LexisNexis® Legal Newsroom
Mealey's PI/Product Liability - 3rd Circuit Overturns Merck's Preemption Win In Fosamax Cases

PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel on March 22 reversed a federal judge in New Jersey's ruling awarding summary judgment to the maker of the osteoporosis drug Fosamax, finding that the manufacturer was unable to produce evidence showing that the Food and Drug Administration would not have approved a stronger warning on the drug's label regarding the risk of femoral fracture (In re Fosamax [Alendronate Sodium] Products Liability Litigation, No. 14-1900, 3rd Cir., 2017 U.S. App. LEXIS 5075).

Mealey's Labor & Employment - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

Mealey's Health Law - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

Mealey's Antitrust/Unfair Competition - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

Mealey's Litigation Procedure - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement Income Security Act of 1974, the Sherman Act and numerous state laws, four consumers and Type 1 Diabetes Defense Foundation allege in a March 17 class complaint filed in the U.S. District Court for the District of New Jersey (Julia Boss, et al. v. CVS Health Corporation, et al., No. 17-1823, D. N.J.).

Mealey's Insurance - Judge: Fact Issue Exists As To Whether Insured Submitted Acceptable Proof Of Loss

NEWARK, N.J. - Finding that there is a genuine issue of material fact regarding whether an insured complied with a provision of a Standard Flood Insurance Policy (SFIP) regarding proof of loss, a New Jersey federal judge on March 20 denied a federal flood insurer's motion for summary judgment in a breach of contract lawsuit stemming from Superstorm Sandy (Thomas Tennis v. Selective Insurance Company of America, No. 15-5801, D. N.J., 2017 U.S. Dist. LEXIS 39244).

Mealey's Litigation Procedure - Judge Rules On Motions To Exclude Testimony In Putative Class Action

TRENTON, N.J. - A New Jersey federal judge on March 17 decided several motions to exclude testimony in a putative class action against the manufacturer and retailers of a washer that was not energy efficient despite a label on the product (Charlene Dzielak, et al. v. Whirlpool Corp., et al., No. 12-0089, D. N.J., 2017 U.S. Dist. LEXIS 39232).

Mealey's Litigation Procedure - Banks Agree To Pay $165M To Settle Mortgage-Backed Securities Claims

NEW YORK - Underwriters Royal Bank of Scotland Securities Inc., Deutsche Bank Securities Inc. and Wells Fargo Advisors LLC on March 15 agreed to pay a combined $165 million to settle claims that they took part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of mortgage-backed securities (MBS) (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.).

Mealey's Securities/D&O Liability - Banks Agree To Pay $165M To Settle Mortgage-Backed Securities Claims

NEW YORK - Underwriters Royal Bank of Scotland Securities Inc., Deutsche Bank Securities Inc. and Wells Fargo Advisors LLC on March 15 agreed to pay a combined $165 million to settle claims that they took part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of mortgage-backed securities (MBS) (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.).

Mealey's Insurance - Suit To Recover Reinsurance Losses From E&O Insurer Remanded To Trial Court

TRENTON, N.J. - A New Jersey appellate panel on March 10 issued a nonprecedential ruling reversing and remanding the dismissal of a breach of contract case against an errors and omissions (E&O) insurer, finding that shareholders of a reinsurer who had sued the E&Q policyholder did not receive due process in a Bermuda case regarding challenges to the validity of the E&O policy (Robert D. Ferguson, et al. v. Travelers Indemnity Company, et al., No. A-0028-15T1, N.J. Sup., App. Div.).

Mealey's Litigation Procedure - Benicar MDL Plaintiff Experts Must Produce Patient Records Relied On In Reports

CAMDEN, N.J. - A New Jersey federal magistrate judge overseeing the Benicar multidistrict litigation on March 13 ordered plaintiffs to produce redacted records of Benicar patients on which two experts relied (In Re: Benicar [Olmesartan] Products Liability Litigation, MDL Docket No. 2606, No. 15-2606, D. N.J.).

Mealey's PI/Product Liability - Benicar MDL Plaintiff Experts Must Produce Patient Records Relied On In Reports

CAMDEN, N.J. - A New Jersey federal magistrate judge overseeing the Benicar multidistrict litigation on March 13 ordered plaintiffs to produce redacted records of Benicar patients on which two experts relied (In Re: Benicar [Olmesartan] Products Liability Litigation, MDL Docket No. 2606, No. 15-2606, D. N.J.).

Mealey's Insurance - Federal Judge: Public Adjuster's Declaration Does Not Create Disputed Issue Of Fact

CAMDEN, N.J. - Granting a federal flood insurer's motion for summary judgment in a Superstorm Sandy coverage dispute, a New Jersey federal judge on March 1 rejected the insured's argument that there is a genuine dispute of material fact regarding his reliance on a public adjuster's declaration as to damages (Dane Knutson v. Selective Insurance Company, et al., No. 16-306, D. N.J., 2017 U.S. Dist. LEXIS 29322).

Mealey's PI/Product Liability - Heart Device Case Dismissed With Prejudice; No Parallel Claim Found

TRENTON, N.J. - A New Jersey federal judge on Feb. 27 dismissed with prejudice a heart device wrongful death complaint, finding that the plaintiff failed to assert a claim that parallels federal law and escapes federal preemption (Barbara A. Chester, et al. v. Boston Scientific Corp., et al., No. 16-2421, D. N.J., 2017 U.S. Dist. LEXIS 26676).

Mealey's IP/Tech - New Jersey Federal Judge Denies Injunction In Trademark Case

TRENTON, N.J. - Citing the dates upon which a plaintiff and defendant first began using a disputed trademark, a New Jersey federal judge on Feb. 24 denied the plaintiff's request for preliminary injunctive relief (Watch Yo Mouth LLC v. Denbigh and Associates LLC, d/b/a Skyler Innovations, No. 17-717, D. N.J., 2017 U.S. Dist. LEXIS 26258).

