LexisNexis® Legal Newsroom
Mealey's Labor & Employment - New York Federal Judge Cuts Breach Of Loyalty Claims In NYU Lawsuit

NEW YORK - A New York federal judge on Aug. 25 dismissed several claims in an Employee Retirement Income Security Act class action lawsuit against New York University, saying that the plaintiffs failed to plead sufficient facts to support their claims that the university breached its duty of loyalty by not offering any factual allegations that actions taken by the university benefitted a third party or itself (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 137115).

Mealey's Insurance - Bankruptcy Judge Orders Arbitration For $15M Dispute Against Specialty Reinsurer

NEW YORK - A New York bankruptcy judge on Aug. 24 ordered a defunct brokerage company to arbitrate in Bermuda its dispute with a foreign specialty reinsurer over a $15 million policy (In re: MF Global Holdings Ltd., et al., MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 2379).

Mealey's Litigation Procedure - Investor Sues Pipe Maker, Others Over Financial Condition Misstatements

BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial condition in violation of federal securities laws, a shareholder argues in an Aug. 23 securities class action complaint filed in New York federal court (Matthew Spindler v. Forterra Inc., et al., No. 17-4978, E.D. N.Y.).

Mealey's Securities/D&O Liability - Investor Sues Pipe Maker, Others Over Financial Condition Misstatements

BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial condition in violation of federal securities laws, a shareholder argues in an Aug. 23 securities class action complaint filed in New York federal court (Matthew Spindler v. Forterra Inc., et al., No. 17-4978, E.D. N.Y.).

Mealey's PI/Product Liability - Specialty Pharmacy To Pay $13M To Settle False Claims Suit Over Chelation Drug

NEW YORK - Specialty pharmacy US Bioservices Corp. (US Bio) will pay $13.4 million to settle the federal government's allegations about US Bio's role in a Novartis Pharmaceuticals Corp. scheme to reward pharmacies for the number of prescriptions they filled for Novartis' Exjade iron chelation drug, according to a letter filed Aug. 22 with a New York federal court (United States v. US Bioservices Corp., No. 17-6353, S.D. N.Y.).

Mealey's Litigation Procedure - New York Couple To Proceed With 4 Class Claims Over Chipping Wolf Range

CENTRAL ISLIP, N.Y. - A New York federal judge on Aug. 21 permitted a New York couple to proceed with four claims they brought on behalf of a class alleging breach of warranty and negligent misrepresentation after their replacement Wolf Appliance Inc. range continued to have issues with chipping inside and Wolf refused to replace it, citing an allegedly modified warranty (Ivan and Melanie Kail, et al. v. Wolf Appliance, Inc., No. 15-3513, E.D. N.Y., 2017 U.S. Dist. LEXIS 133280).

Mealey's Litigation Procedure - Spain And Investors Submit Arguments Over Ex Parte Confirmation

NEW YORK - The Kingdom of Spain on Aug. 18 filed its reply in the U.S. District Court for the Southern District of New York to two investors' arguments challenging its motion to vacate a petition to confirm a $146,079,996 international arbitration award issued in relation to investments in solar power projects, arguing that the court has jurisdiction only under the Foreign Sovereign Immunities Act of 1976 (FSIA) (Eiser Infrastructure, et al. v. Kingdom of Spain, No. 17-3808, S.D. N.Y.).

Mealey's Insurance - Jury To Decide When, If Amtrak's Operations Caused Environmental Damage

BROOKLYN, N.Y. - A New York federal judge on Aug. 17 determined that a jury must determine when, if ever, Amtrak's operations first caused environmental damage to third-party property because both the cause of the environmental contamination and its effect on third-party property are disputed issues of fact (Certain Underwriters at Lloyd's, et al. v. National Railroad Passenger Corp., et al., No. 14-4717, E.D. N.Y.).

