Delaware

  • February 22, 2024

    Chancery Defers Settlement To Ponder Control Challenges

    Hopes for a quick end to litigation between a Texas-based insurance provider and a stockholder who sued over disproportionate insider control slipped away at a hearing in Wilmington, Delaware, Thursday after the presiding judge demanded to know how related Chancery Court litigation might affect a proposed settlement.

  • February 22, 2024

    IP Forecast: Samsung Eyes Ex-Attys' Litigation Funder Chats

    Samsung plans to ask a Texas court to force a patent litigation business to disclose communications with litigation funders ahead of a trial next month over whether the tech giant's former in-house counsel stole trade secrets. Here's a look at that case — plus all the other major intellectual property matters on deck in the coming week.

  • February 22, 2024

    Study Aid Biz Chegg Tries To Sink 'Cheating' Suit In Del.

    Attorneys for online book and study aid giant Chegg Inc. told a Delaware vice chancellor on Thursday that stockholders have failed to assemble defensible claims in a suit accusing the company of operating as a cheating service for students, saying they are trying to circumvent a stay for litigation in California federal court.

  • February 22, 2024

    3rd Circ. Won't Protect AbbVie's Atty-Client Communications

    The Third Circuit has denied AbbVie Inc.'s bid to block a Pennsylvania federal court's order to turn over attorney communications from a patent case allegedly cooked up just to extend the company's monopoly on a testosterone drug, but the appellate court's explanation remained under seal Thursday.

  • February 22, 2024

    Opioid Drug Co. Sued In Del. For Promotion-Tied Stock Drop

    Stockholders of opioid drug producer Talphera Inc. have sued the company's top officers and directors in Delaware's Court of Chancery, seeking derivative damages for harm to the business purportedly caused by the dangerous promotion of a flagship opioid.

  • February 22, 2024

    Vesttoo Liquidation Delayed For Closer Look At Creditor Deals

    A Delaware bankruptcy judge on Thursday postponed deciding the fate of Israeli financial technology firm Vesttoo Ltd.'s liquidation plan until early next week to give the remaining objector to the proposal time to review settlements the debtor reached with prior challengers.

  • February 22, 2024

    FTX Can Cash Out $500M Investment In AI Biz To Fund Ch. 11

    Insolvent cryptocurrency exchange FTX Trading Ltd. received a Delaware bankruptcy judge's approval Thursday to sell off its equity stake in an artificial intelligence technology company launched by former members of OpenAI that FTX purchased for $500 million in 2021.

  • February 22, 2024

    Yellow Corp. Landlord Says Time's Up For Ch. 11 Lease Sales

    A landlord of Yellow Corp. has asked a Delaware bankruptcy judge to reject the insolvent trucking company's request for two more years to find buyers for its remaining truck terminal leases, arguing it already had sufficient time to solicit bidders and must decide now whether to accept or reject the rental agreements.

  • February 22, 2024

    Healthcare Biz Founder Seeks Legal Costs For Fraud Fight

    The founder and former CEO of a healthcare business that provides medical device monitoring services has sued the company in Delaware Chancery Court, seeking to have it pay her legal costs in defense of fraud claims lodged against her.

  • February 22, 2024

    Alcoa Stockholder Challenges Board Nominee Rules In Del.

    Alcoa Corp. was hit with a proposed class action in Delaware's Court of Chancery on Wednesday by a shareholder seeking to invalidate a "highly problematic" and "coercive" company bylaw that allegedly serves to deter stockholder nominations.

  • February 22, 2024

    B. Riley Stands By Franchise Group Deal After Internal Review

    B. Riley Financial reaffirmed its commitment to the $2.6 billion take-private deal for Franchise Group Inc. despite the misconduct of former Franchise Group CEO Brian Kahn, saying on Thursday that its audit committee determined through a nine-week internal review that B. Riley had no knowledge of or involvement in the misconduct.

  • February 22, 2024

    Full Supreme Court Won't Halt Boy Scouts' Ch. 11 Plan

    The full U.S. Supreme Court on Thursday shot down an appeal that had prompted Justice Samuel Alito to briefly halt the Boy Scouts of America's bankruptcy and had thrown its Chapter 11 plan into temporary disarray.

