A medical clinic located in New Orleans, Spine Care East, LLC, filed suit in a federal district court in Louisiana on August 24, against its insurer, Hanover Insurance Company. In the Complaint (click here to review the Complaint), Spine Care alleges that Hanover acted in bad faith by failing to properly compensate Spine Care for its business interruption losses sustained in the wake of Hurricane Katrina.
Coverage & Claims
BREAKING NEWS: Prudential Sues State Street Over Mortgage Related Losses
Prudential Financial, Inc. announced yesterday that one of its subsidiaries has filed a lawsuit against State Street & Trust Corp. and State Street Global Advisors over losses allegedly suffered by Prudential clients in two bond funds managed by State Street. The suit accuses State Street of “radically” changing its investment strategies for the two funds without disclosing those changes to Prudential or its clients.
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The Flurry of Katrina-Related Filings Before the Statute of Limitations Passed
By Troutman Pepper Locke on
August 29 was the last day that Louisiana residents could file lawsuits against their insurers alleging that their insurers did not properly adjust, or pay, their Hurricane-Katrina related claims. Louisiana had previously extended the time in which parties had to file lawsuits arising out of Katrina-related damage, on property claims from one to two years.
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Hip And Knee Replacement Manufacturers Agree To Pay $310 Million To Avoid Criminal Prosecution And Civil Suits For Alleged Kickback Arrangements With Doctors
By Troutman Pepper Locke on
Christopher Christie, U.S. Attorney for the District of New Jersey, yesterday announced a settlement with four major hip and knee replacement manufacturers that allows the companies to avoid criminal prosecution and civil suits arising from alleged kickback relationships with orthopedic surgeons.
West Virginia’s Recent Rejection of The Learned Intermediary Doctrine In The Pharmaceutical Context May Apply Equally To Medical Device Claims
By Troutman Pepper Locke on
As previously reported here, the Supreme Court of Appeals of West Virginia has specifically declined to adopt the learned intermediary doctrine. Johnson & Johnson Corp. v. Karl, No. 33211 (W.Va. June 27, 2007). The Court reasoned that the healthcare industry has changed and that pharmaceutical manufacturers “are pushing their products onto the public like never before.”
Solicitor General Comes Out In Favor Of Non-Issuer Defendants In Securities Class Action Case
By Troutman Pepper Locke on
Last month, Solicitor General Paul D. Clement filed an amicus brief with the United States Supreme Court siding with non-issuer defendants in a securities class action case. The case, entitled Stoneridge Investment Partners v. Scientific-Atlanta, No. 06-43 (U.S. Sup. Ct.), involves securities class action claims brought by shareholders against two third-party suppliers based on certain transactions between those suppliers and the issuer, Charter Communications, Inc. (“Charter”).
California Federal Court: No Bad Faith Just Because Arbitrator Awards More Than Insurer Had Offered to Pay
By Troutman Pepper Locke on
The United States Federal District Court for the Central District of California recently held that there was no bad faith where the insurer had a reasonable basis upon which to genuinely dispute the insured’s claim.
NERA: Securities Class Action Filings Remain Low, Average Settlements Remain High, But These Trends May Not Last
By Troutman Pepper Locke on
NERA Economic Consulting recently issued a report entitled “Recent Trends in Shareholder Class Action Litigation: Filings Stay Low -Average Settlements Stay High-But Are These Trends Reversing?” (the “NERA Report”).
SEC to Explore Shareholder Litigation Reform
By Troutman Pepper Locke on
The Wall Street Journal reports that the SEC will hold a roundtable in the spring of 2008 on issues relating to shareholder litigation reform, including the role played by insurers in indemnifying companies and individuals and the cost of paying for attorneys fees in securities class action lawsuits.
Bad Faith Plaintiff Entitled To Discovery Of Insurer’s Records Concerning Reserves, Financial Performance of Policy Line, and Claims Personnel Compensation
Judge Ashley Royal of the United States District Court for the Middle District of Georgia recently held in a case by an insured against its disability insurer alleging bad faith refusal by the insurer to pay disability benefits, that the plaintiff was entitled to discovery of a wide range of documents potentially bearing on the insurer’s “intent” and the circumstances “surrounding” the insurer’s refusal to pay.