LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Lead Plaintiffs Reach $48M Settlement With CVS In Securities Class Action

PROVIDENCE, R.I. - Lead plaintiffs in a securities class action lawsuit on Sept. 14 asked a federal judge in Rhode Island to preliminarily approve a $48 million settlement with CVS Caremark Corp. and certain of its executive officers over alleged misrepresentations made regarding CVS's 2007 merger with Caremark Rx Inc. (Richard Medoff v. CVS Caremark Corp., et al., No. 09-0554, D. Rhode Island).

Mealey's Labor & Employment - Apple Removes Class Suit Over Workers' Security Checks To Federal Court

PHILADELPHIA - Apple Inc. on Sept. 14 removed a class complaint accusing the company of failing to pay workers in its stores in Pennsylvania for the time they spend waiting for and undergoing security checks to a Pennsylvania federal court pursuant to the Class Action Fairness Act (CAFA) (Natasha Franklin, et al. v. Apple, Inc., No. 15-5119, E.D. Pa.).

Mealey's Litigation Procedure - Apple Removes Class Suit Over Workers' Security Checks To Federal Court

PHILADELPHIA - Apple Inc. on Sept. 14 removed a class complaint accusing the company of failing to pay workers in its stores in Pennsylvania for the time they spend waiting for and undergoing security checks to a Pennsylvania federal court pursuant to the Class Action Fairness Act (CAFA) (Natasha Franklin, et al. v. Apple, Inc., No. 15-5119, E.D. Pa.).

Mealey's Labor & Employment - Medical Provider Has Standing To Sue Under ERISA, Panel Determines

PHILADELPHIA - An assignment of the right to payment is sufficient to confer standing to a medical provider to sue a health insurer for payment under the Employee Retirement Income Security Act, the Third Circuit U.S. Court of Appeals said Sept. 11 in reversing a district court's ruling (North Jersey Brain & Spine Center v. Aetna Inc., No. 14-2101, 3rd Cir.; 2015 U.S. App. LEXIS 16158).

Mealey's PI/Product Liability - Federal Judge Dismisses Securities Law Claims Against Medical Device Maker

NEW YORK - A federal judge in New York on Sept. 14 dismissed a securities class action complaint filed against a medical device maker and its CEO, ruling that the lead plaintiff in the action failed to properly plead an actionable misrepresentation or scienter in making his federal securities law claims (In re EDAP TMS S.A. Securities Litigation, No. 14-6069, S.D. N.Y.; 2015 U.S. Dist. LEXIS 121960).

Mealey's Litigation Procedure - Federal Judge Dismisses Securities Law Claims Against Medical Device Maker

NEW YORK - A federal judge in New York on Sept. 14 dismissed a securities class action complaint filed against a medical device maker and its CEO, ruling that the lead plaintiff in the action failed to properly plead an actionable misrepresentation or scienter in making his federal securities law claims (In re EDAP TMS S.A. Securities Litigation, No. 14-6069, S.D. N.Y.; 2015 U.S. Dist. LEXIS 121960).

Mealey's Labor & Employment - Minnesota Supreme Court: Timing Provision Is Preempted By ERISA

MINNEAPOLIS - A so-called timing provision in the Minnesota Unemployment Insurance Law that requires a supplemental unemployment benefit (SUB) plan to provide supplemental payments only for those weeks an applicant was paid regular, extended or additional unemployment benefits in order for the supplemental payments to be excluded as "wages" is preempted by the Employee Retirement Income Security Act, a divided Minnesota Supreme Court ruled Sept. 9 (Thomas V. Engfer v. General Dynamics Advanced Information Systems Inc., No. A-13-0872, Minn. Sup.; 2015 Minn. LEXIS 503).

Mealey's Labor & Employment - Claims Preempted By ERISA, 9th Circuit Panel Majority Says

SAN FRANCISCO - The majority of the Ninth Circuit U.S. Court of Appeals on Sept. 8 affirmed a district court's dismissal of breach of contract claims after determining that the claims are preempted under the Employee Retirement Income Security Act of 1974 (Oregon Teamster Employers Trust v. Hillsboro Garbage Disposal Inc. et al., No. 13-35555, 9th Cir.; 2015 U.S. App. LEXIS 15925).

