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Securities Archives

Uber to Pay Waymo $245 Million in Equity to Settle Trade Secret Lawsuit

On February 9, 2018, Uber Technologies Inc. ("Uber") and Waymo LLC ("Waymo") announced a deal in which Uber will pay Waymo 0.34 percent of its equity to settle Waymo's claims that it stole trade secrets and infringed patents related to Waymo's proprietary laser system used to help guide driverless vehicles. At a $72 billion valuation, 0.34 percent of Uber's equity equates to approximately $245 million. As part of the deal, Uber also has agreed not to incorporate Waymo trade secrets into its autonomous vehicle hardware and software.

Tesla Sued Over Production Delays

On October 10, 2017, a suit was filed in the U.S. District Court for the Northern District of California against Tesla, Inc. ("Tesla" or the "Company") over an alleged nondisclosure of information about production delays for its Model 3 sedan, which resulted in a four percent drop in its stock price.

Ruling on UPS ERISA Suit over Benefits Cap Reversed by Ninth Circuit

On Friday, September 8, 2017, a three-judge panel for the U.S. Court of Appeals in the Ninth Circuit reversed U.S. District Judge Cathy Ann Bencivengo's summary judgment award to United Parcel Service of America Inc. ("UPS") and Blue Cross and Blue Shield of Illinois ("BCBS") (collectively, the "Defendants"), which held that Defendants were not in violation of the Affordable Care Act ("ACA") or the Public Health Service Act ("PHSA") in capping Gary King's ("Plaintiff") lifetime health insurance coverage benefits, and that they did not violate the disclosure requirements of the Employee Retirement Income Security Act ("ERISA") in their informing plan participants about the cap.

Wal-Mart Seeks to Protect Investigator's Documents

To follow up on our previous blog, "Wal-Mart and Investors Contest Privileged Docs Regarding Bribery Scandal," Wal-Mart Stores Inc. ("Wal-Mart" or the "Company") has urged U.S. District Court Judge Susan Hickey to reverse her decision earlier this month that would allow shareholders to depose and gather documents from Ronald Halter, a former FBI investigator hired by Wal-Mart to look into the allegations that its Mexican operation ran on bribes.

Wal-Mart and Investors Contest Privileged Docs Regarding Bribery Scandal

On April 21, 2012, the New York Times published an article concerning Wal-Mart Stores Inc. ("Wal-Mart" or the "Company") covering up a bribery campaign in Mexico. An internal Wal-Mart investigation had revealed widespread bribery. The story led to a steep decline in Wal-Mart's stocks, and because the investors were misled about the bribery, they sued the Company for violating U.S. securities laws. The shareholders are being led by a pension fund, City of Pontiac General Employees' Retirement System ("PGERS").

CEO of Dissolved E-Waste Recycling Company Hit with Securities Suit

The former CEO of a dissolved e-waste recycling company, GR Supply Chain Management Inc. ("GR"), has been accused by the company's investors of violating "virtually every" securities law. According to the shareholders, CEO, Zhiyu Luo ("Luo"), allegedly sold GR's inventory for his own personal profit and dissolved the company without any shareholder approval.