New York

  • October 31, 2014

    Argentina Defaults On Par Bonds, Risking Acceleration

    Argentina on Thursday defaulted on its debt for the second time since July when it failed to make a coupon payment on $5.4 million in par bonds issued under foreign law, thus raising the danger of acceleration and economic collapse.

  • October 31, 2014

    2nd. Circ. Stomps Momentive Noteholders' Ch. 11 Stay Bid

    The Second Circuit on Friday denied requests by noteholder groups to stay Momentive Performance Materials Inc.'s Chapter 11 plan to wipe out $3 billion in debt while they appeal the plan to a district court, a week after the contested reorganization went effective.

  • October 31, 2014

    Galleon's Rajaratnam Says $92M Fine Carried Bogus Motives

    Convicted Galleon Group LLC founder Raj Rajaratnam on Friday kicked off a Second Circuit fight over his $92.8 million civil fine, telling the appeals court that U.S. District Judge Jed Rakoff improperly used the fine to try to impoverish him.

  • October 31, 2014

    BofA, US Bank To Settle Suit Over $3.3B WaMu Losses

    Bank of America counsel told a New York federal judge Friday that they've reached a meeting of the minds with pension funds suing BofA and US Bank, which are the trustees of 19 Washington Mutual mortgage-backed securities portfolios that have allegedly experienced over $3.3 billion in recognized losses.

  • October 31, 2014

    AIG To Pay $35M To End New York Probe Into Ex-Units

    American International Group Inc. agreed to pay a $35 million penalty for insurance law violations by two of its former subsidiaries, the New York State Department of Financial Services said on Friday.

  • October 31, 2014

    Hedge Fund Manager Denies Bad Faith In Nautilus Debt Buy

    Hedge fund York Capital Management on Friday objected to letting a bankrupt shipper probe its buildup of an operating unit's debt, denouncing the shipper's claims that York may have taken the position in order to sabotage the container shipping venture’s restructuring efforts.

  • October 31, 2014

    Atty Wants Wiley Rein DQ’d From Continental Policy Spat

    An attorney on Thursday asked a New York federal judge to disqualify Wiley Rein LLP from representing Continental Casualty Co. in the insurer’s suit aimed at rescinding his professional liability policy and accused the firm’s attorneys of “improperly twisting the facts.”

  • October 31, 2014

    Citi Agrees To Pay $4.7M In Lending Specialist Wage Action

    Citigroup Inc. has agreed to pay up to $4.7 million in a class action settlement that would resolve claims the company incorrectly classified home lending specialist employees as exempt from overtime, according to a filing Friday in New York federal court.

  • October 31, 2014

    Revolving-Door Roundup: Sidley, Jones Day, Morgan Lewis

    October was an especially busy month for attorneys moving back and forth between the government and private practice, with six federal prosecutors and a host of high-ranking officials joining BigLaw firms, including Jones Day, Sidley Austin LLP and Morgan Lewis & Bockius LLP.

  • October 31, 2014

    Rockefeller Estate Asks High Court To Toss Superfund Suit

    The estate of John D. Rockefeller Sr. has asked the U.S. Supreme Court not to review a Second Circuit decision denying Asarco LLC’s bid for environmental response costs for two Superfund sites in Washington state, arguing environmental law does not require contribution from beneficiaries of a responsible party’s estate.

  • October 31, 2014

    Zipcar Runs Over Damage-Fee Class Action At 2nd Circ.

    The Second Circuit on Friday upheld a lower court’s dismissal of a proposed class action that accused Zipcar Inc. of violating New York law by improperly charging fees for rental car damage, saying that the applicable statute doesn’t provide a private right of action.

  • October 31, 2014

    Sanofi's Duty To Detail FDA Concerns Key To Lemtrada Cases

    A New York federal judge asked Friday whether Sanofi's "very happy opinion" shared with investors about prospects for on-time approval of its potential blockbuster Lemtrada multiple sclerosis drug carried with it a duty to detail concerns among regulators about bias in the single-blind method by which the drug giant and its recently acquired Genzyme Corp. unit were conducting trials.

  • October 31, 2014

    Duane Morris Adds Akin Gump Energy Project Pro

    Duane Morris LLP said this week that it's boosted its energy and construction practices by bringing aboard a former Akin Gump Strauss Hauer & Feld LLP counsel with significant project finance chops, especially in the renewable energy space.

  • October 31, 2014

    Actavis, NY AG Spar Over Antitrust Suit Injunction Bid

    The New York attorney general has urged a federal judge to block Actavis PLC from pulling its widely used dementia drug Namenda from the market until the office's antitrust suit concludes, while the drugmaker countered that the standards required for an injunction have not been met.

  • October 31, 2014

    RE Moguls On The Move

    October saw agents from New York's troubled Coldwell Banker Bellmarc Group decamp to rival companies, while Cushman & Wakefield lured a well-known Manhattan real estate adviser with her own business to jump onboard and Avison Young Inc. has bolstered its D.C. leasing team with new hires.

