LexisNexis® Legal Newsroom
Mealey's PI/Product Liability - Family Of Assaulted Fraternity Pledge Files Suit Against Fraternities

PHILADELPHIA - The parents of a man who became permanently disabled as a result of the assault filed suit July 20 in Pennsylvania state court against two fraternities, their members and other businesses, claiming that the fraternities were irresponsible by allowing their members to get into a fight and failing to call an ambulance in a timely manner (Roderick J. McGibbon, et al. v. Alpha Upsilon Chapter of Pi Kappa Phi Fraternity, et al., No. 001934, Pa. Comm. Pls., Philadelphia Co.).

Mealey's Insurance - Administrators Cannot Violate Anti-Kickback Law, 3rd Circuit Finds

PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel ruled July 19 that administrators of an outpatient surgical facility cannot be found liable for violating Pennsylvania's insurance fraud statute because the anti-kickback provision of the statute applies only to health care providers (Aetna Life Insurance Company v. Huntingdon Valley Surgery Center, et al., No. 16-1468, 3rd Cir., 2017 U.S. App. LEXIS 12971).

Mealey's Antitrust/Unfair Competition - Partial Summary Judgment Granted In Blood Reagent Antitrust MDL

PHILADELPHIA - Blood reagent manufacturer Ortho-Clinical Diagnostics Inc. will face antitrust allegations that a 2001 price increase was fixed and that the defendant fraudulently concealed relevant facts from purchasers, a Pennsylvania federal judge ruled July 19 (In Re: Blood Reagents Antitrust Litigation, No. 09-md-2081, E.D. Pa., 2017 U.S. Dist. LEXIS 112091).

Mealey's Insurance - Liquidator Applies For Direct Payment Of Reinsurance To Insured

HARRISBURG, Pa. - Reliance Insurance Co.'s liquidator on July 20 sought the approval of a Pennsylvania court for a direct payment of $269,341 in proceeds by a guarantor of a reinsurer to an insured (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's PI/Product Liability - Partial Summary Judgment Granted In Blood Reagent Antitrust MDL

PHILADELPHIA - Blood reagent manufacturer Ortho-Clinical Diagnostics Inc. will face antitrust allegations that a 2001 price increase was fixed and that the defendant fraudulently concealed relevant facts from purchasers, a Pennsylvania federal judge ruled July 19 (In Re: Blood Reagents Antitrust Litigation, No. 09-md-2081, E.D. Pa., 2017 U.S. Dist. LEXIS 112091).

Mealey's PI/Product Liability - Pennsylvania Appeals Panel Upholds Defense Verdict In Medical Malpractice Suit

HARRISBURG, Pa. - A Pennsylvania Superior Court panel on July 18 upheld a defense verdict in favor of a hospital and a university that sent students to be residents at the hospital in a medical malpractice suit after finding that the trial court did not err in excluding the plaintiff's expert witness during trial (Raymond Seels v. Tenent Health System Hahnemann, et al., No. 1838 EDA 2015, Pa. Super., 2017 Pa. Super. LEXIS 532).

Mealey's Labor & Employment - Behavioral Health Services Employer Settles Class Wage Claims For $865,000

PHILADELPHIA - A Pennsylvania federal magistrate judge on July 13 granted approval of a $865,000 settlement to be paid by a behavioral health services company to end claims that it misclassified and underpaid its clinicians, consultants and therapists (Sarina Brown, et al. v. Progressions Behavioral Health Services, Inc., No. 16-6054, E.D. Pa., 2017 U.S. Dist. LEXIS 108487).

Mealey's Litigation Procedure - Behavioral Health Services Employer Settles Class Wage Claims For $865,000

PHILADELPHIA - A Pennsylvania federal magistrate judge on July 13 granted approval of a $865,000 settlement to be paid by a behavioral health services company to end claims that it misclassified and underpaid its clinicians, consultants and therapists (Sarina Brown, et al. v. Progressions Behavioral Health Services, Inc., No. 16-6054, E.D. Pa., 2017 U.S. Dist. LEXIS 108487).

Mealey's PI/Product Liability - Cephalon False Claims Act Lawsuit Marked Settled By Federal Judge

PHILADELPHIA - A Pennsylvania federal judge on July 12 again issued an order stating that a False Claims Act lawsuit against the former Cephalon Inc. has been settled (United States of America, ex rel. Matthew Cestra, et al. v. Cephalon, Inc., No. 14-1842, E.D. Pa.).

