Federal Rule 12(b)(6)

News & Analysis as of

Ninth Circuit Affirms Dismissal of Challenge to Alleged Horizontal Adoption of Minimum Advertised Prices

In what has been described as the latest opinion on the use of hub and spoke theories to allege conspiracies in violation of Section 1 of the Sherman Act, the plaintiffs took the position that the viability of their claims...more

The Big Three: The 9th Circuit Joins The 6th Circuit and 7th Circuit in Holding That Sanctions For Bad-Faith Litigation Tactics...

In Law v. Wells Fargo Bank, N.A. (2015 S.O.S. 13–56099 – filed August 27, 2015), the Ninth Circuit joined the shortlist of Circuit Courts to hold that sanctions for bad-faith litigation tactics under 28 U.S.C. section 1927...more

FTC v. Wyndham: Third Circuit Affirms FTC's Authority to Regulate "Unfair" Cybersecurity Practices

In a highly anticipated, precedential opinion released on August 24, 2015, the Third Circuit held that the FTC had authority to regulate cybersecurity under the unfairness prong of § 45(a) of the FTC Act and that Wyndham had...more

To (b)(1) or not to (b)(1): What to Call your Rule 12 Arbitration Motion

Let’s say your client gets sued in court, the parties have an arbitration agreement, and you want to compel arbitration right away and not mess around with any other court proceedings. You already know you can make a motion...more

Fifth Circuit Revives SOX Whistleblower Claim But Rejects Allegations Not Exhausted Before OSHA

In Wallace v. Tesoro Corp., the Fifth Circuit revived a SOX whistleblower complaint that was dismissed by the U.S. District Court for the Western District of Texas, finding that the plaintiff’s alleged belief that the company...more

GlaxoSmithKline LLC. v. Glenmark Generics Inc.

Case Name: GlaxoSmithKline LLC. v. Glenmark Generics Inc., USA, Civ. Nos. 14-877-LPS-CJB; 14-878-LPS-CJB, 2015 U.S. Dist. LEXIS 52525 (D. Del. Apr. 22, 2015) (Burke, J.) - Drug Product and Patent(s)-in-Suit: Coreg®...more

If At First You Don’t Succeed, Plead, Plead Again…

In Wynn, et al. v. The New York City Housing Authority 14 Civ. 2818 (S.D.N.Y. July 29, 2015), several employees (who were either African-American or Hispanic) alleged that their employer, the New York City Housing Authority...more

Delaware Court Rejects Entire Fairness Standard in Cablevision Compensation Fight

Vice Chancellor John W. Noble, of the Delaware Chancery Court, last month refused a shareholder’s attempt to second guess Cablevision’s independent compensation committee’s decision to award the company’s founder and...more

Lawyers Entitled to Overtime Pay? Maybe So When Not “Practicing Law”

The Second Circuit revived an FLSA collective action filed by Michael Lola, an attorney licensed to practice law in California, who for fifteen months performed document review services for Skadden Arps, Slate, Meagher & Flom...more

Seventh Circuit Concludes Plaintiffs Have Standing to Sue in Data Breach Class Action

On July 20, 2015, the U.S. Court of Appeals for the Seventh Circuit held in Remijas v. Neiman Marcus Group that injuries associated with resolving fraudulent charges and protecting oneself against future identity theft after...more

N.C. Court Warns Plaintiffs that Voluntary Dismissal of an Invalid Complaint Won’t Toll the Statute of Limitations

At first glance there seems to be a saving grace in the North Carolina Rules of Civil Procedure for plaintiffs who are running up against the deadline for filing a lawsuit, i.e., Rule 41(a)(1). Rule 41(a)(1) provides that if...more

When A Motion To Strike Can Be Proper

After a defendant succeeded on a Motion for a More Definite Statement, a plaintiff added more detail to the claims that had been dismissed. The defendant responded to the beefed up allegations with a Motion to Strike....more

California District Court Holds that Internal Tipsters Are Protected Under Dodd-Frank

