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Delaware
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September 27, 2024
Claims Trimmed In Delaware Jeep Hybrid Defect Class Action
A Delaware federal judge threw out a number of claims Friday from a proposed class action against automaker FCA US LLC alleging it sold Jeep Wrangler and Grand Cherokee plug-in hybrid vehicles with a defective feature that renders electric driving unavailable, adopting the bulk of a magistrate judge's report filed in July.
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September 27, 2024
Juul Stockholder Class Sues In Del. Over Controller Windfall
Two stockholders of e-cigarette venture Juul Labs Inc. sued the company's controllers and board on Friday in a proposed class derivative action seeking damages for an alleged top stockholder scheme to avoid huge liabilities under terms said to have cost the company billions.
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September 27, 2024
Amazon Hit With $30.5M Verdict In Delaware Patent Trial
A Delaware federal jury decided Friday that Amazon Web Services infringed two computer network patents that were once owned by Boeing, and told the tech giant to pay $30.5 million in damages.
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September 27, 2024
TPG Sues In Del. For Control Of Md. Data Center Project
An affiliate of global asset manager TPG sought a fast-tracked declaratory judgment in Delaware's Court of Chancery late Thursday that Quantum Loophole Inc. was validly removed as manager of a potential multisite, $5 billion "gigawatt" data center project near Frederick, Maryland.
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September 27, 2024
MetLife's 3rd Circ. Win Won't Stop ERISA Health Fee Suits
The Third Circuit's recent decision upholding MetLife's escape from a lawsuit accusing the company of pocketing $65 million in pharmacy rebates instead of using the funds to lower employee healthcare costs hands additional authority over to employers facing a new wave of class action litigation over excessive health fees, attorneys say.
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September 26, 2024
Judge Says Avon Should Hold Off On Deal With Parent Co.
A Delaware bankruptcy judge told cosmetics giant Avon Products Inc. on Thursday that it needs to give creditors more time to investigate its dealings with its Brazilian parent company before he can approve a proposed settlement of claims against the parent.
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September 26, 2024
3rd Circ. Rules Commerce Fishery Councils Cannot Veto Regs
Government-appointed advisory councils that have the power to veto decisions of federal cabinet-level officials run afoul of the U.S. Constitution, the Third Circuit said, stripping that veto power from "regional fishery management councils" that advise the U.S. secretary of commerce.
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September 26, 2024
Chancery Tosses Carvana Suit Alleging Faulty Sales
Delaware's chancellor has dismissed a stockholder derivative case against online used-car dealer Carvana Inc. that sought damages for alleged insider trading and legal complaince monitoring failures, a case that defense attorneys had branded "repackaged" from past or pending federal securities actions.
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September 26, 2024
Del. Bankruptcy Judge Says Purdue Limits Opt-Out Releases
A Delaware bankruptcy judge says the U.S. Supreme Court's decision in Purdue Pharma LP barring nonconsensual third-party releases does not allow a kind of oft-used opt-out waiver for voters who don't return ballots.
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September 26, 2024
Smartmatic, Newsmax Settle Defamation Suit In Delaware
Voting technology company Smartmatic USA Corp. and Newsmax Media Inc. have settled a post-2020 presidential election defamation suit slated to go to trial in Delaware's Superior Court on Monday.
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September 26, 2024
FTX Strikes Deal With MDL Counsel For Ch. 11 Plan Support
FTX Trading Ltd. has asked a Delaware bankruptcy judge for permission to enact a settlement with plaintiffs and counsel it's facing in multidistrict litigation in Florida, saying the proposed deal would prevent potentially costly legal tussles and bring the plaintiffs on board to support FTX's Chapter 11 plan.
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September 25, 2024
Sullivan & Cromwell Didn't Ignore FTX 'Red Flags,' Report Says
The Chapter 11 examiner appointed in the bankruptcy case of fallen cryptocurrency exchange FTX Trading determined Wednesday that debtor law firm Sullivan & Cromwell didn't ignore any "red flags" about FTX's misconduct related to a $500 million purchase of stock in financial service and digital trading platform Robinhood Markets Inc.
