In an opinion Monday, Judge McMahon denied a motion by Blackberry and certain former executives for summary judgement in a securities class action. In the same ruling, she denied Blackberry’s motion to strike the plaintiffs’ Rule 56.1 statement, which allegedly contained improper legal arguments instead of factual responses.  Judge McMahon criticized the motion as “pointless”

In an opinion yesterday, Judge McMahon vacated the Purdue Pharma bankruptcy settlement because she found that the bankruptcy court lacked authority to issue releases in favor of the Sackler family.  (See our previous coverage here.) The family members had “offered to contribute toward a settlement, but if—and only if—every member of the family could ‘achieve global peace’ from all civil (not criminal) litigation, including litigation by Purdue to claw back the money that had been taken out of the corporation.”

But Judge McMahon concluded that there was no authority in the bankruptcy law for those releases. This is an issue that has been the subject of “long-standing conflict among the Circuits that have ruled on the question,” with no clear answer yet from the Second Circuit.

Among the reasons that Judge McMahon cited for siding with the Circuits that have refused to find authority for third party releases is the fact that Congress in 1994 authorized third-party releases in the specific context of asbestos, with the Judiciary Committee noting: “How the new statutory mechanism works in the asbestos area may help the Committee judge whether the concept should be extended into other areas.” This statement suggested to Judge McMahon that a broader authority to issue third-party releases in “other areas” did not exist in the first place, particularly given that Congress has not acted on the question since:
Continue Reading Judge McMahon: Bankruptcy Court Lacked Authority to Release Sackler Family as Part of Purdue Settlement

In an order yesterday in the appeal of the Purdue Pharma bankruptcy case, Judge McMahon invited briefing, due Monday at 9:00 a.m., on whether the Sackler family, which contributed $4.5 billion to the Purdue estate in exchange for releases, abused the bankruptcy system by distributing excessive profits to themselves in the years immediately prior to the bankruptcy:
Continue Reading Judge McMahon Asks for Briefing on Whether Purdue Pharma’s Profit Distributions to Sackler Family Were “Abusive”

Earlier today, the Attorney General of the State of New York brought an action to “end the pervasive use of excessive force and false arrests” by the NYPD in “suppressing overwhelmingly peaceful protests” following the police killings of George Floyd and Breonna Taylor. According to the complaint:

From May 28, 2020 to December 11, 2020, NYPD Officers of various ranks (“NYPD Officers”) repeatedly and without justification used batons, fist strikes, pepper spray, and other physical force against New York Residents at the Protests. Protesters—many of whom were never charged with any crime and were merely exercising their First Amendment rights—suffered concussions, broken bones, cuts, bruises, and other physical injuries.


Continue Reading New York State Sues New York City Over NYPD Response to Police Brutality Protests

In an opinion today, Chief Judge McMahon upheld a New York executive order that allowed tenants to apply their security deposits towards rent and that temporarily suspended evictions.

She ruled that the executive order did not violate the U.S. Constitution’s Takings Clause because landlords necessarily have entered into a heavily regulated area of the economy, and because the executive order was consistent with the type of ordinary ebb and flow of that regulation — as opposed to an impermissible destruction of landlords’ property investment:
Continue Reading Chief Judge McMahon Upholds New York’s COVID-19 Eviction Suspension

Last week, Chief Judge McMahon scheduled what appears to be the first remote trial to be held in the Southern District during the COVID-19 pandemic.  The trial will commence on July 6, 2020 in Ferring Pharmaceuticals v. Serenity Pharmaceuticals, a patent dispute involving drugs used to treat the condition nocturia (a form of waking during the night).

Judge McMahon considered several issues that counseled in favor of a remote trial:
Continue Reading Judge McMahon: Holding Bench Trial in July via Remote Platform is a “No-Brainer”

In an Order yesterday, Chief Judge McMahon, going beyond last week’s order, limited courthouse access to, essentially, those that have a concrete reason to be there in person.  Specifically, the Order allows only for the following groups to enter the courthouse:

  • Persons who have been ordered to appear by any judge of the Southern