The Supreme Court recently issued a significant decision regarding the reach of SEC Rule 10b-5. In Macquarie Infrastructure Corp. v. Moab Partners, L.P., the Court addressed whether the failure to disclose information...more
Yesterday, the Supreme Court issued its much-anticipated decision in Goldman Sachs v. Arkansas Teacher Retirement System, Case No. 20-222. But because there was not much “daylight” left between the parties’ arguments by the...more
6/23/2021
/ Arkansas Teacher Retirement System v Goldman Sachs Group ,
Basic v Levinson ,
Burden of Persuasion ,
Burden of Proof ,
Certiorari ,
Class Action ,
Class Certification ,
Conflicts of Interest ,
Goldman Sachs ,
Investors ,
Presumption of Reliance ,
SCOTUS ,
Securities Exchange Act ,
Securities Litigation ,
Shareholders
The Second Circuit’s recent decision in Singh v. Cigna Corp., confirms that puffery regarding a corporation’s compliance program cannot form the basis for a stock drop suit.
In 2012, Cigna sought to expand its Medicare...more
In a closely watched case, the Court of Federal Claims last week refused to dismiss a health insurer’s putative class action against the Federal government for payments authorized under the Affordable Care Act. The Court’s...more
The FCA’s public disclosure bar precludes liability when a relator’s allegations have been publicly disclosed in a list of statutorily enumerated sources. Last week, the First Circuit added to the growing jurisprudence both...more
7/8/2016
/ Attorney General ,
Customer-Loyalty Programs ,
CVS ,
Exceptions ,
False Claims Act (FCA) ,
Federal Rule 12(b)(6) ,
Fraudulent Inducement ,
Generic Drugs ,
Medicaid ,
Medicare ,
Motion to Dismiss ,
Public Disclosure ,
Relators
In a unanimous decision on June 16, 2016, the Supreme Court charted a middle course between competing interpretations of the scope of False Claims Act. Universal Health Servs., Inc. v. United States ex rel. Escobar, Case No....more
When does a breach of contract amount to fraud? Last week the Second Circuit answered this question and reversed a $1.27 billion judgment against Bank of America and a $1 million judgment against a former executive for their...more
6/1/2016
/ Bank of America ,
Breach of Contract ,
Corporate Counsel ,
Countrywide ,
Department of Justice (DOJ) ,
Duty to Disclose ,
Fannie Mae ,
Financial Institutions ,
FIRREA ,
Fraud ,
Freddie Mac ,
Intent ,
Jury Instructions
The FCA imposes liability on “any person” that makes a false statement in violation of the Act, 31 U.S.C. § 3729(a)(1). Although the Act itself does not define “person,” the Supreme Court has said only that a person cannot...more
Late last month, the Supreme Court issued a unanimous, two-part decision that clarified the meaning of the term “offense” as used in the Wartime Suspension of Limitations Act (“WSLA”), and the term “pending” as used in the...more
In a break with other Circuits, the First Circuit recently reaffirmed its broad definition of a “false statement’ under the False Claims Act. United States ex rel. Escobar v. Universal Health Services, Inc., No. 14-1423 (1st...more
The attorney-client privilege has long protected attorney-client communications made during the course of an internal investigation. Upjohn Co. v. United States, 449 U.S. 383 (1983). Of course, the privilege encourages “full...more