News from March 2017
Lawsuit abuse reduction bill, which puts teeth in Rule 11 sanctions, also may be up for House vote
If passed, the Lawsuit Abuse Reduction Act of 2017, or H.R. 720, would change Rule 11 of the Federal Rules of Civil Procedure to remove the 21-day “safe harbor” and to make sanctions mandatory instead of discretionary if a violation is discovered. This would reverse amendments previously made to Rule 11.
Class action fairness bill may, too, be up for House vote
Among the Fairness in Class Action Litigation Act of 2017’s reforms, it requires that classes consist of members with the same type and scope of injury. Also under the proposed legislation, uninjured or non-comparably injured parties can still join class actions, but must do so separately from parties that experienced more extensive injury.
Asbestos ‘double-dipping’ bill could get a vote this week
The FACT Act, or H.R. 906, would increase transparency in the asbestos trust system, in which about 100 companies that were targeted frequently by asbestos lawsuits declared bankruptcy to establish trusts to compensate victims.
Takata to pay $1 billion after allegations of selling defective airbags
WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Feb. 27 that Takata Corporation, a leading supplier of automotive safety equipment based in Tokyo, will pay $1 billion for allegations of selling defective airbags.
CFPB, Dodd-Frank reforms won't happen soon, CFPB expert says
WASHINGTON (Legal Newsline) – Despite legislation to increase the number of Consumer Financial Protection Bureau's directors to five, and support noised by the White House, a consumer financial services attorney active in New York and Philadelphia says not to expect it soon.
Texas SC allows sexual assault lawsuit against Steak N Shake to proceed
AUSTIN, Texas (Legal Newsline) – The Supreme Court of Texas has overturned a decision by a court of appeals, paving the way for a plaintiff to move forward with a common law assault claim against her former employer, Steak N Shake.
EEOC targets Downhole Technology over alleged discrimination, retaliation
HOUSTON (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced a lawsuit Feb. 22 against Downhole Technology, a manufacturer of equipment for hydraulic fracturing (“fracking”), for allegations of retaliating against an employee who reported being harassed by white coworkers because of his race.
EEOC: L-3 Communications discriminated against disabled employee
DALLAS (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced a lawsuit Feb. 23 against L-3 Communications, a defense contractor with facilities in Texas, for allegations of disability discrimination.
Oxford Health to refund thousands of consumers after allegedly improperly denying claims
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Feb. 23 that Oxford Health Plans (NY) and Oxford Health Insurance Inc. (together, “Oxford”), have agreed to provide refunds to hundreds of small group plan members in New York State after allegedly improperly denying coverage of infusion services.
S&B Industry to pay $110,000 to resolve EEOC allegations of disability discrimination
DALLAS (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced Feb. 23 that S&B Industry, a cellphone repair facility in Fort Worth, Texas, will pay $110,000 and provide additional relief after allegations of disability discrimination in denying employment to two hearing-impaired applicants.
S&R Construction, A&S Electrical to pay $420,000 for allegedly violating Massachusetts False Claims Act
BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Feb. 24 that S&R Construction Enterprise, its president Stephen Early, and subcontractor A&S Electrical LLC and its manager Gregory Lane will pay $420,000 after allegations of submitting false and inflated payment requests for construction on a Massachusetts public project.
Wash. AG: Vulnerable adult bill makes it through House
OLYMPIA, Wash. (Legal Newsline) — Washington Attorney General Bob Ferguson recently announced that his bipartisan legislation designed to fight the financial exploitation and neglect of vulnerable adults in the state was advanced by the House of Representatives in a 92-4 vote. The bill next goes to the state Senate.
EEOC settles discrimination suit with Graceworks Lutheran Services
LOUISVILLE, Ky. (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced Feb. 23 that Graceworks Lutheran Services, a Dayton, Ohio-based housing and care service provider, will pay $30,660 after allegations of disability discrimination.
Covenant Transport agrees to $30,000 EEOC penalty after allegations of disability discrimination
CHATTANOOGA, Tenn. (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced Feb. 24 that Covenant Transport Inc., a Tennessee-based trucking company, will pay a $30,000 penalty after allegations of disability discrimination.
Massachusetts settles three cases related to disability-based housing discrimination
BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Feb. 28 three separate settlements related to disability-based housing discrimination against tenants.
Wood Group to pay $9.5 million for alleged negligence at offshore sites in Gulf of Mexico
WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Feb. 23 that Wood Group PSN Inc., a Nevada corporation based in Houston, will pay $9.5 million in two separate cases involving allegations related to conduct in the Gulf of Mexico.
Massachusetts joins amicus brief in Supreme Court case related to debt buyers
BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Feb. 27 that she has joined a multistate amicus brief filed in the U.S. Supreme Court. In the brief, the attorneys general argue that debt buyers that purchase defaulted consumer debt and attempt to collect it should be subject to federal laws related to debt collection.
Ray Lewis speaks at Baltimore re-entry project graduation ceremony
Baltimore City District Judge Nicole Pastore-Klein will oversee the first graduation ceremony for ex-offenders who have found employment through the District Court Re-Entry Project (DCREP).
S.C. Congressman introduces 'Loser Pays' bill targeting Clean Water Act lawsuits
WASHINGTON (Legal Newsline) – A bill from South Carolina Congressman Tim Rice has stirred up controversy as it would amend the Clean Water Act (CWA) and make special interest groups think twice before they take action against infrastructure projects.
Chiropractor, once convicted of fraud, targets Cheesecake Factory with his latest class action
MIAMI (Legal Newsline) – A well-known restaurant chain has been accused of putting customers' private information at risk by a chiropractor who once pleaded guilty to defrauding the government and has recently used a Florida federal court to file several class action lawsuits over receipts and faxes.