Mealey's Bankruptcy - United Gilsonite Proposes Consensual Plan To Reorganize, Pay Asbestos Claims

WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL) on Aug. 14 filed a Chapter 11 plan of reorganization in federal bankruptcy court that includes establishment of a trust to benefit asbestos personal injury claimants that will be funded in part by $19 million in cash from the debtor and its shareholders...

Mealey's IP/Tech - Support Firm Exceeded Scope Of Oracle's License Via Many Downloads, Judge Finds

LAS VEGAS - A software support services firm exceeded the scope of its developer license agreement with Oracle USA Inc. by downloading multiple copies of Oracle's database software when it was only licensed to download a single copy for application purposes, a Nevada federal judge ruled Aug. 13,...

Mealey's Health Law - 7th Circuit: Secretary Entitled To Deference In Determining Medicare Rate

CHICAGO - In reversing a lower court decision, a panel of the Seventh Circuit U.S. Court of Appeals on Aug. 18 held that the secretary of Health and Human Services' determination that residents' pure research activities should not be compensable as part of the "indirect medical education"...

Mealey's Health Law - Company Tells 6th Circuit Hobby Lobby Entitles It To ACA Injunction

DETROIT - Burwell v. Hobby Lobby Stores, Inc. (134 S. Ct. 2751 [2014]) dispensed with the idea that for-profit companies cannot follow religious tenets and requires reversal of a ruling denying injunction relief in a Patient Protection and Affordable Care Act (ACA) contraceptive mandate challenge, a...

Mealey's Securities/D&O Liability - Lead Plaintiffs Properly Pleaded Scienter In Securities Suit, Judge Rules

SAN FRANCISCO - Dismissal of a securities class action lawsuit is not warranted because the lead plaintiff in the action has properly pleaded scienter, a federal judge in California ruled in an opinion made available on Aug. 15 (Scott Bruce v. Suntech Power Holdings Co. Ltd., et al., No. 12-4061, N.D...

Mealey's Insurance - New York Federal Judge: Reinsurer's Maximum Liability Is Capped Under Certificates

NEW YORK - A New York federal judge on Aug. 15 granted a reinsurer's motion for partial summary judgment after determining that the reinsurance certificates at issue clearly cap the reinsurer's maximum liability to the reinsured (Global Reinsurance Corporation of America v. Century Indemnity...

Mealey's IP/Tech - Federal Circuit Affirms Claim Construction In Patent Dispute

WASHINGTON, D.C. - A Pennsylvania federal judge's construction of several disputed patent claims was not clearly erroneous, the Federal Circuit U.S. Court of Appeals ruled Aug. 15 (John R. Gammino v. Sprint Communications Company, et al., Nos. 13-1636, 14-1016, Fed. Cir.).

Mealey's Securities/D&O Liability - Judge Gives Final Approval To $62.5M Securities Class Action Settlement

MINNEAPOLIS - A federal judge in Minnesota on Aug. 18 granted final approval of a $62.5 million settlement on shareholder claims that Wells Fargo N.A. failed to ensure that certain funds that were part of a securities-lending program were not high-risk and long-term investments in violation of several...

Mealey's PI/Product Liability - 6th Circuit Panel Reverses Summary Judgment In Aredia/Zometa Jaw Case

CINCINNATI - A Sixth Circuit U.S. Court of Appeals court panel on Aug. 18 reversed summary judgment in an Aredia/Zometa jaw injury case after finding that under Tennessee law, the testimony of the plaintiff and her doctor could establish a sufficient causal link between failure to warn and the jaw injury...

Mealey's PI/Product Liability - Suits Stemming From Colorado Theater Shooting May Proceed, Judge Rules

DENVER - A group of 20 suits alleging that theater owner Cinemark Inc. violated Colorado's premises liability statute in failing to have sufficient security in place to stop a mass shooting at its Aurora, Colo., movie theater in July 2012 will proceed, a federal judge ruled Aug. 15 (Denise N. Axelrod...

Mealey's PI/Product Liability - Ignition Switch MDL Judge Appoints Plaintiffs' Counsel, Orders Draft Complaint

NEW YORK - The judge overseeing the General Motors (GM) ignition-switch multidistrict litigation in the U.S. District Court for the Southern District of New York entered an order Aug. 15 appointing lead counsel for plaintiffs, setting a process for reviewing cases filed directly in his court and ordering...

Mealey's Litigation Procedure - Arizona Federal Judge Denies Class Certification In Suit Over Mortgage Program

PHOENIX - An Arizona federal judge on Aug. 15 denied class certification in a suit over a low-down-payment mortgage program, finding that the named plaintiff was an insufficient class representative and that individualized issues predominate (Margaret Galas, et al. v. The Lending Company, Inc., et al...

