Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

The Ninth Circuit panel held that defendant was not required to disgorge to CytoDyn his short-swing profits from exercising options and warrants granted by CytoDyn, entitling him to purchase and later sell CytoDyn shares. The panel held that the short-swing transaction fell within an exemption, set forth in SEC Rule 16b-3(d)(1) because the option and warrant award was “approved by the board of directors” of CytoDyn. The circuit court concluded that the affirmative votes of three of CytoDyn’s five board members, at a meeting where only four board members were present, were sufficient, and a unanimous decision was not required under either the plain text of Rule 16-3(d)(1), Delaware corporate law, or CytoDyn’s bylaws.The court left the determination of what a corporate board must do to approve insider-issuer acquisitions to the laws of the state where the corporation is incorporated. Reasoning that federal securities law defers to—and does not displace—the state laws governing corporate boards. Thus, the circuit court affirmed the district court’s ruling. View "ALPHA VENTURE CAPITAL PARTNERS V. NADER POURHASSAN" on Justia Law

The en banc court filed an opinion affirming the district court’s order certifying three subclasses of direct tuna purchasers (“DPP”) who alleged that the suppliers violated federal and state antitrust laws. The circuit court agreed with the district court and held that the purchasers’ statistical regression model was capable of showing that a price-fixing conspiracy caused class-wide antitrust impact.Plaintiffs must prove by a preponderance of the evidence the facts necessary to carry the burden of establishing that the prerequisites of Rule 23 are satisfied. The court held that in making the determinations necessary to find that the prerequisites of Rule 23(b)(3) are satisfied, the district court may weigh conflicting expert testimony and resolve expert disputes. Further, the court found when individualized questions relate to the injury status of class members, Rule 23(b)(3) requires that the court determine whether individualized inquiries about such matters would predominate. The court held that the district court did not abuse its discretion in certifying the class. Further, it held that the court did not err in determining that the evidence presented by the DPPs proved: (1) antitrust impact was capable of being established class-wide through common proof, and (2) that this common question predominated over individual questions. Finally, the court held that the district court did not abuse its discretion in determining that the evidence presented by the “CFP” class of indirect purchasers of bulk-sized tuna products and the “EPP” class of individual end purchasers was capable of proving the element of antitrust impact. View "OLEAN WHOLESALE GROCERY CO-OP V. BUMBLE BEE FOODS LLC" on Justia Law

After discovering apparent financial malfeasance by the plaintiff, then president of Local 1637, the Amalgamated Transit Union (“ATU”) imposed the trusteeship, thereby removing plaintiff and the other Local 1637 executive board members from office. Plaintiff filed a single-plaintiff action against ATU and several of its officers. Later, while that action was still pending, plaintiff filed a second, multiplaintiff action in which he and a majority of the other former executive board members of Local 1637 asserted related claims against ATU, the same ATU officers, and several other defendants.Because the claims against these defendants in the two cases otherwise involved the same causes of action and the same parties, the assertion of those claims in the second suit violated the doctrine of claim-splitting. The Ninth Circuit found that the district court correctly concluded that, with respect to the claims against ATU and its officers, the additional plaintiffs in the multi-plaintiff action were adequately represented by the plaintiff in the single plaintiff action. Because the claims against these defendants in the two cases otherwise involved the same causes of action and the same parties, the assertion of those claims in the second suit violated the doctrine of claim splitting. The circuit court affirmed the district court finding that the court properly dismissed the duplicative claims against the ATU Defendants in the multiplaintiff suit. View "JOSE MENDOZA, JR. V. AMALGAMATED TRANSIT UNION" on Justia Law

Plaintiff filed suit against defendant, a Nevada limited liability partnership (“W&L Nevada”) under the Americans with Disabilities Act (“ADA”). The district court granted summary judgment for W&L Nevada on plaintiff’s ADA claims. The district court held that, as a matter of law, W&L Nevada was not a covered employer under the ADA because (1) it had fewer than 15 employees and (2) plaintiff did not present sufficient evidence to create a genuine issue of material fact whether W&L Nevada was an “integrated enterprise” with W&L California.The circuit court held that even when a defendant has fewer than 15 employees, a plaintiff can bring a statutory claim if she can establish that (1) defendant is “so interconnected with another employer that the two form an integrated enterprise” and (2) the integrated enterprise collectively has at least 15 employees. Here, the circuit court found that plaintiff established a genuine issue of material fact regarding whether defendant’s two offices were an integrated enterprise. Further, defendant did not present evidence that the Nevada and California offices were separate operations and maintained separate books. Accordingly, the circuit court reversed the district court’s grant of summary judgment for defendant on plaintiff’s ADA claims. Further, the circuit court remanded the district court to address whether the integrated enterprise had fewer than 15 employees. View "AMY BUCHANAN V. WATKINS & LETOFSKY, LLP" on Justia Law

Bluetooth SIG, Inc. (“SIG”) is a non-profit organization that owns the commonly-recognized “Bluetooth” marks. Before a product manufacturer is permitted to use any Bluetooth marks, they must join SIG, execute a licensing agreement, submit declarations of compliance, and pay certain fees.FCA US, LLC (“FCA”) makes cars containing Bluetooth head units manufactured by third-party suppliers that have been qualified by the SIG. SIG brought trademark claims against FCA under the Lanham Act.The Ninth Circuit vacated the district court’s order that found the first sale doctrine did not apply. The first sale doctrine provides that a producer’s rights to control the distribution of a trademarked product do not extend beyond the first sale of the product. The panel held that the first sale doctrine also applies when a mark is used to refer to a component part incorporated into a new end product, provided the seller discloses how the trademarked product was incorporated into the new end product. View "BLUETOOTH SIG INC. V. FCA US LLC" on Justia Law

