In this edition of Litigation Roundup, a San Antonio-based Jackson Walker partner is tapped to represent a man in a $37 million bid-rigging conspiracy case in Hawaii, and Camp Mystic asks a Travis County district judge to send litigation over the fatal July 4 flood to arbitration.
And in judicial news, a vacancy on the bankruptcy bench in San Antonio opened up Friday when U.S. Bankruptcy Judge Craig Gargotta retired. Gargotta was appointed to the bankruptcy bench in October 2007 and in November 2021 became the chief bankruptcy judge for the Western District of Texas.
“Today is my last day as a bankruptcy judge,” he wrote in a LinkedIn post Friday. “I am thankful for the opportunity to serve. God has blessed me in so many ways during my career. Thank you to my fellow judges, clerk’s office, law clerks and the bar for such an incredible experience.”
The Litigation Roundup is a weekly feature highlighting the work Texas lawyers are doing inside and outside the state. Have a development we should include next week? Please let us know at tlblitigation@texaslawbook.net.
Travis County District Court
Camp Mystic Files Motion to Compel Arbitration
In the four Travis County lawsuits brought by families whose daughters were killed during the July 4 flooding at Camp Mystic, lawyers for the camp and the family that runs it have asked the court to kick the lawsuits to arbitration.
“When the plaintiffs registered their daughters to attend camp that year, one parent for each of the girls signed a participation agreement as part of that registration,” the motion reads. “The participation agreement contains an arbitration clause, requiring the arbitration of all claims that arise ‘out of or in connection with this agreement.’”
The motion, filed March 24, goes on to tell the court that the agreement “highlights the various risks of attending camp, including the risk of serious injury due to floods and other camp hazards.”
“Because one parent signed the participation agreements on behalf of each minor daughter, all plaintiffs are bound by the arbitration agreement they consented to in the participation agreement.”
Lead lawyer for the camp, Mikal Watts of Watts Law Firm, told The Lawbook in an exclusive interview in October that this case would mark his first time representing a defense client. He said at the time “there is no jury in America that will hold Camp Mystic responsible.”
In December, the defendants filed motions asking that the lawsuits be transferred to Kerr County, arguing Travis County is an improper venue.
Camp Mystic and the other defendants are represented by Watts, Jeff Ray of Ray | Peña, Lynn Castagna of Castagna Scott and Thomas C. Wright, Jessica Z. Barger, Kenneth J. Fair and Joshua Fiveson of Wright Close Barger & Guzman.
The families are represented by Kurt Arnold, J. Kyle Findley, Kala F. Sellers and John G. Grinnan of Arnold & Itkin, Randy R. Howry and Sean E. Breen of Howry Breen & Herman, Jarom Tefteller of Tefteller Law, Ron Armstrong II of The Armstrong Firm, W. Mark Lanier, Sam E. Taylor II and Sara E. Abston of Lanier Law Firm and R. Paul Yetter, Justin P. Tschoepe, J. Reid Simpson and Shannon N. Smith of Yetter Coleman.
The case numbers are D-1-GN-25-010016; D-1-GN-25-009963; D-1-GN-25-009983 and D-1-GN-25-009976.
Southern District of Texas
DLA Piper Gets $50M Copyright Suit Against Cardi B Tossed
Belcalis Almanzar, better known as Cardi B, won dismissal of a $50 million copyright infringement lawsuit recently after a federal judge in McAllen determined he had no jurisdiction over the rapper and that, even if he did, the music producers suing her failed “to state a claim upon which relief can be granted.”
Almanzar was sued by two McAllen music producers, Joshua Fraustro and Miguel Aguilar, in July 2024. The duo alleged they wrote the musical composition “Greasy Frybread” in 2021 that is available on Spotify and is featured in the FX series Rez Dogs. They argued Cardi B’s song “Enough (Miami),” released in March 2024, infringes the copyright for “Greasy Frybread” and was used without permission.
In a motion to dismiss, Cardi B’s attorneys argued Fraustro and Aguilar failed to show the case belongs in Texas courts and should be dismissed.
“At best, plaintiffs might have pleaded — but did not — that copies of the allegedly infringing song ‘Enough (Miami)’ have been sold online and distributed to this forum,” the motion reads. “But that too would be insufficient to confer personal jurisdiction without any evidence that this forum was purposefully targeted.”
But even if Texas courts did have jurisdiction, the case should still be dismissed, the lawyers argued.
“Plaintiffs’ amended complaint replaced their claim for federal copyright infringement with a common copyright law claim under Texas law. It appears this was done because they belatedly realized (after Almanzar’s counsel brought it to their attention) that they lacked a copyright registration,” the motion argues. “… Importantly, however, plaintiffs cannot circumvent the need for a copyright registration merely by framing their claim under common law. That is because the U.S. Copyright Act preempts any common law claim that is equivalent to a federal copyright claim.”
