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Delaware
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December 19, 2024
Fed, OCC 'Asleep At Wheel' On Merger Policy, Warren Says
Sen. Elizabeth Warren on Wednesday accused top federal bank regulators of blowing off calls for tougher merger scrutiny and leaving the financial system exposed to dangerous megadeals, blasting them as "asleep at the wheel" as the Capital One-Discover merger inched closer to approval.
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December 19, 2024
3rd Circ. Backs $22M Win For Battery Co. Workers In Pay Suit
The Third Circuit held Thursday that a Pennsylvania battery manufacturer flouted federal labor law when it failed to pay workers $22 million for time they spent changing in and out of protective gear, rejecting the company's assertion it was only obligated to pay workers what was "reasonable."
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December 19, 2024
Fresenius Loses Invalidity Argument In Nausea Drug IP Fight
Fresenius Kabi USA LLC has lost its arguments in Delaware federal court that claims in a pair of Heron Therapeutics patents for a nausea drug were invalid, keeping Fresenius' generic from entering the market for around a decade.
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December 19, 2024
Calif. Hotel's Ch. 11 'Highly Likely' To Be Transferred To Del.
A Delaware bankruptcy judge said Thursday he was "highly likely" to transfer the second Chapter 11 case of a San Jose, California, hotel back to the First State, granting an initial win to a lender that argued the case should be moved and dismissed as a bad faith filing.
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December 19, 2024
X Workers Say Entire Severance Suit Should Survive
Former X employees urged a Delaware federal court to set aside portions of a magistrate judge's recommendation that the court partially toss their unpaid severance benefits lawsuit, saying the judge incorrectly found that a merger agreement stripped them of standing.
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December 19, 2024
DC Apartment Complex Hits Chapter 11 With Over $10M Debt
The operator of an apartment complex in Washington, D.C., filed for Chapter 11 in Delaware, saying the impact of COVID-19 and the district's affordable housing voucher program have led to diminishing cash reserves.
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December 19, 2024
Genworth Can Get Docs Explaining Atty's Role Amid Sale Row
A Delaware vice chancellor has ruled Genworth Life Insurance Co. can access certain documents from policyholders who sued over the sale of valuable subsidiaries, including discussions involving a former law partner of one of the plaintiffs who is representing certain entities believed to be funding the litigation.
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December 19, 2024
Del. Justices Affirm Toss Of Co.'s Suit Against Gusrae Kaplan
Delaware's Supreme Court has affirmed a trial court's dismissal of an Applied Energetics Inc. suit accusing Gusrae Kaplan Nusbaum PLLC and a former partner of launching a frivolous securities fraud suit in order to hobble other litigation against the laser weapons maker's former CEO.
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December 18, 2024
Sens. Hear Split Views On Bill To Boost Patent Injunctions
A bill that would make it easier to obtain patent injunctions got a divided reaction at a Senate hearing Wednesday, with the sponsor and some speakers saying it would benefit patent owners and critics calling it an unnecessary change that only aids patent assertion entities.
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December 18, 2024
Yellow Corp. Gets Del. Court OK For Ch. 11 Asset, Lease Sales
Bankrupt trucking venture Yellow Corp. secured a Delaware judge's approval Wednesday for a $192.5 million series of deals to sell or lease a dozen properties owned or leased by Yellow in California, Miami, Ohio and other states.
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December 18, 2024
CVS Fueled Opioid Epidemic In Rush For Profits, Feds Say
The U.S. Department of Justice unveiled a suit Wednesday accusing CVS, the nation's largest pharmacy chain, of knowingly filling invalid prescriptions for powerful opioids and ignoring internal pleas from its pharmacists as it allegedly put profits over safety.
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December 18, 2024
Amgen Hit With $50M Infringement Verdict Over Leukemia Drug
Germany's Lindis Biotech has persuaded a Delaware federal jury that Amgen should pay $50.3 million in damages for encouraging healthcare providers to infringe the Munich company's immunotherapy patents through administering the leukemia drug Blincyto.
