LexisNexis® Legal Newsroom
Mealey's Insurance - Federal Judge: California Law Applies To Claims In Water Damage Coverage Suit

NEW BERN, N.C. - A North Carolina federal judge on Nov. 9 determined that California law should be applied to a dispute over coverage for water damages because the policy at issue was issued in California and the insured's principal place of business is in California (Certain Underwriters at Lloyd's of London v. American Realty Advisors, et al., Nos. 16-940, 17-74, E.D. N.C., 2017 U.S. Dist. LEXIS 185842).

Mealey's Health Law - Evidence Supported Convictions For Fraud, Kickback Charges, 5th Circuit Says

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on Nov. 7 upheld convictions of a man and his son who were accused of health care fraud and paying kickbacks to obtain business for their partial hospitalization programs (PHPs), ruling that evidence presented by the government was sufficient to support the jury's verdict (United States of America v. Earnest Gibson III, et al., No. 15-20323, 5th Cir., 2017 U.S. Dist. LEXIS 22261).

Mealey's Antitrust/Unfair Competition - California Court Grants Judgment For Lender On Junk Fax Claims

SAN DIEGO - A California federal judge on Nov. 6 granted summary judgment for a small business lender, finding that it did not violate California's unfair competition law (UCL) and other state laws when it sent various small business owners "junk faxes" (David Meyer, et al. v. Capital Alliance Group, et al., No. 15-CV-2405, S.D. Calif., 2017 U.S. Dist. LEXIS 183690).

Mealey's Health Law - Woman Sentenced To 1 Year In Prison For Health Care Fraud

NEW ORLEANS - A federal judge in Louisiana on Oct. 13 sentenced a woman to one year and one day in prison and ordered her to pay $536,724 in restitution after she pleaded guilty to one count of health care fraud for misappropriating Medicaid funds received by a pediatric clinic where she worked for her to pay off unauthorized charges on a business credit card (United States of America v. Monica Sylvest, No. 17cr24, E.D. La.).

Mealey's Antitrust/Unfair Competition - Judge Dismisses UCL, Implied Covenant Claims In Software Platform Dispute

SAN FRANCISCO - A California federal judge on Sept. 25 partially granted a gift company's motion to dismiss a software solutions and support company's claim for breach of the implied covenant of good faith and fair dealing but also dismissed a counterclaim for violation of California's unfair competition law (UCL), finding that the gift company failed to show that consumers were injured by an allegedly unlawful business practice committed by the software firm (Pierry Inc. v. Thirty-One Gifts, LLC, No. 17-cv-03074, N.D. Calif., 2017 U.S. Dist. LEXIS 156681).

Mealey's Litigation Procedure - Investor Sues Pipe Maker, Others Over Financial Condition Misstatements

BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial condition in violation of federal securities laws, a shareholder argues in an Aug. 23 securities class action complaint filed in New York federal court (Matthew Spindler v. Forterra Inc., et al., No. 17-4978, E.D. N.Y.).

Mealey's Securities/D&O Liability - Investor Sues Pipe Maker, Others Over Financial Condition Misstatements

BROOKLYN, N.Y. - A manufacturer of water and drainage pipes and various precast products, and certain of its executive officers and directors issued misrepresentations in Securities and Exchange Commission documents for an initial public offering (IPO) regarding the company's business and financial condition in violation of federal securities laws, a shareholder argues in an Aug. 23 securities class action complaint filed in New York federal court (Matthew Spindler v. Forterra Inc., et al., No. 17-4978, E.D. N.Y.).

Mealey's Litigation Procedure - Pennsylvania Agency Deems Mayor's Facebook Posts To Be Public Records

HARRISBURG, Pa. - Because a Pennsylvania borough's mayor's public Facebook page was created and maintained in connection with the municipality's official business, the Pennsylvania Office of Open Records (OOR) on Aug. 16 determined that posts and messages connected with the page are public records and subject to disclosure under the state's Right-to-Know Law (RTKL) (Noel Purdy v. Chambersburg, No. AP 2017-1229, Pa. Ofc. Open Rec.).

Mealey's Banking & Finance - $97.5M Settlement Preliminarily Approved, Settlement Hearing Set In JCPenney Securities Suit

TYLER, Texas - A Texas federal judge on July 24 preliminarily approved a $97.5 million settlement on claims that retailer JCPenney Co. Inc. and certain of its executive officers misrepresented the company's business and financial condition in violation of federal securities laws and scheduled a settlement hearing for Nov. 29 (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Litigation Procedure - Lead Plaintiffs Pleaded Actionable Misstatements In Securities Suit, Judge Rules

SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a restaurant chain, certain of its senior officers and others have properly shown that the defendants issued actionable misstatements and omissions regarding the business and financial condition of the company in violation of federal securities laws, a federal judge in California ruled Aug. 4 in denying the defendants' motion to dismiss (Daniel Turocy v. El Pollo Loco Holdings Inc., et al., No. 15-1343, C.D. Calif.).

