Lloyd's Corporate Litigation Reporter
reports litigation news involving non-bankrupt public companies. It
covers updates on pending and recently settled lawsuits -- including
tax issues, insurance disputes, labor problems, shareholder suits,
antitrust suits, product liability suits, toxic torts, personal injury
suits, etc.
DaimlerChrysler AG, Genentech Inc., and Corning Inc. are the top three
companies that face the largest claims for the Corporate Litigation Reporter
publication period Jan. 1 to April 12, 2007.
Company
Claim Amount
Details
1. DaimlerChrysler AG
Published April 11, 2007
US$4.74B
DaimlerChrysler
AG's subsidiary, DaimlerChrysler Financial Services AG, continues to
face arbitration proceedings filed by the Federal Republic of Germany,
which submitted its statement of claims in August 2005.
The Federal Republic of Germany is claiming lost revenues of EUR3.51
billion plus interest (EUR236 million through July 31, 2005 plus 5
percent per annum over the respective base rate since then) for the
period Sept. 1, 2003, through Dec. 31, 2004.
The Federal Republic of Germany also claims contractual penalties of
about EUR1.65 billion through July 31, 2005 plus interest, EUR107
million through July 31, 2005 plus five percent per annum over the
respective base rate since then.
2. Genentech Inc.
Published March 28, 2007
US$1.4B and US$4.1B
Genentech
Inc. says the final outcome of Dr. Kourosh Dastgheib's lawsuit against
the Company relating to its Lucentis(R) product cannot be determined at
this time because the plaintiff may still seek relief from the court of
appeals.
Dr. Dastgheib has asserted
multiple claims for monetary damages, including a claim under an unjust
enrichment theory that he is entitled to the entire net present value
of projected Lucentis sales, which he claims is between US$1.4 billion
and US$4.1 billion.
3. Corning Inc.
Published April 10, 2007
US$2.64B
Samsung
Corning Precision Glass Co., Ltd., which is 50% owned by Corning Inc.,
and Samsung Corning Co. Ltd. are co-defendants in a lawsuit pending in
the courts of Korea filed by Seoul Guarantee Insurance Co. and 14 other
creditors.
In the lawsuit, SGI
and Creditors allege that, in the event that the proceeds of sale of
the SLI shares is less than 2.45 trillion Korean won, approximately
US$2.64 billion, the Samsung affiliates allegedly agreed to compensate
SGI and Creditors for the shortfall, by other means, including Samsung
affiliates' purchase of equity or subordinated debentures to be issued
by SGI and Creditors. Any excess proceeds are to be distributed to the
Samsung affiliates.
4. Morgan Stanley
Published March 9, 2007
US$1.578B
The
District Court of Appeal for the Fourth District of Fla. on June 28,
2006 heard oral argument on Morgan Stanley's appeal of the Circuit
Court of the 15th Judicial Circuit for Palm Beach County, Fla.'s final
judgment issued on June 23, 2005 awarding US$1.578 billion to Coleman
(Parent) Holdings Inc. (CPH).
5. Valassis Communications Inc.
Published March 9, 2007
US$1.5B
Discovery
on Valassis Communications Inc.'s monopoly lawsuit filed against News
America Inc., News America Marketing FSI Inc. and News America
Marketing In-Store Services Inc., commenced on Nov. 20, 2006, is
underway.
The complaint alleges
damages in excess of US$1.5 billion, injunctive relief and costs for
violation of the Sherman Act.
6. Bristol-Myers Squibb Co.
Published March 28, 2007
US$586M
Bristol-Myers
Squibb Co.'s Nov. 13, 2006 motion to dismiss the complaint entitled
RxUSA Wholesale, Inc. v. Alcon Labs., Inc., et al. is pending before
the U.S. District Court for the Eastern District of New York.
Plaintiff claims that defendants allegedly engaged in anti-competitive
acts that resulted in its exclusion from the relevant market and seeks
US$586 million in damages before any trebling, and other relief.
7. Central Hudson Gas & Electric Corp.
Published March 9, 2007
US$528M
Central
Hudson Gas & Electric Corp. still faces eight separate lawsuits
claiming US$528 million for damages filed by about 24 plaintiffs
related to the Jan. 1, 2001 a fire that destroyed a multi-family
residence on Taylor Avenue in Poughkeepsie, N.Y.
