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Delaware
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January 10, 2025
X Fights Finding Severance Row Contract Claims Can Survive
X Corp. and Elon Musk squared off with ex-Twitter workers in Delaware federal court, filing dueling briefs that took opposing stances over whether a district judge should adopt a recommendation to keep alive some breach-of-contract allegations in the workers' proposed class action claiming they were cheated out of severance benefits.
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January 10, 2025
GSK Hits Back At Moderna Counterclaims In Patent Feud
GlaxoSmithKline wants a Delaware federal court to quickly reject some of the counterclaims leveled by Moderna in response to patent suits over the company's mRNA vaccines.
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January 10, 2025
New Pirate Loot Claims Lodged In Chancery
A Flying Dutchman of a legal wrangle over a treasure-laden, sunken pirate ship off Cape Cod, Massachusetts, surfaced again Friday in Delaware's Court of Chancery in an investor suit demanding books and records on a decades-long salvage operation and alleging possible fraudulent conveyances by "rogue fiduciaries."
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January 10, 2025
Fed. Circ. Revives Novartis Entresto Patent In MDL
The Federal Circuit on Friday revived a patent covering Entresto, a blockbuster heart failure drug made by Novartis, as part of multidistrict litigation where the company has tried to block generic versions of the product.
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January 10, 2025
3rd Circ. Won't Revive Ex-US Steel Worker's Race Bias Suit
The Third Circuit upheld U.S. Steel's win over a Black former train operator's lawsuit claiming he was fired after he was erroneously blamed for a 2015 derailment, ruling Friday he'd failed to show his race cost him the job rather than his lengthy disciplinary record.
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January 10, 2025
Fed. Circ. Skeptical Ioengine Can Overcome On-Sale Bar
A Federal Circuit panel seemed doubtful Friday that none of the hundreds of people who downloaded a firmware upgrade affiliated with an early flash drive used it, which Ioengine LLC would need to prove to beat an on-sale bar invalidation of its patents.
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January 10, 2025
US Trustee Balks At Ch. 11 Bid Protections In First Mode Case
A package of bid protections for the stalking horse of bankrupt electric-engine developer First Mode needs to be reined in, the Office of the U.S. Trustee has said, urging a Delaware bankruptcy judge to reject the debtor's request that expenses and fees tied to the $15 million bid be paid as priority claims.
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January 10, 2025
Senior Living Co. Sued Over Alleged Breach Of Worker Data
A former employee of a Delaware-headquartered, multi-state support organization for affiliated senior living centers has lodged a proposed class action against the business in Pennsylvania federal court, alleging damages tied to a cyberattack that exposed employee data.
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January 09, 2025
IP Forecast: OpenAI, Microsoft Look To Toss NYT Case
OpenAI and its backers at Microsoft will try persuading a New York judge to dismiss one of the major copyright suits against them, with arguments that using news stories to train the startup's artificial intelligence model is a "transformative" use. Here's a spotlight on where that case stands — plus all the other major intellectual property matters on deck in the coming week.
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January 09, 2025
Activision Brands $75B Del. Merger Suit 'Scattershot'
An attorney for former Activision-Blizzard directors and top officers told Delaware's chancellor on Thursday that stockholder attorneys are pursuing a massive but "scattershot" suit challenging the company's $75.4 billion merger with Microsoft Corp., a deal that produced both a disputed $31 billion premium and a 329-page third amended lawsuit.
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January 09, 2025
Amazon Loses Bad Faith Claims Against Nokia At ITC
A U.S. International Trade Commission judge has shot down Amazon's arguments that Nokia failed to offer reasonable or nondiscriminatory patent license terms, ruling instead that Amazon was infringing a series of Nokia patents related to video technology.
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January 09, 2025
Lutnick, Cantor Seek Toss Of BGC Reorganization Suit In Del.
An attorney for billionaire Howard Lutnick and Cantor Fitzgerald told a Delaware vice chancellor on Thursday that former BGC Partners LP stockholders who sued over allegedly unfair terms in its conversion into a public company raised derivative claims that instead belong to the converted company.
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January 09, 2025
Pharma Co. Says Ex-CEO's Bias Allegations Come Up Short
Canadian biopharmaceutical company FSD Pharma Inc. is urging the Third Circuit to affirm the enforcement of a $2 million arbitral award against its ex-CEO, arguing Wednesday that the former executive's allegations of bias against the arbitrator have already been rejected.
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January 09, 2025
FTX Squabbles With Crypto Startup Over EU Distributions
The estate of bankrupt crypto exchange FTX said it had no involvement with a startup cryptocurrency exchange's announcement that it had purchased FTX EU and would be handling distributions to former customers of the FTX European subsidiary.
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January 09, 2025
5 Things Executive Pay Attys Should Keep An Eye On In 2025
Tesla chief executive Elon Musk will be seeking a green light for a $56 billion pay package while a new administration in the White House may scuttle proposed incentive pay regulations and a ban on noncompete agreements. Here, Law360 looks at five things executive compensation lawyers will be following in the new year.
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January 09, 2025
Atty Survives Ex-Young Conaway Coworker's Assault Claim
A Pennsylvania federal judge said Thursday that a former Young Conaway Stargatt & Taylor LLP attorney's assault claim against a onetime colleague at the firm is unviable because substantial proof exists to show that the actions in question were done to defend another person.
