LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - English Court Holds Bank Can Freeze $22.6B In Kazakhstan's Assets

LONDON - An English appeals panel on June 19 denied an appeal filed by the Republic of Kazakhstan and its national bank, holding that the Bank of New York Mellon SA/NV can freeze $22.6 billion held in Kazakhstan's national fund in relation to an attempt by investors to obtain payment of a $497,685,101 arbitral award (National Bank of Kazakhstan, et al. v. The Bank of New York Mellon SA/NV, No. [2018] EWCA 1390, England and Wales High, Comm.).

Mealey's Securities/D&O Liability - Panel: Investors Properly Alleged Domestic Transaction Of Securities Occurred

NEW YORK - A federal judge erred in dismissing a securities fraud lawsuit because investors properly alleged a "domestic transaction" under Section 10(b) of the Securities Exchange Act of 1934, a Second Circuit U.S. Court of Appeals panel ruled June 19 in reversing and remanding the action to the district court (Ryan Giunta, et al. v. James B. Dingman, et al., No. 17-1375, 2nd Cir., 2018 U.S. App. LEXIS 16407).

Mealey's Securities/D&O Liability - Deutsche Bank To Pay $205M Fine To Settle FX Manipulation Claims

NEW YORK - Deutsche Bank AG and its foreign exchange (FX) business on June 20 agreed to pay $205 million to settle claims with the New York Department of Financial Services (DFS) stemming from the DFS's investigation into the global bank's operation of its foreign exchange business.

Mealey's Litigation Procedure - Federal Judge Refuses To Dismiss Petition To Confirm $48M ICC Award

NEW YORK - A New York federal judge on June 15 refused to grant a motion filed by a group of mining entities to dismiss a petition to confirm a $48,053,462 arbitral award issued by the International Chamber of Commerce's (ICC) International Court of Arbitration in favor of a group of Brazilian companies, holding that the companies sufficiently alleged that the entities were attempting to avoid their obligations under contract for the sale of pig iron by making sure a related entity was judgment proof (CBF Industria De Gusa S/A, et al. v. Amci Holdings Inc., et al., No. 13 Civ. 2581, S.D. N.Y., 2018 U.S. Dist. LEXIS 100781).

Mealey's Insurance - California Federal Judge Overturns Insurer's Denial Of LTD Benefits

SAN FRANCISCO - A disability claimant is entitled to long-term disability (LTD) benefits because the evidence from the claimant's treating physicians and evidence obtained from the disability insurer's medical reviewers support a finding that the claimant is disabled under the plan's any-occupation standard, a California federal judge said June 18 (Sarabjit Sangha v. Cigna Life Insurance Company of New York, No. 17-5158, N.D. Calif., 2018 U.S. Dist. LEXIS 101725).

Mealey's Toxic Tort/Environmental - Chevron: Court Should Deny Relief, Hold Lago Agrio Attorney In Contempt

NEW YORK - Chevron Corp. filed a brief in a New York federal court on June 14 contending that the district court should deny a motion for declaratory relief filed by Steven Donziger, the attorney who represented a group of Ecuadorian residents who won an $18.5 billion judgment against the company for injuries only to have it reversed (Chevron Corporation v. Donziger, et al., No. 11 Civ. 691, S.D. N.Y.).

Mealey's Data Privacy - Verizon Users Say 'Zombie' Cookie Use Was Deceptive, Impaired Devices

OAKLAND, Calif. - A marketing firm that deployed "zombie" cookies on the mobile devices of Verizon Wireless users violated New York consumer law, two wireless users argue in a June 13 brief in California federal court, claiming trespass and opposing the defendant's motion to dismiss (Anthony Henson, et al. v. Turn Inc., No. 4:15-cv-01497, N.D. Calif.).

Mealey's Insurance - Judgment Issued In Personal Injury Suit After Insolvent Insurer's $1M Settlement

NEW YORK - A New York justice on June 14 issued a judgment reflecting that two insureds are responsible for a $4 million judgment arising from a personal injury lawsuit after their insolvent insurer paid $1 million to the settlement of the case (Etta [Itty] Pruss v. Infiniti of Manhattan Inc., et al., No. 161240/13, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 2164).

