LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Panel: Alleged Misstatements In Securities Class Action Were Forward-Looking

CINCINNATI - A federal district court did not err in dismissing a securities class action lawsuit because shareholders failed to plead scienter and the defendants' alleged misleading statements were forward-looking and protected, a Sixth Circuit U.S. Court of Appeals panel ruled Feb. 21 in affirming (IBEW Local No. 58 Annuity Fund, et al. v. EveryWare Global Inc., et al., No. 16-3445, 6th Cir., 2017 U.S. Dist. LEXIS 2925).

Mealey's Litigation Procedure - London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

NEW YORK - A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Insurance - London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

NEW YORK - A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd's, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

Mealey's Securities/D&O Liability - Panel: Alleged Misstatements In Securities Class Action Were Forward-Looking

CINCINNATI - A federal district court did not err in dismissing a securities class action lawsuit because shareholders failed to plead scienter and the defendants' alleged misleading statements were forward-looking and protected, a Sixth Circuit U.S. Court of Appeals panel ruled Feb. 21 in affirming (IBEW Local No. 58 Annuity Fund, et al. v. EveryWare Global Inc., et al., No. 16-3445, 6th Cir., 2017 U.S. Dist. LEXIS 2925).

Mealey's Insurance - 9th Circuit Reverses, Remands Excess Coverage Suit Over Racial Discrimination Claim

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Feb. 21 reversed and remanded a lower federal court's ruling in a dispute over excess coverage for a settlement demand in an underlying racial discrimination lawsuit against the city of Montebello, Calif. (Security National Insurance Co. v. City of Montebello, Nos. 15-56199 and 15-56263, 9th Cir., 2017 U.S. App. LEXIS 2965).

Mealey's Securities/D&O Liability - High Court Denies Cert In Stock-Drop Case Arising Under ERISA

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 21 denied a petition for writ of certiorari in a stock-drop case arising under the Employee Retirement Income Security Act (Alex E. Rinehart, et al. v. John F. Akers, et al., No. 16-562, U.S. Sup.).

Mealey's Labor & Employment - 6th Circuit Finds Disability Coverage Claims Preempted By ERISA

CINCINNATI - After finding that a former marketing director's claims for coverage against a medical review company were completely preempted by the Employee Retirement Income Security Act, the Sixth Circuit U.S. Court of Appeals on Feb. 17 affirmed dismissal of the claims and found that a previous lawsuit filed against a plan administrator was the proper recourse (James Hackney v. Allmed Healthcare Management Inc., No. 16-5651, 6th Cir., 2017 U.S. App. LEXIS 2877).

Mealey's Health Law - Claims In Bad Faith Suit Not Subject To ERISA Preemption, Magistrate Rules

NEWARK, N.J. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because a third-party's claims are not preempted by the Employee Retirement Income Security Act (ERISA), a federal magistrate judge in New Jersey ruled Feb. 17 (North Jersey Brain & Spine Center v. Aetna Life Insurance Co., et al., No. 16-1544, D. N.J., 2017 U.S. Dist. LEXIS 22710).

Mealey's Insurance - Claims In Bad Faith Suit Not Subject To ERISA Preemption, Magistrate Rules

NEWARK, N.J. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because a third-party's claims are not preempted by the Employee Retirement Income Security Act (ERISA), a federal magistrate judge in New Jersey ruled Feb. 17 (North Jersey Brain & Spine Center v. Aetna Life Insurance Co., et al., No. 16-1544, D. N.J., 2017 U.S. Dist. LEXIS 22710).

Mealey's Banking & Finance - 6th Circuit Finds Disability Coverage Claims Preempted By ERISA

CINCINNATI - After finding that a former marketing director's claims for coverage against a medical review company were completely preempted by the Employee Retirement Income Security Act, the Sixth Circuit U.S. Court of Appeals on Feb. 17 affirmed dismissal of the claims and found that a previous lawsuit filed against a plan administrator was the proper recourse (James Hackney v. Allmed Healthcare Management Inc., No. 16-5651, 6th Cir., 2017 U.S. App. LEXIS 2877).

