NEW YORK - A commodities broker that had a credit agreement with bankrupt MF Global Inc. (MFGI) filed an adversary proceeding against the liquidating trustee of MFGI in the U.S. Bankruptcy Court for the Southern District of New York, seeking declaratory judgment that the company has no liability related to MFGI's bankruptcy (Koch Supply & Trading & Supply v. James W. Giddens $(In Re: MF Global Inc.$), No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the complaint available within the full Mealey's article.
WASHINGTON, D.C. - Capital One Financial Corp. on July 18 reached a $210 million settlement with the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) over its allegedly deceptive credit card marketing, according to documents filed with both agencies (No. 2012-CFPB-0001, CFPB; No. 2012-152, OCC).
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NEW YORK - Lead plaintiffs in a securities class action lawsuit against Goldman Sachs & Co. Inc., certain of its subsidiaries and officers and directors and three ratings agencies have agreed to settle their claims against the defendants, according to a letter sent July 18 to the federal judge in New York overseeing the lawsuit (Public Employees' Retirement System of Mississippi v. Goldman Sachs Group, Inc., et al., No. 09-1110, S.D. N.Y.).
SAN BERNARDINO, Calif. - The San Bernardino City Council on July 18 voted 5-2 to declare a fiscal emergency, which allows it to file Chapter 9 bankruptcy without first negotiating with its creditors. City officials said they expect to file a petition in the next 30 days.
ATLANTA - The 11th Circuit U.S. Court of Appeals on July 18 overturned the dismissal of a suit arising from American Home Mortgage Servicing Inc.'s (American) alleged harassing phone calls and home inspections, finding that American may be held liable under the Fair Debt Collection Practices Act (FDCPA) even if it was attempting to enforce a security interest (Angela Birster, et al., v. American Home Mortgage Servicing Inc., No. 11-13574, 11th Cir.; 2012 U.S. App. LEXIS 14660).
SAN FRANCISCO - A California appeals panel on July 16 affirmed a lower court's ruling that a directors and officers insurer has a duty to defend its insured against an underlying class action lawsuit alleging state and federal securities laws violations (Prosper Marketplace Inc. v. Greenwich Insurance Company, No. A132967, Calif. App., 1st Dist., Div. 5; 2012 Cal. App. Unpub. LEXIS 5213).
WASHINGTON, D.C. - The U.S. investment banking subsidiary of Japan-based Mizuho Financial Group will pay $127.5 million to settle claims that it provided "dummy assets" to a ratings agency "that inaccurately reflected the collateral held" by a hybrid collateralized debt obligation (CDO) Mizuho structured, marketed and rated in violation of federal securities law, according to a press release filed by the SEC on July 18 (U.S. Securities and Exchange Commission v. Mizuho Securities USA, Inc., S.D. N.Y.).
SAN DIEGO - A woman's claim that she purchased products based on a retailer's allegedly false representations that it discounted the prices constitutes an injury and provides standing under the California unfair competition law (UCL), Cal. Bus. & Prof. Code § 17200, a federal judge held July 16 (Cynthia E. Spann, et al. v. J.C. Penney Corp., No. 12-00215, C.D. Calif.).
NEW YORK - The U.S. trustee appointed in the Chapter 11 bankruptcy of law firm Dewey & Leboeuf on July 18 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing the firm's motion seeking approval of its plan to pay bonuses to its employees (In Re: Dewey & Leboeuf LLP, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the available within the full Mealey's article.
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Eastman Kodak Co. on July 18 appointed a separate committee under 11 U.S.C.S. § 1114 to oversee the rights of retirees with respect to their benefits and ruled that Kodak preserved its right to "unilaterally" modify the benefits it pays to retired employees (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). View related prior history, 2012 Bankr. LEXIS 2944.
PHILADELPHIA - A shareholder on July 16 asked a Pennsylvania federal court to approve a settlement between the shareholder and directors and officers of a company that includes an agreement to release supplemental disclosures to the Securities and Exchange Commission (Adolphina Van Barel v. Antony Koblish, et al., No. 11-cv-03652, E.D. Pa.). Subscribers may view the brief available within the full Mealey's article.
NEW YORK - Bank of America Corp. and its Countrywide Home Loans Inc. affiliate will pay $375 million to a financial guarantee insurer to settle claims that Countrywide misrepresented the standards used in underwriting mortgage loans that served as the basis for five securitizations of mortgage-backed securities, according to a press release issued on July 17 (Syncora Guarantee Inc. v. Countrywide Home Loans Inc., No. 650042/2009, N.Y. Sup., New York Co.).
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PORTLAND, Maine - A Maine federal judge on July 17 certified three classes of plaintiffs who allege that two companies' check verification and collection procedures violate federal and state statutes regulating debt collection and unfair trade practices (Jean LaRocque, et al. v. TRS Recovery Services, Inc., et al., No. 2:11-CV-91-DBH, D. Maine; 2012 U.S. Dist. LEXIS 98955).
