LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).

Mealey's Securities/D&O Liability - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).

Mealey's Litigation Procedure - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Securities/D&O Liability - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Litigation Procedure - Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules

SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).

Mealey's Securities/D&O Liability - Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules

SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).

Mealey's Litigation Procedure - Investor Sues Emergency Room Operator Over Alleged Misrepresentations

TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).

Mealey's Securities/D&O Liability - Investor Sues Emergency Room Operator Over Alleged Misrepresentations

TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).

Mealey's Litigation Procedure - Judge Grants Preliminary Approval Of $10.5M Settlement In Stock Drop Suit

HOUSTON - A federal judge in Texas on April 10 granted preliminary approval of a $10.5 million settlement between investors and one of the country's largest industrial, engineering and construction companies in a securities class action lawsuit alleging that the company and certain of its current and former senior officers misrepresented the company's business and financial condition in violation of federal securities laws (In re KBR Inc. Securities Litigation, No. 14-1287, S.D. Texas).

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $10.5M Settlement In Stock Drop Suit

HOUSTON - A federal judge in Texas on April 10 granted preliminary approval of a $10.5 million settlement between investors and one of the country's largest industrial, engineering and construction companies in a securities class action lawsuit alleging that the company and certain of its current and former senior officers misrepresented the company's business and financial condition in violation of federal securities laws (In re KBR Inc. Securities Litigation, No. 14-1287, S.D. Texas).

Mealey's Labor & Employment - 9th Circuit: Cab Drivers Working The Phoenix Airport Are Not Employees

SAN FRANCISCO - Taxi drivers who lease cabs to pick up passengers at Phoenix Sky Harbor International Airport in Arizona are in business for themselves and not economically dependent on AAA Cab Service Inc. and are not employees under federal or state law, the Ninth Circuit U.S. Court of Appeals ruled March 27 in the drivers' consolidated class action, affirming a trial court's grant of summary judgment in AAA Cab (Ivan Pentchev Iontchev, et al. v. AAA Cab Service, Inc., et al., No. 15-15789, 9th Cir., 2017 U.S. App. LEXIS 5326).

Mealey's Litigation Procedure - 9th Circuit: Cab Drivers Working The Phoenix Airport Are Not Employees

SAN FRANCISCO - Taxi drivers who lease cabs to pick up passengers at Phoenix Sky Harbor International Airport in Arizona are in business for themselves and not economically dependent on AAA Cab Service Inc. and are not employees under federal or state law, the Ninth Circuit U.S. Court of Appeals ruled March 27 in the drivers' consolidated class action, affirming a trial court's grant of summary judgment in AAA Cab (Ivan Pentchev Iontchev, et al. v. AAA Cab Service, Inc., et al., No. 15-15789, 9th Cir., 2017 U.S. App. LEXIS 5326).

Mealey's Litigation Procedure - Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company's initial public offering (IPO) failed to show that the defendants violated federal securities law by failing to disclose certain trends in its customer concentration and sales growth, a federal judge in New York ruled Feb. 13 in granting the defendants' motions to dismiss (Andrew D. Nguyen v. MaxPoint Interactive Inc., et al., No. 15-6880, S.D. N.Y., 2017 U.S. Dist. LEXIS 20069).

Mealey's Securities/D&O Liability - Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company's initial public offering (IPO) failed to show that the defendants violated federal securities law by failing to disclose certain trends in its customer concentration and sales growth, a federal judge in New York ruled Feb. 13 in granting the defendants' motions to dismiss (Andrew D. Nguyen v. MaxPoint Interactive Inc., et al., No. 15-6880, S.D. N.Y., 2017 U.S. Dist. LEXIS 20069).

Mealey's Health Law - 11th Circuit Panel Affirms COBRA Ruling In Favor Of Fired Staffing Employee

ATLANTA - A 11th Circuit U.S. Court of Appeals panel on Dec. 30 affirmed an Alabama federal judge's ruling that a staffing business employer failed to notify a plaintiff of his rights under the Comprehensive Omnibus Budget Reconciliation Act (COBRA), saying that the evidence was sufficient that the former employee's health insurance was retroactively canceled in retaliation for filing an Equal Employment Opportunity Commission complaint and that the employer was not exempt from the COBRA requirement to provide notice to the employee of the right to continuation of health insurance coverage (Sam A. Virciglio v. Work Train Staffing LLC, et al., No. 15-10421, 11th Cir.; 2016 U.S. App. LEXIS 23422).

Mealey's IP/Tech - Judge Bars Employee From Testifying On Trademark Confusion In Trade Secrets Suit

PHILADELPHIA - In a misappropriation of trade secrets lawsuit, a company's employee in its marketing department is unqualified due to a lack of technical knowledge to testify on issues such as "branding, trademark confusion, customer reactions, business ethics, or trademark law," a Pennsylvania federal judge ruled Oct. 12, excluding the testimony (Alpha Pro Tech Inc. v. VWR International LLC, No. 12-1615, E.D. Pa.; 2016 U.S. Dist. LEXIS 141030).

