LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Biosciences Company Hit With Stock-Drop Suit Over Internal Controls Reporting

NEWARK, N.J. - An investor sued a biosciences company and certain of its senior officers and directors in New Jersey federal court on June 13, alleging that the defendants concealed certain weaknesses in the company's internal controls, allowing it to improperly recognize revenue in violation of federal securities laws (Tim Faulkner v. Akers Biosciences Inc., et al., No. 18-10521, D. N.J.).

Mealey's IP/Tech - Judge Dismisses UCL, Lanham Act Claims, Finds Statements Were Not Misleading

SAN JOSE, Calif. - After finding that statements made on a trademark filing service company's website would not likely mislead consumers, a California federal judge on May 25 granted the company's request to dismiss claims for violation of California's unfair competition law (UCL) and the Lanham Act and for false advertising asserted by a law firm, its owner and a trademark search service company (Legalforce RAPC Worldwide, P.C., et al. v. Trademark Information International LLC, et al., No. 17-cv-07354, N.D. Calif., 2018 U.S. Dist. LEXIS 88506).

Mealey's Antitrust/Unfair Competition - Judge Dismisses UCL, Lanham Act Claims, Finds Statements Were Not Misleading

SAN JOSE, Calif. - After finding that statements made on a trademark filing service company's website would not likely mislead consumers, a California federal judge on May 25 granted the company's request to dismiss claims for violation of California's unfair competition law (UCL) and the Lanham Act and for false advertising asserted by a law firm, its owner and a trademark search service company (Legalforce RAPC Worldwide, P.C., et al. v. Trademark Information International LLC, et al., No. 17-cv-07354, N.D. Calif., 2018 U.S. Dist. LEXIS 88506).

Mealey's Toxic Tort/Environmental - 2nd Circuit Upholds Ruling Finding Residents' State Law Claims Preempted By CERCLA

NEW YORK - A federal judge in New York did not err when dismissing a lawsuit brought by residents who live near a Superfund site after finding that their state law claims were preempted by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), a Second Circuit U.S. Court of Appeals panel ruled May 25, holding that the plaintiffs' claims conflicted with the terms of a remediation plan entered into between Honeywell International Inc. and the U.S. Environmental Protection Agency (Robert Bartlett, et al. v. Honeywell International Inc., No. 17-1907-cv, 2nd Cir., 2018 U.S. App. LEXIS 13860).

Mealey's IP/Tech - Hotel Franchisor Awarded More Than $900,000 In Franchisee Profit Dispute

HOUSTON - A Texas federal judge on May 22 awarded a hotel franchisor more than $900,000 on its unopposed motion for damages and attorney fees against a former franchisee that continued to use registered trademarks after its franchise agreement was terminated and now must remit profits during that time under the Lanham Act and state law (Choice Hotels International, Inc. v. Frontier Hotels, Inc., et al., No. 15-2355, S.D. Texas, 2018 U.S. Dist. LEXIS 85914).

Mealey's Securities/D&O Liability - Agency Tells High Court That Review Of Ruling In Securities Suit Not Needed

WASHINGTON, D.C. - U.S. Supreme Court review of a federal court's ruling that the Housing and Economic Recovery Act of 2008 (HERA) supersedes the statute of repose on certain state and federal securities laws is not necessary because the ruling is in line with similar rulings in every other federal circuit court to review the issue, the Federal Housing Finance Agency (FHFA) argues in a May 18 respondent's brief filed in the Supreme Court (David Findlay, et al. v. Federal Housing Finance Agency, No. 17-1300, and Nomura Securities International Inc. v. Federal Housing Finance Agency, No. 17-1302, U.S. Sup., 2018 U.S. S. Ct. Briefs LEXIS 1965).

Mealey's Securities/D&O Liability - U.S. Supreme Court Declines Review Of Scienter Pleading Standard Dispute

WASHINGTON, D.C. - The U.S. Supreme Court on May 21 declined review of a Fourth Circuit U.S. Court of Appeals ruling that an investor failed to properly plead scienter in making his federal securities law claims against a company and two of its senior executives in a class action lawsuit (Maguire Financial LP v. PowerSecure International Inc., et al., No. 17-1303, U.S. Sup.).

Mealey's Litigation Procedure - PCA Holds Merits Hearing In Arbitration Over Russian Banking Operations

THE HAGUE, Netherlands - The Permanent Court of Arbitration (PCA) on Feb. 19 said it has completed a hearing on the merits of an arbitration commenced by two financial institutions against the Russian Federation pursuant to the United Nations Commission on International Trade Law (UNCITRAL) (PJSC CB PrivatBank, et al. v. Russian Federation, No. 2015-21, PCA).

