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Delaware
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March 25, 2025
Elliott Says Phillips 66 Aims To Thwart Its Proxy Contest
Elliott Investment Management on Tuesday accused Phillips 66 and its board of directors in Delaware Chancery Court of reducing the number of board seats up for election at the energy conglomerate's next annual shareholder meeting in order to thwart the hedge fund's impending proxy contest.
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March 25, 2025
Ex-Masimo CEO Slams Bid To DQ His Hueston Hennigan Attys
Joe E. Kiani, founder and ex-CEO of Masimo Corp., has urged the Delaware Chancery Court to reject the medical technology company's bid to disqualify his attorneys from Hueston Hennigan LLP in its lawsuit over Kiani's quest for a $450 million payout, saying the request is being "weaponized for tactical gain."
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March 25, 2025
AI Clean Energy Co.'s Execs Get Shareholder Suit Axed
Leaders of artificial intelligence-driven clean energy company Stem Inc. have avoided, for now, a suit accusing them of misleading investors ahead of a merger, with the court ruling the suit is a "puzzle pleading" that does not sufficiently justify why certain statements should be considered fraudulent.
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March 25, 2025
Delaware Legislature Passes Divisive Corporate Law Rework
Delaware lawmakers overwhelmingly approved and sent to the state's governor Tuesday legislation that eases restrictions on some conflicted corporate acts and limits some stockholder document inspection demands, after House members overwhelmingly shot down five amendments aimed at limiting the measure's reach.
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March 25, 2025
NJ Casinos Urge 3rd Circ. Not To Revive Room-Pricing Suit
Atlantic City casino-hotel owners have told the Third Circuit a lower court was right to toss a case accusing them of inflating room rates by using the same software to set prices because there's no problem with multiple businesses separately choosing to use the same service.
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March 25, 2025
Media Cos. Want Docs Unsealed In X Workers' Layoff Suit
More than two dozen filings in a proposed class action alleging X unlawfully shorted laid-off workers on severance should be unveiled, several media companies told a Delaware federal court Tuesday in a bid to intervene in the case, arguing the public has a right to view those filings.
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March 25, 2025
Franchise Group Senior Lenders Sue Junior Creditors
First-lien lenders of debtor Franchise Group Ltd. that are owed $1 billion have filed an adversary complaint in the retail chain operator's Chapter 11 case in Delaware, saying junior lenders owed more than $100 million are seeking to cash out secured collateral in violation of an intercreditor agreement.
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March 25, 2025
Atty Says Netflix's Boy Scout Doc Copied Style, Not Just Facts
A New Jersey trial lawyer who accused Netflix Inc. of infringing his copyright in its documentary about sexual abuse in the Boy Scouts of America pushed back against the streaming giant's dismissal bid, arguing the film copied the storytelling framework used in his own documentary.
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March 25, 2025
3D Printing Tech Co. Wins Chancery Order For Merger Closing
Delaware's chancellor issued a short-fuse post-trial order late Monday giving high-tech electronics board maker Nano Dimensions 48 hours to secure a national security agency agreement needed to acquire Israeli 3D printing defense contractor Desktop Metal.
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March 25, 2025
Contractor Drops $1.1M Bond Dispute Against Liberty Mutual
A Delaware-based plumbing and HVAC company has withdrawn its federal suit claiming that a general contractor and Liberty Mutual improperly withheld $1.1 million in payments for work the company completed on a U.S. Army Corps of Engineers elementary school project.
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March 25, 2025
Pittsburgh Paper Must Bargain With Union, 3rd Circ. Says
The Pittsburgh Post-Gazette will have to bargain with its reporters' union over wages and other changes in employment terms and restore healthcare, the Third Circuit ruled, partially agreeing to enforce a National Labor Relations Board ruling.
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March 24, 2025
Contrarian Unit's $3.7B Bid For Citgo Faces Opposition
The special master overseeing the sale of Citgo's parent company to satisfy billions of dollars of Venezuelan debt is recommending a federal judge proceed with a floor-setting bid of $3.699 billion submitted by an affiliate of Contrarian Capital Management, with the recommendation already meeting resistance.
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March 24, 2025
Calif. Hotel Operator Given 1 Week Of Interim Ch. 11 Financing
The owner and operator of a hotel in Southern California received a Delaware bankruptcy court's permission for a week of Chapter 11 financing after the judge said he would not approve MOM CA Investco LLC's initial debtor-in-possession funding proposal.
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March 24, 2025
Amgen Wants $50M Leukemia Drug Patent Verdict Thrown Out
Amgen has urged a Delaware federal court to grant it a new trial after a federal jury last year found that it owed Germany's Lindis Biotech $50.3 million in damages for encouraging healthcare providers to infringe immunotherapy patents by administering a leukemia treatment.
