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Delaware
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February 10, 2025
Biotech Firm Omega Therapeutics Hits Ch. 11 To Restructure
Biotechnology company Omega Therapeutics hit Chapter 11 in Delaware on Monday, listing over $140 million of debt on its petition and having filed a form with the U.S. Securities and Exchange Commission saying it had entered a restructuring agreement with an affiliate of its controlling stockholder.
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February 10, 2025
W. Virginia Coal Miner Hits Ch. 11 With $79M Debt, Sale Plans
West Virginia coal miner White Forest Resources filed for Chapter 11 protection in Delaware with nearly $79 million in debt, saying after struggling with production and shipping issues it plans to sell one of its two mines before the end of April.
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February 07, 2025
Trump Isn't Obeying Order To Unfreeze Funds, States Say
The Trump administration is not complying with a temporary restraining order barring a freeze on funding for federal grant and aid programs, a coalition of states told a Rhode Island federal judge Friday, asking the court to enforce its order and to enter a stiffer injunction blocking the funding freeze.
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February 07, 2025
Chancery Tosses $3.4B Hertz Stock Warrant Redemption Suit
Delaware's Court of Chancery dismissed a suit Friday filed by two Hertz institutional investors accusing the company of relying on an impermissible reinterpretation of a warrant agreement to reject a redemption demand purportedly triggered by the company's post-Chapter 11 recapitalization, finding the plaintiffs' interpretation of the agreement leads to "absurd results."
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February 07, 2025
Del.'s Quiet Ambition To Tweak Chancery, Stem Feared DExit
Anxious over claims that stockholder-tilted decisions by Delaware's Court of Chancery will trigger more companies to follow Tesla, SpaceX, Meta and Dropbox to other states, Delaware policymakers are taking a hard look at the venerable business court's processes, hoping to slow a feared rush to DExit.
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February 07, 2025
Insurers Say Meta MDL Row Should Be In Del. State Court
Coverage litigation with Meta over underlying claims that it deliberately designed its platforms to be addictive to adolescents ought to take place in Delaware state court, units of Chubb and Hartford told a Delaware federal court, arguing the court need only examine the fact that Meta is a Delaware citizen.
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February 07, 2025
Trump Birthright Citizenship Order Faces Scrutiny In 3rd Court
A Massachusetts federal judge on Friday appeared to question the constitutionality of President Donald Trump's executive order aiming to limit birthright citizenship, considering whether to follow district courts in Washington state and Maryland in blocking the move.
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February 07, 2025
Trump Admin Freezing EV Charging Station Funds
The Federal Highway Administration told state transportation department directors it is freezing a $5 billion initiative aimed at helping states deploy electric vehicle charging stations — a move the Sierra Club called both "illegal and terrible."
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February 06, 2025
State AGs To Sue Over DOGE Access To Payment Systems
Over a dozen state attorneys general are set to file suit challenging Elon Musk and Department of Government Efficiency staffers' access to people's sensitive personal information through government payment systems, New York Attorney General Letitia James' office announced Thursday.
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February 06, 2025
JPMorgan's State Trade Secret Data Row Claim Axed, For Now
A federal judge in Delaware has ruled that JPMorgan Chase & Co. sufficiently alleged Argus Information & Advisory Services violated a federal trade secrets law by allegedly misusing anonymized credit card data collected from banks, but said JPMorgan's contention Argus violated a Delaware trade secret law could not stand.
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February 06, 2025
Northern Trust Corp. Sued In Del. For Alleged Fund Breaches
The son of a now-deceased California businessman and philanthropist has sued in Delaware's Court of Chancery for the removal of an affiliate of Chicago-based Northern Trust Corp. as trustee for his father's family trust, alleging multiple breaches of fiduciary duty.
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February 06, 2025
Yellow Corp. Scores Partial Win In $540M Pension Plan Row
Bankrupt trucking firm Yellow Corp. has secured a partial victory on summary judgment in a $540 million fight with several union pension funds, with a Delaware bankruptcy judge saying the funds set the company's withdrawal liability too high.
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February 06, 2025
Harvard Biotech Patent Case Ends With Mid-Trial Deal
Harvard University and biotech developer 10x Genomics Inc. on Thursday reached a settlement agreement with rival developer Vizgen Inc. after three days of trial, ending a case over alleged infringement of tissue sample analyzation patents.
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February 06, 2025
Meta Eyes Texas Skies, Another Crypto IPO, And More Rumors
Facebook owner Meta Platforms Inc. is considering relocating its legal residence to Texas, while cryptocurrency exchange Bullish is moving forward on an initial public offering, and Unilever PLC is eyeing New York as a listing destination for its ice cream business.
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February 05, 2025
Paramount-Skydance Merger Block Sought Pending Del. Suit
Five Paramount Global pension fund stockholders sought a preliminary injunction in Delaware late Wednesday seeking to block closing on the estimated $8 billion Paramount-Skydance Media merger pending a decision on a still-sealed Court of Chancery breach of fiduciary duty suit filed Tueday night.
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February 05, 2025
'Dog Eat Dog' Contract Raises Connecticut Justice's Hackles
A Connecticut Supreme Court justice on Wednesday challenged private equity firm members fighting a former member's trial court victory in a breach suit over the partnership, suggesting that the winner may have had a viable fiduciary duty claim over the "dog eat dog" operating agreement that apparently allows members to "screw" a minority shareholder.
