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May 2014 Archives

New Pharmaceutical Litigation - Class Action Against INSYS

New claim filed against pharmaceutical company INSYS, maker of Subsy alleges company released false or misleading statements including improper marketing statements surrounding Subsy.

Class Action Lawsuit Against the Pharmaceutical Company INSYS Therapeutics, Inc.

May 27, 2014 via Wall Street Journal Online (online.wsj.com).A class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of all purchasers of the securities of INSYS Therapeutics, Inc. ("INSYS" or the "Company") (NASDAQ:INSY) between May 2, 2013 and May 8, 2014, inclusive (the "Class Period"). INSYS is a specialty pharmaceutical company that develops and commercializes innovative supportive care products. The Company has two marketed products -- a generic equivalent to Marinol for chemotherapy-induced nausea, vomiting and anorexia in patients with AIDS, and Subsys, a proprietary sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant patients. The Complaint alleges that throughout the Class Period defendants issued false and/or misleading statements and/or failed to disclose: (1) the Company's illegal and/or improper marketing of Subsys; (2) that improper marketing of Subsys could lead to regulatory scrutiny; (3) that such regulatory scrutiny could expose the Company to potential fines and other disciplinary actions; and (4) as a result of the foregoing, that the Company's financial statements were materially false and misleading at all relevant times. More info and the original press release here.

Traumatic Brain Injury The Result Of Stadium Owner's Lax Security?

Fan who was beaten at Dodgers Stadium is suing the team owner and stadium owner (one person owned both)  for damages. The question of responsibility will echo throughout major league sports.

Jury Selection set to begin in Bryan Stow lawsuit against Frank McCourt

Jury selection is set to begin today in a civil lawsuit filed by Bryan Stow against former Dodgers owner Frank McCourt. KABC's Jim Roope reports Stow received a traumatic brain injury after being beaten in the stadium parking lot on open day 20-11. Were the Dodgers, under the management of McCourt, negligent in not providing enough security to prevent the fight that left Stow not only with the traumatic brain injury, but permanently disabled? The lawsuit claims that Dodgers Stadium has had more criminal activity than any other stadium. It also alleges that the McCourt's lavish lifestyle resulted in the Frank McCourt dramatically reducing security at the stadium. The suit claims it will take 50-million dollars to care for Stow over his lifetime. The suit is seeking at least that much.   Original story appeared on kabc.com, May 28, 2014.

10,000 White Collar Crimes Investigated Including Legal Malpractice

The FBI is focusing more strongly on white collar crime, including fraud and legal malpractice. The agency hired 2,000 people this year and reportedly has more than 1,300 agents working on more than 10,000 white collar crime cases.

FBI increases criminal fraud investigations by 65%, director reports

10,000 White Collar Crimes Investigated Including Legal Malpractice

The FBI is focusing more strongly on white collar crime, including fraud and legal malpractice. The agency hired 2,000 people this year and reportedly has more than 1,300 agents working on more than 10,000 white collar crime cases.

FBI increases criminal fraud investigations by 65%, director reports


May 22 2014. By W. Kelly Johnson via lexology.com.

Youth Sport Serious Injury Lawsuits, A Serious Game

Whether setting organizational policy, researching proper insurance, or evaluating risks, youth sports represent a serious playing field.

Legal Exposures Alter the Playing Field for Youth Sports

Why lawsuits, if not the actual risks, in youth sports are growing--and why underwriters should be mindful.

In Crowdfunding What Rights do the Backers Have?

Many legal questions come up around the wording of various Crowdfunding opportunities. What happens if the project fails to deliver, what happens if it is wildly successful and sold for 100s of millions? Do the backers have rights similar to investors?

Wake me up before you Indiegogo: legal issues with crowdfunding

May 16, 2014. By Chrissie Scelsi via lexology.com.Have you ever backed a project on a crowdfunding site like Kickstarter or Indiegogo? How did that backing experience go? Were you impressed with the final product, or did the creators hit some bumps along the way to getting the final product made? It seems that for every wildly successful project like the campaign for the "Veronica Mars" movie, which raised almost $6 million dollars on Kickstarter, there is another campaign that draws backlash or has issues, like Zach Braff's similar effort to raise funds for his film, which drew ire when it was revealed that he also had sold some of the distribution rights to the film in exchange for further financing. As crowdfunding has grown in popularity as a way to raise funds for projects and products, a variety of issues have cropped up, from creators hitting snags that prevented the final product from being made and delivered to backers, to projects becoming wildly successful and the products sold to much larger companies. It is this latter situation and the outrage that has been generated by situations like the sale of virtual reality headset maker Oculus to Facebook for $2 billion dollars that has raised the question of what rights backers have when creators sell the product or company to another company for millions or even billions of dollars.

Serious Personal Injury Lawsuit Filed

Serious personal injury lawsuit filed by pedestrian struck while crossing the street. Driver who left the scene was later arrested and faces felony charges as well.

Lawsuit seeks compensation for woman injured on St. Patrick's Day in Snowmass Village

Can An Employer Be Sued For Encouraging Painkillers to Mask a Serious Injury?

If an NFL team encourages powerful controlled painkillers with possible addiction and other side effects to allegedly mask a player's serious personal injury such as  broken bones, can the injured player sue?

Latest Legal Attack Portrays NFL as a Massive Drug-Pushing Conspiracy

Pilot of Barge That Killed Two Men Found Not Guilty

Barge Pilot's Vessel Strikes a Fishing Boat and The Accident Kills Two Men. Was the barge pilot found not guilty because there truly was no negligence on his part, or was it more due to good "lawyering?"

