Alison Frankel

Motorola to 7th Circuit: Make Judge Posner follow the rules

By Alison Frankel
July 10, 2014

I didn’t think Motorola’s antitrust appeal at the 7th U.S. Court of Appeals could get any stranger. This, after all, is the billion-dollar case that prompted a bizarre showdown over international antitrust policy between the U.S. solicitor general and a three-judge appellate panel led by Richard Posner.

The last, best chance for besieged bank defendants

By Alison Frankel
July 10, 2014

Goldman Sachs has a little more than two months for a miracle to happen.

Otherwise, on Sept. 29, the bank will go to trial in federal court in Manhattan against the Federal Housing Finance Agency to defend claims that Goldman deceived Fannie Mae and Freddie Mac about the quality of the mortgage-backed securities it was peddling before the financial crash.

Is this the inside info that triggered Goldman’s MBS ‘big short’?

By Alison Frankel
July 9, 2014

It is an axiom of the financial crisis that Goldman Sachs realized before any of the other big banks that the mortgage-backed securities market was going to implode in 2007. Goldman dumped MBS and shorted the market, turning a profit in its mortgage department when every other major financial institution suffered record losses.

Early test of Delaware ‘loser pays’ bylaws looms in Biolase dispute

By Alison Frankel
July 8, 2014

(Reuters) – On Monday, a Delaware shareholder firm issued a press release urging shareholders of the dental laser company Biolase to get in touch if they’re concerned about allegations that board members leaked corporate financials, among other supposed shenanigans. You know what that means: Class action firms are circling the beleaguered company, looking for a reason to file a shareholder derivative suit accusing Biolase’s board of breaching its duties.

Health benefits for retired public workers: the next muni bond crisis?

By Alison Frankel
July 7, 2014

The Illinois Supreme Court set off some pre-holiday fireworks ruling Thursday that the state constitution protects health benefits for retired public workers — even though the constitution’s so-called pension protection provision does not specifically mention healthcare coverage.

When MDL judges go rogue

By Alison Frankel
July 3, 2014

Five years ago, the Judicial Panel on Multidistrict Litigation assigned Michael McCuskey, then chief judge of the federal district court in Urbana, Illinois, to oversee consolidated class action claims that the roofing company IKO Manufacturing misled customers about the quality of certain organic asphalt shingles. McCuskey accepted the assignment in December 2009, but just four months later, he informed lawyers for IKO and the purchasers that he was swamped with other cases. Before he’d done much of anything in the shingle litigation, McCuskey turned the case over to the only other judge in the courthouse, Harold Baker.

Judge Posner backs down (for now) in antitrust policy duel with U.S.

By Alison Frankel
July 2, 2014

It’s not often that Judge Richard Posner of the 7th U.S. Circuit Court of Appeals concedes that he might have been wrong. (Just ask U.S. Supreme Court Justice Antonin Scalia and his “Reading Law” co-author Bryan Garner, who have been engaged in a back-and-forth war of words with Posner since he first harshly criticized their research back in August 2012.)

SCOTUS Libor case, by itself, won’t revive antitrust claims

By Alison Frankel
July 1, 2014

Don’t get too excited about the news Monday that the U.S. Supreme Court has agreed to hear the appeal of bond investors whose antitrust claims against the global banks involved in the Libor-setting process were tossed last year.

New York’s (stalled) grab for jurisdiction over foreign businesses

By Alison Frankel
June 30, 2014

Should New York courts have the right to hear cases against international businesses with any operations in the state? That’s what the state’s top administrative judge asked for — and very nearly got — from the state legislature. The proposed changes to state laws died on June 20, the last day the state senate was in session. But according to the chair of the New York courts’ advisory committee on civil procedure, the law to reclaim jurisdiction over foreign corporations will probably be revived when the legislature returns to session, possibly as soon as this fall.

D.C. Circuit expands attorney-client shield for businesses

By Alison Frankel
June 27, 2014

U.S. District Judge James Gwin of Washington, D.C., created a huge stir last March when he ruled that documents from KBR’s internal investigation of government contract fraud were not protected by attorney-client privilege and must be disclosed to a whistleblower who sued KBR under the False Claims Act. Even though KBR’s in-house lawyers oversaw the investigation — which examined allegations that the company and a subcontractor inflated costs and accepted kickbacks related to military contracts in Iraq — Gwin said that the privilege didn’t apply because (among other things) KBR’s primary purpose in the investigation was to comply with regulatory requirements, not to obtain legal advice.