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November 13, 2024
FTX Prosecutors Tout Tech Chief's 'Outstanding Cooperation'
Manhattan federal prosecutors urged a lenient sentence for former FTX technology chief Zixiao "Gary" Wang, telling the court on Wednesday that his "outstanding cooperation" was instrumental in securing the lightning-fast indictment and ultimate conviction of founder Sam Bankman-Fried for an $11 billion fraud that sank the crypto exchange.
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November 13, 2024
Gaming Co. Sued In Chancery To Block Controller Moves
A large stockholder in Allied Gaming & Entertainment Inc. sued the company's board, controlling stockholder and others in Delaware's Court of Chancery on Tuesday, alleging moves by the controller to dilute the shares of outside stockholders ahead of a proxy contest.
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November 13, 2024
PrivatBank Says Ukraine Ruling Doesn't Bar Looting Suit
An attorney for Ukraine's PrivatBank urged a Delaware vice chancellor Wednesday to reject arguments that the bank's multibillion-dollar fraud and unjust enrichment loan claims against two oligarchs and others were undone by an allegedly narrow Ukrainian high court ruling in favor of the borrowers.
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November 13, 2024
Judge To Confirm Ambri Ch. 11 Wind-Down Plan
A Delaware bankruptcy judge Wednesday agreed to approve the Chapter 11 plan of battery company Ambri Inc., which will sell its assets to its lenders and wind down.
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November 13, 2024
3rd Circ. Wary Of Easing Cheesesteak Shop Owner's Sentence
Third Circuit judges seemed mostly skeptical of overturning an extension to the prison sentence of a Philadelphia cheesesteak shop owner who admitted to paying employees off the books, saying during oral arguments it was unclear whether the employees should be considered co-conspirators in the tax fraud.
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November 12, 2024
FTX Targets Scaramucci, PACs, Law Firm In Wave Of Suits
Bankrupt cryptocurrency exchange FTX filed roughly 30 suits in a bid to recoup millions of dollars donated to political and charitable causes, losses caused by alleged market manipulation, and funds spent on business partnerships, including with Skybridge Capital's Anthony Scaramucci and a boutique Florida law firm.
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November 12, 2024
Justices Told Fed. Circ. Overstep Claims Are 'Simply Incorrect'
A unit of pharmaceutical company Alvogen on Tuesday urged the U.S. Supreme Court to reject a petition from the company whose blockbuster IBS drug it's hoping to copy, saying the "petition's fundamental premise" that the Federal Circuit went beyond its legal boundaries "is simply incorrect."
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November 12, 2024
Hertz Investors Urge Chancery Not To Toss Stock Warrant Suit
An attorney for two Hertz Inc. institutional investors told a Delaware judge Monday that the vehicle rental giant relied on an impermissible reinterpretation of a warrant agreement to reject a redemption demand purportedly triggered by the company's post-Chapter 11 recapitalization.
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November 12, 2024
3rd Circ. Won't Revive Port Authority Worker's Race Bias Suit
The Third Circuit won't revive a Black woman's suit claiming the Port Authority of New York and New Jersey didn't promote her because of her race and her complaints about discrimination, ruling that the bistate agency had legitimate, nondiscriminatory reasons for not promoting her.
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November 12, 2024
Truth Social Sponsor's Shares Mostly Gone, Del. Court Told
An attorney for the former CEO of a company central to the public stock listing of Donald Trump's social media platform told a Delaware vice chancellor Monday only 45,000 shares remain available from an 8.1 million share founders' stake now at the center of multiple suits in multiple courts.
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November 12, 2024
3rd Circ. Says County Not Liable For Accused Harassers' Acts
The Third Circuit refused to give a Delaware county worker a second shot at his suit claiming one male colleague targeted him with homophobic and racist harassment and another sexually assaulted him, saying the worker didn't do enough to put the company on notice that it needed to intervene.
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November 12, 2024
FTX Sues Binance, Former CEO Zhao Seeking $1.8B Clawback
The estate of fallen cryptocurrency exchange FTX has sued Binance and its former CEO Changpeng Zhao to recover $1.76 billion it says the defunct company illegally transferred prior to its collapse two years ago, alleging FTX used customer money to complete a share repurchase that it couldn't otherwise afford.
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November 08, 2024
Fla. Apparel Distributor Sues Gap Over $378M Bait-And-Switch
A South Florida-based apparel distribution company has brought a $378 million counter-complaint against Gap Inc. in California state court, alleging the clothing retailer threatened to sabotage an initial public offering after pulling a bait-and-switch by sending millions of dollars of oversized, unsellable garments and ruin relationships with existing customers.
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November 08, 2024
Fed. Circ. Backs Invalidation Of Geolocation IP Under Alice
The Federal Circuit won't breathe new life into GeoComply's infringement suit against its geolocation competitor XPoint over an anti-location-spoofing patent, affirming a lower court's dismissal.
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November 08, 2024
Chancery Tosses Microchip Co.'s Tech Licensor Challenge
A Delaware vice chancellor on Friday dismissed a lawsuit filed by Swiss microchip maker u-blox AG against tech licensor InterDigital Inc., finding among other points that u-blox was barred from moving forward with potentially unsettled claims arising from the same issues in a California federal court case.
