The Pennsylvania Supreme Court closed the book Wednesday on an appeal brought by two former corporate members of Highmark Inc. seeking standing for the claim that the nonprofit insurer had violated state law by racking up some $1.2 billion in profits in recent years.
United Pet Foods Inc. missed its chance to challenge a court’s jurisdiction over claims that it breached its contract with a distributor by providing rancid dog and mink feed by sitting on that defense for three years, an Ohio federal judge ruled Thursday.
Catholic charity Little Sisters of the Poor became on Thursday the latest faith-based nonprofit to ask the U.S. Supreme Court to review a process for opting out of the Affordable Care Act’s contraception mandate, arguing that the Tenth Circuit improperly deemed its religious concerns insubstantial.
MetLife Inc. has provided a $505 million loan secured by three Universal Orlando hotels and a fourth property at the resort to NBCUniversal, Loews Hotels & Resorts, Hard Rock International and other investors, according to announcement Thursday from MetLife.
H.J. Heinz Co. and Starr Surplus Lines Insurance Co. battled Wednesday in Pennsylvania federal court over which state law applies to Heinz's $30 million indemnification suit over damages stemming from lead traces in its baby food: Pennsylvania law that allows bad faith claims for punitive damages or New York law that forbids them.
A Humana Inc. investor launched a putative class action in Delaware Chancery Court on Wednesday seeking to block the health insurer’s proposed $37 billion acquisition by rival Aetna Inc., saying the deal undervalues Humana and underestimates the antitrust hurdles to come.
Ethical obligations do not restrict Davis Polk & Wardwell LLP and General Electric Co., the firm’s client in a $658 million tax dispute, from deciding which documents a third party and former GE counsel at Cahill Gordon & Reindel LLP produce in response to a government subpoena, a Connecticut federal judge ruled Wednesday.
A New Jersey doctor was sentenced to 21 months in federal prison Wednesday for accepting bribes in exchange for medical test referrals, the latest in a string of defendants incarcerated for their roles in a long-running scheme that allegedly defrauded Medicare and private insurers of millions of dollars.
A California federal jury on Wednesday awarded nearly $2.3 million to Doublevision Entertainment LLC in its case alleging that Navigators Specialty Insurance Co. dragged its feet in resolving an underlying dispute over the mishandling of an escrow transaction that allegedly cost Doublevision a film deal.
A Kansas federal judge on Wednesday denied two umbrella insurers' request to deduct $44 million from Black & Veatch Corp.'s $63 million damages claim in a dispute over coverage for construction defects in four power plants, but ordered the construction company to produce more documentation to support its claim.
The process for companies being designated as systemically important and then for losing that designation remains too unclear, senators repeatedly told the deputy assistant secretary for the Financial Stability Oversight Council on Wednesday at a subcommittee hearing.
A group of Texas attorneys, former bar directors, judges and others filed a grievance on Tuesday with the State Bar of Texas Disciplinary Counsel against state Attorney General Ken Paxton, over his advice that county clerks do not have to grant marriage licenses to same-sex couples if it violates their religious beliefs.
Balboa Insurance Co. prevailed in an interlocutory appeal before the Second Circuit on Wednesday in a racketeering class action alleging it bribed GMAC Mortgage LLC for the right to provide force-placed hazard coverage, when the appeals court found that the suit fails because the insurer's premium rates were state-approved.
RLI Insurance Co. on Tuesday told the Sixth Circuit that it should uphold a lower court’s dismissal of a suit brought by a medical center over the insurer’s refusal to honor $10 million in liability coverage stemming from a federal investigation into alleged Health Insurance Portability and Accountability Act violations.
Texas Brine Co. LLC asked a Louisiana federal judge on Tuesday to deny Occidental Chemical Corp.’s motion to stay some claims in a putative class action over a massive sinkhole that spurred a statewide emergency in 2012, arguing that the two companies are in arbitration over issues unrelated to those claims.
A Texas appellate court held Tuesday that a lower court properly dismissed a gas station's suit seeking coverage from Mid-Continent Casualty Co. for environmental contamination claims, as a release of toxic substances occurred at the station before the insurer's policies went into effect.
