LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Supreme Court Agrees To Hear Appeal Challenging American Pipe Tolling

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear an appeal of a Second Circuit U.S. Court of Appeals ruling affirming that shareholders that filed a securities class action lawsuit after opting out of settlement class against the same defendants were barred from doing so as their claims were outside the statute of repose (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.).

Mealey's Securities/D&O Liability - Supreme Court Agrees To Hear Appeal Challenging American Pipe Tolling

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear an appeal of a Second Circuit U.S. Court of Appeals ruling affirming that shareholders that filed a securities class action lawsuit after opting out of settlement class against the same defendants were barred from doing so as their claims were outside the statute of repose (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.).

Mealey's Securities/D&O Liability - High Court To Hear Appeal In SEC Enforcement Action Over Disgorgement Fee

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear an appeal in a Securities and Exchange Commission enforcement action in which an investment adviser seeks a determination as to whether claims for disgorgement are subject to a five-year statute of limitations under federal statute (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).

Mealey's Health Law - Michigan Tribe, Blue Cross Settle ERISA Plan Administration Claims

DETROIT - Michigan's Little River Band of Ottawa Indians and Blue Cross Blue Shield have settled the tribe's claims that Blue Cross breached its fiduciary duty and violated the Employee Retirement Income Security Act (ERISA) in administering the tribe's health care plan for employees, according to a dismissal order filed Jan. 11 in federal court (Little River Band of Ottawa Indians, et al. v. Blue Cross Blue Shield of Michigan, No. 2:15-cv-13708, E.D. Mich.).

Mealey's Securities/D&O Liability - Zimmer Biomet To Pay $30.4M To Settle Foreign Bribery Claims By United States

WASHINGTON, D.C. - Orthopedic device maker Zimmer Biomet Holdings Inc. and an indirect subsidiary will pay $30.4 million to resolve criminal charges that they violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to people in Mexico and for violating a 2012 deferred prosecution agreement (DPA) for earlier FCPA violations, the U.S. Justice Department announced Jan. 12 (United States of America v. Zimmer Biomet Holdings, Inc., No. 12-cr-80, United States of America v. JERDS Luxembourg Holdings S.A.R.L., No. n/a, D. D.C.).

Mealey's Labor & Employment - Michigan Tribe, Blue Cross Settle ERISA Plan Administration Claims

DETROIT - Michigan's Little River Band of Ottawa Indians and Blue Cross Blue Shield have settled the tribe's claims that Blue Cross breached its fiduciary duty and violated the Employee Retirement Income Security Act (ERISA) in administering the tribe's health care plan for employees, according to a dismissal order filed Jan. 11 in federal court (Little River Band of Ottawa Indians, et al. v. Blue Cross Blue Shield of Michigan, No. 2:15-cv-13708, E.D. Mich.).

Mealey's Insurance - Directors, Officers Policy Does Not Cover FDIC's Claims, Majority Says, Reverses

PASADENA, Calif. - A majority of the Ninth Circuit U.S. Court of Appeals on Jan. 10 found that a directors and officers liability insurance policy unambiguously excludes from coverage the Federal Deposit Insurance Corp.'s negligence, gross negligence and breach of fiduciary duty claims against a failed bank's former directors and officers, reversing and remanding a lower court (Federal Deposit Insurance Corporation, as Receiver for Security Pacific Bank v. BancInsure, Inc., No. 14-56132, 9th Cir.; 2017 U.S. App. LEXIS 452).

Mealey's Litigation Procedure - Judge: Investors Failed To Plead Facts Supporting Misrepresentation Claims

NEW YORK - Lead plaintiffs in a securities class action lawsuit against a Chinese online retailer and others have failed to plead any actionable misrepresentations or omissions in support of their claim that the defendants concealed their intention to shut down the company's beauty supply marketplace in violation of federal securities laws, a federal judge in New York ruled Jan. 10 in granting the defendants' motion to dismiss certain claims (In re Jumei International Holding Limited Securities Litigation, No. 14-9826, S.D. N.Y.; 2017 U.S. Dist. LEXIS 3206).

Mealey's Health Law - Supreme Court Won't Review 6th Circuit ERISA Preemption Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 let stand a Sixth Circuit U.S. Court of Appeals' ruling that affirmed the dismissal of claims that the Michigan Health Insurance Claims Assessment Act is preempted by the Employee Retirement Income Security Act (Self-Insurance Institute of America Inc. v. Rick Snyder, et al., No. 16-593, U.S. Sup.).

