Conflicts News — Heated Hot Potato Argument, Judicial Stock Conflict ($4k versus $2.7b), Entertainment Denied

“Cisco wins reversal of $2.75 bln damages award mainly because judge’s wife owned inventory” —

• “A U.S. appeals court on Thursday threw out a additional than $2.75 billion award in opposition to Cisco Units Inc , indicating the demo judge should really have disqualified himself just after learning that his wife owned Cisco inventory.”
• “The demo judge, U.S. District Choose Henry Morgan in Norfolk, Virginia, uncovered Cisco liable for patent infringement in October 2020, two months after mastering that his spouse owned 100 Cisco shares worth $4,688.”
• “Morgan afterwards put the shares in a blind rely on, and told the get-togethers that the shares ‘did not and could not have influenced’ his dealing with of the case.”
• “But the Washington, D.C.-based mostly appeals court mentioned a blind have confidence in was not the very same as offering the shares, and it did not make a difference that San Jose, California-based Cisco experienced lost.”
• “The court purchased the situation reassigned to another decide, since letting Morgan continue to be on risked undermining community confidence in the judicial method.”
• “Judicial independence captivated renewed consideration previous yr after the Wall Road Journal explained 131 federal judges violated federal legislation by hearing 685 lawsuits given that 2010 involving corporations exactly where they or their family members owned stock.”
• “‘The judiciary requires this make a difference critically,’ U.S. Supreme Courtroom Chief Justice John Roberts wrote in his 2021 yr-finish report. ‘We assume judges to adhere to the highest specifications, and these judges violated an ethics rule.’”

“Fox Rothschild Phone calls Conflict Allegation A ‘Tall Tale‘” —

• “Fox Rothschild legal professionals symbolizing aggrieved investors in a expert athlete startup questioned a New York federal decide Tuesday to reject a ‘transparent’ attempt to manufacture a conflict and an look of impropriety.”
• “Although 1 of the defendants in the scenario, GlassBridge Enterprises Inc., is a previous Fox consumer, the firm’s function was focused on pension plan negotiations and had practically nothing to do with the existing litigation, Cypress mentioned. In addition, that operate was concluded virtually two many years prior to the latest go well with was filed. All through that period of time, GlassBridge has also not claimed that the agency experienced private details similar to GlassBridge’s financial commitment in a startup regarded as SportBLX, which is the target of the present circumstance.”
• “‘Critically, as Fox’s relationship with GlassBridge formally terminated in November 2021 — more than a year following Fox last executed perform for GlassBridge — it is undisputed that Fox did not represent GlassBridge in link with its securities manipulation, tortious interference with contract and unlawful conduct’ that is the subject matter of Cypress’ promises, the filing states.”
• “New York-centered SportBLX experienced sought to ‘tokenize’ and trade in skilled athletes as a result of a blockchain platform that the company would develop.”
• “In a May disqualification movement, Glassbridge said it had supplied its Fox Rothschild attorney, Pamela Thein, facts about its valuation and assessments of the Activity-BLX financial investment so that the organization could advocate to consist of people belongings in a proposed settlement settlement. In a second part of the representation, other Fox attorneys also assisted in negotiating reduced insurance plan premiums.”
• “But in mid-2019, GlassBridge been given a desire letter from Fox Rothschild saying that Cypress, a further Fox customer, ‘intended to sue Activity-BLX, which would have instantly afflicted GlassBridge’s passions in Activity-BLX.’ Fox later on confident the company that it would not be included in the accommodate, but then ‘disengaged GlassBridge like a warm potato’ and sued in any case, the corporation mentioned.”
• “‘GlassBridge is becoming forced to defend alone in a lawsuit introduced by its previous law agency dependent on the pretty confidences that it supplied Fox Rothschild in the course of at the very least two prior representations,’ the business stated.”

Hat tip to Nigel Riley, general manager of hazard and compliance solutions at Intapp, for sending this interesting 1 my way: “Sport more than? Plaintiffs’ attorneys banned from Madison Sq. Back garden by MSG” —

• “The billionaire family members that owns the greater part stakes in the New York Knicks, New York Rangers and the teams’ arena, Madison Square Garden, has in no way been shy about managing obtain to the venues in its empire… But MSG has escalated its obtain recreation: It is now utilizing bans from its venues as a litigation tactic.”
• “At the very least two shareholder corporations engaged in litigation over the 2021 merger of Madison Square Backyard garden Enjoyment Corp and MSG Networks Inc have received letters from an MSG lawyer advising that they are barred from moving into Madison Square Yard, Radio City New music Corridor, the Beacon Theatre and other MSG venues until finally the shareholder suits are solved.”
• “The justification? Experienced perform guidelines prohibiting get hold of involving shareholder attorneys and MSG employees, the letter mentioned. (Reuters received a copy.)”
• “‘Because of the adversarial mother nature inherent in litigation proceedings, and mainly because of the potential for contact with the company’s staff and disclosure outside correct litigation discovery channels that could end result from the existence of any of your firm’s legal professionals at the company’s venues, neither you, nor any other legal professional utilized at your business, could enter the company’s venues,’ wrote Hal Weidenfeld, an in-residence lawyer for MSG Entertainment, in a June 24 letter to shareholder attorney Joel Fleming of Block & Leviton.”
• “The accommodate contends that the Dolan spouse and children, which controls all of the numerous items of the MSG empire, compelled through a offer that was harmful to MSG Entertainment shareholders in purchase to increase the family’s economic and voting stake in the merged entity.”
• “The organization mentioned the new coverage may well be ‘disappointing’ to some of the now-banned plaintiffs’ lawyers, but which is merely an regrettable consequence of ‘our need to protect versus inappropriate disclosure and discovery.’ The lawyers will be welcomed back, the statement said, when their situations towards MSG entities are settled.”
• “‘We’re a company full of Celtics enthusiasts,’ Fleming reported. ‘If we want to enjoy the Knicks lose, it is a good deal more entertaining to see it transpire at TD Backyard.’”

Curious, I had a glance to see what other situations the MSG ban blocks these attorneys from attending. Alas, they will be limited from forthcoming functions which includes: Billy Joel, Michael Buble, and Rage Versus the Machine…

(Could 1 argue that it would be professionally prudent for these lawyers to hold their distances even after litigation is concluded? They may perhaps want to keep away from even the visual appeal of impropriety… whispers that it was the lure of the approaching Hanson concert, Tom Jones, or Doobie Brothers 50th Anniversary Tour that brought them to the negotiating desk? I’ll let the ethics professionals ponder that one…)