Mealey's IP/Tech - Federal Circuit: Covered Business Method Patent Review Was Error

WASHINGTON, D.C. - Findings by the Patent Trial and Appeal Board that a computer security patent is obvious never should have been reached because the board erroneously determined that the invention at issue qualifies as a covered business method (CBM), a divided Federal Circuit U.S. Court of Appeals ruled Feb. 21 (Secure Axcess LLC v. PNC Bank National Association, et al., No. 16-1353, Fed. Cir., 2017 U.S. App. LEXIS 2902).

Mealey's Labor & Employment - High Court Denies Cert In Stock-Drop Case Arising Under ERISA

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 21 denied a petition for writ of certiorari in a stock-drop case arising under the Employee Retirement Income Security Act (Alex E. Rinehart, et al. v. John F. Akers, et al., No. 16-562, U.S. Sup.).

Mealey's Labor & Employment - Respondents To High Court: ERISA Requires Church Plan Be Established By A Church

WASHINGTON, D.C. - The church plan exemption in the Employee Retirement Income Security Act unambiguously requires that a church plan be established by a church, the appellee-respondents in three cases consolidated before the U.S. Supreme Court say in their initial brief filed Feb. 16 (Advocate Health Care Network, et al. v. Maria Stapleton, et al., No. 16-74, Saint Peter's Healthcare System, et al. v. Laurence Kaplan, No. 16-86, Dignity Health, et al. v. Starla Rollins, No. 16-258, U.S. Sup., 2017 U.S. S. Ct. Briefs LEXIS 515).

Mealey's PI/Product Liability - Trades Council Appointed Lead Plaintiff In Securities Class Action Lawsuit

SAN FRANCISCO - A shareholder has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain current and former executive officers over their alleged misrepresentations concerning their involvement in a generic drug price-fixing scheme in violation of federal securities laws, a federal judge in California ruled Feb. 15 (Greg Fleming v. Impax Laboratories Inc., et al., No. 16-6557, N.D. Calif., 2017 U.S. Dist. LEXIS 22147).

Mealey's Litigation Procedure - Trades Council Appointed Lead Plaintiff In Securities Class Action Lawsuit

SAN FRANCISCO - A shareholder has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain current and former executive officers over their alleged misrepresentations concerning their involvement in a generic drug price-fixing scheme in violation of federal securities laws, a federal judge in California ruled Feb. 15 (Greg Fleming v. Impax Laboratories Inc., et al., No. 16-6557, N.D. Calif., 2017 U.S. Dist. LEXIS 22147).

Mealey's Litigation Procedure - Judge: Investors State No Actionable Misrepresentations In Securities Class Action

HOUSTON - Dismissal of a securities class action lawsuit is proper, a federal judge in Texas ruled Feb. 14, because lead plaintiffs failed to plead any actionable misrepresentations or scienter in arguing that an offshore energy services company and certain of its current and former executive officers misrepresented repair issues with one of the company's well intervention vessels in violation of federal securities laws (Parvis Izadjoo v. Helix Energy Solutions Group Inc., et al., No. 15-2213, S.D. Texas, 2017 U.S. Dist. LEXIS 20444).

Mealey's Securities/D&O Liability - Trades Council Appointed Lead Plaintiff In Securities Class Action Lawsuit

SAN FRANCISCO - A shareholder has met all statutory requirements to serve as lead plaintiff in a securities class action lawsuit against a pharmaceutical company and certain current and former executive officers over their alleged misrepresentations concerning their involvement in a generic drug price-fixing scheme in violation of federal securities laws, a federal judge in California ruled Feb. 15 (Greg Fleming v. Impax Laboratories Inc., et al., No. 16-6557, N.D. Calif., 2017 U.S. Dist. LEXIS 22147).

Mealey's Insurance - Judge Converts Motion To Dismiss, Orders Further Briefing In Bad Faith Suit

ALBUQUERQUE, N.M. - Unable to determine from the evidence provided whether an insured's disability benefits plan is governed by the Employee Retirement Income Security Act of 1974 (ERISA), a federal judge in New Mexico on Feb. 14 converted the insurer's motion to dismiss to a motion for summary judgment and ordered supplemental briefing (Sherry Evans-Carmichael v. Liberty Mutual Group Inc., No. 16-276, D. N.M., 2017 U.S. Dist. LEXIS 20599).

