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Delaware

  • October 3, 2018

    Investor's 'Gut Feeling' Can't Sustain Suit, Kate Spade Says

    Luxury handbag and accessory maker Kate Spade & Co. told a Delaware Chancery Court judge Wednesday that a shareholder's demand for production of the company’s records could not be granted because the investor wasn't directly involved in the prosecution of the suit beyond his instinctual suspicion that a $2.4 billion merger with Coach Inc. wasn't fair.

  • October 3, 2018

    Navient Stood In Way Of Student Loan Forgiveness, Suit Says

    Navient Corp. was hit with a class action complaint in New York federal court Wednesday from nine public service workers who say the student loan servicing giant has lined its own pockets by misleading them and millions of other borrowers about accessing a federal loan forgiveness program.

  • October 3, 2018

    Takings Claims Should Go Right To Fed. Court, Justices Told

    Owners of property taken by the government should have the right to take their claims of constitutional violations straight to a federal court, despite a 33-year precedent that forces them to first seek compensation in state courts, the attorney for a Pennsylvania woman told the U.S. Supreme Court Wednesday.

  • October 3, 2018

    Full 3rd Circ. To Rehear Flyer's TSA Screener Abuse Suit

    The Third Circuit said Wednesday the entire court will hold a rehearing to reconsider its previous decision finding Transportation Security Administration airport screeners to be immune to civil suits over alleged traveler abuse.

  • October 3, 2018

    M&G Gets $2M As Funds In Delaware Ch. 11 Run Out

    A Delaware bankruptcy judge on Wednesday authorized plastics maker M&G USA Corp.'s use of $2 million in debtor-in-possession funds to cover operations and administrative costs in its Chapter 11 as a temporary solution since financing has run out.

  • October 3, 2018

    Amazon Liable As Seller Of Faulty Dog Collar, 3rd Circ. Told

    An Amazon Inc. user who was blinded in one eye by an allegedly defective dog collar she purchased through the internet retail giant urged the Third Circuit to revive her product liability case, telling a three-judge panel on Wednesday that while the company didn't manufacture the product, it was still liable because it directly controlled the sale.

  • October 3, 2018

    3rd Circ. Revives Medical Costs Row Over Navy's Toxic Spills

    A Third Circuit panel has reversed in part a ruling that barred residents from demanding the government cover the costs of monitoring their health after they discovered local Navy facilities contaminated their drinking water, finding the requests are not considered challenges to cleanup efforts.

  • October 2, 2018

    Authentix Investors' Appraisal Rights Nixed In Chancery

    A Delaware Chancery Court judge determined Monday that shareholders in trade security firm Authentix Inc. had waived their rights to an appraisal of their holdings in the company through a stockholders' agreement signed by the investors.

  • October 2, 2018

    Open Road Gets More Time To Nail Down Stalking Horse Bid

    Bankrupt film distribution company Open Road Films LLC got permission from a Delaware judge Tuesday to wait another week before submitting auction bidding procedures so it could continue to accept offers from potential stalking horse bidders.

  • October 2, 2018

    Stakeholder Cries Foul Over $270M Sale Of Colo. Wind Farm

    A limited liability company filed a lawsuit in Delaware Chancery Court challenging the $270 million sale of a company that owned a wind farm in Colorado, claiming it was denied its right to vote on the transaction after refusing to sell its minority interest in the venture.

  • October 2, 2018

    Investors Seek To Stop Staples’ $1B Purchase Of Essendant

    Investors in Essendant asked a Delaware federal court Tuesday to halt its $996 million merger with Staples, arguing there is key information missing from disclosures connected to the deal.

  • October 2, 2018

    Ligand Asks Chancery To Toss Costly Formula Error Suit

    Ligand Pharmaceuticals Inc. urged Delaware’s Chancery Court late Monday to throw out an “opportunistic” investor suit it said aimed to exploit a “scrivener’s error” that set up a bogus, multibillion-dollar stock conversion right for notes with a fraction of that value.

  • October 2, 2018

    Gibson’s Chapter 11 Plan Gets Nod In Delaware

    A Delaware bankruptcy judge gave his nod on Tuesday to musical instruments maker Gibson Brands Inc.’s Chapter 11 plan after a settlement was reached with creditors last month to provide improved recoveries for some and last-minute details were hashed out.

  • October 2, 2018

    Chancery Keeps Alive Class Suit Over $110M Energy Co. Sale

    A putative class challenge to the $110 million sale of U.S. Geothermal Inc. survived dismissal arguments Tuesday, with a Delaware vice chancellor describing the case as “very different” from merger litigation routinely dismissed under the court’s mainstay deal review standards.

