LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Alleged Misstatements Contained Required Cautionary Language, Judge Rules

HOUSTON - A federal judge in Texas on Oct. 21 ruled that dismissal of an amended complaint in a securities class action lawsuit against parties to a merger deal is proper because lead plaintiffs failed to show that alleged misrepresentations and omissions made by the parties regarding debt and future distributions issues were not publicly available and did not contain the required cautionary language (Irving Braun, et al. v. Eagle Rock Energy Partners, LP, et al., No. 15-1470, S.D. Texas; 2016 U.S. Dist. LEXIS 146035).

Mealey's Securities/D&O Liability - Alleged Misstatements Contained Required Cautionary Language, Judge Rules

HOUSTON - A federal judge in Texas on Oct. 21 ruled that dismissal of an amended complaint in a securities class action lawsuit against parties to a merger deal is proper because lead plaintiffs failed to show that alleged misrepresentations and omissions made by the parties regarding debt and future distributions issues were not publicly available and did not contain the required cautionary language (Irving Braun, et al. v. Eagle Rock Energy Partners, LP, et al., No. 15-1470, S.D. Texas; 2016 U.S. Dist. LEXIS 146035).

Mealey's Labor & Employment - U.S. High Court Denies Petition For Cert In Airline Seniority Appeal

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 11 denied a request by flight attendants to rule on employee seniority disputes following the merger of two airlines, leaving in place a decision by the Second Circuit U.S. Court of Appeals that upheld dismissal of a complaint filed by former Trans World Airlines (TWA) flight attendants who claimed that they were improperly bumped to the bottom of the seniority list for the second time after American Airlines and U.S. Airways merged (Flight Attendants in Reunion, et al. v. American Airlines, Inc., et al., No. 16-256, U.S. Sup.; 2016 U.S. LEXIS 6209).

Mealey's Litigation Procedure - Judge Appoints Retirement System As Lead Plaintiff In Merger Deal Securities Suit

DETROIT - A federal judge in Michigan on Sept. 14 granted a shareholder's motion for appointment of lead plaintiff and lead counsel in a securities class action lawsuit, ruling that the shareholder has met all statutory requirements to serve in those roles (Livonia Employees' Retirement System v. Talmer Bancorp Inc., et al., No. 16-12229, E.D. Mich.; 2016 U.S. Dist. LEXIS 124417).

Mealey's Securities/D&O Liability - Judge Appoints Retirement System As Lead Plaintiff In Merger Deal Securities Suit

DETROIT - A federal judge in Michigan on Sept. 14 granted a shareholder's motion for appointment of lead plaintiff and lead counsel in a securities class action lawsuit, ruling that the shareholder has met all statutory requirements to serve in those roles (Livonia Employees' Retirement System v. Talmer Bancorp Inc., et al., No. 16-12229, E.D. Mich.; 2016 U.S. Dist. LEXIS 124417).

Mealey's Securities/D&O Liability - Judge: Tipper Breached Her Fiduciary Duty To Employer In Insider Trading Suit

BOSTON - The Securities and Exchange Commission has properly alleged that a day trader's tipper in an insider trading lawsuit breached her fiduciary duty to her employer in providing inside information regarding a merger deal, a federal judge in Massachusetts ruled in a July 12 opinion (Securities and Exchange Commission v. Vlad B. Spivak, et al., No. 15-13704, D. Mass.).

Mealey's Banking & Finance - 10th Circuit Upholds Bankruptcy Court's Finding That Mortgage Is Enforceable

DENVER - The 10th Circuit U.S. Court of Appeals on June 3 affirmed a bankruptcy court's decision that a mortgage and assignments were enforceable (In re: Ralph Gifford, et al. v. Bank of America, N.A., successor by merger to BAC Homes Loans Servicing L.P., No. 15-8097, 10th Cir.; 2016 U.S. App. LEXIS 10174).

Mealey's PI/Product Liability - Texas Appeals Court: Settlement Did Not Result In Merger Of Subcontracts

WACO, Texas - A settlement agreement that resolved a payment dispute between a general contractor that was hired to construct a housing complex on Sam Houston State University's (SHSU) campus and the subcontractor that installed the heating, ventilation and air conditioning (HVAC) system did not result in a merger of the indemnity clause between the parties' subcontracts, a Texas appellate panel ruled April 28 in reversing the subcontractor's summary judgment award (Capstone Building Corporation v. IES Commercial Inc., No. 10-15-00182-CV, Texas App., 10th Dist.; 2016 Texas App. LEXIS 4449).

