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Joshua Nassir

NINTH CIRCUIT REVERSES MAJOR LIMITATION ON NATIONWIDE CLASS ACTIONS

Posted by Joshua Nassir on 06/14/2019

On June 6, 2019, the United States Court of Appeals for the Ninth Circuit issued an en banc decision in In re Hyundai and Kia Fuel Economy Litigation, reversing its previous, stringent ruling that district courts must engage in a rigorous choice-of-law analysis when certifying a class action settlement. The 8-3 decision, authored by Circuit ...

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Alex B. Heller

Longfin and Former CEO Charged In Alleged Fraud Scheme

Posted by Alex B. Heller on 06/11/2019

On June 5, 2019, the Securities and Exchange Commission ("SEC") filed a complaint in the United States District Court for the Southern District of New York against Longfin Corp. ("Longfin") and the company's former CEO Venkata Meenavalli ("Meenavalli"). In a statement on the same day, Anita B. Bandy, associate director of the SEC's Division ...

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Megan Sullivan

The SEC Warns Brokers And Investment Advisors To Implement Effective Cybersecurity Measures

Posted by Megan Sullivan on 06/06/2019

The SEC's Office of Compliance Inspections and Examinations ("OCIE") has announced that cybersecurity is a priority for 2019. The division said in December that its examinations will place an emphasis on the configuration of storage systems and information security governance. Pursuant to this goal, the OCIE recently conducted examinations ...

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Patrick J. Collopy

$101 Million Judgment to Walmart Employees for Pay Stub Violations

Posted by Patrick J. Collopy on 06/05/2019

On May 31, 2019, the U.S. District Court for the Northern District of California awarded more than $101 million to a class of California Walmart employees who were provided with improper wage statements. The Court found that Walmart issued wage statements that failed to inform its employees of all applicable hourly rates in effect during a ...

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Maxwell Michael

SEC Adopts Amendments in Line with Mandate from FAST Act to Modernize and Simplify Regulation S-K

Posted by Maxwell Michael on 06/03/2019

On May 2, 2019, amendments to the disclosure requirements of Regulation S-K went into effect. The amendments were adopted as part of the Securities and Exchange Commission's ("SEC") efforts to comply with modernization and simplification mandates under the 2015 Fixing America's Surface Transportation Act (the "FAST Act"). Under Section 72003 ...

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Lubna M. Faruqi

Demands to Improve Diversity in the Practice of Law

Posted by Lubna M. Faruqi on 05/31/2019

In January of this year, more than 170 general counsel and corporate legal officers signed an open letter demanding that big law firms improve diversity or risk losing their business. The letter noted signatories' disappointment that "many law firms continue to promote partner classes that in no way reflect the demographic composition of entering ...

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David Felderman

Supreme Court of the United States Reaffirms Direct Purchaser Rule

Posted by David Felderman on 05/29/2019

On May 13, 2019, the United States Supreme Court issued a decision in Apple Inc. v. Pepper, No. 17-204, -- S.Ct. --, 2019 WL 2078087 (2019) affirming the Ninth Circuit Court of Appeal's finding that iPhone owners who purchased iPhone applications directly from Apple Inc. ("Apple") were direct purchasers under Illinois Brick Co. v. Illinois, ...

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Alex B. Heller

Judge Preliminarily Approves a $240 Million Wells Fargo Derivative Settlement

Posted by Alex B. Heller on 05/28/2019

On May 14, 2019, U.S. District Judge Jon S. Tigar of the Northern District of California preliminarily approved a proposed $240 million cash settlement that would resolve shareholder derivative litigation over Wells Fargo's illicit account creation scandal. The settlement resolves claims against 20 current and former directors and officers, ...

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Joshua Nassir

SUPREME COURT ISSUES PRO-CONSUMER RULING LIMITING REMOVAL OF CLASS ACTIONS

Posted by Joshua Nassir on 05/28/2019

On May 28, 2019, the Supreme Court of the United States issued a ruling in Home Depot v. Jackson, prohibiting third-party defendants from removing class actions from state court to federal court. In a 5-4 decision authored by Justice Thomas, the Supreme Court held that the term "defendant" in the context of the removal statutes did not encompass ...

