LAS VEGAS - A federal judge in Nevada on Sept. 17 granted summary judgment to the Federal Deposit Insurance Corp. in a suit in which the FDIC, as the receiver for a failed bank, alleged that the defendants defaulted on a $2 million loan, dismissing the defendants' contentions that the FDIC did not show that Nevada closed the bank or that it appointed the FDIC as receiver (Federal Deposit Insurance Corp. v. CBC Financial Corp., et al., No. 11-00297, D. Nev.; 2012 U.S. Dist. LEXIS 133069).
DETROIT - A drainage district lacks standing to assert antitrust, Racketeer Influenced and Corrupt Organizations Act., 18 U.S.C.S. §§ 1961 et seq., and state noncontractual claims against former Detroit Mayor Kwame Kilpatrick and others on allegations that the defendants conspired to overcharge the Detroit Water and Sewerage Department (DWSD) for repairing a sewer collapse, a federal judge in Michigan ruled Sept. 17, finding that the district was an indirect purchaser (Macomb Interceptor Drain Drainage District, et al. v. Kwame Kilpatrick, et al., No.11-13101, E.D. Mich.; 2012 U.S. Dist. LEXIS 132395).
WATERLOO, Iowa - Russell R. Wasendorf Jr., the son of former Peregrine Financial Group CEO Russell R. Wasendorf Sr., on Sept. 19 sued U.S. Bank in an Iowa state court, alleging that it committed fraud by not fulfilling its fiduciary duty to inform Peregrine that it was comingling customer funds with other money used for running the company (Russell R. Wasendorf Jr. v. U.S. Bank, No. LACV119935, Iowa Dist., Black Hawk Co.). Subscribers may view the complaint available within the full article.
WASHINGTON, D.C. - A federal judge in Washington on Sept. 17 denied the U.S. government's motion for reconsideration of a July ruling granting in part and denying in part the government's motion to dismiss a shareholder class action and derivative amended complaint challenging the government's takeover of American International Group Inc. (AIG) during the financial crisis (Starr International Co. Inc. v. The United States, et al., No. 11-779, Fed. Clms.).
SAN FRANCISCO - A man may amend his California unfair competition law (UCL) unlawful-prong action against his lenders who allegedly failed to provide due diligence, but the remainder of his claims lack sufficient particularity, a federal judge held Sept. 17 (John Avila v. Wells Fargo Bank, et al., No. 12-1237, N.D. Calif.; 2012 U.S. Dist. LEXIS 132499).
SAN FRANCISCO - Loan documents a couple attached as evidence of fraud in their California unfair competition law (UCL) action lay out the precise terms of the loan they received, a federal judge held Sept. 17 in dismissing the claims (Rosa M Villegas and Gerardo Chavez v. Wells Fargo Bank N.A. and DOES 1-20, inclusive, No. 12-2004, N.D. Calif.; 2012 U.S. Dist. LEXIS 132511).
CHICAGO - A federal judge in Illinois on Sept. 19 declined to dismiss a consumer's Fair Credit Reporting Act (FCRA) lawsuit against Chase Bank USA N.A., ruling only that the motion is "taken under advisement pending a hearing" (Kent v. Chase Bank USA N.A., No. 12-1411, N.D. Ill.; 2012 U.S. Dist. LEXIS 133579).
SAN JUAN, Puerto Rico - Humana Health of Puerto Rico Inc., a health insurer, sufficiently alleged that eight physicians violated federal and state antitrust laws by price-fixing, a federal judge in Puerto Rico ruled Sept. 17 in denying the physicians' motion to dismiss (Humana Health of Puerto Rico, Inc. v. Juan L. Vilaro, et al., No. 12-1445, D. Puerto Rico). Subscribers may view the opinion available within the full article.
NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Sept. 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that its settlement and release plan for the firm's partners meets federal bankruptcy standards (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
SAN FRANCISCO - A California federal magistrate judge on Sept. 18 granted dismissal of unregistered trademark dilution and common-law trademark infringement claims but will allow a pro se plaintiff leave to amend his complaint (Akeem O. Brown v. Shawn David Green et al., No. 12-2113, N.D. Calif.). Subscribers may view the order available within the full article.
CHICAGO - A federal judge in Illinois on Sept. 17 granted a bank and an ATM owner and operator's motion for summary judgment in a putative class action that alleges that the defendants violated the Electronic Funds Transfer Act's (EFTA) 15 U.S.C.S. § 1601 , ATM fee notice requirements, ruling that the evidence shows that the owner and operator posted a fee notice and that it was not removed by an employee of the owner and operator or bank (Hank Drager v. Bridgeview Bank, No. 10-07585, N.D. Ill.; 2012 U.S. Dist. LEXIS 132584).
PHILADELPHIA - A federal judge in Pennsylvania on Sept. 14 declined to reconsider or to certify for interlocutory appeal his ruling declining to dismiss allegations by a developer of technology used to locate mobile handsets that three corporate members of a standard-setting organization (SSO) engaged in a conspiracy to exclude the developer's technology from the SSO's standard (TruePosition, Inc. v. LM Ericsson Telephone Company, et al., No. 11-4574, E.D. Pa.; 2012 U.S. Dist. LEXIS 131453).
