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Class Action
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February 13, 2025
Tesla, Objector Appeal $730M Chancery Board Pay Deal
Tesla Inc. and a stockholder objector have appealed a Delaware Court of Chancery approval of the return of more than $730 million in director stock, option and grant awards to the company that would resolve a suit accusing the electric-car maker's board of raking in "outrageous" compensation packages that cost the company hundreds of millions of dollars.
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February 13, 2025
Arrow Financial Investors Get Final OK For $850K Deal
Investors suing multibank holding company Arrow Financial Corp. received final approval from a New York federal judge Thursday for an $850,000 deal settling claims the company concealed defective internal controls that led to missed financial filings.
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February 13, 2025
Chancery OKs Appraisal Suit Fix For Sears Damage Ruling
A Sears Hometown Stores investor that saw its Delaware Court of Chancery share appraisal suit tanked by the company's bankruptcy in 2019 won a $4.06 per share payout ruling Thursday in a Court of Chancery decision focused on fair price and full and incremental damage claims.
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February 13, 2025
Ohio Ordered To Get Rescinded Unemployment From DOL
An Ohio court on Wednesday ordered the state government to "take all action necessary" to get its share of a COVID-19 pandemic unemployment relief program that Gov. Mike DeWine pulled it out of in 2021 and to distribute that money to qualified residents who missed out.
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February 13, 2025
Profs Back Hotel Guests In 3rd Circ. Algorithmic Pricing Case
A group of academics has joined antimonopoly groups to support hotel guests accusing several Atlantic City casino hotels of using shared software to fix room rates in their Third Circuit fight to revive their suit.
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February 13, 2025
Origin Investors Fixed 'Fatally Vague' Fraud Claim, Judge Says
A California federal judge has ruled that investors' fraud claims against sustainable materials-maker Origin Materials and its co-CEO can move forward, saying the plaintiffs have provided additional details from a confidential witness the judge previously found to be "fatally vague."
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February 13, 2025
ADP 401(k) Participants Win Cert. For 50K ERISA Class
More than 50,000 ADP 401(k) plan participants scored class certification Thursday in their lawsuit accusing the company of retaining poorly performing investments and overcharging them for recordkeeping fees, after a New Jersey federal judge found their claims are typical since they stem from the same alleged fiduciary duty breach by ADP.
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February 13, 2025
Merck Investor Sues Over Gardasil China Market Projections
Pharmaceutical giant Merck & Co. Inc. has been hit with a proposed shareholder class action alleging it overstated global demand for its human papillomavirus vaccine Gardasil, damaging investors when it revealed earlier this month it would not meet its revenue projections for the vaccine and paused shipments to China.
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February 13, 2025
Ga. House Speaker Sued Over State Senator's Ban And Arrest
Georgia Speaker of the House Jon Burns has been hit with a lawsuit from constituents of a lawmaker who was barred from the chamber last month after he called Burns' predecessor "one of the most corrupt Georgia leaders we'll ever see in our lifetimes."
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February 13, 2025
Musk Must Pay Up For Illegal Access To Data, Class Suit Says
Elon Musk should be forced to compensate taxpayers and recipients of government benefits after gaining access to federal databases housing their data, a proposed class told a D.C. federal court, saying the billionaire violated the Computer Fraud and Abuse Act.
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February 13, 2025
Family Ties Could DQ Judge From Hawaii Wildfire Litigation
The federal judge overseeing a proposed class action brought against Maui County, Hawaii, departments by Lahaina residents whose homes were destroyed in a devastating August 2023 wildfire has indicated she is "inclined" to grant a recusal bid.
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February 13, 2025
Sidley Adds White & Case Litigators In Chicago
Sidley Austin LLP has grown its litigation offerings in Chicago with the addition of two former White & Case LLP partners, one of whom served as the leader of that firm's Windy City office.
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February 13, 2025
Greenberg Traurig Adds Skadden Litigator In Delaware
Greenberg Traurig LLP announced Thursday that it has hired a corporate and commercial litigator for its Delaware office who formerly worked at Skadden Arps Slate Meagher & Flom LLP.
