Third Circuit judges Wednesday explored divergent views of the False Claims Act's constitutionality and a record fraud verdict against Johnson & Johnson, expressing little eagerness to gut the FCA's whistleblower mechanism, and voicing uncertainty about evidence and jury instructions underpinning the drug promotion punishment.
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Key Details As 3rd Circ. Ponders FCA's Fate, $1.6B J&J Fine

By Jeff Overley

Third Circuit judges Wednesday explored divergent views of the False Claims Act's constitutionality and a record fraud verdict against Johnson & Johnson, expressing little eagerness to gut the FCA's whistleblower mechanism, and voicing uncertainty about evidence and jury instructions underpinning the drug promotion punishment.

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Rapper Says There's 'No World' Where He'd Pay Fired Manager

By Lauraann Wood

Chance the Rapper never discussed paying his former manager commissions for three years after their relationship ended, and "there's no world" in which he would agree to such a payment arrangement given his position and reputation in the music industry, the rapper told Illinois jurors Wednesday.

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Zuckerberg, Snap CEO Likely Must Testify In School MDL Trial

By Dorothy Atkins

A California federal judge indicated Wednesday that Meta and Snap's CEOs will likely need to testify in an upcoming school district bellwether trial in the social media addiction multidistrict litigation, and declined Meta's bid to block arbitration demands, saying, "Meta's got plenty of money, go file a motion with the arbitration panel."

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NY Court Affirms Gas Hacker's Conviction In Fatal NYC Blast

By Elizabeth Daley

An unlicensed plumber sentenced to up to 12 years in prison for causing a 2015 gas explosion that killed two people, injured 13 and destroyed several buildings on New York City's Lower East Side cannot escape his sentence, a New York state appeals court has ruled unanimously.

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INTELLECTUAL PROPERTY

Axion Cleared Of False Advertising Before Agilent Patent Trial

By Elliot Weld

Ahead of a patent infringement trial set to begin next week, a Delaware federal judge has addressed false advertising claims against biotechnology firm Axion and ruled there was no genuine dispute that a set of Axion advertisements deceived customers.

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Apple Took Masimo IP But No Remedy Warranted, Judge Says

By Lauren Berg

A California federal judge determined Apple misappropriated two out of five of Masimo Corp.'s asserted trade secrets related to pulse oximetry technology for its smartwatches, but found Masimo's requests for an injunction and attorney fees unwarranted, according to a December bench trial ruling that was unsealed this week.

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WHITE COLLAR

Pa. Jury Convicts Military Contractor Of $1M Fraud Scheme

By Craig Clough

A Pennsylvania federal jury on Tuesday found a military contractor guilty of 13 counts of defrauding the Defense Logistics Agency of more than $1 million and failing to file corporate tax returns.

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CRIMINAL PRACTICE

Split 2nd Circ.: NY Officials Belong In Inmate Mental Health Suit

By Parker Quinlan

A split Second Circuit has revived a man's lawsuit alleging state prison officials unconstitutionally placed him in solitary confinement, worsening his mental health condition and ultimately causing him to stab his mother to death after his release.

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With Warrants, Good Faith Worth More Than Legality: DC Circ.

By Nadia Dreid

It doesn't matter if the warrant that a D.C. magistrate judge issued to pinpoint the location of a man who was later convicted on drug trafficking and firearms charges was legal because law enforcement thought that it was, the D.C. Circuit has ruled.

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Ex-Cop, Examiner Fight Brothers' Wrongful Conviction Suit

By Melanie Dorsey

A Michigan federal judge heard arguments Wednesday regarding whether two brothers' lawsuit over their wrongful conviction for murder should head to a jury, with the plaintiffs and a former law enforcement officer and an ex-polygraph examiner debating if the decision to prosecute the brothers actually hinged on a witness's polygraph test that was later found to be erroneous.

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5th Circ. Upholds Gun Charge, Approves Plate Reader Use

By Elizabeth Daley

A wanted man who was charged with illegal possession of a machine gun after Mississippi police tracked his vehicle with the help of a license plate reader cannot argue that locating him using the technology violated his privacy, a panel of the Fifth Circuit has ruled, denying his constitutional challenge.

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REAL ESTATE

Ga. Panel Preserves HOA Fraud Verdict, Scraps $21M Award

By Chart Riggall

The Georgia Court of Appeals backed fraud and civil racketeering verdicts won by nearly a dozen homeowners against a developer but scrapped $21 million in punitive damages the residents were awarded as excessive "even given the defendants' wealth and repeated instances of bad behavior."

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INSURANCE

Toy Co. Not Covered In Unpaid Judgment Fight, 8th Circ. Says

By Hope Patti

An insurer needn't defend a toy company accused by a competitor of using legal proceedings to evade payment of an $8.5 million default judgment for false advertising, the Eighth Circuit has ruled, holding that the policy's malicious prosecution coverage doesn't extend to abuse of process claims.

