New York

  • December 17, 2014

    2nd Circ. Says $5M Punitive Award For Racism Needs Cut

    The Second Circuit on Wednesday said a New York federal judge did not go far enough in cutting a $24 million punitive damages award against ArcelorMittal SA in a steelworker's racial discrimination case to $5 million, saying the reduced award was still excessive.

  • December 17, 2014

    Broker-Dealer Execs Plead Guilty In $60M Bribery Scheme

    Two former executives of broker-dealer Direct Access Partners LLC pled guilty Wednesday to participating in a $60 million bribery scheme arising out of the company's transactions with a Venezuelan bank, in violation of the Foreign Corrupt Practices Act.

  • December 17, 2014

    Countrywide Whistleblower Nabs $58M Over BofA Deals

    A former Bank of America Corp. executive whose tips about mortgage fraud led to two landmark judgments against the firm will receive nearly $58 million in whistleblower awards, according to recently released New York federal court documents.

  • December 17, 2014

    RE Rumor Mill: Prudential, Premier Group, GLL Real Estate

    Prudential Real Estate Investors is reportedly paying more than $370 million for a Chicago office tower, while Premier Group is said to be buying a New York hotel for $150 million and GLL Real Estate is reportedly dropping $185 million on a Chicago office property.

  • December 17, 2014

    Silk Road's 'Dread Pirate' Blew Off Verbal Plea Deal Offer

    Alleged Silk Road mastermind Ross Ulbricht said Wednesday in Manhattan federal court that he ignored an opportunity to plead guilty prior to being formally indicted for running a global online drug trafficking and money laundering operation.

  • December 17, 2014

    Avon China Pleads Guilty In $135M DOJ, SEC Deal

    Avon Products Inc. received court approval Wednesday for half of a $135 million settlement to end DOJ and SEC investigations over the beauty giant's business practices in China, as its unit based there entered a guilty plea to Foreign Corrupt Practices Act misdeeds.

  • December 17, 2014

    NYC Co-Op Isn't Subject To $21M Tax, Top NY Court Says

    New York's highest court said Wednesday that Trump Village Section 3 Inc. is not subject to a $21.1 million real estate transfer tax on a residential co-op complex in Brooklyn, New York, that left an affordable housing program and went private.

  • December 17, 2014

    SUNY Agency Strikes $4M Settlement In Medicaid Audit Case

    The Research Foundation for the State University of New York will pay $3.75 million to settle a whistleblower suit in New York federal court, admitting that it manipulated audits of New York's Medicaid program and Children's Health Insurance Program under a contract with the state, the U.S. Department of Justice said Monday.

  • December 17, 2014

    On Deck Lands $1.4B Valuation As IPO Prices Above Range

    Small business lender On Deck Capital Inc. priced above its targeted range and climbed in its debut on the New York Stock Exchange, as investors rallied around the second alternative lender to tap the public markets this week.

  • December 17, 2014

    Madoff Trustee Gets $600M In New Clawback Settlements OK'd

    A New York bankruptcy judge has approved $600 million worth of settlements in clawback suits brought by the SIPA trustee for Bernard Madoff's failed securities firm and also approved the consolidation of two suits against would-be opt-outs from an earlier $7.2 billion deal with mega-investor Jeffry Picower.

  • December 17, 2014

    NY Gaming Board OKs 3 Casino Bids, With Shock Exclusions

    A New York State Gaming Commission advisory board recommended Wednesday that the commission grant licenses to three upstate casino resort bidders, but dropped a bombshell when it failed to advance any of the proposed bids in Orange County, the closest to the coveted New York City market.

  • December 17, 2014

    Yellen Expresses Confidence In NY Fed’s Dudley

    Federal Reserve Chair Janet Yellen on Wednesday expressed confidence Federal Reserve Bank of New York President William Dudley’s leadership of the key regional reserve bank in the face of withering criticism following reports of problems in its supervision of some of the largest U.S. banks.

  • December 17, 2014

    Kind, Clif End Snack Bar Trade Dress Fight

    Rival snack bar makers Kind LLC and Clif Bar & Co. have wrapped up their trade dress dispute over the new look of Clif's Mojo bar, agreeing to a settlement centered on an altered package design that was palatable to both companies.

  • December 17, 2014

    NY Moves To Ban Fracking As Officials Eye Health Risks

    In a long-awaited decision, the administration of New York Gov. Andrew Cuomo said Wednesday it would ban hydraulic fracturing in the Empire State, saying the potential health and environmental risks that emerged in a state review were too significant to allow the controversial drilling technique.

  • December 17, 2014

    2nd Circ. Wonders If Argentina Debt-Dodging Is 'Pathological'

    The Second Circuit on Wednesday asked whether Argentina would bother complying with bond investors' requests for information related to bank, real estate and contractual assets if the court upheld a trial judge's discovery order, with one appellate judge calling the South American country a "pathological" and recalcitrant deadbeat.

  • December 17, 2014

    Cravath Urges Court To Toss Typist's 'Petty' Bias Suit

    Cravath Swaine & Moore LLP has urged a New York federal judge to dismiss a discrimination lawsuit brought against the firm by a former employee, saying the typist’s suit is based on “petty slights and trivial inconveniences” that don’t amount to actionable claims under federal and state laws.

