Delaware

  • March 28, 2024

    Chancery Tosses Mixmax Derivative Suit

    A stockholder who filed a derivative suit against two Mixmax Inc. directors without first notifying the company's board has failed to prove that a majority of the board was too compromised to respond to the shareholder's concerns, so the lawsuit must be dismissed, a Delaware Chancery Court judge ruled.

  • March 28, 2024

    Cannabis Drink Co. Ordered To Pay Directors' Legal Fees

    A Minnesota-based joint venture formed to make cannabis-infused health drinks must partially indemnify two directors it sued for breaches of fiduciary duty after the complaints against them were dismissed, Delaware's Court of Chancery ruled Thursday.

  • March 28, 2024

    Fruit Grower Cleared To Leave Ch. 11 With $43M Exit Loan

    California stone fruit producer Prima Wawona is set to wind down its packing and distribution division, hand ownership of the reorganized company to creditors and leave bankruptcy after a Delaware bankruptcy judge agreed to approve its Chapter 11 plan Thursday.

  • March 28, 2024

    Fees Awarded For 'Feeble' Milk Vitamin Eligibility Argument

    A Delaware federal judge has ordered ChromaDex Inc. and Dartmouth College to pay attorney fees to Elysium Health for making a "feeble" and failed argument defending their milk vitamin patents from an eligibility challenge, saying he's rarely been more confident that a suit was unreasonable.

  • March 28, 2024

    Pillsbury Ducks Malpractice Suit At 3rd Circ. Over Bankruptcy

    A Third Circuit panel on Thursday shot down a bid from a group of hotel investors to sue Pillsbury Winthrop Shaw Pittman LLP for malpractice, finding a Delaware bankruptcy court was right in denying the request sought months after a Chapter 11 plan had been finalized.

  • March 28, 2024

    Investors Strike $42.5M Deal In Brookfield-GGP Merger Suit

    Brookfield Property Partners LP has reached a tentative $42.5 million deal to bring an end to a yearslong battle with stockholders who alleged they were given misleading information about the global real estate company's 2018 acquisition of U.S. mall operator GGP Inc.

  • March 28, 2024

    3rd Circ. Says Missing Dates Can DQ Pa. Mail-In Votes

    A split Third Circuit panel ruled late Wednesday that Pennsylvania mail-in ballots returned with missing or incorrect dates on their outer envelope can be discarded, with the majority finding a Civil Rights Act prohibition on disqualifying voters based on "immaterial" paperwork errors applied only to voter registration, not the act of voting itself.

  • March 28, 2024

    Chancery Dismisses Carvana Shareholders' Stock Offer Suit

    Delaware's Court of Chancery has dismissed a derivative suit from stockholders of online used car retailer Carvana who sued the company's founders over a $600 million direct stock offering, finding that a two-person special litigation committee that the company created to investigate the matter had done its job properly.

  • March 28, 2024

    Ex-Paralegal's Jobless Pay Ruling Correct, Del. Justices Told

    Delaware opposes a former Morris James LLP paralegal's bid for the state's Supreme Court to revive his attempt to collect a year's worth of unemployment benefits, arguing a lower court correctly upheld denial of pay after he settled whistleblower claims against the firm.

  • March 28, 2024

    Another Senate Dem Comes Out Against 3rd Circ. Nominee

    A third Senate Democrat, Jacky Rosen of Nevada, has come out against Third Circuit nominee Adeel Mangi, who would be the first Muslim federal appellate judge if confirmed, thus putting his nomination in further peril.

  • March 28, 2024

    Bankman-Fried Gets 25 Years For 'Very Bad Bet' Of FTX Fraud

    FTX founder Sam Bankman-Fried was sentenced Thursday to 25 years in prison for stealing more than $11 billion from customers, investors and lenders of his now-collapsed cryptocurrency empire, with a Manhattan federal judge saying the infamous risk-taker "made a very bad bet about the likelihood of getting caught."

