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Policyholder Takeaways From Portal

In a solid victory for policyholders, the Fourth Circuit upheld coverage last week for a potential data breach incident involving confidential medical records. The case is The Travelers Indemnity Co. of America v. Portal...more

California Appeals Court Provides Guidance on the Use of Electronic Signatures by Employees

In many companies, new employees sign key documents and policies—including arbitration agreements—with the use of electronic signatures. There has been a growing trend in litigation brought by former employees to challenge...more

7th Circuit Revives P.F. Chang’s Data Breach Class Action Suit

Last week, the Seventh Circuit revived a data breach class action against P.F. Chang’s restaurant in an important opinion that continues a plaintiff-friendly trend that began with the court’s opinion in the Neiman Marcus case...more

TPPs Fail to Put Their Money Where Their (Litigation) Mouth Is and Lose

In third party payor litigation over prescription medical products, we have often marveled at the causation arguments that plaintiffs have offered and the willingness of some courts to accept collective proof over what really...more

Medical Software Company Wins $940 Million in Trade Secret Case

A jury recently awarded Epic Systems Corporation (“Epic”), a medical software company, $940 million in damages in a case against Tata Consultancy Services Limited (“Tata”) involving theft of Epic’s trade secrets and...more

Covenant Not to Sue Insufficient to Warrant Dismissal of Counterclaims Where Covenant Contained Reservation of Rights

The plaintiff filed a motion to dismiss the defendants' patent invalidity counterclaims for lack of subject matter jurisdiction pursuant to Fed.R.Civ.P. Rule 12(b)(1) because the plaintiff withdrew its patent infringement...more

“But I Only Wore It Once!”: The Rising Cost of Return Fraud

Your customers may be thinking, "What’s the harm in wearing something once and returning it?" But return fraud can have a big impact on a retailer's bottom line. The National Retail Federation estimates that return fraud will...more

Fourth Circuit Finds That Traditional CGL Policies May Continue to Provide Coverage for Cyberliability Claims

A federal U.S. Court of Appeals has confirmed that comprehensive general liability (CGL) and other traditional policies may yet be a source of liability insurance coverage for cyberliabilities. Although a dedicated...more

Hanging Around: Fourth Circuit Confirms the Coverage for Data Breach Can Still Be Found in Traditional Liability Policies

With today’s increased focus on data breaches and related cyber liability exposure, the insurance market continues to develop policies tailored to this unique risk. Insurers are also excluding cyber risks in many traditional...more

Fourth Circuit Expands Cyber Coverage under Commercial General Liability Policies

The United States Court of Appeals for the Fourth Circuit recently affirmed a decision by the United States District Court for the Eastern District of Virginia, Alexandria Division (District Court), finding that Travelers...more

Court Upholds Coverage Under General Liability Policy for Claim Alleging Failure to Protect Data

In an encouraging development for insureds, the United States Court of Appeals for the Fourth Circuit held that a health care company’s general liability insurer was required to defend the company against claims stemming from...more

Big Win For Policyholders in Fourth Circuit Finding Duty to Defend Under General Liability Policy for Data Breach!

This week, the Fourth Circuit affirmed the lower court’s ruling of summary judgment in favor of the policyholder Portal Healthcare, finding that Travelers has a duty to defend it under a General Liability policy for a...more

Fourth Circuit Finds Coverage for Information Breach under CGL Policy

For policyholders and attorneys that have feared the lack of coverage for data breaches under traditional policies (CGL, property), a recent ruling suggest that it is not time to write off those policies as a potential source...more

Trustwave Case Highlights Cyber-Risk to Professional Service Providers

In a case that we believe reflects a real future trend in the cyber-risk industry, Las Vegas casino operator Affinity Gaming (“Affinity”) is suing Chicago-based IT security firm Trustwave Holdings, Inc. (“Trustwave”) for...more

Stent Contract Collapses Standing Argument - TriReme Med., LLC v. AngioScore, Inc.

Addressing the issue of when patent rights are assigned under a contract, the US Court of Appeals for the Federal Circuit overturned the district court’s finding that a prospective inventor had surrendered his rights to an...more

Policyholder’s Bad Faith Claim Against Cyber-Insurer Survives Summary Judgment

In follow up on an older entry, the Court in Travelers Prop. Cas. Co. of Am. V. Fed. Recovery Servs., recently issued another order granting partial summary judgment in favor of a cyber-insurer, but also allowed the bad faith...more

One Year Later: Omnicare’s Effect on Opinion Liability

One year ago today, in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, 135 S.Ct. 1318 (2015), the Supreme Court created a new test for opinion liability under Section 11 of the Securities Act,...more

Think Mink, part 2: Florida Federal Court Slams Door on Parallel Claims

Last November we blogged about "specialized" preemption issues in several cases, including Mink v. Smith & Nephew, Inc., 2015 WL 7356285 (S.D. Fla. Nov. 19, 1015). The plaintiff in Mink claimed physical injuries from a...more

US District Court in Southern California Rules No Coverage for HIPAA Investigation

The District Court for the District of Southern California was asked to reconsider its prior decision issued on motions for summary judgment in coverage litigation between Millenium Labs, Inc. (“Millenium”), and its insurer,...more

Chapter 93A's Increasing Role in IP Litigation in Massachusetts

Chapter 93A, with its low and vague standards of liability and powerful remedies of multiple damages and attorneys, is playing an increasingly central role in intellectual property disputes in Massachusetts. Please see...more

Second Circuit Applies Omnicare to Affirm Dismissal of Securities Fraud Actions

On March 4, 2016, the Second Circuit affirmed the dismissal of two related securities actions against Sanofi Pharmaceuticals, its predecessor Genzyme Corporation, and three company executives (collectively, “Sanofi”). In...more

District Court Grants Motion for Summary Judgment on Laches Defense Where Defendant Could Not Establish Prejudice from Plaintiff's...

The court explained the facts as follows: The defendant, CrestaTech, was founded by Mihai Murgulescu and George Haber in 2005. Its initial products included a receiver for satellite radio and a television platform. CrestaTech...more

Home Depot agrees to settle data breach class action suit for at least $19.5 million and up to $28 million including attorneys’...

Home Depot announced on March 7, 2016, that it is agreeing to settle claims against it for the massive data breach that occurred in 2014, affecting up to 56 million debit and credit card holders for at least $19.5 million,...more

The First Circuit Agrees that Non-Cash Reverse Payments Are Subject to Antitrust Scrutiny. Does the Loestrin Decision Point to...

Recently, the First Circuit became the second federal appellate court interpreting the Supreme Court's landmark decision in FTC v. Actavis, Inc. to hold that non-cash "reverse payments" between pioneer and generic...more

Lingering in Lexmark's wake, uncertainty about the limits of patent exhaustion

According to ten judges of the Federal Circuit, a patent owner’s right to sue for infringement in the United States is not exhausted by sales of products abroad or by sales subject to valid post-sale contractual restrictions...more

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