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Delaware
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February 03, 2025
Lumio Gets OK To Liquidate Through Ch. 11 After Asset Sale
A Delaware bankruptcy judge on Monday approved solar panel provider Lumio Holdings Inc.'s Chapter 11 liquidation plan, months after the company agreed to sell its business to Zeo Energy Corp.
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February 03, 2025
DC Judge Joins RI In Blocking Trump Funding Freeze
A D.C. federal judge on Monday temporarily blocked the Trump administration from implementing a freeze on federal spending while a group of nonprofits sue over the move, ruling the pause appears to "suffer from infirmities of a constitutional magnitude."
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February 03, 2025
PetroQuest Gets OK For $20.6M Texas Oilfield Sale
A Delaware bankruptcy judge on Monday approved the $20.6 million sale of PetroQuest Energy's East Texas oilfields, more than two years after a failed attempt to sell those fields sparked a lawsuit that helped land the company in Chapter 11.
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February 03, 2025
Liberated Brands Files Ch. 11 After Losing Clothing Licenses
Liberated Brands LLC, a retail company that sells clothes for brands like Volcom, RVCA and Billabong, filed for bankruptcy in Delaware with $226 million in debt to wind down and sell its operations after a retail lull pinched its liquidity and led a third-party brand owner to pull out of key license agreements.
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January 31, 2025
Small Biz Attys Jump Into 4th Circ. Shell Co. Law Challenge
A business group has urged the Fourth Circuit to stop the U.S. Department of the Treasury from enforcing a law that requires companies to disclose personal identifying information about their beneficial owners and applicants to the agency, saying the law exceeds the limit of Congress' power to regulate intrastate economic activity.
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January 31, 2025
Del. Justices Uphold $33M-Plus Award In Software Co. Suit
Delaware's Supreme Court shot down on Friday a higher education software company founder's appeal from a $33 million-and-growing Court of Chancery award favoring shareholders who claimed they were kept in the dark when millions in stock purchase warrants were allowed to expire without notice.
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January 31, 2025
Red States Back Trump Against 'Distracting' Truth Social Suit
Fifteen Republican-led states have joined President Donald Trump's fight against a lawsuit filed by early investors in his social media platform, with the states on Friday urging a Delaware state court to dismiss the case so as not to "distract" Trump from his presidential duties.
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January 31, 2025
3rd Circ. Backs DOL's $7M Win In Care Co. Wage Suit
The Third Circuit refused on Friday to overturn a $7 million judgment in favor of the U.S. Department of Labor in its lawsuit against a home care company, saying the time workers spent traveling between clients' homes is fundamental to their jobs and must be compensated.
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January 31, 2025
Supreme Court Eyes Its 'Next Frontier' In FCC Delegation Case
A case about broadband subsidies will give the U.S. Supreme Court the chance to revive a long-dormant separation of powers principle that attorneys say could upend regulations in numerous industries and trigger a power shift that would make last term's shake-up of federal agency authority pale in comparison. And a majority of the court already appears to support its resurrection.
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January 31, 2025
Dem AGs Say Trump's DEI Attacks Undercut Anti-Bias Efforts
A dozen state attorneys general decried President Donald Trump's attempts to roll back diversity, equity, inclusion and accessibility programs across the federal government, saying Friday his stance threatens decades of bipartisan work to combat discrimination and provide equal job opportunities.
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January 31, 2025
NJ, 15 Other States Urge 5th Circ. To Revive ATF Trigger Ban
New Jersey led a coalition of 16 states urging the Fifth Circuit to reverse a Texas federal court decision blocking the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives from classifying forced reset triggers as illegal machine guns, arguing, "FRTs are new, but the mechanical principles on which they operate are not."
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January 31, 2025
Chancery Pushes Air Transport SPAC Suit Toward Trial
Stockholders who sued for damages after the take-public merger of an air taxi and medical transport company on Friday beat a dismissal motion filed by the company's principals in Delaware's Court of Chancery, sending the case to discovery and toward trial.
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February 14, 2025
Law360 Seeks Members For Its 2025 Editorial Boards
Law360 is looking for avid readers of our publications to serve as members of our 2025 editorial advisory boards.
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January 31, 2025
Trump Funding Freeze Blocked As Court Doubts Reversal
A Rhode Island federal judge on Friday issued a temporary restraining order barring the Trump administration from freezing spending on federal grant and aid programs, calling the move illegal and saying the issue was not mooted by a White House memo claiming the directive had been rescinded.
