NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Nov. 8 ruled that a district court did not abuse its discretion and properly dismissed a lawsuit filed by a creditor who claimed that a debtor owed him rent related to a terminated lease (R. Perry Overstreet v. Joint Facilities Management LLC [In Re: Crescent Resource LLC], No. 11-51141, Chapter 11, 5th Cir.; 2012 U.S. App. LEXIS 23064).
SAN FRANCISCO - The federal judge in California overseeing the film transistor-liquid crystal displays (TFT-LCD) antitrust litigation on Nov. 7 denied Toshiba Corp.'s motion for summary judgment, finding that there was a genuine dispute as to whether the panels that were used in the plaintiffs' products fell within the scope of the conspiracy between manufacturers to raise and fix the price of TFT-LCD panels (In re: TFT-LCD [Flat Panel] Antitrust Litigation [ATS Claim, LLC v. Epson Electronics America, Inc., et al.], MDL No. 3:07-md-1827 SI, No. C 09-1115 SI; N.D. Calif.; 2012 U.S. Dist. LEXIS 160336).
NEW YORK - A federal judge in New York on Nov. 8 dismissed a class action filed by purchasers of securities in bankrupt Eastman Kodak Co., ruling that there was no evidence that Kodak's executives knowingly misled the class about their plans to file for bankruptcy (Timothy A. Hutchinson v. Antonio M. Perez, et al., No. 12-1073, S.D. N.Y.). Subscribers may view the decision available within the full article.
BAY CITY, Mich. - A federal judge in Michigan on Nov. 8 denied a student loan debtor's request for a hearing after a writ of wage garnishment was issued against her because she did not provide an affidavit explaining why she should be permitted to pay off her defaulted loan via an installment plan (United States of America v. Nena Harris, No. 11-12856, E.D. Mich.; 2012 U.S. Dist. LEXIS 160448).
NEW YORK - A federal judge in New York on Nov. 7 ruled that although an investor is not entitled to file declarations in a securities class action lawsuit because the move is not allowable pursuant to Second Circuit U.S. Court of Appeals precedent, the judge allowed the investor to file a motion for reconsideration (Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., Inc., et al., No. 08-7508, S.D. N.Y.).
SAN FRANCISCO - The California Supreme Court on Nov. 8 announced it will hear oral arguments next month addressing whether delayed discovery or the continuing violation doctrine tolls the statute of limitations in unfair competition law (UCL) Cal. Bus. & Prof. Code § 17200, actions (Jamshid Aryeh v. Canon Business Solutions Inc., No. S184929, Calif. Sup.).
WASHINGTON, D.C. - The U.S. Supreme Court heard oral arguments on Nov. 7 over whether a prevailing defendant in a Fair Debt Collection Practices Act (FDCPA), 15 U.S.C.S. §§1692 et seq., lawsuit may be awarded costs even though the lawsuit was not brought in bad faith or with an intent to harass (Olivea Marx v. General Revenue Corporation and Kevin Cobb, No. 11-1175, U.S. Sup.). View related prior history, 2012 U.S. LEXIS 7888.
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MINNEAPOLIS - A federal judge in Minnesota on Nov. 7 denied a shareholder's motion for preliminary injunction enjoining a company from completing a merger deal, ruling that the shareholder has failed to show that there is a substantial likelihood that her state and federal securities law claims would succeed (Helene Gottlieb v. Richard S. Willis, et al., No. 12-2637, D. Minn.).
ST. LOUIS - A federal judge in Missouri on Nov. 6 dismissed a securities class action lawsuit, ruling that shareholders have failed to state a claim for relief with regard to each of the federal securities law claims (Shamim Rabbani, et al. v. DryShips Inc., et al., No. 12-130, E.D. Mo.).
WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of alternative energy company A123 Systems Inc. on Nov. 6 filed an objection in the U.S. Bankruptcy Court for the District of Delaware, contending that the company should not be permitted to implement its employee incentive plan, which would give bonuses to key employees (In Re: A123 Systems Inc., No.12-12859, Chapter 11, D. Del. Bkcy.). Subscribers may view the brief available within the full article.
BOCA RATON, Fla. - A Financial Industry Regulatory Authority (FINRA) arbitration panel on Nov. 5 dismissed $1.9 million in claims by a group of investors who alleged misrepresentations and other violations against brokerage firm Morgan Keegan & Co. Inc. arising from the investors' losses in Morgan Keegan funds (Cortell Family Limited Partnership V, et al. v. Morgan Keegan & Co. Inc., No. 10-01556, FINRA). Subscribers may view the resolution available within the full article.
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Dewey & LeBoeuf on Nov. 7 authorized the law firm to issue subpoenas for the production of documents and the examination of various officers to resolve issues with the company's outstanding accounts receivable (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.
NEW ORLEANS - A federal judge in Louisiana on Nov. 7 granted First Tennessee Bank NA Inc.'s motion to dismiss a suit real estate developers filed after they incurred losses from interest-rate swap agreements (AGEM Management Services LLC, et al. v. First Tennessee Bank NA Inc., No. 12-01370, E.D. La.). Subscribers may view the minute order available within the full article.
