No-Action Letter for Eli Lilly & Co. Permitted Exclusion of Proposal to Eliminate Supermajority Voting Requirements

In Eli Lilly & Co., 2018 BL 7440 (Jan. 8, 2018), Eli Lilly & Company (“Eli Lilly”) asked the staff of the Securities and Exchange Commission (“SEC”) to permit the omission of a proposal submitted by William Steiner (“Shareholder”) requesting the board to replace the company’s supermajority voting requirement with a simple majority requirement. The SEC issued the requested no-action letter allowing for the exclusion of the proposal from the 2018 proxy materials under Rule 14a-8(i)(10).

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City of Hialeah Employees' Retirement System v. FEI: Defendants' Motion to Dismiss Plaintiff's Second Amended Complaint Granted

In City of Hialeah Employees' Retirement System v. FEI, No. 3-16-cv-1792-SI, 2018 BL 25615 (D. Or. Jan. 25, 2018), the United States District Court for the District of Oregon granted a motion to dismiss the City of Hialeah Employees’ Retirement System’s (“Plaintiff”) Second Amended Complaint (“SAC”), filed against FEI Company ("FEI"), Thermo Fisher Scientific Inc. ("Thermo"), and named Individual Defendants, Thomas Kelly, Donald Kania, Homa Bahrami, Arie Huijser, Jan Lobbezoo, Jami Dover Nachstsheim, James Richardson, and Richard Wills (collectively, "Defendants"), finding Plaintiff failed to adequately plead that Defendants’ violated Section14(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and that Individual Defendants violated Section 20(a) of the Exchange Act. 

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No-Action Letter for Starbucks Corporation Allowed Exclusion of Charitable Contributions Report Proposal

In Starbucks Corp., 2018 BL 2480 (January 4, 2018), Starbucks Corp. (“Starbucks” or “Company”) asked the staff of the Securities and Exchange Commission (“SEC”) to permit the omission of a proposal submitted by Thomas Strobhar (“Proponent”) requesting the board issue a report disclosing Starbucks’ standards and process for making charitable contributions. The SEC issued the requested no action letter allowing for the exclusion of the proposal under Rule 14a-8(i)(7).

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Moore v. Payson Petroleum Grayson: Investors in 3-Well Program Denied Transfer of Venue

In Moore v. Payson Petroleum Grayson, LLC, No. 3:17-CV-1436-M-BH, 2018 BL 21203 (N.D. Tex. Jan. 23, 2018), the court denied a motion to transfer venue filed by seven Payson Petroleum Grayson, LLC (“Payson”) investors (“Plaintiffs”), from the Northern District of Texas, Dallas Division (“Dallas Division”), to the Eastern District of Texas, Sherman Division (“Sherman Division”). In the class action, Plaintiffs’ alleged Payson and twelve other defendants (collectively “Defendants”) violated the Texas Securities Act. In denying the motion to transfer, the court reasoned both private and public interest factors, as well as the interest of justice, did not warrant transfer.

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Fries v. Northern Oil and Gas, Inc.: Court Grants Motion to Dismiss with Leave to Amend for Non-Actionable 10b–5 Claims.

In Fries v. Northern Oil and Gas, Inc., No. 16-cv-06543-ER, 2018 BL 9786 (S.D.N.Y. Jan. 10, 2018), the United States District Court for the Southern District of New York granted a motion to dismiss the Consolidated Amended Complaint (“CAC”) of Matthew Atkinson (“Plaintiff”) against Northern Oil and Gas, Inc. (“Northern Oil”) and Northern Oil executives, Michael L. Reger (“Reger”) and Thomas W. Stoelk (“Stoelk”), (collectively “Defendants”), alleging violations of the Securities Exchange Act of 1934, as amended (“Exchange Act”) for violations of Section 10(b) and 20(a). The court held the Plaintiffs failed to state a claim.

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