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Delaware
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October 17, 2025
Settlement Balk Jeopardizes $32M Class Deal In Chancery
An attorney for a large Emisphere Technologies stockholder told a Delaware vice chancellor on Friday that Court of Chancery refusal to allow an opt-out from a $32 million class settlement in a suit challenging the biotech company's $1.8 billion sale price "would have to be addressed by the U.S. Supreme Court."
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October 17, 2025
Insys Ex-CEO Babich Agrees To $30M Trustee Deal In Del.
Former Insys Therapeutics CEO Michael Babich has consented to a $30 million settlement amid a bankruptcy trustee's efforts to recover tens of millions in damages from company officials tied to Insys' aggressive marketing of the opioid painkiller Subsys, according to a Delaware Court of Chancery settlement filed early on Friday.
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October 17, 2025
Kabbage Targets Ex-Execs, AmEx In $746M Ch. 11 Clawback
The bankruptcy estate handling the wind-down of former financial services provider Kabbage Inc. sued American Express and Kabbage's former directors and shareholders in an attempt to claw back $746 million that was transferred to American Express as part of a 2020 merger between the two companies.
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October 17, 2025
3rd Circ. Says No Duty To Inform Criminal Clients Of Liability
The Third Circuit in a precedential ruling Friday declined to apply immigration precedent concerning counsel's obligation to advise their criminal defendant clients about deportation risks associated with prosecutions to the civil setting, holding that the standard applies only in highly specific circumstances.
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October 17, 2025
Phoenix Suns Minority Owners End Suit, Shift To Countersuit
Minority owners of the NBA's Phoenix Suns on Friday dropped their Delaware Court of Chancery lawsuit seeking to obtain certain company documents, but said they are now focused on asserting counterclaims of mismanagement and misconduct in a suit filed earlier this week by majority owner Mat Ishbia.
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October 17, 2025
3rd Circ. Won't Rethink IRS Collections For Preparer Fraud
The Third Circuit declined Friday to reconsider a panel decision allowing the IRS to pursue a woman's unpaid taxes more than 20 years later — well after the normal three-year deadline — because her return preparer committed fraud on her filings without her knowledge.
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October 17, 2025
B. Riley Wants Out Of Lottery.com Chancery Case
A California-based banking firm asked the Delaware Chancery Court in a brief unsealed Friday to drop it from the stockholder class action over Lottery.com's 2021 special purpose acquisition company merger, claiming it was late to the party.
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October 17, 2025
Federal Courts To Scale Back Operations Amid Shutdown
The federal court system has run out of money and will scale back operations beginning Monday as a result of the ongoing government shutdown, possibly leading to case delays.
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October 16, 2025
USDA Can't Curb SNAP Benefits As States Fight Data Demand
A California federal judge on Wednesday preliminarily blocked the U.S. Department of Agriculture from withholding potentially billions of dollars in Supplemental Nutrition Assistance Program benefit funds from states that refuse to turn over highly sensitive personal information on millions of SNAP food assistance benefit recipients.
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October 16, 2025
Jazz Denied Preferred Drug Royalty Rate, But Still Gets Boost
A Delaware federal judge has agreed to increase the royalty rate a specialty drugmaker has to pay drug manufacturer Jazz Pharmaceuticals Inc. for using a patented process behind a newer narcolepsy drug, but by less than what Jazz asked for.
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October 16, 2025
Gabelli, Entwistle Make Lone Paramount Suit Pitch In Del.
A fund of Paramount Global Inc. investor Mario Gabelli notified Delaware's Court of Chancery on Thursday that no other stockholders have sought to lead a suit challenging Paramount Global's $8.4 billion acquisition by David Ellison's Skydance Media, with the fund seeking lead plaintiff status and Entwistle & Cappucci and Farnan LLP to be lead counsel.
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October 16, 2025
Bankrupt Rite Aid Trust Sues Walgreens Over Opioid Costs
A trustee for Rite Aid Corp.'s bankruptcy estate has sued Walgreens Boots Alliance Inc. and a subsidiary, Walgreen Co., in Delaware Chancery Court, accusing the pharmacy giant of failing to cover tens of millions of dollars in opioid epidemic-related litigation costs that it had agreed to cover.
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October 16, 2025
Justices Asked To Rethink Gellert Seitz Malpractice Ruling
Lawyers for a homebuilder are asking Delaware's Supreme Court to reconsider its decision affirming the dismissal of a legal malpractice suit against Gellert Seitz Busenkell & Brown LLC over damages the builder said it suffered due to the firm's negligence handling loan-restructuring disputes, arguing that key issues have been left unresolved.
