LexisNexis® Legal Newsroom
Mealey's Litigation Procedure - Judge Quashes Subpoena On Homeland Security Secretary In Privacy Suit

WASHINGTON, D.C. - Citing the presumption against subpoenaing high-ranking government officials and the plaintiffs' failure to establish that they cannot obtain the information sought from other sources, a District of Columbia federal judge on July 16 granted the government's motion to quash a subpoena seeking testimony from the secretary of the Department of Homeland Security (DHS) in a lawsuit alleging privacy violations by the government's retention, search and use of the plaintiffs' emails (Gilberte Jill Kelley, et al. v. Federal Bureau of Investigation, et al., No. 1:13-cv-00825, D. D.C.).

Mealey's Litigation Procedure - Texas Federal Judge Partly Quashes Subpoena In Patent Case

AUSTIN, Texas - Efforts by Samsung Austin Semiconductor (SAS) LLC to quash a subpoena by Rembrandt Secure Computing LP in Rembrandt's patent lawsuit against Apple Inc. were largely successful on July 15 (Rembrandt Secure Computing LP v. Apple Inc. et al., No. 15-438, W.D. Texas; 2015 U.S. Dist. LEXIS 91756).

Mealey's IP/Tech - Texas Federal Judge Partly Quashes Subpoena In Patent Case

AUSTIN, Texas - Efforts by Samsung Austin Semiconductor (SAS) LLC to quash a subpoena by Rembrandt Secure Computing LP in Rembrandt's patent lawsuit against Apple Inc. were largely successful on July 15 (Rembrandt Secure Computing LP v. Apple Inc. et al., No. 15-438, W.D. Texas; 2015 U.S. Dist. LEXIS 91756).

Mealey's Litigation Procedure - Federal Judge Substantially Trims Claims In Securities Class Action Lawsuit

CHICAGO - A federal judge in Illinois on July 10 substantially dismissed a shareholder class action lawsuit against Navistar International Corp. and certain of its officers and directors, ruling that the lead plaintiff in the action failed to plead an actionable misrepresentation or scienter (Construction Workers Pension Trust Fund, et al. v. Navistar International Corp., et al., No. 13-2111, N.D. Ill.; 2015 U.S. Dist. LEXIS 90152).

Mealey's Litigation Procedure - Judge Substantially Denies Motion To Dismiss In Securities Class Action

NASHVILLE, Tenn. - A federal judge in Tennessee on July 10 substantially denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action properly pleaded the elements of his federal securities law claims (William E. Burges, et al. v. BancorpSouth Inc., et al., No. 14-1564, M.D. Tenn.; 2015 U.S. Dist. LEXIS 89822).

Mealey's Securities/D&O Liability - Federal Judge Substantially Trims Claims In Securities Class Action Lawsuit

CHICAGO - A federal judge in Illinois on July 10 substantially dismissed a shareholder class action lawsuit against Navistar International Corp. and certain of its officers and directors, ruling that the lead plaintiff in the action failed to plead an actionable misrepresentation or scienter (Construction Workers Pension Trust Fund, et al. v. Navistar International Corp., et al., No. 13-2111, N.D. Ill.; 2015 U.S. Dist. LEXIS 90152).

Mealey's Securities/D&O Liability - Judge Substantially Denies Motion To Dismiss In Securities Class Action

NASHVILLE, Tenn. - A federal judge in Tennessee on July 10 substantially denied a motion to dismiss filed by defendants in a securities class action lawsuit, ruling that the lead plaintiff in the action properly pleaded the elements of his federal securities law claims (William E. Burges, et al. v. BancorpSouth Inc., et al., No. 14-1564, M.D. Tenn.; 2015 U.S. Dist. LEXIS 89822).

Mealey's Litigation Procedure - Judge Trims Claims, Compels Arbitration In Securities Class Action

NEW YORK - A federal judge in New York on July 9 granted in part and denied in part a motion to dismiss filed by defendants in a securities class action, ruling that shareholders failed to properly plead particular claims and that another claim was barred by the statute of repose (In re Petrobas Securities Litigation, No. 14-9662, S.D. N.Y.).

Mealey's Litigation Procedure - New York Federal Judge Dismisses Lehman Stock-Drop Case

NEW YORK - On remand, a federal judge in New York ruled July 10 that Lehman Brothers Holding Inc.'s former directors and benefit committee members did not breach fiduciary duties under the Employee Retirement Income Security Act by continuing to offer company stock as an investment option for Lehman's employee stock ownership plan (ESOP) before the company's declaring bankruptcy (In re: Lehman Brothers Securities and ERISA Litigation [In re Lehman Brothers ERISA Litigation], No. 09-md02017, 08-cv-5598, S.D. N.Y.; 2015 U.S. Dist. LEXIS 90109).

