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Delaware
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November 21, 2024
Yellow Corp. Approved For Ch. 11 Plan Disclosures
Bankrupt trucking firm Yellow Corp. said it had resolved all objections to its Chapter 11 plan disclosure statement Thursday, and a Delaware judge agreed to approve the document once it was updated to reflect the changes.
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November 21, 2024
Chewy Investors Sue BC Partners In Del. Over PetSmart Deal
British international investment giant BC Partners exploited its control of online pet product retailer Chewy Inc. when a BCP affiliate merged into Chewy after divesting its interest in PetSmart Inc., saddling Chewy with a potential $1.9 billion post-deal tax liability, according to a new Delaware Court of Chancery complaint.
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November 20, 2024
Ex-Pharma CEO Demands Legal Fees For SEC Probe
Cancer treatment development company Eagle Pharmaceuticals Inc.'s founder and ex-CEO told Delaware's Chancery Court Wednesday that he is entitled to legal fees he says the company owes him in connection with a U.S. Securities and Exchange Commission probe into the company's accounting practices, saying he continues to incur fees in addition to the $875,000 he has already requested.
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November 20, 2024
Advance Notice Bylaw Measures Fuel Chancery Battle
Arguing that recent corporate advance notice bylaws have resulted in "real, actual harm" to stockholders of Owings Corning and The AES Corp., attorneys for shareholders of both urged a Delaware vice chancellor on Wednesday to reject calls to dismiss challenges to the measures.
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November 20, 2024
$2.6M Deal Proposed To End Chancery Lottery.com Suit
Five executives of the special purpose acquisition company that took Lottery.com public have reached a $2.6 million settlement with company shareholders to resolve claims that the 2021 take-public deal misled investors about the potential value of the business.
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November 20, 2024
3rd Circ. Reins In Novel Use Of Atty-Client Privilege Exception
While attorney-client privilege typically falls away for communications about a client's intentions in making their will after they have died, the Third Circuit on Wednesday declined to expand that exception to include communications from third parties about the deceased.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
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November 19, 2024
32 State AGs Urge Congress To Back Kids' Online Safety Bill
More than 30 state attorneys general urged federal lawmakers to back bipartisan legislation aimed at bolstering youth safety online, writing a letter Monday encouraging Congress to "act to aid our state-level efforts" which included opening investigations and commencing with litigation against social media companies like TikTok and Meta.
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November 19, 2024
Legal Tech Co. Sues For AI Company's IP Release In Del.
A U.S. company formed to use proprietary artificial intelligence and other tech and metrics to analyze witness credibility and emotions in legal proceedings has sued an Italian firm alleging breach of a contract duty to hand over essential, licensed intellectual property.
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November 19, 2024
Litigation Funder Can't Arbitrate German Biz's Discovery Bid
A Delaware federal judge has denied litigation funder Burford Capital's request to force arbitration of a discovery bid associated with foreign litigation accusing the German arm of law firm Hausfeld LLP of trying to circumvent a German ban on contingency fees in certain antitrust litigation.
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November 19, 2024
Unjust PJM Power Auction Rules Must Be Redone, FERC Told
State consumer advocates want the Federal Energy Regulatory Commission to rewrite the electricity capacity auction rules for the nation's largest regional grid operator, saying PJM Interconnection's existing rules unjustly saddle consumers with billions of dollars of extra costs.
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November 19, 2024
IRS Can Extend Deadline Over Preparer's Fraud, 3rd Circ. Told
The Third Circuit should affirm a U.S. Tax Court ruling allowing the Internal Revenue Service to skirt the normal deadlines and assess taxes going back to 1993 against a couple who were unaware that their tax preparer had falsified their returns to lower their liabilities, the government said.
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November 19, 2024
College Decor Co. Dormify Hits Ch. 11 With Up To $50M Debt
Dormify Inc., a retailer that sells college gear and decor for dorms, filed for bankruptcy in Delaware, estimating between $10 million and $50 million in debt less than a week after a Pennsylvania federal court entered a default judgment against it in a lawsuit from an affiliate marketing firm.
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November 18, 2024
Justices Urged To Pass On 3rd Circ. CFPB Loan Trust Case
The Consumer Financial Protection Bureau has asked the U.S. Supreme Court to deny an appeal by a group of student loan trusts fighting an enforcement action by the agency, arguing that industry concerns about the Third Circuit case are overblown and unavailing.
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November 18, 2024
J&J Posts $1.17B Bond For Del. Merger Milestone Appeal
Johnson & Johnson Inc. has posted a $1.167 billion surety-backed bond ahead of its planned appeal challenging a Delaware Chancery Court's finding that it owes more than $1 billion to a medical robotics developer's former shareholders caught up in a post-acquisition dispute.
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November 18, 2024
Meta Can Ditch Mike Huckabee's CBD Fake Ad Suit
Former Arkansas governor and conservative pundit Mike Huckabee can't sue Facebook after an unidentified company posted advertisements implying he endorsed a brand of CBD gummies, a Delaware federal judge ruled Monday, saying he can't prove the social media giant was actually aware the ads were bogus.
