SAN FRANCISCO - A federal judge in California on Aug. 28 dismissed without prejudice claims that PayPal Inc. violated federal antitrust law by permanently suspending the accounts of certain dating Websites for violation of its Acceptable Use Policy (AUP) while not suspending the accounts of other similar Websites, but the judge allowed unfair competition and common-law breach claims to continue (Infostream Group, Inc., et al. v. PayPal, Inc., No. C 12-748 SI, N.D. Calif.; 2012 U.S. Dist. LEXIS 122255).
NEW YORK - The Chapter 11 trustee in the bankruptcy proceeding of MF Global Holdings Ltd. (MFGH) on Aug. 29 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing a motion by the trustee in the Securities Investor Protection Act (SIPA) 15 U.S.C.S. § 78aaa, proceeding of MFGH's affiliate, MF Global Inc. (MFGI) (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). View related prior history, 2012 U.S. Dist. LEXIS 58792.
BANGOR, Maine - A Maine federal bankruptcy judge on Aug. 28 denied confirmation of a plan of reorganization which sought the use of self-insurance funds and would impose a self-insurance channeling injunction upon the Maine Self-Insurance Guaranty Association (MSIGA), the Maine Superintendent of Insurance and other state agencies (In re: Irving Tanning Co., et al., No. 10-11757, D. Maine Bkcy.; 2012 Bankr. LEXIS 3960).
DALLAS - A federal judge in Texas on Aug. 28 vacated and remanded a case against Mexican glassmaker Vitro S.A.B. de C.V, ruling that creditors had grounds to file an involuntary Chapter 11 bankruptcy proceeding against it for its failure to pay its debts on time (Knighthead Master Fund LP v. Vitro Packaging LLC [In Re: Vitro Asset Corp.], No. 11-2603,Chapter 11, N.D. Texas). Subscribers may view the opinion available within the full article.
NEW YORK - A group of pilots with American Airlines and the now-defunct Trans World Airlines (TWA) on Aug. 29 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to American's motion seeking authority to rejects its collective bargaining agreements (CBAs) with the pilots (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full article.
NEW YORK - A federal judge in New York on Aug. 29 granted preliminary approval of a $590 million settlement between shareholders, Citigroup Inc. and certain of its current and former executive officers and directors on claims that the defendants misrepresented Citigroup's exposure to billions of dollars of risky collateralized debt obligations that were backed by residential subprime mortgages (In re Citigroup Inc. Securities Litigation, No. 07-9901, S.D. N.Y.).
Follow this link to view a complimentary copy of the complete Mealey's article.
TAMPA, Fla. - A federal judge in Florida on Aug. 29 approved Holland & Knight LLP's agreement to pay $25 million to settle charges brought by the Securities and Exchange Commission that it helped hedge fund manager Arthur Nadel conduct a $168 million Ponzi scheme (Securities and Exchange Commission v. Arthur Nadel, et al., No. 09-00087, M.D. Fla.).
DENVER - A group of former Boeing Co. workers suing on behalf of a class of approximately 700 others failed to prove that widespread age bias was at play when the company that purchased two Boeing sites decided which of Boeing's workforce it would rehire (Perry Apsley, et al. v. The Boeing Company, et al., No. 11-3238, 10th Cir.; 2012 U.S. App. LEXIS 18161).
SAN FRANCISCO - In a suit brought by the Federal Trade Commission, the Ninth Circuit U.S. Court of Appeals on Aug. 28 affirmed the contempt order against an online marketer of prepaid debit cards and short-term loans to consumers in the subprime market (Federal Trade Commission v. EDebitPay LLC, et al., No. 11-55431, 9th Cir.; 2012 U.S. App. LEXIS 18206).
NEW YORK - A federal judge in New York on Aug. 28 denied a motion for reconsideration in a securities class action lawsuit against Bank of America Corp. (BoA) and others, ruling that he had properly determined that shareholders had properly pleaded scienter in making their federal securities law claims against BoA (Pennsylvania Public School Employees' Retirement System v. Bank of America Corp., et al., No. 11-733, S.D. N.Y.). View related prior history, 2012 U.S. Dist. LEXIS 96317.
ATLANTA - A pension fund has properly pleaded scienter on the part of a company's outside auditor, which is alleged to have issued false audit statements concealing the company's involvement in an illegal financial "smoothing" scheme, a federal judge in Georgia ruled Aug. 28 (In re Carter's Inc. Securities Litigation, No. 08-2940, N.D. Ga.; 2012 U.S. Dist. LEXIS 122498).
ATLANTA - A lead plaintiff in a securities class action lawsuit has failed to properly plead any of its federal securities law claims against an office real estate investment trust, a federal judge in Georgia ruled Aug. 27 (In re Piedmont Office Trust Inc. Securities Litigation, No. 07-2660, N.D. Ga.). Subscribers may view the order available within the full article.
