CHICAGO - A federal judge in Illinois dismissed without prejudice claims from a man that his former employer falsely billed Medicare, Medicaid and other private insurers for endovascular laser therapy (EVLT) procedures that were not medically necessary or done with reused laser fibers, finding that the allegations were not made with the required level of specificity to support his False Claims Act (FCA) allegations (United States of America, ex rel. Constantine Zverev, et al. v. USA Vein Clinics of Chicago, LLC, et al., No. 12 CV 8004, N.D. Ill., 2017 U.S. Dist. LEXIS 43807).
CHICAGO - Expert testimony on sociological and statistical analysis is allowed in a racial discrimination lawsuit between an employer and its former employees to discuss whether minority employees received disparate treatment, an Illinois federal judge held March 24, finding that the testimony meets the standards set forth in Daubert v. Merrell Dow Pharmaceuticals Inc., 509 U.S. 579 (1993) (Kenneth Martin, et al. v. F.E. Moran Inc. and Fire Protection of Northern Illinois, No. 13-03526, N.D. Ill., 2017 U.S. Dist. LEXIS 42974).
CHICAGO - Illinois federal court is the wrong jurisdiction for John Crane Inc.'s fraud and racketeering claims against two law firms and their founders, two federal judges held separately March 23 in dismissing the company's lawsuits, but without prejudice to refile the actions in the proper courts (John Crane Inc. v. Shein Law Center Ltd., et al., No. 16-5913, 2017 U.S. Dist. LEXIS 42758, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 16-5918, N.D. Ill., 2017 U.S. Dist. LEXIS 41840).
CHICAGO - The parents of a child who allegedly developed E. coli after eating soy nut butter filed suit on March 23 in Illinois federal court against a soy nut butter maker, claiming that the butter led to their son developing hemolytic uremic syndrome (HUS) (Michael James Richardson, et al. v. The SoyNut Butter Company, No. 17-CV-2233, N.D. Ill.).
EVANSVILLE, Ind. - An Indiana federal judge on March 22 ruled in favor of an excess insurer in a manufacturer insured's breach of contract and bad faith lawsuit seeking coverage for an underlying lawsuit alleging claims for breach of contract, breach of express warranty, breach of implied warranty of fitness for a particular purpose, breach of implied warranty of merchantability and negligence (Berry Plastics Corporation v. Illinois National Insurance Co., No. 15-00170, S.D. Ind., 2017 U.S. Dist. LEXIS 41546).
CHICAGO - The liquidator of a pair of insolvent insurers told a federal court in Illinois on March 22 that the claims she brings against a mortgage insurance reinsurer are sufficient to survive a motion to dismiss (People of the State of Illinois, ex rel., Acting Director of Insurance, Anne Melissa Dowling v. HMC Reinsurance Company, a Vermont Corporation, No. 16-cv-08156, N.D. Ill.).
CHICAGO - An Illinois judge on March 22 sustained an insurance guaranty association's objection, finding that an insolvent insurer's special deposit cannot be used to pay the guaranty association's general administrative expenses (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).
PEORIA, Ill. - Because questions of fact exist regarding the cause of the collapse of a building's second floor and the insured's knowledge of the condition of the building, an Illinois federal judge on March 21 denied an insurer's motion for summary judgment (WAMFAM5 Inc. v. Nova Casualty Insurance Co., No. 15-1195, C.D. Ill., 2017 U.S. Dist. LEXIS 40159).
CHICAGO - A federal magistrate judge in Illinois on March 20 denied summary judgment to a hardware store in a negligence and premises liability suit after finding that the store owed a duty of care to a man who injured himself while loading PVC pipes into a cart because his injury was reasonably foreseeable (Robert Fanter v. Menard Inc., No. 15-CV-7912, N.D. Ill., 2017 U.S. Dist. LEXIS 39317).
