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Health
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October 01, 2024
Ex-CBD Exec Must Face SEC Fraud Suit Over $13M Deal
The U.S. Securities and Exchange Commission sufficiently backed its claims that a former cannabidiol products executive misled investors, including by making false statements in press releases, a Connecticut federal judge has ruled.
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October 01, 2024
DOJ Says It Is Constitutional To Disarm Pot Patients
The U.S. Department of Justice told a Pennsylvania federal judge Tuesday that a federal policy barring medical marijuana patients from lawfully possessing firearms is constitutional, and it urged the court to dismiss a legal challenge to the statute.
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October 01, 2024
Wash. Panel Backs Workers' $3.3M Win In Meal Break Suit
A Washington appeals court refused to upend a class of workers' $3.3 million win in their lawsuit accusing a Seattle-based hospital of failing to provide them with 30-minute meal periods, saying employees in Washington state are entitled to additional pay if they're forced to work through their breaks.
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October 01, 2024
Willis Towers Watson Inks $632M Sale Of Tranzact To PE Firms
Insurance company Willis Towers Watson Plc, advised by Weil Gotshal & Manges LLP, on Tuesday announced that it is divesting its direct-to-consumer insurance distribution business Tranzact and selling it to Kirkland & Ellis LLP-advised private equity firm GTCR and Willkie Farr & Gallagher LLP-led technology services investment platform Recognize for $632.4 million.
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October 01, 2024
NC Hospital Hit With More Class Claims Over Data Breach
Columbus Regional Healthcare System's legal woes have worsened with more privacy breach claims filed against it by patients whose personal information was exposed by a May 2023 cyberattack on the healthcare provider's network.
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October 01, 2024
Steward Can't Be Forced To Reassign Contract In Ch. 11
While a government contractor was within its rights to end a subcontracting agreement with embattled hospital group Steward Health, the Bankruptcy Code's provisions for assignment of contracts mean the debtor can't be compelled to reassign the agreement while in Chapter 11, a Texas bankruptcy judge said Tuesday.
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October 01, 2024
Doctors Were 'Bamboozled' By $160M Health Fraud, Jury Told
A Houston man accused of defrauding the government out of $160 million by submitting false claims for diabetes medication is only guilty of creating a competitive business model, his attorney said Tuesday, telling a Texas federal jury it was "ridiculous" to say doctors across the country were "bamboozled" by an alleged scheme.
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October 01, 2024
Mass. Hospital To Pay Up To $6.5M In Sober Home Scheme
A Massachusetts behavioral health hospital will pay up to $6.5 million to resolve claims it illegally steered Medicare and Medicaid patients to its outpatient substance abuse programs with a promise of free sober home housing, according to a settlement announced Tuesday.
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October 01, 2024
DOJ Joins Employee Antitrust Suit Against UPMC
The U.S. Department of Justice is backing a proposed class action from University of Pittsburgh Medical Center workers who say the hospital used noncompetes and blacklists to suppress wages, telling a Pennsylvania federal judge that UPMC's motion to dismiss the suit sets an "insurmountable" pre-discovery bar for plaintiffs.
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October 01, 2024
Arkansas AG Says YouTube Addicts And Harms Youth Users
The Arkansas attorney general has sued YouTube LLC, Google LLC and their parent company in state court, alleging that the YouTube platform is deliberately designed to addict youth users and shows them harmful content, leading to a mental health crisis that has cost the state hundreds of millions of dollars.
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October 01, 2024
Latham Helps TJC Clinch 2nd Continuation Fund At $2.1B
Latham & Watkins LLP-advised middle-market private equity firm TJC LP on Tuesday announced that it clinched its second continuation fund with $2.1 billion of investor commitments led by Carlyle subsidiary AlpInvest.
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October 01, 2024
'Unsworn' Actors Sink Qui Tam Provision, Fla. Judge Rules
A Florida federal judge on Monday ruled that the provision of the False Claims Act allowing whistleblowers to bring suits on behalf of the federal government is unconstitutional, dismissing a closely watched Medicare Advantage fraud case and potentially upending a key federal enforcement tool.
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September 30, 2024
Calif. Sues Eureka Hospital For Denying Emergency Abortion
California on Monday sued Providence of St. Joseph Hospital in Eureka for denying an emergency abortion to a woman it diagnosed with a serious pregnancy complication and sending her off to a small community hospital with a bucket and towels.
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September 30, 2024
Pa. Hospital Hit With $24M Verdict For Spinal Surgery Patient
A Pennsylvania hospital has been hit with a nearly $24 million verdict in favor of a spinal stenosis patient who alleged he was partially paralyzed when a surgeon mistakenly drove a screw into his spinal cord, marking what the plaintiff's counsel flagged as the largest medical malpractice award on record in York County.
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September 30, 2024
Ga.'s 'Heartbeat' Abortion Ban Struck Down Once Again
Georgia residents had their legal access to abortion temporarily restored Monday as the state's so-called heartbeat abortion ban was again struck down by a judge whose previous move to block the 2019 law had been reversed by the state's highest court.
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September 30, 2024
Wheeling & Appealing: The Latest Must-Know Appellate Action
The year's spookiest month is looking scary-good for appellate aficionados, as famed oral advocates joust in October over net neutrality and Uber's extraordinary bid to unravel multidistrict litigation — just two of the high-profile arguments previewed in this edition of Wheeling & Appealing. October also begins with former President Jimmy Carter turning 100, and we'll test your knowledge of his profound impact on the judiciary.
