Law Advice

In the high-stakes litigation challenging its 2009 restructuring, MBIA has reached a major settlement with Morgan Stanley. But for some of MBIA’s Wall Street adversaries, the notion that MBIA had to rely on a loan to fund part of the settlement vindicates their claims that the insurer’s restructuring was a fraud. View full post on [...]

BOSTON – A federal judge in Massachusetts on Dec. 6 dismissed a consumer’s lawsuit against Staples Inc. for damages in connection with is cancellation of his store credit card, ruling that because a third party actually issued the card, Staples is not a party to the instant litigation (Gerard D. Grandoit v. Staples, Inc., No. [...]

WILMINGTON, Del. – The statutory guarantor of retirement benefits for employees of bankrupt Friendly’s Ice Cream Corp. on Dec. 5 filed its objection to the subordinated note claim of Sun Capital Partners Inc. on grounds that the note should be recharacterized as equity and that it was received by way of a fraudulent transfer (In [...]

Law affirms car insurers can't use credit scoresThe Boston GlobeA new Massachusetts law bars insurers from using credit scores to set auto insurance rates, a controversial practice that critics say discriminates against good drivers who have lost jobs, piled up medical bills, or run into other …and more » View full post on law – Google [...]

GRAND RAPIDS, Mich. – A lack of typicality led a Michigan federal judge on Nov. 29 to reject class certification of a suit alleging Fair Credit Reporting Act (FCRA) violations by a baking company with regard to its pulling of consumer reports for potential permanent employees (Leonardo Molina v. Roskam Baking Company, No. 09-475, W.D. [...]

Based on oral arguments in a securities fraud case Tuesday, the Supreme Court seemed headed toward the middle of the pro- or anti-business spectrum, giving both shareholder plaintiffs and the corporate and investment bank defendants something to like. View full post on Law.com – Newswire

For the first time, a federal judge overseeing a securities class action tied to the subprime meltdown has squarely rejected arguments by the credit ratings agencies that their wildly overgenerous ratings on mortgage-backed securities amount to protected speech under the First Amendment. View full post on Law.com – Newswire

CHICAGO – A company did not violate the Fair Credit Reporting Act (FCRA) by placing its name on a consumer’s credit report because the consumer has not shown that the company requested his credit information impermissibly, a federal judge in Illinois ruled Nov. 18 in dismissing the consumer’s amended complaint (Charles Lockett v. Check Free, [...]

Sandusky Register Ohio credit rating unaffected by union law defeatCBS News(AP) COLUMBUS, Ohio — The repeal of Ohio's collective bargaining law has no immediate credit impact on the state or its local governments, according to an analysis by a top ratings agency. More than 61 percent of voters rejected the law in last week's …Ohio [...]

Deutsche Bank and Citigroup have agreed to pay — $145 million and $20.5 million, respectively — rather than join the National Credit Union Administration’s litigation hit list. The NCUA said it will apply the settlements to $3.3 billion in charges related to credit union failures during the financial crisis. View full post on Law.com – [...]