From Westlaw Journal Health Care Fraud: A Mexican agency responsible for providing medical care to the country’s citizens has alleged in a federal court complaint that a Texas-based medical device company, has paid bribes to Mexican officials to sell more of the company’s products.
Orthofix International has netted $4.9 million in profits on the $8.7 million in sales it made as a result of the illegal bribes, Instituto Mexicano del Seguro Social claims in a complaint filed in the U.S. District Court for the Eastern District of Texas.
From Westlaw Journal Tobacco Industry: Three tobacco companies have agreed to settle a smoker’s personal injury lawsuit, about a week after a Florida federal court allowed her expert to testify about nicotine addiction, as well as on cigarette marketing and advertising.
The tobacco company defendants — R.J. Reynolds Tobacco Co., Philip Morris USA Inc. and Lorillard Tobacco Co. — accepted plaintiff Penny Dover’s offer of judgment Oct. 1. The terms of the settlement have not been disclosed.
From Westlaw Journal Insurance Bad Faith: A California woman claims in a putative class-action lawsuit that Cigna Health & Life Insurance Co. and Cigna Healthcare of California Inc. acted in bad faith by using a “bait and switch” tactic to misrepresent to consumers that their physicians and hospitals are in-network providers.
In a lawsuit filed in the Los Angeles County Superior Court, Sheila Davidson says Cigna subjected her and members of the class “to inadequate networks of physicians and hospitals, causing delays and interruptions in accessing needed health care.”
From Westlaw Journal Environmental: A group of teenagers is asking the U.S. Supreme Court to overturn a District of Columbia Circuit ruling that the “public trust” doctrine does not require federal agencies to immediately implement a science-based climate recovery plan to protect the atmosphere.
The District of Columbia U.S. Circuit Court of Appeals held in June that the public trust doctrine arises under state law and therefore federal courts have no jurisdiction. Alec L. et al. v. McCarthy et al., No. 13-5192, 2014 WL 3013301 (D.C. Cir. June 5, 2014).
From Westlaw Journal Derivatives: A nonprofit foundation can recover only $1 and a computer program despite claiming it lost more than $4 million in a mismanaged high-frequency trading strategy, a Delaware Chancery Court judge has decided.
In an Oct. 10 decision, Vice Chancellor J. Travis Laster said he awarded the foundation just $1 because the allegedly stolen computer software was not intellectual property and produced no profits to disgorge.
From Westlaw Journal Government Contract: Boeing Co. will pay the federal government $23 million to settle allegations that it overbilled the Air Force while working under contract on maintenance for the C-17 Globemaster aircraft.
Chicago-based Boeing agreed to resolve the lawsuit without admitting any wrongdoing, the Justice Department said in an Oct. 10 statement.
From Westlaw Journal Employment: Attorneys for an Amazon.com warehouse contractor and the warehouse workers presented arguments Oct. 8 before the U.S. Supreme Court over whether companies must pay workers for the time they spend going through security checks at the end of their shifts.
While counsel for Integrity Staffing Solutions Inc. likened the security check process to clocking out, which traditionally is not compensable, the workers’ attorney said the case involves employees working off-the-clock.
By Joel Wertman, Esq.. and Allison Livezey, Esq., Marshall Dennehey Warner Coleman & Goggin
From Westlaw Journal Securities Litigation & Regulation: Joel Wertman and Allison Livezey of Marshall Dennehey Warner Coleman & Goggin discuss the intricacies of the expungement process for complaints against broker-dealers and registered representatives.
Working with the public in any profession comes with its risks. Regardless of the level of service, unwanted litigation and customer complaints are, unfortunately, a cost of doing business for many professionals.
By Samuel E. Cohen, Esq., Marshall Dennehey Warner Coleman & Goggin
From Westlaw Journal Securities Litigation & Regulation: Samuel E. Cohen of Marshall Dennehey Warner Coleman & Goggin discusses the recent focus of the Securities and Exchange Commission and other regulatory authorities on wrap accounts and what it means for broker-dealers and investment advisers who promote wrap fee programs.
Assets and fee-based advisory accounts at broker-dealers are growing exponentially, drawing increased scrutiny from the Securities and Exchange Commission, which is concerned that “wrap accounts” could be misused by some financial advisers. In a wrap account, clients pay an annual or quarterly fee for wrap products that manage a portfolio of investments, rather than paying individual commissions for trades.