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December 18, 2024
States, Green Groups Drop Suits Over USPS Vehicle Plan
A coalition of states and cities and several environmental groups moved to dismiss their lawsuits challenging the U.S. Postal Service's multibillion-dollar plan to acquire its next-generation delivery vehicles.
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December 18, 2024
Insurance Co. Buyer Accuses Seller Of Fraud In Chancery Suit
Alleging a "textbook case of fraud in the inducement and breach of fiduciary duty," a holding company that acquired Georgia-based Southern Trust Insurance Co. has sued the seller's principals, associates and their company in Delaware's Court of Chancery.
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December 18, 2024
Toolmaker Hardinge Gets OK On Ch. 11 Liquidation Plan
A Delaware bankruptcy judge on Wednesday approved tool manufacturer Hardinge Inc.'s Chapter 11 liquidation plan after the debtor settled disputes with creditors, its investment fund backer and other parties by agreeing to drop potential claims in exchange for a cash payment.
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December 17, 2024
Corteva Rips Inari's 'Shrill' Claim Of Sham Seed Patent Suit
Corteva Agriscience LLC has fired back at Inari Agriculture Inc.'s claim that a suit alleging Inari infringes Corteva's seed patents amounts to "objectively baseless" sham litigation, saying its rival is making "shrill assertions" that "cannot be squared" with an earlier ruling in the case.
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December 17, 2024
Del. Justices Won't Revive Investors' $2.4B EV SPAC Deal Suit
The Delaware Supreme Court has declined to reinstate a proposed class action in the state's Chancery Court that accused a blank-check company of withholding key information from investors ahead of its $2.4 billion go-public deal with electric-vehicle maker Canoo Holdings Ltd.
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December 17, 2024
Distributor Seeks OK Of $131M Venezuela Award
A Hong Kong goods distributor has kicked off litigation in Delaware looking to enforce a $131 million arbitral award against a subsidiary of Venezuela's state-owned oil company, stating in its petition that it wants to target the country's interest in the oil giant Citgo.
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December 17, 2024
Franchise Group Can Keep Exclusive Control Of Its Ch. 11
A Delaware bankruptcy judge on Tuesday denied a motion to end the plan exclusivity window and other bankruptcy rights for debtors in Franchise Group Inc.'s Chapter 11, saying possible intercompany claims don't justify relief that the debtor argued would plunge the case into chaos.
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December 17, 2024
2nd Circ. Says Sears Trustee Can Keep Mall Of America Lease
The Second Circuit has upheld a district court order obliging the return of bankrupt Sears Holding Corp.'s lease in Minnesota's Mall of America to SHC's liquidating trustee, finding in part the mall's earlier lease was not a "true" contract.
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December 17, 2024
AGs Can File Opposition To Clearview AI BIPA Deal
An Illinois federal judge is allowing 22 states and the District of Columbia to challenge a deal to end multidistrict litigation over Clearview AI's practice of automatically collecting biometric facial data online, with attorneys general arguing the settlement would provide no meaningful injunctive relief and give plaintiffs an unknown financial stake in the company.
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December 17, 2024
Drug Co. Investor Sues In Del. Over $140M Insider Windfall
A pension fund investor in Cerevel Therapeutics Holdings Inc. has sued Bain Capital Investors LLC and other alleged insiders of the company in Delaware's Court of Chancery, accusing them of lining up a secondary offering in the biopharmaceutical venture before disclosure of its planned sale to AbbVie.
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December 17, 2024
Express Inc.'s Post-Sale Ch. 11 Liquidation Plan Approved
A Delaware bankruptcy judge on Tuesday confirmed the Chapter 11 liquidation plan for the estate of clothing retailer Express Inc., after the debtor sold the business this summer for $174 million.
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December 17, 2024
Justices Urged To Let Stand Ex-Wife's Tax Payment Suit
A woman who said the IRS wrongly applied her tax payment to her ex-husband's bill asked the U.S. Supreme Court to let stand a Third Circuit ruling allowing her to challenge it, saying the decision doesn't conflict with any other rulings and involves an issue that rarely occurs.