Mealey's Labor & Employment - Judge Remands Implied Insurance Contract Claims As Outside ERISA

NEWARK, N.J. - A neurosurgical specialist's claim seeking payment for out-of-network care is based on an implied contract providing a separate and independent basis for recovery and thus is not preempted by ERISA, a federal judge in New Jersey held Feb. 17 in remanding the case (North Jersey Brain & Spine Center v. Aetna Life Insurance Co., et al., No. 16-1544, D. N.J., 2017 U.S. Dist. LEXIS 22710).

Mealey's Health Law - Claims In Bad Faith Suit Not Subject To ERISA Preemption, Magistrate Rules

NEWARK, N.J. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because a third-party's claims are not preempted by the Employee Retirement Income Security Act (ERISA), a federal magistrate judge in New Jersey ruled Feb. 17 (North Jersey Brain & Spine Center v. Aetna Life Insurance Co., et al., No. 16-1544, D. N.J., 2017 U.S. Dist. LEXIS 22710).

Mealey's Insurance - Claims In Bad Faith Suit Not Subject To ERISA Preemption, Magistrate Rules

NEWARK, N.J. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because a third-party's claims are not preempted by the Employee Retirement Income Security Act (ERISA), a federal magistrate judge in New Jersey ruled Feb. 17 (North Jersey Brain & Spine Center v. Aetna Life Insurance Co., et al., No. 16-1544, D. N.J., 2017 U.S. Dist. LEXIS 22710).

Mealey's PI/Product Liability - New Jersey Appeals Panel Says Plaintiff Can Sue For Most Recent Recall Of Wipes

TRENTON, N.J. - A New Jersey appeals court on Feb. 16 said a plaintiff who claims that he was infected by recalled medical wipes missed the state statute of limitations for one lot but not the second (Kenneth Nicolosi, et al. v. Smith and Nephew, Inc., et al., No. 1-1108-15T2, N.J. Super., App. Div., 2017 N.J. Super. Unpub. LEXIS 389).

Mealey's Toxic Tort/Environmental - Groundwater Contamination Case Should Be Stayed Pending Appeal, Groups Argue

TRENTON, N.J. - Environmental advocacy groups on Feb. 14 filed a brief in New Jersey federal court contending that the court should stay their groundwater contamination case against NL Industries Inc. pending appeal (Raritan Baykeeper Inc., et al. v. NL Industries Inc., et al., No. 09-4117, D. N.J.).

Mealey's Insurance - Judge Rules In Insurer's Favor In Suit Arising From Superstorm Sandy Flood Damage

CAMDEN, N.J. - A New Jersey federal judge on Feb. 14 granted a federal flood insurer's motion for summary judgment in a lawsuit brought by insureds seeking a declaration that they are entitled to coverage and compensatory damages stemming from the insurer's purported mishandling of their Superstorm Sandy flood claim (Herbert Ruth and Danna Ruth v. Selective Insurance Company of America, No. 15-2616, D. N.J., 2017 U.S. Dist. LEXIS 20534).

Mealey's Insurance - Federal Judge Refuses To Dismiss Insurers' Claim Under Defend Trade Secrets Act

TRENTON, N.J. - A New Jersey federal judge on Feb. 7 refused to dismiss insurers' federal claims under the Defend Trade Secrets Act of 2016 (DTSA) and the Computer Fraud and Abuse Act (CFAA) in their lawsuit alleging that the defendant competitors "willfully and maliciously" targeted and solicited at least 15 of their employees for employment (Chubb INA Holdings Inc. [f/k/a The Chubb Corporation], et al. v. Michael Chang, et al., No. 16-2354, D. N.J., 2017 U.S. Dist. LEXIS 16744).

Mealey's Insurance - Judge: Developer Has No Insurable Interest, Is Not Entitled To Building Coverage

TRENTON, N.J. - A New Jersey federal judge on Feb. 8 found that the developer of a condominium that is also a member of the insured condominium association does not have an insurable interest and is not entitled to building coverage under a standard flood insurance policy (SFIP), granting the insurer's motion for summary judgment in a dispute over coverage for flood damage caused when the Raritan River overflowed (Branchburg Commerce Park, LLC v. Hartford Insurance Company of the Midwest, et al., No. 15-6719, D. N.J.; 2017 U.S. Dist. LEXIS 17518).

Mealey's IP/Tech - Federal Judge Refuses To Dismiss Insurers' Claim Under Defend Trade Secrets Act

TRENTON, N.J. - A New Jersey federal judge on Feb. 7 refused to dismiss insurers' federal claims under the Defend Trade Secrets Act of 2016 (DTSA) and the Computer Fraud and Abuse Act (CFAA) in their lawsuit alleging that the defendant competitors "willfully and maliciously" targeted and solicited at least 15 of their employees for employment (Chubb INA Holdings Inc. [f/k/a The Chubb Corporation], et al. v. Michael Chang, et al., No. 16-2354, D. N.J., 2017 U.S. Dist. LEXIS 16744).

Mealey's Litigation Procedure - Magistrate Judge: Information Created During ADR Process Is Not Discoverable

NEWARK, N.J. - A federal magistrate judge in New Jersey on Feb. 7 denied a motion to compel filed by a third-party defendant company in a Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) lawsuit seeking information from another third party, holding that information created as part of an alternative dispute resolution (ADR) process is not discoverable (New Jersey Department of Environmental Protection, et al. v. American Thermoplastics Corp., et al., No. 98-CV-4781, D. N.J., 2017 U.S. Dist. LEXIS 16743).