LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - 2nd Circuit Panel Affirms Dismissal Of Securities Class Action Pursuant To Omnicare

NEW YORK - A federal district court did not err in dismissing two related securities class action lawsuits for failure to plead a material misrepresentation pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers District Council Construction Industry Pension Fund and The Cement Masons Local 526 Combined Funds because the defendants' optimistic statements were not misleading, a Second Circuit U.S. Court of Appeals panel ruled March 7 (Gen. Partner Glenn Tongue, et al. v. Sanofi, et al., Nos. 15-588 and 15-623, 2nd Cir.; 2016 U.S. App. LEXIS 4107).

Mealey's Banking & Finance - 2nd Circuit Upholds Verdict In Favor Of Mortgage Companies On Fraud Claim

NEW YORK - A trial judge did not err in allowing a lawyer to testify about his meeting with a plaintiff regarding signatures for mortgage loan documents, the Second Circuit U.S. Court of Appeals ruled March 8, affirming a verdict in favor of mortgage companies on a fraud claim (Linda D. Crawford v. Tribeca Lending Corp., et al., No. 15-1403, 2nd Cir.; 2016 U.S. App. LEXIS 4305).

Mealey's IP/Tech - Motion By Copyright Defendant Denied By New York Federal Judge

NEW YORK - A defendant's claim that it possessed a license to use three copyrighted images belonging to Playboy Enterprises International Inc. were met with skepticism March 8 by a New York federal judge, who denied a motion to dismiss case (Playboy Enterprises International Inc. v. Mediatakeout.com LLC, No. 15-7053, S.D. N.Y.; 2016 U.S. Dist. LEXIS 29249).

Mealey's Insurance - 2nd Circuit Finds Error In Judge's Construction Of Phrase In Insurance Policy

NEW YORK - Finding error in the construction of the phrase "caused only by" in an insurance policy, the Second Circuit U.S. Court of Appeals on March 7 vacated a judgment in favor of an insurer and remanded for a determination as to whether the policy's coverage for loss involving collapse is properly characterized as "all-risk" coverage or "named perils" coverage (Paul Fabozzi, et al. v. Lexington Insurance Co., No. 15-911, 2nd Cir.; 2016 U.S. App. LEXIS 4206).

Mealey's Litigation Procedure - 2nd Circuit Upholds Verdict In Favor Of Mortgage Companies On Fraud Claim

NEW YORK - A trial judge did not err in allowing a lawyer to testify about his meeting with a plaintiff regarding signatures for mortgage loan documents, the Second Circuit U.S. Court of Appeals ruled March 8, affirming a verdict in favor of mortgage companies on a fraud claim (Linda D. Crawford v. Tribeca Lending Corp., et al., No. 15-1403, 2nd Cir.; 2016 U.S. App. LEXIS 4305).

Mealey's Labor & Employment - Judge Allows Testimony In Securities Fraud Lawsuit On Fiduciary Duty Standards

ALBANY, N.Y. - In a securities fraud action filed by employees, a New York federal judge on March 7 allowed certain testimony from defense experts on fiduciary duty standards and when the employer should have disclosed a financial investment offer (Clifford P. Beede, et al. v. Stiefel Laboratories, Inc. and Charles W. Stiefel, No. 13-120, N.D. N.Y.; 2016 U.S. Dist. LEXIS 28304).

Mealey's Securities/D&O Liability - Judge Allows Testimony In Securities Fraud Lawsuit On Fiduciary Duty Standards

ALBANY, N.Y. - In a securities fraud action filed by employees, a New York federal judge on March 7 allowed certain testimony from defense experts on fiduciary duty standards and when the employer should have disclosed a financial investment offer (Clifford P. Beede, et al. v. Stiefel Laboratories, Inc. and Charles W. Stiefel, No. 13-120, N.D. N.Y.; 2016 U.S. Dist. LEXIS 28304).

Mealey's Litigation Procedure - DOJ Argues That Apple's Assistance In IPhone Search Is Authorized, Necessary

BROOKLYN, N.Y. - One week after a federal magistrate judge denied its motion to compel Apple Inc. to assist in obtaining access to an iPhone seized during a criminal investigation, the U.S. government on March 7 appealed that ruling in New York federal court, calling its request a "routine application" that has been made of Apple "dozens of times before" and with which the technology firm has always complied (In re Order Requiring Apple Inc. to Assist in the Execution of a Search Warrant Issued by This Court, No. 1:15-mc-01902, E.D. N.Y.).