Mealey's Securities/D&O Liability - Judge: Investors State No Actionable Misrepresentations In Securities Class Action

HOUSTON - Dismissal of a securities class action lawsuit is proper, a federal judge in Texas ruled Feb. 14, because lead plaintiffs failed to plead any actionable misrepresentations or scienter in arguing that an offshore energy services company and certain of its current and former executive officers misrepresented repair issues with one of the company's well intervention vessels in violation of federal securities laws (Parvis Izadjoo v. Helix Energy Solutions Group Inc., et al., No. 15-2213, S.D. Texas, 2017 U.S. Dist. LEXIS 20444).

Mealey's Litigation Procedure - Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company's initial public offering (IPO) failed to show that the defendants violated federal securities law by failing to disclose certain trends in its customer concentration and sales growth, a federal judge in New York ruled Feb. 13 in granting the defendants' motions to dismiss (Andrew D. Nguyen v. MaxPoint Interactive Inc., et al., No. 15-6880, S.D. N.Y., 2017 U.S. Dist. LEXIS 20069).

Mealey's Banking & Finance - Judge: Securities Investment Adviser's Opinion On Mortgage Lending Practices Is Barred

RALEIGH, N.C. - Excluding a securities investment adviser's testimony because he is not qualified as an expert on mortgage lending practices and policies, a North Carolina federal judge ruled Feb. 14 that genuine issues of fact exist concerning negligence, breach of fiduciary duty and bad faith claims against a bank to survive summary judgment (Paul B. Hetzel v. JPMorgan Chase Bank, N.A., No. 13-236, E.D. N.C., 2017 U.S. Dist. LEXIS 20293).

Mealey's Litigation Procedure - Judge: Securities Investment Adviser's Opinion On Mortgage Lending Practices Is Barred

RALEIGH, N.C. - Excluding a securities investment adviser's testimony because he is not qualified as an expert on mortgage lending practices and policies, a North Carolina federal judge ruled Feb. 14 that genuine issues of fact exist concerning negligence, breach of fiduciary duty and bad faith claims against a bank to survive summary judgment (Paul B. Hetzel v. JPMorgan Chase Bank, N.A., No. 13-236, E.D. N.C., 2017 U.S. Dist. LEXIS 20293).

Mealey's Securities/D&O Liability - Investor Failed To Show Lack Of Disclosures Violated Securities Act, Judge Rules

NEW YORK - A lead plaintiff in a securities class action lawsuit against a business intelligence and marketing automation software service provider, certain of its executive officers and underwriters of the company's initial public offering (IPO) failed to show that the defendants violated federal securities law by failing to disclose certain trends in its customer concentration and sales growth, a federal judge in New York ruled Feb. 13 in granting the defendants' motions to dismiss (Andrew D. Nguyen v. MaxPoint Interactive Inc., et al., No. 15-6880, S.D. N.Y., 2017 U.S. Dist. LEXIS 20069).

Mealey's Insurance - Disability Plan Is Governed By ERISA, California Federal Judge Determines

LOS ANGELES - A California federal judge on Feb. 10 denied a plaintiff's motion to remand a disability suit to state court because the disability plan at issue is not a "church plan" and is governed by the Employee Retirement Income Security Act (Melvyn L. Durham v. The Prudential Insurance Company of America et al., No. 16-8202, C.D. Calif., 2017 U.S. Dist. LEXIS 19402).

Mealey's PI/Product Liability - Judge Substantially Denies Dismissal Of Claims In Securities Class Action

DENVER - Shareholders have pleaded a majority of their claims against defendants in a securities class action lawsuit against a drug maker, certain of its current and former executive officers and others, a federal judge in Colorado found Feb. 9 in ruling on three different dismissal motions (Sonny P. Medina, et al. v. Clovis Oncology Inc., et al., No. 15-2546, D. Colo., 2017 U.S. Dist. LEXIS 18795).