LexisNexis® Legal Newsroom
    Mealey's Litigation Procedure - Securities Suit Remanded For Proper Application Of Basic Reliance Standard

    NEW YORK - It is unclear whether a federal district court properly applied the correct standard in determining that defendants in a securities class action lawsuit failed to properly rebut the presumption of reliance by a preponderance of the evidence as required pursuant to the U.S. Supreme Court's ruling in Basic Inc. v. Levinson, a Second Circuit U.S. Court of Appeals panel ruled Jan. 12 in vacating and remanding the lower court's grant of class certification (Arkansas Teachers Retirement System, et al. v. Goldman Sachs Group Inc., et al., No. 16-0250, 2nd Cir., 2018 U.S. App. LEXIS 810).

    Mealey's IP/Tech - Judge Transfers Noninfringement, UCL Action Against Harley To Wisconsin

    MILWAUKEE - A California federal judge on Jan. 11 transferred an aftermarket motorcycle part company's action in which it seeks a declaration of noninfringement and asserts a claim for violation of California's unfair competition law (UCL) against a motorcycle maker to the U.S. District Court for the Eastern District of Wisconsin, noting that an underlying cease-and-desist letter originated in Wisconsin (Cobra Engineering Inc. v. H-D USA Llc, et al., No. 2:18cv71, E.D. Wis.).

    Mealey's Litigation Procedure - Parties Agree To $110M Accounting Fraud Class Action Settlement

    NEW YORK - A data and metrics provider for the media, advertising and marketing industries will pay $110 million to settle claims that it and certain of its current and former officers and directors violated federal securities law by engaging in a massive accounting fraud, lead plaintiffs claim in a motion for preliminary approval of settlement and stipulation of settlement filed Jan. 12 in New York federal court (Fresno County Employees' Retirement Association, et al. v. comScore Inc., et al., No. 16-1820, S.D. N.Y.).

    Mealey's Litigation Procedure - Earnings Call Statements Not Protected By Safe Harbor Provision, Judge Rules

    NEWARK, N.J. - Statements made by defendants in a securities class action lawsuit against a pet food company and certain of its executive officers in 2015 investor earnings calls were not forward-looking or protected by the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA), and the lead plaintiff has shown that the defendants knew that their statements were false when they made them, a federal judge in New Jersey ruled Jan. 12 in denying the defendants' motion to dismiss (Gary Curran v. Freshpet Inc., et al., No. 16-2263, D. N.J., 2017 U.S. Dist. LEXIS 5833).

    Mealey's Toxic Tort/Environmental - Insurer Says Reinsurer Breached Contract With Regard To Asbestos Claims

    BRIDGEPORT, Conn. - A reinsurer breached its contract by refusing to pay its share of losses arising out of the settlement of asbestos claims, an insurer says in a Jan. 16 complaint filed in the Connecticut federal court (Travelers Casualty and Surety Co. v. Lamorak Insurance Co., No. 18-00087, D. Conn.).

    Mealey's PI/Product Liability - Exclusionary Language 'Undeniably Captures' Alleged Conduct, 11th Circuit Affirms

    ATLANTA - The 11th Circuit U.S. Court of Appeals on Jan. 12 affirmed a lower federal court's ruling that a liquor liability insurance policy's assault and battery exclusion relieves the insurer of its duty to defend against an underlying lawsuit that resulted in a $3.5 million consent judgment against its bar owner insured (Jane Doe v. Hudson Specialty Insurance Company, No. 17-11642, 11th Cir., 2018 U.S. App. LEXIS 784).

    Mealey's PI/Product Liability - Speculative Opinion Pared From Expert Testimony In Medical Malpractice Action

    ST. LOUIS - An expert witness for a minor asserting medical malpractice claims cannot offer an opinion that injuries to the minor limit the youth's ability to stand or walk to "perhaps as much as a maximum of four hours per day" because it is only speculation, though the expert's other testimony is admissible, a Missouri federal judge ruled Jan. 12 (J.B. v. Missouri Baptist Hospital of Sullivan, et al., No. 4:16-cv-01394, E.D. Mo., 2018 U.S. Dist. LEXIS 5785).

    Mealey's Labor & Employment - Domino's Franchisor Hit With Class Suit By Delivery Driver For Reimbursements

    DENVER - A Domino's Pizza franchisor employs a flawed method to determine its per-trip reimbursement rate for its delivery drivers, causing their wages to fall below minimum wage during some or all workweeks, a former driver alleges in her class complaint filed Jan. 15 in the U.S. District Court for the District of Colorado (Kaylee Wilson, et al. v. DFL Pizza, LLC, No. 18-109, D. Colo.).