Mealey's Securities/D&O Liability - New York Federal Judge Dismisses Lehman Stock-Drop Case

NEW YORK - On remand, a federal judge in New York ruled July 10 that Lehman Brothers Holding Inc.'s former directors and benefit committee members did not breach fiduciary duties under the Employee Retirement Income Security Act by continuing to offer company stock as an investment option for Lehman's employee stock ownership plan (ESOP) before the company's declaring bankruptcy (In re: Lehman Brothers Securities and ERISA Litigation [In re Lehman Brothers ERISA Litigation], No. 09-md02017, 08-cv-5598, S.D. N.Y.; 2015 U.S. Dist. LEXIS 90109).

Mealey's Banking & Finance - Federal Judge: Excess Insurer Can Recover $5M It Paid To Settle Securities Action

SAN JOSE, Calif. - An insured's former first-layer excess directors and officers liability insurer is entitled to recover the $5 million it paid to settle an underlying securities action plus prejudgment interest from the insured's latter first-layer excess directors and officers liability insurer, a California federal judge ruled July 8 (Genesis Insurance Co. v. Magma Design Automation, Inc., et al., No. 06-05526, N.D. Calif.; 2015 U.S. Dist. LEXIS 88769).

Mealey's Securities/D&O Liability - Judge Trims Claims, Compels Arbitration In Securities Class Action

NEW YORK - A federal judge in New York on July 9 granted in part and denied in part a motion to dismiss filed by defendants in a securities class action, ruling that shareholders failed to properly plead particular claims and that another claim was barred by the statute of repose (In re Petrobas Securities Litigation, No. 14-9662, S.D. N.Y.).

Mealey's Insurance - Federal Judge: Excess Insurer Can Recover $5M It Paid To Settle Securities Action

SAN JOSE, Calif. - An insured's former first-layer excess directors and officers liability insurer is entitled to recover the $5 million it paid to settle an underlying securities action plus prejudgment interest from the insured's latter first-layer excess directors and officers liability insurer, a California federal judge ruled July 8 (Genesis Insurance Co. v. Magma Design Automation, Inc., et al., No. 06-05526, N.D. Calif.; 2015 U.S. Dist. LEXIS 88769).

Mealey's Labor & Employment - New York Federal Judge Dismisses Lehman Stock-Drop Case

NEW YORK - On remand, a federal judge in New York ruled July 10 that Lehman Brothers Holding Inc.'s former directors and benefit committee members did not breach fiduciary duties under the Employee Retirement Income Security Act by continuing to offer company stock as an investment option for Lehman's employee stock ownership plan (ESOP) before the company's declaring bankruptcy (In re: Lehman Brothers Securities and ERISA Litigation [In re Lehman Brothers ERISA Litigation], No. 09-md02017, 08-cv-5598, S.D. N.Y.; 2015 U.S. Dist. LEXIS 90109).

Mealey's IP/Tech - Texas Federal Judge Won't Revisit Section 101 Ruling In Apple Case

TYLER, Texas - Efforts by Apple Inc. - already successful in vacating a $532.9 million award and securing a new damages trial on allegations of patent infringement - to invalidate the patents in suit on 35 U.S. Code Section 101 grounds were rejected July 8 by a Texas federal judge (Smartflash LLC v. Apple Inc., No. 13-447, E.D. Texas).

Mealey's IP/Tech - Illinois Federal Judge Says Patents Cover Eligible Subject Matter

CHICAGO - A motion to dismiss a second amended patent infringement complaint on grounds of failure to satisfy 35 U.S. Code Section 101 was rejected July 7 by a federal judge in Illinois (The Chamberlain Group Inc. v. Nortek Security & Control LLC, No. 14-5197, N.D. Ill.; 2015 U.S. Dist. LEXIS 87876).

Mealey's PI/Product Liability - Alleged Misrepresentations In Securities Suit Were Forward-Looking, Panel Rules

ST. LOUIS - A federal district court did not err in dismissing a federal securities class action lawsuit because the alleged misrepresentations cited by the lead plaintiffs were forward-looking and protected by the Private Securities Litigation Reform Act's (PSLRA) safe-harbor provision, an Eighth Circuit U.S. Court of Appeals panel ruled July 2 (Lori Anderson v. K-V Pharmaceutical Co., et al., No. 14-2592, 8th Cir.).