Mealey's Litigation Procedure - Judge Bars Employee From Testifying On Trademark Confusion In Trade Secrets Suit

PHILADELPHIA - In a misappropriation of trade secrets lawsuit, a company's employee in its marketing department is unqualified due to a lack of technical knowledge to testify on issues such as "branding, trademark confusion, customer reactions, business ethics, or trademark law," a Pennsylvania federal judge ruled Oct. 12, excluding the testimony (Alpha Pro Tech Inc. v. VWR International LLC, No. 12-1615, E.D. Pa.; 2016 U.S. Dist. LEXIS 141030).

Mealey's Insurance - Insured's Defective Work Is Not An 'Occurrence,' Federal Judge Concludes

PHILADELPHIA - Under Pennsylvania law, allegations of an insured's faulty workmanship do not constitute an "occurrence," a Pennsylvania federal judge ruled Oct. 5, finding that a comprehensive business liability insurer has no duty to defend or indemnify an underlying negligent construction lawsuit (State Farm Fire and Casualty Co. v. Kim's Asia Construction, No. 15-6619, E.D. Pa.; 2016 U.S. Dist. LEXIS 138915).

Mealey's PI/Product Liability - Judge Dismisses Lockheed Martin For Lack Of Jurisdiction, Remands Asbestos Case

PITTSBURGH - Pennsylvania law imposing jurisdiction over companies that register to do business in the state applies only to periods where the company was actually registered, a federal judge held Sept. 16 in granting dismissal and remanding an asbestos case (Leona George, et al. v. A.W. Chesterton Co., et al., No. 16-115, W.D. Pa.; 2016 U.S. Dist. LEXIS 126176).

Mealey's Toxic Tort/Environmental - Judge Dismisses Lockheed Martin For Lack Of Jurisdiction, Remands Asbestos Case

PITTSBURGH - Pennsylvania law imposing jurisdiction over companies that register to do business in the state applies only to periods where the company was actually registered, a federal judge held Sept. 16 in granting dismissal and remanding an asbestos case (Leona George, et al. v. A.W. Chesterton Co., et al., No. 16-115, W.D. Pa.; 2016 U.S. Dist. LEXIS 126176).

Mealey's Securities/D&O Liability - Infrastructure Assets Design Company Sued For Alleged Securities Law Violations

LOS ANGELES - A shareholder filed a securities class action lawsuit against an infrastructure assets designer and certain of its current and former executive officers on Sept. 1 in California federal court, alleging that the defendants concealed issues with the company's business, operational and compliance policies in violation of federal securities laws (William Graves v. AECOM, et al., No. 16-6605, C.D. Calif.).

Mealey's IP/Tech - NLRB: Chipotle's Social Media Policy Violates Labor Law

WASHINGTON, D.C. - The National Labor Relations Board on Aug. 18 enforced, with some modifications, a decision by an administrative law judge (ALJ) finding that the social media code of Chipotle Services LLC (doing business as Chipotle Mexican Grill) violates the National Labor Relations Act (NLRA) and that the fast food chain committed further violations by directing an employee to delete certain tweets, prohibiting the employee from circulating a petition challenging the chain's break policy and terminating the employee for his actions (Chipotle Services LLC d/b/a Chipotle Mexican Grill and Pennsylvania Workers Organizing Committee, a project of the Fast Food Workers Committee, Nos. 04-CA-147314 and 04-CA-149551, NLRB).

Mealey's Labor & Employment - NLRB: Chipotle's Social Media Policy Violates Labor Law

WASHINGTON, D.C. - The National Labor Relations Board on Aug. 18 enforced, with some modifications, a decision by an administrative law judge (ALJ) finding that the social media code of Chipotle Services LLC (doing business as Chipotle Mexican Grill) violates the National Labor Relations Act (NLRA) and that the fast food chain committed further violations by directing an employee to delete certain tweets, prohibiting the employee from circulating a petition challenging the chain's break policy and terminating the employee for his actions (Chipotle Services LLC d/b/a Chipotle Mexican Grill and Pennsylvania Workers Organizing Committee, a project of the Fast Food Workers Committee, Nos. 04-CA-147314 and 04-CA-149551, NLRB).

Mealey's Litigation Procedure - Defendants To Pay $64M To Settle Claims In Long-Running Securities Suit

TOLEDO, Ohio - Defendants in a long-running securities class action lawsuit will pay $64 million to settle claims that they misrepresented a company's business and financial condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed in Ohio federal court on July 14 (Plumbers & Pipefitters National Pension Fund, et al. v. Michael Burns, et al., No. 05-7393, N.D. Ohio).

Mealey's Securities/D&O Liability - Defendants To Pay $64M To Settle Claims In Long-Running Securities Suit

TOLEDO, Ohio - Defendants in a long-running securities class action lawsuit will pay $64 million to settle claims that they misrepresented a company's business and financial condition in violation of federal securities laws, according to a motion for preliminary approval of settlement filed in Ohio federal court on July 14 (Plumbers & Pipefitters National Pension Fund, et al. v. Michael Burns, et al., No. 05-7393, N.D. Ohio).