The Third Circuit on Thursday revived some ERISA contract claims in a New Jersey hospital network's suit alleging Cigna underpaid out-of-network reimbursements by $114 million, but backed the dismissal of the network's fiduciary duty claims.
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TOP NEWS

3rd Circ. Partly Revives Hospitals' ERISA Suit Against Cigna

By George Woolston

The Third Circuit on Thursday revived some ERISA contract claims in a New Jersey hospital network's suit alleging Cigna underpaid out-of-network reimbursements by $114 million, but backed the dismissal of the network's fiduciary duty claims.

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FDA, Drugmakers Urge 5th Circ. To Allow Abortion Pill By Mail

By Hailey Konnath

The U.S. Food and Drug Administration and the makers of the abortion medication mifepristone have urged the Fifth Circuit not to reinstate an in-person dispensing requirement, arguing that doing so would disrupt the government's ongoing review of the drug, "threaten chaos" and defy the U.S. Supreme Court.

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Mich. Justices Back Conviction Despite 'Medical Torture' Flub

By Melanie Dorsey

The Michigan Supreme Court has ruled that a child abuse expert for the prosecution should not have told jurors in a child abuse trial that she diagnosed a young victim with "medical torture," but it unanimously concluded that the error did not warrant a new trial because other evidence overwhelmingly supported the conviction. 

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Walgreens Sues Mass. Medicaid Program Over Drug Rates

By Julie Manganis

Walgreens says administrators of the Massachusetts Medicaid program cannot rely on drug prices negotiated with pharmacy benefit managers to determine reimbursement rates, in a challenge to the state's effort to claw back $242,000 in alleged overpayments.

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ENFORCEMENT & COMPLIANCE

Fla. Cos. To Pay $152M In FTC Healthcare Telemarketing Row

By Hope Patti

A pair of insurance agencies accused by the Federal Trade Commission of operating a deceptive telemarketing scheme that targets consumers looking for health insurance must pay a combined $152 million to resolve the claims, a Florida federal court ruled Thursday.

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Brief

Diagnostics Co. Labcorp Settles FCA Claims For $14.5M

By Julie Manganis

Diagnostics testing company Labcorp will pay $14.5 million to settle False Claims Act allegations that it submitted unnecessary Medicare claims for urine drug tests, the Massachusetts U.S. attorney's office announced.

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POLICY & REGULATION

Senate Democrats Revive Bill To End Federal Marijuana Ban

By Sam Reisman

Senate Democrats on Thursday once again reintroduced a cannabis legalization bill that would remove the drug entirely from the ambit of the Controlled Substances Act and impose a tax-and-regulate scheme akin to what is currently in place for alcohol and tobacco.

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Brief

DEA Judge Lays Out Next Steps Following End Of Pot Hearing

By Sam Reisman

A U.S. Drug Enforcement Administration administrative law judge has laid out upcoming deadlines following the conclusion of hearings on a proposal to move marijuana to Schedule III under the Controlled Substances Act.

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LITIGATION

Calif. Justices Put Kibosh On Appeal Strategy In Med Mal Case

By Y. Peter Kang

The California Supreme Court on Thursday clarified the state's final judgment rule and held that a voluntary dismissal intended to speed up appellate review of adverse trial court rulings in a medical malpractice case essentially forfeited the case for the plaintiffs.

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Pa. Hospital Must Face Bulk Of Website Pixel Tracking Row

By Allison Grande

A Pennsylvania federal judge has mostly refused to toss a putative class action accusing Warren General Hospital of illegally deploying tracking technology that divulged website visitors' private health information to Meta and others, trimming injunctive relief and negligence per se allegations while allowing state wiretap and six other claims to proceed.

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Aramark Asks Full 5th Circ. To Nix Aetna ERISA Arbitration Bid

By Grace Elletson

Food services company Aramark urged the full Fifth Circuit to deny Aetna's request to arbitrate allegations that it cost Aramark millions by bungling health benefits claims, arguing that the insurer is attempting to twist U.S. Supreme Court precedent to kick the case out of court.

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Fed. Circ. Vacates $12.7M Copyright Award Against Gov't

By Ivan Moreno

The Federal Circuit on Thursday vacated a $12.7 million copyright award against the federal government over unauthorized copies of software for a project on military health records, holding that the trial judge improperly relied on the project's later cancellation and awarded enhanced damages for willful infringement against the government.

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Aviation Co.'s Coverage Argument Is 'Foolish,' Fund Says

By Benjamin Morse

A union health fund told a New York federal judge that two affiliated aviation services entities cannot avoid required benefit contributions for eight full-time workers by failing to enroll them and then arguing that the resulting lack of coverage excused payment, according to a court filing.

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Brief

Geico Gets Final OK On $2.6M Injury Coverage Deal In Wash.

By Gianna Ferrarin

A Washington federal judge signed off on a $2.6 million settlement between Geico and a class of hundreds of drivers resolving a dispute over whether the insurer improperly withheld drivers' personal injury protection coverage by asserting they reached "maximum medical improvement."

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DEALS

Ropes & Gray, Latham Steer $3.8B Eli Lilly Mental Health Deal

By Al Barbarino

Eli Lilly said Thursday it will acquire New York-based drug developer AtaiBeckley Inc. in a deal valued at up to $3.8 billion, expanding its pipeline of experimental treatments for depression and other mental health disorders.