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David Calvello

Congress Seeks to Ban Pay-For-Delay Deals

Posted by David Calvello on 05/23/2019

Both the House of Representatives and the Senate have recently proposed bills that would effectively ban pharmaceutical companies from engaging in "pay-for-delay" deals that block generic drug entry and harm consumers. Pay-for-delay arises during the course of patent litigation settlement, when a brand pharmaceutical company pays off a generic ...

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Sami Ahmad

The SEC’s Recent ICFR Enforcement Actions Remind Companies To Take Timely Remedial Action Upon Finding Internal Control Weakness

Posted by Sami Ahmad on 05/22/2019

On May 22, 2019, the Securities and Exchange Commission (SEC) announced that it had settled internal control over financial reporting ("ICFR") violations with four companies charged with violating Section 13 of the Exchange Act and the rules promulgated thereunder. The SEC's announcement provides an important reminder that companies must not ...

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Nina Varindani

Delaware Supreme Court Affirms Chancery Finding that Board had no Duty to “Repackage and Restate” Information Found in a Simultaneously Provided Public Filing

Posted by Nina Varindani on 05/22/2019

On May 16, 2019, the Delaware Supreme Court affirmed the Court of Chancery's prior decision finding that the Board of Directors (the "Board" or "Defendants") of Equus Total Return, Inc. ("Equus" or the "Company") did not breach its fiduciary duties when seeking shareholder approval of an equity incentive compensation plan (the "Plan"). Plaintiff ...

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Sherief Morsy

Supreme Court Affirms That Dissemination of False and Misleading Statement Can Result In Liability Under Subsections (a) and (c) of SEC Rule 10b-5

Posted by Sherief Morsy on 05/22/2019

On March 27, 2019, the United States Supreme Court issued a decision in Lorenzo v. Securities and Exchange Commission, No. 17-1077, -- S. Ct. --, 2019 WL 1369839 (2019) affirming the D.C. Circuit Court of Appeals' and the Securities and Exchange Commission's ("SEC") finding that "by knowing disseminating false information to prospective investors, ...

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Maxwell Michael

Faruqi & Faruqi Scores Win for Investors Before Supreme Court of the United States

Posted by Maxwell Michael on 05/03/2019

On April 23, 2019, the Supreme Court dismissed as improvidently granted the writ of certiorari granted in Emulex Corp. v. Varjabedian, No. 18-459. The case originated in the Northern District of California where shareholders had asserted claims under Section 14(e) of the Securities Exchange Act of 1934 to challenge the Recommendation Statement ...

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Raymond N. Barto

Federal Grand Jury Validates Allegations in In re: Suboxone (Buprenorphine Hydrochloride and Naloxone) Antitrust Litigation

Posted by Raymond N. Barto on 04/22/2019

A federal grand jury indicted Indivior Inc. and Indivior PLC for fraudulently marketing its blockbuster drug, Suboxone. The indictment echoed the same allegations made by plaintiffs in In re: Suboxone (Buprenorphine Hydrochloride and Naloxone) Antitrust Litigation, No. 2:13-md-02445, a civil case that plaintiffs have been litigating in the ...

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Patrick J. Collopy

Walmart Employees Win $6 Million Judgement in Meal Break Lawsuit

Posted by Patrick J. Collopy on 04/22/2019

On April 12, 2019, a California federal jury awarded $6 million to Walmart workers at a Chino, California warehouse who worked as "Associates" as far back as June 8, 2013. During meal breaks, Walmart required Associates to go through a lengthy "asset protection" process that included an anti-theft metal detector checkpoint if they wished to ...

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Innessa M. Huot

U.S. House of Representatives Passes Paycheck Fairness Act to Attack Gender Pay Gap

Posted by Innessa M. Huot on 04/22/2019

The United States House of Representatives passed the proposed Paycheck Fairness Act (the "Bill") to rid employees of sex-based pay differentials and make wage practices more transparent. The Bill adds several layers of procedural protections to the Equal Pay Act of 1963 ("EPA") and requires employers to prove that any wage discrepancies are ...

