LexisNexis® Legal Newsroom
Mealey's Insurance - Untimely Notice Precludes Contribution Claims Against Insurer, Appeals Panel Says

CHICAGO - An additional insured's untimely notice of an underlying negligence lawsuit bars coverage under an insurance policy, an Illinois appeals panel held Feb. 16, affirming summary judgment for the insurer on contribution claims asserted by another insurer that settled on behalf of the additional insured (AMCO Insurance Co. v. Erie Insurance Exchange, No. 11 CH 41151, Ill. App., 1st Dist., Div. 1; 2016 Ill. App. LEXIS 68).

Mealey's Labor & Employment - Judge Refuses To Dismiss All Misconduct Claims Against Insurer In Coverage Dispute

CHICAGO - An Illinois federal judge on Feb. 12 held that although an insurer's failure to provide independent counsel in an underlying wrongful termination dispute does not constitute vexatious or unreasonable conduct, the insured's remaining allegations of misconduct by the insurer are sufficiently supported by the facts (DHR International, Inc. v. Travelers Casualty and Surety Company of America, No. 15 C 4880, N.D. Ill.; 2016 U.S. Dist. LEXIS 17719).

Mealey's Insurance - Judge Refuses To Dismiss All Misconduct Claims Against Insurer In Coverage Dispute

CHICAGO - An Illinois federal judge on Feb. 12 held that although an insurer's failure to provide independent counsel in an underlying wrongful termination dispute does not constitute vexatious or unreasonable conduct, the insured's remaining allegations of misconduct by the insurer are sufficiently supported by the facts (DHR International, Inc. v. Travelers Casualty and Surety Company of America, No. 15 C 4880, N.D. Ill.; 2016 U.S. Dist. LEXIS 17719).

Mealey's Banking & Finance - Judge: Claim For Failure To Provide Disclosure Under FDCPA Can Proceed

ROCKFORD, Ill. - An Illinois federal judge on Feb. 16 denied a property company's motion to dismiss claims against it for violation of the Fair Debt Collection Practices Act (FDCPA), allowing property owners' claims that it violated the FDCPA by failing to disclose that it was attempting to collect debt to proceed (Andrew Schlaf, et al. v. Safeguard Properties LLC, No. 15-50113, N.D. Ill.; 2016 U.S. Dist. LEXIS 18531).

Mealey's Bankruptcy - Stay Lifted In Budd Co. Case To Allow Asbestos Actions To Proceed

CHICAGO - An Illinois federal bankruptcy judge on Feb. 11 modified the automatic stay in the Chapter 11 case of The Budd Co. Inc. so 123 asbestos claimants can pursue their claims against Budd in the tort system; however, the bankruptcy judge then stayed his order to allow Budd to file arguments regarding the current state of its insurance coverage (In re: The Budd Company, Inc., No. 14-11873, N.D. Ill. Bkcy.).

Mealey's Securities/D&O Liability - Man Convicted Of Commodity Fraud, Spoofing By Computer Seeks Acquittal, New Trial

CHICAGO - A man who was found guilty of 12 counts of commodity fraud and spoofing by creating computer programs to engage in fraudulent trading argues in a Feb. 12 filing in Illinois federal court that the government failed to establish fraud under the untested statutes on which his indictment and conviction were based (United States of America v. Michael Coscia, No. 1:14-cr-00551, N.D. Ill.).

Mealey's IP/Tech - Man Convicted Of Commodity Fraud, Spoofing By Computer Seeks Acquittal, New Trial

CHICAGO - A man who was found guilty of 12 counts of commodity fraud and spoofing by creating computer programs to engage in fraudulent trading argues in a Feb. 12 filing in Illinois federal court that the government failed to establish fraud under the untested statutes on which his indictment and conviction were based (United States of America v. Michael Coscia, No. 1:14-cr-00551, N.D. Ill.).

Mealey's PI/Product Liability - No Clear Evidence FDA Would Reject New Paxil Suicide Warning, Judge Says

CHICAGO - An Illinois federal judge on Feb. 11 said GlaxoSmithKline PLC (GSK) has not presented "clear evidence" that the Food and Drug Administration would have rejected a stronger adult suicide warning for the antidepressant drug Paxil (Wendy B. Dolin, et al. v. SmithKline Beecham Corporation, et al., No. 12-6403, N.D. Ill., Eastern Div.).

