Staff, Author at Legal Reader

XPO Logistics to Buy Con-Way for $3 Billion

September 10, 2015

Although the acquisition had been expected to easily pass a Federal Trade Commission (FTC) antitrust regulatory review, Morningstar has reported that New York-based firm Faruqi & Faruqi is investigating Con-Way’s board over alleged violation of fiduciary duties for selling the company at the $47.60 share price, that number is down from the stock’s 52-week high of $59.00. It remains to be seen if the inquiry will halt the deal’s approval. XPO expects the purchase to be completed by October.

FDA Issues Dosing Warning for Collegium’s Experimental Painkiller

September 10, 2015

Unlike most opioid painkillers, which are either taken on an empty stomach or without regard for food intake, users must take Xtampza after eating to release the maximum effects. The FDA warned that if Xtampza is taken without food, it will lead to inadequate pain control, and contribute to abuse and overdose by users who are seeking to remedy their pain.

New Justice Department Corporate Crime Policies Place Crosshairs on Individuals

September 10, 2015

Although the Justice Department, along with New York’s U.S. Attorney’s office, have extracted record fines from companies that committed fraud in recent years, many have noted that the department has not prosecuted a single executive from the investment banks responsible for the housing and banking crisis.

Staples-Office Depot Merger under Further Review

September 9, 2015

The combined company would merely be a major competitor in the entire office-supply business. Still, the FTC is concerned that by combining the companies, the number of potential large-scale suppliers will decrease. The agency is concerned if the merger will lead to negative changes in the large-scale client sector. Royal Bank of Canada’s head of global procurement Peter Conrod likely summarizes the FTC’s internal debate with his divided opinion. Conrod told the Wall Street Journal, “Typically consolidation is good because it allows us to deal with fewer suppliers, but you get to a point where it’s too consolidated and you don’t have too much choice.”

Appeals Court Gives Go-Ahead on BP Investor Suit

September 9, 2015

Last year, Judge Ellison permitted the certification of a class of investors who purchased BP stocks from April 26 to May 28, 2010. Ellison, however, ruled that investors who purchased BP securities in the 2 ½-year period before the spill were not permitted to sue as a class. Disappointed, both BP and the plaintiffs’ attorneys appealed the rulings. Writing for the unanimous panel, Circuit Judge Patrick Higginbotham found that the question of BP executives’ forthrightness during the early days of the spill was “undeniably common to the class, and is susceptible of a class-wide answer.”

Erin Brockovich Fights against Pollution for Navajo Nation

September 9, 2015

Brockovich and Begaye toured the riverfront and some of the hardest hit agricultural areas, culminating with a speech to students at a Shiprock, New Mexico highs school. Insisting that the government clean up its mess, Brockovich said “They did not tell the truth about the amount. There were millions and millions of gallons.” Brockovich accused federal regulators of lax oversight, both in the Navajo Nation, and throughout the U.S.

Goldman Sachs Scores Rare Victory in Class-Action Dismissal

September 9, 2015

In 2010, the U.S. Senate’s Permanent Subcommittee on Investigations chair Carl Levin (D-MI), flagged the investments known as the Hudson Mezzanine funding deals, accusing Goldman Sachs of betting against its own clients during the MBS meltdown in 2008.

Baltimore Settles with Family of Freddie Gray

September 8, 2015

Gray’s family will receive $2.8 million during the 2015 fiscal year, which began in July, and $3.6 million next year. The settlement must still be approved by mayoral-controlled spending panel, which is expected on Wednesday. Gray died on April 19th while in police custody, a week after being arrested by Baltimore police. Six officers have been indicted and face a pre-trial hearing on Thursday.

Legal Facts: The Economic Loss Doctrine in Hawaii

September 8, 2015

Many are familiar with lawsuits when a car accident damages someone’s car while also causing medical expenses. But what happens if a product only causes economic loss by damaging itself instead of damaging other property? For instance, the generator in a $300,000 luxury motor home produces arcing which ignites engine oil and the resulting fire

AutoNation CEO: ‘Company will not Sell Recalled Vehicles’

September 8, 2015

In an industry that set a record for recalls in 2014, and with over 34.5 million vehicles recalled by the end of July, 2015, Jackson believes that dealers should take a more active role in protecting consumers. The CEO said, “If every time a vehicle, new or used, moves through the franchised automotive retail system, every recall is completed, then the completion rate on recalls in total, both how fast they get done and the percentage that get done, will increase significantly.”

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