Mealey's Labor & Employment - 5th Circuit Reverses Dismissal Of Employee's ERISA Claim, Remands

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on Sept. 8 reversed a district court's decision dismissing a former Johnson & Johnson's employee's claim for violation of the Employee Retirement Income Security Act, finding that the evidence was not sufficient enough to show that he was fired for violating company policy (Dean Napoli v. Johnson & Johnson, No. 14-31000, 5th Cir.).

Mealey's Litigation Procedure - Judge Certifies Class In Securities Class Action Against Wilmington Trust

WILMINGTON, Del. - A federal judge in Delaware on Sept. 3 granted a motion for class certification filed by lead plaintiffs in a securities class action lawsuit, ruling that the lead plaintiffs met all statutory requirements for class certification (In re Wilmington Trust Securities Litigation, No. 10-990, D. Del.; 2015 U.S. Dist. LEXIS 117423).

Mealey's Securities/D&O Liability - Judge Certifies Class In Securities Class Action Against Wilmington Trust

WILMINGTON, Del. - A federal judge in Delaware on Sept. 3 granted a motion for class certification filed by lead plaintiffs in a securities class action lawsuit, ruling that the lead plaintiffs met all statutory requirements for class certification (In re Wilmington Trust Securities Litigation, No. 10-990, D. Del.; 2015 U.S. Dist. LEXIS 117423).

Mealey's Labor & Employment - 6th Circuit Affirms Dismissal Of Trustee's Claim In Pension Dispute

CINCINNATI - Claims by an Employee Retirement Security Income Act plan fiduciary that two corporate defendants are actually the same company, thereby requiring both defendants to adhere to the terms of a union contract, were properly rejected by an Ohio federal judge, the Sixth Circuit U.S. Court of Appeals ruled Sept. 2 (Board of Trustees of the Local 17 Iron Workers Pension Fund v. Harris Davis Rebar LLC, et al., No. 14-3997, 6th Cir.; 2015 U.S. App. LEXIS 15571).

Mealey's Litigation Procedure - Federal Judge Certifies Class In Securities Action Against Insurer, Others

NEWARK, N.J. - A federal judge in New Jersey on Aug. 31 granted a motion filed by lead plaintiffs in a securities class action lawsuit to certify a class of shareholders, ruling that the lead plaintiffs have shown that the instant action meets all statutory requirements for a class action lawsuit (City of Sterling Heights General Employees' Retirement System v. Prudential Financial Inc., No. 12-5275, D. N.J.; 2015 U.S. Dist. LEXIS 115287).

Mealey's Insurance - 10th Circuit Affirms Sanctions Against Counsel Of Record In Securities Suit

DENVER - Because an energy company's counsel of record bore responsibility for disclosing any potentially applicable insurance policies, a 10th Circuit U.S. Court of Appeals panel on Sept. 2 upheld a trial court's award of sanctions against the attorney for failing to submit a copy of a directors and officers (D&O) liability policy during discovery (Sun River Energy Inc. v. Erik S. Nelson, et al., No. 14-1321, 10th Cir.; 2015 U.S. App. LEXIS 15645).

Mealey's Securities/D&O Liability - 10th Circuit Affirms Sanctions Against Counsel Of Record In Securities Suit

DENVER - Because an energy company's counsel of record bore responsibility for disclosing any potentially applicable insurance policies, a 10th Circuit U.S. Court of Appeals panel on Sept. 2 upheld a trial court's award of sanctions against the attorney for failing to submit a copy of a directors and officers (D&O) liability policy during discovery (Sun River Energy Inc. v. Erik S. Nelson, et al., No. 14-1321, 10th Cir.; 2015 U.S. App. LEXIS 15645).

Mealey's Securities/D&O Liability - Federal Judge Certifies Class In Securities Action Against Insurer, Others

NEWARK, N.J. - A federal judge in New Jersey on Aug. 31 granted a motion filed by lead plaintiffs in a securities class action lawsuit to certify a class of shareholders, ruling that the lead plaintiffs have shown that the instant action meets all statutory requirements for a class action lawsuit (City of Sterling Heights General Employees' Retirement System v. Prudential Financial Inc., No. 12-5275, D. N.J.; 2015 U.S. Dist. LEXIS 115287).

Mealey's Securities/D&O Liability - 8th Circuit Substantially Affirms Dismissal Of Securities Law Claims

ST. LOUIS - A federal district court did not err in dismissing a number of claims in a securities fraud lawsuit because those claims were not timely filed, but it did err in dismissing a claim under New Jersey law, as that claim was timely filed, an Eighth Circuit U.S. Court of Appeals panel ruled Sept. 1 (Herschel Zarecor, et al. v. Morgan Keegan & Co. Inc., No. 13-3315, 8th Cir.; 2015 U.S. App. LEXIS 15555).

