WILMINGTON, Del. - A company and its directors and officers argued in a Delaware federal court on Oct. 2 that a shareholder failed to show that presuit demand on the company's board of directors would have been futile because the shareholder could not show that a majority of the board lacks independence (Ruth Abrams v. James L. Wainscott, et al., No. 11-cv-00297, D. Del.). Subscribers may view the brief available within the full article.
WILMINGTON, Del. - A Delaware Chancery Court vice chancellor on Oct. 1 awarded a shareholder in a securities lawsuit regarding a merger deal between two perfume companies more than $266,000 in attorney fees and costs, ruling that the shareholder is entitled to only two-thirds of the amount sought (Jose Dias v. Frederick E. Purches, et al., No. 7199, Del. Chanc.).
LOS ANGELES - A juice maker's California-based headquarters and advertising decisions warrant certifying a nationwide class of consumers under the state's unfair competition law (UCL) Cal. Bus. & Prof. Code § 17200, and other statutes, a federal judge held Sept. 28 (In re: POM Wonderful LLC Marketing and Sales Practices Litigation, No. MDL 2199, ML 10-02199, C.D. Calif.; 2012 U.S. Dist. LEXIS 141150).
SAN FRANCISCO - A federal magistrate judge in California on Oct. 1 granted U.S. Bank National Association ND's (U.S. Bank ND) motion to dismiss a complaint a credit card debtor filed challenging post-judgment interest assessed against him as usurious (Michael A. Carnacchi v. U.S. Bank National Association ND, et al., No. 11-06339, N.D. Calif.; 2012 U.S. Dist. LEXIS 142112).
WORCESTER, Mass. - A woman sufficiently stated claims against GMAC Mortgage LLC for violating Massachusetts General Law Chapter 93A and breaching the implied covenant of good faith and fair dealing when foreclosing on her property before rendering a decision on whether her loan modification application had been approved, a federal judge ruled Oct. 1 in denying in part GMAC's motion to dismiss (Teresita Orozco v. GMAC Mortgage LLC, No. 11-11135-FDS, D. Mass.; 2012 U.S. Dist. LEXIS 141463).
DETROIT - A borrower's failure to take legal action before the expiration of the redemption period on his home after the sale of his home to JP Morgan Chase NA was fatal to his lawsuit challenging the foreclosure, a federal judge in Michigan ruled Oct. 2 (Phillip W. Ellison v. JP Morgan Chase NA, No. 12-12629, E.D. Mich.; 2012 U.S. Dist. LEXIS 142386).
WILMINGTON, Del. - American Capital Ltd., a creditor in the Chapter 11 bankruptcy of AFA Investment Inc. - the maker of the ground beef additive known as "pink slime" - on Oct. 2 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to AFA's proposed global settlement and contending that it is discriminatory (In Re: AFA Investment Inc., No. 12-11127, Chapter 11, D. Del. Bkcy.). Subscribers may view the brief available within the full article.
NEW YORK - Bankrupt Broadview Networks Holdings Inc. on Oct. 1 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that the Bankruptcy Court should confirm its joint plan of reorganization, among other things, on grounds that it complies with the Bankruptcy Code and the objections raised against it are "baseless" (In Re: Broadview Networks Holdings Inc., No. 12-13581, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
NEW YORK - Ally Financial Inc. filed a brief in the U.S. Bankruptcy Court for the Southern District of New York on Sept. 28, objecting to bankrupt Residential Capital's plan to assign certain executor contracts to Nationstar Mortgage LLC (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 - The Third Circuit U.S. Court of Appeals on Sept. 28 ruled 2-1 that there was sufficient evidence for a jury to have concluded that a rival manufacturer violated federal antitrust law by entering into long-term agreements (LTAs) with customers, affirming the U.S. District Court for the District of Delaware's denial of the defendant's renewed motion for judgment as a matter of law or for a new trial (ZF Meritor, LLC, et al. v. Eaton Corporation, Nos. 11-3301, 11-3426, 3rd Cir.; 2012 U.S. App. LEXIS 20342).
WASHINGTON, D.C. - In a suit arising from home mortgage foreclosure proceedings, the District of Columbia Circuit U.S. Court of Appeals on Sept. 28 affirmed the dismissal of an action brought against the Federal Deposit Insurance Corp. as receiver for the failed Washington Mutual Bank (WaMu), agreeing with the underlying ruling that the plaintiff's claims were time-barred (Hussain Kareem v. Federal Deposit Insurance Corp., et al., No.11-5277, D.C. Cir.; 2012 U.S. App. LEXIS 20448).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 1 declined to review a Seventh Circuit U.S. Court of Appeals ruling affirming dismissal of a shareholder lawsuit against an insurance brokerage for failure to plead scienter and reliance (Robert M. Anderson v. Aon Corp., No. 11-1534, U.S. Sup.).
