News, Results & Firm Blog

On April 11, 2016, Judge Real of the Central District of California granted an ex parte application for a temporary restraining order in favor of our client ReachLocal, Inc.  ReachLocal sought to prevent defendants Kieran Cassidy and his company, PPC Claim (collectively, the “Defendants”), from contacting its clients, employees, and investors. ...

On Friday, April 1, 2016, the Honorable Manuel L. Real of the United State District Court for the Central District of California, granted our client’s ex parte application for a temporary restraining order against the defendants. Our client, ReachLocal, Inc., caught wind of spurious internet postings and communications made on Defendant PPC Claim...

In Seahaus La Jolla Owners Association v. Superior Court (224 Cal.App.4th 754), the California Court of Appeals explained the Common Interest Doctrine of the attorney-client privilege.  The defendant sought to obtain information disclosed by counsel of the HOA at pre-litigation meetings; the defendant claimed that the presence of homeowners (who...

California Code of Civil Procedure §1032(a)(4) defines the “prevailing party” to include “the party with a net monetary recover” and “a defendant in whose favor a dismissal is entered.”  The statute entitles the prevailing party to the costs in the proceeding.  In a recent proceeding, the California Supreme Court was faced with the question of...

On Friday, March 4, the Honorable R. Gary Klausner ruled in favor of BNS’ client, granting a temporary restraining order, enjoining Internet Corporation for the Assigned Names and Numbers (ICANN) from issuing the .Africa top-level domain. Plaintiff Dot Connect Africa Trust (DCA) applied ex parte for a temporary restraining order on Wednesday...

On February 5, 2016, the Central District granted a motion to dismiss on forum non conveniens grounds, entering judgment in favor of our client.  After being warned of pending litigation overseas, the California manufacturer our client distributed for initiated a declaratory relief action in Los Angeles Superior Court.  After removing to federal...

A recent decision by the Second Circuit Court of Appeal seeks to clarify the distinction between direct and derivative standing under Delaware law. In AHW Inv. P’ship v. Citigroup, Inc.(806 F.3d 695), the plaintiffs brought claims for various false statements that resulted in losses over $800 million.  The plaintiffs were numerous investment...

In May 2012, JP Morgan Chase announced an estimated trading loss of $2 billion.  After the details were finalized, actual losses exceeded $6 billion.  As a result, Ernesto Espinoza brought a derivative shareholder action against JPMorgan’s directors and officers for breach of fiduciary duty and related claims.  Around the same time of the...

Recently, the Supreme Court reversed a California court’s refusal to enforce an arbitration agreement made unenforceable by valid California state law.  The Court emphasized the fact that under the Federal Arbitration Act, state law prohibiting class-arbitration waivers is invalid.  In her dissent, Justice Ginsburg focused on the parties’ intent...

In her September 9, 2015, memorandum –generally known as the “Yates Memo” - Deputy Attorney General Sally Yates stresses the DOJ’s intent to focus on individual culpability in corporate misconduct investigations and prosecutions.  And in both the Memo, and Yates’ November 16, 2015 speech at the American Bank Association and American Bar...

As the Delaware Supreme Court noted in Delaware County Employees Retirement Fund v. Sanchez (2015 Del. LEXIS 472), pleading facts to support an inference of a non-disinterested director for purposes of demand futility is difficult.  However, because the allegations must be considered in the entire context and most favorably to the...

On July 20, 2015, the Central District entered summary judgment on all claims asserted by the United States Securities & Exchange Commission against our client. The SEC contended that our client -- himself a victim of a Ponzi scheme -- was responsible for repaying over $1 million in withdraws and interstate that the Ponzi schemer had...

In United Techs. Corp v. Treppel (2013 Del. LEXIS 608) the Court of Chancery denied defendant United’s request to restrict the use of information obtained through a shareholder records and books inspection under Delaware General Corporation Law §220(c). In 2012, shareholder Lawrence Treppel sent a demand letter to United's board to...

In 2007, Paul Harrington purchased a MarketPower Bonus Index Annuity (the “Annuity”) from EquiTrust Life Insurance.  The Annuity uses “index accounts” to generate “index credits” that increase the annuity’s total amount based on periodic changes in the closing value of the S&P 500.  The Annuity also permitted annual withdrawals to an extent...

When M&G Polymers USA purchased a polyester plant in 2000, it also entered into a collective bargaining agreement and pension agreement that provided that specific retirees would “receive a full Company contribution towards the cost of [health care] benefits.”  The agreements were subject to renegotiation three years later.  After the...