Mealey's Insurance - New York Panel Partly Reverses Ruling In Professional Liability Coverage Dispute

WHITE PLAINS, N.Y. - A New York appeals panel on Aug. 16 reversed a lower court's dismissal of a private equity firm's fraud, breach of fiduciary duty and aiding and abetting a breach of fiduciary duty claims against an insurance broker, a professional liability insurer and its insurance agency but affirmed the lower court's refusal to dismiss breach of contract and bad faith claims against the insurer (Fox Paine & Company, LLC, et al. v. Houston Casualty Company, et al., No. 2014-11903, N.Y. Sup., App. Div., 2nd Dept., 2017 N.Y. App. Div. LEXIS 6123).

Mealey's Litigation Procedure - 2nd Circuit Orders Arbitration Of Uber Price-Fixing Claims Unless It Waived Its Right

NEW YORK - A mobile application by Uber Technologies Inc., a ridesharing service, provided "reasonably conspicuous notice" of its terms of service, which included an arbitration clause, as a matter of California law, a Second Circuit U.S. Court of Appeals panel ruled Aug. 17 in a price-fixing class complaint, ordering a trial court on remand to determine whether Uber and its co-founder waived their right to arbitration by litigating the case (Spencer Meyer, et al. v. Uber Technologies, Inc., et al., Nos. 16-2750, 16-2752, 2nd Cir., 2017 U.S. App. LEXIS 15497).

Mealey's Insurance - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad and seek material that is wholly irrelevant" to the issues in an insurance coverage adversary action (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

Mealey's Litigation Procedure - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad and seek material that is wholly irrelevant" to the issues in an insurance coverage adversary action (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

Mealey's Insurance - New York Insured Sues FEMA, Administrators, Insurer In Superstorm Sandy Dispute

CENTRAL ISLIP, N.Y. - An insured sued the Federal Emergency Management Agency, its administrators and Wright National Flood Insurance Co. on Aug. 17 in a New York federal court, alleging that he was wrongfully denied $141,274.50 in insurance proceeds for Superstorm Sandy damage to his Long Beach, N.Y., home (David Clutter v. William B. Long, et al., No. 17-4833, E.D. N.Y.).

Mealey's Bankruptcy - Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities

NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad and seek material that is wholly irrelevant" to the issues in an insurance coverage adversary action (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

Mealey's Toxic Tort/Environmental - Lago Agrio Attorney Objects To Defense Costs, Seeks Reassignment Of Case

NEW YORK - The attorney representing a group of Ecuadorian residents who won an $18.5 billion judgment against Chevron Corp. for injuries, only to have it reversed, on Aug. 16 filed a letter with the judge presiding over the matter in the U.S. District Court for the Southern District of New York objecting to "exorbitant and unprecedented" defense costs, and seeking reassignment of the case to another federal court (Chevron Corporation v. Donziger, et al., Case No. 11 Civ. 691, S.D. N.Y.).

Mealey's Banking & Finance - Federal Judge Says Securities Violation Suit Filed Within Statute Of Limitations

NEW YORK - A New York federal judge on Aug. 14 denied a motion to dismiss filed by seven defendants in a suit alleging violations of the Securities Exchange Act after determining that the suit was filed within the act's two-year statute of limitations (Eton Park Fund L.P., et al. v. American Realty Capital Properties Inc., et al., No. 16-9393, S.D. N.Y., 2017 U.S. Dist. LEXIS 129990).

Mealey's Insurance - Reinsurance Executives Say $50M RICO Suit With Insurers Should Be Sent To Arbitration

NEW YORK - Reinsurance executives argue in an Aug. 14 reply brief that a New York federal court should compel arbitration of insurers' $50 million Racketeer Influenced and Corrupt Organizations Act case or, alternatively, stay the dispute "in the interests of fairness and judicial economy" (Bankers Conseco Life Insurance Co., et al. v. Moshe M. Feuer, et al., No. 16-7646, S.D. N.Y.).

Mealey's Labor & Employment - 2nd Circuit: Pension Plan Amendment Didn't Violate Anti-Cutback Provision

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Aug. 14 affirmed that an amendment to a pension plan did not violate the anti-cutback provision of the Employee Retirement Income Security Act because the amendment did not decrease a participant's accrued benefits (Vincent Morrone v. The Pension Fund of Local No. One, I.A.T.S.E., No. 16-723, 2nd Cir., 2017 U.S. App. LEXIS 15026).