    Mealey's Labor & Employment - Ogletree Attorney Seeks More Than $300 Million In Equal Pay Act Class Lawsuit

    SAN FRANCISCO - Ogletree, Deakins, Nash, Smoak & Stewart favors men in pay, promotions and other opportunities, and leadership fosters an environment where women are marginalized and demeaned, one female attorney and nonequity shareholder of the firm alleges in her class and collective action complaint seeking more than $300 million, filed Jan. 12 in a California federal court (Dawn Knepper, et al. v. Ogletree, Deakins, Nash, Smoak & Stewart, P.C., No. 18-303, N.D. Calif.).

    Mealey's PI/Product Liability - Rail Car Pipe Insulation Asbestos Claims Survive Preemption, Federal Judge Says

    KANSAS CITY, Kan. - Claims of asbestos exposure from pipe insulation aboard railway passenger cars do not clearly implicate federal statutes governing locomotives or safety appliances and avoid preemption, a federal judge in Kansas held Jan. 12 (Nancy Little, et al. v. The Budd Co., No. 16-4170, D. Kan., 2018 U.S. Dist. LEXIS 5794).

    Mealey's PI/Product Liability - Judge Partially Grants, Denies Motion For Summary Judgment In Slip-And-Fall Suit

    DETROIT - A federal judge in Michigan on Jan. 12 partially granted and partially denied a pet store's motion for summary judgment in a suit where a woman claimed that she was injured after slipping in the store because she showed that the store had notice of the hazard (Jeanne Taylor v. PetSmart Inc., No. 17-cv-10151, E.D. Mich., 2018 U.S. Dist. LEXIS 5763).

    Mealey's IP/Tech - In Covered Business Method Review, Patent Board Finds 5 Claims Ineligible

    ALEXANDRIA, Va. - The Patent Trial and Appeal Board in a Jan. 16 final written decision sided with a petitioner for covered business method (CBM) review, agreeing that five claims of a method for communicating information from remote sites to a central location are directed to the abstract idea of "establishing a communications route between two points to relay information" (Emerson Electric Company v. Sipco LLC, No. CBM2016-00095, PTAB).

    Mealey's Insurance - Hurricane Irene Claim For Additional Damage Is Untimely, Federal Judge Says

    ELIZABETH CITY, N.C. - A North Carolina federal judge on Jan. 11 found that insureds' claim for additional damage was made well beyond the Federal Emergency Management Agency deadline for Hurricane Irene-related claims, further concluding that the subrogation provision in a Standard Flood Insurance Policy (SFIP) provides no basis for the relief that the insureds' seek (Robert Shearer, et al. v. State Farm Fire and Casualty Company, et al., No. 17-31, E.D. N.C., 2018 U.S. Dist. LEXIS 6298).

    Mealey's Toxic Tort/Environmental - California Court Won't Revisit Asbestos Deposition Testimony Ruling

    OAKLAND, Calif. - A California appeals court on Jan. 12 denied a petition for rehearing, refusing to again visit its conclusion that a judge erred in excluding deposition testimony in the apparent belief that the witness needed to testify to directly witnessing asbestos exposures, according to the court's docket (Keith Turley and Joy Ann Turley v. Familian Corp., No. A149752, Calif. App., 1st Dist.).

    Mealey's Banking & Finance - Judge Finds Lender's Duty To Respond Was Not Triggered Under RESPA

    SACRAMENTO, Calif. - A California federal judge on Jan. 11 granted a lender's motion to dismiss causes of action for violation of the unfair competition law (UCL), the Real Estate Settlement and Procedures Act (RESPA) and other claims, finding that a borrower's communications about the origination of her loan did not trigger the lender's duty to respond under RESPA (Susan Ann Feighery, et al. v. Ditech Financial LLC, No. 2:17-cv-01473, E.D. Calif., 2018 U.S. Dist. LEXIS 5472).

    Mealey's Antitrust/Unfair Competition - Judge Transfers Noninfringement, UCL Action Against Harley To Wisconsin

    MILWAUKEE - A California federal judge on Jan. 11 transferred an aftermarket motorcycle part company's action in which it seeks a declaration of noninfringement and asserts a claim for violation of California's unfair competition law (UCL) against a motorcycle maker to the U.S. District Court for the Eastern District of Wisconsin, noting that an underlying cease-and-desist letter originated in Wisconsin (Cobra Engineering Inc. v. H-D USA Llc, et al., No. 2:18cv71, E.D. Wis.).

    Mealey's Insurance - Federal Jurisdiction Exists Over Carbon Monoxide Poisoning Coverage Suit

    PHILADELPHIA - A Pennsylvania federal judge on Jan. 12 determined that exercising federal jurisdiction over an insurer's suit seeking a coverage declaration for an underlying carbon monoxide poisoning suit filed against an insured is appropriate because the insurer's suit and the underlying suit are not parallel proceedings (Foremost Insurance Co. v. Nosam LLC, et al., No. 17-2843, E.D. Pa., 2018 U.S. Dist. LEXIS 6645).

