LexisNexis® Legal Newsroom
Mealey's Labor & Employment - New York Attorney General Announces Wage Theft Suit Against Domino's, Franchisees

NEW YORK - New York State Attorney General Eric T. Schneiderman announced May 24 that his office is suing to "seek redress for and to stop widespread and systematic violations of the New York Labor Law by Domino's Pizza Inc." and three of its franchisees (The People of the State of New York v. Domino's Pizza Inc., et al., No. n/a, N.Y. Sup., New York Co.).

Mealey's Labor & Employment - 2nd Circuit Panel Affirms Dismissal Of Citigroup Class Action

NEW YORK - A federal appeals panel on May 23 affirmed a New York federal judge's dismissal of a class action against Citigroup Inc. brought under the Employee Retirement Income Security Act on the grounds that it is barred by the law's three-year statute of limitations (Steven Muehlgay, et al. v. Citigroup Inc., et al., No. 15-2461, 2nd Cir.; 2016 U.S. App. LEXIS 9349).

Mealey's PI/Product Liability - 2nd Circuit Vacates Judgment In Fatal Fall Suit, Citing Potential Jury Bias

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 24 found that a trial court erred in failing to make a determination whether a juror was dismissed by the defendants based on race, vacating judgment in a wrongful death suit (Chan Young Bak v. Metro-North Railroad Co., et al., No. 15-1963, 2nd Cir.; 2016 U.S. App. LEXIS 9470).

Mealey's PI/Product Liability - Relevant Factors Weigh In Favor Of Transfer Of Securities Suit, Judge Says

NEW YORK - Transfer of a securities class action lawsuit to another federal district court is proper because shareholders' claims could have been brought in that court and because the relevant factors "overwhelmingly support transfer of this action to the District," a federal judge in New York ruled May 19 (William Ahrens, et al. v. CTI Biopharma Corp., et al., No. 16-1044, S.D. N.Y.; 2016 U.S. Dist. LEXIS 66139).

Mealey's Litigation Procedure - Relevant Factors Weigh In Favor Of Transfer Of Securities Suit, Judge Says

NEW YORK - Transfer of a securities class action lawsuit to another federal district court is proper because shareholders' claims could have been brought in that court and because the relevant factors "overwhelmingly support transfer of this action to the District," a federal judge in New York ruled May 19 (William Ahrens, et al. v. CTI Biopharma Corp., et al., No. 16-1044, S.D. N.Y.; 2016 U.S. Dist. LEXIS 66139).

Mealey's Securities/D&O Liability - Relevant Factors Weigh In Favor Of Transfer Of Securities Suit, Judge Says

NEW YORK - Transfer of a securities class action lawsuit to another federal district court is proper because shareholders' claims could have been brought in that court and because the relevant factors "overwhelmingly support transfer of this action to the District," a federal judge in New York ruled May 19 (William Ahrens, et al. v. CTI Biopharma Corp., et al., No. 16-1044, S.D. N.Y.; 2016 U.S. Dist. LEXIS 66139).

Mealey's Litigation Procedure - 2nd Circuit Vacates Dismissal Of LIBOR Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 23 vacated an order dismissing a case alleging manipulation of the U.S. Dollar London Interbank Offered Rate (LIBOR) that had been consolidated with others in a multidistrict litigation, finding that horizontal price-fixing constitutes a per se antitrust violation, a plaintiff alleging such a violation does not need to separately plead harm to competition and a consumer who pays a higher price on account of horizontal price-fixing suffers antitrust injury (Ellen Gelboim, et al. v. Bank of America Corporation, et al., Nos. 13-3565, 13-3636, 15-432, 15-441, 15-454, 15-477, 15-494, 15-498, 15-524, 15-537, 15-547, 15-551, 15-611, 15-620, 15-627, 15-733, 15-744, 15-778, 15-825 and 15-830, 2nd Cir.; 2016 U.S. App. LEXIS 9366).

Mealey's Banking & Finance - 2nd Circuit Reverses Verdict Ordering Countrywide To Pay $1.27B In Penalties

NEW YORK - After finding that a jury had no legally sufficient basis on which to find that misrepresentations alleged by the U.S. government were made with contemporaneous fraudulent intent, the Second Circuit U.S. Court of Appeals on May 23 reversed a judgment ordering a lender and the chief operating officer of its Full Spectrum Lending Division (FSL) to pay $1.28 billion in civil penalties (United States Ex Rel. Edward O'Donnell v. Countrywide Home Loans, Inc., et al., Nos. 15-496, 15-499, 2nd Cir.; 2016 U.S. App. LEXIS 9365).

