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A New York state court recently dismissed claims brought by the liquidator of a hedge fund against the fund’s accountants on the ground that the claims were barred by the doctrine of in pari delicto.  Bullmore v. Ernst & Young Cayman Islands, No. 104314/05 (June 19, 2008). 

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Read More Hedge Fund Liquidators Barred from Bringing Negligence Claims Against Auditors

Robert Lewis Rosen Associates, Inc. (“RLR”) petitioned the United States District Court for the Southern District of New York to vacate an arbitration award issued in favor of William Webb (“Webb”) on the grounds that the arbitrator acted in manifest disregard of the law. 

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Read More New York Federal Court Finds That Doctrine of Manifest Disregard of the Law is No Longer Good Law

As previously reported here, on January 16, 2008, a jury in the Apollo Group securities class action found that Apollo Group misled investors and held the company liable for $277 million in compensatory damages.  However, the district court recently overturned the jury’s verdict. …
Read More Apollo Group Securities Class Action Jury Verdict Overturned

Apparently prompted by investigations of other brokers and overtures from the New York Attorney General and other regulators, three more broker-dealers have announced intentions to buy back auction rate securities (ARS) or otherwise settle ARS claims. 

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Read More Auction Rate Securities: Voluntary Buy-Backs, Settlements and Settlement Reserves

Nancy Praeger, President of the National Association of Insurance Commissioners (“NAIC”), sent a letter last month to the U.S. House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (the “Subcommittee”) and the co-sponsors of H.R. 5792, Increasing Insurance Coverage Option for Consumers Act of 2008 (the “Bill”).

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Read More NAIC Comments On Proposed Reforms Of Liability Risk Retention Act

As we previously reported here, the Rhode Island Supreme Court recently ruled that the public nuisance suit filed by the State’s Attorney General against various former lead paint manufacturers, resulting in a jury verdict against the manufacturers, should have been dismissed by the trial justice. 

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Read More Defendants in Rhode Island’s Lead Paint Public Nuisance Suit Seek Reimbursement of Costs

In a recent decision of the United States Bankruptcy Court for the District of Delaware, Jeld-Wen, Inc. v. Van Brunt, Adv. Proc. No. 07-51602 (Bankr. D. Del. June 9, 2008), the court held that a claim for injury allegedly due to exposure to asbestos was not discharged, survived the company’s exit from Chapter 11, and could be asserted against the successor company in a State court action under the circumstances presented: (i) under applicable governing non-bankruptcy law, such a claim does not arise until  injury manifests; (ii) the injury was not discovered until after the company had emerged from bankruptcy; (iii) the company’s confirmed plan of reorganization did not include a channeling injunction accommodating future asbestos related claims; and (iv) the published notice of the plan of reorganization did not provide notice to potential future asbestos claimants that their claims would be discharged by confirmation of the plan. …
Read More Bankruptcy Court Rules That Asbestos Claims Were Not Discharged By Plan of Reorganization

The Massachusetts Appeals Court recently ruled that an Insured’s willful, unexcused refusal to submit to an examination under oath violated the cooperation clause in its policy resulting in a material breach on the part of the Insured. …
Read More Massachusetts Appeals Court Rules that Insured Cannot Cure Material Breach of Policy Based on its Failure to Cooperate

Brocade Communications Systems, Inc. announced recently that it plans on pursuing claims for racketeering against 10 former Brocade officers and directors.  As previously reported on this blog, Brocade and its directors and officers have been the subjects of civil and criminal litigation for allegedly improper stock option backdating practices (click here). 

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Read More Brocade to Pursue Racketeering Claims Against Ten Former Officers and Directors