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Delaware
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July 29, 2024
Catching Up With Delaware's Chancery Court
Litigation linked to Elon Musk sparked several filings in Delaware's Court of Chancery last week, including a call for sanctions and hand-wringing about a proposed multibillion-dollar attorney fee. Here, Law360 looks at this and other highlights from last week in Delaware's Chancery Court.
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July 29, 2024
3rd Circ. Says Jury Must Weigh Ex-Philly ADA's Vax Bias Case
A jury will have to determine whether the Philadelphia District Attorney's Office was following a neutral, general policy when it denied an employee's religious exemption from its COVID-19 vaccination mandate, or whether D.A. Larry Krasner harbored anti-religious bias in the decision, the Third Circuit ruled Monday.
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July 29, 2024
Machine Toolmaker Hardinge Files Ch. 11 With Plans To Sell
New York-based metal-cutting machine toolmaker Hardinge Inc. filed for Chapter 11 protection in Delaware bankruptcy court Monday with more than $100 million in debt and plans for a bankruptcy sale.
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July 26, 2024
Product Liability Cases To Watch 2024: A Midyear Report
Litigation over claims that social media addict children and harm mental health continues to hold attorneys' attention, along with claims that "forever chemicals" are a source of cancer.
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July 26, 2024
FTX's Ryan Salame Asks To Delay Prison After Dog Attack
Former FTX executive Ryan Salame on Friday asked a New York federal judge to delay his prison surrender date because he was recently mauled by a German shepherd and must undergo "urgent and necessary medical treatment and surgery."
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July 26, 2024
Copyright Cases To Watch In The Second Half Of 2024
The first copyright trial arising from an artificial intelligence platform could provide intellectual property attorneys with insight into dozens of pending suits against AI companies, while the Tenth Circuit is reconsidering whether Netflix made fair use of a funeral clip in its "Tiger King" docuseries.
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July 26, 2024
Matterport Stockholder Sues In Del. For Books On Merger
A shareholder of 3D-imaging and digitization venture Matterport Inc. has launched a Delaware Court of Chancery lawsuit seeking company documents, citing concerns that the business was selling itself to global real estate analytics company CoStar Group in part to protect insider equity from pending litigation.
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July 26, 2024
Real Estate Recap: CrowdStrike, CFIUS, Financial Services
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including the real estate sector's reaction to the CrowdStrike outage, heightened scrutiny of foreign investment in U.S. properties and a view of evolving financial services regulation from the general counsel of the Conference of State Bank Supervisors.
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July 26, 2024
Shareholder Litigation To Watch: A Midyear Report
A pair of anticipated U.S. Supreme Court arguments, the fate of a new wave of lawsuits against special purpose acquisition companies and the future of shareholder claims of artificial intelligence malfeasance are among the issues that securities practitioners are following as the second half of 2024 unfolds in the courts.
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July 26, 2024
Chancery Questions $3.5M Atty Fee For Failed Proxy Battle
An activist shareholder that launched a failed proxy contest at First Foundation Inc. struggled to convince a Delaware Chancery Court judge Friday that the settlement it reached with the Texas-based bank was worth a $3.5 million attorney fee.
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July 26, 2024
Del. Court Won't Let Generic Co. Walk Back Invalidity Promise
Generic-drug maker Mankind Pharma is bound to its promise not to challenge the validity of a patent covering Allergan's glaucoma drug Lumigan after a federal judge in Delaware shot down its argument that recent rulings on obviousness-type double patenting altered the litigation landscape.
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July 26, 2024
Apparel Biz Delta Can Auction Assets In August
A Delaware bankruptcy judge cleared the way Friday for clothing manufacturer Delta Apparel to put its assets on the auction block next month with a $28 million starting bid for one of its lifestyle and fashion brands, as the company continues to search for a stalking horse to bid on its remaining clothing lines.
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July 26, 2024
Indivior To Pay $86M To Settle Opioid Claims By 5 States
Indivior will pay $86 million to settle claims by a group of state attorneys general over the drugmaker's alleged contributions to the American opioid crisis.
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July 26, 2024
Boeing Sued In Del. For Docs On Safety, Quality Failures
Two Boeing Co. pension fund stockholders sued in Delaware's Court of Chancery late on Thursday seeking access to company documents on safety and quality issues involving the 737 MAX, 777 and 787 commercial passenger jets, alleging a "slow rolling" of responses by the industry giant.
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July 26, 2024
Hunter Biden's Attys Made 'False Statements,' Judge Says
The California federal judge overseeing Hunter Biden's criminal tax trial threatened to sanction the presidential son's lawyers Wednesday, saying they made "false statements" in a motion to dismiss that cited a Florida federal judge's order disqualifying the special prosecutor in Donald Trump's classified documents case.
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July 25, 2024
3rd Circ. Again Tosses J&J Talc Unit's 'Texas Two-Step' Ch. 11
The Third Circuit on Thursday affirmed the dismissal of the reworked Chapter 11 case of Johnson & Johnson's talc unit that used a controversial "Texas two-step" maneuver, saying the company still hasn't displayed the financial distress required to justify bankruptcy protection.
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July 25, 2024
Fla. Judge Will Consider Coordination Of Truth Social Suits
A Florida judge said Thursday he would not formally consolidate two lawsuits related to the special purpose acquisition company deal that took Donald Trump's Truth Social public but said he would consider setting up some coordination for judicial efficiency.
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July 25, 2024
Pfizer Calls GSK Patents In COVID Vax Case Unenforceable
Pfizer and BioNTech have fired back at GlaxoSmithKline's patent suit against them over the COVID-19 vaccine, saying GSK's patents are unenforceable because the company delayed in filing its applications and then crafted them to cover the blockbuster vaccine after it became available.