Mealey's Litigation Procedure - High Court Asks Government To Express Views In ERISA Indemnification Case

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 asked the U.S. solicitor general to file a brief expressing the government's views in a case that asks whether the Employee Retirement Income Security Act permits a cause of action for indemnity or contribution by a person found liable for breach of fiduciary duty (David B. Fenkell v. Alliance Holdings Inc., et al., No. 16-473, U.S. Sup.).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Plead Demand Futility Under Either Prong Of Aronson

LOS ANGELES - An investor in a shareholder derivative lawsuit against 17 current and former executive officers and directors of a drug company has failed to show that the defendants were interested in the outcome of the litigation or that their actions were in violation of the business judgment rule under Aronson v. Lewis, a federal judge in California ruled Jan. 10 in granting the company's motion to dismiss (Judy Durgin v. Kevin Sharer, et al., No. 07-3001, C.D. Calif.).

Mealey's Securities/D&O Liability - Judge: Investors Failed To Plead Facts Supporting Misrepresentation Claims

NEW YORK - Lead plaintiffs in a securities class action lawsuit against a Chinese online retailer and others have failed to plead any actionable misrepresentations or omissions in support of their claim that the defendants concealed their intention to shut down the company's beauty supply marketplace in violation of federal securities laws, a federal judge in New York ruled Jan. 10 in granting the defendants' motion to dismiss certain claims (In re Jumei International Holding Limited Securities Litigation, No. 14-9826, S.D. N.Y.; 2017 U.S. Dist. LEXIS 3206).

Mealey's Labor & Employment - High Court Asks Government To Express Views In ERISA Indemnification Case

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 asked the U.S. solicitor general to file a brief expressing the government's views in a case that asks whether the Employee Retirement Income Security Act permits a cause of action for indemnity or contribution by a person found liable for breach of fiduciary duty (David B. Fenkell v. Alliance Holdings Inc., et al., No. 16-473, U.S. Sup.).

Mealey's Labor & Employment - Supreme Court Lets Stand 9th Circuit's Ruling On ERISA Pension Plan Definition

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 declined to review a Ninth Circuit U.S. Court of Appeals' ruling that affirmed the dismissal of claims under the Employee Retirement Income Security Act against Booz Allen Hamilton Inc. (BAH) based on its conclusion that BAH's Stock Rights Plan did not qualify as an ERISA plan because its primary purpose was not to provide deferred compensation or other retirement benefits (Foster Rich v. Ralph W. Shrader, et al., No. 16-415, U.S. Sup.).

Mealey's Labor & Employment - Supreme Court Won't Review 6th Circuit ERISA Preemption Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 9 let stand a Sixth Circuit U.S. Court of Appeals' ruling that affirmed the dismissal of claims that the Michigan Health Insurance Claims Assessment Act is preempted by the Employee Retirement Income Security Act (Self-Insurance Institute of America Inc. v. Rick Snyder, et al., No. 16-593, U.S. Sup.).

Mealey's Securities/D&O Liability - Judge: Investor Failed To Show Medical Device Maker Misstated FDA Conditions

BOSTON - A shareholder failed to show that a medical device maker and certain of its current and former executive officers issued material misrepresentations or omissions in connection with the company's statements made regarding the U.S. Food and Drug Administration's approval of a spinal injury repair device, a First Circuit U.S. Court of Appeals panel ruled Jan. 9 (Edmond Ganem, et al. v. InVivo Therapeutics Holdings Corp., et al., No. 15-1544, 1st Cir.; 2017 U.S. App. LEXIS 385).

Mealey's Labor & Employment - Federal Circuit Upholds Border Patrol Agent's Removal From Service

WASHINGTON, D.C. - A former border patrol agent (BPA) failed to show that an arbitrator erred in determining that the agent was properly removed from his position after he exhibited psychotic symptoms, a Federal Circuit U.S. Court of Appeals panel ruled Jan. 4 (Brendan Corkery v. Department of Homeland Security, No. 2015-3216, Fed. Cir.; 2017 U.S. App. LEXIS 237).