  • February 21, 2024

    Del. Suit Accuses Healthcare Data Co. Exec Of Insider Trading

    A stockholder launched a derivative lawsuit late Wednesday in Delaware's Court of Chancery, alleging the founder of a behavioral healthcare data firm traded company shares using insider information and that nearly a dozen current and former directors and officers provided false and misleading disclosures about the business.

  • February 21, 2024

    39 AGs Call For Federal Pharmacy Benefit Manager Reform

    The list of critics of pharmacy benefit managers continues to grow as nearly 40 attorneys general have thrown their weight behind a trio of federal bills they say would force more transparency into an "opaque" industry that has "been a cause of rising drug prices."

  • February 21, 2024

    FDA Let Pharma Co. 'Sidestep' Application Rules, Court Told

    The Food and Drug Administration has been hit with a suit alleging it wrongly allowed a drugmaker to expand the scope of its application to market a generic version of a blockbuster pulmonary hypertension drug.

  • February 21, 2024

    3rd Circ. Finds Art Supply Co. Illegally Fired Temp. Worker

    The Third Circuit backed a National Labor Relations Board decision that found an art supply company illegally let go of a Black temporary worker who raised complaints about racism in the workplace, saying Wednesday there was enough evidence to uphold the board's conclusions.

  • February 21, 2024

    Justices Squabble Over Emergency Review Of EPA Smog Plan

    The U.S. Supreme Court's liberal wing denounced during oral argument Wednesday their colleagues' decision to consider the merits of four related emergency requests to prevent the U.S. Environmental Protection Agency from implementing a plan to reduce cross-state pollution without first getting lower court input.

  • February 21, 2024

    Lutnick, Cantor Hit With Chancery Suit Over BGC Reorg

    An investor in brokerage and financial tech firm BGC Partners Inc. whose shares were converted when it reorganized in July has filed a proposed class action in Delaware's Court of Chancery against billionaire Howard W. Lutnick and New York financial services firm Cantor Fitzgerald LP, alleging the reorganization was unfair.

  • February 21, 2024

    Peer Street Needs To Revise Ch. 11 Disclosures, Judge Says

    A Delaware bankruptcy judge sent crowd-funded real estate investment platform Peer Street Inc.'s disclosure statement back to the drawing board on Wednesday, telling the company that it needed to add more details and understandable language amid outcry from some small investors who wanted to convert the Chapter 11 bankruptcy to a liquidation.

  • February 21, 2024

    Texas Investors Ask Del. Justices To Revive Land Trust Suit

    An attorney for Texas' largest landholder told Delaware's Supreme Court on Wednesday that stockholders bound themselves to support a massive new share issue when they secured two board seats in 2021, dooming their efforts to reverse a Court of Chancery dismissal of their suit challenging the additional share issuance last year.

  • February 21, 2024

    Twitter Severance Fight Paused To Facilitate Settlement Talks

    X Corp., the social media entity formerly known as Twitter, and a group of ex-employees have paused their dispute over severance compensation, as a Delaware federal court signed off Wednesday on a proposal to stay litigation deadlines pending settlement talks.

  • February 21, 2024

    NH Power Plant Can Reject Electric Purchase Deal In Ch. 11

    Bankrupt electricity generating station Burgess Biopower LLC received court approval Wednesday from a Delaware judge to reject a power purchase agreement with a party the debtor claims was withholding payments and creating a financial situation where the station was in danger of shutting down permanently.

  • February 21, 2024

    Consumer Data Co. Gets OK For $50M Ch. 11 Sale

    A Delaware bankruptcy judge Wednesday approved the $50 million sale of Near Intelligence after being told that unsecured creditors' objections to the California-based consumer data gathering platform's Chapter 11 plan had been resolved.

  • February 21, 2024

    JPMorgan Got $400M Before Inovalon Sale, Del. Justices Hear

    Inovalon didn't properly disclose that investors that bought the healthcare data company in 2021 paid $400 million in fees to its financial adviser, a JPMorgan unit, before the transaction, a reason enough to revive a lawsuit challenging the $7.3 billion acquisition, counsel for stockholders told Delaware's Supreme Court Wednesday.

