California

  • July 02, 2020

    Sutter Health Indirect Purchasers Vie For Cert. In $489M Suit

    Health insurance plan purchasers seeking $489 million from Sutter Health on claims they overpaid because the hospital chain violated antitrust laws told a California federal judge during a hearing Thursday that their renewed class certification bid isn't doomed by a dispute over calculating damages.

  • July 02, 2020

    Calif. Air Medics Get Initial OK For $78M Wage Settlement

    A California state judge has given a preliminary thumbs-up to a $78 million settlement that would resolve outstanding claims by a certified class of about 450 medical flight crew workers accusing helicopter operator Air Methods Corp. of committing various wage violations.

  • July 02, 2020

    Composer Says YouTube Fosters 'Hotbed' Of Copyright Piracy

    Grammy Award-winning composer Maria Schneider hit YouTube with a putative class action in California federal court Thursday alleging it facilitates a "hotbed" of copyright infringement through its enforcement system, which she said only protects major studios and record labels and abandons "ordinary creators" like her.

  • July 02, 2020

    Calif. Ryder Delivery Drivers Ink $5M Miclassification Deal

    A motor carrier owner working for Ryder System Inc. urged a California federal judge Wednesday to sign off on a proposed $5 million class settlement to resolve claims that Ryder misclassified delivery workers as independent contractors to avoid paying all wages and job-related expenses.

  • July 02, 2020

    Faraday Future Tycoon Exits Ch. 11 After $3.5B Reorg

    A Chinese tycoon and founder of electric car startup Faraday Future reported a successful emergence Thursday from a personal Chapter 11 in California that briefly detoured through Delaware bankruptcy court, following confirmation of a more than $3.5 billion reorganization.

  • July 02, 2020

    Portola Says Stock Drop Was 'Reversal Of Fortune,' Not Fraud

    Portola Pharmaceuticals pushed a California federal judge to toss a proposed class action accusing the company of misstating the actual market value of its blood coagulant, Andexxa, arguing there is no evidence it misled its shareholders.

  • July 02, 2020

    Travelers Says Flower Cos. Can't Claim $2M Pandemic Losses

    Travelers Property Casualty Co. has asked a California federal court to nix a flower importers' suit over their $2 million COVID-19-induced property loss insurance claims, arguing that the importers' insurance policy excludes coverage of the consequences of the government's decisions.

  • July 02, 2020

    EEOC Charge Alleges Sweeping Racial Bias At Facebook

    Facebook screens out Black job applicants and routinely relies on peer reviews by its overwhelmingly white and Asian American workforce to unfairly deny promotions to its few Black employees, according to a class action race bias charge filed Thursday with the U.S. Equal Employment Opportunity Commission.

  • July 02, 2020

    Apple Seeks To Ditch Suit Over Laptop Displays

    Apple recently hit back against a proposed class action claiming it hid display defects on 15-inch MacBook Pro laptops, saying the suit is based on a false assumption on the design and can't be backed by facts.

  • July 02, 2020

    As Courts Punt CBD Class Actions, Attys Wait For FDA To Act

    A string of federal courts have paused consumer class actions against CBD companies until the U.S. Food and Drug Administration issues long-anticipated rules governing the products, but litigants say the regulations, once finalized, are unlikely to resolve any of the issues raised by the cases.

  • July 02, 2020

    Ex-MedMen CFO Seeks $600K In Fees Amid Breakup Suit

    The former chief financial officer of pot giant MedMen is asking a California state court to award him more than $600,000 in attorney fees midway through a bitter legal fight over his departure, saying his contract entitles him to reimbursement for the litigation.

  • July 02, 2020

    9th Circ. Affirms Ruling On FCC Licensing Scheme

    The Ninth Circuit has mostly affirmed a ruling ordering several companies to pay the U.S. Securities and Exchange Commission more than $14 million after the agency accused them of participating in a fraud scheme involving Federal Communications Commission cellular spectrum licenses.

  • July 02, 2020

    Calif. Woman Gets 2 Years For False Green Card Promises

    A California woman received a two-year sentence for defrauding four Iranian nationals out of $120,000 with false promises that she could secure them American immigration benefits, including green cards and citizenship, the Justice Department has announced.

  • July 02, 2020

    Border Search Of Cellphones May Need Justices' Input

    American travelers are uncertain of what rights they have when border agents ask to search their cellphones, especially after conflicting rulings from circuit courts, and the U.S. Supreme Court may be the only forum where travelers can get certainty.