On May 5, 2015, in Somers v. Digital Realty Trust Inc., No. C-14-5180, the U.S. District Court for the Northern District of California held that an internal complaint of an alleged securities law violation is sufficient to...more

Litigating Injury in a 75-1.1 Case: The 12(b)(1) vs. 12(b)(6) Distinction

In cases under N.C. Gen. Stat. § 75-1.1, it’s important to distinguish arguments under Rule 12(b)(1) from arguments under Rule 12(b)(6). On a Rule 12(b)(6) motion to dismiss for failure to state a claim, a court generally...more

Sixth Circuit Reaffirms No Reasonable Religious Accommodation Warranted in “Mark of the Beast” Case

In Yeager v. FirstEnergy Generation Corp., the Sixth Circuit recently affirmed the Northern District of Ohio’s judgment dismissing Yeager’s complaint under Federal Rule of Civil Procedure 12 (b)(6) for failure to state a...more

Lewis v. Aimco Properties, L.P, et al., C.A. No. 9934-VCP (Del. Ch. Feb. 10, 2015) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery (i) granted in part certain defendants’ motion to dismiss for lack of subject matter jurisdiction, specifically ordering a stay pending arbitration; and (ii) granted certain...more

Delaware’s Unclaimed Property Audit Program Dealt Blow

The judge in a case challenging Delaware’s use of sampling and extrapolation to determine unclaimed property liability denied the state’s motion to dismiss and in doing so, seriously questioned the State’s approach. ...more

Great Hill Equity Partners IV, LP v. SIG Growth Equity Fund I, LLLP, C.A. No. 7906 (Del. Ch. Nov. 26, 2014) (Glasscock, V.C.)

In this memorandum opinion, the Court of Chancery largely denied but granted in part defendants’ motion to dismiss claims relating to a 2011 merger in which plaintiffs Great Hill Equity Partners IV, LP and related entities...more

Higher Educ. Mgmt. Group, Inc. v. Mathews et al., C.A. No. 9110-VCP (Del. Ch. Nov. 3, 2014) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery granted defendants’ motion to dismiss derivative claims asserted by plaintiff stockholders on the grounds that the plaintiffs failed to adequately plead demand futility under...more

Employment Alert: Ninth Circuit Adopts Strict Pleading Requirement for FLSA Violation Claims

In Landers v. Quality Communciations, Inc., et al., No. 12-15890, published November 12, 2014 (Landers), the Ninth Circuit held it is not enough for a complaint under the Fair Labor Standards Act to merely allege that the...more

Court Follows 5th Circuit Asadi Decision, Dismisses Dodd-Frank Whistleblower Claim

The U.S. District Court for the Eastern District of Wisconsin in Verfuerth v. Orion Energy Systems, Inc., No. 14-cv-352 (E.D. Wis. Nov. 4, 2014) recently ruled that the Dodd-Frank whistleblower protection provision does not...more

Distinguishing Standing and Injury in 75-1.1 Cases

A Minnesota judge was probably enjoying fond October baseball memories when he recently wrote a notable decision in a putative class action that involved kosher hot dogs. That decision, Wallace v. ConAgra, addresses the roles...more

Back on the Case: Fifth Circuit Reexamines Detective's Race Suit

Title VII of the Civil Rights Act of 1964 requires that an individual show that he or she was subjected to an "adverse employment action" in order to proceed on a claim of discrimination. Courts have defined "adverse...more

Illinois Federal Court Grants Neiman Marcus’ Motion to Dismiss Data Breach Action on Article III Standing

Once again, a court finds that data breach plaintiffs do not have the requisite Article III constitutional standing to pursue civil action against a retailer – itself the victim of a cyber attack. Last week, the United...more

“Mark of the Beast” Claim Busts

In Yeager v. FirstEnergy Generation Corp., No. 5:14cv-567 (N.D. Ohio June 27, 2014), a plaintiff asserted a religious discrimination claim for refusal to hire. In the complaint, he alleged he was not hired because he refused...more

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