New York RSS

  • April 9, 2014

    Genworth Lied About Australian IPO Delay, Suit Says

    In order to boost its stock, Genworth Financial Inc. lied to investors about the effect Australia’s struggling economy would have in delaying a 2012 planned minority offering of its Oz mortgage insurance unit, according to a putative class action launched in New York federal court on Friday.

  • April 9, 2014

    Paralyzed Metro-North Railroader Sues For $100M Over Crash

    A Metro-North railroad worker from Westchester, N.Y., who was paralyzed in a deadly Dec. 1 derailment, sued the commuter railroad Monday for $100 million under New York common law and under the Federal Employers Liability Act, which protects rail workers.

  • April 7, 2014

    Botched NYC Tower Project Owner Sues Lender For $48M

    One Madison FM LLC sued iStar Financial Inc. and its affiliates in New York court Friday, for breach of contract and to reclaim $48 million lost to former minority stakeholders in a bankrupt Manhattan condo tower due to iStar's negligence.

  • April 7, 2014

    Dish's Ergen Looks To Sue Falcone Over LightSquared Ch. 11

    Dish Network Corp. Chairman Charlie Ergen on Friday sought permission to sue LightSquared Inc. majority shareholder Philip Falcone, claiming the rival billionaire is destroying the bankrupt company’s chances at revitalization.

  • April 4, 2014

    Sanofi Hid MS Drug's Checkered History, Investors Say

    Sanofi SA and its top executives allegedly misled investors about the potential success of its subsidiary's multiple sclerosis drug Lemtrada, causing shareholders to miss out on millions of dollars when the drug failed to receive regulatory approval, a complaint filed in New York federal court claims.

  • April 4, 2014

    Sherwin-Williams Nixes $2.3B Comex Deal Over Antitrust Woes

    Sherwin-Williams Co. on Friday terminated its $2.3 billion deal to buy Mexican paints and coatings business Consorcio Comex SA de CV after the deal failed to win approval from Mexico’s antitrust regulators and as the paint giant readies itself for a breach-of-contract fight with Comex's owners.

  • April 4, 2014

    Gordon Ramsay Burned Business Partner, $10M Suit Says

    Celebrity chef Gordon Ramsay was hit with a $10 million suit Wednesday accusing him of tricking the co-owner of his Los Angeles restaurant into investing heavily in the eatery before using a trademark dispute as a pretense to shut it down and open his own restaurant.

  • April 4, 2014

    Genco Shipping To File for Ch. 11 In Deal With Lenders

    Genco Shipping & Trading Ltd. announced Thursday that it will file for Chapter 11 bankruptcy protection this month as part of a debt-for-equity deal with lenders who will support the company’s restructuring plan once it is filed in court.

  • April 4, 2014

    AIG Sues NY Insurance Regulator Over High-Stakes Probe

    American International Group Inc. on Thursday accused New York's insurance regulator of trampling on the constitution through its efforts to heavily punish AIG for a former subsidiary's marketing of foreign life insurance products without a state license.

  • April 3, 2014

    Luxury Condo Sues MTA Over 2nd Ave. Subway Construction

    A luxury co-op building in Lenox Hill on the Upper East Side of Manhattan hit the Metropolitan Transportation Authority with a suit in New York state court Wednesday, claiming that negligent construction associated with the Second Avenue subway line has wreaked havoc on the structure of the building.

  • April 2, 2014

    NY Enviros Leap Into Action After Bid To Re-Fire Coal Plant

    Texas-based asset manager Helios Capital Power LLP's bid to restart a shuttered, 500-megawatt coal-fired plant in New York's Hudson Valley drew fire from environmental groups on Wednesday, with an Earthjustice lawyer saying the Danskammer facility belongs in a "salvage heap."

  • April 1, 2014

    NYC Tenants File $100M Class Action Over Frigid Temps

    Tenants at Gateway Plaza in New York filed a $100 million class action Tuesday alleging companies in charge of the Battery Park City complex have exposed tenants to frigid temperatures by failing to provide adequate insulation and profited from residents using excess electricity to run heaters.

  • April 1, 2014

    Cartica Tries To Foil CorpBanca's 'Disastrous' $3.7B Merger

    U.S.-based activist investor Cartica Management LLC asked a New York federal court Tuesday to halt the reportedly $3.7 billion merger of Chilean bank CorpBanca SA and Latin American bank Itau Unibanco Holding SA, alleging the transaction shortchanges minority investors and wrongly favors its controlling shareholder.

  • March 31, 2014

    Insurer Hits CVS With False Scripts Whistleblower Suit

    An insurance company has alleged CVS Pharmacy Inc. knowingly submitted claims for coverage under federal and state Medicare and Medicaid plans on invalid prescriptions for controlled substances, according to a suit unsealed Friday in New York federal court.

  • March 28, 2014

    MF Global's Plan Head Raps PwC With $1B Malpractice Suit

    MF Global Holdings Ltd.’s bankruptcy plan administrator hit longtime outside auditor PricewaterhouseCoopers LLP with a suit in New York federal court Friday, alleging the accounting expert's malpractice and negligence caused more than $1 billion in damages in connection with European sovereign debt instruments.

  • March 24, 2014

    Countrywide, BofA Face Derivative Suit Over 'Toxic' Loans

    Countrywide Financial Corp. and Bank of America Corp.'s top brass were hit with a derivative shareholder suit in New York federal court on Friday, seeking to hold Countrywide responsible for a “toxic” high-speed mortgage approval process that could require Bank of America to pay $2.1 billion.

