(Reuters) – Nothing has come easy in Bank of America’s groundbreaking $8.5 billion deal to resolve put-back claims by investors in 530 Countrywide mortgage-backed trusts. So maybe it’s fitting that just days before BofA is scheduled to deposit the $8.5 billion with the Countrywide MBS trustee so the money can finally be distributed to investors, the deal has run into yet another obstacle. The trustee, Bank of New York Mellon, went to New York State Supreme Court to ask for a delay in payouts. BNY Mellon wants instruction from the court on precisely how to distribute the money to investors.
(Reuters) – The world learned a couple of very interesting facts last week about Google’s Android operating system. Since its release, Android has generated about $31 billion in revenue and $22 billion in profit. Google meanwhile pays Apple big money – $1 billion in 2014 – to keep its search bar on the iPhone. Those previously unknown details of Google’s finances, as my Reuters colleague Dan Levine has reported, became public via Oracle’s epic litigation accusing Google of infringing its copyrights on Java application programming interfaces.
We journalists like to think we are special. We are cloaked in the First Amendment. We are a pillar of liberty. If Thomas Jefferson had been forced to choose between a government without newspapers or newspapers without a government, he’d have sided with us.
(Reuters) – Anyone who has ever entertained fantasies of being in charge of a really big case – and, as we know from the lead counsel contest in the consolidated Volkswagen litigation, that’s an inclusive group – ought to be required to read a motion filed Monday in federal court in Manhattan by Lance Cooper, the plaintiffs’ lawyer who broke open GM’s ignition switch scandal.
(Reuters) – It has only been a few months since Delaware Chancery Court launched its disruption of M&A shareholder litigation but the data already show the class action bar has responded. As Securities and Exchange economist Matthew Cain and Berkeley law professor Steven Davidoff Solomon demonstrated in their latest analysis of shareholder class actions filed in the wake of big merger announcements, new suits fell off a cliff in the last quarter of 2015, after Delaware judges informed plaintiffs and defendants that they’d no longer routinely approve disclosure-only settlements.
(Reuters) – Past performance, as they tell us in mutual fund advertisements, does not guarantee future results. But a new study of 93,000 certiorari petitions filed at the U.S. Supreme Court between the court’s 2001 and 2015 terms is more evidence that a small group of Supreme Court practitioners enjoy outsized success in persuading the justices to accept cases from their clients.
(Reuters) – These are early days in the consolidated consumer litigation over Volkswagen’s emissions cheating software, but U.S. District Judge Charles Breyer of San Francisco has already shown lawyers that he – and not the class action bar – is firmly in charge. I have a strong suspicion that the judge will continue to ignore the usual MDL dance steps as he nears a decision on which plaintiffs’ lawyers will lead the case.
(Reuters) – A majority of the U.S. Supreme Court showed Wednesday that it knows exactly what defendants have been up to in class actions involving relatively small damages for individual class members. In the court’s opinion in Campbell-Ewald Company v. Gomez, five justices said defendants can’t squelch class actions by offering full judgment to named plaintiffs and asserting the case is therefore moot, even if the named plaintiff rejects the offer.
(Reuters) – Remember the 4th U.S. Circuit Court of Appeals’ stirring “Company Doe” opinion in April 2014? A business later revealed to be the California baby products maker ErgoBaby had sued anonymously to block the Consumer Product Safety Commission from reporting what ErgoBaby considered an inaccurate and potentially damaging incident report on the CPSC’s public database. The 4th Circuit said it understood why ErgoBaby didn’t want its name revealed in a case that was, after all, brought to protect the company’s public image. But the appellate panel ruled the First Amendment right of access to court records “does not yield” to a corporation’s fears about its reputation.
(Reuters) – If the widow of a U.S. government contractor killed in a 2015 Islamic State shooting in Amman, Jordan, wins her newly filed Anti-Terrorism Act suit against Twitter, there could be enormous consequences for social media sites. As my colleague Jon Stempel reported Thursday, extremist groups are well known to use the Internet to recruit new members and plan attacks. Liability to victims of these attacks – and the treble damages available under the ATA – could mean significant exposure and reputational harm for sites frequented by extremists.