OKLAHOMA CITY - A federal judge in Oklahoma denied a motion to dismiss a shareholder derivative lawsuit on Sept. 28, holding that there is not enough evidence presented to make a determination on whether a board of directors' actions amount to the refusal of a presuit demand (M. Lee Arnold, Derivatively on Behalf of Chesapeake Energy Corporation v. Aubrey K. McClendon, et al., No. 11-cv-00986, W.D. Okla.; 2012 U.S. Dist. LEXIS 140887).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of LightSquared Inc. on Oct. 1 extended the exclusivity period within which the company may file its plan of reorganization as the company continues negotiations with federal officials about the possible expansion of its wireless network, which would help its reorganization efforts (In Re: LightSquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of energy company Dynegy Holdings LLC on Oct. 1 confirmed its reorganization plan (In Re: Dynegy Holdings LLC, No. 11-38111, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.
RUTLAND, Vt. - A federal judge in Vermont on Sept. 27 approved the settlement of a shareholder suit regarding the company's directors' and officers' alleged breaches of fiduciary duties over the sale of a company (Howard Davis v. Central Vermont Public Service Corporation, et al. No. 11-cv-00181, D. Vt.).
WASHINGTON, D.C. - The Judicial Panel on Multidistrict Litigation (JPMDL) on Sept. 28 refused to centralize more than 30 cases filed by borrowers against their mortgage lenders over their force-placed insurance policies after finding that individual issues predominated over common ones (In re: Mortgage Lender Force Placed Insurance Litigation, MDL No. 2388, JMPDL; 2012 U.S. Dist. LEXIS 139738).
DETROIT - A Michigan federal magistrate judge on Oct. 1 ordered Blue Cross Blue Shield of Michigan and two nonparty hospitals to produce documents to the U.S. Department of Justice and the state in an action seeking to enjoin Blue Cross from including "most favored nation" (MFN) clauses in its contracts with hospitals in Michigan (United States of America and the State of Michigan v. Blue Cross Blue Shield of Michigan, No. 10-14155, E.D. Mich.; 2012 U.S. Dist. LEXIS 141355).
NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy proceeding of Dewey & LeBoeuf on Sept. 27 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the law firm's motion seeking approval to pay a bonus to its finance director (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
WASHINGTON, D.C. - The Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau (CFPB) announced Oct. 1 that they have reached a settlement with American Express Centurion Bank, Salt Lake City, Utah, for deceptive debt collection and credit card marketing practices, with the bank agreeing to pay $85 million to more than 250,000 affected consumers and civil money penalties totaling approximately $27 million (In re: American Express Centurion Bank Salt Lake City, Utah, No. FDIC-12-315b, No. FDIC-316k, FDIC; No. 2012-CFPB-002, CFPB).
Follow this link to view a complimentary copy of the complete Mealey's article.
NEW YORK - In what is being called the largest settlement of a credit-crisis-related securities class action lawsuit, Bank of America Corp. (BoA) has agreed to a $2.43 billion settlement on claims that it and certain of its executive officers and directors misrepresented the company's business and financial condition, as well as the business and financial condition of Merrill, Lynch & Co. Inc. prior to BoA's acquisition of Merrill, according to a BoA press release issued Sept. 28 (In re: Bank of America Corp. Securities, Derivative, and ERISA Litigation, No. 09-MDL-2058, S.D. N.Y.).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 1 denied a couple's petition for a writ of certiorari seeking review of a Fifth Circuit U.S. Court of Appeals ruling that affirmed the dismissal of their suit accusing a loan servicer of violating the Real Estate Settlement Procedures Act (RESPA) 12 USCS § 2607. (Jenara Steele, et al. v. Green Tree Servicing LLC, et al., No. 11-1288, U.S. Sup.).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 1 invited U.S. Solicitor General Donald B. Verrilli Jr. to file briefs expressing the views of the U.S. government in three related securities class action lawsuits pertaining to losses sustained in R. Allen Stanford's massive Ponzi scheme (Chadbourne & Parke LLP v. Samuel Troice, et al., No. 12-79, Willis of Colorado Inc. v. Samuel Troice, et al., No. 12-86, Proskauer Rose LLP v. Samuel Troice, et al., No. 12-88, U.S. Sup.).
WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 1 denied certiorari to an insurer that had asked the court to hear its claim that arbitration agreements should be honored in bankruptcy proceedings (Continental Insurance Company v. Thorpe Insulation Company, No. 11-1310, Chapter 11, U.S. Sup.).
ATLANTA - In dismissing an amended shareholder class action and derivative complaint, a federal judge in Georgia on Sept. 26 ruled that a retirement system failed to show any economic loss in making its federal securities law claims against a commercial real estate acquisition and ownership company, certain of its officers and directors and its adviser because the economic loss was suffered by the company and not its shareholders (In re: Wells Real Estate Investment Trust Inc. Securities Litigation, No. 07-862, N.D. Ga.). View related prior history, 2010 U.S. Dist. LEXIS 143057.