WILMINGTON, Del. - Parties to a shareholder litigation over the sale and merger of a company agreed to the settlement of their suit in a Delaware court on Sept. 25 (In re PAETEC Holding Corp. Shareholders Litigation, No. 6761-VCG, Del. Chanc.).
SAN FRANCISCO - The founder of a get-rich-quick scheme filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of California on Sept. 24, one month after he was fined $478.9 million by federal trade regulators for fraud (In Re: John N. Beck II, No. 12-47882, Chapter 11, N.D. Calif. Bkcy.).
BRIDGEPORT, Conn. - A couple's request to dismiss a foreclosure lawsuit brought by Bank of New York Mellon (BNY Mellon) based on the statute of limitations set forth under Connecticut General Statutes Section 52-588 was dismissed Sept. 25 by a federal judge who found that the argument was premature (The Bank of New York Mellon v. Sonja V. Bell, et al., No. 11-cv-01255-WWE, D. Conn.; 2012 U.S. Dist. LEXIS 136936).
PHILADELPHIA - The Pennsylvania federal judge overseeing the budeprion XL multidistrict litigation on Sept. 20 denied a motion by the Texas attorney general to intervene in an approved class settlement of litigation involving the generic version of Wellbutrin XL antidepressant (In Re: Budeprion XL Marketing & Sales Litigation, MDL Docket No. 2107, No. 09-md-2107, E.D. Pa.; 2012 U.S. Dist. LEXIS 135313).
BOSTON - A 2-1 panel of the First Circuit U.S. Court of Appeals on Sept. 21 overturned a federal judge in Massachusetts' ruling dismissing a class action suit against Bank of America N.A. regarding its decision to thrice purchase a force-placed flood insurance policy for a woman because it is unclear whether the mortgage agreement as well as a Flood Insurance Notification gave the lender the authority to demand increased flood coverage for the policy (Susan Lass v. Bank of America, N.A., et al., No. 11-2037, 1st Cir.; 2012 U.S. App. LEXIS 19937).
HUNTINGTON, W.Va. - A federal judge in West Virginia on Sept. 25 compelled arbitration in a suit in which a consumer alleged that a bank's attempts to collect her credit card debt were illegal, outrageous and an invasion of her privacy, ruling that it is up to an arbitrator, and not the court, to decide whether the arbitration clause in her credit card agreement is unconscionable (Mildred Thornton v. First National Bank Credit Card, et al., No. 12-00492, S.D. W.Va.; 2012 U.S. Dist. LEXIS 136049).
SAN ANTONIO - A federal judge in Texas on Sept. 24 refused to remand a man's suit seeking to prevent him from being evicted from his home following foreclosure after finding that the court retained subject matter jurisdiction over the action despite the entry of an order in state court allowing Deutsche Bank National Trust Co. to initiate foreclosure proceedings (Javier Reyna v. Deutsche Bank National Trust Company, No. 11-CV-1053-FB, W.D. Texas; 2012 U.S. Dist. LEXIS 135882).
BOSTON - A federal judge in Massachusetts on Sept. 21 dismissed with prejudice a putative class action contending that ING Bank FSB violated a state law by requiring mortgage loan borrowers to purchase insurance that is equal to the principal balance on their loans after finding that the claim is preempted by the Homeowners Loan Act (HOLA) (Jonathan Silverstein, et al. v. ING Bank FSB, No. 12-cv-10015-GAO, D. Mass.; 2012 U.S. Dist. LEXIS 135105).
ASHEVILLE, N.C. - In a suit arising out of alleged oral agreements that a bank, which later failed, would provide funding for development on a parcel of property, a federal judge in North Carolina on Sept. 24 granted the motion for judgment on the pleadings filed by the Federal Deposit Insurance Corp. as receiver for the bank, finding that the plaintiffs' claims are barred by 12 U.S.C.S. § 1823(e) (Deerborne Cottages LLC, et al. v. First Bank, et al., No. 11-00178, W.D. N.C.; 2012 U.S. Dist. LEXIS 135938).
NEW YORK - A group of homeowners who obtained mortgages through affiliates of bankrupt Residential Capital LLC on Sept. 21 filed a reply brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that the Bankruptcy Court should appoint an Official Committee of Borrowers pursuant to the Bankruptcy Code because the homeowners in question are "unsophisticated" (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.
WILMINGTON, Del. - International Media Group Inc. (IMG), which initially filed for Chapter 11 bankruptcy, moved in the U.S. Bankruptcy Court for the District of Delaware on Sept. 21 to convert its case to a Chapter 7 bankruptcy (In Re: International Media Group Inc., No. 12-10140, Chapter 11, D. Del. Bkcy.). Subscribers may view the motion available within the full article.
SACRAMENTO, Calif. - The Town of Mammoth Lakes, Calif., which has filed for Chapter 9 bankruptcy, filed a brief on Sept. 21 in the U.S. Bankruptcy Court for the Eastern District of California seeking relief from the automatic stay to finalize a settlement in underlying litigation involving the town (In Re: Town of Mammoth Lakes, California, No. 12-32463, Chapter 9, E.D. Calif. Bkcy.). Subscribers may view the brief available within the full article.
WILMINGTON, Del. - Bankrupt special effects company Digital Domain Media Group Inc., which worked on the Academy-Award-winning "Titanic," on Sept. 23 selected a bid of $36.7 million for its assets (In Re: Digital Domain Media Group Inc., No. 12-12568, Chapter 11, D. Del. Bkcy.). Subscribers may view the notice available within the full article.