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October 16, 2025
Nexus Wants New Trial After Exela Cleared In $89M IP Case
Nexus Pharmaceuticals has asked a Delaware federal judge to order a new trial on its patent infringement claims against rival Exela Pharma Sciences, saying a jury that cleared Exela of those claims in September did so "against the great weight of evidence."
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October 16, 2025
3rd Circ. Says FLSA Doesn't Limit Class Member Settlements
The Fair Labor Standards Act tackles only who can litigate claims and is silent on whether settlement class members who have not opted into a collective can release their claims under the federal law, the Third Circuit found Thursday.
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October 16, 2025
3rd Circ. Denies DOL's Bid For 2nd Look At H-2A Fine Powers
The full Third Circuit won't weigh whether the U.S. Department of Labor had the authority to use in-house administrative proceedings to impose more than $580,000 in fines on a New Jersey farm for what the department said were violations of the H-2A visa program.
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October 15, 2025
Top Del. Judge Details Views On Willful Infringement Issues
A lawsuit cannot provide an accused infringer with the notice needed for a patent owner to allege indirect and willful infringement, and enhanced infringement demands aren't subject to dismissal motions, Delaware's top judge has ruled.
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October 15, 2025
3rd Circ. Clears Cannabis REIT In Investor Fraud Suit
The Third Circuit on Wednesday affirmed the dismissal of a securities fraud class action against a cannabis-focused real estate investment trust that alleged the trust violated securities laws by ignoring red flags about a tenant, with the panel finding that investors failed to show they were intentionally misled.
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October 15, 2025
Boy Scouts Claimants Look To Remove Slater, Citing Probe
Alleging trial lawyer case aggregators at Slater Slater Schulman have "run amok" in the Boy Scouts sexual abuse case, a claimants group has moved for a bankruptcy court order terminating contingency fee legal service agreements with victims and a reduction in fees paid to the firm.
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October 15, 2025
Chancery 'Rewrote' $3.4B Merger Deal, J&J Tells Del. Justices
Johnson & Johnson told the Delaware Supreme Court on Wednesday that the Chancery Court "rewrote" its $3.4 billion agreement for the acquisition of surgical robotics firm Auris Health, wrongly using the implied covenant of good faith and fair dealing to impose obligations the company never accepted.
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October 15, 2025
3rd Circ. Weighs If AR-15s Are 'Dangerous,' 'Unusual' Arms
The full Third Circuit on Wednesday quizzed counsel in a gun rights case about whether AR-15s, other widely owned semi-automatic firearms, and high-capacity magazines should be considered so "dangerous" or "unusual" as to not be protected by the Second Amendment, with the panel giving no clear leanings as to how it might rule.
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October 15, 2025
Patent Decisions Clearing Ford, BMW Upheld By Fed. Circ.
The Federal Circuit on Wednesday refused to revive cases accusing Ford and BMW of infringing a pair of cruise control system patents, affirming how a lower court construed key claim terms when it cleared the automotive giants in the litigation.
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October 15, 2025
States Seek To Revive FEMA's Disaster-Mitigation Funding
A group of 22 states and the District of Columbia urged a Massachusetts federal court Wednesday to block the Trump administration's termination of a disaster mitigation program under the Federal Emergency Management Agency, arguing such authority lies with Congress.
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October 15, 2025
Del. Justices Ask How Court Can Uphold Musk Pay Unwinding
A Delaware Supreme Court justice on Wednesday pressed a Tesla Inc. stockholder class attorney on how founder Elon Musk — facing a Court of Chancery strike-down of his $56 billion, multiyear compensation plan — can be "put back to the status quo ante after six years of achieving what he was asked to achieve."
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October 15, 2025
3rd Circ. Preview: US Atty, Columbia Activist, Ex-Union Prez
The Third Circuit's late October arguments will include two nationally watched cases scrutinizing President Donald Trump's power to name "interim" government officials and his promise to deport foreign nationals who allegedly supported Hamas or took part in protests against Israel's war in Gaza.
Editor's Picks
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DocuSign's Bad Conduct Warrants Fee Shift, Ex-CEO Says
DocuSign's ex-CEO wants the Delaware Chancery Court to order the e-signature company to pay at least $709,000 for legal fees he has incurred in litigation alleging the company tried to "bully" him into resigning from its board and made false filings saying he resigned as a director.
Expert Analysis
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3rd Circ. Ruling Forces A Shift In Employer CFAA Probes
The Third Circuit's recent ruling in NRA Group v. Durenleau, finding that "unauthorized access" requires bypassing technical barriers rather than simply violating company policies, is forcing employers to recalibrate insider misconduct investigations and turn to contractual, trade secret and state-level claims, say attorneys at Sidley.