Mealey's Litigation Procedure - Investors' Securities Claims Fail To Meet Pleading Requirements, Judge Rules

SAN FRANCISCO - Shareholders in a securities class action lawsuit against a specialty oil products manufacturer and distributor, certain of its current and former officers and directors and underwriters of two stock offerings failed to plead falsity in making their federal securities law claims because their claims failed to meet the strict pleading standards of the Private Securities Litigation Reform Act (PSLRA) and Federal Rule of Civil Procedure 9(b), a federal judge in California ruled Dec. 29 (Norfolk County Retirement System, et al. v. Solazyme Inc., et al., No. 15-2938, N.D. Calif.; 2016 U.S. Dist. LEXIS 179949).

Mealey's Securities/D&O Liability - Investors' Securities Claims Fail To Meet Pleading Requirements, Judge Rules

SAN FRANCISCO - Shareholders in a securities class action lawsuit against a specialty oil products manufacturer and distributor, certain of its current and former officers and directors and underwriters of two stock offerings failed to plead falsity in making their federal securities law claims because their claims failed to meet the strict pleading standards of the Private Securities Litigation Reform Act (PSLRA) and Federal Rule of Civil Procedure 9(b), a federal judge in California ruled Dec. 29 (Norfolk County Retirement System, et al. v. Solazyme Inc., et al., No. 15-2938, N.D. Calif.; 2016 U.S. Dist. LEXIS 179949).

Mealey's PI/Product Liability - Judge: Defendants In Securities Suit Didn't Act With Deliberate Recklessness

DETROIT - Lead plaintiffs in a securities class action lawsuit against a drug company and its CEO have failed to plead their federal securities law claims because they have not shown that any of the alleged misrepresentations made by the defendants were actionable or that the defendants acted with deliberate recklessness, a federal judge in Michigan ruled Dec. 27 in granting the defendants' motion to dismiss (Kevin L. Dougherty v. Esperion Therapeutics Inc., et al., No. 16-10089, E.D. Mich.; 2016 U.S. Dist. LEXIS 178581).

Mealey's Litigation Procedure - Judge: Defendants In Securities Suit Didn't Act With Deliberate Recklessness

DETROIT - Lead plaintiffs in a securities class action lawsuit against a drug company and its CEO have failed to plead their federal securities law claims because they have not shown that any of the alleged misrepresentations made by the defendants were actionable or that the defendants acted with deliberate recklessness, a federal judge in Michigan ruled Dec. 27 in granting the defendants' motion to dismiss (Kevin L. Dougherty v. Esperion Therapeutics Inc., et al., No. 16-10089, E.D. Mich.; 2016 U.S. Dist. LEXIS 178581).

Mealey's Securities/D&O Liability - Judge: Defendants In Securities Suit Didn't Act With Deliberate Recklessness

DETROIT - Lead plaintiffs in a securities class action lawsuit against a drug company and its CEO have failed to plead their federal securities law claims because they have not shown that any of the alleged misrepresentations made by the defendants were actionable or that the defendants acted with deliberate recklessness, a federal judge in Michigan ruled Dec. 27 in granting the defendants' motion to dismiss (Kevin L. Dougherty v. Esperion Therapeutics Inc., et al., No. 16-10089, E.D. Mich.; 2016 U.S. Dist. LEXIS 178581).

Mealey's Litigation Procedure - 9th Circuit Affirms Dismissal Of Securities Suit Against Tesla Motors

SAN FRANCISCO - A federal district court did not err in dismissing a securities class action lawsuit against Tesla Motors Inc. and its CEO because shareholders failed to plead any materially misleading statements or omissions in making their federal securities law claims, a Ninth Circuit U.S. Court of Appeals panel ruled Dec. 21 (In re Tesla Motors Inc. Securities Litigation, No. 14-17501, 9th Cir.).

Mealey's PI/Product Liability - Judge Grants Final Approval Of $468M Settlement In Pfizer Securities Suit

NEW YORK - A federal judge in New York on Sept. 16 granted final approval of a $486 million settlement in a securities class action lawsuit between shareholders and certain of its executive officers, ruling that the settlement is fair, reasonable and adequate (In re Pfizer Inc. Securities Litigation, No. 04-9866, S.D. N.Y.).

Mealey's Litigation Procedure - Judge Grants Final Approval Of $468M Settlement In Pfizer Securities Suit

NEW YORK - A federal judge in New York on Sept. 16 granted final approval of a $486 million settlement in a securities class action lawsuit between shareholders and certain of its executive officers, ruling that the settlement is fair, reasonable and adequate (In re Pfizer Inc. Securities Litigation, No. 04-9866, S.D. N.Y.).