U.S. District Judge Fernando Rodriguez Jr. issued a 21-page opinion and order dismissing the case March 30. On the jurisdictional issue, he wrote that the plaintiffs “rely solely” on Cardi B’s performances in Texas as evidence that the dispute belongs in Texas courts.
“But plaintiffs do not demonstrate that Almanzar targeted Texas for concert performances, rather than simply including Texas venues within a broader concert tour in numerous states,” he wrote.
Fraustro and Aguilar are represented by Robert Ray Flores of Raymondville, Texas.
Cardi B is represented by Brett Solberg and Taylor Reed of DLA Piper and Lisa F. Moore and W. Andrew Pequignot of Moore Pequignot.
The case number is 7:24-cv-00264.
Northern District of Texas
FTC Says Dallas-Based Match Group Wrongly Sharing Users’ Data
The Federal Trade Commission has filed suit against the Humor Rainbow, the Dallas-based company that operates OkCupid and its affiliate Match Group Americas, alleging the company deceptively shared the personal information of users with third-parties in violation of its own privacy promises.
The federal agency filed the lawsuit March 30, after it successfully enforced a civil investigative demand letter in federal court that required the dating platform to hand over certain information. The same day the lawsuit was filed, the parties filed a joint stipulated order for permanent injunction under which Humor did not have to admit or deny any wrongdoing and will be permanently prohibited from misrepresenting or assisting others in misrepresenting the extent to which personal data is collected, maintained and disclosed.
“The FTC enforces the privacy promises that companies make,” said the FTC’s director of consumer protection, Christopher Mufarrige. “We will investigate, and where appropriate, take action against companies that promise to safeguard your data but fail to follow through — even if that means we have to enforce our civil investigative demands in court.”
The case has been assigned to U.S. District Judge Ed Kinkeade.
The FTC is represented by its own Ann D. LeJeune, Alejandro Rosenberg and Sarah Choi.
Match Group and Humor Rainbow are represented by Laura VanDruff of Kelley Drye & Warren in Washington, D.C.
The case number is 3:26-cv-00996.
Western District of Texas
Nvidia Hit with Patent Infringement Suit
Monolithic 3D filed a lawsuit March 30 against Nvidia Corporation in the Midland-Odessa Division of the Western District of Texas, accusing the company of infringing six patents covering technology used in semiconductor memory devices and fabrication methods.
Monolithic alleges a chip Nvidia uses in its processing products infringes its patents.
The case was originally assigned to U.S. District Judge David Counts, but it was transferred March 31 to U.S. District Judge Alan Albright pursuant to a brief order that said both judges consented to the move.
Counsel for Nvidia had not filed an appearance as of Monday afternoon.
Monolithic 3D is represented by Ryan F. Oliver, Peter Lambrianakos, Vincent J. Rubino III and Julian Pymento of Fabricant, Rubino & Lambrianakos.
The case number is 7:26-cv-00115.
Man Who Ran NBA Game Promotion Ponzi Scheme Pleads Guilty
Prosecutors have secured a guilty plea from a 63-year-old El Paso man whom they accused of running a Ponzi scheme premised on the promotion of preseason NBA games.
U.S. District Judge Leon Schydlower accepted Timothy France Johnson’s guilty plea April 2 and has scheduled his sentencing for July 29. He was charged via a sealed indictment filed in March 2024 with seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from unlawful activity.
He pleaded guilty to the wire fraud counts as part of an agreement.
Prosecutors allege Johnson, through his BOLO Sports & Entertainment LLC, promised some investors 33 percent or 100 percent returns on their investments of at least $12,500.
The duped investors, who sent Johnson thousands of dollars between February 2009 and May 2020, were told that their money would be used to promote preseason NBA games and that Johnson, who purported to have been organizing NBA games since the late 1980s, would use the investments to secure venues and the games and fund the marketing and promotion of the matchups.
But in reality, the funds from new investors were used to pay old investors or were used by Johnson for non-business-related expenses. Prosecutors said none of the funds were used to pay the NBA, NBA teams, venues or any promotion-related expenses.
To make the scheme appear legitimate, Johnson would have investors sign investment agreements and provide them with phony investment statements, contracts and letters that purported to substantiate his NBA connections. Additionally, two victims went to an NBA game they had allegedly invested in with Jonson.
Wire fraud is punishable by a maximum of 20 years in prison.
Johnson is represented by James O. Darnell Sr.
The case is being prosecuted by James Skillern, James Watson, Micaela L. Glass, Patricia Acosta and Shane Romero of the Department of Justice.
The case number is 3:24-cr-00644.