Defendant was charged with robbing the same bank two times. The first robbery occurred in October 2016. In December 2016, officers found the defendant passed out behind the wheel of a vehicle that was stopped in traffic. Officers found a firearm during a search of the vehicle. It was subsequently determined that the firearm in the defendant’s vehicle was the firearm used in the October 2016 robbery. The defendant was charged with robbery and the gun was confiscated. In January 2017, the bank was robbed a second time, by seemingly the same person. This time, the robber used a silver firearm. The defendant was ultimately charged with the second robbery of the bank.The Eighth Circuit affirmed the denial of the defendant’s motion to suppress, finding that officers did not unreasonably delay the traffic stop. Even if there was an unreasonable delay, the district court’s application of the inevitable-discovery rule was not erroneous.The court also rejected the defendant’s claim that robbery was not a crime of violence and, therefore, he could not be charged with using a firearm during a crime of violence. Under binding circuit court precedent, robbery is a crime of violence.Finally, the court affirmed the denial of the defendant’s motion for judgment of acquittal, finding the evidence was sufficient to find that the defendant committed both robberies. View "USA V. ANTHONY HYLTON, JR." on Justia Law

Plaintiffs used the defendants’ websites but did not see a notice stating, “I understand and agree to the Terms & Conditions, which includes mandatory arbitration.” When a dispute arose, defendants moved to compel arbitration, arguing that plaintiffs’ use of the website signified their agreement to the mandatory arbitration provision found in the hyperlinked terms.The Ninth Circuit held that plaintiffs did not unambiguously manifest their assent to the terms and conditions when navigating through the websites. As a result, they never entered into a binding agreement to arbitrate their dispute, as required under the Federal Arbitration Act. The panel explained that the courts have routinely enforced “clickwrap” agreements, which present users with specified contractual terms on a pop-up screen requiring users to check a box explicitly stating “I agree” to proceed. However, courts are more reluctant to enforce browsewrap agreements, which provides notice only after users click a hyperlink.Finally, the panel held that the district court properly exercised its discretion in denying the defendants’ motion for reconsideration based on deposition testimony taken two months prior to the district court’s ruling on the motion to compel arbitration. Plaintiffs did not unambiguously manifest their assent to the terms and conditions when navigating the website. Thus, they never entered into a binding agreement to arbitrate. The court affirmed the district court’s order denying the defendants’ motion to compel arbitration. View "DANIEL BERMAN V. FREEDOM FINANCIAL NETWORK LLC" on Justia Law

Defendant was sentenced to 24 months imprisonment following a conviction for wire fraud. With the government’s consent, Defendant was allowed to self-surrender to the Bureau of Prisons (“BOP”). Before he was required to turn himself in, Defendant sought compassionate release through the BOP. After the BOP did not respond to his requests, Defendant filed a motion for compassionate release in the district court.The district court denied Defendant’s motion for compassionate release, finding him ineligible because he was not yet in custody at the time he filed the motion. The Ninth Circuit affirmed. In discussing a district court’s ability to modify a sentence, 18 U.S.C. sec. 3582(c)(1)(A) provides, the court “may reduce the term of imprisonment . . . that does not exceed the unserved portion of the original term of imprisonment.” This implies that a defendant’s term of incarceration has begun. Thus, the Ninth Circuit held that the district court properly denied Defendant's motion for compassionate release because he was not in custody when it was filed. View "USA V. GEORGE FOWER" on Justia Law

Plaintiffs brought Title IX claims for failure to provide equal treatment and benefits, failure to provide equal opportunities to male and female athletes, and retaliation against female athletes when they brought up Title IX compliance to high school administrators. The district court denied Plaintiff’s motion for class certification, finding that they failed to meet the numerosity requirement under Fed. R. Civ. P. 23(a).The Ninth Circuit reversed. Rule 23(a)(1) requires a party seeking class certification to prove that “the class is so numerous that joinder of all members is impracticable.” The proposed class of plaintiffs at the time of filing exceeded 300. Additionally, the district court failed to consider the future students who also fell within the class. To satisfy the numerosity element of Rule 23(a) Plaintiffs do not need to show that the joinder of all possible class members is impossible, only that it is impracticable. The court also found Plaintiffs’ other claims met Rule 23(a)’s requirements, remanding the case for the district court to determine whether Plaintiffs satisfied Rule 23(b). View "A. B. V. HAWAII STATE DEPT OF EDUC." on Justia Law

Appellee, Signal Peak Energy, sought to expand its mining operations, resulting in the expected emission of 190 million tons of greenhouse gases (“GHGs”). The Department of the Interior (“Interior”) published an environmental assessment (“EA”) which explained that the amount of GHGs emitted would amount to .44 percent of the total GHGs emitted each year globally. A group of environmental groups challenged the Interior's approval of the proposed expansion.The Ninth Circuit first noted that the parties’ dispute was not moot. The panel further held that Interior violated the National Environmental Policy Act by failing to provide a convincing statement for why the project’s impacts were insignificant. Moreover, the panel was unpersuaded that Interior was required to use the social cost of carbon metric to quantify the harm. Further, the panel found that it was less clear whether the agency had any other available metric to evaluate the project's impact. The panel remanded to the district court to decide whether an environmental impact statement was required. View "350 MONTANA V. DEBRA HAALAND" on Justia Law