Stroock & Stroock & Lavan LLP continues to bolster its litigation practice, announcing Wednesday that it has added former Squire Patton Boggs partner Lewis F. Murphy, who will bring experience in securities litigation and class actions, including insurance issues, as a partner its Miami office.
Insurers may be left holding the tab for inflated settlements in Pennsylvania after its Supreme Court ruled Tuesday that Babcock & Wilcox Co. was entitled to coverage for $80 million in deals it reached to end radiation exposure claims without the permission of its carrier, attorneys told Law360.
PNC Bank NA was sanctioned in Missouri federal court Wednesday for failing to reveal insurance policies that could provide coverage for a $391 million verdict awarded to state life insurance associations over the bank’s role in a massive prepaid funeral contract scheme.
Aetna Life Insurance Co. has partially settled its lawsuit alleging that two companies that operate a Pennsylvania surgery center ran a patient referral kickback scheme, according to a court order filed in Pennsylvania federal court on Tuesday.
Judge Thomas Wheeler’s strategic invocation of Walter Bagehot in the recent decision splitting the baby in the American International Group trial is not unique. Rather, it is representative of the ways Bagehot’s dictum has been abused to preclude meaningful discussion of when and how the Federal Reserve should provide liquidity support to troubled financial institutions, says Kathryn Judge, associate professor of law at Columbia Law School.
In Lido Beach Towers v. Denis A. Miller Agency Inc. the New York state appeals court affirmed a lower court’s order dismissing all claims of negligence, breach of contract and cross-claims against the individual insurance broker, demonstrating that under certain circumstances an argument based on agency principles may relieve a broker from personal liability for the alleged acts of his principal, says Sara Ward Mazzolla at Bressler... (continued)
The bottom line of the U.S. Supreme Court's ruling in King v. Burwell is that the Affordable Care Act, as a whole, had a consistent intent for federal tax subsidies to be available to reduce consumer spending on health insurance purchased through federally run exchanges, even if ambiguous provisions and inartful drafting can be found within the statute, say attorneys at Locke Lord LLP.
Most courts hold that an insurance company will not be estopped from denying coverage even if the company participates in the defense, provided it gives timely notice to the policyholder through a reservation of rights letter. But there is one very important caveat — the letter must be both timely and sent directly to the policyholder for whom the defense is provided, say attorneys at Reed Smith LLP.
The recent granting of class certification by the District of New Jersey to participating and nonparticipating chiropractors in DeMaria v. Horizon Healthcare Inc. offers a blueprint to class action certification for health care providers seeking to challenge health insurer policies that may systematically deny or reduce benefits paid, says James Ferrelli of Duane Morris LLP.
In the last 10 years, there have been reports of a number of continuing care communities failing and declaring bankruptcy throughout the country. This has led to a greater regulatory focus on the solvency of CCCs and the terms of the contracts they offer. Particularly in Florida, state regulators have increased their scrutiny of CCC refundable-type contracts, says Holland & Knight LLP's Beth Vecchioli, a former staffer in the Flori... (continued)
In 2013, the Second Circuit dismissed a False Claims Act case brought against a company by its former general counsel, finding that the FCA does not preempt a lawyer’s ethical obligations. A Mississippi federal court's recent decision in U.S. v. Northrup Grumman Corp. extends this holding, say Scott Stein and Emily Van Wyck of Sidley Austin LLP.
Prolonged and torrential rains have caused widespread flooding in Texas, Oklahoma and surrounding areas. Contrary to arguments made in a recent Law360 guest article, business owners may not be subject to the same stringent limitations on coverage faced by homeowners, say Michael Levine and Jennifer White of Hunton & Williams LLP.
In State Auto Property & Casualty Insurance Co. v. Hargis, the Sixth Circuit predicted the Kentucky Supreme Court would not allow insurers to sue policyholders for the tort of “reverse bad faith.” But given recent interpretations of contractual duty, it’s arguable that “reverse bad faith” is already here — and what we should be asking is whether it can be of any use, says Robert Helfand of Carlton Fields Jorden Burt.
Connecticut's comprehensive data privacy and security bill tightens data breach response requirements and imposes new obligations on state contractors and the health insurance industry. The bill is also pertinent to businesses operating in the state and those holding the personal information of Connecticut residents, says William Roberts of Shipman & Goodwin LLP.