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Sep 30, 2014

JPMorgan to face U.S. class action in $10 billion MBS case

NEW YORK (Reuters) – A federal judge on Tuesday said JPMorgan Chase & Co must face a class action lawsuit by investors who claimed the largest U.S. bank misled them about the safety of $10 billion of mortgage-backed securities it sold before the financial crisis.

U.S. District Judge Paul Oetken in Manhattan certified a class action as to JPMorgan’s liability but not as to damages, saying it was unclear how investors could value the certificates they bought, given how the market was “not particularly liquid.” He said the plaintiffs could try again to certify a class on damages.

Sep 30, 2014

Novartis ordered to face U.S. lawsuit over doctor kickbacks

NEW YORK (Reuters) – A federal judge said Novartis AG must face a U.S. government lawsuit accusing the Swiss drugmaker of paying multimillion-dollar kickbacks, including a $9,750 dinner for three at a Japanese restaurant, to induce doctors to prescribe its drugs.

U.S. District Judge Paul Gardephe in Manhattan on Tuesday let the government pursue its entire lawsuit, brought under the federal False Claims Act. He also said New York can pursue most of its state law claims in a related lawsuit.

Sep 30, 2014

Dow Chemical fails to overturn $1.06 billion price-fixing award

Sept 30 (Reuters) – A federal appeals court rejected Dow
Chemical Co’s bid to throw out a $1.06 billion verdict
imposed after customers accused it of conspiring to artificially
inflate polyurethane prices, saying enough evidence supported
the class action award.

The 10th U.S. Circuit Court of Appeals in Denver on Monday
said new U.S. Supreme Court limits on class actions did not
require Dow customers to sue individually, even if some could
have avoided price hikes by negotiating or using rival products.

Sep 30, 2014

Actor Tracy Morgan was not wearing seatbelt in crash, Wal-Mart says

By Jonathan Stempel

(Reuters) – Actor and comedian Tracy Morgan and others in his limousine were not wearing seat belts when their vehicle was struck by a Wal-Mart truck in a June highway accident, the retailer said on Monday.

Wal-Mart Stores Inc made its contention in a court filing responding to a lawsuit by Morgan and three other plaintiffs over the crash on the New Jersey Turnpike.

Sep 29, 2014

Actor Tracy Morgan wasn’t wearing seatbelt in June crash, Wal-Mart says

By Jonathan Stempel

(Reuters) – Actor and comedian Tracy Morgan and others in his limousine were not wearing seat belts when their vehicle was struck by a Wal-Mart truck in a June highway accident, the retailer said on Monday.

Wal-Mart Stores Inc made its contention in a court filing responding to a lawsuit by Morgan and three other plaintiffs over the crash on the New Jersey Turnpike.

Sep 29, 2014

Grooveshark infringed record labels’ copyrights: U.S. judge

NEW YORK (Reuters) – The online streaming service Grooveshark suffered a legal defeat on Monday when a U.S. judge found its operators liable to nine record companies for having directed employees to upload thousands of copyrighted songs without permission.

The judge held Grooveshark’s parent company, Escape Media Group Inc, and its founders Samuel Tarantino and Joshua Greenberg, responsible for the illegal uploads of 5,977 songs by musicians such as Eminem, Green Day, Jay-Z and Madonna.

Sep 29, 2014

Avon wins dismissal of lawsuit over China bribery

NEW YORK (Reuters) – Avon Products Inc (AVP.N: Quote, Profile, Research, Stock Buzz) on Monday won the dismissal of a securities fraud lawsuit accusing the cosmetics company of concealing its inability to stop workers from bribing officials in China to win business there.

U.S. District Judge Paul Gardephe in Manhattan found no showing that Avon, former Chief Executive Andrea Jung and former Chief Financial Strategy Officer Charles Cramb intended from 2006 to 2011 to deceive shareholders about the company’s knowledge of alleged bribery, such as through corrupt “dinner and karaoke” events, and dependence on bribes to boost sales.

Sep 29, 2014

Judge rejects settlement over Abercrombie & Fitch CEO pay

Sept 29 (Reuters) – A federal judge rejected a settlement of
a lawsuit challenging longtime Abercrombie & Fitch Co
Chief Executive Michael Jeffries’ pay, saying it offered little
benefit to shareholders despite “serious” allegations of
wrongdoing.

The Aug. 29 settlement was meant to resolve claims that
Abercrombie should not have awarded Jeffries more than $140
million since 2007 and let him rack up “massive” travel
expenses, amid persistent sales declines and an underperforming
stock relative to other clothing chains.

Sep 26, 2014

CVS’ Caremark unit settles U.S. false claims allegations

Sept 26 (Reuters) – Caremark LLC, a unit of CVS Health Corp
, will pay $6 million to settle U.S. allegations that it
knowingly failed to reimburse Medicaid for prescription drug
costs paid on behalf of patients who were also covered by
private health plans it administered.

The settlement announced on Friday by the U.S. Department of
Justice resolves claims that Caremark, a pharmacy benefits
management company, violated the federal False Claims Act by
improperly processing claims of such “dual eligible” patients.

Sep 26, 2014

Casino mogul Wynn accuses short-seller Chanos of slander in lawsuit

Sept 26 (Reuters) – Steve Wynn, the billionaire casino
mogul, has filed a lawsuit accusing prominent short-seller Jim
Chanos of slander over an alleged statement that Wynn violated a
U.S. anti-bribery law.

Wynn, 72, and his company Wynn Resorts Ltd filed
suit against Chanos, founder of New York-based hedge fund
Kynikos Associates LP, in federal court in San Francisco.

    • About Jonathan

      "I cover legal and regulatory matters, and am based in New York. I have covered banking, finance, Warren Buffett and corporate bonds."
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