  • March 27, 2024

    Hunter Biden Judge Doubts Tax Charges Politically Motivated

    A California federal judge Wednesday appeared unpersuaded by Hunter Biden's claim that the special counsel's decision to file criminal tax charges after a plea deal collapsed was motivated by pressure from Republican lawmakers, remarking that "there really is no evidence to support that contention."

  • March 27, 2024

    DOJ, SEC Looking At Chemours After Internal Accounting Probe

    The Chemours Co. said on Wednesday that the U.S. Securities and Exchange Commission and the U.S. Department of Justice have launched a probe into the chemical company after an internal review revealed that former executives engaged in unethical accounting practices.

  • March 27, 2024

    Backers Of Trump-Tied SPAC Sue To Confirm Manager Purge

    Investors behind the sponsor of the special-purpose acquisition company that took Donald Trump's Truth Social public sued its managing member, seeking a declaration from the Delaware Chancery Court that they have validly removed him from his post and that he has no authority to act on their behalf.

  • March 27, 2024

    Yellow Corp. Pension Fund Liability To Be Decided In Ch. 11

    A Delaware bankruptcy judge on Wednesday denied the Pension Benefit Guaranty Corp.'s bid to take a dispute with Yellow Corp. over $7.8 billion in retirement fund withdrawal liability claims to arbitration, finding the dispute would be best resolved through the trucking firm's Chapter 11 claims allowance process.

  • March 27, 2024

    COVID Prompted Equity Plan Edit, Raytheon Tells Chancery

    Raytheon Technologies Corp. amended employee compensation plans in early 2020 to mitigate "head-spinning unprecedented volatility" from the COVID-19 pandemic, and a shareholder's allegations that directors acted in bad faith by failing to seek stockholder approval should be dismissed, the aerospace company told Delaware's Court of Chancery on Wednesday.

  • March 27, 2024

    Chancery Sides With Cannabis Company On Legal Fees Row

    A Delaware Court of Chancery judge at a Wednesday hearing gave Left Coast Ventures Inc. time to fulfill a court order requiring it to cover legal fees for three former directors of the cannabis company defending a merger-related suit, after a company attorney told the judge the money will be coming.

  • March 26, 2024

    SPAC 'Frenzy' Led To $1.6B Deal For Dog Treat Co., Suit Says

    Shareholders of a special-purpose acquisition company that merged with dog-treat box company BarkBox in a $1.6 billion deal have sued the executives and directors of both entities, alleging they breached their fiduciary duties in connection with what the complaint calls "an extreme example of the 'churn-and-burn' SPAC frenzy."

  • March 26, 2024

    FTX Says Millions In Ch. 11 Token Claims Should Be Zeroed

    Cryptocurrency exchange FTX Trading Ltd. argued in court Tuesday that a Delaware bankruptcy judge should estimate the claims of customers holding some digital tokens at a heavy discount for Chapter 11 purposes, including zeroing out hundreds of millions of dollars in token value.

  • March 26, 2024

    SPAC Investors Misled In $1.35B Stem Deal, Del. Suit Says

    A former stockholder of a blank-check company that merged with intelligent energy storage business Stem Inc. filed a proposed class action in Delaware's Court of Chancery Tuesday, alleging breaches of fiduciary duty and unjust enrichment in connection with the April 2021 merger.

  • March 26, 2024

    3rd Circ. Says EMS Transport Without Consent Is Med Mal

    A patient who was transported to a Pennsylvania hospital against his will was effectively making a medical malpractice claim against the emergency medical services technicians and needed to file a "certificate of merit" to back up such a claim, a split Third Circuit panel ruled Tuesday.

  • March 26, 2024

    Sony Ducks $500M PlayStation Patent Suit In Del.

    A Delaware federal court has sided with Sony in a $500 million patent infringement suit brought by Genuine Enabling Technology LLC over PlayStation consoles, marking a close to the case.

  • March 26, 2024

    Pot Co. Withholding Fees Despite Court Order, Chancery Told

    Three former directors of Left Coast Ventures Inc. say the cannabis company still hasn't advanced their legal defense fees for a merger-related lawsuit despite a court order to do so, and are now seeking help from Delaware's Court of Chancery to get the bills paid.

