In an opinion dated yesterday, Judge Castel dismissed a suit challenging the proposed merger between a Chilean bank (Itau) and a Brazlian bank (CorpBanca) because the plaintiff, Cartica, was not a “purchaser” or “seller” in relation to the alleged fraud.  It was merely a stockholder. In doing so, he took one side of an issue that has divided the lower courts:
Continue Reading Judge Castel Rules 10(b) Claims Are Limited to Buyers and Sellers, Even in Injunction Cases

In an opinion dated yesterday, Judge Hellerstein ruled that a service called “TVEyes,” which “monitors and records all content broadcast by more than 1,400 television and radio stations twenty-four hours per day, seven days per week, and transforms the content into a searchable database for its subscribers,” was “fair use” under the copyright laws, and thus largely granted summary judgment against the plaintiff, Fox News. The decision was based on the fact that the service is “transformative”:
Continue Reading Judge Hellerstein Rules That Searchable TV Database Service is “Fair Use”

In an opinion today, Judge Cote largely denied motions to dismiss from various banks and others accused of colluding to maintain control of the market for credit default swaps. According to the complaint, a joint venture led by Citadel tried to establish a clearinghouse called CMDX that would potentially threaten the defendants’ market dominance, and the defendants responded by conspiring to block critical market participants, ISDA and Markit, from granting licenses that would be necessary for the clearinghouse to function. Judge Cote rejected the defendants’ arguments that the pleadings were not detailed enough to suggest a conspiracy:
Continue Reading Judge Cote Allows Credit Default Swap Antitrust Action to Proceed

In an opinion dated Friday, Judge Cote granted partial summary judgment to the FHFA (the conservator for the two Government-Sponsored Enterprises, or “GSEs,” Fannie Mae and Freddie Mac), dismissing various banks’ affirmative defense that the GSEs had knowledge that the mortgage securities at issue were defective. The essence of her ruling was that, while the GSEs may have had generalized knowledge of problems with mortgage origination, there was no evidence that they had specific knowledge that the representations at issue were false:
Continue Reading Judge Cote Rejects, As a Matter of Law, Banks’ Defense That FHFA Knew Mortgage Securities Were Defective

This morning, Judge Cote issued a written decision reflecting an earlier, oral order to deny Apple’s motion to stay the work of an external monitor pending appeal of the case in which Apple was found liable for antitrust violations relating to the sale of e-books. Judge Cote found that Apple had largely waived arguments about the appointment of the monitor:
Continue Reading In Written Decision Upholding Apple Antitrust Monitor, Judge Cote Urges “Reset” of Relations

In briefing completed this evening, Apple moved to stay the portion of the injunction Judge Cote imposed in the e-books price-fixing case relating to an external antitrust monitor that Apple contends is improperly acting as an adversary in violation of the Constitution’s separation of powers and the federal rules.  (We covered Apple’s earlier objection to the monitor here.  Prior posts on the case, proving more background, are here.) Apple’s moving brief argues:
Continue Reading Apple Seeks to Stay The Work of “Adversarial” Antitrust Monitor Pending E-Books Appeal