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December 17, 2024
Supercuts Owner Cuts Deal To End Ex-Worker's OT Suit
The owner of nearly 400 Supercuts and other hair salons agreed to pay $15,000 to resolve a suit from a former employee accusing it of failing to account for commissions and other nondiscretionary bonuses when calculating her overtime rates, a filing in Michigan federal court said.
Expert Analysis
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To Make Your Legal Writing Clear, Emulate A Master Chef
To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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Perspectives
Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.
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Opinion
Del. Needs To Urgently Pass Post-Moelis Corporate Law Bill
After the Delaware Chancery Court's decision in West Palm Beach Firefighters' Pension v. Moelis sparked confusion around governance rights, recently proposed amendments to the Delaware General Corporation Law would preserve the state's predictable corporate governance system, says Lawrence Hamermesh at Widener University Delaware Law School.
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Series
Playing Music Makes Me A Better Lawyer
My deep and passionate involvement in playing, writing and producing music equipped me with skills — like creativity, improvisation and problem-solving — that contribute to the success of my legal career, says attorney Kenneth Greene.
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3rd Circ.'s Geico Ruling May Encourage Healthcare Arbitration
The Third Circuit's recent decision in Geico v. Mount Prospect, finding that claims under New Jersey's Insurance Fraud Prevention Act can be arbitrated, strengthens arbitration as a viable alternative to litigation, even though it is not necessarily always a more favorable forum, say Khaled Klele and Jessica Osterlof at McCarter & English.
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How Attys Can Avoid Pitfalls When Withdrawing From A Case
The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.
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Using A Children's Book Approach In Firm Marketing Content
From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.
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The State Of Play In DEI And ESG 1 Year After Harvard Ruling
Almost a year after the U.S. Supreme Court decided Students for Fair Admissions v. Harvard, attorney general scrutiny of environmental, social and governance-related efforts indicates a potential path for corporate diversity, equity and inclusion initiatives to be targeted, say attorneys at Crowell & Moring.
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Key Lessons From Recent Insurance Policy Reform Litigation
A review of recent case law reveals the wide range of misunderstandings that may arise between insurers and policyholders in the purchase and renewal of insurance policies, as well as the utility — and the limits — of reformation and related remedies for these misunderstandings, say Jad Khazem and Seth Tucker at Covington.
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Patent Lessons From 4 Federal Circuit Reversals In April
Four Federal Circuit decisions in April that reversed or vacated underlying rulings provide a number of takeaways, including that obviousness analysis requires a flexible approach, that an invalidity issue of an expired patent can be moot, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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2nd Circ. Ruling Affirms NY Law's Creditor-Friendly Approach
The Second Circuit’s recent ruling in 245 Park Member v. HNA International provides creditors with some reason for optimism that debtors in New York may face rejection in court for aiming to keep creditors at arm’s length by transferring personal assets into an LLC, says Jeff Newton at Omni Bridgeway.
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What The FTC Report On AG Collabs Means For Cos.
The Federal Trade Commission's April report on working with state attorneys general shows collaboration can increase efficiency and consistency in how statutes are interpreted and enforced, which can minimize the likelihood of requests for inconsistent injunctive relief that can create operational problems for businesses, say attorneys at Kelley Drye.
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When Oral Settlements Reached In Mediation Are Enforceable
A recent decision by the New Jersey Appellate Division illustrates the difficulties that may arise in trying to enforce an oral settlement agreement reached in mediation, but adherence to certain practices can improve the likelihood that such an agreement will be binding, says Richard Mason at MasonADR.
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Series
Being An EMT Makes Me A Better Lawyer
While some of my experiences as an emergency medical technician have been unusually painful and searing, the skills I’ve learned — such as triage, empathy and preparedness — are just as useful in my work as a restructuring lawyer, says Marshall Huebner at Davis Polk.