NEW YORK - Without providing further detail, the Second Circuit U.S. Court of Appeals on Nov. 18 denied a petition for rehearing and/or rehearing en banc, which was filed by former Galleon Group head and convicted inside trader Raj Rajaratnam (United States of America v. Raj Rajaratnam, No. 11-4416, 2nd Cir.).
ATLANTA - A federal judge in Georgia on Nov. 18 granted the Federal Deposit Insurance Corp.'s request to file an amended complaint against former executives of the failed First Security National Bank (FSNB) alleging that they mismanaged bank policies and underwriting, saying he found "no persuasive justification" for denying the FDIC's request (Federal Deposit Insurance Corp. v. Dan R. Baker, et al., No. 12-4173, N.D. Ga.; 2013 U.S. Dist. LEXIS 163504).
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 15 agreed to hear an appeal of a securities class action lawsuit seeking determination of whether the Supreme Court's ruling in Basic Inc. v. Levinson should be modified with regard to its presumption of reliance coming from the fraud-on-the-market theory (Halliburton Co., et al. v. Erica F. John Fund Inc., No. 13-317 U.S. Sup.).
NEW YORK - JPMorgan Chase & Co. will issue a binding offer to the trustees of 330 residential mortgage-backed securities (RMBS) trusts that were issued by J.P. Morgan Chase and Bear Stearns, after reaching a $4.5 billion agreement with 21 institutional investors, according to a JPMorgan press release issued on Nov. 15.
WILMINGTON, Del. - A federal judge in Delaware on Nov. 13 dismissed a shareholder derivative suit against certain of a company's directors and officers, because the shareholder failed to prove that the defendants were financially interested in the outcome of a proxy vote (Ruth Abrams v. James L. Wainscott, et al., No. 11-cv-00297, D. Del.; 2013 U.S. Dist. LEXIS 161556).
MELBOURNE, Australia - An Australian judge on Nov. 15 denied a former asbestos product maker's request to transfer a claimant's action for damages in relation to nervous shock allegedly caused by her father's mesothelioma death and its request for security, finding that the court had jurisdiction and that the claims had a reasonable prospect of success (Tamaresis v CSR Ltd  VSC 613, Victoria Sup.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Residential Capital LLC (ResCap) on Nov. 15 ruled that the baseline collateral of the Junior Secured Noteholders (JSNs) should be adjusted to $1,846,155,468 based on the fact that the JSNs are undersecured (Official Committee of Unsecured Creditors v. UMB Bank NA [In Re: Residential Capital LLC], No. 12-12020, Adv. No. 13-01277, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - The reorganized version of bankrupt Rotech Healthcare Inc. on Nov. 12 filed a brief objecting to the $851,105.20 fee application of the law firm that represented the Official Committee of Equity Security Interest Holders, arguing that the firm did not provide value to the bankruptcy estate (Baker & McKenzie v. Rotech Healthcare Inc. [In Re: Rotech Healthcare Inc.], No. 13-10741, Chapter 11, D. Del. Bkcy.).
NEW YORK - The secured lender trustee in the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Nov. 11 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York seeking $2,855,464.27 from an investment management company that had retained the law firm's services before bankruptcy (FTI Consulting Inc. v. K1 Investment Management LLC, et al. $(In Re: Dewey & LeBoeuf$), No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
SAN JOSE, Calif. - A graphic designer filed a putative class action against Adobe Systems Inc. in California federal court on Nov. 11, leveling claims of unfair business practices and breach of contract related to a massive security breach that the software giant recently experienced (Christina Halpain v Adobe Systems Inc., No. 5:13-cv-05226, N.D. Calif.).
WASHINGTON, D.C. - A District of Columbia federal judge on Nov. 8 granted in part and denied in part a plaintiff's motion to strike affirmative defenses in a lawsuit challenging the U.S. government's takeover of American International Group Inc. (AIG), ruling that the government may make all of its affirmative defenses but its laches defense (Starr International Co. v. The United States, No. 11-779C, Fed. Clms.).
DETROIT - A group of interested parties in the Chapter 9 bankruptcy of the City of Detroit on Nov. 11 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan for leave to conduct limited discovery regarding the city's motion to secure post-petition financing of $350 million (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW ORLEANS - Former UBS Financial Services Inc. financial advisers and branch managers must arbitrate their claims that the company violated the Employee Retirement Income Security Act by deeming certain funds in their benefits plan forfeited upon their separation from the company, the Fifth Circuit U.S. Court of Appeals ruled Nov. 11 in an unpublished opinion (Bill Hendricks, et al. v. UBS Financial Services, Incorporated, Nos. 13-40692, 13-40693, 5th Cir.; 2013 U.S. App. LEXIS 22779).
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 12 denied review of a divided en banc Fifth Circuit U.S. Court of Appeals ruling that the Employee Retirement Income Security Act permits health plan fiduciaries to seek reimbursement for medical benefits the plan paid on behalf of a participant from a special needs trust funded by a third-party tortfeasor settlement (Larry Griffin Special Needs Trust, et al. v. ACS Recovery Services, Inc., et al., No. 13-182, U.S. Sup.).