  • July 02, 2020

    Coronavirus Litigation: The Week In Review

    Grocery delivery service Instacart is suing to block a Seattle ordinance requiring coronavirus hazard pay for gig delivery workers, New York police officers and Las Vegas resort workers claim they haven't been provided with adequate protections during the pandemic, and the ACLU says California courts can't block public access to trials, despite the virus. 

  • July 02, 2020

    Calif. Criticizes FERC Transmission Incentives Proposal

    A coalition of states, including California and Massachusetts, criticized the Federal Energy Regulatory Commission's proposal to update incentives for transmission projects, saying it doesn't do much to reduce the amount consumers must pay or help the right kinds of projects.

  • July 02, 2020

    Irish Co. Unable To Reverse Alice Loss On Music Transfer IP

    The Federal Circuit has upheld a California federal judge's 2019 ruling that four Data Scape Ltd. patents covering a method for transferring music files from one device to another are invalid under Alice.

  • July 02, 2020

    Calif. Plastic Suit Belongs In State Court, Green Group Says

    An environmental group hoping to hold Nestle, PepsiCo, Clorox and others accountable for plastic pollution along California's coastline has slammed the companies' attempts to try the case in federal court, saying they have mischaracterized its state-specific arguments as national or international issues.

  • July 02, 2020

    More Than A Dozen Firms Aided Largest Q2 Real Estate Deals

    White & Case and Hogan Lovells were among more than a dozen firms that helped with the 10 largest real estate mergers and acquisitions deals of the second quarter, five of which were north of the $1 billion mark.

  • July 02, 2020

    Justices Won't Touch 9th Circ. Ruling On Sex-Based Pay Gaps

    The U.S. Supreme Court on Thursday refused to hear a challenge to an en banc Ninth Circuit decision that barred employers from using workers' salary history to justify sex-based pay disparities.

  • July 01, 2020

    Calif. Atty Reported To Bar For Real Estate Fraud

    A California state appellate court reported an attorney to the state's bar association after determining he engaged in real estate fraud to avoid paying a judgment of over $900,000 for charging a former client excessive fees.

  • July 01, 2020

    Sports Antitrust Protection Questioned As NCAA Seeks Bill

    U.S. Sen. Richard Blumenthal said Wednesday it may be high time to scrutinize sports labor antitrust exemptions, with the NCAA urging Congress to give it a pass from antitrust scrutiny as it works to reform its rules restricting college athletes from profiting from the use of their names, images and likenesses.

  • July 01, 2020

    DOJ Seeks Warhol, Monet Artwork In $96M 1MDB Clawback

    The U.S. Department of Justice on Wednesday filed civil forfeiture complaints seeking about $96 million in assets allegedly related to money laundering by a Malaysian state-owned investment fund, including artwork by Claude Monet, Jean-Michel Basquiat and Andy Warhol.

  • July 01, 2020

    Agendia Pays $8.25M In FCA Suit Over Delayed Cancer Tests

    The California molecular diagnostics testing company Agendia agreed Wednesday to pay the U.S. Department of Justice $8.25 million to settle a whistleblower's False Claims Act lawsuit alleging that it intentionally delayed breast cancer screening tests as part of a nationwide, multiyear Medicare billing fraud scheme.

  • July 01, 2020

    24 Hour Fitness Rent Deferral OK'd Over Landlord Outcry

    A Delaware judge on Wednesday gave her nod for gym chain 24 Hour Fitness Worldwide Inc. to defer an estimated roughly $65 million in rent payments, despite strong objection from multiple landlords, as it moves forward with Chapter 11 plans to restructure its $1.4 billion in debt.

Expert Analysis

  • SEC's Insider Info Case Shows Perils Of Portfolio Co. Trading

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    The U.S. Securities and Exchange Commission's recently settled enforcement action against Ares Management demonstrates that private fund managers with potential insider info should systematically investigate trading approvals in situations that present a heightened risk of access to material nonpublic information, say attorneys at Debevoise.

  • COVID-19 Orders Unlikely To Constitute Temporary Takings

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    Although public agencies have issued a broad range of orders intended to slow the spread of COVID-19, they are likely safe from temporary takings claims due to the high hurdles for such claims and the expanded police powers granted to governments during public health emergencies, say Gene Tanaka and Emily Chaidez at Best Best.

