In an opinion Friday, Judge Daniels dismissed an ERISA case brought by JP Morgan employees who invested in a company retirement fund of company stock and who allege that the company concealed multibillion dollar trading losses made by the so-called “London Whale.” Judge Daniels had dismissed the case earlier (see here), but it was revived following the Supreme Court’s decision in 2014 in Fifth Third Bancorp v. Dudenhoeffer, which announced a new legal standard for these types of cases.
Continue Reading Judge Daniels Dismisses ERISA Suit Against JP Morgan Over “London Whale”
Judge Forrest Dismisses Zinc Antitrust Case; Chides Lawyers for “Group Pleading”
In an opinion today, Judge Forrest dismissed (with a limited right to replead) claims that various banks and their affiliates conspired to monopolize and inflate prices in the market for zinc stored in warehouses licensed by the London Metal Exchange. The case is similar to the aluminum antitrust cases before Judge Forrest (covered here). She found (among other things) that the complaint alleged, at most, parallel conduct.
Continue Reading Judge Forrest Dismisses Zinc Antitrust Case; Chides Lawyers for “Group Pleading”
Parties File Pretrial Briefs in Antitrust Challenge to Baseball’s “Territorial” Broadcast Structure
The plaintiffs and Major League Baseball yesterday exchanged briefs in anticipation of a January 18 trial before Judge Scheindlin in a case alleging it is anticompetitive for Major League Baseball to divide the market for broadcasting games into various territories exclusive to the local teams, while allowing the broadcast of out-of-market games only as part of a allegedly overpriced all-or-nothing packages. (A companion case relating to National Hockey League games was recently settled.)
Continue Reading Parties File Pretrial Briefs in Antitrust Challenge to Baseball’s “Territorial” Broadcast Structure
Judge Rakoff : “Conscious Avoidance” of Source of Stock Tip Can Result in Liability, Even After Newman Decision
In an opinion yesterday, Judge Rakoff denied a summary judgment motion brought by two SEC defendants who traded on a tip that IBM was about to acquire a company called SPSS. The tip passed from a lawyer working on the deal (Dallas) to his friend (Martin), then to Martin’s roommate (Conradt) and, ultimately, to the two defendants.
The SEC ‘s theory was that Martin and Dallas had an understanding that the information would not be used for trading, and that Martin breached that duty by telling his roommate Conradt in exchange for various miscellaneous benefits from Conradt, such as his taking the lead on dealing with issues at their apartment. The defendants acted with the required knowledge, according to the SEC, because they consciously avoided learning anything about the source of the tip.Continue Reading Judge Rakoff : “Conscious Avoidance” of Source of Stock Tip Can Result in Liability, Even After Newman Decision
NFL DeflateGate Reply: Policy of “Fines” for Equipment Violations Is Not Applicable to Footballs and Doesn’t Foreclose Suspensions
The NFL filed its reply brief in the DeflateGate appeal yesterday. As we previously reported, Tom Brady’s opposition brief focused on the fact that the NFL’s written policies for players state that first-time equipment violations will result in fines, which, he argued, would give no notice that a suspension was possible. The NFL’s reply brief counters that Tom Brady has already conceded the policy is inapplicable:
Continue Reading NFL DeflateGate Reply: Policy of “Fines” for Equipment Violations Is Not Applicable to Footballs and Doesn’t Foreclose Suspensions
Judge Crotty: People Magazine Editor Alleging Race Discrimination Cannot Get Discovery About What Stories People Chose to Publish
In a decision yesterday, Judge Crotty denied a motion by a former People magazine editor, who claims that she was fired based on her race and that People magazine was only interested “in printing [articles] concerning . . . ‘White middle-class suburbia,’” to compel discovery concerning what stories People chose to publish. He found the requests were “burdensome and disproportionate”:
Continue Reading Judge Crotty: People Magazine Editor Alleging Race Discrimination Cannot Get Discovery About What Stories People Chose to Publish
Tom Brady’s Deflategate Appeal Brief Focuses on Bargained-For Policy that First-Time Equipment Violations Would Result Only in Fines
Patriots quarterback Tom Brady and the NFL Player’s Association filed their appeal brief yesterday with the Second Circuit, responding to the initial brief filed by the NFL. The brief from Brady and the Player’s Association argues that there was a bargained-for policy for first-time equipment violations to result only in fines, and that Judge Berman correctly ruled that imposing a four-game suspension on Tom Brady violated that policy and failed to give Brady prior notice of the possibility of a suspension:
Continue Reading Tom Brady’s Deflategate Appeal Brief Focuses on Bargained-For Policy that First-Time Equipment Violations Would Result Only in Fines
Judge Gardephe Certifies for Appeal Issue of Whether SEC Can Subpoena Congressional Committee
Judge Gardephe yesterday certified for interlocutory appeal his earlier ruling (covered here) allowing the SEC to obtain some (but not all) categories of information sought by a subpoena to a congressional committee in connection with an investigation of the STOCK Act, which essentially extends the insider trading laws to Congress. He found that an
Judge Swain: CPLR “Leave and Mail” Service Insufficient for Nonresidents Where Claims Arise Outside New York
In an opinion yesterday, Judge Swain ruled that “leave and mail” service under the CPLR was inconsistent with due process when used on a nonresident, at least where the case arises outside New York. The petitioner had sought to confirm an arbitration award against an Indian citizen who lives abroad but who apparently rents an apartment in the Time Warner Center in Manhattan. While the respondent was in town, the petitioner left a copy at the Time Warner Center and mailed a second copy. Judge Swain found that the respondent would have to be personally served while here to satisfy due process:
Continue Reading Judge Swain: CPLR “Leave and Mail” Service Insufficient for Nonresidents Where Claims Arise Outside New York
Judge Forrest: Defendant’s “Unconditional Surrender” to Named Plaintiff Moots Class Action
In an opinion yesterday, Judge Forrest allowed a defendant in a putative class action concerning debt collection to submit to a judgment in the plaintiff’s favor, and moot the entire case:
Defendant has now offered judgment referencing “unconditional surrender” and affording complete relief to plaintiff. Accordingly, judgment shall be entered against defendant under Rule 68.