Mealey's PI/Product Liability - Abbott, St. Jude Announce $25B Merger Of Cardiovascular Medical Device Businesses

Cardiovascular medical device makers Abbott Laboratories and St. Jude Medical Inc. announced April 28 that they have agreed to a $25 billion merger.

Mealey's Toxic Tort/Environmental - Plaintiffs In C8 Case Seek DuPont's Financial Information Related To Dow Merger

COLUMBUS, Ohio - The Ohio residents who are suing E.I. du Pont De Nemours and Co. alleging that they have been injured as a result of exposure to perfluorooctanoic acid (known as C8) filed a brief in an Ohio federal court on April 27, contending that it should compel the company to provide "relevant and discoverable financial information" related to a company that DuPont spun off, as well as related to its merger with Dow Chemical Co. (In re E.I. du Pont de Nemours and Co. C-8 Personal Injury Litigation, MDL No. 2433, No. 13-2433, S.D. Ohio).

Mealey's PI/Product Liability - Pfizer, Allergan Call Off Merger After 'Inversion' Tax Rule Change

NEW YORK - Pfizer Inc. on April 6 said it and Allergan PLC have agreed to terminate their November merger agreement "as a result of the occurrence of an adverse tax law change," according to a Form 8-K filed with the U.S. Securities and Exchange Commission.

Mealey's Toxic Tort/Environmental - Florida Panel Reverses $3.8 Million Verdict For Improper Closing Arguments

WEST PALM BEACH, Fla. - A Florida appellate panel on March 23 reversed a $3.8 million verdict for the plaintiff in a tobacco case and ordered a new trial after finding that the plaintiff's attorneys made improper comments to the jury during closing arguments (R.J. Reynolds Tobacco Co., as successor by merger to Lorillard Tobacco Company v. Kathleen Gafney, as Personal Representative of the estate of Frank Eugene Gafney. No. 4D13-4358. Fla. App., 4th Dist.; 2016 Fla. App. LEXIS 4520).

Mealey's Securities/D&O Liability - Vivendi To Pay $775M To Settle Securities Suit Over USA Networks Acquisition

NEW YORK - Vivendi Universal S.A. has agreed to pay $775 million to Liberty Media Corp. to settle claims that Vivendi misrepresented its dire financial condition in order to push through a proposed merger deal with Liberty Media in violation of federal securities law, according to a press release issued Feb. 26 (Liberty Media Corp., et al. v. Vivendi Universal S.A., et al., No. 03-2175, S.D. N.Y.).

Mealey's Insurance - Shareholder Seeks To Halt Merger Deal Until Details Of Plan Are Discussed

SAN FRANCISCO - A shareholder filed a securities class action complaint in California federal court on Feb. 18, seeking to halt a company's proposed merger until the details of the merger plan are disseminated to stockholders as a result of the defendants' alleged misstatements made in the merger plan documents (Brent Talbert v. Mattson Technology Inc., et al., No. 16-0811, N.D. Calif.).

Mealey's PI/Product Liability - N.Y. Justice: Jones Act Release Can't Bar Subsequent Mesothelioma Action

NEW YORK - Federal Employers Liability Act precedent requires finding that a man's release of a "laundry list" of potential claims does not bar a widow's subsequent mesothelioma action, a New York justice held in an opinion posted Jan. 8 (In re New York City Asbestos Litigation, Ann M. South, et al. v. Chevron Corp., individually and as successor by merger to Texaco Inc., et al., No. 190029/2015, N.Y. Sup., New York Co.; 2016 N.Y. Misc. LEXIS 23).

Mealey's Toxic Tort/Environmental - N.Y. Justice: Jones Act Release Can't Bar Subsequent Mesothelioma Action

NEW YORK - Federal Employers Liability Act precedent requires finding that a man's release of a "laundry list" of potential claims does not bar a widow's subsequent mesothelioma action, a New York justice held in an opinion posted Jan. 8 (In re New York City Asbestos Litigation, Ann M. South, et al. v. Chevron Corp., individually and as successor by merger to Texaco Inc., et al., No. 190029/2015, N.Y. Sup., New York Co.; 2016 N.Y. Misc. LEXIS 23).

