On August 7, the Judicial Panel on Multidistrict Litigation issued a Transfer Order centralizing three nationwide class actions that comprise In re Countrywide Financial Corp. Mortgage Lending Practices Litig., MDL No. 1974, in the Western District of Kentucky. "All actions share factual questions relating to whether Countrywide engaged in discriminatory residential lending practices, including
Swatting at Fannie — and Missing
Too many foreclosures = big losses at Fannie Mae.
On a day when Fannie Mae reported a $2.3 billion quarterly loss, the D.C. Circuit delivered some good news for mortgage lending behemoth’s directors. The court upheld dismissal of a derivative case against them on the ground that the complaint didn’t adequately allege "demand futility". Pirelli
First Circuit Upholds Securities Fraud Dismissal
The First Circuit today affirmed dismissal of a securities fraud class action against Biogen and several of its top insiders. The reason? The plaintiffs didn’t plead the scienter element in a way that satisfied the tough "strong inference" test of Tellabs, Inc. v. Makor Issues & Rights, Ltd., 127 S. Ct. 2499 (2007), under
Notice of Dismissal Automatic, Third Circuit Holds
Can you dismiss a complaint simply by filing a notice even after the court has granted a motion to dismiss? Yes, the Third Circuit held today — at least where the defendants haven’t answered, the plaintiffs haven’t dismissed a similar case before, and the district court’s order granting dismissal also allowed the plaintiffs a chance
CAFA Doesn’t Trump Removal Bar in Securities Act, Ninth Circuit Holds
The Ninth Circuit concluded today that the Class Action Fairness Act of 2005 doesn’t override a prohibition in the Securities Act of 1933 against removal of securities actions from state court.
Section 22(a) of the depression-era statute provides that "no case arising under this subchapter and brought in any State court of competent jurisdiction shall
MDL Panel to Hear Transfer Motions July 31
The Judicial Panel on Multidistrict Litigation will convene in the city by the bay on July 31. Their task? To do the important business of "centralizing" complex cases before individual federal judges so they can handle pretrial proceedings.
The Panel’s Notice of Hearing Session reads like a baedeker for the latest corporate disasters. The list
Fifth Circuit Upholds Rejection of Late Opt-Out from Enron Settlement Class
The White Rabbit was always late for a very important date.
As all the world knows, a settlement class member who wants to opt out must timely tell the court of opt-outer’s desire for exclusion. But what happens if the settlement notice that the class member receives doesn’t specify the opt-out deadline but the member
Illinois Brick Bats Car Lessees’ Claims, Per First Circuit
The First Circuit today turned back another antitrust case arising from car manufacturers’ efforts to suppress — so the plaintiffs alleged — importing cheap vehicles from Canada into the United States. A previous decision in the same multi-district litigation held that the unlikelihood of continuing misconduct by the manufacturers mooted a claim for injunctive relief.
Assignees Have Standing to Sue, Supreme Court Holds
If you use one of these to place a 1-800 call, the carrier that connects you owes "dial-around" compensation to the payphone owner.
A 5-4 Supreme Court held today that assignees have standing to sue even if they don’t stand to gain financially from a favorable outcome. Sprint Communications Co., L.P. v. APCC Services, Inc.
Milberg Settles Criminal Charges for $75MM
The former Milberg Weiss Bershad Hynes & Lerach firm agreed to pay $75 million to resolve criminal charges against it. NYT article here.