Mealey's Health Law - Judge Rejects Indiana's Challenge To ACA Employer Mandate

INDIANAPOLIS - Res judicata and U.S. Supreme Court precedent require judgment in favor of the federal government in a state's and school district's attack on the Patient Protection and Affordable Care Act (ACA) employer mandate, a federal judge in Indiana held Feb. 14 (Indiana, et al. v. Internal Revenue Service, et al., NO. 13-1612, S.D. Ind., 2018 U.S. Dist. LEXIS 24863).

Mealey's Litigation Procedure - Panel Finds Crystallex Did Not Allege Fraudulent Transfer Was Made By Debtor

PHILADELPHIA - In a majority ruling, the Third Circuit U.S. Court of Appeals on Jan. 3 reversed a district court's ruling in favor of a Canadian gold producer, who is seeking to obtain payment of a $1.20 billion arbitral award issued against Venezuela, finding that the company failed to plead that a fraudulent transfer was made by a debtor under Delaware law (Crystallex International Corp. v. Petroleos De Venezuela, S.A., Nos. Nos. 16-4012 & 17-1439, 3rd Cir., 2018 U.S. App. LEXIS 95).

Mealey's Litigation Procedure - ITLOS Appoints New Tribunal Members To Hear UNCLOS Cases

HAMBURG, Germany - The International Tribunal for the Law of the Sea (ITLOS) on Oct. 2 announced that it has appointed a new president, vice president and five new tribunal members.

Mealey's Litigation Procedure - ITLOS Issues Award On Maritime Boundaries Between Ghana, Cote D'Ivoire

HAMBURG, Germany - The International Tribunal for the Law of the Sea (ITLOS) on Sept. 23 issued its final award in maritime boundary dispute between Ghana and Cote d'Ivoire, establishing specific coordinates for certain boundaries in the Atlantic Ocean and finding that Ghana did not violate the United Nations Convention on the Law of the Sea (UNCLOS) (Ghana v. Cote d'Ivoire, No. 23, ITLOS).

Mealey's Litigation Procedure - Investor Failed To Show That Bank's Internal Controls Were Flawed, Judge Rules

NEW YORK - An investor has failed to show that an investment bank and two of its senior executives violated provisions of federal securities law by failing to adequately monitor the bank's internal controls in the wake of a former employees' massive securities fraud scheme, a federal judge in New York ruled on Sept. 8 in granting the defendants' motion to dismiss without prejudice (Gregory G. Barrett v. PJT Partners Inc., et al., No. 16-2841, S.D. N.Y., 2017 U.S. Dist. LEXIS 145781).

Mealey's Securities/D&O Liability - Investor Failed To Show That Bank's Internal Controls Were Flawed, Judge Rules

NEW YORK - An investor has failed to show that an investment bank and two of its senior executives violated provisions of federal securities law by failing to adequately monitor the bank's internal controls in the wake of a former employees' massive securities fraud scheme, a federal judge in New York ruled on Sept. 8 in granting the defendants' motion to dismiss without prejudice (Gregory G. Barrett v. PJT Partners Inc., et al., No. 16-2841, S.D. N.Y., 2017 U.S. Dist. LEXIS 145781).

Mealey's Litigation Procedure - 5th Circuit Finds Korean Entity Could Attach Assets In Suit To Compel

NEW ORLEANS - After finding that a Korean company's attachment of pig iron was valid under Louisiana law, the Fifth Circuit U.S. Court of Appeals on Sept. 1 vacated a district court's decision dissolving the attachment in favor of a German company that had already attached the same assets in a Louisiana state court (Daewoo International Corp. v. Thyssenkrupp Mannex GmBH, intervenor, No. 16-30984, 5th Cir., 2017 U.S. App. LEXIS 16916).

Mealey's Litigation Procedure - ICSID Rejects Zimbabwe's Applications, Orders Parties To Set Up Escrow Accounts

WASHINGTON, D.C. - A law firm representing the owners of farms that were expropriated by the Republic of Zimbabwe on Aug. 29 announced that committees for the International Centre for Settlement of Investment Disputes (ICSID) recently issued a decision denying a request made by Zimbabwe for provisional measures and for a temporary stay of the award (Bernard Von Pezold and others v. Republic of Zimbabwe, No. ARB/10/15, Border Timbers Limited, et al. v. Republic of Zimbabwe, No. ARB/10/15).

