Shareholders sue for loss of litigation rights

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted March 22, 2024 10:30 AM

Elon Musk talked about making Tesla a Nevada corporation after he lost a Delaware case that challenged his enormous compensation package. And based on a new ruling about the “redomestication” of TripAdvisor, Delaware’s Court of Chancery won’t stop him — but he’ll face a claim for damages if other shareholders wind up with “fewer litigation rights.”TripAdvisor was a Delaware corporation with two classes of stock. Gregory B. Maffei, the company’s CEO/Chair had enough of the high-vote Class B shares to give him “hard majority …

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Defendants attack assignment as champertous

When one of the plaintiffs in an antitrust case against turkey processors assigned its claim to a third party, the defendants argued the transfer was invalid as “champertous” under Illinois law. But U.S. District Judge Virginia M. Kendall of the Northern District decided “federal common law” should provide the answer.
By Steven P. Garmisa
Another judge rejects 7th Circuit case on standing

Seven weeks after a district judge in New York rejected the 7th U.S. Circuit Court of Appeal’s approach to standing for breach-of-contract claims under Article III of the U.S. Constitution, a judge in the District of Columbia added his thoughts on why Dinerstein v. Google, 73 F.4th 502 (7th Cir. 2023), is wrong.
By Steven P. Garmisa
Developments in med-mal law may signal change to health care

There is a great deal of attention paid to medical malpractice litigation and rightfully so because those cases are likely the most complex civil tort litigation with some of the highest stakes in terms of injury, emotion and damages.
By Patrick Eckler
Judge rejects ‘specific patient rule’ in case over false claims, kickbacks

Two of Allergan’s former sales representatives accused the pharmaceutical manufacturer of violating the False Claims Act and Anti-Kickback Statute by using a “speaker program” to give physicians illegal payments for prescribing two of its medications — Linzess and Viberzi — but the company insisted the complaint was defective because it didn’t “identify a specific patient to whom a doctor allegedly prescribed Linzess or Viberzi in exchange for a kickback.”
By Steven P. Garmisa
Estate plans should account for effective disposition of real estate

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With no local precedent on the effect of a “survival clause” on the representations and warranties in an asset purchase agreement, the Wisconsin Court of Appeals looked to scholarly commentary and decisions from other jurisdictions when deciding whether the seller was entitled to judgment on the pleadings.
By Steven P. Garmisa
Judge offers guidance for avoiding federal ‘trap’ in med-mal case

Joining a decision from the 6th U.S. Circuit Court of Appeals that affirmed a judgment against two “unwary litigants” who were blindsided by “surprise hurdles” created by a combined operation of the Federally Supported Health Centers Assistance Act and the Federal Tort Claims Act, Circuit Judge Amul Thapar wrote separately “to explain how litigants can avoid these traps and preserve meritorious claims.”
By Steven P. Garmisa