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March 24, 2025
Chancery OKs Paramount Global Docs Suit For Interim Appeal
Citing unsettled issues covering the use of confidential sources and pre- or post-petition evidence in stockholder books and records cases, a Delaware vice chancellor on Monday asked Delaware's Supreme Court for mid-case review of a decision that revived a Paramount Global records demand suit.
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March 24, 2025
Chancery Won't Restart Disputed Bitcoin ATMs For Now
Delaware's Court of Chancery refused on Monday to order reactivation of dozens of bitcoin cryptocurrency ATM kiosks shut down by an Iowa grocery chain after that state's attorney general sued Bitcoin Depot and a similar operation for alleged scamming of users.
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March 24, 2025
3rd Circ. Upholds No-Coverage Ruling For PNC's $106M Loss
PNC Bank NA can't get coverage for a more than $106 million judgment it paid over underlying claims that a bank PNC acquired had mismanaged certain trust accounts, the Third Circuit ruled, finding a provision that barred coverage for wrongful acts occurring before an acquisition was applicable.
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March 21, 2025
Chancery Nixes Mid-Case Appeal In Sears Appraisal Suit Fix
A Delaware vice chancellor refused on Friday to certify a mid-case appeal sought by bankrupt Sears Hometown Stores and its billionaire controller after a Court of Chancery ruling that an investor should get a full $4.06 per share post-squeeze-out merger award despite pursuing an alternative stock appraisal that was dead-ended by bankruptcy.
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March 21, 2025
Real Estate Recap: GSA Leases, Artemis, C-PACE
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including insight from Holland & Knight attorneys on General Services Administration lease terminations, Paul Hastings dealmakers on the Artemis takeover, and how attorneys see increasing use of commercial property-assessed clean energy financing.
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March 21, 2025
Divisive Del. Corporate Law Bill May Get Compromise Tweak
A Delaware state representative reported active interest Friday in possible "opt-in" requirements for proposed changes to the section of Delaware's general corporation law pertaining to potentially conflicted business transactions and controlling investors.
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March 21, 2025
Novartis Urges Court To Make FDA Block Entresto Generic
Novartis says the U.S. Food & Drug Administration has made a drug marketing exclusivity window "meaningless" and wants a D.C. federal judge to block a rival from selling a generic drug that would compete with its blockbuster heart medication Entresto.
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March 21, 2025
Block & Leviton, Elsberg To Co-Lead Agiliti Squeeze-Out Suit
Block & Leviton and Elsberg Baker & Maruri have won co-lead counsel roles in a consolidated proposed investor class action in Delaware's court of chancery challenging an alleged squeeze-out of minority shareholders of medical equipment company Agiliti Inc.
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March 21, 2025
Imerys Insurers Want Italian Subsidiary's Ch. 11 Tossed
A foreign affiliate of bankrupt talc miner Imerys does not qualify for Chapter 11 protection, a group of insurance carriers have told the Delaware bankruptcy court, urging it to dismiss the subsidiary's recent bankruptcy petition.
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March 21, 2025
3rd Circ. Takes On NJ Judicial Privacy Law's Constitutionality
The Third Circuit has granted requests by several data brokers to review a lower court judge's ruling that New Jersey's judicial privacy and security measure, known as Daniel's Law, is constitutional.
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March 21, 2025
Exactech Strikes $10M Deal With TPG In Ch. 11
Counsel for medical implant maker Exactech Friday told a Delaware bankruptcy judge it has reached a $10 million settlement of potential claims against its equity sponsor a week before it will seek approval to send its Chapter 11 plan out for a vote.
Expert Analysis
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Daubert Motion Trends In Patent Cases Reveal Damages Shift
A review of all 2023 Daubert decisions in patent cases reveals certain trends and insights, and highlights the complexity and diversity in these cases, particularly in relation to lost profits and reasonable royalty damages opinions, say Sherry Zhang and Joanne Johnson at Ocean Tomo.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Class Action Law Makes An LLC A 'Jurisdictional Platypus'
The applicability of Section 1332(d)(10) of the Class Action Fairness Act is still widely misunderstood — and given the ambiguous nature of limited liability companies, the law will likely continue to confound courts and litigants — so parties should be prepared for a range of outcomes, says Andrew Gunem at Strauss Borrelli.
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Jarkesy Ruling May Redefine Jury Role In Patent Fraud
Regardless of whether the U.S. Supreme Court’s Jarkesy ruling implicates the direction of inequitable conduct, which requires showing that the patentee made material statements or omissions to the U.S. Patent and Trademark Office, the decision has created opportunities for defendants to argue more substantively for jury trials than ever before, say attorneys at Cadwalader.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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2nd Circ. Case Reinforces Need For Advance Notice Bylaws
The Second Circuit's recent decision in Nano Dimension v. Murchinson illustrates that Section 13(d) of the Exchange Act is a square peg for a round hole, and that advance notice bylaws are far better at protecting against undisclosed coordination among activist shareholders, say attorneys at Morgan Lewis.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.