  • October 2, 2018

    Biz Groups Back Uber In Philly Drivers' 3rd Circ. Appeal

    The U.S. Chamber of Commerce and the National Federation of Independent Business told the Third Circuit on Monday that Uber drivers are nothing like the employees Congress sought to protect under the Fair Labor Standards Act, so the court should reject a group of Philadelphia drivers’ misclassification claims.

  • October 2, 2018

    UPenn Pension Lacked Low-Fee Investments, 3rd Circ. Told

    A proposed class of University of Pennsylvania pension plan participants urged the Third Circuit to revive their Employee Retirement Income Security Act suit on Tuesday, arguing that they lost $26 million because of limited investment options with unnecessarily high fees.

  • October 2, 2018

    Judge Didn't Tell Immigrant What Was Required: 3rd Circ.

    The Third Circuit on Monday determined that an immigration judge erred by rejecting a Salvadoran native’s asylum bid, as the judge did not give the man adequate notice of what he needed to submit to sufficiently back up claims that appeared credible.

  • October 1, 2018

    Papa John's Founder Denies Racist Label In Chancery Trial

    Insisting that he is an "anti-racist," ousted Papa John’s pizza chain Chairman John Schnatter took the stand in Delaware's Chancery Court on Monday to deny that his use of a racially charged word in May had been intended as a slur.

  • October 1, 2018

    Supreme Court Passes On Review Of Walmart Derivative Suit

    The U.S. Supreme Court on Monday denied a petition to review a derivative shareholder suit against the directors of Walmart Inc. that was originally tossed by Delaware’s Chancery Court because its claims were already dismissed in an earlier-filed suit in Arkansas.

  • October 1, 2018

    Brookstone Gets $73M Bid To Buy Airport Stores, IP Assets

    After a four-day auction, bankrupt gadget retailer Brookstone secured a roughly $73 million bid to purchase its intellectual property, e-commerce domain and all but one of its airport stores in its Chapter 11 going-concern sale.

Expert Analysis

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Setting A Framework For Disgorgement Insurance Disputes

    Catherine Doyle

    In TIAA-CREF Insurance Appeals, the Delaware Supreme Court struck a blow to insurers seeking to avoid responsibility for settlement payments made by policyholders. Though decided under New York law, this opinion opens the door to a fact-specific analysis that may help policyholders facing similar denials, say Catherine Doyle and Jan Larson of Jenner & Block LLP.

  • Examining The Role Of Market Price In Appraisal: Part 2

    Dirk Hackbarth

    In response to the Delaware Chancery Court’s invitation earlier this year seeking expert opinions on market efficiency, we propose several tests to empirically assess the reliability of market price in appraising fair value, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • Why State Marijuana-Impaired Driving Laws Need Reform

    Ian Stewart

    Because current state laws relating to marijuana-impaired driving lack an objective impairment standard, only those who clearly demonstrate impaired driving are likely to be prosecuted and convicted, says Ian Stewart of Wilson Elser Moskowitz Edelman & Dicker LLP.

  • Examining The Role Of Market Price In Appraisal: Part 1

    Dirk Hackbarth

    Delaware Vice Chancellor J. Travis Laster recently cautioned that while courts are now giving greater deference to deal prices and market evidence in determining fair value, this approach does not elevate "market value" to the governing standard under the appraisal statute. His caveat begs at least three finance questions, say Dirk Hackbarth of Boston University and Bin Zhou of The Brattle Group.

  • Why The 3rd Circ. Allowed Removal In Encompass

    Brittany Wakim

    The Third Circuit recently ruled in Encompass v. Stone Mansions that a defendant can remove a case to federal court on the basis of diversity jurisdiction before the plaintiff formally serves the forum state defendant. This may be the first appellate decision on this issue, says Brittany Wakim of Schnader Harrison Segal & Lewis LLP.

  • Resolving M&A Price Disputes: Experts Or Arbitrators?

    Daniel Boland

    A threshold question in post-closing purchase price adjustment disputes is whether the merger agreement’s dispute resolution process is an expert determination or an arbitration. The answer can have a meaningful impact, as seen in the Delaware Chancery Court's decision in Penton Business Media Holdings v. Informa, says Daniel Boland of Pepper Hamilton LLP.

  • Amgen Suit Shows Limitations Of Biosimilar Safe Harbor

    Julia Kolibachuk

    A Delaware federal court's ruling in Amgen v. Hospira last month may indicate a significant narrowing of the patent infringement exception for activities related to obtaining drug approval from the U.S. Food and Drug Administration, say attorneys at Paul Hastings LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • How Delaware Courts Are Approaching Appraisal Valuation

    Michael O'Bryan

    The Delaware Supreme Court has eschewed bright-line tests for determining the value of a company in an appraisal. Two recent Delaware Chancery Court decisions illustrate the ways that the courts are determining appraisal valuation in light of this guidance, say Michael O'Bryan and James Beha of Morrison & Foerster LLP.