LOS ANGELES - In reversing a lower court in part, a California appeals panel on March 8 held that although a directors and officers liability insurance policy's "Willful Misconduct Exclusion" barred coverage for losses brought about by fraud or criminal acts, the exclusion did not apply to defense expenses (Mitchell J. Stein v. Axis Insurance Company, et al., No. B265069, Calif. App., 2nd Dist., Div. 1, 2017 Cal. App. Unpub. LEXIS 1628).
NEW YORK - Convicted hedge fund manager Raj Rajaratnam has failed to show that his trial counsel in his criminal proceedings was ineffective by failing to bring certain arguments on appeal of Rajaratnam's conviction for insider trading, a federal judge in New York ruled March 3 in denying a pair of motions to vacate Rajaratnam's sentence and civil forfeiture (Raj Rajaratnam v. United States of America, No. 15-5325, related to: 09cr1184, S.D. N.Y., 2017 U.S. Dist. LEXIS 30726).
DETROIT - Takata Corp. on Feb. 27 pleaded guilty to one count of wire fraud in Michigan federal court and agreed to pay $1 billion in criminal penalties in a case in which the air bag maker was charged with misleading consumers into believing that their air bags were safe when the air bags were prone to exploding during car crashes, leading to deaths and injuries, according to a press release from the U.S. Department of Justice (United States of America v. Takata Corp., No. 2:16-CR-20810, E.D. Mich.).
PHILADELPHIA - In a Feb.27 filing in Pennsylvania federal court, Andrea Constand, who has accused Bill Cosby of sexual assault, opposes a former Pennsylvania district attorney's motion to compel production of documents from her 2005 suit against Cosby, asserting that the documents are irrelevant to her present defamation/false light claim against the former DA (Andrea Constand v. Bruce Castor, No. 2:15-cv-05799, E.D. Pa.).
WASHINGTON, D.C. - A tribunal for the International Centre for Settlement of Investment Disputes (ICSID) on Feb. 23 rejected a corporation's request for provisional measures in a case filed against the Oriental Republic of Uruguay, refusing to suspend or end a criminal investigation in Uruguay of two of its expert witnesses (Itabla Corp. v. Oriental Republic of Uruguay, No. ARB/16/9, ICSID).
AUSTIN, Texas - Expert testimony from three medical doctors on the subject of abusive head trauma was reliable, the Texas Court of Criminal Appeals ruled Feb. 15, upholding a woman's conviction in a bench trial for first-degree-felony injury to a child after an infant under her care sustained serious internal head injuries (Jennifer Banner Wolfe v. The States of Texas, No. PD-0292-15, Texas App., Crim., 2017 Tex. Crim. App. LEXIS 215).
ANNAPOLIS, Md. - The Maryland Court of Appeals on Jan. 27 affirmed the Court of Special Appeals' holding that a nonprofit insured did not cause actual prejudice to an insurer by providing late notice of a claims that it committed criminal acts in prosecuting a lawsuit against the owner of Ringling Brothers and Barnum & Bailey Circus (National Union Fire Insurance Company of Pittsburgh, Pa. v. The Fund for Animals Inc., No. 18, September Term, 2016, Md. App.; 2017 Md. LEXIS 63).
WASHINGTON, D.C. - State Street Corp. will pay more than $64 million in criminal penalties to the U.S. Department of Justice and the Securities and Exchange Commission to settle charges that it engaged in a scheme to defraud a number of its clients by "secretly applying commissions to billions of dollars of securities trades," according to a Justice Department press release issued on Jan. 18.
ASHEVILLE, N.C. - Baxter Healthcare Corp. has agreed to pay $18.15 million in criminal and civil penalties to resolve allegations that it continued to manufacture and sell intravenous (IV) solutions made in a clean room outfitted with moldy air filters, the U.S. Justice Department announced Jan. 12 (United States of America v. Baxter Healthcare Corporation, No. 17-10, United States of America v. $8,000,000 in Funds, et al., No. 15-cv15, and United States ex rel. Christopher Wall v. Baxter International, Inc., et al., No. 13-42, W.D. N.C.).
WASHINGTON, D.C. - Orthopedic device maker Zimmer Biomet Holdings Inc. and an indirect subsidiary will pay $30.4 million to resolve criminal charges that they violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to people in Mexico and for violating a 2012 deferred prosecution agreement (DPA) for earlier FCPA violations, the U.S. Justice Department announced Jan. 12 (United States of America v. Zimmer Biomet Holdings, Inc., No. 12-cr-80, United States of America v. JERDS Luxembourg Holdings S.A.R.L., No. n/a, D. D.C.).
PHILADELPHIA - On Dec. 14 and 15, separate criminal and civil complaints were filed in federal courts by the federal government and 20 states against two former executives and six generic drug manufacturers accusing them of conspiring to fix the prices, rig drug bids and allocate markets for the antibiotic doxycycline and the diabetes drug glyburide (United States of America v. Jeffrey Glazer, No. 16-cr-506, United States of America v. Jason Malek, No. 16-cr-508, E.D. Pa., The State of Connecticut, et al. v. Aurbodino Pharma USA, Inc., et al., No. 16-2056, D. Conn.).
