Misrepresentation

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Maryland Court of Special Appeals Reaffirms Heightened Standard for Recovering Punitive Damages

On June 1, 2016, the Court of Special Appeals of Maryland issued an opinion in 1st Team Fitness, LLC, et al. v. Francesco Illiano, No. 0136, Sept. Term 2015 (Md. Ct. Spec. App. Jun. 1, 2016) reaffirming Maryland’s heightened...more

Spoliation Claims Are Not a Recreational Vehicle to Be Raised at Any Time in a Case

LaFerrera v. Camping World RV Sales of Birmingham, No. 15-00473 (N.D. Ala. Mar. 21, 2016). Relying on state law, the court rejected a request for spoliation sanctions included as part of a motion for summary judgment...more

Supreme Court Holds That “Actual Fraud” Under Section 523(a)(2)(A) of the Bankruptcy Code May Include Fraudulent Transfers That...

On May 16, 2016, the United States Supreme Court in Husky International Electronics v. Ritz held that the phrase “actual fraud” under section 523(a)(2)(A) of the Bankruptcy Code may include fraudulent transfer schemes that...more

W.D. Penn. Dismisses Most Claims in Hernia Mesh Case

You’ve probably heard James Carville’s description of Pennsylvania as Pittsburgh on one end, Philadelphia on the other, and Alabama in-between. Let’s put aside that last bit, which manages simultaneously to insult both...more

New Jersey Becomes Third Recent State Court to Refuse To Enforce Delegation Clause

In a decision that appears intentionally controversial, the Supreme Court of New Jersey yesterday refused to enforce the delegation clause in a for-profit college’s enrollment agreement in a 5-1 opinion. Morgan v. Sanford...more

Canadian Court Holds That Evidentiary Requirement For Leave To File Securities Class Action Is “Not A Low Bar”

In January of 2016, this blog commented on the Supreme Court of Canada’s decision in the seminal case of Canadian Imperial Bank of Commerce v. Green. There, the Court held that a prospective plaintiff must move for leave to...more

Deceptive Marketing Class Actions: Trump University

The most talked about class action in Canada of late is not a Canadian class action at all, but rather one commenced in a U.S. District Court in the Southern District of California. Low v. Trump University, already certified...more

Delaware Supreme Court Weighs In On “Direct v. Derivative” Question Certified By Second Circuit

In Citigroup Inc. v. AHW Investment Partnership, No. 641, 2015 (Del. May 24, 2016), the Delaware Supreme Court answered a certified question of law presented by the Second Circuit Court of Appeals allowing shareholders...more

The 2015 FTC Policy Statement: An Advertisement Can Be Deceptive Based On Its Formatting

Starting a few years ago, the FTC began increasing its efforts to address online disclosures in new media. For example, in 2013, the FTC issued .com Disclosures: How To Make Effective Disclosures in Digital Advertising, which...more

Appellate Court Explains Difference Between Divorce Settlement Agreement And All Other Contracts

In an April 2016 non-precedential Superior Court Appellate decision, Doyle v. Doyle, the court found that a husband and wife had entered into a valid divorce settlement agreement despite the wife’s argument that the agreement...more

Inside the Courts: An Update From Skadden Securities Litigators - May 2016 / Volume 8 / Issue 2

We are pleased to present Inside the Courts (Volume 8, Issue 2), Skadden’s securities litigation newsletter. This quarter’s issue includes summaries and associated court opinions of selected cases principally decided between...more

It’s Good to be the King: Nullus Tempus Allows TN Fund’s Suit on Decade-Old RMBS Buys

Chancellor Carol McCoy allowed a Tennessee state retirement fund’s securities suit over decades-old RMBS purchases to continue last week, holding that time doesn’t run against the king – even on statutes of repose....more

The United States Supreme Court Expands Discharge Exception to Include Fraudulent Transfers

Bankruptcy Code Section 523(a)(2)(A) provides that a debtor may not receive a discharge for a debt for "money, property, services… to the extent obtained by: (A) false pretenses, a false representation or actual fraud… ." In...more

Designs law reform in Australia: Prior art base, Grace periods, Screen displays and other changes

May 2016 - The Australian Government has responded to a series of recommendations for reform of Industrial Designs Law by the Advisory Council in Intellectual Property (ACIP). ACIP made 23 recommendations in its final report,...more

U.S. Supreme Court Expands Types of Fraud Which May Bar a Bankruptcy Discharge

The Supreme Court has rewarded creditors and their attorneys with a decision expanding the kinds of “actual fraud” which will prevent the discharge of a bankruptcy debtor. Some lower courts had held that to prevent a...more

This Week In Securities Litigation

In a holiday shortened week the Commission brought actions centered on: a transfer agent and one of its owners who conducted a fraudulent offering for another company and then sold unregistered shares into the market; a...more

Professional Liability Policy Provides Coverage for Innocent Co-Insureds

In Evanston Ins. Co. v. Agape Sr. Primary Care, Inc., No. 14-2268, 2016 WL 192748 (4th Cir. Jan. 15, 2016), the Fourth Circuit affirmed the South Carolina District Court’s finding that a professional liability policy provided...more

Supreme Court: Fraudulent Conveyance Scheme Renders Debt Nondischargeable in Bankruptcy

On May 16, 2016, the U.S. Supreme Court issued its opinion in Husky International Electronic, Inc. v. Ritz. The opinion is a favorable development for creditors because it expands the types of fraudulent conduct that can...more

Advertising Law - May 2016 #3

Fake Subscription Notices, Real FTC Lawsuit - Fake subscription notices are the subject of a new lawsuit filed by the Federal Trade Commission in an Oregon federal court. The defendants, a web of dozens of...more

Theranos, the SEC’s Pursuit of Unicorns, and Taking the Reins of Internal Controls

In the wake of a host of negative developments, Theranos Inc. is reportedly under investigation by the Department of Justice and the Securities and Exchange Commission. The SEC and DOJ inquiries are likely to focus on...more

When is Rescission Based Upon Material Misrepresentations The Proper Course of Action?

Carriers rely on application representations regarding the existence of potential claims. Sometimes, the carrier learns after the fact that an applicant may not have reported all known potential claims. What can/should the...more

TN Securities Div’n Encourages Financial Fraud Investigations

The Securities Division of the Tennessee Department of Commerce and Insurance issued a May 2 press release encouraging consumers to report financial-services misconduct to its Financial Services Investigations Unit....more

Basic-Supplemental Life Insurance Plan Pricing Structure Upheld in ERISA Class Action

An employee benefit plan that includes an alleged subsidization component for its basic and supplemental options is neither prohibited by the Employee Retirement Income Security Act of 1974 (ERISA) nor a violation of the plan...more

Some Case-by-Case Comment K Mixed with Some Insufficient Pleading of Fraud

In Hawaii, from whence today’s case comes, tourists are encouraged to try poi, mashed up taro root, which looks like purple wallpaper paste and tastes like, well, purple wallpaper paste. The term is also used as a friendly...more

Education malpractice and student litigation: How to assess claims

This post is the second in our three-part series on recent legal authority addressing the educational malpractice doctrine. We are examining this authority through the lens of “lessons learned,” and discussing methods for...more

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