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September 30, 2024
Pa. Bankruptcy Court OKs $53M Sale Of Nursing Homes
A federal bankruptcy judge approved the proposed sale of nine western Pennsylvania nursing homes to affiliates of Kadima Healthcare Group for $53 million Monday, as part of Chapter 11 proceedings for more than a dozen facilities operating under the umbrella of Comprehensive Healthcare Management Systems.
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September 30, 2024
J&J Backs Off 340B Rebate Plan Following Feds' Objections
Johnson & Johnson abandoned its plan Monday to offer rebates rather than upfront discounts for two medications under the 340B drug pricing law, contending it had no choice after a federal agency threatened to impose excessive penalties.
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September 30, 2024
Webuild Escapes Suit Over $140M Award In Delaware
Italian construction giant Webuild has skirted a Chilean construction company's bid to enforce a $140 million arbitral award arising from a soured hospital construction project in the Chilean capital of Santiago, after a Delaware federal judge nixed the case on jurisdictional grounds.
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September 30, 2024
Claims Trimmed In Neb. Medical Pot Legalization Fight
A Nebraska state judge has dismissed two out of four claims in a lawsuit aiming to block voters from deciding on ballot measures that could legalize medical cannabis and establish a system regulating its manufacture and sale.
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September 30, 2024
Judge Wants More Info On Yale's Ties To Fertility Doctor
A Connecticut judge presiding over claims a fertility doctor used his own sperm to impregnate women in the 1980s asked two plaintiffs on Monday to back up their argument that Yale University and its affiliated hospital could be held liable, while the Ivy League entities sought to avert an evidence probe.
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September 30, 2024
Physician Assistant Seeks Lenient Term In $10M Fraud Case
A North Carolina physician assistant is looking to spend just one year behind bars after a federal jury in Charlotte found him guilty of rubber-stamping bogus prescriptions for genetic testing, marking a far cry from prosecutors' requested nine-year prison sentence.
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September 30, 2024
Steward Health CEO Sues Senate Panel After Contempt Vote
The outgoing CEO of embattled Steward Health Care on Monday sued members of Congress who voted earlier this month to hold him in contempt for defying their subpoena to testify at a hearing into the downfall of the bankrupt hospital chain he heads.
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September 27, 2024
Texas AG Wants Austin's Abortion Travel Fund Shut Down
Texas Attorney General Ken Paxton on Friday accused the city of Austin of illegally using taxpayer funds to cover travel costs for people traveling out of the Lone Star State to get abortions, claiming that the city is misappropriating the funds in violation of the state constitution.
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September 27, 2024
Kappos' Bayh-Dole Warning To Clients Draws Debate
An advocate for lowering drug prices squared off Friday against a former U.S. Patent and Trademark Office director about the potential risk of accepting government funds to develop drugs, as part of a discussion at New York University School of Law.
Expert Analysis
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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How Cos. With Chinese Suppliers Should Prep For Biotech Bill
A proposed bill to prohibit government-affiliated life sciences companies from contracting with Chinese biotech companies of concern may necessitate switching to other sources for research and supplies, meaning they should begin evaluating supply chains now due to the long lead times of drug development, say John O'Loughlin and Christina Carone at Weil Gotshal.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Can Chapter 15 Bankruptcy Help Cannabis Businesses?
Attorneys at Fox Rothschild consider whether Chapter 15 may be used as a tool to liquidate U.S. assets of cannabis companies in foreign bankruptcy proceedings, and look at the statutory provisions that may have a bearing on the successful liquidation of assets under the Bankruptcy Code.
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FTC's Drug Middlemen Probe Highlights Ongoing Scrutiny
The Federal Trade Commission's interim staff report on its inquiry into pharmacy benefit managers suggests that the industry will remain under an enforcement microscope for the foreseeable future due to concerns about how PBMs affect drug costs and accessibility, say attorneys at Arnold & Porter.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Gilead Drug Ruling Creates Corporate Governance Dilemma
If upheld, a California state appellate court's decision — finding that Gilead is liable for delaying commercialization of a safer HIV drug to maximize profits on another drug — threatens to undermine long-standing rules of corporate law and exposes companies to liability for decisions based on sound business judgment, says Shireen Barday at Pallas.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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What Cos. Should Note In DOJ's New Whistleblower Pilot
After the U.S. Department of Justice unveiled a new whistleblower pilot program last week — continuing its efforts to incentivize individual reporting of misconduct — companies should review the eligibility criteria, update their compliance programs and consider the risks and benefits of making their own self-disclosures, say attorneys at Skadden.
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Motion To Transfer Venue Considerations For FCA Cases
Several recent decisions highlight the importance for practitioners of analyzing as early as possible whether a False Claims Act case warrants a change of venue, and understanding how courts weigh certain factors for defendants versus whistleblowers, say Ellen London at London & Stout, and Li Yu and Corey Lipton at DiCello Levitt.
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A Primer On EU's Updated Human Substance Regulations
The European Union's updated standards regarding quality and safety of substances of human origin meant for human application carry significant implications for companies that work with cells and tissues, and U.S. companies active in the EU market should pay particular attention to the import and export rules, say Geneviève Michaux and Georgios Symeonidis at King & Spalding.
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Series
After Chevron: New Lines Of Attack For FCA Defense Bar
Loper Bright has given defense counsel new avenues to overcome the False Claims Act elements of falsity and scienter, as any FCA claim based upon ambiguous statutory terms can no longer stand solely on agency regulations to establish the statute's meaning, which is itself necessary to satisfy the FCA's basic requirements, says Elisha Kobre at Bradley Arant.