CHICAGO - A federal judge in Illinois overseeing a trial claiming that a former Reed Smith partner's use of the antidepressant Paxil caused him to commit suicide in 2010 on March 20 denied the drug maker's motion to strike portions of testimony from a plaintiff's expert of the amount of data he had access to that purportedly showed that suicidal events were underreported during studies (Wendy Dolin v. SmithKline Beechman Corporation, d/b/a GlaxoSmithKline, No. 12-cv-6403, N.D. Ill.).
CHICAGO - An Illinois judge on March 16 ordered the rehabilitation of a pair of insolvent insurers, noting that the insurers' directors had consented to the rehabilitation (People of the State of Illinois, ex rel., Jennifer Hammer, Director of the Illinois Department of Insurance v .Public Service Insurance Company, an Illinois domestic stock insurance company, et al., No. 2017-CH-03790, Ill. Cir., Cook Co., Chanc. Div.).
CHICAGO - An Illinois judge on March 14 approved a liquidator's recommendation of a payment to a class of homeowners that won a construction defect lawsuit against a group of developers insured by an insolvent insurer (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).
CHICAGO - An Illinois judge on March 16 approved the rate of compensation for an internal auditor of an insolvent insurer's liquidation proceeding (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).
CHICAGO - An Illinois appeals panel on March 14 rejected an insured's assignee's appeal in a coverage dispute arising from unsolicited fax transmissions, finding the assignee's claims barred by the doctrine of res judicata (CE Design Ltd. v. HealthCraft Products, Inc., et al., No. 1-14-3000, Ill. App., 1st Dist., 2nd Div., 2017 Ill. App. Unpub. LEXIS 490).
CHICAGO - A homeowners insurance policy was intended to cover only a peril in which a building loses its character as a building, an Illinois federal judge ruled March 14, in defining "collapse" under the policy and finding that the insurer has no duty to indemnify damage caused by a contractor to the insureds' home (The Travelers Home and Marine Insurance Co. v. Patrick Walsh and Colleen Walsh, No. 15-3063, N.D. Ill.; 2017 U.S. Dist. LEXIS 35841).
CHICAGO - An Illinois judge on March 10 granted a motion to suspend the briefing schedule on a liquidator's petition so that a claimant can secure documentation in support of his workers' compensation claim (In the Matter of the Liquidation of Illinois Movers' & Warehousemen's Risk Management Group, No. 12-CH-09140, Ill. Cir., Cook Co.).
CHICAGO - A sex toy maker accused of wrongfully collecting highly sensitive personal information about its consumers' usage of its products seeks to settle a class complaint for approximately $3.75 million, the plaintiffs state in a motion for preliminary approval of the class action settlement filed March 9 in an Illinois federal court (N.P., et al. v. Standard Innovation [US], Corp., d/b/a We-Vibe, No. 16-8655, N.D. Ill.).
CHICAGO - An Illinois federal judge on March 8 found that a former property owner's claim for violation of the Truth in Lending Act (TILA) that arose out of an alleged attempt to rescind his mortgage was barred by a three-year statute of limitations, granting a motion to dismiss the case filed by Bank of America N.A. (BANA) (James Fendon v. Bank of America, N.A., No. 16-3531, N.D. Ill., 2017 U.S. Dist. LEXIS 33236).
CHICAGO - The mother of a boy who was diagnosed with E. coli in February filed suit March 8 against the maker of a soy nut butter in Illinois state court, claiming that it caused her son's illness (Brittany Weber v. The SoyNut Butter Company, No. 2017L002440, Ill. Cir. Cook Co.).
CHICAGO - An investor group has shown that a pharmaceutical company and certain of its current and former executive officers issued a series of misrepresentations concealing certain financial reporting errors for fiscal year 2014 and concealing the integration of two companies it acquired in violation of federal securities laws, a federal judge in Illinois ruled March 6 in denying the defendants' motion to dismiss (In re Akorn Inc. Securities Litigation, No. 15-1944, N.D. Ill.).