The Delaware Chancery Court this past week saw disputes over allegedly fabricated board approvals at a telecom infrastructure startup, insider trading and child safety at Roblox Corp. and ownership of artificial intelligence technology used in legal proceedings.
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TOP NEWS

Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court this past week saw disputes over allegedly fabricated board approvals at a telecom infrastructure startup, insider trading and child safety at Roblox Corp. and ownership of artificial intelligence technology used in legal proceedings.

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Amazon Halts 21 Air Cargo Flights, Faces New Crash Suit

By Linda Chiem

Amazon has suspended operations with cargo carrier partner 21 Air LLC, a week after one of its planes overran a runway at Miami International Airport and plowed into vehicles, killing five people, as the company faces another negligence and wrongful death lawsuit over the wreck.

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Mobileum Ex-CFO Seeks More Than $2M In Legal Fees

By Jarek Rutz

Former Mobileum Inc. Chief Financial Officer Andrew Warner has sued the company in the Delaware Chancery Court, seeking more than $2 million in legal fees tied to a federal criminal case and accusing Mobileum of reversing its position after repeatedly recognizing his right to have those expenses advanced.

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INSURANCE

Aetna Tells 5th Circ. DOL Can't Block Aramark Suit Arbitration

By Kellie Mejdrich

Aetna Life Insurance Co. urged the Fifth Circuit on Monday against the U.S. Department of Labor's argument that uniform company Aramark Services Inc.'s health claims dispute with the insurer should remain in court, arguing a Texas judge erred in declining to enforce the parties' binding arbitration agreement.

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State Farm Spared Treble Damages In Policyholders' $38M Win

By Danielle Ferguson

A Washington federal judge on Monday said policyholders failed to show they were entitled to enhanced damages after the court determined State Farm shorted them on payouts for totaled vehicles, finding class members had already been fully compensated by the $38 million in actual damages they were already awarded.

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5th Circ. Won't Hear 'My 600-lb Life' Reality Show Dispute

By Hope Patti

A split Fifth Circuit refused to entertain legal questions about whether "My 600-lb Life" counts as reality television in a dispute over coverage for underlying suits brought by the show's participants, saying in a published opinion Monday that the show's producers forfeited the argument on appeal.

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5th Circ. Frees Ericsson Insurers In Terrorism Funding Row

By Spencer Brewer

The Fifth Circuit found that multiple insurers have no duty to defend Ericsson Inc. against claims the company funded foreign terrorist organizations, saying that the suit brought by two groups of American victims of terrorist attacks alleged the company committed grave harm.

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HEALTHCARE & LIFE SCIENCES

Nektar 'Desperate' To Develop Rezpeg, Lilly Exec Tells Jury

By Bonnie Eslinger

An Eli Lilly executive told a California federal jury on Monday in Nektar's $1 billion breach of contract suit against the pharma giant that his handwritten note from a meeting with Eli Lilly's CEO about Nektar being "desperate" was about the struggling company's need for its autoimmune-disease drug Rezpeg to succeed.

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INTELLECTUAL PROPERTY

Fed. Circ. Saves Broadcom IP Suit, Says License Was Intact

By Theresa Schliep

The Federal Circuit on Monday breathed new life into a company's patent and copyright infringement case against Broadcom Inc., saying in a precedential opinion that the plaintiff company didn't lose its right to bring the action when it switched its business to intellectual property enforcement.

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MEDIA & ENTERTAINMENT

Cumulus Tells 2nd Circ. Even Brief Stay Of Nielsen Order Is Bad

By Nadia Dreid

Cumulus Media says it's going to be irreparably harmed if the Second Circuit doesn't lift the administrative stay it put in place stopping a preliminary injunction that Nielsen is challenging for the second time from going into effect while the appellate court looks at the matter.