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November 18, 2024
Chancery Consolidates 2 Musk, Derivative Damage Suits
Delaware's chancellor on Monday combined two class suits that separately targeted Elon Musk's massive sales of Tesla Inc. stock and alleged diversions of Tesla talent to Musk's spun-off artificial intelligence venture, while ordering coordination with a suit seeking damages arising from alleged insider trading in late 2022.
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November 18, 2024
Venezuela Slams Withholding Of Stock Docs In Citgo Sale
Venezuela has urged a Delaware federal judge to order a special master overseeing the auction of oil giant Citgo's parent company to give the country a copy of the now-executed and unredacted stock purchase agreement he made with another party.
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November 18, 2024
Chancery Orders Paybacks In Decade-Old Lease Co. Suit
Former directors of a global temporary housing business that served corporations worldwide must repay indemnification payouts under a multipart Court of Chancery ruling on a suit originally brought in 2014 alleging breaches of a shareholder agreement and fiduciary duty.
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November 18, 2024
3rd Circ. Shuts Down Healthcare Workers' Vax Bias Suit
A split Third Circuit panel said a group of Christian workers can't revive suits claiming a healthcare provider illegally fired them for refusing the COVID-19 vaccine on religious grounds, finding they failed to show how their beliefs prevented them from getting immunized.
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November 15, 2024
3rd Circ. Won't Rehear Moroccan Hotel Fight Over $60M Award
The Third Circuit has declined to rethink its decision reviving a dispute over the enforcement of a $60 million arbitral award favoring the current owner of a luxury hotel in Casablanca, despite an investment group's claims that the ruling is unprecedented and disregards well-established Delaware law.
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November 15, 2024
PetroQuest Gets Interim OK To Tap $847K In Del. Ch. 11
A Delaware bankruptcy judge Friday granted interim permission for oil and gas company PetroQuest Energy Inc. to access $847,500 of new money financing from its lenders as it plans to sell its assets in East Texas.
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November 15, 2024
Colo. Judge Nixes Debtor's Transfer Try For Not Conferring
A Colorado federal judge on Friday struck a motion to transfer a putative class action suit against a bankrupt truck rental company to the Delaware court handling the business's Chapter 11 case, saying the company had failed to consult with the plaintiffs before filing the motion.
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November 15, 2024
EV Carmaker Lucid Sued In Del. For Inflated Biz Claims
A stockholder who bought electric-car maker Lucid Group shares sued in Delaware's Chancery Court on Friday to recover derivative damages for the company tied to claims that the business raised billions on knowingly inflated production outlooks only to later drastically downsize its forecast.
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November 15, 2024
Secure Software Co. Investor Sues In Del. For Deal Docs
An investor in a "public benefit" company that provides sensitive software to government agencies and allies sued the business Friday in Delaware Chancery Court, seeking documents on a stock purchase agreement and other moves purportedly made without required consents.
Expert Analysis
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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Where Can Privacy Plaintiffs Sue When Injury Is Online?
Website owners need to understand wiretapping laws to understand whether they may be sued for activity tracking in California or Pennsylvania courts, where the statutory damages for violations of half-century-old laws can be substantial — and a recent Third Circuit decision suggests establishing specific jurisdiction is not as easy as 1-2-3, say attorneys at Crowell & Moring.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Opinion
Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Don't Phone A Friend: Disclosing Friendships With Executives
The U.S. Securities and Exchange Commission's recent settlement against a former Church & Dwight chairman for violating proxy disclosure rules by neglecting to disclose his friendship with an executive officer amid a CEO search illustrates the perils of relying solely on responses to questionnaires circulated to boards, say attorneys at BCLP.
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Webuild Ruling Complicates Arb. Award Enforcement In US
A Delaware federal court's recent decision in Sociedad Concesionaria Metropolitana de Salud v. Webuild, if read literally, could undercut the United States' image as a proarbitration jurisdiction by complicating creditors' efforts to enforce awards against property in this country, says Jeff Newton at Omni Bridgeway.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Budding Lessons From Landmark Plant Seed Patent Battle
The Corteva v. Inari case involving intellectual property rights in genetically modified plants is now proceeding through discovery and potentially to trial, and will raise critical questions that could have a major impact on the agriculture technology industry, say Tate Tischner and Andrew Zappia at Troutman Pepper.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Avoiding Merger Disputes Via Careful LLC Agreement Drafting
The Delaware Court of Chancery recently upheld a merger in a dispute over the process of amending the target's limited liability company agreement, underscoring the importance of understanding the Delaware LLC Act default rules and careful drafting to allow for contractual modifications, says Jane Trueper at Lathrop.
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An Update On Legal Issues In The Drone Market
Marialuisa Gallozzi and Alex Slawson at Covington examine recent developments in the legal issues surrounding the growing drone market, including possible First Amendment protections, Fourth Amendment surveillance, and litigation involving criminal and civil penalties, evidentiary pursuits, and insurance.
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5 Considerations For Obviousness-Type Double Patenting
The U.S. Supreme Court’s recent denial of certiorari for In re: Cellect highlights the current state of obviousness-type double patenting based on that case and another recent Federal Circuit decision, including that ODP is not fatal, that divisional applications are protected from ODP and more, says Fabian Koenigbauer at Ice Miller.