Mealey's Toxic Tort/Environmental - 2nd Circuit: Plaintiffs' New Evidence In Bhopal, India, Injury Case 'Insufficient'

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 24 ruled that the lead plaintiff in a putative class action that alleges personal injuries from exposure to fugitive chemicals from the closed Bhopal, India, pesticide refinery from which methyl isocyanate was released in 1984 failed to show that the court had new evidence that was sufficient to raise an issue of material fact in opposition to the defendant's summary judgment motion (Jargarnath Sahu, et al. v. Union Carbide Corp., et al., No. 14-3087, S.D. N.Y.).

Mealey's Insurance - Insured's Misrepresentations Were Material; Rescission Was Justified, 2nd Circuit Says

NEW YORK - Because an insured failed to disclose material information about a dry dock's condition to its insurers, the insurers were entitled to rescind the policies, the Second Circuit U.S. Court of Appeals said May 20 (Fireman's Fund Insurance Company, et al. v. Great American Insurance Company of New York, et al., No. 14-1346, 2nd Cir.; 2016 U.S. App. LEXIS 9306).

Mealey's Litigation Procedure - Judge Stays Enforcement Of Confirmation Of Arbitration Awards

NEW YORK - A federal judge in New York on May 17 granted a Brazilian insurer's motion to stay enforcement of the confirmation of a number of reinsurance arbitration awards while the confirmations are pending appeal (National Indemnity Company v. IRB Brasil Resseguros S.A., No. 15-cv-03975, S.D. N.Y.).

Mealey's Litigation Procedure - Insurer Says Party-Appointed Arbitrators Are Not Supposed To Be Neutral

NEW YORK - An insurer brought up in a federal court in New York on May 17 the Second Circuit U.S. Court of Appeals' recent decision in the NFL "Deflategate" case, claiming that party-appointed arbitrators are not meant to be neutral but only disinterested (Certain Underwriting Members at Lloyd's, London Subscribing to Treaty No. 0272/04 v. Insurance Company of the Americas, No. 16-cv-00374, S.D. N.Y.).

Mealey's Insurance - Insurer Says Party-Appointed Arbitrators Are Not Supposed To Be Neutral

NEW YORK - An insurer brought up in a federal court in New York on May 17 the Second Circuit U.S. Court of Appeals' recent decision in the NFL "Deflategate" case, claiming that party-appointed arbitrators are not meant to be neutral but only disinterested (Certain Underwriting Members at Lloyd's, London Subscribing to Treaty No. 0272/04 v. Insurance Company of the Americas, No. 16-cv-00374, S.D. N.Y.).

Mealey's Insurance - Judge Stays Enforcement Of Confirmation Of Arbitration Awards

NEW YORK - A federal judge in New York on May 17 granted a Brazilian insurer's motion to stay enforcement of the confirmation of a number of reinsurance arbitration awards while the confirmations are pending appeal (National Indemnity Company v. IRB Brasil Resseguros S.A., No. 15-cv-03975, S.D. N.Y.).

Mealey's Labor & Employment - 2nd Circuit Panel Affirms Dismissal Of Cancer Victim's COBRA Claims

NEW YORK - A federal appeals panel on May 19 ruled that a New York federal judge did not err in dismissing New York City Human Rights Law (NYCHRL) and Consolidated Omnibus Budget Reconciliation Act (COBRA) claims brought by a cancer victim who was fired by a medical center when she exhausted her leave of absence under the Family Medical Leave Act (FMLA) (Mirelle Vangas, et al. v. Montefiore Medical Center, et al., Nos. 15-1514, 15-1562, 2nd Cir.; 2016 U.S. App. LEXIS 9124).

Mealey's Antitrust/Unfair Competition - Mars Inc. Accused Of Deceptively Packaging Rice In Oversized Box

OAKLAND, Calif. - A California man and New York woman filed a class complaint on May 17, accusing Mars Inc. of deceptively packaging its Uncle Ben's rice products in boxes containing up to 50 percent empty space to make buyers think they are getting a better value (Eric Lankenau-Ray, et al. v. Mars, Inc., No. 16-2660, N.D. Calif.).

Mealey's Litigation Procedure - Mars Inc. Accused Of Deceptively Packaging Rice In Oversized Box

OAKLAND, Calif. - A California man and New York woman filed a class complaint on May 17, accusing Mars Inc. of deceptively packaging its Uncle Ben's rice products in boxes containing up to 50 percent empty space to make buyers think they are getting a better value (Eric Lankenau-Ray, et al. v. Mars, Inc., No. 16-2660, N.D. Calif.).

