Author: Gibbons P.C.

Leveling the E-Discovery Playing Field: Court Shifts Costs to Putative Class Action Plaintiffs Prior to Class Certification

In a case of first impression, a federal judge in Pennsylvania shifted the costs of e-discovery to the plaintiffs in a putative class action before deciding the issue of class certification. Addressing concerns of fairness to defendants in class actions, particularly given that the parties’ respective discovery burdens are “asymmetrical,” the Court held that the plaintiffs should bear the costs arising from their extensive discovery requests. The Court also considered the role of plaintiffs’ counsel as a participant in the process, noting that the plaintiffs are represented by a “very successful and well regarded” class action law firm and reasoning that if the plaintiffs “have confidence in their contention that the Court should certify the class, then plaintiffs and their lawyers should have no objection to making an investment.” Boeynaems v. LA Fitness Int’l, LLC.

Department Co-Chair, Russell Bershad, to Speak at the 11th Annual RealShare New Jersey Conference

Russell Bershad, Co-Chair of the Gibbons Real Property & Environmental Department, will be a featured panelist at the 11th Annual RealShare New Jersey Conference taking place on Wednesday, September 19, in New Brunswick, NJ. This year’s RealShare New Jersey Conference brings together industry leaders who will provide insight into the latest trends within the commercial real estate market.

Between A Rock and Hard Place: Twitter’s Back Now Against The Wall In Harris Case

That didn’t take long. A panel of the Appellate Division, First Department in People of the State of New York v. Harris, Index No. 080152/2011 has denied Twitter’s motion for a stay of enforcement of the Trial Court’s order requiring the production of Mr. Harris’s tweets. On Tuesday September 11, the Trial Court warned Twitter during a hearing on the District Attorney’s motion to hold Twitter in contempt that Twitter must produce the information in question by Friday September 14 or face a finding of contempt. Manhattan Criminal Court Judge Sciarrino further warned that he would review Twitter’s most recent quarterly financial statements in determining the appropriate financial penalty if Twitter does not obey the order. Denial of the stay and the Trial Court’s expected insistence on compliance puts Twitter in a difficult position as production of the tweets will effectively moot their appeal of Judge Sciarrino’s order. Twitter’s next move should be interesting. We will continue to keep you apprised.

Crucial Issues in Investigations

Does your company conduct internal investigations? If so, you should be asking yourself these four crucial questions: Is the right person conducting the investigation? Is the investigation thorough? Is it taking too long? Is the company following through? Click here to read more about these important internal investigation concerns in an article recently written by Kelly Ann Bird and published by The Metropolitan Corporate Counsel.

Twitter Appeals Order to Produce Tweets

We previously reported on the New York District Attorney’s attempts to obtain tweets by a criminal defendant in People of the State of New York v. Harris, Index No. 080152/2011 and the corresponding challenges asserted by the individual user/defendant and Twitter itself on May 23 and June 7. Defendant is accused of disorderly conduct for allegedly having blocked traffic during an Occupy Wall Street protest. The District Attorney has sought defendant’s simultaneous tweets that allegedly will undermine his defense that he was forced onto the street by police officers. The trial court first denied defendant’s motion to quash the subpoena served on the social networking site Twitter and then denied Twitter’s own motion to quash.

The Gibbons Institute of Law, Science & Technology presents “Views from the Bench”

Please join us Tuesday, October 16, as the Gibbons Institute of Law, Science & Technology welcomes the Honorable Kathleen M. O’Malley, Circuit Judge, U.S. Court of Appeals for the Federal Circuit, to present Views from the Bench at the Newark Club. The lecture will begin at 6:00 pm followed by a Networking Reception at 7:30 pm. CLE credits for NJ and NY are offered.

We Produced Privileged Documents; Now What?

The production of a party’s privileged documents is every lawyer’s–and client’s–worst nightmare because it provides additional facts (and avenues for discovery) as well as legal analysis of those facts that may not have existed. In layman’s terms, it is a game changer. A recent decision plays out this very scenario and shows that despite the production of privileged documents, they can be salvaged if the producing party acted properly before and after the disclosure.

Second Circuit Holds That a Post-Disclosure Stock Price Rebound Does Not Per Se Preclude Damages for Alleged Federal Securities Fraud

Recently, the Second Circuit vacated a District Court’s dismissal of a securities fraud action brought by Acticon AG, shareholder of China North East Petroleum Holdings Ltd. (“NEP”), for failure to plead economic loss—a necessary element to maintain a private damages action under § 10(b) of the Securities Exchange Act of 1934 (“§10(b)”). Acticon had multiple opportunities to, but did not, sell its NEP shares at a profit after NEP’s disclosure of the alleged fraud. The Court held that economic loss is not conclusively negated at the pleadings stage where the price of a security recovers shortly after a disclosure of alleged fraud. Significantly, in drawing all reasonable inferences in favor of the plaintiff under NEP’s 12(b)(6) motion, the Court explained that a rise in the price of a stock following a corrective disclosure requires an inquiry into whether the security rose for “reasons unrelated to [the] initial drop,” and thus introduces factual questions and competing theories of causation that would be inappropriate to resolve on a motion to dismiss.

Yums v. Nike Update — Two Amicus Curiae Briefs Filed: One Arguing Vacatur and Remand and the Second in Support of Yums

Last week, in a prior blog, we reported that Petitioner Already, LLC d/b/a Yums (“Yums”) filed its opening brief with the Supreme Court, arguing that a trademark registrant’s post-suit covenant not to sue does not divest a Federal District Court of standing to review a challenge to the validity of the underlying trademark registration.

Color Trademarks Remain in Fashion: Second Circuit Sides with Louboutin

Earlier today, the United States Court of Appeals for the Second Circuit issued its long-awaited decision in Christian Louboutin S.A. v. Yves Saint Laurent America Holding, Inc.. The Appellate Court decision reversed the lower court’s finding that a single color can never serve as a trademark for fashion. It also found that Louboutin’s red, lacquered shoe outsole had acquired distinctiveness and is protectable as a trademark. However, the Court went on to state that the trademark is “limited to uses where the red outsole contrasts with the color of the remainder of the shoe.” The case has now been remanded to the District Court for further proceedings.