LexisNexis® Legal Newsroom
    Mealey's IP/Tech - Supreme Court Grants Certiorari In Patent Dispute Over Biologics

    WASHINGTON, D.C. - In its Jan. 13 orders list, the U.S. Supreme Court announced that it will hear a closely watched dispute between two drug makers over their competing interpretations of several provisions of the Biologics Price Competition and Innovation Act (BPCIA) (Sandoz, Inc. v. Amgen, Inc., No. 15-1039, U.S. Sup.; Amgen Inc. v. Sandoz Inc., No. 15-1195, U.S. Sup.).

    Mealey's Labor & Employment - U.S. Supreme Court Accepts, Consolidates 3 Class Action Waiver Suits

    WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 granted petitions for writ of certiorari filed in three cases challenging the barring of class or collection action waivers in employment agreements, consolidated the three cases and granted a total of one hour for oral arguments (Epic Systems Corp. v. Jacob Lewis, No. 16-285, Ernst & Young, et al. v. Stephen Morris, et al., No. 16-300, NLRB v. Murphy Oil USA, Inc., et al., No. 16-307, U.S. Sup.).

    Mealey's Securities/D&O Liability - High Court To Hear Appeal In SEC Enforcement Action Over Disgorgement Fee

    WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 13 agreed to hear an appeal in a Securities and Exchange Commission enforcement action in which an investment adviser seeks a determination as to whether claims for disgorgement are subject to a five-year statute of limitations under federal statute (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).

    Mealey's Labor & Employment - Approval Of Wage Class Settlement Denied; Evaluation Of Recovery Requested

    NEW YORK - A New York federal judge on Jan. 12 denied preliminary approval of a $290,000 wage-and-hour settlement, finding that the parties failed to provide an evaluation of the range of reasonable recoveries (Sean Patterson, et al. v. Premier Construction Co. Inc., et al., No. 15-662, E.D. N.Y.; 2017 U.S. Dist. LEXIS 4845).

    Mealey's Health Law - Michigan Tribe, Blue Cross Settle ERISA Plan Administration Claims

    DETROIT - Michigan's Little River Band of Ottawa Indians and Blue Cross Blue Shield have settled the tribe's claims that Blue Cross breached its fiduciary duty and violated the Employee Retirement Income Security Act (ERISA) in administering the tribe's health care plan for employees, according to a dismissal order filed Jan. 11 in federal court (Little River Band of Ottawa Indians, et al. v. Blue Cross Blue Shield of Michigan, No. 2:15-cv-13708, E.D. Mich.).

    Mealey's Securities/D&O Liability - Zimmer Biomet To Pay $30.4M To Settle Foreign Bribery Claims By United States

    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.).

    Mealey's Banking & Finance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

    ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two members of its board of directors by a former board member and her two daughters (Jerry's Enterprises, Inc. v. U.S. Specialty Insurance Co., No. 15-3324, 8th Cir.; 2017 U.S. App. LEXIS 475).

    Mealey's Litigation Procedure - South Carolina High Court Affirms Time-On-The-Risk Allocation Of Insurer's Costs

    COLUMBIA, S.C. - The majority of the South Carolina Supreme Court on Jan. 11 affirmed a special referee's finding that coverage under commercial general liability insurance policies was triggered and calculation of an insurer's pro rata portion of the progressive damages based on its time on the risk (Harleysville Group Insurance v. Heritage Communities Inc., et al., No. 2013-001281 & 2013-001291, S.C. Sup.; 2017 S.C. LEXIS 8).

    Mealey's Banking & Finance - Judge Finds UCL Claims Against Wells Fargo Fail For Lack Of Standing

    SAN FRANCISCO - After finding that two borrowers failed to adequately plead their claims for violation of California's unfair competition law (UCL) and negligence, a California federal judge on Jan. 10 granted a motion to dismiss filed by Wells Fargo Bank N.A. (Michelle A. Graham, et al. v. Wells Fargo Bank, N.A., No. 3:15-cv-04220. N.D. Calif.; 2017 U.S. Dist. LEXIS 3598).