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EXPERT ANALYSIS

Series

Law School's Missed Lessons: The Human Element

Law school teaches you to quickly apply intellect and logic when handling a legal issue, but every fact pattern also involves a person, making the ability to balance expertise with empathy critical to the growth of relationships with clients, colleagues and adversaries, says Rachel Adcox at Adcox Strategies.

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LEGAL INDUSTRY

Analysis

Texas Biz Court's Likely Role In Patent Fights Becoming Clear

By Dani Kass

The Texas Business Court has released its first opinion exploring when intellectual property can be used to create jurisdiction, and attorneys say the decision involving state trade secret law offers insight into when patent matters can be pursued there.

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Conn. Justices Won't Hear Ex-Alex Jones Atty's Ethics Case

By Andrea Keckley

The Connecticut Supreme Court will not hear a challenge to the two-week suspension of Alex Jones' former lawyer, leaving intact an intermediate Appellate Court decision affirming the pared-down punishment surrounding his law firm's handling of Sandy Hook Elementary School massacre victims' personal information.

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Calif. Bills Would Reform Litigation Funding, Client Recruiting

By Emily Sawicki

Two new bills introduced to the California Assembly this week seek to impose reforms on the state's legal industry, including adding mandatory disbarment for attorneys convicted of felony "capping" — or illegally paying for client recruitment — and blocking corporate litigation funders from influencing cases.

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Senator Unveils Draft AI Bill Intended To Wipe Out State Regs

By Hailey Konnath

Sen. Marsha Blackburn, R-Tenn., on Wednesday released a draft of proposed legislation that would override a "patchwork" of state artificial intelligence regulations, touting the proposal as protecting "children, creators, conservatives and communities" and slamming the state regulations as hindering "AI innovation."

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Biotech Investor Blames Pierce Atwood For Messy Asset Sale

By Julie Manganis

A Ukrainian billionaire who was recently ordered to pay other investors in a failed genetic testing company more than $1.8 million in damages is blaming the Pierce Atwood LLP lawyers who advised him on what a court later found to be a "fundamentally unfair" forced asset sale.

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Powell Says He Won't Make Fed Exit While Facing DOJ Probe

By Jon Hill

Federal Reserve Chair Jerome Powell said Wednesday that he will stay on as a board member of the central bank if he remains under U.S. Department of Justice investigation when his term as Fed chairman runs out this spring.

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LAW FIRMS IN TODAY'S NEWS

Ashby & Geddes

Axinn Veltrop

Berger Montague

Carstens Allen

Covington & Burling

David J. Shrager Attorney at Law

Davis Polk

Dechert LLP

Downtown LA Law Group

Fredrikson & Byron

Gibbs Mura

Gibson Dunn

HJV Car Accident Personal Injury Lawyers

Haynes Boone

Jackson Walker LLP

Jenner & Block

Jones Day

Katten Muchin

Kellogg Hansen

King & Spalding

Knobbe Martens

Krizner Group

Lavin Rindner

Levin Sedran

Lieff Cabraser

Meagher & Geer

Morgan Lewis

Morris Nichols

Morrison & Foerster

Motley Rice

Munger Tolles

Pierce Atwood

Potter DeAgostino

Pratt & Flack

Reed Smith

Reese Marketos

Robbins Alloy

Sweeney Scharkey

Walkup Melodia

Weisbrod Matteis

Williams & Connolly

WilmerHale

COMPANIES IN TODAY'S NEWS

Agilent Technologies Inc.

Alamo Title Co.

American Bar Association

Apple Inc.

Aviva SA

Burke Inc.

Cercacor

Consolidated Edison Inc.

Consumer Attorneys of California

Executive Health Resources Inc.

Exxon Mobil Corp.

Google LLC

JUUL Labs Inc.

Johnson & Johnson

Los Angeles Times

Masimo Corp.

Meta Platforms Inc.

OpenAI OpCo LLC

Pathway Genomics Corp.

State Bar of California

The Legal Aid Society

TikTok Inc.

U.S. Chamber of Commerce

Universal Health Services Inc.

YouTube Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

California Department of Justice

Defense Logistics Agency

Delaware Court of Chancery

Federal Reserve System

Federal Trade Commission

Georgia Court of Appeals

Manhattan District Attorney's Office

National Institute of Standards and Technology

New York Attorney General's Office

New York State Department of Corrections and Community Supervision

New York State Office of Mental Health

New York Supreme Court, New York County

Patent Trial and Appeal Board

Texas Legislature

Texas Supreme Court

U.S. Attorney's Office for the Southern District of Mississippi

U.S. Attorney's Office for the Western District of Pennsylvania

U.S. Court of Appeals for the Eighth Circuit

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Justice

U.S. District Court for the Central District of California

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Massachusetts

U.S. District Court for the Eastern District of Michigan

U.S. District Court for the Northern District of California

U.S. District Court for the Southern District of Mississippi

U.S. District Court for the Southern District of New York

U.S. District Court for the Western District of Pennsylvania

U.S. Supreme Court