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Delaware
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February 26, 2025
LG Ad Co. Tells Del. Justices It Didn't Breach Deal With Firings
An attorney for TV data company Alphonso Inc. told Delaware's top court Wednesday that the Court of Chancery wrongly ruled last year that the company and its LG Electronics Inc.-controlled board lacked authority to fire five Alphonso co-founder executive officers and two pre-deal employees in a post-deal purge.
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February 26, 2025
NLRB Asks 3rd Circ. To Save Post-Gazette Union's Power
The National Labor Relations Board told the Third Circuit Wednesday that an injunction is needed to save what is left of the union representing newsroom employees at the Pittsburgh Post-Gazette, though members of the panel questioned if the NewsGuild's alleged loss of bargaining power was due to the publisher's actions or a two-year-long strike.
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February 26, 2025
Simpson Thacher Adds Partner From Wilson Sonsini
Simpson Thacher & Bartlett LLP has picked up a trial litigator from Wilson Sonsini Goodrich & Rosati PC who helped a startup defeat a nearly $460 million trade secrets case over expert testimony involving antibody cancer treatments and secured defense victories in patent cases for companies like Google LLC and HTC Corp.
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February 26, 2025
Joann To Wind Down Operations After Judge Approves Plan
A Delaware bankruptcy judge on Wednesday approved renowned fabric and crafts retailer Joann Inc. to wind down its operations after a "global consensus" was reached among the debtor, lender and creditors committee, allowing the 80-year-old chain to hold going-out-of-business sales.
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February 26, 2025
Bowlero Strikes California Bowling With Contract Breach Suit
Bowling giant Bowlero, which owns and operates the Professional Bowlers Association, has filed a breach of contract suit against California Bowling LLC in New York federal court, alleging that the Texas-based bowling company tried to terminate an agreement more than a year before it expired and that it owes Bowlero nearly $300,000.
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February 26, 2025
Trump Can't Enact Birthright Citizenship Order During Appeal
A Massachusetts federal judge on Wednesday left in place a block on President Donald Trump's would-be order restricting birthright citizenship, rejecting a bid by the administration to implement the executive action while it appeals the matter to the First Circuit.
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February 26, 2025
Boeing, Lockheed Supplier Hits Ch. 11 With Over $50M In Debt
Dynamic Aerostructures LLC, a Los Angeles aerospace parts supplier for Lockheed Martin and Boeing, filed for bankruptcy Wednesday, citing more than $50 million in debt, after the company suffered from "manufacturing practice inconsistencies" that resulted in quality control issues.
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February 25, 2025
Walgreens Inks $595M Deal To End COVID-19 Testing Suit
Walgreens Boots Alliance Inc. has agreed to pay $595 million to a lab testing and diagnostics company to put to rest a dispute over COVID-19 tests, according to a Monday filing with the U.S. Securities and Exchange Commission.
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February 25, 2025
Pa. Biotech Co. Can't Escape $4M Trade Secrets Award
A Delaware vice chancellor declined Monday to nix a nearly $4 million arbitral award issued to Finnish company UPM-Kymmene Corp. in a long-running trade secrets dispute, ruling that a link between the arbitrator and the Finnish company's counsel at DLA Piper was "at most, an attenuated connection."
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February 25, 2025
Sens. Reintroduce Measure To Boost Patent Injunctions
A pair of senators moved Tuesday to reintroduce legislation that would make it easier to obtain patent injunctions, after the bill got a divided reaction at a Senate hearing when it was proposed last session.
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February 25, 2025
Chancery Likens Claims To Recycling Losing Lottery Ticket
A more than eight-year court battle over a never-triggered dry eye drug development milestone award ended Tuesday with a Delaware vice chancellor's nearly $810,000 fee shifting order against the LLC seeking the payout, while leaving open a potentially unprecedented shift of fees to the nonparty drug's inventor.
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February 25, 2025
Primary Sponsor Of Del.'s Corporate Law Rework Defends Bill
Delaware Senate Majority Leader Bryan Townsend cited the "urgency of the moment" Tuesday during an interview with Law360 on fast-tracking proposed amendments to the state's General Corporation Law, aimed at increasing protections from liability for directors, officers and controlling stockholders in an effort to stem a feared corporate exodus from The First State.
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February 25, 2025
State Telecom Roundup: AI On Everyone's Minds
It's been just over two years since artificial intelligence burst onto the scene in a big way with the launch of ChatGPT. After billions upon billions of dollars in investment, AI tools can be found everywhere from the Apple App Store to social media platforms to clothing websites.
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February 25, 2025
Fired Worker Couldn't Justify COVID Vax Refusal, 3rd Circ. Says
A software engineer who refused to comply with his company's COVID-19 vaccine policy couldn't claim he had a "sincere religious objection" while shielding his medical records from disclosure and vacillating on his reasons, a Third Circuit panel ruled Tuesday.