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February 05, 2025
US Trustee Objects To Releases In True Value Ch. 11 Plan
The U.S. Trustee's Office Tuesday asked a Delaware bankruptcy judge to reject the opt-out third-party releases in True Value Co.'s proposed Chapter 11 plan.
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February 05, 2025
NJ Seeks Jury Trial In PFAS Cleanup Case Against 3M, DuPont
New Jersey officials are fighting back against 3M and DuPont's requests to have a federal bench trial on their environmental claims seeking remediation and restoration cost reimbursement over purported PFAS contamination, arguing that its legal claims are tied to legal remedies that a jury, not a judge, must decide.
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February 05, 2025
Del. Justices Undo Insurance Cap Ruling In Alexion Suit
Delaware's top court has reversed a Superior Court ruling that upheld Alexion Pharmaceuticals' claim to coverage under a $105 million "tower" of insurance for potential stockholder claims in a suit accusing the company of propping up share prices with misleading information.
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February 05, 2025
Chancery Tosses Challenge To $1.1B Smart & Final Sale
Writing that nothing in a "grab bag" of stockholder claims amounted to disclosure failures, Delaware's chancellor dismissed a suit challenging the $1.1 billion April 2019 sale of Smart & Final Stores Inc. — formerly controlled by funds of Ares Management Corp. — to interests of Apollo Global Management.
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February 04, 2025
Del. Judge Tells Fuel Cell Co. Investors To Filter Imprecise Suit
A Delaware federal judge on Tuesday ruled that investors of hydrogen fuel cell company Plug Power Inc. must submit more particular details to support their allegation that shareholders were damaged by the company's failure to disclose production challenges, saying it is not the court's responsibility to filter out evidence.
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February 04, 2025
Del. Justices Nix Fairness Ruling In TripAdvisor Nevada Move
Citing in part aversion to "speculative litigation," Delaware's Supreme Court on Tuesday reversed a ruling that kept in play potential stockholder damage claims in connection with the proposed reincorporation in Nevada of TripAdvisor and its parent, finding that business judgment deference should govern the court challenge.
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February 04, 2025
Liberated Brands Gets OK To Tap $25M In Ch. 11 Financing
A Delaware bankruptcy judge on Tuesday agreed to give interim approval for outdoors and athletic clothing retailer Liberated Brands LLC to access $25 million of its $35 million debtor-in-possession financing.
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February 04, 2025
AI Clean Energy Co. SPAC Suit Should Be Zapped, Judge Says
A federal magistrate judge has recommended dismissing, without prejudice, a derivative shareholder suit accusing the top brass of Stem Inc., an artificial intelligence-driven clean energy company, of making misleading statements leading up to a conflicted merger with a special purpose acquisition company, saying no one should have to "connect the dots" to figure out what is specifically being alleged against them.
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February 04, 2025
Fidelity National Urges Del. Toss Of Weak F&G Deal 'Gripe'
An attorney for Fidelity National Financial Inc. told a Delaware vice chancellor Tuesday that stockholders failed to do more than "fundamentally gripe" about terms of a $250 million investment in spun-off F&G Annuities & Life Inc. when the shareholders sued for breaches of fiduciary duty last year.
Expert Analysis
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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2nd Circ. Case Reinforces Need For Advance Notice Bylaws
The Second Circuit's recent decision in Nano Dimension v. Murchinson illustrates that Section 13(d) of the Exchange Act is a square peg for a round hole, and that advance notice bylaws are far better at protecting against undisclosed coordination among activist shareholders, say attorneys at Morgan Lewis.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.
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How 3rd Circ. Raised Bar For Constitutional Case Injunctions
The Third Circuit's decision in Delaware State Sportsmen's Association v. Delaware Department of Safety & Homeland Security, rejecting the relaxed preliminary injunction standards many courts have used when plaintiffs allege constitutional harms, could portend a shift in such cases in at least four ways, say attorneys at Gibson Dunn.
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The Fed. Circ. In June: More Liability For Generic-Drug Makers
The Federal Circuit’s June ruling in Amarin v. Hikma will likely result in more allegations of induced infringement by generic drugs postapproval, with more of those cases proceeding to at least the summary judgment stage instead of being cut off at the outset, say Jeremiah Helm and Sean Murray at Knobbe Martens.
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Opinion
Congress Must Increase Small Biz Ch. 11 Debt Cap
Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.
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Opinion
Expert Witness Standards Must Consider Peer Review Crisis
For nearly two decades, the so-called replication crisis has upended how the scientific community views the reliability of peer-reviewed studies, and it’s time for courts to reevaluate whether peer review is a trustworthy proxy for expert witness reliability, say Jeffrey Gross and Robert LaCroix at Reid Collins.
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Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days
In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Patent Lessons From 5 Federal Circuit Reversals In June
A look at June cases where the Federal Circuit reversed or vacated decisions by the Patent Trial and Appeal Board or a federal district court highlights a potential path for branded drugmakers to sue generic-drug makers for off-label uses, potential downsides of violating a pretrial order offering testimony, and more, say Denise De Mory and Li Guo at Bunsow De Mory.
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.