SAN FRANCISCO - The variety of contracts at issue and evidence that at least some of the contracted pharmacy benefit managers (PBMs) understood that a pharmacy's usual and customary rate did not include the rate offered for generic drugs in its membership program defeat a motion for class certification of insured purchasers of generic drugs, a federal judge in California held March 21 (Christopher Corcoran, et al. v. CVS Health, et al., No. 15-3504, N.D. Calif., 2017 U.S. Dist. LEXIS 40783).
SAN DIEGO - A California federal judge on March 21 granted a motion to dismiss a class complaint accusing Campbell Soup Co. of deceiving customers by labeling soup as healthy even though it contained trans fat but denied motions by both parties seeking sanctions (Harold Brower, et al. v. Campbell Soup Company, No. 16-1005, S.D. Calif., 2017 U.S. Dist. LEXIS 40792).
SAN FRANCISCO - An attorney representing the named plaintiffs in a wage-and-hour class complaint must pay $7,706.32 in sanctions after acting in an "unprofessional" and "disrespectful" manner during deposition, a California federal magistrate judge ruled March 21, adding that the attorney "might benefit from mental health treatment and sensitivity training" (Shaon Robinson, et al. v. The Chefs' Warehouse, No. 15-5421, N.D. Calif., 2017 U.S. Dist. LEXIS 40824).
SAN DIEGO - An insurer is entitled to $37,000 in restitution from a man who pleaded guilty to misrepresenting to the company that nurses he sent to work at skilled-nursing facilities were computer programmers to obtain a lower workers' compensation policy premium, a California appeals panel ruled March 22 in affirming the man's conviction (People v. John Paul Riddles, No. D069419, Calif. App., 4th Dist., 1st Div., 2017 Calif. App. LEXIS 259).
OAKLAND, Calif. - A California federal judge on March 22 granted in part a motion for summary judgment by Apple Inc., finding that the plaintiffs in a putative antitrust class action failed to establish the primary alleged aftermarket for iPhone voice and data services related to claimed service exclusivity through AT&T Mobility, but the judge deemed a narrower aftermarket related to iPhones not unlocked for service provider exclusivity sufficiently alleged (Zack Ward, et al. v. Apple Inc., No. 4:12-cv-05404, N.D. Calif.).
SAN FRANCISCO - A network of "vendors" who perform maintenance and repair services at properties owned by Field Asset Services Inc. (FAS) are employees, not independent contractors, and are owed overtime and business expenses, a California federal judge ruled March 17 in an order granting the vendors' motion for partial summary judgment and denying FAS's motion to decertify the class of vendors (Fred Bowerman, et al. v. Field Asset Services Inc., et al., No. 13-57, N.D. Calif., 2017 U.S. Dist. LEXIS 39000).
LOS ANGELES - A California federal judge on March 17 dismissed without prejudice a breach of contract and bad faith lawsuit against a professional liability insurer in a coverage dispute arising from the insured's alleged breach of a loan agreement (GemCap Lending, LLC v. Scottsdale Indemnity Co., et al., No. 15-09942, C.D. Calif., 2017 U.S. Dist. LEXIS 38931).
SAN DIEGO - A safety engineer and accident reconstruction expert may not testify regarding Sea World LLC's liability relating to the safety of an area at the time of a woman's accident while visiting the park, a California federal judge held March 17 (Eusebia Baltazar v. Sea World Parks Entertainment LLC, No. 15-2893, S.D. Calif.; 2017 U.S. Dist. LEXIS 39039).
LOS ANGELES - Because a plaintiff can arguably state a claim against an insurance claims adjuster for intentional infliction of emotional distress, the claims adjuster is not a sham defendant and was not fraudulently joined to defeat federal jurisdiction, a California federal judge said March 17 in remanding the insureds' suit seeking additional coverage for mold damage to California state court (Health Pro Dental Corp., et al. v. Travelers Property Casualty Company of America, et al., No. 17-637, C.D. Calif., 2017 U.S. Dist. LEXIS 38944).
FRESNO, Calif. - A judge properly admitted expert testimony that every identifiable exposure to asbestos contributes to mesothelioma, a California appeals court held March 17, while also rejecting challenges involving tobacco use and an award of punitive damages (Charity Faith Phillips, et al. v. Honeywell International Inc., No. F070761, Calif. App., 5th Dist.).
FRESNO, Calif. - A California federal judge on March 16 denied an insured's petition to substitute her as the plaintiff in an action in which her husband sought coverage for theft under an insurance policy, finding that she failed to submit sufficient medical evidence to support a finding that he was incompetent to proceed as a plaintiff (Ray Gibson v. Hagerty Insurance Agency, et al., No. 1:16-cv-00677, E.D. Calif., 2017 U.S. Dist. LEXIS 38231).
SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a drug maker and certain of its executive officers asked a federal judge in California on March 15 to certify a class of investors, arguing that class certification is statutorily appropriate (Hsingching Hsu v. Puma Biotechnology Inc., et al., No. 15-0865, C.D. Calif.).
LOS ANGELES - A federal judge in California on March 15 substantially dismissed a securities class action complaint against a solar energy products manufacturer and certain of its executive officers, ruling that shareholders failed to plead the requisite elements of a majority of their federal securities laws claims (Kevin T. Know, et al. v. Yingli Green Energy Holding Co. Ltd., et al., No. 15-4003, C.D. Calif., 2017 U.S. Dist. LEXIS 37223).