• March 24, 2015

    Class Cert. Denied In Cephalon Painkiller Marketing Suit

    A Pennsylvania federal judge on Monday refused to certify a proposed class action accusing drugmaker Cephalon Inc. of unjustly enriching itself by marketing a painkiller for off-label uses, ruling the plaintiffs failed to show that a class action was the best way to resolve their claims.

  • March 24, 2015

    Insurer Sues US Bank Over Losses To $180M Trust Accounts

    A South Carolina insurer has sued U.S. Bank NA in federal court, accusing the bank of negligently allowing two reinsurance companies to replace $180 million in assets held in trust accounts with worthless and highly illiquid assets.

  • March 24, 2015

    8th Circ. Insurable Interest Ruling Limits Insurer Defenses

    The Eighth Circuit's recent ruling that the insurable interest requirement for a life insurance policy is met under Minnesota law when a person buys insurance on his own life curtails carriers' ability to challenge the validity of those policies, even those that are allegedly unlawful stranger-owned life insurance agreements, according to experts.

  • March 24, 2015

    Calif. Lawmaker Proposes Paid Family Leave Extension

    A California state assemblyman's bill that would extend workers' paid family leave insurance payments from six weeks to 10 and increase the rate of wage replacement on an income-based scale will go before the state Assembly's Committee on Insurance early next month, his office said Tuesday.

  • March 24, 2015

    NJ Condos Say FEMA Owes Coverage For Sandy Damage

    A New Jersey condominium association Monday accused the U.S. Federal Emergency Management Agency in New Jersey federal court of breaching its contract when it declined to pay flood insurance benefits in connection with damage purportedly caused by Superstorm Sandy.

  • March 24, 2015

    Lexington Fights Reconsideration Bid In Cell-Crete Atty Suit

    Lexington Insurance Co. said Monday that a California federal judge should let stand his earlier ruling finding that the insurer hadn't reneged on an oral agreement with Cell-Crete Corp. to retain its personal counsel to defend all covered claims, saying the concrete installer's request for additional discovery is unnecessary.

  • March 24, 2015

    Tribal Housing Co. Looks To Nix Insurer's Arbitration Bid

    A Native American housing company asked a New Mexico federal judge on Monday to toss a suit brought by insurer Amerind Risk Management Corp. seeking to force arbitration in a flood insurance dispute, arguing Amerind was seeking to bail out of tribal court.

  • March 24, 2015

    Lender Smacks AIG With $4M Suit Over Seized Business Plane

    An Indiana bank hit a unit of AIG Inc. with a lawsuit in federal court Monday, arguing the insurer should cough up $4.3 million after an aircraft the bank provided a loan for was seized by Brazilian tax authorities.

  • March 23, 2015

    Mid-Continent Can't Get Texas High Court's Input In IP Row

    The Fifth Circuit on Monday rejected Mid-Continent Casualty Co.'s bid to certify legal questions to the Texas Supreme Court and vacate a ruling that the insurer must pay "advertising injury" damages in a suit brought by an architectural firm against a bankrupt homebuilder that allegedly used its designs without permission.

  • March 23, 2015

    Ill. Court Finds Tech Co. Not Covered For Microsoft IP Suit

    An Illinois appellate court on Friday affirmed that Erie Insurance Exchange had no duty to defend technology solutions company Compeve Corp. in a suit claiming it sold computers loaded with unauthorized copies of Microsoft Corp.'s software, saying the underlying complaint didn't allege a covered advertising injury.

  • March 23, 2015

    Kelley Kronenberg Adds Miami Office, 6 New Attorneys

    Florida-based Kelley Kronenberg is the latest law firm making waves in Miami, announcing the opening of a new office in the Brickell financial district and the addition of six attorneys, including litigator Jorge L. Cruz-Bustillo, who will serve as the location's managing partner.

  • March 23, 2015

    Premera Slams Alaska Native Health Group's Billing Testimony

    Premera Blue Cross asked an Alaska federal court Monday to strike a motion for summary judgment by an Alaska intertribal health care group in a suit alleging Premera paid substantially less than the group's billed charges, arguing that the group's motion relied on expert testimony that violated federal rules.

  • March 23, 2015

    Rothstein Feeder Fund Settles Claims It Lied For Insurance

    The trustee overseeing the bankruptcy of a hedge fund that fed into Scott Rothstein's $1.2 billion Ponzi scheme on Friday settled claims from six of eight insurers who said $70 million worth of policies issued to the fund were obtained through deception.

  • March 23, 2015

    Chartis May Be On Hook For Part Of $26M Merrick Loss

    A New York federal judge on Friday ruled that Chartis Specialty Insurance Co. may be liable for part of a $26 million loss sustained by Merrick Bank Corp. when a charter airline company went bankrupt in 2012, but said a trial was necessary to ascertain exactly how much, if any.

  • March 23, 2015

    Old Second Covered In Vandalism Row Under Mortgage Clause

    Old Second National Bank is entitled to coverage for vandalism and theft at a former slaughterhouse under the mortgage clause of a policy with a Liberty Mutual Group subsidiary, an Illinois appeals court affirmed on Friday, finding that the bank didn't breach any of the policy's terms. 

  • March 23, 2015

    Kennedy's Gridlock Comments Spook ACA Backers

    U.S. Supreme Court Justice Anthony M. Kennedy on Monday rejected the idea that the judicial branch should consider congressional paralysis when interpreting federal laws, sparking speculation that the court may be preparing to gut the Affordable Care Act in a pending case.