Mealey's Litigation Procedure - New York Federal Judge Narrows Claims In Employees' Gender Bias Suit

NEW YORK - A New York federal judge on Aug. 14 narrowed the claims and definition of the class in a complaint filed by 11 current and former employees of a pharmaceutical company who allege gender discrimination (Megan Barrett, et al. v. Forest Laboratories, Inc., et al., No. 12-5224, S.D. N.Y.; 2014...

Mealey's Insurance - Pollution Exclusion Bars Coverage For Environmental Claims, Federal Judge Says

BOSTON - An insurer has no duty to defend its insured for underlying environmental contamination claims caused by the insured's dry-cleaning business because the policy's pollution exclusion clearly precludes coverage, a Massachusetts federal judge said Aug. 15 (Arrowood Indemnity Co., formerly...

Mealey's Litigation Procedure - Judge Certifies Securities Class Action Against Chinese Media Company

NEW YORK - A group of plaintiffs alleging securities fraud by a Chinese television advertising firm have met the class certification requirements of Federal Rule of Civil Procedure 23, a New York federal judge found Aug. 15, granting a motion to certify the proposed class and denying a defendant's...

Mealey's Insurance - Trial Court Correctly Dismissed Claims In Mold Suit, Vermont High Court Says

MONTPELIER, Vt. - A trial court did not err in dismissing an insured's claims for negligence and bad faith against an insured in a dispute over coverage for water and mold damages because the insured failed to present sufficient evidence in support of the claims, the Vermont Supreme Court said Aug...

Mealey's Health Law - New York Federal Judge's Ruling Leaves 3 Claims In Health Care Payment Suit

NEW YORK - A New York federal judge on Aug. 15 dismissed claims against one health insurer in a reimbursement dispute and partially dismissed claims against another group of insurers, leaving two claims brought pursuant to the Employee Retirement Act and one state law claim for prompt-payment violations...

Mealey's Health Law - New Jersey Federal Judge Remands Breach Of Contract Suit; No Preemption Exists

NEWARK, N.J. - In an unpublished opinion, a New Jersey federal judge on Aug. 15 remanded a health insurance breach of contract case to state court, holding that the Employee Retirement Income Security Act did not preempt the claims (Thomas R. Peterson, M.D., et al. v. Cigna Insurance Co., et al., No...

Mealey's PI/Product Liability - Chinese Drywall MDL Judge Upholds Special Master's Damages Award To Couple

NEW ORLEANS - The federal judge in Louisiana overseeing the multidistrict litigation stemming from Chinese manufactured drywall on Aug. 14 affirmed a special master's ruling denying a couple's request for the replacement costs of cabinets and flooring that were replaced during remediation, ruling...

Mealey's Insurance - Federal Judge Refuses To Reconsider Ruling In Suit Prompted By Unsolicited Fax Ads

WASHINGTON, D.C. - A District of Columbia federal judge on Aug. 18 denied a commercial liability insurer's motion to reconsider its previous ruling that the insurer failed to properly reserve its rights to disclaim coverage of an underlying class action for violation of the Telephone Consumer Protection...

Mealey's PI/Product Liability - Pennsylvania High Court Won't Extend Habitability Claims To Subsequent Purchasers

HARRISBURG, Pa. - The Pennsylvania Supreme Court on Aug. 18 refused to allow subsequent purchasers of a newly constructed home to pursue claims for breach of implied warranty of habitability against the builder, ruling that the parties' arguments were predominantly grounded in public policy rather...

Mealey's Health Law - Plaintiffs: En Banc Review Of ACA Tax Decision Delays Ultimate Resolution

WASHINGTON, D.C. - En banc review of a decision that tax credits apply only for individuals who receive insurance through state Patient Protection and Affordable Care Act (ACA) exchanges would only delay ultimate resolution before the U.S. Supreme Court, plaintiffs told the a federal appeals court Aug...

Mealey's IP/Tech - 9th Circuit: Barnes & Noble Site's Terms Of Use Not Binding Without Clear Assent

PASADENA, Calif. - A website hyperlink containing the Terms of Use (TOU) of Barnes & Noble Inc. (BN) did not sufficiently put a customer on notice of those terms, a Ninth Circuit U.S. Court of Appeals panel ruled Aug. 18, affirming a trial court's finding that the customer was not, therefore...

Mealey's Insurance - Arizona Nonprofit To Pay $35M To Resolve Suit Over Hospitals' Billing

TUCSON, Ariz. - The nonprofit organization that owns and operates Carondelet St. Mary's Hospital and Carondelet St. Joseph's Hospital in Tucson has agreed to pay the federal government $35 million to resolve a lawsuit accusing the company of violating the False Claims Act when it submitted false...

Mealey's Insurance - DOJ: Leader Of Prescription Fraud Scheme Sentenced To 8 Years, Ordered To Pay $9M

LOS ANGELES - The U.S. Department of Justice on Aug. 18 announced that the leader of a $20 million prescription drug fraud scheme was sentenced to eight years in prison by a federal judge in California and ordered to pay $9.1 million in restitution (United States of America v. Lianna "Lili"...