Mealey's Health Law - Judge: Opioid Possession, Intent To Distribute Charges Preclude Pretrial Release

PHILADELPHIA - A federal judge in Pennsylvania on July 7 denied a motion for pretrial release filed by a man accused of health care fraud, conspiracy to commit and 15 counts of possession of oxycodone with intent to distribute, finding that the nature of the drug trafficking claims showed that no condition would reasonably assure the safety of other people in the community (United States of America v. Michael Milchin, No. 17-cr-284, E.D. Pa., 2017 U.S. Dist. LEXIS 105570).

Mealey's Insurance - Judge: Opioid Possession, Intent To Distribute Charges Preclude Pretrial Release

PHILADELPHIA - A federal judge in Pennsylvania on July 7 denied a motion for pretrial release filed by a man accused of health care fraud, conspiracy to commit health care fraud and 15 counts of possession of oxycodone with intent to distribute, finding that the nature of the drug trafficking claims showed that no condition would reasonably assure the safety of other people in the community (United States of America v. Michael Milchin, No. 17-cr-284, E.D. Pa., 2017 U.S. Dist. LEXIS 105570).

Mealey's PI/Product Liability - Judge: Allegations Support Potential Successor Liability, Warrant Remand

PHILADELPHIA - A man presents sufficient allegations that a purchaser's retention of the executives, employees and business operations of the company it purchased puts it outside Pennsylvania's general prohibition on successor liability, a federal judge in Pennsylvania held June 28 in remanding the case (In re: Asbestos Products Liability Litigation, Maynard Herman, et al. v. Ametek Inc., et al., No. MDL 875, 17-1602, E.D. Pa., 2017 U.S. Dist. LEXIS 100635).

Mealey's Toxic Tort/Environmental - Judge: Allegations Support Potential Successor Liability, Warrant Remand

PHILADELPHIA - A man presents sufficient allegations that a purchaser's retention of the executives, employees and business operations of the company it purchased puts it outside Pennsylvania's general prohibition on successor liability, a federal judge in Pennsylvania held June 28 in remanding the case (In re: Asbestos Products Liability Litigation, Maynard Herman, et al. v. Ametek Inc., et al., No. MDL 875, 17-1602, E.D. Pa., 2017 U.S. Dist. LEXIS 100635).

Mealey's PI/Product Liability - Ethicon Pelvic Mesh Defense Verdict Being Challenged In Pennsylvania State Court

PHILADELPHIA - Pelvic mesh defendant Ethicon Inc. on June 29 told a Pennsylvania state court that it should not grant a plaintiff's motion for a new trial on damages only or a new trial because one juror worked for a drug company (In Re: Pelvic Mesh Litigation, Kimberly L. Adkins v. Ethicon, Inc., July Term 2013, No. 00919, No. 17062172, Pa. Comm. Pls., Philadelphia Co.).

Mealey's Insurance - 3rd Circuit Orders Resentencing Of Ambulance Transportation Company, Owner

PHILADELPHIA - A 2-1 panel of the Third Circuit U.S. Court of Appeals on June 21 ordered a federal judge in Pennsylvania to resentence the owner of an ambulance transportation company who pleaded guilty to health care fraud for submitting bills to Medicare for patients who did not need ambulance services, finding that the judge erred in calculating the amount of loss sustained by the insurer (United States of America v. Advantage Medical Transport, Inc., et al., No. 15-3853, 3rd Cir., 2017 U.S. App. LEXIS 10960).

Mealey's PI/Product Liability - False Claims Act Lawsuit Involving Antifungal Vfend Gets Interlocutory Review

PHILADELPHIA - A Pennsylvania federal judge on June 22 certified a question about the viability of an 11-year-old False Claims Act (FCA) lawsuit alleging that Pfizer Inc.'s misrepresentations about use of the antifungal drug Vfend in cancer patients resulted in the submission of false claims to the federal government (The United States of America, et al., ex rel. Catherine A. Brown, et al. v. Pfizer, Inc., No. 05-6795, E.D. Pa., 2017 U.S. Dist. LEXIS 96291).

Mealey's Insurance - Pre-Existing Condition Provision Barred Claim For Long-Term Disability Benefits

HARRISBURG, Pa. - A Pennsylvania federal judge on June 19 determined that a disability insurer's denial of long-term disability (LTD) benefits was not arbitrary and capricious because the policy included a pre-existing condition exclusion that clearly precluded coverage to the claimant (Yvonne Hilbert v. The Lincoln National Life Insurance Co., 15-471, M.D. Pa., 2017 U.S. Dist. LEXIS 93424).