  • March 23, 2015

    Oracle Says Oregon Signed Away Immunity To Copyright Suit

    The state of Oregon cannot use the 11th Amendment to shield itself from Oracle America Inc.’s copyright infringement and contract suit over a botched health exchange website, because the state agreed to resolve potential disputes in district court, the software giant argued Friday.

  • March 23, 2015

    Liberty Reaches Deals To Exit Sprawling Meningitis Row

    Liberty Industries Inc., which provided containment facilities for New England Compounding Pharmacy Inc. prior to a deadly October 2012 meningitis outbreak, has agreed to settle with its insurer, NECC’s bankruptcy trustee and victims of the outbreak, according to documents filed in Connecticut federal court Friday.

  • March 23, 2015

    Fireman's Fund To Pay $44M To Settle FCA Charges

    Fireman’s Fund Insurance Co. on Monday agreed to pay $44 million to settle civil allegations under the False Claims Act that it falsified documents and knowingly issued insurance policies that were not eligible for the U.S. Department of Agriculture’s federal crop insurance program, the U.S. Department of Justice said.

  • March 23, 2015

    Ex-Smith Giacometti Atty Settles Malpractice Coverage Suit

    A Flaster/Greenberg PC attorney has settled a Pennsylvania federal suit alleging his former malpractice carrier, Minnesota Lawyers Mutual Insurance Co., refused to cover a claim brought by a former client when he was a name partner at Smith Giacometti LLC, according to a Monday filing.

Expert Analysis

  • A Primer On TCPA Insurance Coverage Issues

    Steven P. Wright

    Although recent decisions suggest that commercial general liability policies provide coverage for Telephone Consumer Protection Act claims, insurers have successfully pushed for language excluding coverage and have also shown a willingness to dispute coverage under errors and omissions and directors and officers policies, especially by relying on “invasions of privacy” exclusions in D&O policies, say attorneys at K&L Gates LLP.

  • Execs Name Top Industry Risks In 2015

    Patrick Scott

    To profile the risks many organizations face as they advance into 2015, we conducted a global survey of more than 275 board members and C-suite executives across a broad cross-section of industries in the fourth quarter of 2014. The results paint an interesting picture of the global business environment, specifically highlighting 10 areas of concern, say Jim DeLoach and Patrick Scott of Protiviti Inc.

  • Anthem Breach May Require Plan Sponsor Action

    Greg Ash

    Even if the well-publicized cyberattack on Anthem Inc. does not amount to a privacy violation that triggers the Health Insurance Portability and Accountability Act breach notification requirement, it is certainly an event that should garner the attention of plan fiduciaries under the Employee Retirement Income Security Act, says Greg Ash of Spencer Fane Britt & Browne LLP.

  • Should Retailers Rely On CGL Coverage For Data Breaches?

    Scott N. Godes

    The question of whether there is commercial general liability coverage for consumer class actions against retailers after a data breach is significant, particularly when payment cards are involved. Such lawsuits may ultimately trigger coverage under both property damage and personal and advertising injury sections of CGL policies, says Scott Godes of Barnes & Thornburg LLP.

  • OPINION: Beyond The 'Grow Or Die' Law Firm Model

    Michael Moradzadeh

    The legal world was recently stunned by a huge gamble from a well-known law firm — Dentons has decided to merge with Dacheng, the largest firm in China, creating a more than 6,500-lawyer firm. This mega-firm follows in the wake of other firms taking a policy of “grow or die.” Yet at the same time as these firms hold to their policy of expansion, the traditional law firm model is withering on the vine, says Michael Moradzadeh of Rimon PC.

  • Can A House Be An Advertisement? The 5th Circ. Thinks So

    Kristin C. Cummings

    The Fifth Circuit in Mid-Continent Casualty Company v. Kipp Flores Architects LLC has blurred the lines between copyright or trademark infringement and advertising injuries by holding that a house can be an “advertisement” capable of triggering coverage under a general liability policy’s advertising injury provision, says Kristin Cummings of Zelle Hofmann Voelbel & Mason LLP.

  • 3rd Circ. Courts Controversy Over Class Numerosity

    Ronald F. Wick

    The Third Circuit in Judon v. Travelers Property Casualty Company of America applied one standard of proof to the amount in controversy but another to the numerosity of the class in question. Why the difference? The answer can be traced to two New Deal-era U.S. Supreme Court cases, says Ronald Wick of Cozen O'Connor PC.

  • Redefining The M&A Playbook In Light Of Cigna

    Steven H. Goldberg

    Beyond the transaction documents, the traditional stockholder agreement now merits extra attention. By including a more forceful drag-along provision in the stockholder agreement, a target company may avoid the release and indemnification issues raised in Cigna Health & Life Insurance Co. v. Audax Health Solutions Inc., say attorneys with BakerHostetler.

  • Is Laminate Flooring The New Drywall For Insurers?

    Kristin S. Heres

    There are significant similarities between the Chinese drywall issues of yesteryear and the emerging concerns regarding Chinese laminate flooring — both drywall and flooring are installed indoors and involve the “off-gassing” of chemicals, says Kristin Heres of Zelle Hofmann Voelbel & Mason LLP.

  • Law Firm Tensions Mount In Africa — What Does It Mean?

    Steve Blundell

    Tensions are perhaps inevitable in a fast-growing market such as Africa where international law firms are gearing up for a greater level of market entry, and where the independent firms remain highly reliant on referrals from these same firms. But the questions facing both types of firms go to the heart of short-term expedient versus long-term strategy, says Steve Blundell of Redstone Consultants.