KANSAS CITY, Kan. - Consumers in a class action lawsuit have failed to show that a debt collector violated state or federal debt collection laws by collecting an interest rate higher than allowed under state law because the controlling statute allows for such action, a federal judge in Kansas ruled Sept. 18 (Donald M. Browning, et al. v. Cohen, McNeile & Pappas P.C., No. 11-2611, D. Kan.; 2012 U.S. Dist. LEXIS 132714).
SAN JOSE, Calif. - A federal judge in California on Sept. 17 granted JP Morgan Chase Bank NA's motion to dismiss a wrongful foreclosure suit brought by a borrower who originally took out his more than $1.2 million loan with the failed Washington Mutual Bank (WaMu), refuting the borrower's argument that Chase did not require any rights regarding the loan when it purchased Chase's assets (Angel S. Lomely v. JP Morgan Chase Bank NA, No. 12-01194, N.D. Calif.; 2012 U.S. Dist. LEXIS 132599).
NEW YORK - JPMorgan Chase Bank, as collateral agent in the Chapter 11 bankruptcy of law firm Dewey & LeBoeuf, on Sept. 18 filed a statement in the U.S Bankruptcy Court for the Southern District of New York supporting the law firm's partner contribution settlement agreement (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the statement available within the full article.
WILMINGTON, Del. - Bankrupt AFA Investment Inc., the makers of so-called "pink slime," which is added to ground beef, on Sept. 18 moved in the U.S. Bankruptcy Court for the District of Delaware for authorization of a global settlement (In Re: AFA Investment Inc., No. 12-11127, Chapter 11, D. Del. Bkcy.). Subscribers may view the settlement available within the full article.
NEW YORK - A New York federal judge on Sept. 17 certified a class of stockholders who claim that their share values dropped because Wyeth failed to disclose that its Pristiq menopause drug had serious cardiovascular and liver adverse effects (City of Livonia Employees' Retirement System v. Wyeth, et al., No. 1:07-10329, S.D. N.Y.). View related prior history, 2010 U.S. Dist. LEXIS 107729.
TAMPA, Fla. - Dismissal of a consumer's state debt collection statute claims against Target Corp. is proper because those claims are preempted by the Fair Credit Reporting Act (FCRA), a federal judge in Florida ruled Sept. 14 in granting in part and denying in part Target's motion to dismiss (David Bauer v. Target Corp., No. 12-978, M.D. Fla.; 2012 U.S. Dist. LEXIS 131845).
SEATTLE - Student loan borrowers and a subsidiary of SLM Corp. on Sept. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C.S. § 227, by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular telephones in an attempt to collect on outstanding student loan debt, according to documents filed in a Washington federal court (Mark A. Arthur, et al. v. Sallie Mae Inc., No. 10-0198, W.D. Wash.).
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FORT LAUDERDALE, Fla. - The trustee for a bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W. Rothstein's law firm have agreed to an amended $65 million settlement with Gibraltar Private Bank and Trust Co., a bank Rothstein is alleged to have used in his scam, according to a document the trustees filed Sept. 17 in a Florida bankruptcy court (In re: Banyon 1030-32 LLC, No. 10-bk-33691, Chapter 7, S.D. Fla. Bkcy.).
JEFFERSON CITY, Mo. - In a suit arising from an alleged embezzlement scheme, a federal judge in Missouri on Sept. 17 denied the motion to dismiss filed by the Federal Deposit Insurance Corp., as receiver for a failed bank, and instead granted the plaintiff's request to remand the action to a state court (Danner Construction LLC v. Daniel R. Bebermeyer, et al., No. 12-04076, W.D. Mo.; 2012 U.S. Dist. LEXIS 132336).
DENVER - A shareholder has failed to plead any material misrepresentations in making his state and federal securities law claims against a company, a federal judge in Colorado ruled Sept. 17 in dismissing the shareholder's first amended complaint (Mark Chipman v. AspenBio Pharma Inc., No. 11-0163, D. Colo.; 2012 U.S. Dist. LEXIS 131997).
WATERLOO, Iowa - The U.S. government on Sept. 17 moved in the U.S. District Court for the Northern District of Iowa to detain CEO of bankrupt Peregrine Financial Group Russell Wasendorf Sr. pending his sentencing for fraud and embezzlement (USA v. Russell Wasendorf Sr., No 12-2021, N.D. Iowa). Subscribers may view the decision available within the full article.
CINCINNATI - Deeming a dispute between the creators of two energy shots a "close call" that could "be decided either way," the Sixth Circuit U.S. Court of Appeals on Sept. 13 nonetheless reversed a Michigan federal judge's dismissal of trademark infringement and false advertising claims (Innovation Ventures LLC d/b/a Living Essentials v. N.V.E. Inc., Nos. 10-2353, 2355, 6th Cir.). Subscribers may view the decision available within the full article.
LOS ANGELES - A shareholder asked a California federal court on Sept. 14 to give its final approval to the settlement of a shareholder derivative lawsuit that implements certain corporate governance provisions to the company's operations (Benjamin L. Padnos v. Xiqun Yu, et al., No. 11-cv-08973, C.D. Calif.). Subscribers may view the brief available within the full article.