Proposed amendments to Delaware's General Corporation Law that were prompted by several recent Chancery Court rulings sailed through the state Senate last week despite loud opposition from corporate law professors and other Chancery Court watchers, and Tesla shareholders filed two new suits against CEO Elon Musk. 
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WEDNESDAY, JUNE 19, 2024 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

Catching Up With Delaware's Chancery Court

By Leslie A. Pappas

Proposed amendments to Delaware's General Corporation Law that were prompted by several recent Chancery Court rulings sailed through the state Senate last week despite loud opposition from corporate law professors and other Chancery Court watchers, and Tesla shareholders filed two new suits against CEO Elon Musk. 

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Hertz Warrant Holder Sues In Chancery For Contract Breach

By Jeff Montgomery

Two investment affiliates of Discovery Capital Management LP have sued Hertz Global Holdings Inc. in Delaware's Court of Chancery, alleging willful failure to redeem warrants issued in 2021 as part of the company's Chapter 11 and demanding at least $187 million plus interest.

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FTX, Customers Lay Claim To SBF's $11B Forfeiture Tab

By Ben Zigterman

FTX told the New York federal court that hit the company's founder Sam Bankman-Fried with a 25-year prison sentence and an $11 billion forfeiture order that the now-defunct cryptocurrency exchange has a right to those funds, while a group of its former clients asserted a similar claim for itself.

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SEC Alleges Texas Man Offered Virgin Sham $200M 'Lifeline'

By Gina Kim

Securities regulators sued a venture capitalist and his investment firm in Texas federal court Monday, accusing the firm of making a bogus offer to invest $200 million into Virgin Orbit last year despite having less than $1 in its bank account and causing stock prices to swell before plummeting when the deal collapsed.

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POLICY & REGULATION

CFPB Reaches $7M Deal In Suit Over Ex-Exec's Money Moves

By Jon Hill

The Consumer Financial Protection Bureau said Monday that it will accept $7 million from a former online loan executive and his wife to resolve a Kansas federal court lawsuit in which the agency accuses them of trying to keep millions more dollars out of the agency's reach.

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COURT OF CHANCERY

Investor Seeks Del. Anti-Suit Shield, Alleging Brazil Co. Threat

By Jeff Montgomery

A Mexico City resident who invested in a Delaware limited partnership group that builds telecommunication towers in Brazil on Monday petitioned Delaware's Court of Chancery for an anti-suit injunction, citing a defamation lawsuit threat made after he inquired about going concern risk reports.

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IN BRIEF

Brief

Tesla Says Texas Charter, Musk Pay Have Impact In Delaware

By Jeff Montgomery

Pointing to recent Tesla stockholder votes to reincorporate in Texas and approve a mammoth Elon Musk pay package voided in Delaware, an attorney for Tesla has asked the Court of Chancery to reconsider holding a July 8 hearing on a proposed multibillion fee for class attorneys who won the Musk salary put-down.

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Brief

Drugmaker, PE Investor Sued In Del. Over 'Unfair' Deal Terms

By Jeff Montgomery

Clinical-stage biotechnology firm Omega Therapeutics' board entered into an "unfair" agreement to develop a new drug with the company's controlling private equity stockholder that was heavily tilted in favor of the majority equity holder and Omega insiders, an investor alleged in a lawsuit in Delaware's Chancery Court.

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EXPERT ANALYSIS

Think Like A Lawyer: Always Be Closing

When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.

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LEGAL INDUSTRY

The 2024 Lawyer Satisfaction Survey

Firms are making their attorneys happy in most areas of professional life, including culture and compensation, but stress is a constant struggle and many are taking minimal vacations, according to the latest survey from Law360 Pulse.

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Akin Elects US, London Duo To Take Over From Veteran Chair

By Ashish Sareen

Akin Gump Strauss Hauer & Feld LLP said on Tuesday that it has elected the partner in charge of its New York office and a corporate specialist in London to jointly lead the firm as its longtime chair prepares to step down next year.

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NY High Court Denies Trump's Gag Order Appeal

By Frank G. Runyeon

New York state's highest court on Tuesday denied Donald Trump's rapid appeal of the gag order that limited his speech during his criminal hush money trial, finding it did not raise serious constitutional issues.

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Dems' Absences Bring Canceled Vote On Ore. Federal Judge

By Courtney Bublé

The Senate scrapped a vote on Tuesday for Magistrate Judge Mustafa Taher Kasubhai's nomination to a district court judgeship in the District of Oregon amid vast Republican opposition.

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Del. House Panel Splits On Senate-Passed Corp. Law Change

By Jeff Montgomery

A divided Delaware House committee released on Tuesday contested amendments to the state's general corporation law, sending the measure toward a full House vote after sometimes edgy testimony that included a committee chair's shutdown of an opposing law professor's reference to HBO's seamy corporate drama series "Succession."

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The 2 New Jersey Attys Ensnared In A Mogul's Extortion Rap

By George Woolston

New Jersey businessman George E. Norcross III may be the alleged mastermind of an extortion scheme to reap millions in tax credits on waterfront property in a distressed city, but an explosive indictment also reveals the purported roles of two attorneys with close ties to the Democratic Party.