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SPORTS & BETTING

Senators Draw Battle Lines Over Sweeping College Sports Bill

By Alex Lawson

U.S. senators Monday made public statements on their positions either for or against a bill aimed at comprehensively regulating college sports, forecasting a bitter fight over the bill's passage in the upper chamber.

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Brief

Clippers Won't Take NBA To Court Over Salary Cap Sanctions

By Alex Lawson

Nearly two weeks after lawyers for the Los Angeles Clippers vowed to explore "every legal remedy" to challenge the NBA's sanctions against the franchise for violating salary cap rules, the team's owner has changed course and will comply with the league's decision.

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EMPLOYMENT

Colo. Justices Won't Review $3.36M Verdict Against Gas Co.

By Zach Dupont

The Colorado Supreme Court unanimously declined on Monday to hear the case of a natural gas marketing company appealing a $3.36 million jury verdict in favor of its former trading director who accused the company of failing to pay out a bonus related to his trades.

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SECURITIES & WHITE COLLAR

Desktop Metal Noteholders Hit Nano With $115M Fraud Suit

By Emlyn Cameron

Twenty investment funds sued digital manufacturing company Nano Dimension Ltd. and another entity, alleging the two committed fraud when Nano merged with 3D printing defense contractor Desktop Metal and pushed the subsidiary into bankruptcy to dodge $115 million in debt.

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Hyliion Investors End Suit Over Data Center Deal

By Isaac Monterose

A proposed class of Hyliion Holdings Corp. investors has voluntarily dropped its suit against the linear generators company, which was accused in Texas federal court of overhyping a data center partnership with an artificial intelligence infrastructure company.

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COMPETITION

SpaceXAI Drops Apple In Antitrust Claims For OpenAI Deal

By Spencer Brewer

SpaceXAI on Monday dropped its claims that Apple breached antitrust laws by signing a deal with OpenAI to integrate ChatGPT into the iPhone but kept its claims against OpenAI Foundation intact.

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Missing Agreement Sinks Conn. IT Firm's No-Poach Suit

By Brian Steele

An information technology company failed to prove the existence of an oral agreement that a subcontractor would not pursue its clients, defeating its claims over the loss of a municipal contract with the town of Hamden, Connecticut, a state court judge ruled.

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RETAIL & E-COMMERCE

Ex-NFL Player's Former Fiancée Sued Over Lash Salon Rift

By George Woolston

Former business partners have accused the ex-fiancée of retired NFL wide receiver Victor Cruz in New Jersey federal court of self-dealing and using their businesses' bank accounts to subsidize other businesses she ran.

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CANNABIS

Mich. Cannabis Regulators Seek Exit From Buyout Suit

By Jonathan Capriel

Michigan cannabis regulators are asking a federal court to dismiss an entrepreneur's lawsuit that claims they coordinated with JARS Holdings to push him out of the cannabis business while smearing his professional reputation, arguing that JARS, not the agency, is the source of his harm.

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LEGAL INDUSTRY

Big Biz Coalition Backs Litigation Funding Disclosure Rule

By Ryan Boysen

Big U.S. businesses and insurers like Amazon, Anthropic, Chubb and Walmart asked the federal judiciary on Monday to tighten disclosure requirements for litigation finance, claiming the lack of guardrails allows funders to operate "in the shadows."

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Indiana Atty Hit With $10K Sanction Over False Citations

By Andrea Keckley

An Indiana federal judge on Friday adopted a magistrate judge's recommendation to sanction a local attorney $10,000 after finding that five briefs in a consumer credit case included citations to nonexistent cases.

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Jackson Lewis Removes Ex-Atty's Bias Suit To Federal Court

By Patrick Hoff

Jackson Lewis PC has moved a former associate's suit accusing the firm of refusing to accommodate her temporary work restrictions following her medical leave to California federal court, saying state court wasn't the right venue for dispute.

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Bove Rejects Recusal Bid Tied To DOJ Whistleblower Claims

By Courtney Bublé

U.S. Circuit Judge Emil Bove declined Monday to recuse himself in a Third Circuit immigration case, saying the attorneys for the petitioner are "recycling a failed pre-confirmation political smear" on him.