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PEOPLE

EXPERT ANALYSIS

Series

Being A Magician Makes Me A Better Lawyer

The skills I've developed as a lifelong magician have translated directly into tangible benefits in the courtroom because performing magic and trying cases both live at the intersection of psychology, storytelling, timing and disciplined rehearsal, says Mark Dombroff at Fox Rothschild.

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LEGAL INDUSTRY

How Does Your Compensation Stack Up? Take Our Survey

Is your compensation keeping pace with the rate of inflation? Do you know what your colleagues made last year? Help Law360 Pulse answer these questions and more in this year's Law Firm Compensation Survey.

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Feature

As Law Firms Race To Adopt AI, Cost Concerns Grow

By Phillip Bantz

Pressure is mounting on law firm leaders to dive into the AI waters or watch competitors swim away, but figuring out responsible, cost-effective methods to use high-priced legal tech remains tricky, experts say.

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Richards Layton Apologizes For AI Errors In Chancery Case

By Rose Krebs

Richards Layton & Finger PA and one of its attorneys have apologized to the Delaware Chancery Court for submitting a filing with errors generated by artificial intelligence, asking that sanctions not be imposed.

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McDermott Atty Denies Pressuring Friend To Alter Testimony

By Rose Krebs

A McDermott Will & Schulte LLP attorney has told a Delaware vice chancellor that he is in "complete shock" and "hurt" by a longtime friend's contention that he pressured him to change his testimony in a Chancery Court case, saying the accusation "is false and without any merit."

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Simpson Thacher 'Never' Explained Ill-Fated Deal, Exec Says

By Cara Salvatore

A founder seeking over $100 million from Simpson Thacher & Bartlett over a transaction he says destroyed his insurance services company testified Thursday the law firm provided him no education on various words he wasn't familiar with in the deal.

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Blue-Slip-Backed Trump Judge Selections Advance

By Courtney Bublé

The first two judicial nominations of the second Trump administration to receive supportive blue slips from Democratic senators advanced to the Senate floor Thursday.

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Goulston Docked Ex-Partners' Pay For Joining Rival, Suit Says

By Julie Manganis

Two Goulston & Storrs PC directors who jumped to Troutman Pepper Locke LLP were stiffed out of hundreds of thousands of dollars in compensation in retaliation for leaving, according to a suit filed Thursday in New York federal court.

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Feature

In Uber Assault Trial, A Courtroom Tests Truth Face-To-Face

By Hayley Fowler

This is the first in a two-part series about the Virginia Revival Model courtroom in the Charles R. Jonas federal courthouse in Charlotte, North Carolina. Here, judges and attorneys recall how a sexual assault trial against Uber unfolded in a space designed to place focus on the witnesses.

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Tillis Might Back Blanche, As AG Pick Met Epstein Survivors

By Courtney Bublé

Acting U.S. Attorney General Todd Blanche on Thursday afternoon met with a group of survivors of sex offender Jeffrey Epstein after retiring Sen. Thom Tillis, R-N.C., said his condition for supporting Blanche's appointment to the permanent position was for the nominee to speak to them face-to-face.

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COMPANIES IN TODAY'S NEWS

Aetna Inc.

Alliance Defending Freedom

Allied Aviation Services Inc.

American Hospital Association

Aramark

Eli Lilly & Co.

Geico Corp.

Google LLC

Hard Yaka Inc.

KPMG International

Labcorp Holdings Inc.

Meta Platforms Inc.

Microsoft Corp.

Palantir Technologies Inc.

Patriot National Inc.

Post Acute Medical LLC

The Cigna Group

Tidewater, Inc.

Uber Technologies Inc.

University of Chicago Medical Center

LAW FIRMS IN TODAY'S NEWS

Abrams & Bayliss

Anapol Weiss

Arnold & Porter

Badgley Mullins

Burns Charest

Cohen & Gresser

Cole Pedroza

Conrad & Scherer

Cove Law PA

Faegre Drinker

Forchelli Deegan

Fox Rothschild

Freshfields

Goulston & Storrs

Haynes Boone

Hicks Thomas

Hogan Lovells

K&L Gates

Kirkland & Ellis

Knox McLaughlin

Landis Rath

Latham & Watkins

McDermott Will & Schulte

McKool Smith

Morris Nichols

Olshan Frome

Paul Hastings

Potter Anderson

Pryor Cashman

Quinn Emanuel

Reed Smith

Richards Layton

Rivkin Radler

Robinson & Cole

Ropes & Gray

Simpson Thacher & Bartlett

Stearns Weaver

Stranch Jennings

Strauss Borrelli

Tarter Krinsky

Troutman

Watstein Terepka

Williams & Connolly

Williams Kastner

GOVERNMENT AGENCIES IN TODAY'S NEWS

Bureau of Alcohol and Tobacco Tax and Trade

California Supreme Court

Commonwealth of Massachusetts

Delaware Court of Chancery

Executive Office of the President

Federal Bureau of Investigation

Federal Trade Commission

Food and Drug Administration

Louisiana Attorney General's Office

Michigan Supreme Court

Office of Justice Programs

Small Business Administration

State of Michigan

U.S. Court of Appeals for the Federal Circuit

U.S. Court of Appeals for the Fifth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Justice

U.S. District & Bankruptcy Courts of Southern District of Texas

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

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

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

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

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

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

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

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

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

U.S. Drug Enforcement Administration

U.S. House of Representatives

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of North Dakota