(Reuters) – Lawyers for three bondholder groups that have not reached settlements with Argentina sent letters this week to the U.S. Justice Department, arguing that the U.S. government should not reenter long-running litigation over defaulted Argentine sovereign debt.
(Reuters) – U.S. Supreme Court Justice Anthony Kennedy used some quite definitive language Tuesday in his opinion for the six justices in the majority in Tyson v. Bouaphakeo, the wage-and-hour case that asked the court to resolve two big questions about class action litigation.
(Reuters) – An Indiana state law immunizing gun manufacturers and dealers from lawsuits by victims of illegal shootings does not offer blanket protection for defendants that put weapons in the hands of criminals, according to a March 17 opinion by an intermediate state appeals court.
(Reuters) – When all else fails in litigation – as it pretty much has for Dov Charney, the ousted CEO of American Apparel – the last resort is to sue your own lawyers.
(Reuters) – Under ordinary circumstances, according to former Watergate investigator Richard Davis, it’s not a problem for a single law firm to represent private equity investors and their portfolio companies simultaneously. That makes sense: When the portfolio companies do well, their private equity owners make money. But there is an important exception. If a portfolio company becomes insolvent, its creditors – typically noteholders – take precedence over the private equity sponsors, who are equity holders. Law firms have to be very, very careful when insolvency looms, according to Davis, and they attempt to represent both the private equity interests and the interests of the subsidiary. If those interests diverge, the law firm is conflicted.
(Reuters) – A juxtaposition of events this week raises tantalizing questions about the course of shareholder litigation against Volkswagen in Europe.
(Reuters) – Remember Robert Crowe, the Nelson Mullins partner and pre-eminent Democratic lobbyist who was targeted in a Securities and Exchange Commission fraud suit in January? The SEC, as I reported at the time, claimed Crowe felt so much pressure to hold on to State Street as a client that he illicitly steered $20,000 in campaign contributions to an Ohio official who controlled a contract State Street wanted to be awarded. The SEC characterized the arrangement as a pay-to-play scheme, accusing Crowe of securities fraud and aiding and abetting State Street’s fraud.
By Alison Frankel and Jessica Dye
(Reuters) – A major defendant in the 100,000-case pelvic mesh litigation has subpoenaed the mid-sized Houston law firm AkinMears, as well as several smaller law firms and a company that sells personal-injury claims, seeking documents and testimony related to AkinMears’ acquisition last summer of the smaller firms’ mass torts practices.
(Reuters) – It’s been just about a year since the U.S. Supreme Court said in Omnicare v. Laborers District Council Construction Industry that securities issuers can be liable to investors even if their misstatements are couched as opinions. But in a ruling Friday in In re Sanofi, the 2nd U.S. Circuit Court of Appeals held that despite Omnicare, issuers don’t have to tell investors about important information that may contradict the opinions they are expressing.