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There’s a new front in the battle over the talc cases. A group of cancer victims sued Johnson & Johnson, accusing the healthcare company of committing fraud through repeated and continued efforts to use a shell company’s bankruptcy to resolve tens of thousands of lawsuits alleging its talc products contained asbestos and caused cancer, Dietrich Knauth reports.
Five plaintiffs seeking to represent over 50,000 people who have sued J&J over its talc products filed the proposed class action in New Jersey federal court.
J&J’s worldwide vice president of litigation, Erik Haas, said the lawsuit was a “Hail Mary pass” by plaintiffs’ lawyers who don’t want their clients to vote on the company’s latest proposed bankruptcy settlement. “Why are they so desperate to stop the vote?” Haas said. J&J has said that its baby powder and other talc products are safe, do not contain asbestos, and do not cause cancer.
The company’s two earlier efforts to resolve the litigation through bankruptcy failed after courts ruled that J&J and its subsidiary were not in financial distress. The company has said that it plans to pursue a third bankruptcy once it gets enough votes to support a $6.48 billion talc settlement.
The lawsuit seeks a ruling that the Texas two-step transaction was fraudulent. J&J says the planned third bankruptcy for its unit will be different because it will have support from over 75% of the people with talc-related claims.
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- Facing claims that it fired one of its U.S. lawyers for seeking maternity leave, DLA Piper is fighting to conceal details of past pregnancy discrimination complaints that it says must remain confidential. Plaintiff Anisha Mehta and her lawyers at Wigdor rejected an offer by the firm to provide affidavits describing the earlier claims instead of producing the full records. The lawyers said DLA Piper is “hiding behind” evidentiary rules that do not apply.
- Beleaguered Golden Gate University School of Law could be saved under the control of a court-appointed receiver, a group of students and alumni argued in a court filing challenging the school’s planned closure. The law school’s alumni association and four current students asked a San Francisco judge not to throw out their lawsuit against Golden Gate University, noting that Western State College of Law was poised to shut down in 2019 until a receiver secured a sale that saved the Southern California school. A similar effort could prevent Golden Gate University from closing down its JD program, the plaintiffs said in the filing.
- FCC Chairwoman Jessica Rosenworcel proposed requiring disclosure of content generated by artificial intelligence in political ads on radio and TV. Rosenworcel is asking her colleagues to vote to advance a proposed rule that would require disclosure of AI content in both candidate and issue advertisements, but does not propose to prohibit any AI-generated content within political ads.
- The start of the criminal tax trial for President Joe Biden’s son was postponed until Sept. 5 from June 20, which Hunter Biden’s legal team requested because of conflicts with a separate criminal trial in Delaware.
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That is how much Intercontinental Exchange will pay to settle charges its subsidiaries failed to immediately alert the SEC of a cyber intrusion incident. In April 2021, ICE discovered someone had installed a code into a VPN device used to remotely access the corporate network, but the personnel did not notify subsidiaries for several days, regulators found. That delay meant the subsidiaries, including the New York Stock Exchange, violated agency rules that require immediate notification to the SEC, the agency said. The SEC has been pushing for more prompt disclosures of cybersecurity incidents as part of a broader effort by regulators to address growing risks of such attacks.
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In the 18 months since the 9th Circuit agreed hear an interlocutory appeal on whether Apple, Google and Meta are immune from claims that they promoted illegal gambling by processing payments for online casinos, the tech giants and the consumers suing them have spared no effort, plying the appeals court with briefs, responding to friend-of-the-court filings from nine tech and civil rights groups and presenting an hour of oral arguments to a panel of 9th Circuit judges last month. Never mind all that: On Tuesday, writes Alison Frankel, the 9th Circuit tossed both the tech companies’ appeal and a cross appeal by plaintiffs, ruling that it did not have jurisdiction to hear the case. Frankel explains why – and contemplates how the long appellate detour might impact for both sides.
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“There will be no foreclosure.”