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February 13, 2025
6th Circ. Stands By Revival Of Parker-Hannifin 401(k) Suit
The Sixth Circuit declined Parker-Hannifin Corp.'s bid for an en banc review of its ruling that revived a proposed class action from workers who claimed the technology company loaded down its retirement plan with underperforming and costly investment funds.
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February 13, 2025
Musk Says He'll Drop OpenAI Bid If It Scraps 'For Profit' Plans
Elon Musk has hit back at OpenAI's claim that his $97.375 billion takeover bid is improper, noting if the ChatGPT maker agrees to nix plans to become a for-profit business, his offer will be dropped.
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February 12, 2025
Social Media MDL Judge Rips Google, Snap Quick Appeal Bid
A California federal judge indicated Wednesday she likely won't let Google and Snap file interlocutory appeals in multidistrict litigation over social media's allegedly addictive designs, saying the appeals requests make "no sense," and she slammed Meta insurers' unnecessary motion to expedite its coverage dispute with Meta as "unprofessional."
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February 12, 2025
EthereumMax Buyers Seek Cert. In Celeb Crypto Promos Suit
A group of investors in crypto product EthereumMax have asked a federal judge in California to certify a class action accusing Floyd Mayweather Jr., Kim Kardashian and other celebrities of promoting the token, which allegedly was used in a pump-and-dump scheme.
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February 12, 2025
OpenAI Says Musk Takeover Bid 'Exposes' Intent Behind Suit
OpenAI on Thursday told a California federal judge overseeing Elon Musk's lawsuit seeking to block OpenAI from becoming a for-profit enterprise that the Tesla founder has proposed acquiring OpenAI's business, saying the takeover effort reveals Musk's lawsuit to be "an improper bid to undermine a competitor."
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February 12, 2025
Bausch Health Beats Suit Over 'Faking' Financial Stability
Pharmaceutical company Bausch Health Cos. Inc. and its top brass have beaten, for now, a proposed class action accusing them of misleading shareholders about threats to the company's financial stability, with a New Jersey federal judge finding Wednesday that most of the challenged statements in the complaint are inactionable.
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February 12, 2025
Sea Salt Co. Sued Over Lead And Arsenic Levels
A salt company was hit with a proposed class action Tuesday in California federal court over allegations that its salt contains arsenic and lead, asserting that there is no safe level of lead.
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February 12, 2025
Klarna Accused Of Intercepting Creators' Commissions
Online retail finance company Klarna Inc. got hit with a proposed class action by an internet content creator who claims the firm's automatic coupon-finding browser extension redirects customers who click creators' product affiliate links so that Klarna can take the referral commissions those creators depend on.
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February 12, 2025
Judge Partially Certifies Credit Suisse XIV Notes Class Action
A New York federal judge has granted class certification to investors alleging that Credit Suisse manipulated the market for its XIV notes, while denying certification for those claiming losses from misrepresentations, finding that the suggested class failed to resolve previous deficiencies in its proposal.
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February 12, 2025
Boeing Brass Face Chancery Suit Over Safety Breach Scandal
Public employee pension funds in Ohio and Oklahoma have launched a derivative suit in Delaware's Chancery Court against Boeing board members and executives, seeking damages on the aircraft company's behalf tied to production issues and multiple safety breaches involving several Boeing commercial passenger jets.
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February 12, 2025
Paraquat Plaintiffs Urge 7th Circ. To Revive MDL Suits
Four plaintiffs who were set for bellwether trials in multidistrict litigation targeting the herbicide paraquat argued Wednesday that the Seventh Circuit should unwind their summary judgment losses because the district court's ruling was based on "core misunderstandings" about their expert's evidentiary requirements.
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February 12, 2025
4th Circ. Keeps Class Cert. Nixed In Coupon Service Case
Class certification remains off the table in a lawsuit accusing Inmar Inc. of fixing shipping prices for coupon processing services, after a Fourth Circuit panel sided Wednesday with district court findings that none of the three proffered ways to identify a class of manufacturer plaintiffs holds up.
