9th Circ. Skeptical Insurer Must Cover HotChalk FCA Suit

Law360, San Francisco (February 13, 2018, 4:36 PM EST) -- A Ninth Circuit panel on Tuesday questioned HotChalk Inc.'s argument that Scottsdale Insurance should cover costs from a False Claims Act suit over the education technology company’s employee compensation policy, with the judges saying the litigation likely fell under the insurer’s broad exclusion for suits “arising out of” client services.

HotChalk attorney Peter Roldan of Emergent LLP told the panel that the underlying whistleblower suit — which alleged HotChalk unlawfully offered incentives to employees for student recruitment — concerned the company’s “inward-facing management decisions.” He argued...
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Case Information

Case Title

HotChalk, Inc. v. Scottsdale Insurance Company


Case Number

16-17287

Court

Appellate - 9th Circuit

Nature of Suit

4110 Insurance

Date Filed

December 19, 2016

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