Mealey's Toxic Tort/Environmental - Groundwater Contamination Case Dismissed For Lack Of Specifics, Judge Says

CHICAGO - A federal judge in Illinois on Feb. 10 dismissed a complaint filed by the City of Evanston, Ill., against two energy companies for allegedly contaminating groundwater by improperly disposing of solid waste, ruling that the city's notice of intent to sue the companies was not specific enough to indicate the nature of the charges against them (Northern Illinois Gas Company v. City of Evanston, Ill. and City of Evanston, Ill. v. Northern Illinois Gas Company, No. 14-9227, N.D. Ill.; 2016 U.S. Dist. LEXIS 16331).

Mealey's Insurance - Judge: Subrogated Insurer's Breach Of Contract, Negligence Lawsuit Is Time-Barred

BENTON, Ill. - A four-year statute of limitations precludes a subrogated insurer's negligence and breach of contract lawsuit regarding an allegedly defective sprinkler system, an Illinois federal judge ruled Feb. 9, granting summary judgment to a contractor (Cincinnati Insurance Co., as subrogee of Richland Memorial Hospital, Inc. v. Tri-State Fire Protection, Inc., No. 14-86, S.D. Ill.; 2016 U.S. Dist. LEXIS 15711).

Mealey's IP/Tech - Magistrate Finds No Evidence Doe Defendant Downloaded Copyrighted Adult Films

CHICAGO - An adult entertainment firm failed to provide evidence that an accused defendant downloaded and shared 24 of its copyrighted movies, an Illinois federal magistrate judge ruled Feb. 8, granting the defendant's motion for summary judgment (Malibu Media LLC v. John Doe, No. 1:13-cv-06312, N.D. Ill.; 2016 U.S. Dist. LEXIS 14798).

Mealey's Securities/D&O Liability - Morgan Stanley To Pay $3.2B To Settle Mortgage-Backed Securities Claims

WASHINGTON, D.C. - Morgan Stanley will pay $3.2 billion to settle claims with the U.S. Department of Justice and other members of President Barack Obama's Financial Fraud Enforcement Task Force's RMBS Working Group over its marketing, sale and issuance of residential mortgage-backed securities (RMBS), according to press releases and settlement agreements released Feb. 11 by the Justice Department and the state attorneys general of New York and Illinois.

Mealey's Insurance - Judge Dismisses Insureds' Claim For Damages Under Illinois Insurance Code

CHICAGO - Insureds failed to assert a claim for damages under Section 155 of the Illinois Insurance Code for an insurer's refusal to provide coverage for water damage, an Illinois federal judge ruled Feb. 8, dismissing the claim (9557, LLC and River West Meeting Associates, Inc. v. Travelers Indemnity Company of Connecticut, No. 15-10882, N.D. Ill.; 2016 U.S. Dist. LEXIS 15147).

Mealey's Litigation Procedure - Judge Orders Sprint To Provide Subscriber Info In Yahoo TCPA Class Action

CHICAGO - A month after certifying a class action against Yahoo! Inc. for allegedly violating the Telephone Consumer Protection Act (TCPA) via unsolicited text messages, an Illinois federal judge on Feb. 4 granted a motion to compel cellular service provider Sprint to provide subscriber information for purposes of class notification (Rachel Johnson v. Yahoo! Inc., No. 1:14-cv-02028, and Zenaida Calderin v. Yahoo! Inc., No. 1:14-cv-02753, N.D. Ill.).

Mealey's Insurance - Insurer Has No Duty To Defend 5 Claims Filed Against Insured, Federal Judge Says

SEATTLE - A Washington federal judge on Feb. 3 granted an insurer's motion for reconsideration and determined that the insurer has no duty to defend additional environmental claims based on evidence that was unavailable when the parties originally filed motions for summary judgment (The Jorgensen Forge Corp. v. Illinois Union Insurance Co., No. 13-1458, W.D. Wash.; 2016 U.S. Dist. LEXIS 13128).

Mealey's IP/Tech - Judge Orders Sprint To Provide Subscriber Info In Yahoo TCPA Class Action

CHICAGO - A month after certifying a class action against Yahoo! Inc. for allegedly violating the Telephone Consumer Protection Act (TCPA) via unsolicited text messages, an Illinois federal judge on Feb. 4 granted a motion to compel cellular service provider Sprint to provide subscriber information for purposes of class notification (Rachel Johnson v. Yahoo! Inc., No. 1:14-cv-02028, and Zenaida Calderin v. Yahoo! Inc., No. 1:14-cv-02753, N.D. Ill.).