  • December 17, 2014

    Jeweler Yurman Pockets $2M In Suit Over Knockoff Sales

    A New York federal judge on Tuesday awarded luxury accessory manufacturer David Yurman LLC $2 million to end a suit in which the company accused DashingDaisy LLC and its owner of selling products that rip off David Yurman's copyright-protected designs. 

  • December 16, 2014

    Ignition-Switch Claimants Attack GM's Bankruptcy Shield

    General Motors Co. customers claiming their vehicles dropped in value after the revelation of a long-festering defect argued Tuesday that the carmaker’s crisis-era trip through bankruptcy does not stop them from suing the reincarnated “New GM” for damages.

  • December 16, 2014

    Networks Slam Aereo's Plans To Shop Infringing IP

    Broadcast networks that persuaded the U.S. Supreme Court to shut down television streaming service Aereo Inc. objected on Monday to the bankrupt startup’s plans to sell its technology, saying that they could be left unable to collect on an impending copyright damages award.

  • December 16, 2014

    L-3 To Offload Marine Systems Biz In $356M Deal

    L-3 Communications Holdings Inc. will sell its marine systems unit to Finnish power solutions company Wartsila Corp. in a €285 million ($356.5 million) deal, as it seeks to reshape its portfolio of businesses, the companies announced Tuesday.

Expert Analysis

  • Pressure Is On For Israeli Banks

    Robert Henoch

    Israeli financial institutions and U.S. holders of Israeli accounts have much to fear as the U.S. government accelerates its enforcement push against alleged U.S. tax evaders and their putative facilitators. However, those who fight back are likely to find that it is significantly easier for U.S. authorities to threaten complex financial prosecutions than to win them at trial, says Robert Henoch, a former assistant U.S. attorney no... (continued)

  • Annual Bankruptcy And Restructuring Roundup

    David N. Griffiths

    Despite the relative paucity of mega cases, 2014 was not a year to forget. With every passing month, new and interesting special situations arose. In case you missed them, here’s a look back at the bankruptcy and restructuring highlights of the year, as well as a look ahead to 2015, say David Griffiths and Doron Kenter of Weil Gotshal & Manges LLP.

  • Exchange Act Does Not Prohibit Big Boy Letters

    Susan F. DiCicco

    Companies weighing the value of no-reliance clauses in agreements have good reason to include them, as federal courts continue to enforce disclaimers of reliance in contracts between sophisticated parties, including in so-called “Big Boy” letters, say Susan DiCicco and Matthew Ladd of Morgan Lewis & Bockius LLP.

  • Year In Review: 2014 State And Local Employment Laws

    Susan Gross Sholinsky

    In 2014, states, cities, counties and other localities have been busy picking up Congress' slack on employment law by introducing bills and enacting laws on issues such as ban the box, sick leave and pregnancy accommodation, say Susan Gross Sholinsky and Nancy Gunzenhauser of Epstein Becker & Green PC.

  • Policyholders Should Note 3rd-Party Liability Pass In NY

    Michael Sampson

    A New York state appellate court's recent ruling in OneBeacon America Insurance Co. v. Colgate-Palmolive Co. runs counter to black letter law and harms policyholders, especially in cases where an insurer’s long-term solvency is suspect, by allowing third-party claims administrators to avoid liability, say attorneys at Reed Smith LLP.

  • What's Wrong With Judge Rakoff’s Plea-Bargaining Proposal

    Edward J. Loya Jr.

    To his credit, Judge Jed S. Rakoff of the Southern District of New York anticipates opposition to his proposal for the use of neutral magistrates to referee the plea-bargaining process — indeed, I can think of six objections right off the bat, says Edward J. Loya Jr., an associate at Venable LLP and former federal prosecutor.

  • Sub-Regressions: A Rigorous Test For Antitrust Class Cert.

    Laila Haider

    Recently, the New York federal magistrate judge in the Air Cargo Shipping Services Antitrust Litigation was not swayed by a particular type of statistical testing he referred to as "sub-regressions." Though it is a legal question whether the results are probative in any given case, it is critical to not junk a valid statistical approach that may be crucial for the economic analysis of class certification, say Laila Haider and Munee... (continued)

  • Tips For Managing E-Discovery In State Courts

    Ethan Hastert

    The Federal Rules of Civil Procedure were amended in 2006 to provide a uniform set of rules across the federal courts to govern the preservation, collection and production of electronically stored information, and most companies that regularly litigate complex disputes are familiar with them. At the state level, however, counsel must navigate an often unfamiliar and disparate legal landscape, say Ethan Hastert and Corwin Carr of Mayer Brown LLP.

  • 3 Different Approaches To RICO Extraterritoriality

    David Wallace

    In the wake of the U.S. Supreme Court's 2010 decision in Morrison, lower federal courts — both within and between jurisdictions — have adopted distinct approaches to operation of the presumption against extraterritoriality in the context of Racketeer Influenced and Corrupt Organizations statute claims involving conduct outside of the U.S. with some element of domesticity, say David Wallace and Jonathan Cross of Herbert Smith Freehills LLP.

  • May State And Local Gov'ts Control Low-Flying Drones?

    William O’Connor

    While most of the attention paid to drones has focused on issues of Federal Aviation Administration authority, state and local governments are increasingly asserting regulatory authority over drones and citing the need to protect the health and safety, including privacy, of residents. Do they have this authority? This question will only become more critical, say attorneys with Morrison & Foerster LLP.