You Just Can't Give it Away
June 27, 2005
Companies in Chapter 11 may have capital structures consisting of multiple tiers of debt and equity that have competing priorities of payment vis-'-vis the company and its assets. The claims and interests of these competing stakeholders may be resolved in a Chapter 11 plan. To emerge from Chapter 11, the company must obtain approval of a plan that deals with all creditor claims and equity interests in accordance with the (sometimes complicated) rules contained in the Bankruptcy Code. In an effort to achieve an agreed-upon Chapter 11 plan, some creditors may give up (or gift) a portion of the recovery to which they would otherwise be entitled to another class of creditors or equity holders.
Fen-Phen: The Never-Ending Story
June 27, 2005
The national settlement of the fen-phen lawsuits was intended, among other things, to help defendant Wyeth, one of the world's largest pharmaceuticals manufacturers, put the lawsuits behind it. However, the number of claimants who opted out of the settlement is huge, and many of their cases are now coming to trial, with mixed results. Recently approved changes to the settlement process are also altering plaintiffs' rights. In short, the last chapter of this epic litigation is a long way from being written. So, what is happening with the fen-phen settlement and litigitions?
CD: What's It Worth to You? What Legal marketing professionals command for full-time salary.
June 16, 2005
This web audio conference gives marketers and lawyers a glimpse into what the marketing professionals in the legal field command for full-time salary, bonuses and other benefits. Focusing on the results of the highly anticipated LMA Compensation Survey, this event will serve as a snapshot into the strategic position the legal marketing professionals hold, or should hold, in firms.
Vioxx and the FDA Advisory Committees: Yesterday, Today, and the Search for Tomorrow
June 14, 2005
Amid a cacophony of wailing and gnashing of teeth decrying the Food and Drug Administration's ("FDA's") failure to protect the public from unsafe drugs, the FDA held an emergency advisory committee meeting, which included consultants, to address the safety issues associated with the use of COX-2 selective and non-selective non-steroidal anti-inflammatory drugs ("NAIDs"). The meeting was scheduled and held at warp speed. It provided a transparent dispassionate opportunity to address the safety issues for scientists, affected parties and the public. The decisions of the advisory committee were to some extent, unexpected. This accelerated review process differs from the current advisory committee process of reviewing limited data in a product pre-approval setting. However, this use is a natural extension of the FDA's historic use of advisory committees, <i>ie</i>, analysis of voluminous data on any active ingredient over a period of years and application of the analysis to specific drug products containing the active ingredient.
Merck's Strategy for Dealing with Vioxx: Why the Old Recipes for Success Won't Succeed
June 14, 2005
It seems that the same question is asked every time two pharmaceutical plaintiffs' lawyers get together these days: "Don't you think Merck can just pull a Baycol?" Referring to Bayer's strategy for resolving the recent litigation over Bayer's dangerous — and withdrawn — statin drug, these lawyers are concerned that Merck, like Bayer, can somehow escape compensating thousands of victims. No doubt due to the widely read article in The Wall Street Journal (May 3, 2004) that essentially gave Bayer an "academy award" for its handling of Baycol, reporters across the country, trying to analyze the emerging Merck debacle last fall, were asking the same question of their trial lawyer interviewees. What these inquiring minds are inquiring about is whether Merck, clearly faced with thousands of actions, can "lump and split" them. On the one side, Merck would place a very large pile of cases it deems non-compensable, and on the other, a much smaller pile comprised of those cases that Merck will agree to discuss and value. The answer to this question seems to be, at this relatively early date, that even if Merck wishes it could approach the problem this way, it cannot. Moreover, it cannot use the strategy it used in the phenylpropanolamine ("PPA"), Propulsid, or Rezulin litigation, either. In fact, any attempt to apply the strategies employed in those litigations may end in sheer disaster.
A Word from the Defense: Is Defending Vioxx a Recipe for Disaster? Take a Careful Look at Who Is Sounding the Alarm
June 14, 2005
The message from our plaintiffs' lawyer colleagues has been steady and direct: "Don't bother defending these cases — you're going to lose and you're going to lose big. Just pay us all lots of money now and save yourself a lot of pain and agony." And what other message would they send? Their goal is to reap the highest reward from the least amount of effort. Litigating every case on every level; financing and staffing hundreds of complex trials, and waiting for final appellate review of every verdict is no way to run a mass tort practice — at least not from the plaintiffs' perspective. Given this author's perspective, it makes sense to examine the options more carefully before deciding that the only way to avoid ruin is to wire massive sums into the trial bar's trust accounts.
Vioxx Multidistrict Litigation Judge Profile: A Closer Look at the Odds
June 14, 2005
Statistical analysis of federal litigation provides a unique insight into particular judges involved in a case, including information on the probable timing/outcomes of cases, and what significant motions are generally granted or denied before a federal judge. Answers are based on verifiable facts, rather than anecdotal assumptions, and provide interested parties with more accurate data.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: Important Implications for the Equipment Leasing Industry
June 07, 2005
On April 20, 2005, President Bush signed The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 into law (the "Act"). Although the Act has received much media attention in recent months for its potential impact upon consumers seeking protection under Chapter 7 of the Bankruptcy Code (the "Code"), it does contain a number of amendments to the Code that will affect, either directly or indirectly, the ways in which equipment lessors will relate to their liquidating or reorganizing lessees. This article provides a brief overview of some of the new amendments to the Code and explains how they will change the dynamics between lessors and lessees.
New HSR Rules for Transactions Involving Partnerships and LLCs
June 01, 2005
Forget what you know about the Hart-Scott-Rodino Antitrust Improvements Act (HSR) and partnerships. Forget what you know about HSR and LLCs. The rules have changed ' again. The good news is that the rules make more sense, and certain exemptions to the filing requirements have been codified or expanded. The bad news is that a small number of deals that used to slide under the HSR radar may now be caught. More strategically speaking, the rules now provide more opportunities to "choose" whether your next joint venture will be subjected to substantive agency review under the HSR scheme, heightening the value of HSR counselors' advice on structure issues at early planning stages.
Covenants Not To Compete: For Everyone At The Firm Except Attorneys?
May 31, 2005
A covenant not to compete is an increasingly popular device employers use to bind employees not to work for, or as, a direct competitor. Such covenants are most often found in employment contracts, but they can also be a separate document, signed by the employee at hiring, during employment, or upon leaving. However, in many states, a covenant not to compete cannot stand alone as a binding agreement, but must be ancillary to an employment or other type of contract that provides some benefit to the employee. <br>While covenants not to compete may be used by employers in certain court-delineated circumstances, ethical rules specifically bar the application of such restrictive covenants to attorneys.