ST. LOUIS - Ruling on a consolidated appeal of three actions, the Eighth Circuit U.S. Court of Appeals on July 17 affirmed the dismissal of claims that three Missouri credit unions, by participating in a subprime motor vehicle lending and investment program, violated Missouri law (Michael J. Knight v. Central Communications Credit Union, No. 11-2329; Bernard W. Moran v. Missouri Central Credit Union, No. 11-2331, 8th Cir.; 2012 U.S. App. LEXIS 14589).
SACRAMENTO, Calif. - A federal judge in California on July 16 partially granted JP Morgan Chase Bank NA's motion to dismiss a suit filed against it arising from a home foreclosure instituted after it acquired a loan from the failed Washington Mutual Bank (WaMu) (Chris R. Longhurst v. JP Morgan Chase Bank NA, No. 11-02604, E.D. Calif.; 2012 U.S. Dist. LEXIS 98526).
SAN FRANCISCO - A California federal judge on July 16 certified only two of a sales employee's class claims alleging that his employer failed to properly calculate the compensation of its workers ( National Seating & Mobility, Inc. v. Michael Parry, et al., No. 10-2782, N.D. Calif.; 2012 U.S. Dist. LEXIS 98384).
TRENTON, N.J. - A federal judge in New Jersey on July 16 preliminarily approved the settlement of a shareholder derivative lawsuit brought against directors and officers of Johnson & Johnson, which includes the implementation of certain corporate governance changes related to regulatory compliance (M.J. Copeland, et al. v. Charles O. Prince III, et al., No. 11-cv-04993, D. N.J.). Subscribers may view the order available within the full article.
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Ritz Camera & Image LLC on July 17 approved post-petition financing up to $20 million (In Re: Ritz Camera & Image LLC, No. 12-11868, Chapter 11, D. Del. Bkcy.). Subscribers may view the order available within the full article.
LOS ANGELES - A shareholder asked a federal court in California on July 16 to preliminarily approve a settlement with a company's directors and officers in which new corporate governance provisions are created to assure that the company will accurately report its financial results (Benjamin L. Padnos v. Xiqun Yu, et al., No. 11-cv-08973, C.D. Calif.). Subscribers may view the brief in support of preliminary approval of settlement available within the full article.
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 15 proceeding of ice distributor Arctic Glacier International Inc. on July 17 authorized its asset sale to HIG Zamboni LLC for $435 million (In Re: Arctic Glacier International Inc., No. 12-10605, Chapter 15, D. Del. Bkcy.). Subscribers may view the order available within the full article.
NEW YORK - Dismissal of lead plaintiffs' federal securities law claims against a subsidiary of Morgan Stanley and others is not proper because the claims were brought within the statute of limitations, a federal judge in New York ruled July 16 (In re Morgan Stanley Mortgage Pass-Through Certificates Litigation, No. 09-4414, S.D. N.Y.). Subscribers may view the memorandum order available within the full article.
PHILADELPHIA - Settlements involving a reverse payment from a name-brand manufacturer to a generic challenger to delay the entry date for marketing a generic drug are subject to the rule-of-reason test and not the scope-of-the-patent test, the Third Circuit U.S. Court of Appeals ruled July 16, saying that a reverse payment is prima facie evidence of an unreasonable restraint of trade (Louisiana Wholesale Drug Co., Inc., et al., No. 10-2077; CVS Pharmacy Inc., et al., No. 2078; Walgreen Co., et al., No. 10-2079; Merck & Co., Inc., et al., No. 10-4571, 3rd Cir.; 2012 U.S. App. LEXIS 14527).
DENVER - The 10th Circuit U.S. Court of Appeals on July 16 affirmed a district court's grant of summary judgment in favor of law firm defendants in a suit alleging intentional interference with contractual relations and civil conspiracy related to a Ponzi scheme (KT Group LLC v. Christensen, Glaser, Fink, Jacobs, Weil & Shapiro LLP, et al., No. 10-4194, 10th Cir.; 2012 U.S. App. LEXIS 14545).
SALT LAKE CITY - Novell Inc. failed to present evidence sufficient for a jury to find that Microsoft Corp. unlawfully used its dominant position in the personal computing (PC) operating systems market to monopolize the word-processing and spreadsheet applications markets, a federal judge in Utah held July 16 in granting Microsoft's renewed motion for judgment as a matter of law (Novell, Inc. v. Microsoft Corp., No. 2:04-cv-01045, D. Utah). View related prior history, 2011 U.S. App. LEXIS 9062.
MIAMI - Bank of Oklahoma NA (BOK) has agreed to pay $19 million to settle claims in a multidistrict litigation alleging that it was one of many banks that improperly collected overdraft fees from its customers, according to documents the plaintiffs filed July 16 in a Florida federal court (In Re: Checking Account Overdraft Litigation, No. 09-md-2036, S.D. Fla.). View related prior history, 2012 U.S. Dist. LEXIS 56115.