S. Dist. LEXIS 146284).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Oct. 12 ruled that it lacked jurisdiction to hear a lender's complaint that a bankruptcy judge should have recused himself in a dispute over the issue of whether it had filed an abusive lawsuit against a debtor couple (Friendly Finance Service Eastgate Inc. v. Gregory Neal Dorsey, et al. [In Re: Gregory Neal Dorsey, et al.], No. 12-30018, Chapter 7, 5th Cir.; 2012 U.S. App. LEXIS 21193).