Mealey's Insurance - Panel Rejects Reargument In Directors, Officers Liability Coverage Dispute

NEW YORK - A New York appeals panel on Oct. 15 rejected a directors and officers liability insurer's reargument that a merger litigation and an adversary proceeding constitute one continuous claim, reaffirming that coverage for the adversary proceeding is not subject to a 2006-07 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al. v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 7590).

Mealey's Banking & Finance - 6th Circuit Affirms Dismissal Of RESPA And HAMP Claims Against Lender

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Sept. 28 affirmed a district court's dismissal of claims asserted by property owners against a bank, finding that the Real Estate Settlement Procedures Act (RESPA) was not in effect at the relevant time and that the Home Affordable Mortgage Program (HAMP) does not impose a legal duty of care on lender (Roderick Ray, et al. v. U.S. Bank National Association, Successor Trustee to Bank of America, Successor by Merger to LaSalle Bank, N.A., No. 15-1241, 6th Cir.; 2015 U.S. App. LEXIS 17220).

Mealey's Litigation Procedure - Lead Plaintiffs Reach $48M Settlement With CVS In Securities Class Action

PROVIDENCE, R.I. - Lead plaintiffs in a securities class action lawsuit on Sept. 14 asked a federal judge in Rhode Island to preliminarily approve a $48 million settlement with CVS Caremark Corp. and certain of its executive officers over alleged misrepresentations made regarding CVS's 2007 merger with Caremark Rx Inc. (Richard Medoff v. CVS Caremark Corp., et al., No. 09-0554, D. Rhode Island).

Mealey's Securities/D&O Liability - Lead Plaintiffs Reach $48M Settlement With CVS In Securities Class Action

PROVIDENCE, R.I. - Lead plaintiffs in a securities class action lawsuit on Sept. 14 asked a federal judge in Rhode Island to preliminarily approve a $48 million settlement with CVS Caremark Corp. and certain of its executive officers over alleged misrepresentations made regarding CVS's 2007 merger with Caremark Rx Inc. (Richard Medoff v. CVS Caremark Corp., et al., No. 09-0554, D. Rhode Island).

Mealey's Labor & Employment - D.C. Circuit: Car Dealership Needed To Bargain Following Merger

WASHINGTON, D.C. - The owner of two car dealerships that merged following the Chrysler bankruptcy needed to bargain with the union that represented the mechanics of the dealership that closed, the District of Columbia Circuit U.S. Court of Appeals ruled Aug. 4, enforcing a ruling by the National Labor Relations Board (Dodge of Naperville, Inc., et al. v. National Labor Relations Board, No. 12-1032, D.C. Cir.; 2015 U.S. App. LEXIS 13527).

Mealey's Bankruptcy - Merger Litigation, Adversary Proceeding Are 'Wholly Different,' N.Y. Panel Says

NEW YORK - A New York appeals panel on June 4 rejected a directors and officers liability insurer's argument that a merger litigation and an adversary proceeding constitute one continuous claim, finding that coverage for the adversary proceeding is not subject to a 2006-2007 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al., v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 4643).

Mealey's Banking & Finance - Merger Litigation, Adversary Proceeding Are 'Wholly Different,' N.Y. Panel Says

NEW YORK - A New York appeals panel on June 4 rejected a directors and officers liability insurer's argument that a merger litigation and an adversary proceeding constitute one continuous claim, finding that coverage for the adversary proceeding is not subject to a 2006-2007 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al., v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 4643).

Mealey's Insurance - Merger Litigation, Adversary Proceeding Are 'Wholly Different,' N.Y. Panel Says

NEW YORK - A New York appeals panel on June 4 rejected a directors and officers liability insurer's argument that a merger litigation and an adversary proceeding constitute one continuous claim, finding that coverage for the adversary proceeding is not subject to a 2006-2007 policy's insured versus insured (IVI) exclusion (American Casualty Company of Reading, P.A., et al., v. Morris Gelb, et al., No. 15335 653280/11, N.Y. Sup., App. Div., 1st Dept.; 2015 N.Y. App. Div. LEXIS 4643).

Mealey's Antitrust/Unfair Competition - FTC Accepts Reynolds' Divestiture Offer, Allows Lorillard Merger To Proceed

WASHINGTON, D.C. - The U.S. Federal Trade Commission on May 26 accepted the offer of Reynolds American Inc. to sell four of its brands to British cigarette manufacturer Imperial Tobacco Group to settle charges that its proposed merger with Lorillard Inc. would likely be anti-competitive (In the Matter of Reynolds American Inc. and Lorillard Inc., No. 141-0168, U.S. FTC).