Mealey's Insurance - Judge Dismisses Insurer, Reinsurer's Negligence Suit For Lack Of Jurisdiction

SCRANTON, Pa. - An insured's presence destroys complete diversity jurisdiction in a negligence lawsuit also involving its subrogated insurer and reinsurer, a Pennsylvania federal judge ruled June 20, dismissing the lawsuit because it cannot proceed without the insured (RAD Manufacturing LLC f/k/a RAD Wood Work Co., et al. v. Advanced Fabrication Services Inc. t/d/b/a AFS Energy Systems, No. 16-2138, M.D. Pa., 2017 U.S. Dist. LEXIS 94575).

Mealey's Litigation Procedure - Ruling On Expert Upheld In Shooting Victim's Claims Against Police Officer

PHILADELPHIA - A man who was shot in his home by an off-duty police officer is not entitled to a new trial on his excessive force claims against the officer because the victim's attempt to discredit an expert based on alleged mismanagement of a prior job was properly denied, a Pennsylvania federal magistrate judge ruled June 19 (Joshua Taylor v. Police Officer Larry Shields, No. 13-2241, E.D. Pa., 2017 U.S. Dist. LEXIS 93669).

Mealey's PI/Product Liability - Pennsylvania Appeals Panel Affirms Defense Verdict In Medical Malpractice Suit

HARRISBURG, Pa. - In an unpublished opinion, a panel of the Pennsylvania Superior Court on June 13 affirmed a defense verdict in a medical malpractice suit after finding that the trial court did not err in allowing defense witnesses to testify to a doctor's reputation and that the expert witnesses were able to testify beyond the scope of their expert opinions (James Pellechia v. Yen Shou Chen, M.D., et al., No. 1208 EDA 2015, Pa. Super., 2017 Pa. Super Unpub. LEXIS 2272).

Mealey's Antitrust/Unfair Competition - Pa. Federal Judge Appoints Lead Plaintiff In Securities Fraud Class Action Suit

PHILADELPHIA - A Pennsylvania federal judge on June 13 appointed the lead plaintiff in a securities fraud class action suit after determining that the sole movant for lead plaintiff suffered the largest financial loss in the proposed class of more than $83,000 (Courtney Elkin v. Walter Investment Management Group et al., No. 17-2025, E.D. Pa., 2017 U.S. Dist. LEXIS 90156).

Mealey's Litigation Procedure - Pa. Federal Judge Appoints Lead Plaintiff In Securities Fraud Class Action Suit

PHILADELPHIA - A Pennsylvania federal judge on June 13 appointed the lead plaintiff in a securities fraud class action suit after determining that the sole movant for lead plaintiff suffered the largest financial loss in the proposed class of more than $83,000 (Courtney Elkin v. Walter Investment Management Group et al., No. 17-2025, E.D. Pa., 2017 U.S. Dist. LEXIS 90156).

Mealey's Insurance - Pennsylvania Federal Judge: Duty To Defend Is Owed For Contaminated Water Suit

PITTSBURGH - Insurers have a duty to defend a school district and its superintendent against an underlying suit alleging that the district was negligent in failing to monitor a water system that became contaminated with lead and copper because the underlying complaint sounds in negligence and it is unclear if the underlying injuries were caused by the ingestion of lead, a Pennsylvania federal judge said June 9 (The Netherlands Insurance Co., et al. v. Butler Area School District, et al., No. 17-341, W.D. Pa., 2017 U.S. Dist. LEXIS 89073).

Mealey's Insurance - Judge Approves $32M In Guaranty Association Claims In Reliance Liquidation

HARRISBURG, Pa. - A Pennsylvania trial judge on June 7 granted a recommendation by the liquidator of Reliance Insurance Co. to approve 250 individual class (b) insurance guaranty associations (GAs) claims that were not previously submitted for approval for a total amount of $32,213,482.41 (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

Mealey's Labor & Employment - Conditional Class Certification Granted In Oil Field Employees' Wage-And-Hour Suit

PITTSBURGH - An employee of a Pennsylvania oil field who alleges that he was paid miscalculated overtime wages or none at all was granted conditional class certification June 6 in his wage-and-hour lawsuit by a Pennsylvania federal judge (Christopher Meals, et al. v. Keane Frac GP LLC, et al., No. 16-1674, W.D. Pa., 2017 U.S. Dist. LEXIS 86149).