Split 4th Circuit Panel Affirms Refusal To Enjoin North Carolina Vape Directory
RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel split in a July 30 ruling as to whether sellers of e-cigarette products have standing to sue North Carolina officials over a new state directory that prohibits sales of products that are not authorized for sale by the Food and Drug Administration, with the majority concluding that vape sellers have standing to sue but affirming that they were unlikely to prevail on their preemption theory.
3rd Circuit Reinstates Atlantic City Hotel AI Pricing Suit
PHILADELPHIA — Artificial intelligence could facilitate the type of coordinated pricing and collusion resulting in reduced competition, and a proposed class plausibly alleges that casinos shared otherwise nonpublic information about hotel room pricing through such a program and acted in a way they likely would not have otherwise, a Third Circuit U.S. Court of Appeals panel held in reversing dismissal of the putative class action.
Panel Vacates Injunction, Majority Says Iowa E-Cig Law Not Preempted
ST. LOUIS — An Eighth Circuit U.S. Court of Appeals panel on July 30 unanimously vacated a judge’s ruling enjoining Iowa’s law regulating sales of e-cigarettes and barring sales of certain products without Food and Drug Administration marketing authorization, finding that a vaping advocacy association and five vape companies were not likely to prevail on the merits, but split as to whether the law is preempted, which a judge concurring in the judgment said “requires a far more extensive record” to decide.
8th Circuit: Insured’s Receiver Fails To State Claim Against D&O Insurer
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on July 30 affirmed a lower federal court’s dismissal of a breach of contract and vexatious refusal to pay lawsuit that an insured’s receiver brought against a directors and officers liability insurer in a coverage dispute arising from a defaulted loan, holding that the receiver failed to plausibly allege that two letters that he sent to the insurer constitute a claim under the D&O policy.
8th Circuit Affirms Judgment For Life Insurer In Dispute Over $4M STOLI Policy
ST. LOUIS — The Eighth Circuit U.S. Court of Appeals on July 30 affirmed a lower court’s ruling granting summary judgment to a life insurer in a breach of contract and bad faith suit over the insurer’s failure to pay the death benefits under a $4 million life insurance policy, finding that the policy was void as a stranger-originated life insurance (STOLI) policy because the policy was procured with the intent to benefit persons lacking an insurable interest in the insured’s life under New Jersey law.
Split 9th Circuit Affirms Use Of Effective Vindication Rule In ERISA Case
SAN FRANCISCO — Applying Platt v. Sodexo, S.A. in a July 30 ruling that one panel member dissented from for two reasons, the Ninth Circuit U.S. Court of Appeals affirmed that a nonseverable arbitration provision is unenforceable because it contains a class, collective and representative action waiver that prevents effective vindication of retirement plan participants’ substantive right under the Employee Retirement Income Security Act.
10th Circuit Reverses Ruling In Insurers’ Favor In Church’s Coverage Suit
DENVER — The 10th Circuit U.S. Court of Appeals reversed a lower federal court’s grant of summary judgment in favor of insurers in The Church of Jesus Christ of Latter-Day Saints’ breach of contract and declaratory judgment lawsuit seeking coverage for a negligence action alleging that it failed to take precautions to stop sexual abuse, finding that the policies’ definitions of occurrence are ambiguous and the insured’s interpretation of the policies is reasonable.
2nd Circuit Affirms Dismissal Of Securities Fraud Suit For Lack Of Scienter
NEW YORK — A Second Circuit U.S. Court of Appeals panel affirmed the dismissal of investors’ putative securities fraud class action against a virtual health care service provider and certain of its executives regarding alleged misstatements they made after the company’s $18.5 billion merger with another health care company, finding that the investors had not adequately alleged scienter.
Split 3rd Circuit Affirms Fees For Failed IP Claims, Trade Secret Fudge Recipe Win
PHILADELPHIA — A partially split Third Circuit U.S. Court of Appeals panel on July 29 affirmed both attorney fees against plaintiff entities over their unsuccessful copyright and trademark claims in a dispute over fudge and affirmed their jury victory on trade secret claims, holding that there was enough evidence in the record for a jury to find that a fudge recipe derived economic value from remaining secret.
Majority Vacates Ruling In Insurer’s Favor In Hailstorm Coverage Dispute
ST. LOUIS — A majority of the Eighth Circuit U.S. Court of Appeals vacated a lower federal court’s summary judgment ruling in favor of a commercial property insurer in an insured’s breach of contract and declaratory judgment lawsuit seeking coverage for hail damage to the roofs of its elementary and high schools, finding that the lower court erred in holding that the policy’s cosmetic damage exclusion barred coverage.
11th Circuit Affirms Exclusion Of General Causation Experts In Toxic Exposure Cases
ATLANTA — The 11th Circuit U.S. Court of Appeals agreed with a lower court in finding that general causation experts in related environmental contamination cases did not reliably apply their methodologies in concluding that toxic waste caused various neurological conditions and affirmed the experts’ exclusion and the summary judgment in two cases that were consolidated on appeal.