ST. PAUL, Minn. - An Eighth Circuit U.S. Court of Appeals panel erred in reversing and remanding a federal district court's class certification ruling because the panel's ruling is in conflict with the law of several federal circuit courts and the U.S. Supreme Court, shareholders argue in a petition for rehearing and rehearing en banc filed May 10 (IBEW Local 98 Pension Fund, et al. v. Best Buy Co., Inc., et al., No. 14-3178, 8th Cir.).
MADISON, Wis. - A Wisconsin federal judge on May 10 granted defendant Bank of America Group Benefits Program's motion for summary judgment in an action alleging that it improperly denied the University of Wisconsin Hospitals and Clinics Authority (UWHCA) benefits under the terms of the Bank of America Benefits Program, a plan subject to the Employee Retirement Income Security Act (University of Wisconsin Hospitals and Clinics Authority v. Bank of America Group Benefits Program, No. 15-cv-280, W.D. Wis.; 2016 U.S. Dist. LEXIS 61614).
WILMINGTON, Del. - A federal judge in Delaware on May 12 accepted a federal magistrate judge's report and recommendation in a shareholder derivative lawsuit and rejected a shareholder's objections to the report, ruling that it properly pleads the In re Caremark International Inc. Derivative Litigation "should have known" standard in stating that the shareholder failed to plead demand futility (KBC Asset Management NV v. Kevin J. McNamara, et al., No. 13-1854, D. Del.).
WILMINGTON, Del. - A federal jury in Delaware on May 12 found that Cisco Systems Inc. willfully infringed two patents related to network security and surveillance, awarding the plaintiff $23.7 million in "reasonable royalty" damages, while also deeming the patents in suit to be valid (SRI International Inc. v. Cisco Systems Inc., No. 1:13-cv-01534, D. Del.).
CAMBRIDGE, Mass. - Aegerion Pharmaceuticals Inc. on May 12 said in a press release that it will plead guilty to federal misdemeanor violations and pay about $40 million to settle investigations by the U.S. Department of Justice and the Securities and Exchange Commission into its sales activities related to the marketing of its cholesterol drug Juxtapid.
NEW YORK - Dismissal of claims in a securities class action lawsuit against Weight Watchers International Inc., certain of its former executive officers and others is proper because lead plaintiffs in the action failed to properly state a claim for relief in making their federal securities law claims, a federal judge in New York ruled May 11 (In re Weight Watchers International Inc. Securities Litigation, No. 14-1997, S.D. N.Y.; 2016 U.S. Dist. LEXIS 62456).
SAN FRANCISCO - A federal magistrate judge in California on May 6 denied a request by defendants in a securities class action lawsuit to compel lead plaintiffs to turn over certain documents, ruling that the documents are protected by the work product doctrine or are not relevant to the action (Babak Hatamian, et al. v. Advanced Micro Devices Inc., et al., No. 14-0226, N.D. Calif.; 2016 U.S. Dist. LEXIS 60551).
PHILADELPHIA - A Philadelphia museum and its security company on May 6 agreed to pay a contractor who nearly died after falling through a glass panel 38 feet to the floor more than $7 million, according to a press release (Phani Guthula v. Rodin Museum, et al., No. 130801730, Pa. Comm. Pls., Philadelphia Co.).
BROOKLYN, N.Y. - A broker-dealer with dual citizenship in the United States and Canada pleaded guilty in New York federal court on May 9 to his role in a $250 million money laundering scheme while orchestrating more than 40 stock pump-and-dump schemes between 2010 and 2014, according to a press release issued by the U.S. Attorney's Office for the Eastern District of New York (United States of America v. Roberts Bandfield, et al., No. 14-cr-0476, E.D. N.Y.).
NEW YORK - A drug company will pay $55 million to shareholders to settle claims that it failed to disclose adverse clinical trial results for its nonalcoholic steatohepatitis drug, obeticholic acid (OCA), in violation of federal securities laws, according to court documents filed in New York federal court on May 5 (In re Intercept Pharmaceuticals Inc. Securities Litigation, No. 14-1123, S.D. N.Y.).
PASADENA, Calif. - A Ninth Circuit U.S. Court of Appeals panel on May 4 heard oral arguments in an appeal of a California federal court judge's ruling dismissing an amended securities class action complaint for failure to properly plead scienter (Nathaniel L. Anderson v. Peregrine Pharmaceuticals Inc., et al., No. 14-55882, 9th Cir.).
SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on May 3 ruled that a federal district court did not err in dismissing federal securities law claims against a company, several of its current and former officers and directors and underwriters of the company's initial public offering (IPO) because investors failed to properly plead any material misrepresentations or scienter in making their claims (Cliff Mosco, et al. v. Motricity Inc., et al., No. 13-36029, 9th Cir.).
PHILADELPHIA - A New Jersey judge erroneously ruled that various out-of-network (ONET) medical providers lack standing to sue the Connecticut General Life Insurance Co. and affiliated entities (CIGNA, collectively) under the Employee Retirement Income Security Act for benefits allegedly owed to their assignors, pursuant to the recent ruling in North Jersey Brain & Spine Center v. Aetna, Inc. (801 F.3d 369, 372 [3rd Cir. 2015]) (NJBSC), the Third Circuit U.S. Court of Appeals concluded May 2 in an unpublished ruling (Darlery Franco, et al. v. Connecticut General Life Insurance Company, et al., Nos. 14-3395, -3396, 3rd Cir.; 2016 U.S. App. LEXIS 7886).
SAN FRANCISCO - A federal district court erred in dismissing a securities class action lawsuit and denying reconsideration of its ruling because shareholders properly pleaded a material misrepresentation, scienter and loss causation in making their federal securities law claims, the shareholders argue in an appellant brief filed May 2 in the Ninth Circuit U.S. Court of Appeals (Joseph Curry, et al. v. Yelp Inc., et al., No. 16-15104, 9th Cir.).
NEW YORK - A federal judge did not err in dismissing federal securities laws claims against defendants in a securities class action lawsuit because shareholder claims were time-barred under the applicable statute of repose, a Second Circuit U.S. Court of Appeals panel ruled April 29 (DeKalb County Pension Fund v. Transocean Ltd., et al., No. 14-0894, 2nd Cir.).
WASHINGTON, D.C. - The U.S. Supreme Court on May 2 declined review of a Fifth Circuit U.S. Court of Appeals decision affirming a federal district court's ruling that denied a motion for class certification in a securities class action lawsuit based upon the damages methodology used (Robert Ludlow, et al. v. BP PLC, No. 15-952, U.S. Sup.).
NEW HAVEN, Conn. - A reinsurer told a federal court in Connecticut on April 28 that Connecticut's prepleading security statute was not intended to protect corporations not associated with the state (Select Insurance Company v. Excalibur Reinsurance Corporation, f/k/a PMA Capital Insurance Company, No. 15-cv-00715, D. Conn.).