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January 09, 2025
Musk Could Dodge Some Claims In X Severance Suit
Six former Twitter employees who alleged they weren't paid severance benefits after Elon Musk took over the company shouldn't be able to proceed with their claims under Texas law, a Delaware federal magistrate judge said, but he recommended that claims under California and New York law be given a second chance.
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January 08, 2025
Group Alleges $10M 'Sham' In Fla. Plant-Based Co. Stock Deal
A Canadian investment group has sued two Delaware corporations in Florida federal court over a "sham" stock deal, alleging it was fraudulently induced to sell its plant-based food technology company and later cheated out of $10 million worth of cash and common stock it was promised.
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January 08, 2025
Edward Jones Fined $17M Over Customer Transition Fees
Edward Jones has agreed to pay $17 million to end an investigation into alleged supervisory failures that may have led it to overcharge customers who transitioned from its brokerage division to its advisory division, state regulators announced Wednesday.
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January 08, 2025
Musk Appeals $56B Pay Package Rejection To Del. High Court
Tesla Inc. CEO Elon Musk and other top Tesla executives officially appealed to the Delaware Supreme Court on Wednesday a series of chancellor rulings that scuttled Musk's $56 billion, 10-year pay package and awarded a shareholder's counsel $345 million in fees in the yearslong derivative dispute.
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January 08, 2025
Shareholder Atty Urges Del. Justices To Revive Skechers Suit
An attorney for a shareholder of footwear maker Skechers Inc. told Delaware's Supreme Court on Wednesday that the Court of Chancery had ample reason to keep alive his suit alleging failure to control insider use of corporate aircraft for personal travel that the court dismissed instead.
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January 08, 2025
Welch's Asks 3rd Circ. To Nix Alleged Harasser Rehire Order
Welch's is asking the Third Circuit to undo a September order from a Pennsylvania judge requiring it to rehire a worker fired for allegedly sexually harassing a co-worker, saying the labor arbitrator who issued the decision failed to make a clear finding of fact both initially and on remand.
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January 08, 2025
Criminal Case Against Terraform Founder Said To Exceed SEC's
The $40 billion criminal case against Terraform founder Do Kwon contains evidence such as recordings and seized mobile phones that exceed what securities regulators presented when they prevailed against him at a civil fraud trial, prosecutors said Wednesday.
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January 08, 2025
Mortgage Cos. Fined $20M Over Cybersecurity Breach
Bayview Asset Management LLC and three affiliates on Wednesday agreed to pay a $20 million fine and improve their cybersecurity programs to settle allegations from 53 state financial regulators that the mortgage companies had deficient cybersecurity practices and didn't fully cooperate with regulators after a 2021 data breach.
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January 08, 2025
Chancery Awards $176M Atty Fee In Tesla Board Pay Suit
Delaware's chancellor approved on Wednesday a $176.16 million Tesla stockholder class attorney fee award to three firms for a settlement of an excessive director compensation suit that is expected to return $734 million to the company through a combination of director stock, option and cash givebacks.
Expert Analysis
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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Class Actions At The Circuit Courts: September Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy identifies practice tips from four recent class certification rulings involving denial of Medicare reimbursements, automobile insurance disputes, veterans' rights and automobile defects.
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How NLRB Memo Balances Schools' Labor, Privacy Concerns
Natale DiNatale at Robinson & Cole highlights the recent National Labor Relations Board advice memorandum that aims to help colleges reconcile competing obligations under the National Labor Relations Act and the Family Educational Rights and Privacy Act as university students flock toward unionization.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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What 7th Circ. Collective Actions Ruling Means For Employers
With the Seventh Circuit’s recent Fair Labor Standards Act ruling in Vanegas v. Signet Builders, a majority of federal appellate courts that have addressed the jurisdictional scope of employee collective actions now follow the U.S. Supreme Court's limiting precedent, bolstering an employer defense in circuits that have yet to weigh in, say attorneys at Jackson Lewis.
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A Look At The Economic Impact Of Drug Patent Differentiation
Given the Federal Trade Commission’s recent emphasis on unfair competition based on disputed patent listings, pharmaceutical market participants are likely to require nuanced characterizations of actual and but-for market competition when multiple patents differentiate multiple products, say economists at Competition Dynamics.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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Del. Dispatch: Drafting Lessons For Earnout Provisions
The Delaware Court of Chancery's recent decision in Medal v. Beckett Collectibles provides guidance for avoiding ambiguity in provisions relating to the acceleration of earnout payments under specified circumstances, and provisions mandating good faith negotiations before bringing earnout litigation, say attorneys at Fried Frank.
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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New Lessons On Managing Earnout Provision Risks
Earnout provisions can be a useful tool for bridging valuation gaps in M&A, particularly in developmental-stage pharmaceutical transactions, but the Delaware Chancery Court’s recent decision in Shareholder Representative Services v. Alexion sheds new light on the inherent risks and best practices for managing them, say attorneys at Cleary.
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11 Patent Cases To Watch At Fed. Circ. And High Court
As we head into fall, there are 11 patent cases to monitor, touching on a range of issues that could affect patent strategy, such as biotech innovation, administrative rulemaking and patent eligibility, say Edward Lanquist and Wesley Barbee at Baker Donelson.
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Opinion
3rd. Circ. Got It Right On Cancer Warning Claims Preemption
The Third Circuit's recent, eminently sensible ruling in a failure-to-warn case against Roundup manufacturer Monsanto, holding that the Federal Insecticide, Fungicide and Rodenticide Act preempts state law claims, provides a road map that other courts should adopt, says Lawrence Ebner at the Atlantic Legal Foundation.