    Mealey's Antitrust/Unfair Competition - Judge Finds UCL Claims Against Wells Fargo Fail For Lack Of Standing

    SAN FRANCISCO - After finding that two borrowers failed to adequately plead their claims for violation of California's unfair competition law (UCL) and negligence, a California federal judge on Jan. 10 granted a motion to dismiss filed by Wells Fargo Bank N.A. (Michelle A. Graham, et al. v. Wells Fargo Bank, N.A., No. 3:15-cv-04220. N.D. Calif.; 2017 U.S. Dist. LEXIS 3598).

    Mealey's Insurance - Plaintiff Not Owed Coverage As Additional Insured, 9th Circuit Affirms

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower federal court's ruling in favor of an insurer in a breach of contract lawsuit seeking coverage for property and business interruption losses (Bita Trading Inc. v. Nationwide Mutual Insurance Co., et al., No. 15-55371, 9th Cir.; 2017 U.S. App. LEXIS 521).

    Mealey's IP/Tech - Patent Board Grants Mylan Request For Review Of Cancer Treatment Patent

    ALEXANDRIA, Va. - The Patent Trial and Appeal Board on Jan. 10 granted a petition for inter partes review (IPR) of a patented cancer treatment method but denied a petitioner's request for joinder with a similar IPR (Mylan Pharmaceuticals Inc. v. Janssen Oncology Inc., No. IPR2016-01332, PTAB).

    Mealey's Labor & Employment - Michigan Tribe, Blue Cross Settle ERISA Plan Administration Claims

    DETROIT - Michigan's Little River Band of Ottawa Indians and Blue Cross Blue Shield have settled the tribe's claims that Blue Cross breached its fiduciary duty and violated the Employee Retirement Income Security Act (ERISA) in administering the tribe's health care plan for employees, according to a dismissal order filed Jan. 11 in federal court (Little River Band of Ottawa Indians, et al. v. Blue Cross Blue Shield of Michigan, No. 2:15-cv-13708, E.D. Mich.).

    Mealey's Litigation Procedure - Judge Declines To Bar Expert Testimony In Constitutional Violation Suit Against Officers

    FORT WAYNE, Ind. - In deciding a summary judgment motion on constitutional violation and state law claims against a town and police officers, an Indiana federal judge on Jan. 11 refused to exclude expert testimony because it was unnecessary to rule on summary judgment (David Marshall III and LaMisa Marshall v. Town of Merrillville, et al., No. 14-50, N.D. Ind.; 2017 U.S. Dist. LEXIS 3977).

    Mealey's Insurance - Pollution Exclusions Clearly Bar Coverage For Underlying Water Contamination Judgment

    ST. LOUIS - A Missouri federal judge did not err in granting three insurers' motions for judgment on the pleadings in a suit filed by a class representative seeking to satisfy an $82 million judgment entered against the insured for damages arising out of water contamination, the Eighth Circuit U.S. Court of Appeals said Jan. 12, noting that radium is clearly barred by the policies' pollution exclusion (Barbara Williams v. Employers Mutual Casualty Co., No. 15-3573, 8th Cir.).

    Mealey's Toxic Tort/Environmental - EPA Proposes Ban On Trichloroethylene, Cites 'Unreasonable Risks' To Health

    WASHINGTON, D.C. - The U.S. Environmental Protection Agency on Jan. 11 advertised in the Federal Register a proposed rule to prohibit the manufacture, import, processing and distribution of trichloroethylene (TCE), a volatile organic compound used in industrial and commercial processes, due to "unreasonable risks" to health.

    Mealey's Insurance - Rescission Of Product Contamination Policy Was Proper, 3rd Circuit Says

    PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 11 affirmed that an insurer was entitled to rescind a product contamination insurance policy because it is clear that the insured made an intentional misrepresentation on the policy application upon which the insurer relied before issuing the policy (H.J. Heinz Co. v. Starr Surplus Lines Insurance Co., No. 16-1447, 3rd Cir.).

