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Delaware
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January 22, 2025
Waste Co. Says Ex-Director Used Secret Info For Sabotage
Commercial waste management company RTS has accused a former board director in Delaware Chancery Court of misusing its confidential information and deliberately sabotaging the business to try to force a cheap sale to the ex-director's private equity firm.
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January 22, 2025
Hotel Guests Urge 3rd Circ. To Revive Algorithmic Pricing Suit
Guests accusing Atlantic City hotel-casino owners of inflating room rates by using the same software have told the Third Circuit that a lower court was wrong to rely on a similar case targeting room rates in Las Vegas when dismissing their claims.
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January 22, 2025
Full DC Circ. Stands By Wipeout Of FERC Pipeline Approvals
The D.C. Circuit has rejected Williams Cos.' requests to reconsider a panel's decision scrapping Federal Energy Regulatory Commission approvals of a five-state expansion of the company's Transco pipeline system, despite more than a half-dozen amicus parties backing the rehearing requests.
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January 22, 2025
Nixed Invitae Asset Buyer Asks Ch. 11 Court To Stop Litigation
Genetic testing company Natera has launched an adversary lawsuit against Invitae, a competitor that sought insolvency protection last year, asking a New Jersey bankruptcy judge to stop Invitae's Chapter 11 plan administrator from collecting payments owed under a rejected contract.
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January 22, 2025
Captive Insurance Co. Head Seeks Tax-Shelter Fine Refund
A tax attorney who heads a business that creates captive insurance companies said the IRS wrongly accused him of promoting an abusive tax shelter, telling an Ohio federal court the agency owes him a refund of penalties he handed over.
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January 22, 2025
Lender Files Ch. 7 For Pa.-Based ATM Network Owner
Silverview Credit Partners LP has filed an involuntary Chapter 7 petition in Delaware bankruptcy court against Blackford ATM Ventures, a Pennsylvania-based operator of a network of ATMs, claiming the company owes $28.6 million for defaulted loans.
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January 21, 2025
Ex-Meta COO Sanctioned For Deleting Cambridge Emails
A Delaware Court of Chancery judge on Tuesday sanctioned Meta Platforms Inc.'s former Chief Operating Officer Sheryl Sandberg in consolidated litigation over the Facebook Cambridge Analytica data scandal, finding that she likely selectively deleted emails that related to the litigation.
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January 21, 2025
Del. Justices Seal Oracle's Win In $9.3B NetSuite Merger Suit
The Delaware Supreme Court on Tuesday affirmed the Chancery Court's toss last year of a challenge to Oracle Corp.'s $9.3 billion acquisition of NetSuite Corp. in 2016, saying the Chancery did not err in finding that the transaction was untainted from influence by Oracle's management or its founder and top shareholder.
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January 21, 2025
Receiver Sought For Partnership That Funded Affleck Films
Film producer John P. Middleton has asked Delaware's Court of Chancery to appoint a receiver for The Film Capitol LLC, a partnership he formed in 2013 to provide funding for a production project with actor Casey Affleck.
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January 21, 2025
Judge OKs Deal To Keep Some American Freight Stores Open
A Delaware bankruptcy judge on Tuesday approved a sale in Chapter 11 that will keep the lights on in more than two dozen American Freight home furnishing stores by transferring their leases from the bankrupt Franchise Group.
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January 21, 2025
Fed. Circ. Refuses To Restore Solar Cell Patent Claims
An Indian industrial conglomerate failed on Tuesday to persuade Federal Circuit judges to breathe new life into a patent covering a way of assembling solar cells that it had asserted in Delaware federal court against a Korean rival.
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January 21, 2025
Co. Seeks IRS Refund In $2.7M Captive Insurance Case
A Delaware federal court should refund tax penalties a company paid on a $2.7 bill from the IRS for activities related to captive insurance companies and promoting abusive tax shelters, the company argued Tuesday, saying the government provided no proof it did anything wrong.
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January 21, 2025
Dem States Challenge Trump's Birthright Citizenship Order
Eighteen Democratic-led states, the District of Columbia and the city of San Francisco filed a lawsuit in Massachusetts federal court on Tuesday challenging the constitutionality of President Donald Trump's executive order limiting birthright citizenship.
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January 17, 2025
Law360 Names Practice Groups Of The Year
Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2024, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.
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January 17, 2025
Law360 Names Firms Of The Year
Eight law firms have earned spots as Law360's Firms of the Year, with 54 Practice Group of the Year awards among them, steering some of the largest deals of 2024 and securing high-profile litigation wins, including at the U.S. Supreme Court.
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January 17, 2025
States Ask To Join Suit To Uphold Gun Show Loophole Closure
Over a dozen states asked a Texas federal judge for permission to join a suit over the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives' rule closing the so-called gun show loophole, saying in a motion that the incoming Trump administration wouldn't properly defend the rule.
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January 17, 2025
Bayer, J&J Minimized Drug Reaction Data, 3rd Circ. Told
A doctor urged the Third Circuit on Friday to revive his whistleblower suit against Bayer Corp. and Johnson & Johnson, arguing that the drugmakers' regulatory approval applications played down the side effects of the antibiotics Cipro and Levaquin.