BOSTON - A 2-1 panel of the First Circuit U.S. Court of Appeals on Sept. 21 reversed the dismissal of a class action lawsuit brought against Bank of America N.A. over the lender's ability to require borrowers to increase the amount of flood insurance they carry on their homes after finding that there is ambiguity in a paragraph of the mortgage agreement on the topic of hazard insurance (Stanley Kolbe v. BAC Home Loans Servicing, L.P., et al., No. 11-2030, 1st Cir.; 2012 U.S. App. LEXIS 19935).
LAS VEGAS - A federal judge in Nevada on Sept. 21 declined to dismiss a putative class action arising from a bank's alleged violation of ATM fee notice regulations, finding that a complaint contains sufficient facts to establish that the bank's violation of the Electronic Fund Transfer Act (EFTA) 15 U.S.C.S. § 1601 , is plausible and that the bank's attempt to rely on a safe harbor provision defense fails (Donald C. Thomas v. City National Bank, No. 11-01758, D. Nev.; 2012 U.S. Dist. LEXIS 135192).
NEW YORK - A consumer who alleged that a New York City provider of electricity-generating capacity violated antitrust laws by engaging in a swap transaction lacks antitrust standing because he was an indirect purchaser, and his claims are otherwise barred by the filed-rate doctrine, the Second Circuit U.S. Court of Appeals affirmed Sept. 20 (Charles Simon v. KeySpan Corporation, et al., No. 11-2265, 2nd Cir.; 2012 U.S. App. LEXIS 19815).
FORT MYERS, Fla. - A federal judge in Florida on Sept. 20 denied the motion for summary judgment filed by the purported holder of a student loan note against a student loan debtor, ruling that the purported holder did not show that the loan was assigned from a bank to the Student Loan Marketing Association (Sallie Mae) prior to an assignment from Sallie Mae to the purported holder (HICA Education Loan Corp. v. Tomas Perez, No. 11-00711, M.D. Fla.; 2012 U.S. Dist. LEXIS 134872).
NEW YORK - The Chapter 11 trustee in the bankruptcy of MF Global Holdings Ltd. (MFGH) on Sept. 21 filed a complaint in the U.S. Bankruptcy Court for the Southern District of New York against a commodities trading company with which MFGH had a creditor agreement, alleging that the trading company owes MFGH more than $8.3 million (Louis J. Freeh v. Breakwater Trading LLC [In Re: MF Global Holdings Ltd.], No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the complaint available within the full article.
ATWATER, Calif. - The Atwater City Council on Sept. 19 issued a report in which it recommended that the city manager declare a fiscal emergency pursuant to state code in order to prepare the way for the municipality to file a Chapter 9 bankruptcy petition.
SAN FRANCISCO - A federal judge in California on Sept. 20 sentenced Taiwan-based AU Optronics Corp. (AUO) to pay a $500 million criminal fine for engaging in a global conspiracy to fix worldwide prices of thin-film transistor-liquid crystal display panels for use in computer monitors and televisions in violation of Section 1 of the Sherman Act, 15 U.S.C.S. § 1 et seq. (United States of America v. AU Optronics Corp., et al., No. 09-cv-0110 SI, N.D. Calif.). View related prior history, 2012 U.S. Dist. LEXIS 80605.
WASHINGTON, D.C. - Three state attorneys general have joined a lawsuit challenging the constitutionality of provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, 124 Stat. 1376, according to an amended complaint filed Sept. 20 in Washington federal court (State National Bank of Big Spring, et al. v. Timothy Geithner, et al., No. 12-1032, D. D.C.).
DENVER - A federal judge in Colorado on Sept. 20 granted in part and denied in part an attorney's request for fees for work done in a Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq., lawsuit against a debt collector, ruling that although the amount sought and the number of hours provided are excessive, the attorney is entitled to $1,900 in fees (Doetta Livingston v. Midland Credit Management Inc., No. 11-2775, D. Colo.; 2012 U.S. Dist. LEXIS 134633).
WASHINGTON, D.C. - A federal judge in Washington on Sept. 20 dismissed former Fannie Mae CEO Franklin D. Raines from a securities fraud suit, ruling that the plaintiffs offered no evidence that Raines knew that the company had overstated its profits by $6.3 billion between 2001 and 2004 (In Re: Fannie Mae Securities Litigation, No. 04-01639, Dist. D.C.). View related prior history, 2009 U.S. App. LEXIS 9.
PHOENIX - A federal judge in Arizona on Sept. 19 dismissed a consumer's Fair Debt Collection Practices Act (FDCPA) 15 U.S.C.S. §§1692 et seq.,complaint against a debt collector, ruling that judgments in two substantially similar suits bar the claims in the instant action under res judicata (Sol Jaffe v. Cardworks Servicing LLC, No. 12-1058, D. Ariz.; 2012 U.S. Dist. LEXIS 133743).
NEW YORK - A federal judge in New York on Sept. 19 issued an order dismissing claims for negligent misrepresentation against rating agencies in a securities class action lawsuit after investors withdrew the claims in light of a recent Second Circuit U.S. Court of Appeals ruling (Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., Inc., et al., No. 08-7508, S.D. N.Y.). View related prior history, 2012 U.S. Dist. LEXIS 119671.