8. Pacific Gas and Electric Co.
Published March 22, 2007
US$500M
The
next case management conference for legal actions filed by the
California Attorney General and the City and County of San Francisco
against PG&E Corp. in the Superior Court for the County of San
Francisco is scheduled for April 17, 2007.
The complaint seeks injunctive relief, the appointment of a receiver,
restitution in an amount according to proof, civil penalties of
US$2,500 against each defendant for each violation of Section 17200, a
total penalty of not less than US$500 million and costs of suit, and
restitution of assets allegedly wrongfully transferred to PG&E from
the Utility.
9. International Speedway Corp.
Published March 9, 2007
US$400M
Discovery
of expert opinion matters on the US$400 million antitrust lawsuit filed
by Kentucky Speedway LLC against International Speedway Corp. and
National Association for Stock Car Auto Racing is underway.
10. Ameron International Corp.
Published Feb. 22, 2007
US$376M
Sable
Offshore Energy Inc.'s damages claim against Ameron International
Corp., two of its subsidiaries (Ameron (UK) Ltd. and Ameron B.V.), and
other suppliers and contractors, remains in discovery and is still not
set for trial. The claim is estimated to be about CDN428 million.
11. AMERIGROUP Corp.
Published April 4, 2007
US$334M
AMERIGROUP Corp. is set to appeal the US$334 million judgment against
the Company in a qui tam lawsuit filed by Cleveland A. Tyson against
AMERIGROUP Illinois, Inc. to the U.S. Court of Appeals for the 7th
Circuit.
12. Corn Products International, Inc.
Published April 10, 2007
US$325M
Corn
Products International, Inc. said that it does not expect a decision by
the North American Free Trade Agreement Tribunal on any of its damages
claims against the United Mexican States for breach of NAFTA
obligations soon, according to the Company's latest annual report filed
with the U.S. Securities and Exchange Commission.
In response to the imposition of the tax, the Company submitted on Oct.
21, 2003, an arbitration claim against the government of Mexico under
the provisions of the NAFTA seeking recovery for US$325 million in
damages.
13. Alcoa Inc.
Published March 15, 2007
US$304M
Alcoa
Aluminio S.A., a subsidiary of Alcoa Inc., continues to contest the
BRL669 million claim by the Federal Revenue Department of Brazil for
alleged non-anticipation of payment of annual Corporate Income (CI) and
Social Contribution Taxes (SCT) used by the Company.
The claim seeks payment equivalent to about US$304 million and encompasses fiscal years from 2000 to 2005.
14. Qwest Communications International Inc.
Published Feb. 26, 2007
US$289M
Qwest
Communications International Inc. faces a suit claiming damages for
alleged misrepresentation of KPNQwest NV's financial and business
condition filed in the District Court of Amsterdam, The Netherlands.
KPNQwest is the Company's European joint venture with Dutch firm Royal KPN NV.
Plaintiffs allege damages of about EUR219 million, or US$289 million based on the exchange rate on Dec. 31, 2006.
15. Constellation Energy Group Inc.
Published April 5, 2007
US$175M
The
City of Tacoma's appeal of the dismissal of its suit for violation of
Section 1 of the Sherman Act filed against over 60 companies, including
Constellation Energy Group Inc.'s subsidiary, is still pending. The
Company's subsidiary involved in this case is Constellation Energy
Commodities Group Inc.
The suit further alleges that the total amount of damages is unknown, but is estimated to exceed US$175 million.
16. Black & Decker Corp.
Published March 15, 2007
US$170M
Black
& Decker Corp. could lose about US$170 million if the U.S. Internal
Revenue Service prevails in its disallowance of the capital loss
deduction and imposition of related interest on the tax adjustment
dispute between the parties.
17. Ameron International Corp.
Published Feb. 22, 2007
US$128M
Dominion
Exploration and Production Inc.'s and Pioneer Natural Resources USA
Inc.'s damages claim, estimated to be about US$128 million filed
against Ameron International Corp., remains in discovery with no trial
date established.
18. URS Corp.
Published April 4, 2007
US$120M
URS
Corp. Southern and URS Holdings, wholly owned subsidiaries of URS
Corp., still contests suits filed by Tampa-Hillsborough County
Expressway Authority alleging breach of contract and professional
negligence related to a subsided pier.