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January 17, 2025
Exhumation Catch Unclear In NFL Players' Deal, 3rd Circ. Told
Family members of several late NFL players asked the Third Circuit on Friday to grant them national concussion settlement benefits that were denied for a lack of an eligible chronic traumatic encephalopathy diagnosis, arguing the requirement for a neurological exam on exhumed bodies was not made clear as part of the settlement notice.
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January 17, 2025
CFPB, Student Loan Co. Ink $2.25M Deal Over Debt Practices
The National Collegiate Student Loan Trusts agreed to pay $2.25 million to resolve the Consumer Financial Protection Bureau's suit accusing it of harming borrowers through unfair collection tactics on private student loan debts, according to a joint motion to approve the stipulated judgment filed in Delaware federal court.
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January 17, 2025
3rd Circ. Vexed By Remedies For Defunct Vax Mandate
The Third Circuit wrestled Friday with how it could remedy injuries claimed to be suffered by nurses who lost their jobs for not complying with New Jersey Gov. Phil Murphy's vaccine mandate for healthcare workers, asking what order it could give about something that is no longer in effect and about jobs they no longer have.
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January 17, 2025
Judge Scolds Dormify For Founder Not Appearing In Court
A Delaware bankruptcy judge sharply criticized Dormify Inc. after its founder didn't appear at a hearing Friday, ordering a hearing on whether to dismiss the dorm-room decorating retailer's Chapter 11 case or convert it to a Chapter 7 liquidation.
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January 17, 2025
Prime Sports Drink Fight In Wrong Venue, Chancery Finds
A beverage bottler's lawsuit seeking damages tied to sports-drink startup Prime Hydration's alleged failure to honor a production contract has come up empty in Delaware's Court of Chancery, with a Thursday ruling that the complaint never tapped into the court's equity jurisdiction.
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January 17, 2025
Vanguard To Pay SEC, States $106M Over Surprise Tax Bills
The U.S. Securities and Exchange Commission was joined by dozens of state regulators Friday in announcing a $106.4 million settlement with The Vanguard Group Inc. over claims that the company misled investors about the heightened capital gains taxes they would have to pay on certain retirement savings accounts.
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January 16, 2025
Joann Can Fund Speedy Ch. 11 Sale Plans With Cash On Hand
Joann Inc. is racing to find a going concern buyer before mid-February, or it will take an offer from a firm that plans to liquidate the 80-year-old national craft supply retailer, attorneys told a Delaware bankruptcy judge Thursday, laying out the tight timeline proposed in its second Chapter 11 in less than a year.
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January 16, 2025
NPE Patent Litigation Increased By 22% In 2024
Patent lawsuits launched by nonpracticing entities shot up in 2024, with the Eastern District of Texas being the primary hotbed for such cases, according to a new report.
Expert Analysis
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Class Action Law Makes An LLC A 'Jurisdictional Platypus'
The applicability of Section 1332(d)(10) of the Class Action Fairness Act is still widely misunderstood — and given the ambiguous nature of limited liability companies, the law will likely continue to confound courts and litigants — so parties should be prepared for a range of outcomes, says Andrew Gunem at Strauss Borrelli.
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Jarkesy Ruling May Redefine Jury Role In Patent Fraud
Regardless of whether the U.S. Supreme Court’s Jarkesy ruling implicates the direction of inequitable conduct, which requires showing that the patentee made material statements or omissions to the U.S. Patent and Trademark Office, the decision has created opportunities for defendants to argue more substantively for jury trials than ever before, say attorneys at Cadwalader.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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2nd Circ. Case Reinforces Need For Advance Notice Bylaws
The Second Circuit's recent decision in Nano Dimension v. Murchinson illustrates that Section 13(d) of the Exchange Act is a square peg for a round hole, and that advance notice bylaws are far better at protecting against undisclosed coordination among activist shareholders, say attorneys at Morgan Lewis.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.
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How 3rd Circ. Raised Bar For Constitutional Case Injunctions
The Third Circuit's decision in Delaware State Sportsmen's Association v. Delaware Department of Safety & Homeland Security, rejecting the relaxed preliminary injunction standards many courts have used when plaintiffs allege constitutional harms, could portend a shift in such cases in at least four ways, say attorneys at Gibson Dunn.
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The Fed. Circ. In June: More Liability For Generic-Drug Makers
The Federal Circuit’s June ruling in Amarin v. Hikma will likely result in more allegations of induced infringement by generic drugs postapproval, with more of those cases proceeding to at least the summary judgment stage instead of being cut off at the outset, say Jeremiah Helm and Sean Murray at Knobbe Martens.
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Opinion
Congress Must Increase Small Biz Ch. 11 Debt Cap
Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.
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Opinion
Expert Witness Standards Must Consider Peer Review Crisis
For nearly two decades, the so-called replication crisis has upended how the scientific community views the reliability of peer-reviewed studies, and it’s time for courts to reevaluate whether peer review is a trustworthy proxy for expert witness reliability, say Jeffrey Gross and Robert LaCroix at Reid Collins.