News & Analysis as of

Materiality Summary Judgment

Troutman Pepper Locke

First Circuit Questions Materiality in SEC's Case Against Commonwealth Equity Services

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On April 1, the U.S. Court of Appeals for the First Circuit vacated a summary judgment ruling in favor of the Securities and Exchange Commission (SEC) against Commonwealth Equity Services, LLC, also known as Commonwealth...more

Morgan Lewis

First Circuit Vacates $93 Million Judgment for SEC, Including $65 Million Disgorgement Award

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On April 1, the US Circuit Court of Appeals for the First Circuit vacated a $93 million judgment for the SEC against Commonwealth Financial, including a $65 million disgorgement award. The three-judge panel concluded that the...more

Ropes & Gray LLP

First Circuit Vacates Summary Judgment Award and $93 Million Order in Revenue Sharing Case

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On April 1, 2025, the United States Court of Appeals for the First Circuit overturned a $93 million judgment issued against Commonwealth Financial Network (“Commonwealth”) nearly one year ago in a case by the Securities and...more

Carlton Fields

New York Federal Court Enforces Exclusion Barring Coverage for Claims Based on Any Misrepresentation, Regardless of Perceived...

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When state law provides that an insurance contract can be rescinded for misrepresentations only if they are “material,” can an insurer contract around that rule by adding an exclusion for all claims based on any...more

Farrell Fritz, P.C.

A Cautious Reminder When Responding to a Rule 19-a Statement of Material Facts on a Motion for Summary Judgment

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Although discretionary, it is well-known among commercial practitioners that the Commercial Division justices generally like a Rule 19-a statement of material facts included with the submission of a summary judgment motion....more

Rivkin Radler LLP

New York Insurance Coverage Law Update - March 27, 2024

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Plaintiff loaned money to his employee to purchase a home, and the loan was secured by a mortgage. When the employee failed to pay the loan and to insure the home, Plaintiff obtained a landlord package policy from Erie and...more

ArentFox Schiff

Compliance Officers Beware: the SEC is Looking to Expand the Reach of Insider Trading

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On November 20, 2023, the Northern District of California denied summary judgment for the defendant in SEC v. Panuwat, an enforcement action being brought under a novel theory of insider trading law that is being referred to...more

Lewitt Hackman

Franchisor 101: A Tasty Appeal

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The Eleventh Circuit Court of Appeals reversed a district court’s summary judgement order, granting a chocolate shop franchisor’s breach of contract and unfair competition claims. The appellate court concluded there were...more

Bass, Berry & Sims PLC

Eleventh Circuit Broadens Materiality Analysis for Some Cases

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How should a court evaluate the FCA’s materiality requirement when the government’s ability to deny claims is constrained? According to a recent decision from the Eleventh Circuit, the court should “broadly” consider the...more

King & Spalding

District Court Grants Summary Judgment to Ford in Case Involving Allegedly Defective Sunroofs, Holding that the Low Incident Rate...

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On February 11, 2020, the U.S. District Court for the Western District of Washington granted Ford’s motion for summary judgment on the plaintiff’s fraud and consumer protection claims, concluding that the plaintiff had not...more

Jones Day

Tenth Circuit Rejects False Claims Act Theory About Falsified Records on Materiality Grounds

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The Situation: The Supreme Court's ruling in Universal Health Services, Inc. v. U.S. ex rel. Escobar, 136 S. Ct. 1989 (2016), opened the door to more materiality defenses under the False Claims Act ("FCA"), but without making...more

Proskauer - Law and the Workplace

Massachusetts SJC Holds Employers’ Denials of Lateral Transfers May Be Adverse Actions in Discrimination Cases

Massachusetts employers’ decision-making processes with regards to lateral, internal employee transfers are now subject to possible state law discrimination claims. On January 29, 2019, the SJC issued its decision in Yee v....more

Bass, Berry & Sims PLC

No Consensus on Materiality: Courts Continue to Grapple with Escobar’s Key Holdings

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Since the 2016 Supreme Court decision in Universal Services Inc. v. United States ex rel. Escobar, courts have wrestled with exactly how to apply the unanimous decision. This post highlights developments across the country in...more

Robinson+Cole Health Law Diagnosis

Ninth Circuit Issues Long-Awaited Interpretation of Escobar Two-Part Test

In late August, the U.S. Court of Appeals for the Ninth Circuit issued a long-awaited decision in U.S. ex rel. Rose v. Stephens Institute that interprets key aspects of the implied false certification theory of False Claims...more

Arnall Golden Gregory LLP

A Split Decision By The Ninth Circuit Highlights The Courts’ Continuing Uncertainty Over The Proper Standard For “Materiality” In...

In a split decision announced on August 24, 2018, the Ninth Circuit added another layer to the ongoing debate about “materiality” under the False Claims Act (FCA) in the wake of the Supreme Court’s decision in Universal...more

Bass, Berry & Sims PLC

Chris Lazarini Analyzes Link Between Alleged Fraud and Economic Harm to Shareholders

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Bass, Berry & Sims attorney Chris Lazarini analyzed a case in which a group of shareholders claimed misleading statements in a press release caused them to sell stock early and lose money in a subsequent bidding war. The...more

Sheppard Mullin Richter & Hampton LLP

Escobar’s Demanding Materiality Standard Nixes $350 Million Verdict Against Florida Nursing Facility

A Florida federal court threw out a $350 million jury verdict against a nursing facility, citing the Supreme Court’s landmark decision in Universal Health Services, Inc. v. United States ex rel. Escobar. The court explained...more

McGuireWoods LLP

On Remand, the Seventh Circuit Applies Escobar’s Materiality Standard

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At the end of last month, the Seventh Circuit issued its opinion on remand in United States v. Sanford-Brown, Ltd., No. 14-2506, — F.3d —-, 2016 WL 6205746 (7th Cir. Oct. 24, 2016) (“Sanford II”). The court once again...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Escobar and the Implied Certification Theory: Initial Cases Raise the Bar on Materiality in False Claims Act Litigation"

On June 16, 2016, the U.S. Supreme Court in Universal Health Services, Inc. v. United States ex rel. Escobar1 (Escobar) unanimously upheld the implied certification theory of False Claims Act (FCA) liability and strengthened...more

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