Mealey's IP/Tech - Successors To Abbott And Costello Estates Must Pay Fees In Copyright Case

NEW YORK - A New York federal judge on June 12 adopted a New York federal magistrate judge's recommendation that defendants accused of copyright infringement by the successors in interest to the estates of comedy duo Bud Abbott and Lou Costello should be awarded $50,123.04 in attorney fees in connection with the case (TCA Television Corp., et al., v. Kevin McCollum, et al., No. 15-4325, S.D. N.Y., 2018 U.S. Dist. LEXIS 98551).

Mealey's Securities/D&O Liability - Judge: Falsity, Materiality Elements Of Securities Law Claims Properly Pleaded

NEW YORK - A federal judge in New York on June 12 ruled that a lead plaintiff in a securities class action lawsuit properly pleaded falsity and materiality in arguing that a drug maker and certain of its current and former executive officers concealed from investors that the company had overstated its revenues for 2015 in violation of federal securities law (In re Insys Therapeutics Inc. Securities Litigation, No. 17-1954, S.D. N.Y., 218 U.S. Dist. LEXIS 100000).

Mealey's Securities/D&O Liability - New York High Court: Martin Act Claims Subject To 3-Year Limitations Period

ALBANY, N.Y. - In a 4-1 ruling, a divided New York Court of Appeals on June 12 ruled that claims brought pursuant to the Martin Act are governed by a three-year statute of limitations under New York law (The People v. Credit Suisse (USA) LLC, et al., No. 40, N.Y. App., 2018 N.Y. LEXIS 1451).

Mealey's PI/Product Liability - Securities Class Action Dismissed For Failure To Plead Falsity, Scienter

NEW YORK - A federal judge in New York on June 11 dismissed an amended shareholder complaint in its entirety and with prejudice, ruling that lead plaintiffs failed to plead falsity or scienter in making their federal securities law claims against an animal pharmaceutical company and certain of its senior executives (In re Aratana Therapeutics Inc. Securities Litigation, No. 17-880, S.D. N.Y., 2018 U.S. Dist. LEXIS 98535).

Mealey's Litigation Procedure - Justice: Auto Makers Must Answer Asbestos Plaintiff's Jurisdictional Discovery

NEW YORK - Two automakers did not file timely objections to an order requiring them to respond to jurisdictional discovery requests, but regardless, the motions are at least likely to produce admissible evidence, a New York justice held in an opinion posted June 12 and affirming a special master's ruling (In re: NYCAL, Yang-Ning Pi Chen, et al. v. Aerco International Inc., et al., No. 190133/2017, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 2200).

Mealey's Insurance - Life Insurer, Investor Seek Pre-Motion Conference On Dismissal Of Class Action

NEW YORK - A life insurer and a private investment firm wrote a New York federal court on June 8 requesting a pre-motion conference on a motion to dismiss a class action alleging breach of policies by the unlawful increase of the premium costs to recoup costs associated with the acquisition (Derek Fan, et al. v. Phoenix Life Insurance Co., et al., No. 18-01288, S.D. N.Y.).

Mealey's IP/Tech - Extension Of Time To Oppose Report Sought In Copyright, Trademark Case

NEW YORK - In a June 13 letter motion, plaintiffs' attorneys requested a two-week extension to file objections to a June 8 New York federal magistrate judge's recommendation that they be awarded a default judgment on just three of seven counts of copyright infringement (Conan Properties International LLC, et al., v. Ricardo Jove Sanchez, No. 17-162, E.D. N.Y., 2018 U.S. Dist. LEXIS 98631).

Mealey's Insurance - Ruling In Favor Of Insured In Environmental Suit Is Not Appealable, Judge Says

NEW YORK - A New York federal judge on June 7 clarified that a prior ruling that an excess insurer owes its insured more than $55 million for environmental contamination costs incurred by the insured is not a final and appealable judgment (Olin Corp. v. Lamorak Insurance Co., et al., No. 84-1968, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - Printing Press Company Can't Escape Man's Asbestos Suit

NEW YORK - An affidavit largely details the period after a man's alleged asbestos exposure and cannot free a printing press company from the lawsuit, a New York justice held in an opinion posted June 12 (Christine Capilets, et al. v. Aerco International, et al., No. 190060/2016, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 2207).

