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Mealey's Toxic Tort/Environmental - New York Investigation Reveals Housing Authority Falsified Lead-Hazard Reports

NEW YORK - The New York Department of Investigation (DOI) on Nov. 15 issued a report indicating that the New York City Housing Authority (NYCHA) failed to conduct mandatory safety inspections for lead paint during a four-year period beginning in 2013 but falsified reports to the U.S. Department of Housing and Urban Development stating that the NYCHA was in compliance with federal laws pertaining to those inspections.

Mealey's Litigation Procedure - Judge: Investors Pleaded Scienter In Making Federal Securities Law Claims

NEW YORK - Shareholders in a securities class action lawsuit against car maker Fiat Chrysler Automobiles N.V. (Chrysler), certain of its executive officers and others have properly pleaded scienter and falsity in making their federal securities law claims by showing that the defendants concealed certain emissions-based issues with several of Chrysler's automobiles, a federal judge in New York ruled Nov. 13 in denying the defendants' motion to dismiss (Victor Pirnik v. Fiat Chrysler Automobiles N.V., et al., No. 15-7199, S.D. N.Y.; 2017 U.S. Dist. LEXIS 187264).

Mealey's Antitrust/Unfair Competition - Judge Remands UCL, HBOR Claims To California Court, Finds Trustee Is Not Immune

LOS ANGELES - After finding that a trustee named in an action filed by a borrower was not a sham defendant, a California federal judge on Nov. 13 remanded her causes of action for violation of California's unfair competition law (UCL), wrongful foreclosure and other claims to a state court (Nancy M. Horner v. The Bank of New York Mellon, et al., No. 17-1489, C.D. Calif., 2017 U.S. Dist. LEXIS 187362).

Mealey's Banking & Finance - Judge Remands UCL, HBOR Claims To California Court, Finds Trustee Is Not Immune

LOS ANGELES - After finding that a trustee named in an action filed by a borrower was not a sham defendant, a California federal judge on Nov. 13 remanded her causes of action for violation of California's unfair competition law (UCL), wrongful foreclosure and other claims to a state court (Nancy M. Horner v. The Bank of New York Mellon, et al., No. 17-1489, C.D. Calif., 2017 U.S. Dist. LEXIS 187362).

Mealey's Litigation Procedure - Federal Judge Vacates Confirmation Of $146M ICSID Award Against Spain

NEW YORK - After recent appeals court rulings in which panels reversed district court judgments granting ex parte petitions for failure to comply with the Foreign Sovereign Immunities Act of 1976 (FSIA), a New York federal judge on Nov. 13 reversed his previous ruling confirming a $146,079,996 award issued against the Kingdom of Spain (Eiser Infrastructure, et al. v. Kingdom of Spain, No. 17-3808, S.D. N.Y.).

Mealey's Securities/D&O Liability - Judge: Investors Pleaded Scienter In Making Federal Securities Law Claims

NEW YORK - Shareholders in a securities class action lawsuit against car maker Fiat Chrysler Automobiles N.V. (Chrysler), certain of its executive officers and others have properly pleaded scienter and falsity in making their federal securities law claims by showing that the defendants concealed certain emissions-based issues with several of Chrysler's automobiles, a federal judge in New York ruled Nov. 13 in denying the defendants' motion to dismiss (Victor Pirnik v. Fiat Chrysler Automobiles N.V., et al., No. 15-7199, S.D. N.Y.; 2017 U.S. Dist. LEXIS 187264).

Mealey's Toxic Tort/Environmental - MTBE MDL Judge Recommends Remanding Water District's Suit To California Court

NEW YORK - The federal judge in New York presiding over litigation stemming from groundwater contamination caused by the gasoline additive methyl tertiary butyl ether (MTBE) on Nov. 13 recommended remanding the Orange County Water District's (OCWD) lawsuit to California federal court, finding that all consolidated pretrial proceedings in the suit have been completed (In re: Methyl Tertiary Butyl Ether (MTBE) Products liability Litigation, MDL 1358, Orange County Water District v. Unocal, et al., No. 04 Civ. 4968, S.D. N.Y., 2017 U.S. Dist. LEXIS 187458).

Mealey's IP/Tech - Arbitration Ordered In Class Suit Over Faulty Live Steam Of Mayweather Fight

NEW YORK - A class complaint alleging that the live stream of an August boxing match suffered from technical failures and caused pay-per-view viewers to miss large portions of the fight was stayed Nov. 7 by a New York federal judge, who ordered the matter to arbitration (Victor Mallh, et al. v. Showtime Networks Inc., No. 17-6549, S.D. N.Y., 2017 U.S. Dist. LEXIS 184471).

