Corporate Law

Posner opinion blasts class actions that are ‘no better than a racket’

A shareholder lawsuit settled 18 days after filing benefited the lawyers who would receive $370,000, but the disclosures required by the deal in advance of a merger were of little value, a federal appeals court has found. The Aug. 10 opinion (PDF) by the Chicago-based 7th U.S. Circuit Court of…

Aug 12, 2016 8:15 AM CDT

Texas AG cites court opinion to deny info releases by local governments

Texas Attorney General Ken Paxton is citing a Texas Supreme court opinion to advise against release of information—ranging from the number of Uber driver permits issued by the city of Houston to the cost of an Enrique Iglesias appearance sponsored by the city of McAllen. Now Texas lawmakers are considering…

Aug 9, 2016 10:15 AM CDT

Fines against unsafe nursing homes are considered a slap on the wrist

Nursing home regulatory systems are structured around administrative fines—fines that are reduced so routinely that they have become widely considered a cost of doing business rather than an incentive to provide quality care. Read this ABA Journal feature recently honored by the American Society of Business Publication Editors.

Aug 1, 2016 4:25 AM CDT

Lawsuits fail to bring improvements to nursing homes

While state fines do little to bring meaningful change to the nursing home industry, litigation against the homes doesn’t help spark improvements, either.

Aug 1, 2016 4:20 AM CDT

US sues to block two major health-insurer mergers, would like cases tried together

The U.S. Justice Department on Thursday filed antitrust lawsuits seeking to block two major health-insurer mergers. The suits challenge Anthem Inc.’s proposed acquisition of Cigna Corp. and Aetna Inc.’s planned merger with Humana Inc., report the New York Times, the Wall Street Journal (sub. req.), the Washington Post and Law.com.…

Jul 22, 2016 10:00 AM CDT

Law firms are ‘implicated’ in rise of inequality, says ‘Saving Capitalism’ author Robert Reich

The author of Saving Capitalism: For the Many, Not the Few doesn’t want to go so far as to say that large law firms are complicit in the rise of inequality. “Complicit is a strong word,” author Robert Reich tells the American Lawyer (sub. req.). “They’re definitely implicated. The structure…

Jul 22, 2016 8:00 AM CDT

Michigan suit accuses two companies of giving negligent advice on Flint water

Michigan Attorney General Bill Schuette has sued a water company and an engineering firm, along with five related companies, for their alleged role in the Flint water crisis. The suit filed on Wednesday says the companies were hired for their expertise, but as a result of the companies’ negligence, “Flint’s…

Jun 22, 2016 11:51 AM CDT

Private civil RICO plaintiffs can’t sue based on overseas injuries, Supreme Court rules

The law allowing civil suits by private plaintiffs based on racketeering activity does not reach injuries to business or property suffered outside the United States, the U.S. Supreme Court has ruled. Civil RICO plaintiffs must allege and prove a domestic injury to their business or property, the court ruled on…

Jun 20, 2016 11:59 AM CDT

Suit by lawyer for startup claims he received zilch for his work as general counsel

A California lawyer for a startup called QuickLegal claims in a lawsuit that he was never paid for more than three months of work he performed as in-house general counsel for the company and its predecessor. The lawyer, Justin Lowenthal, says in the June 11 suit (PDF) that QuickLegal Inc.…

Jun 20, 2016 7:30 AM CDT

Why raise associate pay to $180,000? Bank of America’s top lawyer questions the need

Beginning BigLaw associates may be happy about recent raises that hiked their pay to $180,000, but some lawyers for the companies that hire their law firms don’t share their enthusiasm. Now one in-house lawyer is making his misgivings known in an email, the Wall Street Journal (sub. req.) reports. Bank…

Jun 16, 2016 8:36 AM CDT

Lawyer takes chicken restaurant’s trademarks in lieu of $200K in legal fees, launches a new career

Representing a Southern chicken-and-biscuits fast-food restaurant was not initially a lucrative career move for attorney John Buttolph. His clients, struggling with a lack of capital, a loss of business for Atlanta-based Mrs. Winner’s Chicken & Biscuits during the Great Recession and the inability to get credit, at first resisted a…

Jun 15, 2016 4:12 PM CDT

New suits filed over sperm donor who claimed to be a neuroscientist, but wasn’t

At least two new lawsuits have filed against a Georgia-based sperm bank by families who thought they were using a sperm donor who was a neuroscientist and later found out he was a convicted felon with mental health issues. Two suits are being pursued in British Columbia against Xytex Corp.…

Jun 15, 2016 3:20 PM CDT

Rite Aid can’t recover from imprisoned ex-lawyer because of release in shareholder suit, judge rules

A federal judge in Philadelphia has blocked Rite Aid’s $135 million suit in state court against its convicted former chief counsel and vice chairman because of a release signed by the company in a shareholder class action in 2001. U.S. District Judge Stewart Dalzell ruled June 7 that Rite Aid…

Jun 14, 2016 8:31 AM CDT

Judge puts on hold landmark San Francisco law mandating sugary beverage ad warnings

A plan to require warning labels on ads for sugar-added drinks in San Francisco is on hold, as the beverage industry pursues an appeal. After initially denying an injunction last month concerning the landmark legislation, which is believed to be the first law of its kind in the nation, a…

Jun 10, 2016 12:10 PM CDT

Federal judge orders arrest of New Jersey lawyer for not complying with Ohio appearance demands

A federal judge in Cleveland and a longtime New Jersey lawyer are at war over a civil case involving the attorney’s brother. As of Thursday, U.S. District Judge Dan Polster had ordered the arrest of attorney John McDermott, for failing to comply with orders to appear in Ohio on Wednesday…

Jun 10, 2016 11:45 AM CDT