    Mealey's Insurance - Insured's Insurance Bad Faith Claim Survives Motion To Dismiss

    SCRANTON, Pa. - A federal judge in Pennsylvania on Jan. 12 denied an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that insured has pleaded sufficient evidence to support the claim (Robert Hughes v. State Farm Mutual Automobile Insurance Co., No. 16-2240, M.D. Pa.; 2017 U.S. Dist. LEXIS 4852).

    Mealey's Litigation Procedure - Approval Of Wage Class Settlement Denied; Evaluation Of Recovery Requested

    NEW YORK - A New York federal judge on Jan. 12 denied preliminary approval of a $290,000 wage-and-hour settlement, finding that the parties failed to provide an evaluation of the range of reasonable recoveries (Sean Patterson, et al. v. Premier Construction Co. Inc., et al., No. 15-662, E.D. N.Y.; 2017 U.S. Dist. LEXIS 4845).

    Mealey's Insurance - Directors, Officers Policy Does Not Cover FDIC's Claims, Majority Says, Reverses

    PASADENA, Calif. - A majority of the Ninth Circuit U.S. Court of Appeals on Jan. 10 found that a directors and officers liability insurance policy unambiguously excludes from coverage the Federal Deposit Insurance Corp.'s negligence, gross negligence and breach of fiduciary duty claims against a failed bank's former directors and officers, reversing and remanding a lower court (Federal Deposit Insurance Corporation, as Receiver for Security Pacific Bank v. BancInsure, Inc., No. 14-56132, 9th Cir.; 2017 U.S. App. LEXIS 452).

    Mealey's Insurance - South Carolina High Court Affirms Time-On-The-Risk Allocation Of Insurer's Costs

    COLUMBIA, S.C. - The majority of the South Carolina Supreme Court on Jan. 11 affirmed a special referee's finding that coverage under commercial general liability insurance policies was triggered and calculation of an insurer's pro rata portion of the progressive damages based on its time on the risk (Harleysville Group Insurance v. Heritage Communities Inc., et al., No. 2013-001281 & 2013-001291, S.C. Sup.; 2017 S.C. LEXIS 8).

    Mealey's PI/Product Liability - Zimmer Biomet To Pay $30.4M To Settle Foreign Bribery Claims By United States

    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.).

    Mealey's Insurance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

    ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two members of its board of directors by a former board member and her two daughters (Jerry's Enterprises, Inc. v. U.S. Specialty Insurance Co., No. 15-3324, 8th Cir.; 2017 U.S. App. LEXIS 475).

    Mealey's PI/Product Liability - Shire $350M Settlement Said To Be Largest For Medical Device False Claims

    WASHINGTON, D.C. - In what the U.S. Justice Department calls the largest False Claims Act recovery in a medical device kickback case, Shire Pharmaceuticals LLC and certain subsidiaries will pay $350 million to settle federal and state allegations that the defendants paid remuneration to health care providers to use Dermagraft, a bioengineered human skin graft, according to a Jan. 11 department press release (United States ex rel. Vinca v. Advanced BioHealing, Inc., No. 11-176, United States ex rel. Harvey v. Advanced BioHealing, Inc., No. 16-303, United States ex rel. Medolla v. Advanced BioHealing, Inc., No. 12-575, United States, et al., ex rel. Petty v. Shire Regenerative Medicine, Inc., No. 14-969, United States ex rel. Webb v. Advanced BioHealing, Inc., No. 14-1055, and United States, et al., ex rel. Montecalvo v. Shire Regenerative Medicine, Inc., No. 16-268, M.D. Fla.).

    Mealey's Litigation Procedure - Chevron: Decision By 9th Circuit Supports Its Claim That Class Status Not Proper

    SAN FRANCISCO - Chevron Corp. on Jan. 10 filed a brief in California federal court contending that a recent decision handed down by the Ninth Circuit U.S. Court of Appeals supports its contention that a proposed class representing Nigerian residents who contend that they have been injured as a result of an oil rig explosion should not be granted class status because the plaintiffs do not meet the criteria for certification (Natto Iyela Gbarabe v. Chevron Corporation, No. 14-173, N.D. Calif.).