Mealey's Labor & Employment - Judgment Entered Against Foot Locker In Pension Plan Dispute; Counsel Awarded $95M

NEW YORK - A federal judge in New York on June 8 entered an order of final judgment in favor of plaintiffs who claimed that Foot Locker Inc. violated the Employee Retirement Income Securities Act by failing to properly provide retirement plan participants with notices about changes to the plan and found that class counsel was entitled to $95 million in attorney fees (Geoffrey Osberg, et al. v. Foot Locker Inc., No. 07 CV 1358, S.D. N.Y.).

Mealey's Bankruptcy - Representation, Standing Debated In Bid To Hold Johns-Manville Broker Liable

NEW YORK - The future claimants' representative (FCR) in the landmark bankruptcy case of Johns-Manville Corp. did not represent an asbestos claimants' in personam claims against the company's insurance broker, so the broker can be held independently liable for asbestos personal injury claims, a claimant's law firm says June 8 on appeal in New York federal court (The Bogdan Law Firm v. Marsh USA, Inc., No. 1:18-cv-01228, S.D. N.Y.).

Mealey's Insurance - Diversity Of Citizenship Does Not Exist; Water, Mold Coverage Suit Dismissed

WHITE PLAINS, N.Y. - A New York federal judge on June 11 dismissed an insured's suit seeking coverage for water and mold damages following a sewage backup after determining that subject matter jurisdiction does not exist because both the insured and insurer are citizens of New York (Alexandra Tran, et al. v. Farmers Group Inc., et al., No. 17-3907, S.D. N.Y., 2018 U.S. Dist. LEXIS 97717).

Mealey's Toxic Tort/Environmental - Government, New York City Authority Reach Lead Hazard Deal Worth At Least $1.4B

NEW YORK - The U.S. attorney for the Southern District of New York on June 11 announced that he has reached a lead hazard settlement with the New York City Housing Authority (NYCHA) that imposes a federal monitor, requires the city to provide $1.2 billion of additional capital funding to NYCHA over the next five years and requires the city to provide $200 million every year thereafter until the problems are fixed and the consent decree is no longer necessary (United States v. New York City Housing Authority, No. 18-5213, S.D. N.Y.).

Mealey's IP/Tech - New York Magistrate Judge Won't Strike Supplemented Patent Allegations

BROOKLYN, N.Y. - In a June 7 ruling, a New York federal judge rejected efforts by two defendants to strike supplemental patent infringement allegations in a case that already asserted patent and copyright infringement, as well as violations of the Lanham Act (PopSockets LLC v. Quest USA Corp., et al., No. 17-3653, E.D. N.Y., 2018 U.S. Dist. LEXIS 96137).

Mealey's Toxic Tort/Environmental - New York High Court OKs Pre-Collection Of Cigarette Taxes On Tribal Land

ALBANY, N.Y. - In a June 7 ruling, the New York Court of Appeals found that enforcement of a law that requires retailers on reservation land to prepay taxes on cigarette sales to patrons who are not members of the Seneca Nation of Indians does not run afoul of Indian Law Section 6 or the Buffalo Creek Treaty of 1842 (Eric White, et al. v. Eric Schneiderman, et al., No. 59, N.Y. App., 2018 N.Y. LEXIS 1353).

Mealey's Litigation Procedure - Deutsche Bank Awarded Partial Summary Judgment Over Alleged ERISA Violations

NEW YORK - A federal judge in New York on June 6 awarded partial summary judgment to Deutsche Bank Americas Holding Corp. and its co-defendants on allegations that they violated the Employee Retirement Income Security Act by engaging in prohibited transactions when overseeing a 401(k) plan, finding that there was no evidence that a different, more expensive class of funds was offered to members of the plan compared to those offered to other shareholders (Ramon Moreno v. Deutsche Bank Americas Holding Corp., et al., No. 15 Civ. 9936, S.D. N.Y., 2018 U.S. Dist. LEXIS 95324).

Mealey's Toxic Tort/Environmental - Judge: Company's Request To Add Environmental Claim Untimely

BUFFALO, N.Y. - A federal judge in New York on June 7 denied a company's request to vacate a judgment for it to add a claim under the Resource Conservation and Recovery Act (RCRA) to a suit it is bringing against the U.S. Environmental Protection Agency, holding that the plaintiff had years to amend its complaint (FMC Corp. v. U.S. Environmental Protection Agency, No. 14-CV-487, W.D. N.Y., 2018 U.S. Dist. LEXIS 96073).