WILMINGTON, Del. - Bankrupt NewPage Corp. on Nov. 5 filed a second amended joint Chapter 11 bankruptcy plan in the U.S. Bankruptcy Court for the District of Delaware, which would give 100 percent equity in the reorganized company to the holders of first-lien notes (In Re: NewPage Corporation, No. 11-12804, Chapter 11, D. Del. Bkcy.). Subscribers may view the amended plan available within the full article.
BUTTE, Mont. - A group of investors in the bankrupt Yellowstone Mountain Club LLC (YMC) on Nov. 6 moved in the U.S. Bankruptcy Court for the District of Montana to compel the enforcement of the automatic stay and for damages against YMC members who dispute a $26 million prepetition settlement in Montana state court (In Re: Yellowstone Mountain Club LLC, No. 08-61570, Chapter 11, D. Mont. Bkcy.). Subscribers may view the motion available within the full article.
NEW YORK - Investors on Nov. 6 asked a federal judge in New York to preliminarily approve a potential $80.25 million settlement of claims that defendants concealed that the investors' funds were being placed in accounts that were part of Bernard L. Madoff's massive Ponzi scheme (Pasha S. Anwar, et al. V. Fairfield Greenwich Ltd., et al., No. 09-0118, S.D. N.Y.).
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SAN DIEGO - A federal judge in California on Nov. 5 ordered arbitration in a putative class action in which a consumer alleged that companies violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, by auto-dialing consumers' cell phones without their consent, disagreeing with the consumer's contention that the companies waived their right to arbitration (Patrick McNamara v. Royal Bank of Scotland Group PLC, et al., No. 11-2137, C.D. Calif.).
CHICAGO - An Illinois federal judge on Nov. 2 ruled that a collection agency may file an interlocutory appeal to the Seventh Circuit U.S. Court of Appeals seeking a ruling on what constitutes "prior express consent" under the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, before any class certification ruling in a consumer's lawsuit, saying the appellate panel's ruling may expedite the case (Melissa Thrasher-Lyon, et al. v. CCS Commercial LLC, d.b.a. Credit Collection Services Commercial, No. 11-4473, N.D. Ill.; 2012 U.S. Dist. LEXIS 157230).
NEW YORK - A federal judge in New York on Nov. 5 substantially denied a motion to dismiss filed by the New York branch of German bank Bayerische Landesbank, ruling that the bank has standing to bring its state and federal securities law claims and that, at this point, dismissal under the Supreme Court's ruling in Morrison v. National Australia Bank, Ltd. is not warranted (Bayerische Landesbank, New York Branch, v. Barclays Capital Inc., et al., No. 12-3294, S.D. N.Y.). Subscribers may view the opinion available within the full article.
BROOKLYN, N.Y. - A federal judge in New York on Nov. 5 awarded an $850,000 judgment to the Federal National Mortgage Association (Fannie Mae) against the founder of a mortgage company in a constructive fraud suit in which Fannie Mae accused the lender of lying in a $44 million scheme to continue collecting Fannie Mae payments after borrowers had paid off their loans (Federal National Mortgage Association v. Olympia Mortgage Corp., et al., No. 04-4971, E.D. N.Y.). Subscribers may view the opinion available within the full article.
NEW YORK - Ten of the 19 named plaintiffs and other merchants and trade associations on Nov. 2 filed objections to the $7.25 billion class action settlement with 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.). Subscribers may view the opposition available within the full article.
NEW YORK - Bankrupt pharmaceutical maker Quigley Co. Inc., a subsidiary of Pfizer Inc., on Nov. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for an extension of the voting deadline to approve its reorganization plan until the end of the month (In Re: Quigley Company Inc., No. 04-15739, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the motion available within the full article.
FORT WORTH, Texas - A federal judge in Texas on Nov. 6 dismissed a lawsuit brought by bankrupt American Airlines Inc. against the National Mediation Board (NMB), ruling that based on instructions from the Fifth Circuit U.S. Court of Appeals, the district court lacked jurisdiction in the matter (American Airlines Inc. v. National Mediation Board, No. 12-276, Chapter 11, N.D. Texas). Subscribers may view the opinion available within the full article.
NEW YORK - The U.S. government on Nov. 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to bankrupt Residential Capital LLC's motion seeking to sell its assets (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
PHILADELPHIA - In a suit in which a borrower alleges a "foreclosure rescue scam," a federal judge in Pennsylvania on Nov. 2 granted the motion for summary judgment filed by OneWest Bank FSB, which assumed a loan in question when it acquired the assets of the failed IndyMac Mortgage Services (IndyMac), ruling that the borrower's allegations do not relate to any actions taken by OneWest and are therefore subject to The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), 12 U.S.C.S. § 1821, mandatory receivership claims process (Shakiela Clark v. El Jeffre Blackfoot-Bey, et al., No. 10-2683, E.D. Pa.; 2012 U.S. Dist. LEXIS 158065).