The U.S. Supreme Court handed down an unusual order Tuesday, directing the lawyers in a case called Public Employees’ Retirement System of Mississippi v. IndyMac to file letter briefs explaining whether a newly proposed settlement of the underlying mortgage-backed-securities class action affects the question presented to the Supreme Court. That sure caught my attention.
On Friday morning, jurors in federal court in Brooklyn began deliberating whether Jordan’s Arab Bank is responsible for financing Hamas terror attacks that killed or injured dozens of Americans in Israel and the Palestinian territories. Within hours of the jury retreating to the jury room to decide the case, plaintiffs’ lawyer Michael Elsner of Motley Rice received a response to a request for documents he filed with the U.S. State Department in 2008 under the Freedom of Information Act.
Last week, on the evening of Sept. 11, a lawyer named Mark Werbner stood outside his hotel in Brooklyn and looked across the East River at the blue lights commemorating the collapse of the World Trade Center in 2001. Werbner, who is from Dallas, was in New York because he represents American victims of Hamas bombings and shootings during the second Palestinian Intifada. Since early August, he and his co-counsel have been trying the victims’ claims against Jordan’s Arab Bank, which they accuse of financing the Hamas terror operations. As he looked at the blue lights, Werbner told jurors Thursday during closing arguments in the Arab Bank trial, he stepped back and asked himself whether the 10 years of work he’d put into the case had accomplished anything.
David Lola wanted to be a patent lawyer. He’d been a chemistry major at the University of Texas, then gone to work as a pharmaceutical researcher for Warner-Lambert. But when the company said it would pay his way through law school, he took the offer. Lola applied to only one school, the University of San Diego School of Law, because it was close by. His plan was to keep working as a scientist at Warner-Lambert until he earned his law degree, then to switch over to advising the company on patenting the drugs it developed.
In the middle of a status conference Friday, Delaware Chancellor Andre Bouchard asked a blunt question of Theodore Mirvis of Wachtell, Lipton, Rosen & Katz. Mirvis represents Allergan, the pharmaceutical company fending off a unique tag-team hostile bid by the Canadian drugmaker Valeant and the hedge fund Pershing Square. In late August, Pershing notified Allergan that it had amassed the requisite shareholder support to call for a special meeting to oust the company’s directors, despite the onerous consent procedures Allergan had adopted in a bylaw enacted earlier this year. On the same day, Pershing and Valeant sued Allergan in Delaware Chancery Court to force the company to schedule the special meeting.
We know the U.S. government believes that it has such significant national security interests at stake in a libel suit by the Greek shipping magnate Victor Restis against the non-profit United Against Nuclear Iran that on Friday, the Justice Department invoked the state secrets privilege and asked for Restis’ suit to be dismissed. What we don’t know is why.
In July, the Delaware Supreme Court gave shareholders a fancy new driving wedge to use against corporate boards. The justices ruled in Wal-Mart v. Indiana Electrical Workers that under Delaware’s books-and-records law, investors are entitled to see more than just bare-bones board materials and accounting information when they’re investigating whether directors breached their duty. Even officer-level documents that the board didn’t see – and even some privileged communications – are fair game for shareholders evaluating the board’s conduct in anticipation of a possible derivative suit against directors.
The prolific class action firm Robbins Geller Rudman & Dowd had to know that the taint of a decision last month by a trial judge in Chicago federal court – who sanctioned the firm under Rule 11 and ordered it to pay Boeing’s legal fees and costs for defending an unjustified securities class action – was going to be hard to erase. But on the evidence of a letter the firm filed Wednesday in a securities class action against JPMorgan Chase in Manhattan federal court, Robbins Geller seems determined to stop the stain from spreading.
When my whip-smart Reuters colleague Dan Levine noticed Tuesday that George Riley and several other lawyers from O’Melveny & Myers had entered appearances as defense counsel for Samsung in its month-old dispute with Microsoft over allegedly unpaid patent royalties, my immediate thought was that O’Melveny’s new assignment was another sign of the waning tensions between Apple and the South Korean electronics company.
Chancellor Andre Bouchard of Delaware Chancery Court struck a double blow Monday for corporations that want to restrict shareholder litigation to a single jurisdiction. In a decision upholding the validity of a bylaw requiring shareholders of First Citizens Bancshares to sue board members only in North Carolina, Bouchard ruled that Delaware corporations can designate venues other than Delaware as the exclusive forum for shareholder claims – an issue of first impression in Chancery Court. But that wasn’t all. Bouchard also rejected shareholder arguments that First Citizens’ forum selection clause can’t be enforced because it was enacted on the same day that the North Carolina bank announced its $676 million acquisition of a related First Citizens entity in South Carolina.