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November 08, 2024
Chancery Rejects $2.4M Fee Request In 'Poison Pill' Case
Cautioning that class attorneys in virtual lookalike settlements shouldn't expect to match big, early fee awards, a Delaware vice chancellor on Friday approved a $300,000 attorney fee — downsized from a $2.4 million request — for those who secured a company agreement to scuttle an overreaching shareholder rights "poison pill."
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November 08, 2024
3rd Circ. Unsure Progressive Can Undo Car Value Suit Cert.
A Third Circuit panel on Friday grappled with whether an adjustment that Progressive Specialty Insurance Co. did every time it calculated the value of a totaled vehicle was enough to warrant class certification for a lawsuit claiming the adjustment was unfair, or if classwide treatment was inappropriate when each class member could have a different outcome of that assessment.
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November 08, 2024
Disney Hit With Suit Over Streaming Media Patents
The Walt Disney Co. and subsidiaries like Hulu and ESPN have been hit with a federal lawsuit claiming that the entertainment giant's various streaming services infringe a series of media patents owned by Adeia Technologies Inc.
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November 08, 2024
FTX Investment Firm Seeks Return Of $11M In Crypto Assets
Alameda Research, an investment arm of the now-bankrupt FTX digital asset empire, has filed a lawsuit against cryptocurrency exchange Crypto.com in Delaware bankruptcy court, seeking the return of $11.4 million in assets still held on the platform despite multiple requests from the debtor.
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November 08, 2024
Judge Will Give Solar Co. $3M Interim Lifeline In Ch. 11
A Delaware bankruptcy judge said Friday she will grant Oya Renewables, a solar energy producer with offices in Boston and Toronto, interim access to $3 million in postpetition funding on offer from its Chapter 11 stalking horse bidder once some final modifications are made.
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November 07, 2024
Litigation Funders Look For Attorneys They Can Trust
Litigation funders often see the attorneys they would be working with as the most important element of whether to invest in a case, several members of the industry said on a panel at the University of Texas School of Law's Advanced Patent Law Institute.
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November 07, 2024
3rd Circ. Says Tainted Bayer Antifungals Clearly 'Worth Less'
Four of the nine named plaintiffs in a proposed class action over Bayer's 2021 recall of potentially benzene-tainted antifungal sprays can revive their claims against the company on the grounds that they'd paid for an effectively worthless product, a Third Circuit panel ruled Thursday.
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November 07, 2024
Chancery Mulls Stay, Toss Of SPAC Suit Pending NJ Ruling
Attorneys for the sponsor of a deal that took digital health equipment venture Butterfly Network public in February 2021 argued Thursday for a stay or dismissal of a Delaware Court of Chancery suit challenging the deal, citing extensive overlap with an earlier-filed federal securities action in New Jersey.
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November 07, 2024
Solar Energy Co. Hits Ch. 11 With $100M In Debt, Sale Plans
Oya Renewables, a solar energy producer with offices in Boston and Toronto, has filed for Chapter 11 protection in the Delaware bankruptcy court, disclosing at least $100 million in liabilities — including almost $87 million in funded debt — and plans to sell its assets, while blaming factors such as project delays and litigation for its liquidity crunch.
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November 07, 2024
Investors Accuse Truth Social SPAC's Ex-CEO Of Stock Theft
The former CEO of the special purpose acquisition company that combined with Donald Trump's Truth Social company has been accused of stealing millions of SPAC shares by funneling them to offshore shell entities and misappropriating investments to fund his "lavish" Miami lifestyle.
Expert Analysis
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Patent Lessons From 7 Federal Circuit Reversals In August
The Federal Circuit’s seven vacated or reversed cases from August provide helpful clarity on obviousness-type double patenting, written description and indefiniteness, and suggest improved practices for petitioners and patent owners in inter partes review, say Denise De Mory and Li Guo at Bunsow De Mory.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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Sublimit And Policy Interpretation Lessons From Amtrak Case
The recently settled dispute between Amtrak and its insurers over sublimit coverage illustrates that parties with unclear manuscript policies may wish to avoid litigation in favor of settlement — as the New York federal court declined to decide the case by applying prior term interpretations, says Laura Maletta at Chartwell Law.
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3rd Circ. Hertz Ruling Highlights Flawed Bankruptcy Theory
The Third Circuit, in its recent Hertz bankruptcy decision, became the latest appeals court to hold that noteholders were entitled to interest before shareholders under the absolute priority rule, but risked going astray by invoking the flawed theory of code impairment, say Matthew McGill and David Casazza at Gibson Dunn.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Licensing And Protections For Voice Actors In The Age Of AI
While two recently enacted California laws and other recent state and federal legislation largely focus on protecting actors and musicians from the unauthorized use of their digital likenesses by generative artificial intelligence systems, the lesser-known community of professional voice actors also stands to benefit, says attorney Scott Mortman.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Del. Dispatch: Cautionary Tales Of 2 Earnout Effort Breaches
The Delaware Court of Chancery's tendency to interpret earnout provisions precisely as written, highlighted in two September rulings that found buyers breached their shareholder obligations when they failed to make reasonable efforts to hit certain product development milestones, demonstrates the paramount importance of precisely wording these agreements, say attorneys at Fried Frank.
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Series
A Day In The In-House Life: Best Egg CLO Talks Power Of Prep
On a typical Monday in her life, Best Egg Chief Legal Officer Amy Thoreson Long chronicles a remote workday in which she makes time for everything from getting ahead on regulatory issues and researching recent Supreme Court decisions to dog walks and podcast breaks.