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Delaware
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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.
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January 07, 2025
Carlyle Beats Chancery Challenge To $77.5M Authentix Sale
The Carlyle Group on Tuesday beat a more than four-year-old suit accusing the global investment giant and three directors of authentication provider Authentix Inc. of breaching their fiduciary duties in approving Authentix's $77.5 million sale to private equity firm Blue Water Energy LLP in 2017.
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January 07, 2025
J&J, Talc Suppliers, Insurers Spar Over $505M Sale Stay
The former talc suppliers of Johnson & Johnson said Tuesday that staying part of a settlement and a connected bankruptcy sale could bog down their efforts to secure plan confirmations and exit Chapter 11, urging a Delaware bankruptcy judge to reject a motion to set aside $50 million from the $505 million deal while it is being appealed.
Expert Analysis
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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.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Finding Coverage For Online Retail Privacy Class Actions
Following recent court rulings interpreting state invasion of privacy and electronic surveillance statutes triggering a surge in the filing of privacy class actions against online retailers, companies should examine their various insurance policies, including E&O and D&O, for defense coverage of these claims, says Alison Gaske at Gilbert LLP.
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Avoiding Corporate Political Activity Pitfalls This Election Year
As Election Day approaches, corporate counsel should be mindful of the complicated rules around companies engaging in political activities, including super PAC contributions, pay-to-play prohibitions and foreign agent restrictions, say attorneys at Covington.
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Opinion
Congress Must Do More To Bolster ERISA Protections
As the Employee Retirement Income Security Act turns 50 this month, we applaud Congress for championing a statute that protects worker and retiree rights, but further action is needed to ban arbitration clauses in plan provisions and codify regulations imperiled by the U.S. Supreme Court’s Chevron ruling, say Michelle Yau and Eleanor Frisch at Cohen Milstein.
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Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling
The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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How NJ Temp Equal Pay Survived A Constitutional Challenge
The Third Circuit recently gave the New Jersey Temporary Workers' Bill of Rights a new lease on life by systematically dismantling multiple theories of the act's unconstitutionality brought by staffing agencies hoping to delay their new equal pay and benefits obligations, say attorneys at Duane Morris.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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5 Tips To Succeed In A Master Of Laws Program And Beyond
As lawyers and recent law school graduates begin their Master of Laws coursework across the country, they should keep a few pointers in mind to get the most out of their programs and kick-start successful careers in their practice areas, says Kelley Miller at Reed Smith.
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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Election Outlook: A Precedent Primer On Content Moderation
With the 2024 election season now in full swing, online platforms will face difficult and politically sensitive decisions about content moderation, but U.S. Supreme Court decisions from last term offer much-needed certainty about their rights, say Jonathan Blavin and Helen White at Munger Tolles.