Tag Archives: Settlement

Judge Pauley Orders Sprint and Regulator to Provide Details on Proposed Settlement

In an order yesterday, Judge Pauley rejected the joint request of the Consumer Financial Protection Bureau and Sprint to move forward on court approval of a $50 million settlement of the regulator’s investigation into the telecom company.  The parties had submitted a proposed one-sentence joint motion for approval of a final judgment and settlement, and … Continue Reading

Judge Rakoff Questions Second Circuit While Reluctantly Approving SEC-Citi Settlement

In an opinion today, Judge Rakoff, following a remand from the Second Circuit (see our post here), relucutantly approved the $285 million SEC-Citibank settlement that he had previously rejected and that involved no admission of wrongdoing. Judge Rakoff offered a few criticisms of the Second Circuit’s decision, even as he concluded that it compelled the … Continue Reading

Judge Marrero Approves $614 Million SAC Capital Settlement With SEC in Light of Second Circuit Ruling in Citi Case

As expected, the Second Circuit’s decision in a pending appeal involving Citibank paved the way for Judge Marrero to approve, in an opinion today, the SEC’s proposed $614 million settlement with SAC Capital. Judge Marrero initially expressed concern about the settlement being on a “neither-admit-nor-deny” basis, but, since then, a jury found former SAC Capital … Continue Reading

Judge Scheindlin Rejects Proposed Settlement of Water Contamination Suit Against Citgo on Fairness Grounds

In an opinion issued yesterday, Judge Scheindlin rejected a proposed settlement between the New Jersey Department of Enviornmental Protection and oil company Citgo over claims related to the potential contamination of water supplies with a kind of gasoline additive known as MTBE.  The non-settling defendants objected to the proposed $23 million settlement on the grounds … Continue Reading

Donziger Moves to Block Settlement Between Patton Boggs and Chevron

Last night, the attorney Steven Donziger and his Ecuadorian clients moved to block a $15 million settlement between Patton Boggs and Chevron.  Judge Kaplan ruled in March that Donziger fraudulently secured a multi-billion dollar judgment against Chevron relating to oil pollution in Ecuador.  Patton Boggs had previously represented the Ecuadorian plaintiffs.  The motion argues that … Continue Reading

Judge Forrest Rejects Securities Class Action Settlement Because “Settlement Class” Failed Certification Standards

In an opinion yesterday, Judge Forrest rejected a proposed securities class action settlement in which the settlement class was defined identically to a class that she had earlier ruled could not be certified. The earlier certification denial was based in part on the plaintiffs’ failure to show class-wide reliance under the “fraud-on-the-market” presumption. The parties … Continue Reading

Judge Marrero Conditions Approval of $614 Million SAC Capital Settlement on Pending Second Circuit Ruling

In an opinion filed today, Judge Marrero conditionally approved a $614 million insider trading settlement between the SEC and SAC Capital — the largest insider trading settlement ever (see our prior post).  The approval is contingent on a ruling from the Second Circuit that raises similar questions of whether and when it is appropriate for … Continue Reading

Judge Castel Considers Delaying Approval of Bank of America Derivative Settlement Pending Securities Class Action Trial

In a case we have followed closely, the parties to the derivative claims against Bank of America’s directors and officers relating to the Merrill Lynch and Countrywide acquisitions told Judge Castel today that they had executed a definitive settlement agreement, presumably reflecting the $20 million agreement in principle disclosed in April. In an interesting twist, … Continue Reading

Judge Kaplan Requires Former Lehman Officers to Disclose Net Worth Information Before Approving Settlement

In an order dated Thursday, Judge Kaplan required, as a condition of approving a $90 million settlement covered entirely by D&O insurance, that five former Lehman officers (including former CEO Richard Fuld) disclose in camera certain financial information about their net worth.  The information had already been compiled and disclosed to former Southern District Judge John Martin, who … Continue Reading

Bank of America Derivative Settlement Challenged by Lawyers in Parallel Delaware Action

The proposed settlement of a derivative suit before Judge Castel concerning Bank of America’s acquisitions of Countrywide and Merrill Lynch is being challenged by lawyers in a parallel case in Delaware state court. The parties to the federal case told Judge Castel on April 12 that they had settled. The next day, the Delaware lawyers … Continue Reading
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