In Universal Protection Service, LP v. Superior Court (2015 Cal. App. LEXIS 189), employer Universal sought a writ of mandate challenging the superior court’s order granting employee Franco’s demand for arbitration and ruling that the arbitrator decides the arbitrability of class action claims. In 2008, Franco signed an arbitration...

The Delaware Court of Chancery recently ruled that a corporation cannot be delegated as an expert witness in In Re Dole Food Co., Inc. (2015 Del. Ch. LEXIS 47). In the plaintiff’s breach of fiduciary duty case regarding a take-private action of Dole, the defendants identified Stifel, Nicolaus & Company, Inc. (“Stifel”) as their...

In a recent unpublished opinion (Siechert & Synn et al v. Apple Inc., 2015 Cal. App. Unpub. LEXIS 859), the California Court of Appeals affirmed the trial court’s denial of class certification in a suit brought by retailers against Apple. The plaintiffs originally brought suit against the computer giant in 2005, alleging that Apple’s decision...

In AJZN, Inc v. Yu, et al (2015 U.S. Dist. LEXIS 8407) the plaintiff brought various claims relating to corporate transactions after he transferred intellectual property rights to the defendants who subsequently failed to honor the terms of their agreements. AJZN held numerous patents, trademarks, and copyrights relating to...

In  In Re Walgreen Co Overtime Cases (231 Cal. App. 4th 437) the Court of Appeals affirmed denial of class certification in the putative class action for lunch break violations.  Plaintiffs provided both contradictory and questionable evidence in their attempt for certification and the Court quickly rejected their claim. Lead...

The U.S. District Court for the Southern District of California recently certified a class of shareholders for their securities fraud action against Bridgepoint Education, Inc. (In Re Bridgepoint Education, Inc Securities Litigation, 2015 U.S. Dist. LEXIS 5137) Bridgepoint is a for-profit post-secondary education company that owns and operates...

In Mendiola v. CPS Securities Solutions, Inc. (60 Cal. 4th 833), Plaintiff security guards brought two class action lawsuits against the security company for failure to pay wages.  The plaintiffs alleged minimum wage and overtime violations for their on-call 24-hour work schedule. The facts of the case were undisputed. ...

In two separate putative class action California Labor Code suits, the Ninth Circuit presented examples of both sufficient and insufficient evidence of the amount in controversy for CAFA (32 USC §1332(d)) removal in simultaneously released opinions. In Lacross v. Knight Transp. Inc. (2015 U.S. App. LEXIS 335), the defense successfully appealed an...

The Supreme Court unanimously reversed the dismissal of a putative class action anti-trust claim in LIBOR Multidistrict litigation suit Gelboim v. Bank of America Corp. (2015 U.S. LEXIS 756).  The Court held that such dismissal removed the plaintiffs from the consolidated proceeding, triggering the right to appeal under 28 USC §1291....

In Ibarra v. Manheim Investments, Inc. (2015 U.S. App. LEXIS 334), plaintiffs filed a putative class action suit against Manheim for violations of California Labor Code.  They specifically alleged that damages did not exceed $5 million as required for CAFA removal. Manheim nonetheless removed the case to federal court pursuant to...

In 2010 in Fosbre v. Matthews (2010 WL 2696615), four separate derivative suits against International Gaming Technology ("IGT") and its board of directors were consolidated and eventually dismissed for failure to make a demand on the board or plead demand futility.  In Arduini v. IGT, plaintiff Lawrence Arduini...

The Fourth Appellate District of the California Court of Appeals recently abandoned the Broughton-Cruz rule - the California public policy refusing to enforce mandatory arbitration provisions for Unfair Competition, False Advertising, or Consumer Legal Remedies Act claims.  Applying AT&T Mobility LLC v. Concepcion (131 S.Ct. 1740), any state...

In OPERF v. Apollo Group, Inc. (2014 U.S. App. LEXIS 23677) the Ninth Circuit affirmed dismissal of a securities fraud class action for multiple pleading deficiencies.  The Court also held that the heightened pleading standard under Fed. R. Civ. P. 9(b) and the PSLRA, applies to all securities fraud elements, including loss...

The California Court of Appeals recently overturned a sustained demurrer against pro-per plaintiffs involved in an alleged mortgage modification fraud.  In Fleet v. Bank of Am. N.A. (229 Cal.App.4th 1403), the Court found the allegations sufficient, based on the liberal standard, and granted the Fleets another chance while...