CHICAGO - A divided en banc Seventh Circuit U.S. Court of Appeals on Nov. 7 ruled that the husband of a health plan participant may proceed with his claims that the plan sponsor and insurer breached their fiduciary duties under the Employee Retirement Income Security Act by failing to inform him during telephone conversations that the medical providers who were going to perform emergency surgery on his wife were out of network (James E. Killian v. Concert Health Plan, et al., No. 11-1112, 7th Cir.; 2013 U.S. App. LEXIS 22657).
SAN JOSE, Calif. - A federal judge in California on Nov. 6 ordered a fund manager to pay nearly $7.8 million in disgorgement, prejudgment interest and civil penalties for misrepresenting the investment activity of three funds he was managing in violation of the anti-fraud provisions of the federal securities laws (Securities and Exchange Commission v. Small Business Capital Corp., et al., No. 12-3237, N.D. Calif.; 2013 U.S. Dist. LEXIS 159227).
NEWARK, N.J. - Summary judgment against a former employee of Autodesk Inc. who is alleged to have provided inside information to a hedge fund manager as part of an insider trading scheme is warranted because the employee's relationship with the hedge fund manager demonstrates a "personal benefit to the tipper," a federal judge in New Jersey ruled Nov. 6 (Securities and Exchange Commission v. Clay Capital Management LLC, et al., No. 11-5020, D. N.J.; 2013 U.S. Dist. LEXIS 159130).
NEW YORK - A federal district court did not err in dismissing a securities class action complaint against Freddie Mac for alleged federal securities law violations because the lead plaintiff failed to plead loss causation, a Second Circuit U.S. Court of Appeals panel ruled Nov. 5 (Central States, Southeast and Southwest Areas Pension Fund, et al. v. Federal Home Loan Mortgage Corp., et al., No. 12-4353, 2nd Cir.; 2013 U.S. App. LEXIS 22413).
NEW HAVEN, Conn. - RBS Securities Inc. will pay more than $153 million to settle claims that it misrepresented the investment quality of a $2.2 billion residential mortgage-backed security (RMB) offering it was promoting in violation of federal securities law, according to court documents filed Nov. 7 in Connecticut federal court (Securities and Exchange Commission v. RBS Securities Inc., No. 13-1643, D. Conn.).
NEW YORK - The federal judge in New York overseeing the U.S. government's civil forfeiture action against a hedge fund and certain of its related entities on Nov. 6 granted approval of a plea deal that will see the defendants paying $1.8 billion to settle claims that they engaged in a massive insider trading scheme (United States of America v. SAC Capital Advisors LP, et al., No. 13-5182, S.D. N.Y.).
WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals on Nov. 1 affirmed summary judgment in favor of the Pension Benefit Guaranty Corp. (PBGC) on claims by USAirways Inc. pilots that the PBGC violated the Employee Retirement Income Security Act and the terminated plan when it made its final benefit determinations (Thomas G. Davis, et al. v. Pension Benefit Guaranty Corporation, No. 12-5274, D.C. Cir.; 2013 U.S. App. LEXIS 22254).
NEW YORK - U.S. Bank National Association, as trustee of a mortgage loan trust, sued a Citigroup Inc. subsidiary on Oct. 31, alleging that the subsidiary breached its representations with regard to a mortgage loan purchase agreement and pooling and servicing agreement for residential mortgage-backed securities (U.S. Bank National Association v. Citigroup Global Markets Realty Corp., No. 653816/2013, N.Y. Sup., New York Co.).
SAVANNAH, Ga. - A Georgia federal judge on Oct. 30 denied a health insurer's motion to dismiss a wrongful denial of health care benefits suit but granted the plaintiff's motion to amend his complaint to plead claims under the Employee Retirement Income Security Act (Marwin Moss v. Blue Cross and Blue Shield of Florida Inc., et al., No. 13-159, S.D. Ga.; 2013 U.S. Dist. LEXIS 155751).
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 4 declined to review an 11th Circuit U.S. Court of Appeals unpublished ruling that an action under the Employee Retirement Income Security Act to recover disability benefits is time-barred because the claimant failed to file a claim within the plan's one-year notification period (Beatriz Martinez-Claib, M.D. v. Business Men's Assurance Company of America, et al., No. 12-1403, U.S. Sup.).
ROCHESTER, N.Y. - A Xerox Corp. pension plan participant's claim that the plan breached its fiduciary duty under the Employee Retirement Income Security Act by disregarding a Ninth Circuit U.S. Court of Appeals ruling and applying a phantom account offset to his pension benefits was not time-barred, although his claims for benefits were, a federal judge in New York ruled Oct. 30 (Testa v. Becker, et al., No. 10-6229, W.D. N.Y.; 2013 U.S. Dist. LEXIS 155577).