Eastern District of Texas
LED Manufacturer Gets Suit Booted to Massachusetts
U.S. Magistrate Judge Roy S. Payne recently agreed with LMPG Inc., a company that designs, manufactures and sells LED lighting, that a patent infringement lawsuit brought against it belongs in Massachusetts federal court.
In a seven-page order issued March 31, the judge found ElectraLED Inc. failed “to articulate to any significant degree why” certain Texas-based employees of LMPG “are relevant to the case, and why these individuals’ contributions outweigh defendant’s significant presence in Massachusetts.”
ElectraLED filed suit in April 2025, alleging LMPG infringed two of its patents covering technology used in “durable light fixtures with improved thermal management properties to ensure reliable operation.” The suit alleges LMPG sells 10 distinct products that infringe the patents.
ElectraLED is represented by Christopher A. Honea, M. Scott Fuller and Randall Garteiser of Garteiser Honea.
LMPG is represented by Howard J. Susser, Joseph M. Maraia and Kevin Spinella of ArentFox Schiff and Bruce Morris of Kane Russell Coleman & Logan.
The case number is 2:25-cv-00338.
Southern District of Florida
Texan On Lam in $61M Fraud Case Sentenced to Prison
A man who pleaded guilty during his own jury trial to orchestrating a $61 million telemarketing fraud, then absconded before sentencing, was sentenced late last month to more than 12 years in prison.
Robert “Bobby” Leon Smith III, 50, of Archer City was sentenced by U.S. District Judge Kenneth A. Marra March 25 to 150 months in prison. He was also ordered to pay $30.1 million in restitution and to forfeit an additional $9.2 million, as well as some real estate located in Texas.
Smith was indicted in December 2023, according to court records. Four days into his trial in March 2025, he pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of health care fraud.
But then he went on the lam prior to sentencing and was missing for a month before his arrest by U.S. Marshals. Prosecutors alleged Smith, who owned and operated seven durable medical equipment supply companies in Florida and Maryland, submitted false claims to Medicare for orthotic braces and foot baths that were not medically necessary.
Smith was accused of using his Texas-based marketing company for a telemarketing campaign targeting Medicare beneficiaries for medical services they didn’t need and collaborating with a call center in the Philippines in furtherance of the scheme.
Smith is represented by federal public defender M. Caroline McCrae.
The case was prosecuted by Andrea Savdie, Emily Gurskis, Evan N. Schlom, Gabrielle Charest-Turken, Michael McCarthy and Owen Dunn of the Department of Justice.
The case number is 9:23-cr-80211.
U.S. District Court Hawaii
Former Master Sgt. Cops to $37M Bid-Rigging Conspiracy
A 51-year-old Texas man who was formerly a master sergeant in the U.S. Air Force has pleaded guilty to defrauding the military out of at least $37 million via a scheme that inflated the cost of information technology contracts.
Alan Hayward James pleaded guilty April 1 to attempt and conspiracy to commit mail fraud, bribery of a public official and antitrust violations before U.S. District Judge Shanlyn A.S. Park. He has also agreed to pay $1.4 million in restitution to the U.S. Department of War.
Prosecutors alleged between April 2016 and April 2025 James inflated the costs of IT contracts for work at U.S. Air Force outposts in the Pacific and used the excess funds for personal expenses. James pleaded guilty to directing coconspirators on the amounts they should bid for contracts and to bribing an official in the U.S. Pacific Air Forces who was nicknamed “Godfather” by James and his coconspirators.
He faces a maximum of 20 years in prison for wire fraud, 15 years for bribery and 10 years for the Sherman Act violation.
James was charged via an information filed by the government March 20 and waived his indictment when he entered the guilty plea last week. He is scheduled to be sentenced Oct. 7.
James is represented by Erica Benites Giese of Jackson Walker and Candace Hough of Hawaii.
The case is being prosecuted by Darren W.K. Ching, Don Daniel, Matthew Chou and Rebecca Bers of the Department of Justice.
The case number is 1:26-cr-00031.
Texas Supreme Court
End of an Era: No More Central Docket in Travis, Bexar Counties
Finalizing rules it gave preliminary approval to in October, the Texas Supreme Court recently issued final amendments to Texas Rule of Civil Procedure 330(e) that eliminate a unique way of adjudicating cases in Travis and Bexar counties that had been the norm for decades.
In those counties, any district judge could preside over various pretrial hearings rather than one assigned judge taking the case from beginning to end. The so-called central or presiding court docketing system drew the attention of Chief Justice Jimmy Blacklock in his state of the judiciary address last February.
The amended rule states, “Upon the filing of a case, the case must be randomly assigned to a court authorized to preside over the case.”
Proponents of the system argued it enabled litigants to get hearings faster, and detractors argued the approach decreased the likelihood of consistent and predictable rulings over the course of litigation.
The nine justices on the Texas Supreme Court signed off on the amended rule March 27, and it will go into effect July 1.
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