News & Analysis as of

Liability Fraud

Woods Rogers

Depository Institution Not Liable in ACH Fraud Case

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On March 26, 2025, the U.S. Court of Appeals for the Fourth Circuit issued an important decision addressing a depository institution’s liability for wire transfer losses resulting from a business email compromise scam....more

Katten Muchin Rosenman LLP

The More You Know Can Hurt You: Court Rules Financial Institutions Need 'Actual Knowledge' of Mismatches for ACH Scam Liability

On March 26, the US Court of Appeals for the Fourth Circuit issued a decision that has important ramifications for banks and credit unions that process millions of Automated Clearing House (ACH) and Electronic Funds Transfer...more

Holland & Knight LLP

Fourth Circuit Limits Beneficiary Bank Liability in BEC Schemes, Requires Actual Knowledge

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Business email compromise (BEC) fraud, driven by technology and increasing sophistication by criminal organizations, has become a major issue for both consumers and financial institutions. According to a September 2024...more

Pierce Atwood LLP

Opioids and Common Law Liability for Indirect Economic Harm

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Earlier this month, the Law Court weighed in on a hot-button legal issue—the potential liability of opioid manufacturers for the costs of the drug epidemic. In Eastern Maine Medical Center v. Walgreen Company, the Law Court...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

Hidden Dangers Lurking in Corporate Integrity Agreements

When I litigated False Claims Act (FCA) cases at the U.S. Department of Justice (DOJ), it was common practice for settlements to require Corporate Integrity Agreements (CIAs) setting forth ongoing duties and responsibilities...more

Patton Sullivan Brodehl LLP

LLC Lacks Standing to Appeal Judgment Against its “Alter Ego” Owner

Many prior posts have addressed the “alter ego” doctrine, under which a business entity’s owner can be held personally liable for the entity’s debts. This is also known as “piercing the corporate veil.”...more

Wiley Rein LLP

New Jersey Appellate Court Affirms Rescission of Policies Based on Law Firm’s Misrepresentation in Applications

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In a win for Wiley’s client, a New Jersey appellate court, applying New Jersey law, affirmed a trial court’s decision rescinding four lawyer’s professional liability policies because of material misrepresentations made in the...more

Hicks Johnson

SCOTX Ruling Confirms Individual Liability for Corporate Owners Who Commit Torts

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In Texas, as most other states, it is long settled that corporate agents are personally liable for their own tortious or fraudulent conduct—even if the conduct was done in their capacity as a corporate agent. Section 21.223...more

Sunstein LLP

Hospital Websites Transfer Browser Data to Google and Facebook, But Escape Liability Under Wiretap Statute

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To date, 19 states have adopted comprehensive data privacy laws, but Massachusetts is not among them. Thus, Massachusetts residents whose web browsing activities result in an unexpected loss of privacy sometimes base their...more

Proskauer Rose LLP

Three Point Shot - November 2024

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Ninth Circuit Does Flip Turn, Reversing Antitrust Case Against World Aquatics - In a decision that is making waves through the world of competitive swimming, the Ninth Circuit reversed a California district court’s grant...more

IR Global

The human touch - AI’s role in commerce - The Visionaries

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The Productivity Paradox: Does more technology mean less growth? Is there scope to use AI in commercial contracts? Will it save time, or ultimately cost more time in review and pose greater risk?...more

ArentFox Schiff

Investigations Newsletter: Connecticut State Court Finds Defunct Pharmacy Liable for $39.2 Million in Damages and Penalties

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Connecticut State Court Finds Defunct Pharmacy Liable for $39.2 Million in Damages and Penalties - A Connecticut Superior Court judge found Assured Rx, LLC, a Florida-based pharmacy, liable for violating the Connecticut...more

Freiberger Haber LLP

Thorny Issues Concerning the Statute of Limitations for Declaratory Relief and Breach of Fiduciary Duty