    Mealey's PI/Product Liability - Montana Supreme Court Affirms Summary Judgment In Medical Malpractice Suit

    HELENA, Mont. - The Montana Supreme Court on Jan. 16 unanimously affirmed a trial court's decision to grant summary judgment in a medical malpractice suit after finding that a man who claimed he was prematurely discharged from a hospital and improperly prescribed pills failed to file an expert affidavit with his suit as required by Montana law (Harry Richards v. Kalispell Regional Medical Center, et al., No. 17-0302, Mont. Sup., 2018 Mont. LEXIS 8).

    Mealey's IP/Tech - Nebraska Federal Judge Won't Retransfer Trademark Claims To Texas

    OMAHA, Neb. - A request by a trademark owner to retransfer infringement allegations to the U.S. District Court for the Southern District of Texas was denied Jan. 16 by a Nebraska federal judge, who found that the plaintiff failed to show that a previously severed defendant is indispensable to the Texas action (Buc-ee's Ltd. v. Buck's Inc., et al., No. 17-287, D. Neb., 2018 U.S. Dist. LEXIS 6619).

    Mealey's Litigation Procedure - Domino's Franchisor Hit With Class Suit By Delivery Driver For Reimbursements

    DENVER - A Domino's Pizza franchisor employs a flawed method to determine its per-trip reimbursement rate for its delivery drivers, causing their wages to fall below minimum wage during some or all workweeks, a former driver alleges in her class complaint filed Jan. 15 in the U.S. District Court for the District of Colorado (Kaylee Wilson, et al. v. DFL Pizza, LLC, No. 18-109, D. Colo.).

    Mealey's Litigation Procedure - N.J. Federal Judge Sends FACTA Receipt Class Suit Back To Illinois State Court

    NEWARK, N.J. - A New Jersey federal judge on Jan. 11 adopted a federal magistrate judge's recommendations and sent a class complaint alleging that the printing of more than five digits of credit card numbers on receipts violated the Fair and Accurate Credit Transactions Act (FACTA) amendment to the Fair Credit Reporting Act back to an Illinois state court (Anita Parker, et al. v. J. Crew Grp., Inc., et al., No. 17-1214, D. N.J., 2018 U.S. Dist. LEXIS 5360).

    Mealey's Litigation Procedure - Parties Settle Dispute Over $18M ICC Award Issued Over Tunnel Excavation Claims

    MIAMI - A Florida federal judge on Jan. 12 granted a joint motion to dismiss a petition to vacate and a cross-petition to confirm a $18,068,685 international arbitral award issued in a dispute over a contract for the excavation of tunnels as part of a project for the construction of a hydroelectric plant in Guatemala (Cobra Infraestructuras Hidraulicas S.A. v. Societa Esecuzione Lavori Idraulici, S.p.A., et al., No. 17-23664, S.D. Fla.).

    Mealey's Insurance - Insurer Says Reinsurer Breached Contract With Regard To Asbestos Claims

    BRIDGEPORT, Conn. - A reinsurer breached its contract by refusing to pay its share of losses arising out of the settlement of asbestos claims, an insurer says in a Jan. 16 complaint filed in the Connecticut federal court (Travelers Casualty and Surety Co. v. Lamorak Insurance Co., No. 18-00087, D. Conn.).

    Mealey's Toxic Tort/Environmental - Rail Car Pipe Insulation Asbestos Claims Survive Preemption, Federal Judge Says

    KANSAS CITY, Kan. - Claims of asbestos exposure from pipe insulation aboard railway passenger cars do not clearly implicate federal statutes governing locomotives or safety appliances and avoid preemption, a federal judge in Kansas held Jan. 12 (Nancy Little, et al. v. The Budd Co., No. 16-4170, D. Kan., 2018 U.S. Dist. LEXIS 5794).

    Mealey's Toxic Tort/Environmental - Special Master Fees In Lago Agrio Case Pose 'Ethical Problems,' Attorney Says

    NEW YORK - The attorney representing a group of Ecuadorian residents who won an $18.5 billion judgment against Chevron Corp. for injuries, only to have it reversed, on Jan. 16 filed a letter with the presiding judge in the U.S. District Court for the Southern District of New York, arguing that the special masters in the case "have chosen to utterly ignore" the issues the attorney raised concerning fees. Moreover, he contends that there are "ethical problems" with the billing process the special masters used (Chevron Corporation v. Donziger, et al., Case No. 11 Civ. 691, S.D. N.Y.).