Mealey's Litigation Procedure - Alleged Misrepresentations In Securities Suit Were Forward-Looking, Panel Rules

ST. LOUIS - A federal district court did not err in dismissing a federal securities class action lawsuit because the alleged misrepresentations cited by the lead plaintiffs were forward-looking and protected by the Private Securities Litigation Reform Act's (PSLRA) safe-harbor provision, an Eighth Circuit U.S. Court of Appeals panel ruled July 2 (Lori Anderson v. K-V Pharmaceutical Co., et al., No. 14-2592, 8th Cir.).

Mealey's Banking & Finance - Insurer Breached Its Duty To Defend Securities Broker, Panel Says, Partly Reversing

DENVER - The 10th Circuit U.S. Court of Appeals on July 6 held that an errors and omissions insurer failed to fulfill its duty to defend a securities broker insured in the lead-up to and during an arbitration hearing, reversing a lower federal court in part (Forrest Daryl Templeton v. Catlin Specialty Insurance Co., et al., No. 14-1261, 10th Cir.; 2015 U.S. App. LEXIS 11571).

Mealey's Securities/D&O Liability - Judge: Newman Does Not Apply To Insider Trading Claims Against Gupta

NEW YORK - A federal judge in New York on July 2 denied former Goldman Sachs Group Inc. Director Rajat K. Gupta's motion to vacate his sentence on criminal charges stemming from his role in a massive insider trading scheme, ruling that the Second Circuit U.S. Court of Appeals' ruling in United States v. Newman does not apply to the instant action (United States of America v. Rajat Gupta, No. 11-cr-0907, S.D. N.Y.).

Mealey's Insurance - Insurer Breached Its Duty To Defend Securities Broker, Panel Says, Partly Reversing

DENVER - The 10th Circuit U.S. Court of Appeals on July 6 held that an errors and omissions insurer failed to fulfill its duty to defend a securities broker insured in the lead-up to and during an arbitration hearing, reversing a lower federal court in part (Forrest Daryl Templeton v. Catlin Specialty Insurance Co., et al., No. 14-1261, 10th Cir.; 2015 U.S. App. LEXIS 11571).

Mealey's Securities/D&O Liability - Alleged Misrepresentations In Securities Suit Were Forward-Looking, Panel Rules

ST. LOUIS - A federal district court did not err in dismissing a federal securities class action lawsuit because the alleged misrepresentations cited by the lead plaintiffs were forward-looking and protected by the Private Securities Litigation Reform Act's (PSLRA) safe-harbor provision, an Eighth Circuit U.S. Court of Appeals panel ruled July 2 (Lori Anderson v. K-V Pharmaceutical Co., et al., No. 14-2592, 8th Cir.).

Mealey's Litigation Procedure - Weatherford International To Pay $120M To Settle Claims In Securities Suit

NEW YORK - An oil and gas industry products provider has agreed to a $120 million settlement of claims with investors that it violated provisions of federal securities laws by misrepresenting the company's business and financial condition, according to a press release issued July 1 (Glenn Freedman v. Weatherford International Ltd., et al., No. 12-2121, S.D. N.Y.).

Mealey's Securities/D&O Liability - 11th Circuit Remands 401(k) Cases In Light Of Supreme Court Ruling In Tibble

ATLANTA - The 11th Circuit U.S. Court of Appeals on June 30 remanded two breach of fiduciary duty cases brought by participants in a 401(k) plan sponsored by SunTrust Banks Inc. related to the inclusion of proprietary mutual funds in the defined-contribution plan, in light of the U.S. Supreme Court's recent decision in Tibble v. Edison International (135 S. Ct. 1823 [2015]) (Sandra D. Stargel v. SunTrust Banks, Inc., et al.; Barbara J. Fuller v. SunTrust Banks, Inc., et al., No. 14-13207, 11th Cir.; 2015 U.S. App. LEXIS 11187).

Mealey's Litigation Procedure - 7th Circuit Denies Fees Under Common-Fund Doctrine In COBRA Case

CHICAGO - An attorney may not recover fees under the common-fund doctrine in addition to or in lieu of fees awarded under a fee-shifting statute like the Employee Retirement Income Security Act "in the absence of a contract," the Seventh Circuit U.S. Court of Appeals ruled July 1 (Darryl Pierce, et al. v. Visteon Corporation, et al., No. 14-2542, 7th Cir.; 2015 U.S. App. LEXIS 11333).