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Statutes of limitations limit the time within which a defendant can be held liable for any type of alleged wrongdoing. Plaintiffs who do not pursue their rights within the limitations period will find the courthouse doors...more

Hinch Newman LLP

The FTC and Multi-Party Liability

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The FTC often initiates enforcement actions seeking to hold companies responsible for consumer injury caused by others or in which they directly participated in the misconduct. FTC CID and investigation attorney previously...more

Goodwin

French Jurisdictions Rulings on the Liability of Digital Asset Service Providers in Managing Clients’ Crypto-assets

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In the past four months, the French judicial court has provided significant clarifications regarding the liability of digital asset service providers (DASPs) in managing their clients’ crypto-assets through three key rulings....more

Farrell Fritz, P.C.

Bookkeeper Liability? It’s a Real Thing

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Accountants are professionals. They carry malpractice insurance. They are potential deep pockets. For these reasons, accountants sometimes find themselves defending against liability claims in business divorce lawsuits. The...more

Conn Kavanaugh

“Hot” Tips for Internal Investigations

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An increased government interest in rooting out corporate fraud, coupled with new theories of corporate and individual liability, have made state and federal investigations almost a way of life for large and small companies...more

Smith Debnam Narron Drake Saintsing & Myers,...

Effective Strategies for Handling Construction Defect Claims

In 2022, North Carolina was bustling with new construction projects, ranking as the sixth highest state for newly built homes. With so much building going on, construction defect claims are bound to pop up. These claims can...more

Arnall Golden Gregory LLP

Business Email Compromise Fraud: Should the Party Best Positioned to Avoid the Fraud Bear the Loss?

Business email compromise (“BEC”) occurs when a payee’s business email account is compromised or impersonated. The threat actor, posing as the payee or its representative (e.g., the head of the accounting department), sends...more

Cadwalader, Wickersham & Taft LLP

Secondary Fraud Claims Against a Non-Party to M&A Deal Allowed to Procced Under Delaware Law

On June 27, 2024, in Matrix Parent, Inc., et al. v. Audax Management Company, et al., the Delaware Superior Court denied Audax’s motion to dismiss, allowing to proceed H.I.G. Capital’s fraud claims in connection with its...more

Jackson Walker

Texas Supreme Court Reaffirms Personal Liability for Corporate Officers and Directors in Fraud Cases

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On June 28, 2024, the Supreme Court of Texas issued a ruling clarifying the personal liability of individuals acting in a corporate capacity. The case, Keyes v. Weller, addressed whether individuals can be held personally...more

Foley & Lardner LLP

US District Court in Puerto Rico Rejects Distributor’s Efforts to Hold Wholesalers Liable for a Terminated Agreement Under Puerto...

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Share on Twitter Print Share by Email Share Back to top In Meta Med, LLC, et al., v. Insulet Corporation, et al., Lyvette Mercado Velez, a dietitian, entered into a distribution agreement with Insulet Corporation, a medical...more

Arnall Golden Gregory LLP

Business Account Takeover Fraud: Pursuing the Platform Is Rarely the Answer

Business account takeover (“ATO”) fraud occurs where a threat actor gains access to a business account on a payments platform (e.g., a payroll or accounts payable tool) or fraudulently creates such an account and engages in...more

Hinch Newman LLP

When a Company Can be Liable to the FTC for Participating with Another Company in Misconduct

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The FTC has initiated a number of investigations and enforcement actions in recent years holding companies responsible for consumer injury caused by others or in which they directly participated in the misconduct. For...more

King & Spalding

Sixth Circuit Holds that Bank Settlement Payment to Resolve Fraudulent Transfer Liability Is Insurable Loss Under Ohio Law and...

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On February 1, 2024, the U.S. Court of Appeals for the Sixth Circuit, in an unpublished opinion, held that a bank’s professional liability insurance includes coverage for a $32 million settlement payment the bank made to...more

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