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—Graceland operator Elvis Presley Enterprises, which was facing a possible foreclosure on the legendary mansion until a Tennessee judge blocked the sale following allegations of fraud against the company that had intended to auction it off. A representative for the company, Naussany Investments & Private Lending, told Reuters it would withdraw all of its claims over Graceland after a court hearing in Memphis where Shelby County Chancellor JoeDae Jenkins issued an injunction halting the foreclosure sale scheduled for today.
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- U.S. District Judge James Donato in San Francisco will weigh Epic Games’ proposed court-ordered injunction that would force Google to make a series of changes to its app store Play. Epic, maker of the popular Fortnite game, wants to open up Play to greater competition after a jury found Google had abused its power as a gatekeeper for apps on the Android mobile platform. Google has argued Epic’s proposal goes too far.
- U.S. District Judge Liles Burke in Montgomery, Alabama, is scheduled to hold a hearing ahead of a trial over whether 11 attorneys at major LGBTQ rights groups and law firms should be sanctioned for engaging in impermissible judge-shopping to steer litigation challenging the Republican-led state’s ban on gender-affirming medical care for transgender youth away from a conservative judge.
- Baltimore’s former top prosecutor, Marilyn Mosby, is scheduled to be sentenced in federal court for making a false statement on a mortgage application for a Florida condominium purchase, adding to two perjury convictions.
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Court calendars are subject to last-minute docket changes.
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- U.S. District Judge Roy Altman temporarily blocked part of a Florida law that imposes criminal penalties for willfully transporting people who lack legal immigration status into the state. The law, which took effect in 2023, amended the crime of human smuggling to classify such cases as felonies.
- A judge in Hawaii ordered Bristol Myers Squibb and Sanofi to pay more than $916 million to the state for failing to warn non-white patients of health risks from its blood thinner Plavix, up from an earlier judgment of $834 million. The ruling from Judge James Ashford, of Hawaii’s First Circuit Court, follows a non-jury trial held last fall. It was the second trial in the case, after the state’s Supreme Court found that the judge in the first trial that resulted in the $834 million award had made a legal error.
- The Biden administration has asked the U.S. Supreme Court to vacate a decision that 21 pharmaceutical and medical equipment companies must face a lawsuit claiming they helped fund terrorism that killed or injured hundreds of American service members in Iraq. The DOJ presented the White House’s views in a filing at the request of the justices, saying a ruling by the Supreme Court in an unrelated case involving Twitter last year undermined the plaintiffs’ federal Anti-Terrorism Act claims.
- Apple executive Phil Schiller fielded hours of questions from lawyers and a California federal judge, as the company battles claims that it violated an order to allow more competition in its lucrative App Store. It was Schiller’s second day of testimony at the court hearing in Oakland, where “Fortnite” maker Epic Games has asked U.S. District Judge Yvonne Gonzalez Rogers to hold Apple in contempt.
- Eight young Alaska residents sued the state seeking to block a major natural gas project, the latest in a string of climate-change related lawsuits by youths arguing that government policies promoting fossil fuels violate their rights. The Anchorage state court lawsuit, brought by a group of plaintiffs ranging in age from 11 to 22, alleges that an Alaska law mandating the project’s development infringes on their due process rights and other constitutional protections by causing the release of greenhouse gases that harm their health and livelihood.
- U.S. District Judge Mark Mastroianni in Boston sharply questioned arguments by several Massachusetts cannabis businesses and their attorney David Boies that the federal prohibition on marijuana was unconstitutional, saying his hands may be tied because the U.S. Supreme Court already upheld the law. Boies said he was not asking Mastroianni to overrule the high court but instead conclude its decision simply could not be applied anymore because the landscape surrounding marijuana regulation had changed so much over two decades.
- U.S. District Judge Mark Pittman allowed a lawsuit filed by Exxon against two activist groups seeking to bar their climate resolution to go ahead against one of the two groups. The oil company’s lawsuit raised alarm among activists and proxy advisers who argued it would muzzle debate among shareholders and public companies.
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