  • October 31, 2014

    Paramount Smacks Down 'Mean Girls' Investors' Fraud Suit

    A New York federal judge on Thursday tossed a suit brought against Paramount Pictures Corp. by a group of investors who said that the studio tricked them into bankrolling a largely unsuccessful slate of movies in 2004 that included the surprise hit "Mean Girls," saying that the evidence didn't support the claims.

  • October 31, 2014

    9/11 Workers’ Claims Were Rightly Revived, NY AG Says

    The New York Attorney General’s office has told a New York federal court that a law extending the time limit on 9/11 rescue and cleanup workers’ compensation claims is constitutional, arguing the law easily satisfies the standards necessary to merit its passage.

  • October 31, 2014

    Madoff Victims Can't Look To Trustee To Save Picower Suit

    The judge presiding over the liquidation of Bernard L. Madoff’s defunct firm refused on Thursday to let several investors suing the estate of Ponzi scheme beneficiary Jeffry Picower in Florida take discovery in an attempt to salvage their claims from the trustee winding down the Madoff estate.

  • October 31, 2014

    RE Rumor Mill: Equity Residential, Bowery, Stoltz RE Co.

    Equity Residential is said to have paid $126 million for a North Hollywood apartment complex, while five buildings in the Bowery have reportedly been sold for $45 million and Stoltz Real Estate is said to have purchased a Tennessee development for $24 million.

  • October 31, 2014

    Ares Nabs Energy Infrastructure Manager With $4B In Assets

    Ares Management LP is shifting toward a more energy-heavy strategy with a Friday agreement to acquire asset manager Energy Investors Funds, which has $4 billion in its funds.

Expert Analysis

  • How To Handle Ebola Fear In The Workplace: 4 Scenarios

    Mark A. Konkel

    An employee has just returned from a trip to West Africa. Can you require him to stay home, essentially quarantined, for 21 days? This is just one scenario in which fears of Ebola may implicate an employer's obligations under a number of laws — not least of which are disability discrimination laws prohibiting differential treatment based on a perception of someone's physical condition, say attorneys with Kelley Drye & Warren LLP.

  • The Legal Professions’ Curious Under-Use Of 2nd Opinions

    Judge Wayne D. Brazil

    As conscientious professionals who are required to address problems with notoriously elusive dimensions, lawyers should consider securing second opinions in a much wider array of circumstances than has been the norm, says Judge Wayne Brazil, a neutrual with JAMS and former magistrate judge in the U.S. District Court for the Northern District of California.

  • The Significance Of 2nd Circ.’s Indian Harbor Decision

    Robert W. DiUbaldo

    The Second Circuit’s decision in Indian Harbor Insurance Co. v. The City of San Diego involving a pollution and remediation legal liability insurance policy reinforces that the mandates imposed on insurers by Section 3420 of the New York Insurance Law do not apply unless all of the various elements of the statute are implicated. This is not only relevant to a liability insurer’s ability to disclaim coverage based upon late notice, ... (continued)

  • Use Social Media For Legal Service Only As A Last Resort

    Steven Richard

    Courts remain largely skeptical about allowing litigants to serve and notify evasive parties of legal proceedings through their social media accounts. A recent split ruling by the Oklahoma Supreme Court shows the competing considerations, say Steven Richard and Britt Killian of Nixon Peabody LLP.

  • Aereo Bid To Avoid Injunction Gets Poor Reception

    Robert Kenney

    Aereo Inc. is now barred from retransmitting broadcast television programming at any time while that programming is being broadcast. The New York federal judge's ruling emphatically answers at least one question that may not have been clear — any time delay in retransmission that is less than the entire length of the broadcast to its conclusion is impermissible, says Robert Kenney of Birch Stewart Kolasch & Birch LLP.

  • NY Water Withdrawal Just Got Easier For Power Generators

    Yvonne E. Hennessey

    The New York State Supreme Court's precedent-setting decision in Sierra Club v. Martens confirms that electric generating facilities in New York seeking an initial water withdrawal permit under the Water Resources Protection Act will not be subject to the State Environmental Quality Review Act, thus saving time and effort, say attorneys at Hiscock & Barclay LLP.

  • NY Court Limits Rights Of Assignees, Indenture Trustees

    David M. Zensky

    A New York state court decision in Cortlandt St. Recovery Corp. v Hellas Telecommunications will complicate the ability of noteholders to pursue a fraudulent conveyance action — one of several reasons the decision is concerning, say attorneys with Akin Gump Strauss Hauer & Feld LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • Novel Theory In Wyly Case Could Change SEC Disgorgement

    Bruce M. Bettigole

    The Southern District of New York ruling that Dallas billionaire Sam Wyly and the estate of his late brother are liable for the disgorgement of unpaid taxes in connection with securities fraud violations has set an important precedent in determining the monetary remedies the U.S. Securities and Exchange Commission may seek, say attorneys with Sutherland Asbill & Brennan LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.