(Reuters) – On Friday, Vermont and Indiana will begin regulating the business of advancing cash to plaintiffs in personal injury litigation, joining six other states that since 2008 have enacted laws intended to shield consumers from predatory litigation funders.
(Reuters) – A few years back, the German automaker Porsche hired Robert Giuffra of Sullivan & Cromwell to defend the company against fraud suits by hedge funds that alleged they lost more than $3 billion shorting Volkswagen shares. The hedge funds accused Porsche of lying about its 2008 accumulation of VW shares and options, squeezing short-sellers when Porsche revealed that it controlled virtually all of VW’s publicly sold stock. Porsche denied the claims and litigated the cases aggressively in both state and federal court – a strategy that looked very smart after appellate judges in both jurisdictions tossed the hedge funds’ suits.
(Reuters) – When plaintiffs’ lawyers contemplate the filing of a shareholder derivative complaint, they have to make a fundamental choice: They can rush to the courthouse with easily obtained information from news stories and public filings or they can conduct an investigation before they sue, using corporate books and records that shareholders are entitled to see in order to inform their allegations.
(Reuters) – The shadowy Chicago firm known as Prenda Law existed for only a couple of years. Its practice was ostensibly copyright enforcement, though the firm never litigated an infringement claim all the way to a judgment on the merits. Prenda’s principals – John Steele, Paul Hansmeier and Paul Duffy – were often evasive about their relationship to the firm and to Prenda’s nominal clients, shell companies that owned copyrights on porn movies. But before its dissolution in 2013, Prenda was undeniably profitable. All told, according to an opinion issued Friday by the 9th U.S. Circuit Court of Appeals, the firm’s principals made millions of dollars from the business model they pioneered.
(Reuters) – Later this week, the justices of the U.S. Supreme Court are scheduled to consider a petition by Connecticut gun rights advocates who want the court to strike down the state’s restrictions on military-style semiautomatic weapons – the type of firearm used in this weekend’s horrific mass shooting at a nightclub in Florida and in the 2012 massacre of first graders at Sandy Hook elementary school.
(Reuters) – In January 2012, an online reviewer named Christian Dupont posted a scathing comment at Ripoff Report about Boston lawyer Richard Goren, whose firm is called Small Justice. The post accused Goren, among many other scurrilous things, of defrauding elderly clients and filing baseless lawsuits to seize his clients’ assets. Goren, who says the allegations are “completely baseless and false,” sued Dupont for defamation in Massachusetts state court over the January post and a followup in February. Dupont never showed up, and Goren ended up with a judgment awarding him copyrights to the inflammatory posts.
(Reuters) – It happens all the time in securities class actions: Plaintiffs’ lawyers and fraud defendants agree to settlements based on the size of the company’s insurance policy for directors and officers. If a company carries, say, a $50 million D&O insurance policy, the class is better off settling for $50 million than allowing the insurance money to be paid out to defense lawyers – especially if the company claims it’s on the brink of bankruptcy.
(Reuters) – There is a curious disconnect between what the presumptive Republican presidential nominee Donald Trump says in public about the judge overseeing two class actions claiming Trump University was a swindle and what Trump’s lawyers do in court.
(Reuters) – The 7th U.S. Circuit Court of Appeals hit Wisconsin plaintiffs lawyer Christopher Stombaugh of Stombaugh Smith & Co with nearly $35,000 in sanctions on Wednesday, even though the three-judge panel agreed that Stombaugh’s complaint against BNSF Railway Company raised legitimate arguments on behalf of about 50 plaintiffs who blamed the railroad for flooding that destroyed their homes.
(Reuters) – This is not an easy time to be a shareholder lawyer in Delaware Chancery Court. It’s been more than a year since Chancery judges banded together to discourage reflexive M&A suits, announcing in a series of oral and written opinions that they would no longer approve settlements in which defendants agreed to boost deal disclosures in exchange for broad releases of potential shareholder claims. Chancery Court’s new policy deprived plaintiffs’ lawyers of a steady stream of income, and from cases that often didn’t require much work because they settled quickly.