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September 25, 2024
Judge Connolly Sticks By Fining Paralegal Patent Owner
Delaware's top federal judge won't budge on ordering a Texas paralegal to pony up $53,000 for refusing to appear for months to answer questions about a patent litigation outfit that was registered to her name, after he grilled her lawyer over who he was representing at a hearing she did show up to last week.
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September 25, 2024
3rd Circ. Preserves Monsanto's Win In Cancer Warning Suit
The Third Circuit refused to reconsider its ruling that federal law preempts a more stringent Pennsylvania statute that mandates cancer warnings on chemicals, preserving Monsanto's win against a man who alleged the company's Roundup herbicide caused his illness.
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September 25, 2024
Gramercy Tells Del. Court Don't Capitulate To Citgo Bidders
Hedge fund Gramercy is fighting a bid to halt litigation it filed in Texas and New York to collect on certain Venezuelan debt, telling a Delaware judge that it's just one entity in a sea of Venezuela's creditors pursuing litigation that could impact an upcoming sale of Citgo's parent company.
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September 25, 2024
3rd Circ. Backs Tossing MetLife Suit Over Drug Rebates
The Third Circuit upheld MetLife's defeat of a lawsuit alleging it kept drug rebate profits for itself instead of lowering workers' health benefit plan costs, saying Wednesday the workers leading the suit hadn't shown they were harmed by missing out on speculative savings.
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September 25, 2024
Silvergate Can't Block Activist Investor From Board In Ch. 11
The parent company of defunct cryptocurrency-friendly bank Silvergate on Wednesday lost its bid to keep activist investor Joseph Stilwell from seeking election to its board, after a Delaware bankruptcy judge rejected its request for a temporary restraining order that would have halted the company's annual shareholder meeting on Friday.
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September 25, 2024
Transco Backers Urge DC Circ. To Revisit Pipeline Ruling
Natural gas and pipeline entities are firing back at a D.C. Circuit ruling that scrapped Federal Energy Regulatory Commission approvals for a five-state pipeline expansion project being pursued by the Transcontinental Gas Pipe Line Co., with one rival company saying the court's flawed decision sent "shockwaves through the industry."
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September 25, 2024
E-Bike Maker Argues In Del. Supreme Court To Salvage Sale
An attorney for a private equity affiliate that beat a Barcelona-based electric scooter rental chain's attempt to force a closing on the scooter company's $100 million sale in Chancery Court told Delaware's Supreme Court Wednesday that the seller's current appeal ignores its own fatal contract breaches.
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September 24, 2024
Appeals Court Finds LNG Project Claims Barred By Arbitration
An arbitration between a Kinder Morgan affiliate and a U.S. energy company concerning an abandoned gas project foreclosed a later breach of contract case from the U.S. company's Italian parent, a New York appeals court ruled Tuesday.
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September 24, 2024
Chancery Told SwervePay Deserves Sanctions In Earnout Suit
A court-appointed special magistrate has recommended sanctioning e-payment venture SwervePay and related parties over up to 22 months of missing or deleted text messages sought by SPOSC Investment Holdings and others in a post-merger battle over an alleged multibillion-dollar overstatement of "monetizable" payment traffic.
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September 24, 2024
DuPont Employee Defends Mass Email In ERISA Trial
A DuPont employee was scrutinized on the witness stand Tuesday for the way a worker learned about how the chemical company's merger with Dow would impact their benefits, with a judge calling a heavily redacted trial exhibit useless and a plaintiffs' attorney quizzing her on basic email functions.
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September 24, 2024
Amazon Shareholders Try To Save Suit Over Blue Origin Deal
Stockholders who sued Amazon founder Jeff Bezos and the company's board in Delaware's Court of Chancery for "blindly" approving a multibillion-dollar, Bezos-controlled launch contract for a new satellite-based internet service struggled for enough altitude Tuesday to clear defense dismissal challenges.