In October 2005, the Authority filed a lawsuit
in the 13th Judicial Circuit of Florida against URS Corp. Southern, URS
Holdings and an unrelated third party, alleging breach of contract and
negligence resulting in damages to the Authority exceeding US$120
million.
19. Merrill Lynch & Co. Inc.
Published April 3, 2007
US$115M
Allegheny
Energy Inc.'s appeal of the decision rendered on July 18, 2005 by the
U.S. District Court for the Southern District of New York requiring it
to pay Merrill Lynch & Co. Inc. US$115 million plus interest is
still pending.
20. Magyar Telekom Telecommunications Plc
Published March 22, 2007
US$105M
T-Online
Hungary Internet Service Provider Co. Ltd. is in the process of
deleting three OrigoApro.hu Kft. trademarks from its registry.
OrigoApro.hu filed a lawsuit in May 2006 against T-Online Hungary for
damages asserting claims based on its trademarks "origoingatlan,"
"origoapro" and "origoauto" potentially amounting to HUF19 billion
Bristol-Myers Squibb Co., DaimlerChrysler AG, and Time Warner Inc.
are the top three companies which made and reserved the largest suit settlement amounts
reported for the Corporate Litigation Reporter publication period
Jan. 1 to April 12, 2007.
Company
Claim Amount
Details
1. Bristol-Myers Squibb Co. Published March 28, 2007
US$499M
Bristol-Myers reserves US$499M in accordance
to an agreement in principle entered into with the U.S.
Department of Justice and the Office of the U.S. Attorney
for the District of Massachusetts, subject to the approval
of the DOJ, to settle several investigations on the Company's
drug pricing, and sales and marketing activities.
2. DaimlerChrysler AG
Published April 11, 2007
US$280M
DaimlerChrysler
AG's subsidiary, DaimlerChrysler North America Holding Corp., is liable
to pay a US$280 million award in punitive damages to MAN AG, after a
jury trial in Multnomah County Circuit Court, Oregon in December 2006.
3. Time Warner Inc.
Published March 28, 2007
US$260M
Time
Warner, in February 2007, reached an agreement with the University of
California to settle fraud suits related to the AOL-Historic TW Merger
for US$260 million.
4. Time Warner Inc.
Published March 28, 2007
US$144M
Time
Warner, in March 2007, settled for US$144 million the suits alleging
misrepresentations in registration statements related to the
AOL-Historic TW Merger and stock option plans in violation of Sections
11 and 12 of the Securities Act of 1933 filed in Ohio, according to the
Pensions&Investments news.
5. Nexen Inc.
Published April 4, 2007
US$135M
Nexen,
in late 2006, agreed to settle the arbitration alleging breach Area of
Mutual Interest agreement commenced by Occidental Petroleum Corp.'s
subsidiary for US$135 million.
6. Time Warner Inc.,
Published March 28, 2007
US$50M
Time
Warner, in December 2006, reached an agreement with Alaska State
Department of Revenue to settle suits alleging fraud related to the
AOL-Historic TW Merger for US$50 million.
7. C.R. Bard Inc.
Published April 5, 2007
US$49M
C.R.
Bard Inc., in the fourth quarter of 2006, settled the damages suit
filed by Rochester Medical Corp. Inc. in the U.S. District Court,
Eastern District of Texas, entitled “Rochester Medical Corp. Inc. v. C.
R. Bard, Inc., et al.” for US$49 million.
8. Bearingpoint Inc.
Published Jan. 25, 2007
US$36.9M
Bearingpoint
made settlement payment of about US$36.9 million in September 2006 for
the Allocco v. Gardner, Ariko v. Moores, Bains v. Moores and the
Peregrine Litigation Trust civil lawsuits.
9. PPL Electric Utilities Corp.
Published March 9, 2007
US$33M
PPL
Electric Utilities Corp. is liable to pay US$33 million to Exelon Corp.
according to a third settlement agreement, subject to approval by the
Federal Energy Regulatory Commission, to clear the billing dispute
commenced by Exelon Corp.
10. Waste Management Inc.
Published March 15, 2007
US$29M
Waste
Management, in the fourth quarter of 2006, was ordered to pay about
US$29 million to settle the claim filed by the purchaser of the
Company's interest in a joint in Mexico in 2000.