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Opinion
High Court, Not A Single Justice, Should Decide On Recusal
As public trust in the U.S. Supreme Court continues to decline, the court should adopt a collegial framework in which all justices decide questions of recusal together — a reform that respects both judicial independence and due process for litigants, say Michael Broyde at Emory University and Hayden Hall at the U.S. Bankruptcy Court for the District of Delaware.
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Series
Traveling Solo Makes Me A Better Lawyer
Traveling by myself has taught me to assess risk, understand tone and stay calm in high-pressure situations, which are not only useful life skills, but the foundation of how I support my clients, says Lacey Gutierrez at Group Five Legal.
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Del. Ruling Reaffirms High Bar To Plead Minority Control
The Delaware Court of Chancery's recent decision in Witmer v. Armistice maintains Delaware's strict approach to control and provides increased predictability for minority investors in their investment and corporate governance decisions, says Elena Davis at Ropes & Gray.
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Series
Law School's Missed Lessons: Client Service
Law school teaches you how to interpret the law, but it doesn't teach you some of the key ways to keeping clients satisfied, lessons that I've learned in the most unexpected of places: a book on how to be a butler, says Gregory Ramos at Armstrong Teasdale.
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Loper Bright's Evolving Application In Labor Case Appeals
Following the U.S. Supreme Court's decision in Loper Bright v. Raimondo, which upended decades of precedent requiring courts to defer to agency interpretations of federal regulations, the Third and Sixth Circuits' differing approaches leave little certainty as to which employment regulations remain in play, say attorneys at Foley & Lardner.
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Why Justices Seem Inclined To Curtail Del. Affidavit Statute
After recent oral argument before the U.S. Supreme Court in Berk v. Choy — asking whether Delaware's affidavit-of-merit statute applies in federal diversity actions, or whether the Federal Rules of Civil Procedure displace the state requirement — it appears the court is poised to simplify the standard approach, says Eric Weitz of The Weitz Law Firm.
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Series
Adapting To Private Practice: 3 Tips On Finding The Right Job
After 23 years as a state and federal prosecutor, when I contemplated moving to a law firm, practicing solo or going in-house, I found there's a critical first step — deep self-reflection on what you truly want to do and where your strengths lie, says Rachael Jones at McKool Smith.
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Series
Painting Makes Me A Better Lawyer
Painting trains me to see both the fine detail and the whole composition at once, enabling me to identify friction points while keeping sight of a client's bigger vision, but the most significant lesson I've brought to my legal work has been the value of originality, says Jana Gouchev at Gouchev Law.
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Protecting Sensitive Court Filings After Recent Cyber Breach
In the wake of a recent cyberattack on federal courts' Case Management/Electronic Case Files system, civil litigants should consider seeking enhanced protections for sensitive materials filed under seal to mitigate the risk of unauthorized exposure, say attorneys at Redgrave.
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Series
Judging Figure Skating Makes Me A Better Lawyer
Judging figure skating competitions helps me hone the focus, decisiveness and ability to process complex real-time information I need in court, but more importantly, it makes me reengage with a community and my identity outside of law, which, paradoxically, always brings me back to work feeling restored, says Megan Raymond at Groombridge Wu.
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$100K H-1B Fee May Disrupt Rural Healthcare Needs
The Trump administration's newly imposed $100,000 supplemental fee on new H-1B petitions may disproportionately affect healthcare employers' ability to recruit international medical graduates, and the fee's national interest exceptions will not adequately solve ensuing problems for healthcare employers or medically underserved areas, say attorneys at Holland & Knight.
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What Ethics Rules Say On Atty Discipline For Online Speech
Though law firms are free to discipline employees for their online commentary about Charlie Kirk or other social media activity, saying crude or insensitive things on the internet generally doesn’t subject attorneys to professional discipline under the Model Rules of Professional Conduct, says Stacie H. Rosenzweig at Halling & Cayo.
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Junior Attys Must Beware Of 5 Common Legal Brief Mistakes
Excerpt from Practical Guidance
Junior law firm associates must be careful to avoid five common pitfalls when drafting legal briefs — from including every possible argument to not developing a theme — to build the reputation of a sought-after litigator, says James Argionis at Cozen O'Connor.
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3rd Circ. Clarifies Ch. 11 3rd-Party Liability Scope Post-Purdue
A recent Third Circuit decision that tort claims against the purchaser of a debtor's business belong to the debtor's bankruptcy estate reinvigorates the use of Chapter 11 for the resolution of nondebtor liability in mass tort bankruptcies following last year's U.S. Supreme Court ruling in Purdue Pharma, say attorneys at Sullivan & Cromwell.