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July 25, 2024
Chancery Urged To Sanction Musk, X, Attys After Doc Delete
The founder of a legal research site that makes government documents public has petitioned Delaware's Court of Chancery to sanction Elon Musk, his X entities and his counsel after a court clerk allegedly removed, at the request of attorneys for the billionaire, a document filed in Twitter Inc.'s battle over Musk's $44 billion takeover.
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July 25, 2024
Hertz Tells Chancery Warrant Holders Are Misreading Contract
A pair of investment funds that acquired 9 million warrants from Hertz after its bankruptcy and later sued the car rental company for breach of contract misinterpreted the warrant agreement, and their lawsuit should be dismissed, Hertz said in a response to the complaint brought before Delaware's Court of Chancery.
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July 25, 2024
6th Circ. Judge Questions GM's Arbitration Argument Delay
A Sixth Circuit judge pressed General Motors on Thursday about why it waited three years to argue that some plaintiffs were bound by arbitration agreements in a class action over allegedly defective transmissions, saying a major car company should be aware most consumers sign such contracts.
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July 25, 2024
Chancery Says DGCL 'Donut Hole' Dooms Governance Deal
A "donut hole" baked into a rushed Delaware General Corporation Law amendment by state lawmakers earlier this year has tripped up most governance concessions that information technology company N-able Inc. granted to its lead investors, a Delaware vice chancellor ruled on Thursday.
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July 25, 2024
Vintage Wine Estates Can Tap Into $60.5M DIP Financing
Bankrupt wine producer and processor Vintage Wine Estates received permission Thursday from a Delaware bankruptcy judge to begin borrowing under a $60.5 million debtor-in-possession financing package being provided by its prepetition lenders.
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July 25, 2024
3rd Circ. Enters Fray On Venue For Immigration Appeals
The Third Circuit has transferred an immigration case to the Sixth Circuit, finding that court to be the appropriate venue for an appeal stemming from an immigration case involving virtual appearances from multiple remote locations, because the complaint underlying the matter was filed in Ohio.
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July 25, 2024
Paramount-Skydance Deal Is Redstone Windfall, Investor Says
A shareholder of Paramount Global Class B common stock on Wednesday sued chairwoman Shari Redstone and several members of its board over the allegedly "unfair" merger with Skydance Media LLC, claiming the deal is being orchestrated to cash out Redstone's investments in Paramount at a substantial premium compared to other stockholders.
Expert Analysis
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Federal Courts And AI Standing Orders: Safety Or Overkill?
Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.
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Wachtell-X Ruling Highlights Trend On Arbitrability Question
A growing body of case law, including a California state court's recent decision in X Corp. v. Wachtell, holds that incorporation of specific arbitral body rules in an arbitration provision may in and of itself constitute clear and unmistakable evidence of delegation of arbitrability to an arbitrator, and thus such clauses should be drafted carefully, say attorneys at Norton Rose.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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Justice O'Connor Was Architect of ERISA's Lasting Success
U.S. Supreme Court Justice Sandra Day O'Connor laid the foundations of Employee Retirement Income Security Act jurisprudence, defining a default standard of review, preemption rules and the act's interplay with employment law, through opinions that are still instructive as ERISA approaches its 50th anniversary, says José Jara at Fox Rothschild.
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On The Edge: Lessons In Patent Litigation Financing
A federal judge's recent request that the U.S. Department of Justice look into IP Edge patent litigation, and that counsel be disciplined, serves as a reminder for parties asserting intellectual property rights — and their attorneys — to exercise caution when structuring a litigation financing agreement, say Samuel Habein and James De Vellis at Foley & Lardner.
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Opinion
Conflicts Abound When Activist Short-Sellers Publish Reports
The self-serving relationship between activist short-sellers and plaintiff-side litigators is conflict-ridden and hinders the fact finder's impartiality when a short report forms the basis for lead plaintiffs' allegations, say Nessim Mezrahi and Stephen Sigrist at SAR.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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Key Issues When Navigating A Tenant's Bankruptcy
In light of recent Chapter 11 filings by Rite Aid and WeWork — companies with thousands of commercial leases — practitioners should review issues that can arise when bankruptcy is used to exit a lease, including the consequences of lease rejection and the statutory cap on landlord damage claims for a rejected lease, say attorneys at Proskauer.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.
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5 Privacy And Cybersecurity Resolutions For 2024
In 2023, companies grappled with an unprecedented array of data privacy and cybersecurity challenges that are likely to continue in 2024, meaning businesses will be well-served to incorporate strategies, such as data governance and website configuration, into their compliance programs, say Steven Stransky at Thompson Hine and Violet Sullivan at Crum & Forster.
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Fed. Circ. Patent Decisions In 2023: An Empirical Review
The Federal Circuit decided 306 patent cases last year, which is still well down from the pre-pandemic norm of around 440, and on the whole the court's decisions were markedly less patentee-friendly in 2023 than in 2022, says Dan Bagatell at Perkins Coie.
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What The Law Firm Of The Future Will Look Like
As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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4 PR Pointers When Your Case Is In The News
Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.
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3 Pointers From Tilton Case To Help Win Advancement Suits
The Delaware Superior Court’s refusal to let Lynn Tilton sue her advancers for legal fees, ruling she had not yet attempted to negotiate in good faith, suggests that policyholders may fare better if they attempt proactive strategies to narrow disputes over advancement agreements before taking their insurers to court, says Evan Bolla at Harris St. Laurent.
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Charting The Course For Digital Assets In 2024
Although 2023 was a tough year for the digital asset industry, upcoming court decisions, legislation and regulatory action will bring clarity, allowing the industry to expand and evolve, and the government will decide what innovation it will allow without challenge, says Joshua Smeltzer at Gray Reed.