Expert Analysis
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Firms Still Have The Edge In Lateral Hiring, But Buyer Beware
Partner mobility data suggests that the third quarter of this year continued to be a buyer’s market, with the average candidate demanding less compensation for a larger book of business — but moving into the fourth quarter, firms should slow down their hiring process to minimize risks, say officers at Decipher Investigative Intelligence.
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Risk Disclosure Issue Remains After Justices Nix Meta Case
After full briefing and argument, the U.S. Supreme Court recently dismissed Facebook v. Amalgamated Bank as improvidently granted, leaving courts with the tricky endeavor of determining when the failure to disclose a past event in an Item 105 risk disclosure is materially misleading, say attorneys at Lowenstein Sandler.
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Think Like A Lawyer: 1 Type Of Case Complexity Stands Out
In contrast to some cases that appear complex due to voluminous evidence or esoteric subject matter, a different kind of complexity involves tangled legal and factual questions, each with a range of possible outcomes, which require a “sliding scale” approach instead of syllogistic reasoning, says Luke Andrews at Poole Huffman.
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Think Like A Lawyer: Note 3 Simple Types Of Legal Complexity
Cases can appear complex for several reasons — due to the number of issues, the volume of factual and evidentiary sources, and the sophistication of those sources — but the same basic technique can help lawyers tame their arguments into a simple and persuasive message, says Luke Andrews at Poole Huffman.
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Series
Gardening Makes Me A Better Lawyer
Beyond its practical and therapeutic benefits, gardening has bolstered important attributes that also apply to my litigation practice, including persistence, patience, grit and authenticity, says Christopher Viceconte at Gibbons.
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And Now A Word From The Panel: Ballpark Lessons For MDLs
The baseball offseason has provided some time to ponder how multidistrict litigation life resembles the national pastime, including with respect to home-field advantage, major television markets and setting records, says Alan Rothman at Sidley.
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Takeaways From DOJ's Intervention On Pricing Algorithm Use
A recent U.S. Justice Department amicus brief arguing that a Nevada federal judge wrongly focused on the nonbinding aspect of software company Cendyn Group's pricing algorithm underscores the growing challenge of determining when, if ever, pricing algorithms are legal, say attorneys at Rule Garza.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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7th Circ. Travel Time Ruling Has Far-Reaching Implications
In a case of first impression, the Seventh Circuit’s recent holding in Walters v. Professional Labor Group will have significant implications for employers that must now provide travel time compensation for employees on overnight assignments away from home, says Anthony Sbardellati at Akerman.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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Args In 2 High Court Cases May Foretell Clarity For Employers
Mary Anna Brand at Maynard Nexsen examines possible employment implications of two cases argued before the Supreme Court this fall, including a higher bar for justifying employees as overtime exempt under the Fair Labor Standards Act, and earlier grants of prevailing party status for employee-plaintiffs seeking attorney fees.
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Calif. Ruling May Shield Public Employers From Labor Claims
In Stone v. Alameda Health System, the California Supreme Court recently exempted a county hospital from state-mandated rest breaks and the Private Attorneys General Act, granting government employers a robust new bulwark against other labor statutes by undermining an established doctrine for determining if a law applies to public entities, say attorneys at Hunton.
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Service Providers Must Mitigate 'Secondary Target' Risks
A lawsuit recently filed in an Illinois federal court against marketing agency Publicis over its work for opioid manufacturers highlights an uptick in litigation against professional service providers hired by clients that engaged in alleged misconduct — so potential targets of such suits should be sure to conduct proper risk analysis and mitigation, say attorneys at Dechert.
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2nd Circ. AmTrust Decision Shows Audit Reports Still Matter
Though the Second Circuit eventually found on reconsidering a case over the high-profile accounting meltdown at AmTrust that audit reports are material to investors, its previous contrary holding highlights the seriousness of the ongoing crisis of confidence in the audit report, say attorneys at Bernstein Litowitz.
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.