Mealey's Litigation Procedure - Judge Allows Testimony In Securities Fraud Lawsuit On Fiduciary Duty Standards

ALBANY, N.Y. - In a securities fraud action filed by employees, a New York federal judge on March 7 allowed certain testimony from defense experts on fiduciary duty standards and when the employer should have disclosed a financial investment offer (Clifford P. Beede, et al. v. Stiefel Laboratories, Inc. and Charles W. Stiefel, No. 13-120, N.D. N.Y.; 2016 U.S. Dist. LEXIS 28304).

Mealey's Toxic Tort/Environmental - Judge Denies 8 Motions To Bar Expert Testimony In GE Pollution Liability Suit

UTICA, N.Y. - A New York federal judge on March 3 denied eight motions to exclude various experts regarding liability and cleanup practices in environmental lawsuits between a town, county, water authority and General Electric Co. (GE) (Town of Halfmoon and County of Saratoga v. General Electric Co., No. 09-228; Saratoga County Water Authority v. General Electric Co., No. 11-6, N.D. N.Y.; 2016 U.S. Dist. LEXIS 26888).

Mealey's PI/Product Liability - MDL Judge Grants Partial Summary Judgment To GM In 2nd Bellwether

NEW YORK - The judge overseeing the General Motors ignition switch multidistrict litigation on March 3 granted General Motor LLC's motion for partial summary judgment in the next bellwether case, scheduled for trial March 14, saying that the plaintiffs are unable to show that General Motors LLC manufactured the vehicle that allegedly had a faulty ignition switch in it (In Re: General Motors LLC Ignition Switch Litigation, No. 1:14-md-02543, S.D. N.Y.).

Mealey's Litigation Procedure - Judge Denies 8 Motions To Bar Expert Testimony In GE Pollution Liability Suit

UTICA, N.Y. - A New York federal judge on March 3 denied eight motions to exclude various experts regarding liability and cleanup practices in environmental lawsuits between a town, county, water authority and General Electric Co. (GE) (Town of Halfmoon and County of Saratoga v. General Electric Co., No. 09-228; Saratoga County Water Authority v. General Electric Co., No. 11-6, N.D. N.Y.; 2016 U.S. Dist. LEXIS 26888).

Mealey's Litigation Procedure - Evidence Of Recantations Not Sufficient In Securities Class Action, Judge Rules

NEW YORK - A federal judge in New York on March 3 denied a motion for reconsideration of a previous order denying a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the recantation of information by confidential witnesses is not sufficient enough to grant reconsideration (In re Genworth Financial Inc. Securities Litigation, No. 14-2392, S.D. N.Y.).

Mealey's PI/Product Liability - United States Says Evidence Supports Guilty Verdict In Asbestos Corruption Case

NEW YORK - Evidence that former New York State Assemblyman Sheldon Silver received millions of dollars in fees from mesothelioma leads in exchange for funding research and helping the researcher's family supports a jury's verdict finding him guilty, the United States told a federal judge in New York on March 3 (United States of America v. Sheldon Silver, No. 15-93, S.D. N.Y.).

Mealey's Litigation Procedure - GM Ignition Switch MDL Judge Orders Sealing Of Settlement Documents

NEW YORK - The judge presiding over the General Motors ignition switch multidistrict litigation on March 2 granted GM's motion to seal documents relating to a settlement between thousands of drivers and GM, noting that there had been no objections to the motion (In Re: General Motors LLC Ignition Switch Litigation, No. 1:14-md-02543, S.D. N.Y.).

Mealey's PI/Product Liability - GM Ignition Switch MDL Judge Orders Sealing Of Settlement Documents

NEW YORK - The judge presiding over the General Motors ignition switch multidistrict litigation on March 2 granted GM's motion to seal documents relating to a settlement between thousands of drivers and GM, noting that there had been no objections to the motion (In Re: General Motors LLC Ignition Switch Litigation, No. 1:14-md-02543, S.D. N.Y.).

Mealey's Toxic Tort/Environmental - United States Says Evidence Supports Guilty Verdict In Asbestos Corruption Case

NEW YORK - Evidence that former New York State Assemblyman Sheldon Silver received millions of dollars in fees from mesothelioma leads in exchange for funding research and helping the researcher's family supports a jury's verdict finding him guilty, the United States told a federal judge in New York on March 3 (United States of America v. Sheldon Silver, No. 15-93, S.D. N.Y.).

