(Reuters) – To the relief of every bank that issued mortgage-backed securities in the heyday of subprime lending, New York’s highest court, the Court of Appeals, ruled Thursday that the six-year statute of limitations for investors’ breach-of-contract claims begins to run on the date the MBS contract was executed – and not, as investors had argued, when MBS trustees fail to repurchase underlying mortgages that don’t meet issuers’ representations and warranties.
(Reuters) – The Israeli pharmaceutical company Teva was quick to cut its losses yesterday after U.S. Magistrate Judge Lisa Lenihan of Pittsburgh recommended a preliminary injunction barring Kirkland & Ellis from continuing to advise Teva in its hostile bid for Mylan, an occasional Kirkland client since 2013. Kirkland announced that it will file an objection to Judge Lenihan’s recommendation, which will be reviewed by U.S. Chief District Judge Joy Conti, but in the meantime, Teva hired Sullivan & Cromwell to replace the firm in the Mylan takeover battle. A source told Reuters that Kirkland actually agreed to step aside because it did not want its longtime client Teva to face distractions in the hostile offer for Netherlands-based Mylan.
(Reuters) – By this time next year, class action lawyers could be looking back with nostalgia and regret at the good old days when they only had to worry about Wal-Mart v. Dukes and Comcast v. Behrend.
The 2nd U.S Circuit Court of Appeals undid an injustice Monday when it ordered a new trial for David Parse, a one-time Deutsche Bank broker who was convicted in 2011 for his alleged participation in a tax shelter scheme supposedly masterminded by the now-defunct law firm Jenkens & Gilchrist. In an opinion by Judge Amalya Kearse, the appeals court said Parse’s conviction was tainted by a biased juror who admitted after trial that she had told a series of breathtaking lies during voir dire. Even though Parse’s former lawyers at Brune & Richard had turned up Internet evidence before and during trial that raised suspicions about the juror, the 2nd Circuit said, Parse had not waived his right to an impartial jury.
Margot Freeman Saunders of the National Consumer Law Center was braced for bad news from the Federal Communications Commission on reform of the Telephone Consumer Protection Act (TCPA). Since last year, Saunders has been trying to file responses to an onslaught of petitions at the FCC by business groups complaining about supposedly baseless TCPA class actions, but consumer advocates couldn’t match industry’s lobbying campaign. Saunders said she met twice with FCC staffers to push for more stringent prohibitions on spam phone calls, faxes and texts. Business groups, by contrast, made dozens of trips to the agency.
(Reuters) – The commissioners of the Securities and Exchange Commission seem to think there may just be something to the latest defense arguments that its in-house administrative law judges are unconstitutional.
The military contractor Kellogg Brown & Root Services won at the U.S. Supreme Court on Tuesday, when the justices ruled unanimously in KBR v. U.S. ex rel Carter that the Wartime Suspension of Limitations Act extends the time limit only for criminal fraud cases, not for civil suits under the False Claims Act. KBR lawyer John Elwood of Vinson & Elkins told my Reuters colleague Lawrence Hurley that the decision should effectively kill a 2011 whistleblower suit accusing the company of billing the U.S. government for months of water purification services in Iraq it didn’t actually provide.
Citigroup revealed last week that it has agreed to pay $394 million to settle private antitrust litigation over manipulation of a benchmark price average for trades in the foreign exchange market, bringing the total recovery for plaintiffs in the consolidated forex litigation to nearly $810 million. That number is expected to rise. Citi is the fourth bank to reach a deal in the private case – JPMorgan Chase, UBS and Bank of America have already settled – and at least two other of the eight remaining forex defendants are also reportedly in talks with plaintiffs lawyers.
The judge overseeing litigation over Target’s epic 2013 data breach has serious qualms about Target’s $19 million deal with MasterCard, which proposes to resolve claims by banks that issue MasterCard credit and debit cards. But in a ruling Thursday night, U.S. District Judge Paul Magnuson of St. Paul, Minnesota, said there’s nothing he can do to stop it.
(Reuters) – The plaintiffs’ firm Lieff Cabraser Heimann & Bernstein, working with regular appellate counsel Samuel Issacharoff of New York University School of Law, submitted a compelling petition last week at the 11th U.S. Circuit Court of Appeals, asking the appellate court to reconsider a three-judge panel’s ruling in Graham v. R.J. Reynolds. In that April 8 decision, the 11th Circuit held that Florida smokers’ strict liability and negligence claims against tobacco companies are implicitly preempted because Congress has imposed federal regulation on cigarettes but has not banned them. Lieff Cabraser’s brief argues not only that the 11th Circuit opinion is at odds with a previous 11th Circuit decision based on the same basic facts and case law but that it’s also contrary to U.S. Supreme Court precedent.