In North American Catholic Educational Programming Foundation, Inc. v. Gheewalla, 2007 WL 1453705 (Del. May 18, 2007), the Delaware Supreme Court, in a case of first impression, provided some clarity on the controversial issue of whether and to what extent creditors have the ability to assert fiduciary duty claims against directors.
Jurisdictions
The Brocade Trial: Judge Breyer May Take Case Away From Jury
By Troutman Pepper Locke on
The first criminal trial of stock options backdating conduct may end with the court finding that government prosecutors failed to present sufficient evidence of intent to support a conviction.
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Federal Court Rejects Cedent’s Argument that Follow-the-Settlements Clause is Implied in Facultative Certificates
By Troutman Pepper Locke on
Posted in Reinsurance, United States
Recently, the United District for the Northern District of California rejected a cedent’s contention that the follow-the-settlements clause is implied in reinsurance contracts. See American Motorists Ins. Co. v American Re-Insurance Co., No. C5-5202 (N.D. Cal. May 29, 2007).
Federal Prosecutors Hint at Appeal of KPMG Defense Costs Decision
By Troutman Pepper Locke on
The United States government appears to have conceded that a complete dismissal of indictments against 12 former KPMG partners is the only appropriate remedy in light of an earlier ruling that federal prosecutors violated the defendants’ constitutional rights. The action, U.S. v. Stein, No. 05 Crim. 0888 (S.D.N.Y.), stems from allegations that KPMG employees participated in a scheme to defraud the IRS by creating fraudulent tax shelters for wealthy clients.
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FAA’s Time Limitations Do Not Apply to Non-Party to Arbitration Agreement
By Troutman Pepper Locke on
In R&Q Reins. Co. v. Rapid Settlements, Ltd., and Gwendolyn Sands Brown, No. 06-14329 (S.D. Fla. May 14, 2007), R&Q Reinsurance Company (“R&Q”) was obligated to make periodic payments to an underlying insured, Gwendolyn Brown (“Brown”), under the terms of a structured settlement agreement entered into to resolve a personal injury claim.
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The Brocade Trial: The Prosecution Rests
By Troutman Pepper Locke on
The prosecution in the first criminal trial arising out the widespread corporate practice of stock options backdating concluded its case on Monday, July 2, 2007. The defendant, Brocade Communications’ former CEO Greg Reyes, has moved to dismiss the case.
Private Equity Firms Brace for Expected Increase in Litigation
By Troutman Pepper Locke on
Posted in Industry Developments, United States
The results of a recent survey conducted by Marsh, a branch of the world’s largest insurance broker Marsh & McLennan, suggest that the private equity sector is bracing itself for a substantial increase in potential lawsuits.
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Motion to Dismiss Filed in Brokerage Antitrust Litigation
By Troutman Pepper Locke on
Posted in Antitrust, United States
In an effort to defeat plaintiffs’ claims for a third — and hopefully final — time, insurer and broker defendants recently filed motions to dismiss the Second Consolidated Amended Class Action Complaints filed in In re Insurance Brokerage Antitrust Litigation, Civil Action No. 04-5184, MDL 1663 (D.N.J.) (GEB) (“MDL 1663”).
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SEC New Rules for Rating Agencies
By Troutman Pepper Locke on
On June 26, 2007, final Securities and Exchange Commission (“SEC”) rules implementing the Credit Rating Agency Reform Act of 2006 (“Rating Agency Act”) and certain provisions of the Rating Agency Act went into effect.
Scruggs In the News – Criminal Contempt Charges and Filing of a RICO Civil Action against State Farm
By Troutman Pepper Locke on
A Northern District of Alabama judge recently asked federal prosecutors to charge Mississippi plaintiff’s attorney Richard “Dickie” Scruggs with criminal contempt. It is alleged that Scruggs violated a preliminary injunction issued in December 2006, which ordered him to turn over all documents secretly copied by two whistleblowers, Corgi Rigsby Moran and Kerri Rigsby.