CAMDEN, N.J. - A federal judge in New Jersey on Aug. 27 dismissed with prejudice a couple's class action lawsuit against HSBC Mortgage Services Inc. and Mortgage Electronic Systems Inc. (MERS) after finding that their claims should have been raised during an earlier foreclosure action brought by the defendants (Francis Napoli, et al. v. HSBC Mortgage Services Inc., et al., No. 12-CV-222, D. N.J.; 2012 U.S. Dist. LEXIS 121204).
RALEIGH, N.C. - A report issued Aug. 29 by the monitor of the $25 billion National Mortgage Settlement states that the five banks involved in the agreement have reportedly already granted $10.56 billion in relief to consumers in the form of short sales and principal reductions. Subscribers may view the report available within the full article.
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Residential Capital LLC on Aug. 28 denied the company's plan to pay up to $7 million in bonuses to 17 of its senior executives (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the opinion available within the full Mealey's article.
WILMINGTON, Del. - A company and its directors and officers say in their motion to dismiss a shareholder lawsuit on Aug. 28 that the suit should be dismissed because, among other reasons, the shareholder has not specified how many shares of the company she allegedly owns (Joan Litwin, on behalf of herself and all similarly situated shareholders of Human Genome Sciences, Inc. v. Human Genome Sciences, Inc., et al., No. 12-cv-00979, D. Del.). Subscribers may view the brief in support available within the full Mealey's article.
WILMINGTON, Del. - Broadband equipment repair company CHL Ltd., which is controlled by investment funds affiliated with Bain Capital Partners LLC, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Aug. 29 (In Re: CHL Ltd., No. 12-12347, Chapter 11, D. Del. Bkcy.). Subscribers may view the petition available within the full article.
NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy proceeding of Dewey & LeBoeuf on Aug. 29 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion made by retired partners of the law firm who seek the appointment of a trustee or an examiner (In Re: Dewey & LeBoeuf LLP, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the brief available within the full Mealey's article.
SAN FRANCISCO - Consumers in an unfair competition law (UCL) Cal. Bus. & Prof. Code § 17200 class action allege that a cat litter maker made falsifiable claims regarding the odor absorption abilities of the carbon it uses; however, claims that cats prefer it are puffery and not actionable, a California federal judge held Aug. 24 (In re: Clorox Consumer Litigation, Nos. 12-280, 12-764, 12-356, 12-649, 12-1051, N.D. Calif.; 2012 U.S. Dist. LEXIS 120697).
NEW YORK - The Second Circuit U.S. Court of Appeals on Aug. 27 certified two questions to the Connecticut Supreme Court addressing whether consequential damages are available under state law for an insurer's breach of its duty to defend and, if they are, whether the insured may recover damages for harm to reputation and loss of income (Bruce Charles Ryan, et al. v. National Union Fire Insurance Company of Pittsburgh, P.A., et al., Nos. 10-4528-cv(L) and 10-4700-cv(XAP), 2nd Cir.; 2012 U.S. App. LEXIS 18156).
GAINESVILLE, Ga. - In a suit in which a bank that assumed the defendants' loans after the originating bank's failure, a federal judge in Georgia on Aug. 27 partially granted the assuming bank's motion to strike affirmative defenses (Bank of the Ozarks v. 400 South Land Company LLC, et al., No. 11-00129, N.D. Ga.; 2012 U.S. Dist. LEXIS 121306).
LAS VEGAS - A federal judge in Nevada stayed a shareholder derivative lawsuit on Aug. 27, holding that an investigation by a company's board of directors' special litigation committee temporarily takes precedence over the lawsuit (Nasser Moradi, et al. v. Sheldon Gary Adelson, et al., No. 11-cv-00490, D. Nev.; 2012 U.S. Dist. LEXIS 121092).
NEW YORK - A federal judge in New York on Aug. 24 dismissed a majority of claims filed by shareholders in a securities class action lawsuit against a Chinese manufacturer and seller of water treatment products and others for allegedly misrepresenting the company's business and financial condition in violation of federal securities laws (Hoi Ming Michael Ho, et al. v. Duoyuan Global Water Inc., et al., No. 10-7233, S.D. N.Y.; 2012 U.S. Dist. LEXIS 121670).
WILMINGTON, Del. - A federal judge in Delaware on Aug. 28 certified a class for residents of 10 states who claim that ING Bank FSB, d/b/a ING Direct violated the Delaware Consumer Fraud Act by refusing to honor its guarantee that would allow borrowers to renew interest rates for a flat fee of $500 or $750 for the life of their mortgage loans (Johnathan and Trude Yarger, et al. v. ING Bank FSB, d/b/a ING Direct, No. 11-154-LPS, D. Del.). Subscribers may view the order available within the full article.
SAN JOSE, Calif. - A California appeals court on Aug. 27 revived a suit alleging that Comerica Bank purposefully aided a Ponzi scheme, citing the delayed discovery rule to find that a lower court wrongly dismissed the claims as time-barred (Robert Pritikin, et al. v. Comerica Bank, No. H036219, Calif. App., 6th Dist.).