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September 24, 2024
Star Witness Against Bankman-Fried Gets 2 Years In FTX Case
A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."
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September 23, 2024
3rd Circ. Probes SEC's 'Close To Vacuous' Reply To Coinbase
Members of a Third Circuit panel on Monday pressed the U.S. Securities and Exchange Commission on its brief denial of crypto exchange Coinbase's request for rulemaking around digital assets, digging into how much of an explanation the agency owes the industry about its decision to forego setting rules for now.
Expert Analysis
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Patent Damages Jury Verdicts Aren't Always End Of The Story
Recent outcomes demonstrate that patent damages jury verdicts are often challenged and are overturned approximately one-third of the time, and successful verdict challenges typically occur at the appellate level and concern patent validity and infringement, say James Donohue and Marie Sanyal at Charles River.
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Notable Q1 Updates In Insurance Class Actions
Mark Johnson and Mathew Drocton at BakerHostetler discuss notable insurance class action decisions from the first quarter of the year ranging from salvage vehicle titling to rate discrimination based on premium-setting software.
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Why High Court May Have Rejected IP Obviousness Appeal
Attorneys at Womble Bond analyze possible reasons the U.S. Supreme Court rejected Vanda Pharmaceuticals' request to review the Federal Circuit’s reasonable expectation of success standard for determining obviousness, including that the court was unpersuaded by the company's argument that Amgen v. Sanofi places a bind on drug developers.
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Opinion
Viral Deepfakes Of Taylor Swift Highlight Need For Regulation
As the nation grapples with addressing risk from artificial intelligence use, the recent circulation of AI-generated pornographic images of Taylor Swift on the social platform X highlights the need for federal legislation to protect nonconsenting subjects of deepfake pornography, say Nicole Brenner and Susie Ruiz-Lichter at Squire Patton.
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The Fed. Circ. In April: Hurdles Remain For Generics
The Federal Circuit’s recent Salix v. Norwich ruling — where Salix's brand-name drug's patents were invalidated — is a reminder to patent practitioners that invalidating a competitor's patents may not guarantee abbreviated new drug application approval, say Sean Murray and Jeremiah Helm at Knobbe Martens.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Series
Walking With My Dog Makes Me A Better Lawyer
Thanks to my dog Birdie, I've learned that carving out an activity different from the practice of law — like daily outdoor walks that allow you to interact with new people — can contribute to professional success by boosting creativity and mental acuity, as well as expanding your social network, says Sarah Petrie at the Massachusetts Attorney General’s Office.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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Court Clerk Error Is No Excuse For A Missed Deadline
Two recent Virginia Court of Appeals decisions in which clerical errors led to untimely filings illustrate that court clerks can be wrong about filing deadlines or the date an order was entered, underscoring the importance of doing one's own research on filing requirements, says Juli Porto at Blankingship & Keith.
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Circuit Split Brews Over Who's A Securities Seller Under Act
A Securities Act section that creates private liability for the sale of an unregistered security is rapidly becoming a favored statute for plaintiffs to wield against participants in both the digital asset and traditional securities markets, but the circuit courts have diverged on who may be held liable for these violations, say Jeffrey L. Steinfeld and Daniel Aronsohn at Winston & Strawn.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Chancery's Carvana Suit Toss Shows Special Committee Value
The Delaware Chancery Court’s recent dismissal of a stockholder complaint against Carvana illustrates how special litigation committees can be a powerful tool for boards to regain control after litigation alleging a breach of fiduciary duty, say attorneys at Morgan Lewis.
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Series
Being An Equestrian Makes Me A Better Lawyer
Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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What 3rd Circ. Trust Ruling Means For Securitization Market
Mercedes Tunstall and Michael Gambro at Cadwalader break down the Third Circuit's March decision in Consumer Financial Protection Bureau v. National Collegiate Master Student Loan Trust, as well as predict next steps in the litigation and the implications of the decision for servicers and the securitization industry as a whole.