  • March 25, 2024

    Rivian's Brass Sued In Del. Over Vehicle Pricing Whiplash

    A shareholder of California-headquartered electric vehicle manufacturer Rivian Automotive Inc. has filed a derivative suit against the company's top brass in Delaware's Court of Chancery, alleging they made false and misleading statements concerning Rivian's financial model, including about production costs and pricing for its EV pickup truck and SUV.

  • March 25, 2024

    J&J Exec 'Shocked' Over Atty's Ties With Talc Plaintiffs

    Johnson & Johnson's vice president of litigation said on Monday he was "utterly shocked and appalled" upon learning an attorney who served as the company's outside counsel was working with its adversary Beasley Allen Law Firm and one of its attorneys in litigation over the alleged link between the company's talcum powder products and ovarian cancer.

Expert Analysis

  • 9th Circ. Ruling Expands The Horizons Of Debt Discharge

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    The Ninth Circuit Bankruptcy Appellate Panel’s recent ruling in RS Air v. NetJets demonstrates that creditors should not be quick to conclude that their recoveries are limited if a debtor commences bankruptcy and receives a discharge, and should instead consider other potential paths for recovery, like alter ego claims, say Dania Slim and Claire Wu at Pillsbury.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

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    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • Why Standing Analysis Is Key In Data Breach Mediation

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    Amid a growing wave of data breach class action litigation, recent legal developments show shifting criteria for Article III standing based on an increased risk of future identity theft, meaning parties must integrate assessments of standing into mediation discussions to substantiate their settlement demands in data breach class actions, says Abe Melamed at Signature Resolution.

  • Opinion

    Judicial Independence Needs Defense Amid Political Threats

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    Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.

  • How Life Sciences Cos. Can Prevent Securities Class Actions

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    Though the overall volume of securities fraud class actions has dipped in the last couple of years, life sciences companies remain a particularly popular target for these filings and should employ best practices to minimize risk, say Joni Jacobsen and Angela Liu at Dechert.

  • How Law Firms Can Use Account-Based Marketing Strategies

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    Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.

  • Navigating Over-The-Counter Product Ads After FTC Warning

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    Attorneys at Hunton examine advertising substantiation requirements under both the Federal Trade Commission Act and Lanham Act, following recent FTC letters informing hundreds of companies that over-the-counter product marketing claims must be corroborated by scientific evidence.

  • Strategic Succession Planning At Law Firms Is Crucial

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    Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.

  • Maximizing Law Firm Profitability In Uncertain Times

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    As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.

  • FLSA Ruling Highlights Time Compensability Under State Law

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    While the Third Circuit's August decision in Tyger v. Precision Drilling endorsed the prevailing standard among federal courts regarding time compensability under the Fair Labor Standards Act, it also serves as a reminder that state laws will often find a broader range of activities to be compensable, say Ryan Warden and Craig Long at White and Williams.

  • What UCC Article 12 Adoption Means For Digital Assets

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    Until it is widely adopted, both owners of digital assets and their secured lenders will need to exercise caution in jurisdictions that have adopted Uniform Commercial Code Article 12, and care will need to be taken when creating, transferring and managing digital assets to comply with its requirements, say Margo Tank and David Whitaker at DLA Piper.

  • USW Ruling Highlights Successor Liability In Bankruptcy Sale

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    A Delaware federal court's recent decision in United Steelworkers v. Braeburn is important for potential asset purchasers in Section 363 bankruptcy sales as it found the purchaser was subject to obligations under the National Labor Relations Act notwithstanding language in the sale approval order transferring the debtor's assets free and clear of successor liability, say attorneys at Arnold & Porter.

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • 5 Takeaways From Bellwether AI Copyright Case

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    A Delaware federal court's ruling last week in Thomson Reuters v. ROSS is the first summary judgment ruling regarding fair use of copyrighted material to train generative artificial intelligence models and provides an early glimpse of how an appeals court judge views key generative AI copyright issues, says Michael Justus at Katten.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

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