CHICAGO - A trial judge did not err in allowing testimony from a cellphone record expert that placed a man at the location of illegal gun purchases in one state with illegal sales in another state, the Seventh Circuit U.S. Court of Appeals affirmed Dec. 9 (United States of America v. David Lewisbey, No. 14-2236, 7th Cir.; 2016 U.S. App. LEXIS 21935).
BOSTON - Six former executives and managers of drug maker Insys Therapeutics Inc. were indicted Dec. 6 for racketeering, mail fraud and wire fraud conspiracy for allegedly bribing medical practitioners to prescribe Subsys, a fentanyl-containing pain drug, and for defrauding medical insurers, according to a criminal information unsealed Dec. 8 (United States of America v. Michael L. Babich, et al., No. 16-cr-10343, D. Mass.).
BOSTON - A trial judge did not err in admitting expert testimony concerning the absence of fingerprints on a gun that a jury found a defendant had possessed, the First Circuit U.S. Court of Appeals held Dec. 1, affirming a man's conviction of being a felon in possession of a firearm (United States of America v. Verissimo Tavares, No. 14-2319, 1st Cir.; 2016 U.S. App. LEXIS 21491).
BOSTON - A defendant facing federal murder charges in connection with the New England Compounding Center (NECC) fungal meningitis outbreak on Nov. 25 asked a Massachusetts federal court to continue his January trial, saying he is at a disadvantage because he only recently got access to discovery from the personal injury multidistrict litigation that is likely to be used against him (United States of America v. Glenn Chin, No. 14-cr-10363, D. Mass.).
BOSTON - A husband and wife in the New England Compounding Center (NECC) fungal meningitis outbreak criminal case were sentenced Nov. 9 for structuring financial transactions to avoid federal reporting requirements (United States of America v. Barry J. Cadden, et al., No. 14-10363, D. Mass.).
LOS ANGELES - A California federal judge on Nov. 7 found that an attorney never represented several defendants in a criminal action and had no duty to them, dismissing their claims for violation of California's unfair competition law (UCL) and the Racketeer Influenced and Corrupt Organizations Act (Yijin Lu, et al. v. Deng, et al., No. 2:16-cv-07283, C.D. Calif.; 2016 U.S. Dist. LEXIS 154395).
LAKE CHARLES, La. - A Louisiana appeals panel on Nov. 2 found no error in the admission of testimony from a woman who interviewed a sexual abuse victim as an expert in forensic child interviewing because the woman had sufficient experience and there was enough independent evidence to support the criminal case (State of Louisiana v. Christopher Lance Washburn, No. 16-335, La. App., 3rd Cir.; 2016 La. App. LEXIS 2040).
BOSTON - A Massachusetts federal judge on Nov. 2 declined to dismiss 20 mail fraud counts against two defendants in the New England Compounding Center (NECC) fungal meningitis Racketeer Influenced and Corrupt Organizations Act criminal case (United States of American v. Barry Cadden, et al., No. 14-cr-103363, D. Mass.).
BOSTON - A trial judge did not err in continuing in the absence of a defendant a hearing under Daubert v. Merrell Dow Pharms. Inc. (509 U.S. 579 ) to determine whether an arson investigator may testify in a criminal case because there was independent evidence that the fire was deliberately set, the First Circuit U.S. Court of Appeals ruled Oct. 28 (United States of America v. Kormahyah Karmue, No. 15-1990, 1st Cir.; 2016 U.S. App. LEXIS 19475).
DENVER - The 10th Circuit U.S. Court of Appeals on Oct. 24 affirmed that a district court did not abuse its discretion in admitting a certified sexual assault nurse examiner's testimony that a victim's scratching of herself was consistent with sexual assault and domestic abuse victims coping with the trauma they have experienced (United States of America v. Leslie Chapman, Nos. 15-2143 and 15-2173, 10th Cir.; 2016 U.S. App. LEXIS 19217).
CAMDEN, N.J. - Two companies that sell transcutaneous electrical nerve stimulation (TENS) devices and associated accessories to medical professionals and allegedly submitted inflated bills to Aetna Health Inc. and Aetna Life Insurance Co. (collectively, Aetna) cannot face allegations of insurance fraud brought by the insurer, a federal judge in New Jersey rule Oct. 19, explaining that North Carolina law requires that the accused party be criminally convicted of insurance fraud before bringing the claim (Aetna Health Inc., et al. v. Carolina Analgesic Inc., et al., No. 13-7202, D. N.J.; 2016 U.S. Dist. LEXIS 144872).
CHICAGO - A defendant charged with providing a minor with a gun used in a crime failed to establish that her expert's testimony on perception and human memory is "necessary for adequate representation," an Illinois federal judge ruled Oct. 20, declining to appoint an expert under the Criminal Justice Act (United States of America v. Vandetta Redwood, No. 16-CR-80, N.D. Ill.; 2016 U.S. Dist. LEXIS 145307).