Mealey's IP/Tech - Lanham Act Dispute Over Hacky Sack Claims Dismissed

CHICAGO - Citing the "farcical nature" of a television commercial for the popular 5-Hour Energy drink, an Illinois federal judge on Feb. 1 dismissed allegations of false advertising and invasion of privacy levied against the drink maker (Johannes T. Martin v. Living Essentials LLC, No. 15-1647, N.D. Ill.; 2016 U.S. Dist. LEXIS 11287).

Mealey's IP/Tech - 7th Circuit Affirms Preclusion Ruling In Franchise, Trademark Case

CHICAGO - A twice final, unappealed judgment in a Lanham Act case bars any claim for violations of the Illinois Franchise Disclosure Act (IFDA) in a subsequent action, the Seventh Circuit U.S. Court of Appeals ruled Jan. 27 (Window World of Chicagoland LLC and David Hampton v. Window World Inc., No. 5-2224, 7th Cir.; 2016 U.S. App. LEXIS 1255).

Mealey's Litigation Procedure - MDL Judge Preliminarily Approves Revised Class Settlement With College Athletes

CHICAGO - A federal judge in Illinois on Jan. 26 granted preliminary approval to a revised settlement agreement with modifications and conditionally certified a proposed class of current and former college athletes who filed suit against the National Collegiate Athletic Association for allegedly understating the seriousness of concussions and not treating them correctly (In Re: National Collegiate Athletic Association Student-Athlete Concussion Injury Litigation, MDL No. 2492, N.D. Ill.; 2016 U.S. Dist. LEXIS 8595).

Mealey's Insurance - Judge Denies Motion To Dismiss Indictments For Misapplying Insurance Proceeds

PEORIA, Ill. - A federal judge in Illinois on Jan. 28 denied a woman's motion to dismiss her indictments for mail fraud and misapplication and theft in connection with health care, finding that her receipt of insurance checks was part of her scheme to defraud insurance companies as well as the dental practice where she worked (United States of America v. Constance Gustafson, No. 15-cr-10043, C.D. Ill.; 2016 U.S. Dist. LEXIS 9949).

Mealey's PI/Product Liability - MDL Judge Preliminarily Approves Revised Class Settlement With College Athletes

CHICAGO - A federal judge in Illinois on Jan. 26 granted preliminary approval to a revised settlement agreement with modifications and conditionally certified a proposed class of current and former college athletes who filed suit against the National Collegiate Athletic Association for allegedly understating the seriousness of concussions and not treating them correctly (In Re: National Collegiate Athletic Association Student-Athlete Concussion Injury Litigation, MDL No. 2492, N.D. Ill.; 2016 U.S. Dist. LEXIS 8595).

Mealey's PI/Product Liability - Judge Grants Final Approval Of $42.5M Securities Class Action Settlement

CHICAGO - A federal judge in Illinois on Jan. 22 granted final approval of a $42.5 million settlement in a securities class action lawsuit regarding certain false and misleading statements made by a medical device maker and certain of its executive officers and directors regarding the demand of certain of its products in violation of federal securities laws (City of Lakeland Employees' Pension Plan v. Baxter International Inc., No. 10-6016, N.D. Ill.)

Mealey's Litigation Procedure - Judge Grants Final Approval Of $42.5M Securities Class Action Settlement

CHICAGO - A federal judge in Illinois on Jan. 22 granted final approval of a $42.5 million settlement in a securities class action lawsuit regarding certain false and misleading statements made by a medical device maker and certain of its executive officers and directors regarding the demand of certain of its products in violation of federal securities laws (City of Lakeland Employees' Pension Plan v. Baxter International Inc., No. 10-6016, N.D. Ill.)

Mealey's Securities/D&O Liability - Judge Grants Final Approval Of $42.5M Securities Class Action Settlement

CHICAGO - A federal judge in Illinois on Jan. 22 granted final approval of a $42.5 million settlement in a securities class action lawsuit regarding certain false and misleading statements made by a medical device maker and certain of its executive officers and directors regarding the demand of certain of its products in violation of federal securities laws (City of Lakeland Employees' Pension Plan v. Baxter International Inc., No. 10-6016, N.D. Ill.).

Mealey's Labor & Employment - Fair Credit Reporting Act Class Action Against Big Lots Survives Dismissal

CHICAGO - An Illinois federal judge on Jan. 19 concluded that a plaintiff sufficiently alleged that Big Lots Stores Inc. did not comply with the stand-alone disclosure requirement of the Fair Credit Reporting Act (FCRA) when it obtained a consumer report on a prospective employee, denying the retailer's motion to dismiss the putative class action (Shaundrenika Robrinzine v. Big Lots Stores Inc., No. 1:15-cv-07239, N.D. Ill.; 2016 U.S. Dist. LEXIS 5689).