Mealey's Litigation Procedure - Arbitration Ordered In Class Suit Over Faulty Live Steam Of Mayweather Fight

NEW YORK - A class complaint alleging that the live stream of an August boxing match suffered from technical failures and caused pay-per-view viewers to miss large portions of the fight was stayed Nov. 7 by a New York federal judge, who ordered the matter to arbitration (Victor Mallh, et al. v. Showtime Networks Inc., No. 17-6549, S.D. N.Y., 2017 U.S. Dist. LEXIS 184471).

Mealey's Litigation Procedure - 2nd Circuit Affirms Rejection Of DMCA Claim, Denial Of Attorney Fees

NEW YORK - A New York federal judge did not err in rejecting allegations that a licensee violated the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 1201(a), when it modified security measures to prevent two software programs from self-enforcing certain licensing restrictions because the plaintiffs failed to demonstrate the copyrightability of the underlying programs, the Second Circuit U.S. Court of Appeals ruled Nov. 8 (Dynamic Concepts Inc. and Point 4 Data Corp. v. Tri-State Surgical Supply, et al., Nos. 15-0563, -3212, 2nd Cir., 2017 U.S. App. LEXIS 22348).

Mealey's Labor & Employment - Consolidated Edison Will Pay $800,000 To Settle Disability Bias Suit

NEW YORK - Consolidated Edison Company of New York Inc. (Con Edison) has agreed to pay $800,000 and provide other relief to settle a lawsuit accusing the employer's doctors of refusing to medically approve qualified candidates to commence their employment due to their disabilities, the Equal Employment Opportunity Commission announced Nov. 8 (U.S. Equal Employment Opportunity Commission v. Consolidated Edison Company of New York, Inc., No. 17-7390, S.D. N.Y.).

Mealey's IP/Tech - 2nd Circuit Affirms Rejection Of DMCA Claim, Denial Of Attorney Fees

NEW YORK - A New York federal judge did not err in rejecting allegations that a licensee violated the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 1201(a), when it modified security measures to prevent two software programs from self-enforcing certain licensing restrictions because the plaintiffs failed to demonstrate the copyrightability of the underlying programs, the Second Circuit U.S. Court of Appeals ruled Nov. 8 (Dynamic Concepts Inc. and Point 4 Data Corp. v. Tri-State Surgical Supply, et al., Nos. 15-0563, -3212, 2nd Cir., 2017 U.S. App. LEXIS 22348).

Mealey's IP/Tech - Twitter Users, DOJ Move For Summary Judgment In Trump Account-Blocking Suit

NEW YORK - Responding to a summary judgment motion filed by the U.S. Department of Justice (DOJ), on behalf of President Donald J. Trump and three top aides, a group of people that have been blocked from the president's Twitter account filed a cross-motion on Nov. 3 in New York federal court, defending their claims under the First Amendment to the U.S. Constitution (Knight First Amendment Institute at Columbia University, et al. v. Donald J. Trump, et al., No. 1:17-cv-05205, S.D. N.Y.).

Mealey's Insurance - New York Federal Judge Allows Breach Of Contract Claims To Stand Against Insurer

UTICA, N.Y. - A New York federal judge on Nov. 7 granted an insurer's motion to dismiss eight claims alleged by an insured seeking coverage for water and mold damages after determining that the insured plausibly alleged that the insurer breached its contract but failed to prove that the insurer's conduct amounted to any tortious behavior (Edmund G. Sanderson v. First Liberty Insurance Corp., No. 16-644, N.D. N.Y., 2017 U.S. Dist. LEXIS 184468).

Mealey's Litigation Procedure - New York Federal Judge Grants Insurer, Reinsurer's Fact Discovery Extension

NEW YORK - In a reinsurance coverage dispute for a trucking accident, a New York federal judge on Nov. 2 granted an extension for an insurer and a reinsurer on a discovery deadline because a dispute remains in the underlying action concerning any interest owed by the insurer (Endurance Assurance Corp. v. Florists' Mutual Insurance Co., et al., No. 16-09955, S.D. N.Y.).

Mealey's Insurance - New York Federal Judge Grants Insurer, Reinsurer's Fact Discovery Extension

NEW YORK - In a reinsurance coverage dispute for a trucking accident, a New York federal judge on Nov. 2 granted an extension for an insurer and a reinsurer on a discovery deadline because a dispute remains in the underlying action concerning any interest owed by the insurer (Endurance Assurance Corp. v. Florists' Mutual Insurance Co., et al., No. 16-09955, S.D. N.Y.).

Mealey's Insurance - Judge: Antagonistic Defenses Do Not Warrant Severing Insurance Fraud Defendants

NEW YORK - A federal judge in New York on Nov. 3 denied motions filed by two doctors seeking to sever their claims from a criminal insurance fraud indictment, finding that the defendants' antagonistic defenses and the possibility of prejudicial spillover did not warrant severance (United States of America v. Asim Hameedi, et al., No. 17 Cr. 137, S.D. N.Y., 2017 U.S. Dist. LEXIS 182790).