  • February 21, 2024

    3rd Circ. Kicks Data Privacy Suit Against Penn To State Court

    A proposed class action alleging that the University of Pennsylvania violated the state's privacy law must head back to state court, the Third Circuit ruled Wednesday, rejecting arguments that the university health system acted as a federal officer by operating an online patient portal.

Expert Analysis

  • 5 Lessons For SaaS Companies After Blackbaud Data Breach

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    Looking at the enforcement actions that software-as-a-service provider Blackbaud resolved with state attorneys general, the U.S. Securities and Exchange Commission and the Federal Trade Commission in the past year can help SaaS companies manage these increasingly common forms of data breaches, say attorneys at Orrick.

  • Del. Ruling Stands Out In Thorny Noncompete Landscape

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    In Cantor Fitzgerald v. Ainslie, the Delaware Supreme Court last month upheld the enforceability of forfeiture-for-competition provisions in limited partnership agreements, providing a noteworthy opinion amid a time of increasing disfavor toward noncompetes and following a string of Chancery Court rulings deeming them unreasonable, say Margaret Butler and Steven Goldberg at BakerHostetler.

  • A Post-Mortem Analysis Of Stroock's Demise

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    After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.

  • Understanding SEC's Focus Amid Lack Of Final AI Rules

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    Although the U.S. Securities and Exchange Commission's proposed rules to govern artificial intelligence are likely far from being finalized, understanding existing regulatory provisions that could address AI risks with respect to development, disclosure, compliance and data protection could help firms anticipate and avoid pitfalls, say attorneys at Skadden.

  • Del. Segway Dismissal Suggests Execs Not Liable For Biz Risk

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    While the debate continues within the Delaware Chancery Court over whether Caremark liability applies to matters of pure business risk, the court's recent rejection of Segway’s suit against the ex-president who oversaw financial difficulties suggests the court is uninterested in undermining the deference the business judgment rule grants corporate fiduciaries, say attorneys at Dechert.

  • ChristianaCare Settlement Reveals FCA Pitfalls For Hospitals

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    ChristianaCare's False Claims Act settlement in December is the first one based on a hospital allegedly providing private physicians with free services in the form of hospital-employed clinicians and provides important compliance lessons as the government ramps up scrutiny of compensation arrangements, say attorneys at Sheppard Mullin.

  • Texas Ruling Clarifies That Bankruptcy Shields LLC Rights

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    A Texas bankruptcy court’s recent ruling in In re: Envision makes it clear that the Bankruptcy Code preempts a section of Delaware state law that terminates a member’s interest in an LLC upon a bankruptcy filing, clarifying conflicting case law, say Larry Halperin and Joon Hong at Chapman and Cutler.

  • Series

    Coaching High School Wrestling Makes Me A Better Lawyer

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    Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.

  • Debt Collector Compliance Takeaways From An FDCPA Appeal

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    A Consumer Financial Protection Bureau amicus brief last month in an ongoing First Circuit appeal focusing on an interpretation of the Fair Debt Collection Practices Act can serve as a reminder for debt collectors to understand how their technologies, like bankruptcy scrubs and letter logic, can prevent litigation, says Justin Bradley at Womble Bond.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • Exploring The Foreign Discovery Trend In Delaware

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    Despite a U.S. Supreme Court decision limiting the use of Section 1782, recent trends from a Delaware federal court suggest that Delaware remains an appealing forum for such foreign discovery requests, says Florentina Field at Abrams & Bayliss.

  • Del.'s Tesla Pay Takedown Tells Boards What Not To Do

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    The Delaware Chancery Court’s ruthless dissection of the Tesla board’s extreme departures from standard corporate governance in its January opinion striking down CEO Elon Musk’s $55 billion pay package offers a blow-by-blow guide to mistakes Delaware public companies can avoid when negotiating executive compensation, say attorneys at Cleary.

  • Del. Dispatch: Clarification On Fiduciary Duties Of Controllers

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    The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • Series

    Competing In Dressage Makes Me A Better Lawyer

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    My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.

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