Mealey's PI/Product Liability - New York Panel Reverses Ruling Dismissing Contract Claim Against Architect

NEW YORK - A New York appellate court majority on March 3 ruled that a state court judge erred in dismissing the Dormitory Authority of the State of New York's (DASNY) breach of contract claim against an architect accused on negligently overseeing the construction of the foundation of a state-of-the-art forensic biology laboratory, holding that the DASNY sufficiently showed that the City of New York was an intended third-party beneficiary to the contract (Dormitory Authority of the State of New York v. Samson Construction Co., et al., 403436/06, N.Y Sup., App. Div., 1st Dept.; 2016 N.Y. App. Div. LEXIS 1527).

Mealey's Securities/D&O Liability - Evidence Of Recantations Not Sufficient In Securities Class Action, Judge Rules

NEW YORK - A federal judge in New York on March 3 denied a motion for reconsideration of a previous order denying a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the recantation of information by confidential witnesses is not sufficient enough to grant reconsideration (In re Genworth Financial Inc. Securities Litigation, No. 14-2392, S.D. N.Y.).

Mealey's PI/Product Liability - New York Panel Upholds Ruling Awarding Summary Judgment To Foundation Builder

ALBANY, N.Y. - A New York appellate panel on March 3 affirmed a ruling awarding summary judgment to a company that constructed a foundation for a supermarket, holding that the evidence submitted demonstrated that the defendant company followed the architect's specifications when it was instructed to attach foundation slab to pile caps (Maines Paper & Food Service Inc. v. The Pike Company Inc., No. 521491, N.Y. Sup., App. Div., 3rd Dept.; 2016 N.Y App. Div. LEXIS 1537).

Mealey's PI/Product Liability - Endo Pays $200,000, Agrees To Opana ER Measures To Settle New York Investigation

NEW YORK - Endo Health Solutions Inc. and Endo Pharmaceuticals Inc. on March 1 agreed to pay a $200,000 penalty to New York, to stop misrepresenting the addictiveness of its Opana ER narcotic drug and to stop marketing the drug to health care providers who are enabling abuse of the drug (In the Matter of Endo Health Solutions Inc., et al., Assurance No. 15-228, N.Y. Atty. Gen.).

Mealey's Antitrust/Unfair Competition - Suit Alleging Overcharging By Whole Foods Tossed For Lacking Alleged Injury

NEW YORK - A New York federal judge on March 1 dismissed a consolidated complaint filed against Whole Foods Market Group Inc. accusing the chain of overcharging New York City customers for prepackaged foods, finding that the plaintiffs failed to adequately allege that they were injured (In re Whole Foods Market Group, Inc. Overcharging Litigation, No. 15-5838, S.D. N.Y.; 2016 U.S. Dist. LEXIS 24990).

Mealey's Litigation Procedure - Judge: Doctors May Testify On Defendant's Dementia In Fiduciary Duty Lawsuit

NEW YORK - Doctors may testify that a defendant's Parkinson's dementia complex resulted in "decreased cognitive function during the relevant time period" regarding the time he is accused of violating his contractual and fiduciary duties under an escrow agreement, a New York federal judge ruled March 1 (Qube Films Ltd., et al. v. Bert Padell, et al., No. 13-8405, S.D. N.Y.; 2016 U.S. Dist. LEXIS 25137).

Mealey's Insurance - Insured's Claims In Bad Faith Suit Preempted By ERISA, Judge Rules

NEW YORK - Dismissal of all state law claims in an insurance bad faith lawsuit is proper, a federal judge in New York ruled March 1, because an insured's claims against her long-term disability insurance provider are preempted by the Employee Retirement Income Security Act (ERISA) (Elizabeth Boey Chau, M.D. v. Hartford Life Insurance Co., et al., No. 14-8484, S.D. N.Y.; 2016 U.S. Dist. LEXIS 25135).

Mealey's Litigation Procedure - Suit Alleging Overcharging By Whole Foods Tossed For Lacking Alleged Injury

NEW YORK - A New York federal judge on March 1 dismissed a consolidated complaint filed against Whole Foods Market Group Inc. accusing the chain of overcharging New York City customers for prepackaged foods, finding that the plaintiffs failed to adequately allege that they were injured (In re Whole Foods Market Group, Inc. Overcharging Litigation, No. 15-5838, S.D. N.Y.; 2016 U.S. Dist. LEXIS 24990).