NEW HAVEN, Conn. - An insurer told in a federal court in Connecticut on April 14 that its reinsurer's objection to being ordered to post prepleading security is without merit (Travelers Indemnity Company v. Excalibur Reinsurance Corporation, No. 12-cv-01793, D. Conn.).
BOSTON - A federal judge in Massachusetts on April 7 denied motions to dismiss in a securities class action lawsuit, ruling that lead plaintiffs have properly pleaded their federal securities law claims at this point in the litigation (Silverstrand Investments, et al. v. AMAG Pharmaceuticals Inc., et al., No. 10-10470, D. Mass.; 2014 U.S. Dist. LEXIS 48231).
WILMINGTON, Del. - A Delaware vice chancellor on April 8 denied a motion for summary judgment and said evidence regarding accusations brought by shareholders against certain of a company's directors and officers should be developed at trial (Herbert Chen, et al. v. Robert Howard-Anderson, et al., No. 5878-VCL, Del. Chanc.; 2014 Del. Ch. LEXIS 50).
NEWARK, N.J. - The Federal Trade Commission (FTC) has authority to bring an unfair and deceptive acts complaint against a hotel chain related to its data security, a New Jersey federal judge ruled April, declining to dismiss claims that sprung from breaches of the Wyndham Worldwide Corp.'s computer network (Federal Trade Commission v. Wyndham Worldwide Corp., et al., No. 2:13-cv-01887, D. N.J.; 2014 U.S. Dist. LEXIS 47622).
NEW YORK - The trustee appointed under the Securities Investor Protection Act (SIPA) litigation in the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investment branch of MF Global Holdings Ltd. (MFGH), on April 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that a claim against the MFGI estate should be reduced by $215,386.73 (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).
SAN JOSE, Calif. - A purported shareholder told a federal court in California on April 7 that certain directors and officers of an electronics company breached their fiduciary duties by willfully infringing on certain patents (Lee Voss v. Sehat Sutardja, et al., No. 14-cv-01581, N.D. Calif.).
WASHINGTON, D.C. - Although an Illinois federal judge properly determined that the Chicago Board Options Exchange Inc. (CBOE) did not infringe a financial trading patent, she erred in deeming one of the patent's claims indefinite, the Federal Circuit U.S. Court of Appeals ruled April 7 (Chicago Board Options Exchange Inc. v. International Securities Exchange LLC, No. 13-1326, Fed. Cir.).
CHICAGO - A federal judge in Illinois on April 7 granted certain of a company's directors' and officers' motion to dismiss a shareholder derivative lawsuit because the alleged breaches of fiduciary duty were the product of valid business judgment (Jan Donnawell v. Daniel Hamburger, et al., No. 12-cv-09074, N.D. Ill.; 2014 U.S. Dist. LEXIS 47831).
WILMINGTON, Del. - A group of creditors who are also securities claimants in separate litigation related to the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on April 4 filed a brief in the U.S. Bankruptcy Court for the District of Delaware opposing OSG's motion seeking approval of its disclosure statement regarding its joint plan of reorganization "because it fails to provide sufficient information" required by the Bankruptcy Code (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - Nortel Networks Corp. (NNC), the Canadian entity that filed a Chapter 15 bankruptcy proceeding in the U.S. Bankruptcy Court for the District of Delaware in conjunction with the Chapter 11 bankruptcy petition that was filed by its parent company Nortel Networks Inc. (NNI), on April 4 filed a brief in the Bankruptcy Court objecting to NNI's motion for modification to the recognition order so that NNI could pursue securities litigation against the directors and officers of NNC (In Re: Nortel Networks Corporation, No. 09-10164, Chapter 15, D. Del. Bkcy.).
DAYTON, Ohio - Defendants in a shareholder derivative lawsuit claimed April 2 that a plaintiff was not a shareholder in the company on the date he brought the suit and, therefore, he lacks standing to sue derivatively on behalf of a corporation (J. Robert Smith v. Peter C. Wallace, et al., No. 12-cv-00281, S.D. Ohio).
NEW YORK - A federal district court erred in ruling that a health plan participant did not have standing under the Employee Retirement Income Security Act to challenge calculations of benefits for members who are eligible for Medicare, the Second Circuit U.S. Court of Appeals ruled April 4 in an unpublished opinion remanding the case to the trial court (Marianne Gates v. UnitedHealthGroup Incorporated, et al., No. 13-2114-cv, 2nd Cir.; 2014 U.S. App. LEXIS 6136).
NEW YORK - A federal judge in New York on March 31 granted several motions to dismiss filed by defendants in a securities class action lawsuit stemming from the News Corp. phone-hacking scandal in the United Kingdom, ruling that a pension fund has failed to plead personal jurisdiction over certain defendants and an actionable misrepresentation among others (Lewis Wilder, et al. v. News Corp., et al., No. 11-4947, S.D. N.Y.).
TRENTON, N.J. - A pension plan sponsored by a nonprofit health care corporation that is controlled by or associated with a church does not qualify for exemption from the Employee Retirement Income Security Act as a church plan, a federal judge in New Jersey ruled March 31 in an unpublished opinion (Laurence Kaplan v. Saint Peter's Healthcare System, et al., No. 13-2941, D. N.J.; 2014 U.S. Dist. LEXIS 44963).
NEW YORK - More than 2,600 customers of bankrupt MF Global Holdings Ltd. (MFGH) on April 4 will begin receiving a total of $6.656 billion in funds they invested with MFGH's customer branch, MF Global Inc. (MFGI), according to a statement issued by the Securities Investor Protection Act (SIPA) trustee (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).