(Reuters) – Judges in Delaware Chancery Court have been saying for years that they are not averse to shareholder M&A suits – just to ill-founded challenges to well-conducted transactions. I’ve been writing a lot lately about Chancery’s crackdown on the latter. But the flip side, as Vice-Chancellor Travis Laster said earlier this month when he rejected a disclosure-only settlement involving Aruba Network’s $3 billion sale to HP, is that judges will let promising shareholder cases move forward.
(Reuters) – Remember Paul Ceglia, the upstate New York wood pellet salesman who once claimed to own half of Facebook by virtue of a contract he signed with Mark Zuckerberg before Zuckerberg left Harvard? Ceglia’s claims against Facebook and its founder backfired in the most spectacular fashion imaginable. Not only was his civil suit dismissed after a succession of law firms came and went from the case but federal prosecutors in Manhattan charged Ceglia with fraud for allegedly forging the critical document. Ceglia went on the lam last March, along with his family and his dog. He is now considered a federal fugitive.
(Reuters) – As the securities class action bar continues to figure out exactly how the U.S. Supreme Court’s 2014 ruling in Halliburton v. Erica P. John Fund is going to impact shareholder fraud cases, Goldman Sachs and its lawyers at Sullivan & Cromwell want a say.
(Reuters) – If you were looking for policy pronouncements from the U.S. Supreme Court about the proper use of the class action device, you were probably disappointed Wednesday after oral arguments in Campbell-Ewald v. Gomez, the first of the three big class action cases the justices will hear this term. In fact, when Gregory Garre of Latham & Watkins – who represents a marketing company that tried to end a Telephone Consumer Protection Act class action by offering the named plaintiff all of the statutory damages he was entitled to – broached a broad attack on class actions for benefiting only plaintiffs’ lawyers, Justice Elena Kagan shut him down.
(Reuters) – If nothing else, a new class action complaint against the daily fantasy sports sites FanDuel and DraftKings should convince everyone who doesn’t spend a good part of the day studying sports statistics that, contrary to the sites’ ubiquitous television ads, you will not suddenly become a sexually magnetic millionaire by beating your buddies at fantasy sports. According to the complaint, a small band of expert players wins almost all of the money the sites dish out. The other 90 or so percent of bettors – “fish,” in the parlance – are basically providing enough money in entry fees to keep FanDuel and DraftKings profitable despite payouts to the small number of winners.
(Reuters) – It would be a sad state of affairs, according to U.S. District Judge Colleen McMahon of Manhattan, if every mention of Islam in this country were deemed a political act – even silly advertisements promoting both tolerance and a movie about Islamic comedians called “The Muslims Are Coming!” Happily for Judge McMahon (and really, for anyone who can take a joke), she has the authority to inject some sense into public discourse. On Wednesday, she ruled New York City’s Metropolitan Transportation Authority must permit the movie’s production company, Very Qualified Productions, to run its advertisements at 144 subway stations throughout the city.
(Reuters) – What the U.S. Supreme Court took away from consumers in its pro-arbitration decisions in AT&T Mobility v. Concepcion and American Express v. Italian Colors, the Consumer Financial Protection Board intends to give back.
Can hundreds of class action lawyers be wrong?
Every day brings another clutch of filings against Volkswagen by clean diesel car owners who claim the automaker lied about their cars’ noxious emissions. Plaintiffs’ lawyers seem to regard the litigation against VW as a sure thing, thanks in no small part to the company’s own admissions. They’re assuming the case won’t be about whether VW is liable to car owners but about how much the company is going to have to pay.
(Reuters) – Volkswagen AG and its corporate offspring have been close-mouthed about revealing the law firms that will defend the automaker in U.S. class actions by owners of clean diesel vehicles. Kirkland & Ellis environmental partner Stuart Drake was copied on the Environmental Protection Agency’s Sept. 18 notice of violation to the company and the company confirmed Kirkland’s involvement to Bloomberg. But as the Am Law Daily has reported, Kirkland and VW haven’t said any more about the scope of Kirkland’s engagement. No lawyers have yet entered an appearance for the VW defendants at the Judicial Panel for Multidistrict Litigation, which will decide in December where the more than 200 class actions against the company will be consolidated.
(Reuters) – Has Dow Chemical inserted itself into the U.S. Supreme Court’s review of the Tyson Foods wage-and-hour class action as part of a sophisticated strategy to wipe out a $1.1 billion antitrust judgment against Dow? That’s the accusation in an amicus brief filed this week in the Tyson case by urethanes purchasers who beat Dow in a 2013 trial in Kansas federal court.