  • Calif. Ruling Will Help Cos. Fight Fraud-By-Implication Suits

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    The California Court of Appeal's recent ruling in Shaeffer v. Califia Farms — holding that a company's claims about its product did not imply false claims about other companies' products — provides an important framework that food manufacturers can use to dispose of similar cases at the pleading stage, say attorneys at Covington.

  • Opinion

    Time To Consider Percentage Rental Agreements For Lawyers

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    It has long been the law that attorneys cannot use percentage rental agreements because doing so would constitute an impermissible sharing of fees with nonlawyers, but such arrangements can help lawyers match expenses with revenues in lean times like now, say Peter Jarvis and Trisha Thompson at Holland & Knight.

  • Handling Employee Vacation Requests During COVID-19

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    While there is little precedent for dealing with employee vacation requests during a pandemic, companies can protect workers by carefully asking about travel plans, and following public health agency and local guidelines when advising employees to self-isolate, say attorneys at Baker McKenzie.

  • Calif. Cannabis Delivery Case May Bring Black-Market Growth

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    A win for municipalities suing the California Bureau of Cannabis Control in an upcoming trial this month would likely lead to an increase in black-market services by disallowing legal statewide marijuana delivery, say Michael Rosenblum and Lauren Chee at Thompson Coburn.

  • Indirect Purchaser Antitrust Standing Heads In New Direction

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    The applicability of the U.S. Supreme Court's 1983 Associated General Contractors indirect purchaser price-fixing decision to antitrust standing under state law continues to evolve, with some decisions that may portend diminished application, say Chris Micheletti and James Dugan at Zelle.

  • Altera Could Bolster State Transfer Pricing Scrutiny

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    The reasoning of the Ninth Circuit's Altera v. Commissioner decision — which the U.S. Supreme Court recently declined to review — could provide state tax authorities with an argument for additional discretion when challenging transfer pricing arrangements between affiliated entities, say attorneys at Eversheds Sutherland.

  • High Court Clarifies CFPB's Future, Complicates CFPB's Past

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    While the U.S. Supreme Court's decision in Seila Law this week leaves the Consumer Financial Protection Bureau standing, the CFPB's director now lacks protection from presidential termination, which brings uncertainty regarding the status of past actions taken by bureau directors who were "unconstitutionally insulated" from termination, says Eric Mogilnicki at Covington.

  • Auto Cos. Should Ramp Up Their Supply Chain Vetting

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    Automotive companies procuring from new sources because of the pandemic or adapting to new requirements of the U.S.-Mexico-Canada Agreement can minimize their compliance risks by implementing full-spectrum, know-your-source due diligence and documenting every aspect of their vetting process, say Gregory Husisian and Jenlain Scott at Foley & Lardner.

  • 'Settle And Sue' Malpractice Cases Have New Clarity In Calif.

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    A California state appellate court's recent decision in Masellis v. Law Office of Leslie F. Jensen provides a road map for proving causation and damages in settle-and-sue legal malpractice cases — an important issue of long-standing confusion, says Steven Berenson at Klinedinst.

  • How Discovery Is Evolving In ERISA Benefits Litigation

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    While courts have been reluctant to grant discovery in Employee Retirement Income Security Act benefits cases in the past, textual-minded judges questioning the legitimacy of judicially created doctrines are increasingly allowing more discovery, says Mark DeBofsky at DeBofsky Sherman.

  • High Unemployment May Threaten Restrictive Covenants

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    Restrictive covenants in employment agreements will face greater scrutiny from courts if high unemployment persists, but the analysis will depend on whether the company aims to protect trade secrets, client relationships or its interest in unique employees, says Reid Skibell at Harris St. Laurent.

  • How Calif. Privacy Rights Act Could Shape Privacy Landscape

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    If California voters support the California Privacy Rights Act in November, it will become a permanent baseline for California privacy law, increase the already demanding requirements of the California Consumer Privacy Act, and potentially redefine informational privacy for the entire U.S., say Lauren Kitces and Lydia de la Torre at Squire Patton.

  • What You Say In Online Mediation May Be Discoverable

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    Mediation conducted online with participants in different states makes it harder to determine where communications were made, increasing the risk that courts will apply laws of a state that does not protect mediation confidentiality, say mediators Jeff Kichaven and Teresa Frisbie and law student Tyler Codina.

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