Intel Corp., Synopsys Inc., and Cadence Design Systems Inc. are the top three
companies facing the highest tax assessments, disallowances and claims
by different tax agencies for the Corporate Litigation Reporter publication period
Jan. 1 to April 12, 2007.
Company
Claim Amount
Details
1. Intel Corp.
Published March 29, 2007
US$2.2B
Intel
Corp.'s appeal of the Internal Revenue Service's Tax Assessment for the
Company's tax returns for the years 1999 through 2005 regarding the
amounts reflected on those returns as a tax benefit for its export
sales is still pending.
The Company's federal income tax due for 1999 through 2005 could increase by about US$2.2 billion, plus interest.
2. Synopsys Inc.
Published Jan. 18, 2007
US$476.8M
On
June 8, 2005, Synopsys Inc. received a Internal Revenue Service Agent's
Report in which the IRS proposed to assess a net tax deficiency for
fiscal years 2000 and 2001 of about US$476.8 million, plus interest.
Synopsys Inc. appeals the process of the proposed assessment of its net tax deficiency.
3. Cadence Design Systems Inc.
Published March 28, 2007
US$318M
Cadence
Design faces US$324 million proposed aggregate tax deficiency for the
tax years 2000 through 2002 by the Internal Revenue Service.
Cadence Design is seeking resolution of this tax deficiency issues through the Appeals Office of the IRS.
4. Bausch & Lomb Inc.
Published Feb. 15, 2007
US$200M
Bausch
& Lomb Inc. could have increased tax liabilities for Wilmington
Partners L.P. for the tax periods ended June 4, 1999 and Dec. 25, 1999
by more than US$200 million, plus penalties and interest.
Bausch & Lomb continues to challenge the tax adjustments proposed
by the Internal Revenue Service regarding the tax periods.
5. Wyeth
Published April 3, 2007
US$134.8M
Wyeth
faces about US$134.8 million tax claims filed on July 26, 2002 by a
Brazilian Federal Public Attorney against the federal government of
Brazil, Wyeth and its subsidiary, Laboratorios Wyeth-Whitehall Ltda. on
non-taxing of Kolynos divestiture.
6. The Mosaic Co.
Published Feb. 6, 2007
US$75.3M
The
Mosaic Co. faces claims US%46.6 million taxes and US$28.7 million
interest by the Florida Dept. of Revenue. FDOR continues its audit into
the Company for unpaid sales and use taxes for the period beginning
June 1, 1997 through May 31, 2002.
7. Owens & Minor Inc.
Published April 4, 2007
US$71.5M
Owens
& Minor Inc. has a pending appeal with the Internal Revenue Service
related to the proposed disallowance of IRS on certain reductions in
the Company's tax-basis last-in, first-out (LIFO) inventory
valuation.
If the Company were
unsuccessful in its appeal, it would have to pay a deficiency of about
US$71.5 million in federal, state, and local taxes for tax years 2001
through 2006 on which deferred taxes have been provided and calculated
at statutory rates, of about US$9.5 million as of Dec. 31, 2006, net of
any tax benefits.
8. Time Warner Inc.
Published March 28, 2007
US$44M
AOL
Europe Services SARL, a wholly owned subsidiary of Time Warner Inc.'s
subsidiary, on Dec. 22, 2006, received an assessment from the French
tax authorities for EUR34 million or about US$44 million for value
added tax due in France.
9. Mueller Water Products Inc.
Published March 5, 2007
US$80.4M
The
Internal Revenue Service has issued a Notice of Proposed Deficiency
assessing additional tax of US$80.4 million for the fiscal years ended
May 31, 2000, Dec. 31, 2000, and Dec. 31, 2001 against Walter
Industries Inc., the company from which Mueller Water spun off.
Mueller Water reports that Walter Industries indicated that it intends to defend itself against the IRS claims.
10. Alliance One International Inc.
Published Feb. 23, 2007
US$27.2M
Alliance
One faces an assessment that it had US$26.6 million in federal income
taxes in 2005 that were offset by the excise taxes in Brazil. The
Company continues its appeal on the assessment.
Information presented herein details the companies with the biggest settled, pending and tax claims as reported in the
Lloyd's Corporate Litigation Reporter.
To get the news when it happens, as it happens, subscribe to
Lloyd's Corporate Litigation Reporterhere.