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State Farm Attorney Sanctioned $999.99 For AI Hallucinations

By Jonathan Capriel

An attorney for State Farm who filed several motions citing nonexistent cases and fabricated quotes generated by AI software must pay a $999.99 sanction, a Los Angeles judge ruled, an amount one cent below the threshold that would have triggered a mandatory notice to the State Bar of California under state law.

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Brief

Ex-Moses & Singer Partner Gets 10 Months For Tax Crimes

By Craig Clough

A Connecticut federal judge Monday sentenced a former Moses & Singer LLP partner to 10 months of imprisonment and ordered him to pay more than $3.1 million for failing to file personal income tax returns, the U.S. attorney's office announced.

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LAW FIRMS IN TODAY'S NEWS

Akerman LLP

Alston & Bird

Axinn

Badgley Mullins

Bailey & Glasser

Brown Pruitt

Cantey Hanger

Carta McAlister

Condon Tobin

Cummins & White

Fish & Richardson

Gibson Dunn

Gillam Smith

Haynes Boone

Hicks Thomas

Hodgson Russ

Hogan Lovells

Jackson Lewis PC

Kirkland & Ellis

Lanier Law Firm

Law Offices of Daniel R. Whitmore

Lynn Pinker

McCarter & English

McKool Smith

Morris Nichols

Moses & Singer

Musick Peeler

Norton Rose

O'Melveny & Myers

Otteson Shapiro

Paganelli Law Group

Patterson Belknap

Quinn Emanuel

Robinson & Cole

Rosen Law Firm PA

Thompson Hine

Tollefson Bradley

Wachtell Lipton

Wheeler Trigg

Williams & Connolly

Willinger Willinger

Womble Bond

COMPANIES IN TODAY'S NEWS

21 Air LLC

Aetna Inc.

Amazon.com Inc.

Anthropic PBC

Apple Inc.

Aramark

Atlas Air Inc.

Atlas Energy LP

Broadcom Inc.

CVS Health Corp.

ClearList LLC

Compass Minerals International, Inc.

Concord

Concord Energy LLC

Cumulus Media Inc.

Desktop Metal Inc.

Eli Lilly & Co.

Experian PLC

Herzog

International Legal Finance Association

Lawyers for Civil Justice

Liberty Mutual Insurance Group

Los Angeles Clippers

Microsoft Corp.

Mobileum Inc.

Nano Dimension Ltd.

National Collegiate Athletic Association

Nektar Therapeutics

Nielsen Holdings PLC

OpenAI OpCo LLC

Philadelphia Consolidated Holding Corp.

Rex Lumber LLC

Roblox Corp.

Spectrum Management Holding Co.

State Bar of California

State Farm Mutual Automobile Insurance Co.

Target Corp.

Telefonaktiebolaget LM Ericsson

Tesla Inc.

The Cigna Group

The Travelers Cos. Inc.

Thomson Reuters Corp.

Toyota Motor Corp.

U.S. Chamber of Commerce

Walmart Inc.

X Corp.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Colorado Supreme Court

Committee on Foreign Investment in the United States

Delaware Court of Chancery

Federal Aviation Administration

Miami International Airport

National Transportation Safety Board

Small Business Administration

U.S. Attorney's Office for the District of Connecticut

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Homeland Security

U.S. Department of Justice

U.S. Department of Labor

U.S. District & Bankruptcy Courts of Southern District of Texas

U.S. District Court for the Central District of California

U.S. District Court for the District of Connecticut

U.S. District Court for the District of New Jersey

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Northern District of California

U.S. District Court for the Northern District of Texas

U.S. District Court for the Southern District of New York

U.S. District Court for the Western District of Texas

U.S. District Court for the Western District of Washington

U.S. Supreme Court

United States District Court for the Southern District of Indiana