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January 30, 2025
Calif. AG Asks 9th Circ. To Block Meta's MDL Discovery Win
The California attorney general urged the Ninth Circuit on Wednesday to block orders requiring third-party state agencies to respond to Meta Platforms' discovery demands in multidistrict litigation over social media's alleged harms, arguing in a mandamus petition the "clearly erroneous" ruling "runs roughshod" over the state's constitutional divisions of power.
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January 30, 2025
Hotel Guests Get Backing For Algorithmic Pricing Suit
Hotel guests accusing a group of Atlantic City properties of using shared software to fix room rates are getting a helping hand in their Third Circuit fight to revive their suit from antimonopoly interest groups, who filed in separate amicus briefs in support of their effort this week.
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January 30, 2025
Chancery Tosses Last Of Deutsche Bank, Vik Debt Suit
A more than seven-year Delaware Court of Chancery battle tied to Norwegian billionaire Alexander Vik's alleged efforts to avoid a $236 million U.K. judgment in 2009 ended on Wednesday with a quiet fizzle.
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January 30, 2025
Ligado Creditor Pans 'Exorbitant' Fees For $115M DIP Loan
Satellite communications company Ligado Networks LLC's largest unsecured creditor asked a Delaware bankruptcy judge to reject the company's proposed $115 million Chapter 11 financing package, saying Ligado's secured lenders were seeking to help themselves to $100 million in fees as part of the deal.
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January 30, 2025
Chancery Reverses Magistrate Toss Of Paramount Doc Suit
A Paramount Global pension fund stockholder has won a Delaware Court of Chancery reversal of a magistrate's dismissal of a suit for company books and records on events surrounding a proposed multibillion-dollar merger between Paramount and Skydance Media, in a decision heavily focused on unnamed sources.
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January 30, 2025
Del. Supreme Court Names New Chief Disciplinary Counsel
Delaware's Supreme Court announced Thursday that it had appointed a former Marshall Dennehey attorney as chief disciplinary counsel for the office of disciplinary counsel, which helps adjudicate attorney misconduct allegations.
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January 30, 2025
BakerHostetler Adds Fish & Richardson Litigator In Del.
BakerHostetler has hired a commercial litigator who formerly worked for intellectual property firm Fish & Richardson PC for more than a decade to bolster its Delaware office and complex litigation prowess in the Chancery Court and elsewhere.
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January 30, 2025
Yellow Corp. Gets OK For $67M Real Estate Asset Sale
A Delaware bankruptcy judge on Thursday approved defunct trucking company Yellow Corp.'s $67 million asset sales for its owned and leased properties, saying the asset purchase agreements serve "the best interests" of the debtor, creditors and other stakeholders.
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January 29, 2025
Del. Justices Mull 'Nuanced' T-Mobile Data Breach Claims
Delaware's chief justice pressed an attorney for T-Mobile Corp. stockholders Wednesday on what the attorney called a "nuanced" derivative claim that the company's board wrongly failed to pursue damages for massive data breaches after its controlling stockholder pressed for adoption of a vulnerable data sharing program.
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January 29, 2025
SPAC Investors Sue In Del. Over Conflicted Concert Co. Deal
Investors of a special purpose acquisition company have sued the venture's principals in Delaware Chancery Court, accusing them of steering the already cash-poor company into a conflicted deal to take public a concert promoter affiliated with a SPAC creditor that had scant luck beyond events involving a 1970s "one-hit wonder."
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January 29, 2025
Jenzabar Tells Del. Justices Investor Delay Sinks $26M Award
An attorney for the founder of a higher education software company told Delaware's Supreme Court on Wednesday that shareholders moved too late to recover on claims they were kept in the dark when millions in stock purchase warrants were allowed to expire without notice that they could invest in a follow-on opportunity.
Expert Analysis
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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Del. Dispatch: Drafting Lessons For Earnout Provisions
The Delaware Court of Chancery's recent decision in Medal v. Beckett Collectibles provides guidance for avoiding ambiguity in provisions relating to the acceleration of earnout payments under specified circumstances, and provisions mandating good faith negotiations before bringing earnout litigation, say attorneys at Fried Frank.
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Missouri Injunction A Setback For State Anti-ESG Rules
A Missouri federal court’s recent order enjoining the state’s anti-ESG rules comes amid actions by state legislatures to revise or invalidate similar legislation imposing disclosure and consent requirements around environmental, social and governance investing, and could be a blueprint for future challenges, say attorneys at Paul Hastings.
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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.