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In an order today, Judge Castel explained why, although he approved over $150 million in attorney’s fees in a securities class action against Bank of America, he would not approve a request for $3.4 million from Flanagan, Lieberman, Hoffman and Swain, a firm that apparently played only a peripheral role for the class:
Continue Reading Judge Castel Denies $3.4 Million Fee Request for “Armchair Advice” in Securities Class Action

Judge Rakoff yesterday issued one of his short “bottom line” Orders — with full opinion to follow — granting JP Morgan near complete summary judgment in a case in which the European bank Dexia and its former subsidiary accused Bear Stearns (later acquired by JP Morgan) of failing to comply with its stated underwriting guidelines for certain mortgage-backed securities.  Reuters’ Alison Frankel is reporting that the win reduces JP Morgan’s exposure by $770 million, to about $5.7 million.  The motion papers are here: motion; opposition; reply. Based on the transcript (here and here), it appears Judge Rakoff was likely persuaded by the fact that the plaintiffs did not read the offering documents referencing the underwriting guidelines that the complaint alleged were ignored, and, instead, the plaintiffs appeared to try to switch theories for summary judgment:
Continue Reading Judge Rakoff Grants JP Morgan Near Complete Win in Dexia MBS Suit Where Plaintiffs Did Not Read Offering Documents

In a decision yesterday, Judge Forrest denied a motion to dismiss a proposed class action challenging JP Morgan’s decision to hold onto certain notes from Lehman Brothers as the firm was collapsing. Judge Jones, before leaving the bench, had dismissed an earlier version of the complaint as based on conclusory “hindsight” (see our prior post on Judge Jones’ decision). Judge Forrest came to the opposite conclusion, based on the updated allegations:
Continue Reading Judge Forrest Allows Claim Against JP Morgan For Failing to Sell Lehman Notes to Proceed, And Indicates Case Will Move Swiftly

Judge Marerro yesterday certified a class against the Fairfield Greenwich feeder funds that invested with Bernard Madoff.  He rejected the argument that individual reliance questions precluded class certification:  “[E]ven assuming Defendants’ claims that certain communications to class members may not have been uniform, they allegedly were uniformly misleading.” The defendants also argued that class certification…

Today, Judge Sullivan granted Greenlight’s motion to preliminarily enjoin the Apple shareholder vote on “Proposal Number No. 2.”  That proposal sought to amend Apple’s Articles of Incorporation to make four changes, including to eliminate Apple’s “blank check” authority to issue preferred stock.  Prior posts on the cases are here.
Continue Reading Judge Sullivan Grants Einhorn’s PI, Blocking Apple Shareholder Vote