Mealey's IP/Tech - New York Federal Judge Issues $19.35 Million Award In Trademark Case

NEW YORK - A dispute over engagement rings marketed by Costco Wholesale Corp. with "Tiffany" signage ended in a $19.35 million award on Aug. 14, when a New York federal judge agreed that the jeweler is entitled to trebled damages (Tiffany and Company v. Costco Wholesale Corp., No. 13-1041, S.D. N.Y., 2017 U.S. Dist. LEXIS 128946).

Mealey's Litigation Procedure - Bayer, Plaintiffs Say They've Agreed To Settle Mirena IUD Perforation Claims

NEW YORK - Despite the parties' Aug. 11 disclosure that they have agreed to resolve Mirena intrauterine device (IUD) secondary perforation claims, the Second Circuit U.S. Court of Appeals that day denied a motion to adjourn Aug. 14 oral arguments about the exclusion of all plaintiffs causation experts and evidence by a New York federal multidistrict litigation judge (In Re: Mirena IUD Products Litigation, Mirena MDL Plaintiffs v. Bayer HealthCare Pharmaceuticals Incorporated, No. 16-2890 and 16-2012, 2nd Cir.).

Mealey's PI/Product Liability - Bayer, Plaintiffs Say They've Agreed To Settle Mirena IUD Perforation Claims

NEW YORK - Despite the parties' Aug. 11 disclosure that they have agreed to resolve Mirena intrauterine device (IUD) secondary perforation claims, the Second Circuit U.S. Court of Appeals that day denied a motion to adjourn Aug. 14 oral arguments about the exclusion of all plaintiffs causation experts and evidence by a New York federal multidistrict litigation judge (In Re: Mirena IUD Products Litigation, Mirena MDL Plaintiffs v. Bayer HealthCare Pharmaceuticals Incorporated, No. 16-2890 and 16-2012, 2nd Cir.).

Mealey's Litigation Procedure - Federal Judge Orders Nigerian Petroleum Corp. To Produce Documents

NEW YORK - A New York federal judge on Aug. 7 ordered the Nigerian National Petroleum Corp. (NNPC) to produce certain documents in a case in which a Nigerian entity seeks to confirm a $1,779,000,000 arbitral award (Esso Exploration and Production Nigeria Limited et al v. Nigerian National Petroleum Corporation, No. 1:14-cv-08445, S.D. N.Y.).

Mealey's Banking & Finance - Lender Enters $74M Settlement To Resolve False Claims Act Violations

NEW YORK - The U.S. Department of Justice (DOJ) on Aug. 8 announced that several mortgage lenders have entered a $74,453,802 settlement with it, resolving allegations that the lenders violated the False Claims Act when they originated loans that did not meet applicable requirements.

Mealey's Labor & Employment - New York Federal Judge Tosses Age Discrimination Claims Against Hotel Group

NEW YORK - A New York federal judge on Aug. 4 granted a motion to dismiss age discrimination claims against a hotel group, saying that the plaintiff failed to state any facts that would support an argument that the defendant acted with discriminatory intent (Gregory Rooney v. VHM LLC, et al., No. 16-cv-9960, S.D. N.Y., 2017 U.S. Dist. LEXIS 124446).

Mealey's IP/Tech - Potential For Punitive Damages Creates Conflict Of Interest, Federal Judges Rules

BROOKLYN, N.Y. - A New York federal judge on Aug. 3 granted an insured's motion for partial summary judgment by declaring that it is entitled to independent counsel in an underlying trademark infringement lawsuit insofar as the underlying action involves claims for punitive damages, denying a commercial general liability insurer's motion to dismiss the insured's breach of contract suit (Med-Plus, Inc. v. American Casualty Company of Reading, PA, No. 16-2985, E.D. N.Y., 2017 U.S. Dist. LEXIS 123553).