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Panel Laments 'Hunger Games' Tactics In Mich. Judicial Races

By Carolyn Muyskens

A Michigan Court of Appeals panel has expressed concern that judicial candidates are weaponizing the complexity of Michigan's filing requirements to eliminate their competition, with one judge commenting that "contests for vacant judgeships all too often have turned into the Hunger Games." 

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McElroy Deutsch Says Exec Embezzled Money For Home

By Tracey Read

McElroy Deutsch Mulvaney & Carpenter LLP has doubled down on its bid for a constructive trust on the home of two former executives accused of stealing from the firm.

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9 Firms Vie To Lead Suit Over Ad Tech Co.'s Microsoft Ties

By Sydney Price

Pomerantz LLP, Levi & Korsinsky LLP and several other firms have filed competing bids to lead a proposed shareholder class action alleging that shares of ad tech company Perion Network declined nearly 40% after its strategic partner Microsoft Bing "unilaterally" changed its search advertising pricing.

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Healthcare Tensions Equal Business For Litigation Funders

By Ryan Boysen

As rampant consolidation collides with inflation-squeezed margins in the American healthcare system, tensions between service providers and insurers are at the breaking point and increasingly boiling "over into litigation," providing opportunities for litigation funders, according to a new article by Burford Capital LLC.

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Ariz. County Says New Kari Lake Vote Claims Merit Sanctions

By Ali Sullivan

Maricopa County officials are slamming former gubernatorial candidate Kari Lake's bid to unravel a Ninth Circuit decision affirming the toss of her lawsuit over Arizona's voting machines, contending that the "fatally flawed" effort warrants sanctions.

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DC Bar Counsel Moves To Suspend Hunter Biden's Law License

By Alison Knezevich

Attorney disciplinary authorities in the nation's capital have moved to suspend Hunter Biden's license to practice law there after he was convicted of three federal gun charges last week.

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Dems Ask For Update On Justice Thomas Gifts Investigation

By Katie Buehler

A pair of Democratic lawmakers have asked the judiciary's governing body for an update on its review of U.S. Supreme Court Justice Clarence Thomas' failure to disclose years of luxury gifts and travel he received from conservative billionaires.

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Cuomo's Ex-Aide Details Sex Harrassment Claims In New Suit

By Dorothy Atkins

Former New York Gov. Andrew Cuomo's onetime executive assistant has filed a civil lawsuit in New York state court, accusing Cuomo of "outrageous sex discrimination and retaliation" roughly two years after related misdemeanor charges over the alleged misconduct were dropped.

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LAW FIRMS IN TODAY'S NEWS

Advisors LLC

Akin Gump

Bernstein Liebhard

Block & Leviton

Boies Schiller

Brown & Connery

Burgess Law Group

Critchley Kinum

Cuti Hecker

DLA Piper

Fox Rothschild

Glancy Prongay

Glavin PLLC

Heyman Enerio

Holzer & Holzer

Husch Blackwell

Kaplan Fox

Levi & Korsinsky

Marino Tortorella

McElroy Deutsch

Morgan Lewis

Mukasey Young

Parker Daniels Kibort

Parker McCay

Paul Hastings

Pomerantz LLP

Poole Huffman

Spencer Fane

Sullivan & Cromwell

White & Case

Winston & Strawn

Wolf Popper

COMPANIES IN TODAY'S NEWS

American Hospital Association

Burford Capital LLC

Certares Management LLC

Chegg Inc.

Conner Strong & Buckelew

Cooper Health System

De Novo

Delaware State Bar Association

Discovery Capital Management LLC

Envision Healthcare Corp.

Flagship Pioneering

Hertz Global Holdings Inc.

Home Box Office Inc.

Knighthead Capital Management LLC

LinkedIn Corp.

Microsoft Corp.

Moelis & Co.

New Jersey State Bar Association

Novo Nordisk A S

Omega Therapeutics Inc.

Perion Network Ltd.

Rowan University

Sun Bancorp Inc.

Tesla Inc.

The AES Corp.

The District of Columbia Bar

The Leadership Conference on Civil & Human Rights

Therapeutics Inc.

Toronto-Dominion Bank

Twitter Inc.

U.S. Anesthesia Partners

U.S. Vision Inc.

United Way Worldwide Inc.

Virgin Galactic Holdings Inc.

Virgin Orbit LLC

Warner Bros. Discovery Inc.

Warner Bros. Entertainment Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Public Employees' Retirement System

Consumer Financial Protection Bureau

Delaware Court of Chancery

Delaware River Port Authority

Federal Trade Commission

Internal Revenue Service

New York Attorney General's Office

U.S. Attorney's Office for the District of Kansas

U.S. Attorney's Office for the Southern District of New York

U.S. Court of Appeals for the Ninth Circuit

U.S. Department of Justice

U.S. District Court for the Northern District of Texas

U.S. District Court for the Southern District of New York

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of Kansas