Jury Finds Barge Pilot Warren Luetke Not Guilty Of Criminally-Negligent Homicide

May 19, 2014. By Hollie Webb via chattanoogan.com. A jury found barge pilot Warren Luetke not guilty of criminally-negligent homicide after a week-long trial. The verdict was announced Monday morning after just about an hour of deliberation in the courtroom of Judge Barry Steelman.

Breach Of Fiduciary Standard Quite High in M&A

This court ruled that the plaintiff in a breach of fiduciary duty lawsuit against a board over a merger must plead facts sufficient to show that the Board "utterly failed" to undertake any action. That's a high bar.

Delaware Court Shows Heightened Pleading Standard Necessary To Support A Claim For Breach Of Fiduciary Duty In Connection With A Merger

May 19 2014. By John Stigi and Alejandro E. Moreno via mondaq.com.

Fraud, Legal Malpractice, and Curt Shilling's 38 Studios in Rhode Island

Allegations of Wall Street influence, fraud, and legal malpractice surround former pitcher Curt Shillings now-bankrupt 38 Studios. 

Candidates for R.I. governor disagree on whether to pay 38 Studios investors

May 12, 2014. By Katherine Gregg, Providence Journal, via providencejournal.com.

Money Laundering and Legal Malpractice

Taking money from a client's account for personal use is an obvious breach of the attorney-client relationship, still lawyers sometimes do just that. This time a prominent attorney was caught.

Bar Association President admits to money laundering

May 12, 2014. By Steve Vockrodt via lexology.com.

View That Your Lawyer Mishandled Your Case May Not Be Malpractice

Establishing legal malpractice can be challenging. In this case the plaintiff would have had to prove that her case would have turned out differently if another judge had presided.

Mobile judge tosses malpractice suit by Kenny Stabler's ex-wife, but she continues fight.

May 06, 2014. By Brendan Kirby via blog.al.com.

When Can A Case Achieve A National Class Action Standing?

Do your local research upfront to determine if your case qualifies.

Early ruling sets boundaries for class action, citing the importance of standing and avoiding "extensive discovery costs and delay"

March 13 2014. By Peter Breslauer, via lexology.comA recent decision of the United States District Court for the Western District of Pennsylvania dismissed, as a threshold question of jurisdiction, a plaintiff's allegation seeking a nationwide class, because the plaintiff personally had standing to sue only under the law of the state where the financial services in question were provided to her. Lauren v. PNC Bank, N.A., No. 2:13-cv-762, 2014 WL 123099 (W.D. Pa. Jan. 14, 2014) (opinion here). In so limiting the potential class, the court, writing without benefit of binding Third Circuit precedent, adopted the standing analysis of the Eastern District of Pennsylvania inIn re Wellbutrin XL Antitrust Litig., 260 F.R.D. 143 (E.D. Pa. 2009) (opinion here), which similarly dismissed nationwide class allegations and limited the potential class to persons in the states where the named plaintiffs lived. The standing question was resolved before any proceedings on the plaintiff's request to certify a nationwide class, because, as the court explained, to do otherwise "would trigger extensive discovery costs and delay" that could be avoided if it were determined that plaintiff lacked standing to sue. In Lauren, the plaintiff alleged that defendants, PNC Bank, Assurant, and American Security Insurance Company, "force-placed" hazard insurance on persons with residential mortgages or lines of credit with PNC. Plaintiff asserted claims against PNC for breach of the implied covenant of good faith and fair dealing, breach of the mortgage agreement, breach of fiduciary duty/misappropriation of escrow funds, and violation of the Ohio Consumer Sales Practices Act. Plaintiff asserted claims against Assurant and ASIC for unjust enrichment and aiding and abetting breach of fiduciary duty. After preliminary motion practice, the only claim remaining against ASIC was for unjust enrichment. ASIC then moved to dismiss the nationwide class allegations on grounds that the court lacked subject-matter jurisdiction over unjust enrichment claims asserted under the laws of every state. The court granted ASIC's motion, and limited the potential class on the unjust-enrichment claim to persons who, like plaintiff, had claims under Ohio law. The court began by noting that "[t]here is no binding Third Circuit precedent directly on point." It then "conclude[d] that Lauren lacks standing to assert unjust enrichment claims based on the laws of states other than Ohio." 2014 WL 123099, at *1. Relying principally on the Wellbutrin opinion, the court noted that the "Supreme Court has held that the requirement that a named plaintiff have standing is no different in the class action context," and that "standing must be analyzed on a claim-by-claim and state-by-state basis." Id. (citing Wellbutrin, 260 F.R.D. at 152). It quoted Wellbutrin, 260 F.R.D. at 152, as follows: A named plaintiff whose injuries have no causal relation to, or cannot be redressed by, the legal basis for a claim does not have standing to assert that claim. For example, a plaintiff whose injuries have no causal relation to Pennsylvania, or for whom the laws of Pennsylvania cannot provide redress, has no standing to assert a claim under Pennsylvania law, although it may have standing under the law of another state. Moree here

Chuck Yeager Legal Malpractice Trial

Chuck Yeager and his wife former actress Victoria Scott D'Angelo are suing their attorneys for legal malpractice, but with an outstanding bill to the legal firm of $270,000. Without a signed agreement of representation, will monthly legal bills and statements constitute a contract?

April 29, 2014.  Fresno Bee online at appeal-democrat.com.

FRESNO — A civil trial involving legendary Gen. Charles "Chuck" Yeager began Monday with the first man to break the sound barrier and his wife facing accusations of breaching a contract with a Fresno law firm.

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