Mealey's IP/Tech - 2nd Circuit Affirms: Claimed Trade Dress Is Functional, Unprotectable

NEW YORK - A New York federal judge did not err in determining, following a bench trial, that a declaratory judgment plaintiff's bag closure products do not infringe or dilute a competitor's trade dress, the Second Circuit U.S. Court of Appeals concluded Nov. 2 (Schutte Bagclosures Inc. and Schutte Bagclosures B.V. v. Kiwk Lok Corporation, No. 16-2767, 2nd Cir., 2017 U.S. App. LEXIS 21864).

Mealey's Litigation Procedure - 2nd Circuit Affirms Dismissal Of Suit Over Weight Watchers Site 'Glitches'

NEW YORK - In a Nov. 2 summary order, a Second Circuit U.S. Court of Appeals panel found that a breach of contract claim over problems with the website and app of Weight Watchers International Inc. failed because the site was offered on an "as is" basis, affirming a trial court's dismissal of a putative class action (Raymond M. Roberts v. Weight Watchers International Inc., No. 16-3865, 2nd Cir., 2017 U.S. App. LEXIS 21874).

Mealey's Securities/D&O Liability - Summary Judgment Ruling In Short-Swing Profit Suit Was Erroneous, Investor Says

NEW YORK - A federal district court erred in granting summary judgment to defendants in a shareholder derivative lawsuit against hedge funds and a hedge fund manager because the defendants did not meet the statutory guidelines necessary to avoid disgorgement of certain short-swing profits they obtained as part of a stock purchase agreement (SPA) and stock exchange agreement (EA) the defendants had with freight shipping company YRC Worldwide Inc., a YRC shareholder argues in an Oct. 31 appellant brief filed in the Second Circuit U.S. Court of Appeals (Andrew E. Roth v. Solus Alternative Asset Management LP, et al., No. 17-2287, 2nd Cir.).

Mealey's IP/Tech - 2nd Circuit Affirms Dismissal Of Suit Over Weight Watchers Site 'Glitches'

NEW YORK - In a Nov. 2 summary order, a Second Circuit U.S. Court of Appeals panel found that a breach of contract claim over problems with the website and app of Weight Watchers International Inc. failed because the site was offered on an "as is" basis, affirming a trial court's dismissal of a putative class action (Raymond M. Roberts v. Weight Watchers International Inc., No. 16-3865, 2nd Cir., 2017 U.S. App. LEXIS 21874).

Mealey's Litigation Procedure - Court's Dismissal Of Etsy Securities Class Action Was Proper, Defendants Argue

NEW YORK - A federal district court properly dismissed a securities class action lawsuit against the operator of an online marketplace, certain of its executive officers and underwriters of the company's initial public offering (IPO) because shareholders failed to plead any actionable misstatements or omissions or the necessary elements of scienter in making their federal securities law claims, the defendants argue in a Nov. 1 appellee brief filed in the Second Circuit U.S. Court of Appeals (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 17-1180, 2nd Cir.).

Mealey's Securities/D&O Liability - Court's Dismissal Of Etsy Securities Class Action Was Proper, Defendants Argue

NEW YORK - A federal district court properly dismissed a securities class action lawsuit against the operator of an online marketplace, certain of its executive officers and underwriters of the company's initial public offering (IPO) because shareholders failed to plead any actionable misstatements or omissions or the necessary elements of scienter in making their federal securities law claims, the defendants argue in a Nov. 1 appellee brief filed in the Second Circuit U.S. Court of Appeals (Saleh Altayyar, et al. v. Etsy Inc., et al., No. 17-1180, 2nd Cir.).

Mealey's Insurance - New York Federal Judge Approves Settlement Of Some Environmental Claims

NEW YORK - A New York federal judge on Oct. 30 entered an order endorsing a settlement in which an insured agreed that certain underlying environmental contamination claims are not covered under two environmental hazard insurance policies issued to the insured in the 1980s (Travelers Indemnity Co., et al. v. Northrop Grumman Corp., et al., Nos. 16-8778, 12-3040, S.D. N.Y., 2017 U.S. Dist. LEXIS 180486).

Mealey's Litigation Procedure - New York Federal Judge Refuses To Strike Unaccepted Judgment Offer

NEW YORK - A New York federal judge on Oct. 30 denied a motion to strike an unaccepted offer of judgment filed by the lead plaintiffs suing New York City for seizing their food carts, opining that since there is not yet a certified class, offers of judgment on the lead plaintiffs' individual claims are appropriate (Sanwar Ahmed, et al. v. City of New York, et al., No. 17-3044, S.D. N.Y., 2017 U.S. Dist. LEXIS 179531).