Mealey's Toxic Tort/Environmental - Chemical Injury Plaintiffs: 2nd Circuit Should Reverse Order To Dismiss Claims

NEW YORK - A group of plaintiffs who allege that they have been harmed as a result of exposure to wood treated with creosote from a chemical company's operation in Pennsylvania on May 18 filed a brief in the Second Circuit U.S. Court of Appeals, contending that a district court erred when it ordered them to dismiss their claims against the company that treated the wood with chemicals (Tronox Incorporated v. Anadarko Petroleum Corporation, No. 14-5495, 2nd Cir.).

Mealey's IP/Tech - 2nd Circuit Vacates Nominative Fair Use Finding In Trademark Case

NEW YORK - A Connecticut federal judge erroneously considered source confusion to be the only relevant type of confusion when assessing the merits of an infringement claim surrounding use of a certification mark, the Second Circuit U.S. Court of Appeals ruled May 18, reversing and remanding a grant of summary judgment (International Information Systems Security Certification Consortium Inc. v. Security University, et al., No. 14-3456, 2nd Cir.; 2016 U.S. App. LEXIS 9045).

Mealey's IP/Tech - Panel: Sale Of Counterfeit Fendi Products Not An Advertising Injury; No Coverage

NEW YORK - The Second Circuit U.S. Court of Appeals on May 17 affirmed a lower federal court's ruling that an insurer has no duty to indemnify the $34.9 million awarded against its insureds in two underlying lawsuits because the insureds' liability was based upon the sale of counterfeit Fendi products and not upon an "advertising injury" pursuant to the policies (United States Fidelity & Guaranty Co. v. Fendi Adele, et al., Nos. 14-3435 and 14-3474, 2nd Cir.; 2016 U.S. App. LEXIS 8973).

Mealey's PI/Product Liability - 2nd Circuit Affirms Judgment In Lipitor Off-Label False Claims Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on May 17 affirmed partial summary judgment in a Lipitor False Claims Act lawsuit, agreeing that guidelines for the use of cholesterol-lowering prescription drugs cannot form the basis of claims that Pfizer Inc. marketed the drugs for off-label use (United States of America, ex rel. Dr. Jesse Polansky v. Pfizer, Inc., No. 14-4774, 2nd Cir.; 2016 U.S. App. LEXIS 8974).

Mealey's Insurance - Panel: Sale Of Counterfeit Fendi Products Not An Advertising Injury; No Coverage

NEW YORK - The Second Circuit U.S. Court of Appeals on May 17 affirmed a lower federal court's ruling that an insurer has no duty to indemnify the $34.9 million awarded against its insureds in two underlying lawsuits because the insureds' liability was based upon the sale of counterfeit Fendi products and not upon an "advertising injury" pursuant to the policies (United States Fidelity & Guaranty Co. v. Fendi Adele, et al., Nos. 14-3435 and 14-3474, 2nd Cir.; 2016 U.S. App. LEXIS 8973).

Mealey's Litigation Procedure - Reinsurer Says Foreign Insurer Should Post Bond Exceeding $5M

NEW YORK - A reinsurer on May 16 asked a federal court in New York to order a foreign insurer to post a bond to cover a $5 million settlement with an underlying insured, certain attorney fees and costs while an appeal of the court's confirmation of a number of arbitration awards is pending (National Indemnity Company v. IRB Brasil Resseguros S.A., No. 15-cv-03975, S.D. N.Y.).

Mealey's Litigation Procedure - New York Federal Magistrate Denies Motion For Protective Order In Environmental Suit

BROOKLYN, N.Y. - A New York federal magistrate judge on May 16 denied a motion for protective order filed by insurers in an environmental liabilities coverage suit after determining that the insurers are required to produce reinsurance agreements that relate to policies for which the insured is seeking monetary damages (Certain Underwriters at Lloyd's London, et al. v. National Railroad Passenger Corp., et al., No. 14-04717, E.D. N.Y.; 2016 U.S. Dist. LEXIS 64088).

Mealey's Insurance - Reinsurer Says Foreign Insurer Should Post Bond Exceeding $5M

NEW YORK - A reinsurer on May 16 asked a federal court in New York to order a foreign insurer to post a bond to cover a $5 million settlement with an underlying insured, certain attorney fees and costs while an appeal of the court's confirmation of a number of arbitration awards is pending (National Indemnity Company v. IRB Brasil Resseguros S.A., No. 15-cv-03975, S.D. N.Y.).