Mealey's Litigation Procedure - 10th Circuit Affirms Sanctions Against Counsel Of Record In Securities Suit

DENVER - Because an energy company's counsel of record bore responsibility for disclosing any potentially applicable insurance policies, a 10th Circuit U.S. Court of Appeals panel on Sept. 2 upheld a trial court's award of sanctions against the attorney for failing to submit a copy of a directors and officers (D&O) liability policy during discovery (Sun River Energy Inc. v. Erik S. Nelson, et al., No. 14-1321, 10th Cir.; 2015 U.S. App. LEXIS 15645).

Mealey's Labor & Employment - Plan Participant Sufficiently Alleged Facts In Support Of Fiduciary Breach Claims

CLEVELAND - An Ohio federal judge on Aug. 28 denied a motion to dismiss after determining that a retirement plan participant sufficiently alleged claims for breach of fiduciary duty under the Employee Retirement Income Security Act (Nancy Murray v. Invacare Corp. et al., No. 13-1882, N.D. Ohio; 2015 U.S. Dist. LEXIS 114657).

Mealey's Insurance - Panel: District Court's Reading Of Contract In Bad Faith Suit Flawed

CHICAGO - A federal district court erred in granting summary judgment in an insurance bad faith lawsuit because genuine issues of material fact existed as to whether a company had properly pleaded its breach of contract and bad faith claims, a Seventh Circuit U.S. Court of Appeals panel ruled Aug. 31 (Life Plans Inc. v. Security Life of Denver Insurance Co., No. 14-1437, 7th Cir.; 2015 U.S. App. LEXIS 15424).

Mealey's Litigation Procedure - Panel Partially Vacates District Court's Scienter Rulings In Securities Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Aug. 28 affirmed in part, vacated in part and remanded a pair of New York federal court rulings in a securities class action lawsuit, ruling that the district court erred in determining that the lead plaintiff failed to properly plead scienter against a company and its former CEO (Acticon AG v. China North East Petroleum Holdings Ltd., et al., No. 15-172, 2nd Cir.; 2015 U.S. App. LEXIS 15187).

Mealey's Securities/D&O Liability - Panel Partially Vacates District Court's Scienter Rulings In Securities Suit

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Aug. 28 affirmed in part, vacated in part and remanded a pair of New York federal court rulings in a securities class action lawsuit, ruling that the district court erred in determining that the lead plaintiff failed to properly plead scienter against a company and its former CEO (Acticon AG v. China North East Petroleum Holdings Ltd., et al., No. 15-172, 2nd Cir.; 2015 U.S. App. LEXIS 15187).

Mealey's PI/Product Liability - Judge Finds Question Exists On Whether Cameras Could Have Stopped Assault

COLUMBIA, S.C. - A South Carolina federal judge on Aug. 26 refused to set aside an order denying motions for summary judgment filed by a security company and the owners of a mall, finding that issues of fact exist as to whether they had a duty to install security cameras and whether the cameras would have prevented an assault that the property (Laura B. Moise, et al. v. AlliedBarton Security Services LLC, No. 3:12-cv-02022, D. S.C.; 2015 U.S. Dist. LEXIS 112983).

Mealey's Labor & Employment - Employee's Claim For Denial Of Health Benefits Cannot Stand, Federal Judge Says

MINNEAPOLIS - A Minnesota federal judge on Aug. 26 dismissed a third-party claim filed against an employer for breach of the doctrine of promissory estoppel for failing to pay a health benefits claim because the employee's claim is one for wrongful denial of health benefits under the Employee Retirement Income Security Act, which cannot be supported because the employee breached his obligations under the plan (Olmstead Medical Center v. Ronald L. Carter et al., No. 14-2916, D. Minn.; 2015 U.S. Dist. LEXIS 112758).

Mealey's Labor & Employment - Illinois Participants, Boeing Settle Excessive-Fee Case On Eve Of Trial

EAST ST. LOUIS, Ill. - Boeing Co. and participants in its 401(k) plan reached a provisional settlement on claims under the Employee Retirement Income Security Act related to excessive fees, ending nine years of litigation and canceling the bench trial that was set to begin Aug. 26 (Gary Spano, et al. v. The Boeing Company, et al., No. 06-743, S.D. Ill.).