Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

To the endless delight of law firms everywhere, unhappy shareholders continue to generate lots of work for them. The highlights:

• According to this article, Del. Suit Blames Execs, Board for Crash of 'Grand Theft Auto' Purveyor, a lawsuit has been filed against Take Two Interactive Software Inc. (Take Two) by investment fund, Bamboo Partners LLC. Bamboo Partners filed the suit in Delaware Chancery Court, and accuses Take Two's "officers and directors of breaching their duties of loyalty, care and oversight" by allowing the incorporation of pornographic images into the company's "Grand Theft Auto" game. The suit alleges stockholders were injured when Take Two's "stock price crashed" after retailers pulled the game "from their shelves."

• HealthSouth announced a global, preliminary agreement that would settle several federal securities class actions and the derivative actions filed in Alabama federal and state courts. The proposed settlement is worth about $445 million in cash and stock. For more on this settlement, read HealthSouth Settles Class-Action; Plaintiffs and Company To Now Tag Team Against UBS, Ernst & Young at WSJ.com's Law Blog.

• Judge Albert A. Stallone of a county court in Berks County, Pennsylvania dismissed a lawsuit filed against Sovereign Bancorp Inc. (Sovereign) by its largest shareholder, Relational Investors LLC (Relational). Relational sought access to Sovereign's books and records. The court dismissed the suit after learning that Relational "filed a false affidavit and two false verifications." Read Court Dismisses Sovereign Records Lawsuit to learn more.

• The Third Circuit released an opinion in In re: Supreme Specialties, Inc. Securities Litigation that will give the defense bar fits. The court's plaintiff-friendly spin on the "sound in fraud" doctrine resulted in the reinstatement of a securities fraud case against the now defunct Supreme Specialities. Read A Cheesy Third Circuit Decision and Third Circuit Clamps Down on Sound in Fraud Rule for more.