Mealey's PI/Product Liability - Stock Drop Claims Survive Dismissal Motion In Securities Class Action

NEW YORK - A federal judge in New York on July 28 substantially denied dismissal of claims in a securities class action lawsuit against a specialty pharmaceutical company and certain of its current and former executive officers and directors, ruling that a shareholder has shown that the defendants violated federal securities laws by concealing a significant downsizing of its salesforce for one of its drugs, as well as the exclusion of the drug from the formularies of several of the nation's largest health insurers (Andrew Meyer v. Concordia International Corp., et al., No. 16-6467, S.D. N.Y., 2017 U.S. Dist. LEXIS 119436).

Mealey's Litigation Procedure - Stock Drop Claims Survive Dismissal Motion In Securities Class Action

NEW YORK - A federal judge in New York on July 28 substantially denied dismissal of claims in a securities class action lawsuit against a specialty pharmaceutical company and certain of its current and former executive officers and directors, ruling that a shareholder has shown that the defendants violated federal securities laws by concealing a significant downsizing of its salesforce for one of its drugs, as well as the exclusion of the drug from the formularies of several of the nation's largest health insurers (Andrew Meyer v. Concordia International Corp., et al., No. 16-6467, S.D. N.Y., 2017 U.S. Dist. LEXIS 119436).

Mealey's Securities/D&O Liability - Stock Drop Claims Survive Dismissal Motion In Securities Class Action

NEW YORK - A federal judge in New York on July 28 substantially denied dismissal of claims in a securities class action lawsuit against a specialty pharmaceutical company and certain of its current and former executive officers and directors, ruling that a shareholder has shown that the defendants violated federal securities laws by concealing a significant downsizing of its salesforce for one of its drugs, as well as the exclusion of the drug from the formularies of several of the nation's largest health insurers (Andrew Meyer v. Concordia International Corp., et al., No. 16-6467, S.D. N.Y., 2017 U.S. Dist. LEXIS 119436).

Mealey's Health Law - Connecticut Judge Grants Injunction For Union Workers In Medical Coverage Dispute

HARTFORD, Conn. - A Connecticut federal judge on June 27 granted union employees' motion for a preliminary injunction and ordered Honeywell International Inc. to reinstate previously existing medical coverage benefits, saying that the threat of termination and the actual termination of medical coverage benefits constitute irreparable harm (David Kelly, et al. v. Honeywell International Inc., No. 3:16-cv-00543, D. Conn., 2017 U.S. Dist. LEXIS 99419).

Mealey's Litigation Procedure - Ohio Top Court Urged To Reject Expert's Cumulative Exposure Testimony

CLEVELAND - Expert testimony attributing a man's mesothelioma to cumulative exposure to asbestos in automobile brakes simply dresses up the theory that every exposure leads to disease in new clothing and is inadmissible under Ohio law, a manufacturer and its amici curiae told the state's highest court on June 15 (Mark Schwartz, et al. v. Honeywell International Inc., et al., No. 2016-1372, Ohio Sup.).

Mealey's Toxic Tort/Environmental - Ohio Top Court Urged To Reject Expert's Cumulative Exposure Testimony

CLEVELAND - Expert testimony attributing a man's mesothelioma to cumulative exposure to asbestos in automobile brakes simply dresses up the theory that every exposure leads to disease in new clothing and is inadmissible under Ohio law, a manufacturer and its amici curiae told the state's highest court on June 15 (Mark Schwartz, et al. v. Honeywell International Inc., et al., No. 2016-1372, Ohio Sup.).

Mealey's Litigation Procedure - ITLOS President Gives Annual Report And Case Update

HAMBURG, Germany - The president of the International Tribunal for the Law of The Sea (ITLOS) on June 12 issued the annual report for the tribunal, noting several important rulings and appointments.

Mealey's Litigation Procedure - Mass Transit Operator Accused Of Data Collection Via Smartphone App

OAKLAND, Calif. - San Francisco Bay Area Rapid Transit District (BART) was hit with a putative class complaint in California federal court May 22, with one of its mass transit passengers claiming that the organization's smartphone application surreptitiously collects the International Mobile Equipment Identity (IMEI) numbers associated with users' phones, as well as their precise locations, in violation of state and federal law (Pamela Moreno v. San Francisco Bay Area Rapid Transit District, et al., No. 4:17-cv-02911, N.D. Calif.).

Mealey's Litigation Procedure - ICSID Rejects Venezuela's 4th Request To Disqualify Arbitrator In Treaty Case

WASHINGTON, D.C. - Two members of a tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on May 15 rejected the fourth request filed by the Bolivarian Republic of Venezuela to disqualify an arbitrator in a case filed by two Venezuelan entities who assert violations of a bilateral investment treaty, finding that it failed to show that the arbitrator's assistant is employed by a law firm that allegedly represented interests that were adverse to Venezuela (Fabrica De Vidrios Los Andres C.A., et al. v. Bolivarian Republic of Venezuela, No. ARB/12/21, ICSID).