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

SANTA ANA, Calif. - Lead plaintiffs in a securities class action lawsuit against a restaurant chain, certain of its senior officers and others have properly shown that the defendants issued actionable misstatements and omissions regarding the business and financial condition of the company in violation of federal securities laws, a federal judge in California ruled Aug. 4 in denying the defendants' motion to dismiss (Daniel Turocy v. El Pollo Loco Holdings Inc., et al., No. 15-1343, C.D. Calif.).

Mealey's Litigation Procedure - Misrepresentation Claims In Securities Suit Too Vague, 8th Circuit Panel Rules

ST. PAUL, Minn. - Lead plaintiffs in a securities class action lawsuit against a 3D printer manufacturer and certain of its executive officers have failed to plead any actionable misrepresentations in claiming that the defendants violated federal securities laws by misrepresenting the company's business prospects, an Eighth Circuit U.S. Court of Appeals panel ruled July 25 in affirming a federal district court's ruling dismissing the suit (In re Stratasys Ltd. Shareholder Securities Litigation, No. 16-3264, 8th Cir.; 2017 U.S. App. LEXIS 13370).

Mealey's Securities/D&O Liability - Misrepresentation Claims In Securities Suit Too Vague, 8th Circuit Panel Rules

ST. PAUL, Minn. - Lead plaintiffs in a securities class action lawsuit against a 3D printer manufacturer and certain of its executive officers have failed to plead any actionable misrepresentations in claiming that the defendants violated federal securities laws by misrepresenting the company's business prospects, an Eighth Circuit U.S. Court of Appeals panel ruled July 25 in affirming a federal district court's ruling dismissing the suit (In re Stratasys Ltd. Shareholder Securities Litigation, No. 16-3264, 8th Cir.; 2017 U.S. App. LEXIS 13370).

Mealey's Litigation Procedure - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).

Mealey's Securities/D&O Liability - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).

Mealey's Litigation Procedure - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Securities/D&O Liability - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Litigation Procedure - Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules

SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).

Mealey's Securities/D&O Liability - Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules

SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).

Mealey's Litigation Procedure - Investor Sues Emergency Room Operator Over Alleged Misrepresentations

TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).

Mealey's Securities/D&O Liability - Investor Sues Emergency Room Operator Over Alleged Misrepresentations

TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).

Mealey's Litigation Procedure - Judge Grants Preliminary Approval Of $10.5M Settlement In Stock Drop Suit

HOUSTON - A federal judge in Texas on April 10 granted preliminary approval of a $10.5 million settlement between investors and one of the country's largest industrial, engineering and construction companies in a securities class action lawsuit alleging that the company and certain of its current and former senior officers misrepresented the company's business and financial condition in violation of federal securities laws (In re KBR Inc. Securities Litigation, No. 14-1287, S.D. Texas).

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $10.5M Settlement In Stock Drop Suit

HOUSTON - A federal judge in Texas on April 10 granted preliminary approval of a $10.5 million settlement between investors and one of the country's largest industrial, engineering and construction companies in a securities class action lawsuit alleging that the company and certain of its current and former senior officers misrepresented the company's business and financial condition in violation of federal securities laws (In re KBR Inc. Securities Litigation, No. 14-1287, S.D. Texas).

Mealey's Labor & Employment - 9th Circuit: Cab Drivers Working The Phoenix Airport Are Not Employees

SAN FRANCISCO - Taxi drivers who lease cabs to pick up passengers at Phoenix Sky Harbor International Airport in Arizona are in business for themselves and not economically dependent on AAA Cab Service Inc. and are not employees under federal or state law, the Ninth Circuit U.S. Court of Appeals ruled March 27 in the drivers' consolidated class action, affirming a trial court's grant of summary judgment in AAA Cab (Ivan Pentchev Iontchev, et al. v. AAA Cab Service, Inc., et al., No. 15-15789, 9th Cir., 2017 U.S. App. LEXIS 5326).

Mealey's Litigation Procedure - 9th Circuit: Cab Drivers Working The Phoenix Airport Are Not Employees

SAN FRANCISCO - Taxi drivers who lease cabs to pick up passengers at Phoenix Sky Harbor International Airport in Arizona are in business for themselves and not economically dependent on AAA Cab Service Inc. and are not employees under federal or state law, the Ninth Circuit U.S. Court of Appeals ruled March 27 in the drivers' consolidated class action, affirming a trial court's grant of summary judgment in AAA Cab (Ivan Pentchev Iontchev, et al. v. AAA Cab Service, Inc., et al., No. 15-15789, 9th Cir., 2017 U.S. App. LEXIS 5326).