Eversheds Sutherland 11th Circuit Business Blog
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Patronage Capital Class Action Removable; Dismissal Affirmed

An electric cooperative organized under state law is nonetheless entitled to remove a putative class action to federal court under the “federal officer” removal statute, according to the Eleventh Circuit in Caver v. Central Alabama Electric Cooperative, 845 F.3d 1135 (11th Cir. 2017), which also affirmed dismissal of a complaint seeking immediate return of patronage capital. ...

Stock Issuer Not Required to Disclose Hiring of Outside Promoters

In the first published appellate court decision to decide the issue, the Eleventh Circuit has held that companies that retain promoters to publish promotional materials to “recommend” or “tout” their stock (and raise the stock price) are not required by federal securities laws to disclose the business arrangement between the issuing company and promoter.  In Ballesteros v. Galectin...

Common-Law Agency Principles, Not DOL Regulations, Dictate Whether Company Is a Joint “Employer”

The Eleventh Circuit considered the meaning of “employer” in the context of the H-2A visa program and declined to apply Chevron deference to a then-prevailing Department of Labor interpretation.  The court instead applied common-law agency principles.  Garcia-Celestino v. Consolidated Citrus Limited Partnership, 2016 WL 7240150 (Dec. 15, 2016), involved claims brought by a group of...