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.).
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).
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.).
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).
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).
SYRACUSE, N.Y. - An expert witness for a former college student who was kicked out of school for allegedly sexually assaulting three female students cannot testify about the "presumption of trauma" for rape victims or any other aspect of the accused's human rights case against the college because her testimony is "replete with speculation, improper legal conclusions, and opinions that she is unqualified to make," a New York federal judge ruled Oct. 31 (John Doe v. Colgate University, et al., No. 5:15-cv-1069, N.D. N.Y., 2017 U.S. Dist. LEXIS 180267).
NEW YORK - In a reinsurance coverage dispute for a trucking accident, an insurer on Oct. 26 filed a letter with a New York federal court, seeking an extension for it 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.).
NEW YORK - A district court properly found that an insurer did not act in bad faith when handling an insurer's claim related to the settlement of an underlying personal injury suit arising out of a boating accident because the insured failed to prove that the insurer acted with gross disregard of the insured's interest, the Second Circuit U.S. Court of Appeals said Oct. 27 (Sea Tow International Inc. v. St. Paul Fire & Marine Insurance Co., et al., No. 16-3672, 2nd Cir., 2017 U.S. App. LEXIS 21308).
UTICA, N.Y. - In a dispute over a $325 million settlement of asbestos claims, an insurer in an Oct. 25 letter asks a New York federal court to deny a reinsurer's request to preclude a constructive notice argument, the use of prior court decisions and settlements and expert testimony (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-00853, N.D. N.Y.).
NEW YORK - Deutsche Bank AG will pay $220 million to settle claims with the attorneys general of 44 states and the District of Columbia that it manipulated the U.S. Dollar London Interbank Offered Rate (LIBOR) and other benchmark interest rates, according to a press release issued Oct. 25 by New York Attorney General Eric Schneiderman.
NEW YORK - The Second Circuit U.S. Court of Appeals on Oct. 24 affirmed the exclusion of general causation experts in the Mirena multidistrict litigation and a court order terminating the MDL before any trials were held (In Re: Mirena IUD Products Liability Litigation, Mirena MDL Plaintiffs v. Bayer HealthCare Pharmaceuticals, Inc., Nos. 16-2890 and 16-3012, 2nd Cir., 2017 U.S. App. LEXIS 20875).
NEW YORK - The New York Court of Appeals on Oct. 19 accepted an amicus curiae brief by insurers arguing that the "follow-the-form" provision mandates concurrency between insurance and reinsurance in the context of expense coverage (Global Reinsurance Corporation of America v. Century Indemnity Co., No. CTQ-2016, 0005, N.Y. App., 2017 N.Y. LEXIS 3118).
NEW YORK - A New York federal judge on Oct. 19 declined to reconsider a prudence claim and a failure-to-monitor claim brought by plaintiffs in an Employee Retirement Income Security Act lawsuit accusing New York University (NYU) of breach of fiduciary duty, finding that the plaintiffs failed to present sufficient evidence to support either claim (Dr. Alan Sacerdote, et al. v. New York University, et al., No. 1:16-cv-6284, S.D. N.Y., 2017 U.S. Dist. LEXIS 173599).
ROCHESTER, N.Y. - A New York federal judge on Oct. 23 granted a federal flood insurer's motion for summary judgment in a flood coverage dispute, finding that the insureds failed to timely submit a signed and sworn proof of loss for all their alleged damages caused by a June 1, 2015, flood (John Scharr, et al. v. Selective Insurance Company of New York, et al., No. 16-06821, W.D. N.Y., 2017 U.S. Dist. LEXIS 175222).
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Oct. 23 found that a district court erred when it granted an ex parte petition filed by a group of Swedish investors to confirm a $185,530,618 international arbitral award issued against Romania, finding that the court erred in concluding that the Foreign Sovereign Immunities Act (FSIA) did not apply (Ioan Micula, et al. v. Government of Romania, No. 15-3109-cv, 2nd Cir.).
NEW YORK - A declaratory insurance coverage action filed by Chapter 11 debtor Rapid-American Corp. is not the proper vehicle for insurers to use in search of evidence of fraud in the asbestos trust system, the debtor says in an Oct. 20 motion and memorandum seeking protection from the insurers' subpoenas in New York federal bankruptcy court (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).
NEW YORK - The Ministry of Defense of the Bolivarian Republic of Venezuela on Oct. 16 moved a New York federal court to dismiss a petition filed by a Canadian company that seeks to obtain payment from a trust held by a bank to satisfy a $1.2 billion arbitral award, arguing that the requested assets are immune from execution under the Foreign Sovereign Immunities Act (FSIA) (Crystallex International Corp. v. The Bank of New York Mellon, No. 1:17-cv-07024, S.D. N.Y.).
NEW YORK - A New York appeals court affirmed on Oct. 12 that an insured's environmental claim submitted to an insolvent insurer is barred by res judicata and collateral estoppel, based on prior rulings on the same claim and issues (Northern States Power Co. v. Maria T. Vullo, No. 41294/86, N.Y. App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 7195).
NEW YORK - A New York federal judge on Oct. 12 overruled a disability claimant's objections to a magistrate judge's order denying the claimant's request for statistical information on claim acceptance rates by a disability insurer after determining that the requested statistics do not directly relate to the disability claim at issue (Cherylle McFarlane v. First Unum Life Insurance Co., No. 16-7806, S.D. N.Y., 2017 U.S. Dist. LEXIS 169052).
NEW YORK - The Second Circuit U.S. Court of Appeals on Oct. 11 affirmed a Connecticut federal judge's dismissal of a retirement plan participant's suit alleging that the plan's service provider breached its fiduciary duties, determining that the plan participant failed to prove that a fee-sharing agreement between the service provider and the plan was a violation of the Employee Retirement Income Security Act (Richard A. Rosen v. Prudential Retirement Insurance and Annuity Co., No. 17-0239, 2nd Cir., 2017 U.S. App. LEXIS 19821).