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February 25, 2025
Federal Judiciary Repeats Request For More Judges
A federal circuit judge, speaking on behalf of the federal judiciary, repeated on Tuesday the need for more federal judges to alleviate the overwhelmed courts after President Joe Biden vetoed legislation late last year that would have added seats to the bench.
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February 25, 2025
Masimo Aims To DQ Hueston Hennigan As Ex-CEO's Counsel
Masimo Corp. is urging the Delaware Chancery Court to disqualify Hueston Hennigan LLP from representing its founder and former CEO in a lawsuit over his quest for a $450 million payout from the medical technology company, arguing the firm has a conflict of interest.
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February 25, 2025
Dental Co. Biolase Drills Down On Unopposed Ch. 11 Plan
A Delaware bankruptcy judge on Tuesday OK'd the Chapter 11 plan of dental technology maker Biolase Inc., which was fully consensual following changes to gain the approval of the U.S. Trustee and the official committee of unsecured creditors.
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February 24, 2025
Natera's $96M DNA Test Verdict Scrapped, Patents Axed
A Delaware federal judge Monday threw out Natera's $96 million patent infringement verdict against CareDx after determining that the asserted claims in its patents related to DNA tests for organ transplant recipients are invalid.
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February 24, 2025
Trump Birthright Citizenship EO Must Stay Paused, States Say
A coalition of states on Monday urged a Massachusetts federal judge to leave in place his preliminary injunction blocking President Donald Trump's executive order limiting birthright citizenship while the government appeals, arguing that the injunction merely maintains a centurylong status quo recognizing those citizenship rights.
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February 24, 2025
Biotech Minority Investor Sues In Del. To Block Control Moves
A company control and takeover battle between Aurion Biotech Inc. and a large investor made its second landing in Delaware's Court of Chancery on Monday, in a minority stockholder's direct and derivative suit accusing Alcon Research Inc. and its board designates of multiple fiduciary breaches.
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February 24, 2025
3rd Circ. Says $31M Order To Refill Class Funds Isn't Enough
The Third Circuit on Monday vacated and sent back a district court's order for a New Jersey man convicted of stealing $40 million from settlements in stockholder class actions to pay $31 million in restitution, ruling the order didn't fully compensate each victim of the fraud.
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February 24, 2025
3rd Circ. Says Discovery Defiance Dooms Vax Bias Suit
The Third Circuit backed the dismissal of a Jehovah's Witness' suit claiming 3M fired her out of religious bias for opposing its COVID-19 vaccine mandate, saying it was a proper punishment for purposefully ignoring discovery orders probing whether her beliefs were sincere.
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February 24, 2025
Trump Media Seeks Shareholder Approval To Leave Delaware
The owner of Donald Trump's social media platform plans to hold a shareholder vote in April asking investors whether it should move its legal address to Florida, potentially joining a growing number of companies reincorporating outside of Delaware.
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February 24, 2025
Netflix Sinks Robocast Playlist Patents In Del. IP Suit
A Delaware federal judge has sided with Netflix's arguments that a trio of Robocast patents covering playlist technology are invalid.
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February 24, 2025
Moves To Change Del. Corporate Law Spark Pushback
A public opposition campaign complete with website and street signs has surfaced to oppose corporation and bar-backed legislation that would overhaul Delaware stockholder litigation rights and fee awards, intensifying an already unprecedented political fight that broke out last year over corporate governance concessions.
Expert Analysis
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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.
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How 3rd Circ. Raised Bar For Constitutional Case Injunctions
The Third Circuit's decision in Delaware State Sportsmen's Association v. Delaware Department of Safety & Homeland Security, rejecting the relaxed preliminary injunction standards many courts have used when plaintiffs allege constitutional harms, could portend a shift in such cases in at least four ways, say attorneys at Gibson Dunn.
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The Fed. Circ. In June: More Liability For Generic-Drug Makers
The Federal Circuit’s June ruling in Amarin v. Hikma will likely result in more allegations of induced infringement by generic drugs postapproval, with more of those cases proceeding to at least the summary judgment stage instead of being cut off at the outset, say Jeremiah Helm and Sean Murray at Knobbe Martens.
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Opinion
Congress Must Increase Small Biz Ch. 11 Debt Cap
Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.
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Opinion
Expert Witness Standards Must Consider Peer Review Crisis
For nearly two decades, the so-called replication crisis has upended how the scientific community views the reliability of peer-reviewed studies, and it’s time for courts to reevaluate whether peer review is a trustworthy proxy for expert witness reliability, say Jeffrey Gross and Robert LaCroix at Reid Collins.
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Analyzing Advance Notice Bylaws On 'Clear' Or 'Cloudy' Days
In Kellner v. AIM ImmunoTech, the Delaware Supreme Court recently clarified the framework for judicial review of advance notice bylaws adopted, amended or enforced on "clear" or "cloudy" days, underscoring the responsibility of boards to ensure that their scope does not overreach or prevent the possibility of a contested election, say attorneys at Venable.