  • March 21, 2014

    'Big Short' Money Manager Sues SEC Over $1.5B CDO Case

    Wing F. Chau, a money manager featured in Michael Lewis' book "The Big Short," sued the Securities and Exchange Commission in New York federal court Friday, claiming the agency violated his constitutional rights by bringing an administrative proceeding rather than a lawsuit over claims he misled investors in a $1.5 billion collateralized debt obligation.

  • March 21, 2014

    NYC Explorers Club Sues Diageo Over Whiskey Brand Name

    New York City's famed Explorers' Club sued Diageo PLC in New York state court Thursday over the giant distiller's use of the club's name on a special line of its Johnnie Walker whiskey.

  • March 19, 2014

    Investors Say Fairway Group Misstated Finances Amid IPO

    Investors in private equity-backed Fairway Group Holdings Corp. on Friday launched a shareholder class action against the grocery chain in New York federal court, saying the company made false statements about its financial condition before and after its $159 million initial public offering.

  • March 19, 2014

    Toyota To Pay $1.2B In Criminal Probe Over Acceleration Issue

    Toyota Motor Corp. was slapped with a record $1.2 billion penalty on Wednesday in connection with criminal allegations that it hid two defects from consumers, regulators and lawmakers that caused vehicles to accelerate suddenly and unintentionally.

Expert Analysis

  • Recent Trend To Expand ERISA Liability Grows

    Neal S. Schelberg

    In a distinct trend, federal courts have found that, depending on the text of the underlying plan documents, unpaid employer contributions due under a collective bargaining agreement may be viewed as plan assets, such that the representatives of an employer who exercise fiduciary control over those plan assets can be held individually liable for the unpaid amounts — together with interest and penalties — under the Employee Retirement Income Security Act, say Neal Schelberg and Aaron Feuer of Proskauer Rose LLP.

  • NY Medical Monitoring Cases Are Ones To Watch

    Kristie Tappan

    A New York state appeals court recently refined the New York Court of Appeals' ruling in Caronia v. Philip Morris USA Inc., allowing plaintiffs to pursue medical monitoring as a form of damages where they had an existing tort cause of action. Parties can expect further litigation on the issue of what constitutes physical injury sufficient to seek damages for medical monitoring since injury can be an entryway for such damages, says Kristie Tappan of Sedgwick LLP.

  • Cash Collateral Orders Revisited Following ResCap

    Todd M. Goren

    A canvass of approved consensual cash collateral orders in recent large bankruptcy cases, including In re Residential Capital LLC, suggests the rarity, even nonexistence, of preordained methodologies for valuing collateral for the purpose of calculating an adequate protection claim, say attorneys with Morrison & Foerster LLP.

  • A Court Is A Poor Place To Air Dirty Linen

    Richard I. Janvey

    Oscar Wilde and others have said that there is no such thing as bad publicity, but it is unlikely that the parties in Mosionzhink v. Chowaiki, a New York case where dramatic charges of wrongdoing in the international high-end art market were lobbed about, would agree. The lesson for counsel is that litigation in a public forum may be “a loser” for the interests of each and every party, say Joan Secofsky and Richard Janvey of Diamond McCarthy LLP.

  • In Zurich V. Sony, Yes, There's A Duty To Defend

    Lon A. Berk

    The ultimate decision in Zurich American Insurance Co. v. Sony Corp. of America will not be mooted by the introduction of exclusions into newly issued commercial general liability policies. Even though such policies may contain exclusions barring coverage for data breaches, previously issued policies may still be triggered — and there should still be a duty to defend under those policies, as well as under Sony’s, says Lon Berk of Hunton & Williams LLP.

  • Supreme Court May Finally Clarify Compensable Time

    Kenneth W. Gage

    Integrity Staffing Solutions Inc. v. Busk provides the U.S. Supreme Court with another occasion to address and clarify whether — and under what circumstances — employers must compensate employees for their activity at the beginning or end of a workday. Though not a donning and doffing case, its ruling can still potentially have a wide-ranging impact on most large employers, say Kenneth Gage and Sean Smith of Paul Hastings LLP.

  • NY Green Bank May Spark Renewable Energy Investment

    Thomas McCann Mullooly

    New York's $1 billion Green Bank has grabbed the attention of developers and financing parties in the renewable energy marketplace. By actively working with potential partners on different financing arrangements, the flexibility of New York's Green Bank is its real value added. As other states continue to struggle with budget challenges it is likely they will adopt the green bank model too, say attorneys at Foley & Lardner LLP.

  • Another Nod To NY's Separate Entity Rule

    Heather Lamberg Kafele

    A New York state appellate court recently affirmed an important decision on the “separate entity” rule that is favorable to all multinational banks that maintain New York branches. The increasing weight of authority rejecting the argument that the New York Court of Appeals eliminated the rule in Koehler v. Bank of Bermuda may influence the state's highest court to resolve the issue once and for all, say attorneys with Shearman & Sterling LLP.

  • Legal Needs To Rethink Its Dropbox Account

    David Houlihan

    While there’s a lot of promise in the technology, when I talk to legal organizations using a mobile cloud content platform, they’re using a free Dropbox account. In fact, according to the 2013 ABA Legal Technology Survey, it’s about 58 percent of legal organizations. This is a problem, says David Houlihan of Blue Hill Research Inc.

  • PE Investment In NY Hospitals — The Pilot And Politics

    Eric Klein

    Should private equity play a bigger role in New York health care facilities? This is the question facing state legislators for the second year in a row as they consider a two-year pilot program proposal that would allow private equity to back health care facilities. For funds, the general uncertainty of investment during health care reform is heightened by the political considerations surrounding this pilot program, say Eric Klein of Sheppard Mullin Richter & Hampton LLP and Rachel Landauer, a UCLA law and public health student.