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Federal Court Report - Fourth Circuit Clarifies Pleading Standards and (Again) Rejects Affidavits that Contradict a Party’s...

In Stevenson v. City of Seat Pleasant, Maryland, No. 12-2047 (4th Cir. Feb. 21, 2014), the Fourth Circuit spent some time cleaning up a rather messy case involving the alleged use of excessive force by members of a police...more

5/28/2014 - Affidavits Depositions Pleading Standards Pleadings Rules of Civil Procedure

Fourth Circuit Affirms Dismissal of Securities Claim Alleging Accounting Fraud

If you thought it was difficult to make a federal securities fraud claim stick in the Fourth Circuit, the court has now raised the bar even higher. The Fourth Circuit recently affirmed a trial court’s dismissal of securities...more

5/27/2014 - Balance Sheets Financial Statements Investment Partnerships MuniMae Private Securities Litigation Reform Act of 1995 Rule 10b-5 Section 10(b) Securities Fraud

Federal Court Report - Sometimes it’s Just Better to Leave “Well-Enough” Alone

In Sisk v. Abbott Laboratories, — F.R.D. –, No. 1:11-cv-159 (W.D.N.C. Feb. 10, 2014) (J., Reidinger), after prevailing in part on its motion for summary judgment, the defendant asked the court for the Western District to...more

4/8/2014 - Affirmative Defenses Food Contamination Negligence Summary Judgment Twombly/Iqbal Pleading Standard

North Carolina Court of Appeals Upholds Arbitration Clauses in Consumer Agreements

The North Carolina Court of Appeals has recently enforced arbitration clauses in short-term “payday” loan contracts, requiring the borrowers to bring their claims in arbitration rather than in court. In doing so, the Court...more

4/4/2014 - Arbitration Agreements Class Action Class Action Arbitration Waivers Payday Loans

North Carolina Business Court Limits Unfair and Deceptive Trade Practice Claims Concerning Internal Corporate Matters

On January 28, 2014, the North Carolina Business Court dismissed an unfair and deceptive trade practice claim alleging that corporate directors structured the sale of a corporation in a manner that shortchanged its common...more

2/7/2014 - Preferred Shares Shareholder Litigation Shareholders UDAAP

Members of Nonprofit Corporations Can Bring Derivative Actions – But They May Have to Pay a Price

A recent decision by the North Carolina Court of Appeals serves as a reminder to North Carolina nonprofit corporations that their members can bring derivative actions on behalf of the nonprofit. But, if such actions are...more

1/29/2014 - Attorney's Fees Derivative Suit Non-Profits

Supreme Court Limits Reach of General Jurisdiction for Corporations

The Supreme Court’s decision in Daimler AG v. Bauman (Jan. 14, 2014), dealing with the topic of “general jurisdiction,” significantly limits a plaintiff’s options as to where to bring a lawsuit. ...more

1/24/2014 - DaimlerChrysler DaimlerChrysler v Bauman Jurisdiction Minimum Contacts SCOTUS

Federal Court Report - Fourth Circuit Applies “Nerve Center” Test for Diversity Jurisdiction

On January 7, 2014, the Fourth Circuit applied the “nerve center” test for determining a corporation’s principal place of business for diversity jurisdiction. The Supreme Court recently adopted the nerve center test in Hertz...more

1/12/2014 - Diversity Jurisdiction Jurisdiction Principal Place of Business

North Carolina Supreme Court Addresses Duties of Corporate Directors

On November 8, 2013, the North Carolina Supreme Court issued a rare opinion addressing the duties of corporate directors and reaffirming that those duties are generally owed only to the corporation itself rather than the...more

12/20/2013 - Board of Directors Corporate Counsel Corporate Governance Derivative Suit Directors Fiduciary Duty Shareholders

North Carolina Business Court Holds that Shareholders Cannot Directly Sue Officers and Directors in Merger Challenge

A recent decision by the North Carolina Business Court potentially makes it more difficult for shareholders to challenge mergers and acquisitions in North Carolina. The Court held that an action against a company’s officers...more

11/27/2013 - Board of Directors Corporate Officers Derivative Suit Fiduciary Duty Mergers Professional Liability Shareholders

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