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Patrick J. Collopy

DOL Proposes New Rule for Overtime Eligibility

Posted by Patrick J. Collopy on 03/12/2019

On March 07, 2019, the United States Department of Labor ("DOL") proposed to increase the salary threshold required for executive, administrative and professional ("EAP") workers to qualify as exempt from overtime under the Fair Labor Standards Act ("FLSA"). Once finalized, the DOL rule will convert more than one million workers – earning ...

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Joshua Nassir

Faruqi & Faruqi Defeats Motion to Dismiss In Consumer Class Action Challenging Bayer’s Flintstones Complete Multivitamin Gummies

Posted by Joshua Nassir on 03/08/2019

On March 6, 2019, Judge John A. Kronstadt of the Central District of California denied Bayer's motion to dismiss plaintiff's complaint in its entirety. The Court declined to dismiss plaintiff's allegations that defendants mislead consumers into believing their Flintstones Complete Children's Multivitamin Gummies products contain a complete ...

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Joshua Nassir

Geographical Origin Consumer Cases On The Rise

Posted by Joshua Nassir on 03/06/2019

When shopping for everyday items, it's not only what's inside the package that counts. Consumers care about the product's background, and rightfully so. It comes as no surprise that geographical origin lawsuits for consumer products are becoming increasingly common. Just recently, on February 27, 2019, a collection of Kona, Hawaii coffee growers ...

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Dillon Hagius

Federal Judge Reverses Decision in Blockchain ICO Case

Posted by Dillon Hagius on 02/25/2019

Judge Gonzalo Curiel of the Southern District of California has reversed his recent decision to deny the Securities and Exchange Commission's ("SEC") motion for a preliminary injunction against Blockvest's Initial Coin Offering ("ICO"). In an order dated February 14, 2019, Judge Curiel granted the SEC's motion to reconsider his earlier decision. ...

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Dillon Hagius

Faruqi and Faruqi Clients Object to Synergy Pharmaceuticals’ Bankruptcy Plan on Behalf of Putative Shareholder Class  

Posted by Dillon Hagius on 02/25/2019

On February 21, 2019, co-lead plaintiffs of a putative Synergy Pharmaceuticals shareholder class objected to Synergy Pharmaceuticals' Chapter 11 Bankruptcy Plan. The objection was made before Judge James L. Garrity in the United States District Court for the Southern District of New York. It states, inter alia, that the Plan would improperly ...

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Kristyn Fields

Defendants’ Motion for Stay Denied in Lamictal Pay-For-Delay Case

Posted by Kristyn Fields on 02/22/2019

On February 15, 2019, Magistrate Judge Cathy L. Waldor issued a text order denying defendants GlaxoSmithKline PLC and Teva Pharmaceutical Industries Ltd.'s motion to stay the district court proceedings pending resolution of their Rule 23(f) petition to review the Court's order certifying the direct purchaser class. GSK and Teva petitioned ...

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Faruqi & Faruqi

Faruqi & Faruqi, on Behalf of Direct Purchasers, Defeats Motion to Dismiss in Zetia Pay-For-Delay Case

Posted by Faruqi & Faruqi on 02/20/2019

On February 6, 2019, Magistrate Judge Douglas E. Miller of the Eastern District of Virginia recommended that the district court deny defendants Merck & Co., Inc. and Glenmark Pharmaceuticals Inc.'s motion to dismiss in the pay-for-delay case over Merck's blockbuster cholesterol drug Zetia. Faruqi & Faruqi represent the direct purchaser plaintiffs ...

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Dillon Hagius

Insider Trading Plans Come Under Legislative Scrutiny

Posted by Dillon Hagius on 02/04/2019

A new House Bill, the "Promoting Transparent Standards for Corporate Insiders Act," could change how corporate insider trading is conducted and disclosed. On January 28, 2019, the full House overwhelmingly voted to give the Securities and Exchange Commission ("SEC") the authority to carry out a study on SEC Rule 10b5-1. Under the current Rule, ...

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Megan Sullivan

Recent Sec Actions Highlight the Importance of Implementing Effective Cybersecurity Measures

Posted by Megan Sullivan on 01/24/2019

On January 15, 2019, the United States Securities and Exchange Commission ("SEC") filed a civil complaint against thirteen individuals and entities for allegedly hacking into the SEC's EDGAR filing database between May and at least October 2016. The complaint alleges that the hackers reaped over $4.1 million from trading on information in ...

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