News & Analysis as of

Damages Fraud

Carlton Fields

Iowa Supreme Court Reaffirms Rule That Faulty Workmanship Is Not an Occurrence, Leaving Question of Statutory Fraud for Another...

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In Dostart v. Columbia Insurance Group, the Iowa Supreme Court reaffirmed the rule — in Iowa, and many other jurisdictions — that faulty workmanship by a contractor does not constitute an “occurrence” as defined in a standard...more

Farrell Fritz, P.C.

The Consequences of Deception: Defendant Hit With $4.5 Million Judgment After 12-Year “Wild Goose Chase Based on a Lie”

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“Down the ridiculous rabbit hole,” “magical math,” “smoke and mirrors,” “sixteen-year charade.” That’s how the plaintiff’s post-trial brief in Becker v Perla described the defendant’s reverse-field disavowal of his sworn...more

Troutman Pepper Locke

Illinois Passes Bill Prohibiting Collection of Coerced Debt

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On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a...more

Kohrman Jackson & Krantz LLP

Ohio Court Holds Non-Disclosure of Sewer Assessment Fraudulent in Real Estate Sale

A recent Eleventh District Ohio Court of Appeals decision (Bockelman v. Griffin) reminds us that: 1) fraudulent concealment/non-disclosure is an exception to the general real estate principle of “Caveat Emptor” (Let the Buyer...more

Allen Matkins

Complaint Need Not Allege Fraud, Misrepresentation, Or Deceit To Be "Based Upon" A Corporation’s “Fraud, Misrepresentation or...

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In 2002, the California Legislature created the Victims of Corporate Fraud Compensation Fund as part of the Corporate Disclosure Act. There are a number of conditions that must be met to receive a payout from the fund.  One...more

Bradley Arant Boult Cummings LLP

Court Affirms $1.6B Judgment in Bahamas Mega Project Dispute

A New York appeals court has affirmed a $1.6 billion award for the developer of a Bahamas mega project against various subsidiaries of China State Construction Engineering Corporation, the world’s largest construction company...more

Pillsbury Winthrop Shaw Pittman LLP

Supreme Court Issues New RICO Decision

The Supreme Court’s decision clarifies the civil damages provision of the Racketeer Influenced and Corrupt Organizations (RICO) Act. On April 2, 2025, the Supreme Court issued a decision in Medical Marijuana, Inc. v. Horn,...more

Troutman Pepper Locke

Florida AG Settles Alleged Moving Brokerage Scheme, Banning Defendants and Securing $4M in Judgments

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On March 21, Florida Attorney General (AG) James Uthmeier’s Consumer Protection Division announced the resolution of ongoing litigation against a network of moving brokerage companies accused of misleading consumers. These...more

Hendershot Cowart P.C.

Responding to Suspected Embezzlement, Misappropriation: A Texas Business Owner's Guide

As a Texas business owner, discovering that a partner, employee, or manager may be embezzling funds can be devastating. Left unaddressed, financial misappropriation can threaten your company's stability, compromise...more

Freiberger Haber LLP

Fraud Claims Found to Be Duplicative of Contract Claim Because of An Overlap in Facts and Circumstances and Damages

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In Crawford v. Integrated Asset Mgt. Servs., LLC, 2025 N.Y. Slip Op. 01352 (2d Dept. Mar. 12, 2025) (here), the Appellate Division, Second Department reversed the denial of the defendants’ motion to dismiss the plaintiffs’...more

Zelle  LLP

Court Enforces Pleading Standards and Dismisses Bad Faith Allegations

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In Fif Engineering, LLC v. Pacific Employers Ins. Co., No. 24-665, 2025 WL 593384 (S.D. Tex. Feb. 24, 2025), a United States District Court for the Southern District of Texas, Houston Division, granted an insurer’s motion to...more

Gray Reed

Scribner’s Error: A Cautionary Tale of Oil & Gas Fraud

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DALF Energy, LLC v. GS Oilfield Services addresses a fiduciary’s deceptive actions in oil and gas transactions. The Fifth Circuit held: self-dealing may constitute a breach of fiduciary duty even when the principal is...more

Sheppard Mullin Richter & Hampton LLP

SuperValu Wins False Claims Act Case with a “No Harm, No Foul” Jury Verdict

On March 5, 2025, SuperValu, Inc. (SuperValu), a grocery store chain that operates in-store pharmacies, was cleared of liability by a Central District of Illinois federal jury—finally quashing whistleblower claims that the...more

Mayer Brown

The Misrepresentation of Moths – Lessons from a Yarn

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It is the stuff of nightmares. Dr Yevhen Hunyak, described by the Judge in the case as "a cautious person", and Iya Patarkatsishivili were careful to visit their prospective home more than half a dozen times between Spring...more

Davis Wright Tremaine LLP

Supreme Court Allows Treble-Damage False Claims Actions To Proceed Against E-Rate Service Providers

Broadband and telecommunications service providers should redouble efforts to comply with the rules of the FCC's "E-Rate" program that subsidizes service to schools and libraries as a result of a Supreme Court ruling that...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

IR Global

Divorce ‘not on cards’ for Sean Dunne and Gayle Killilea

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The international fraud case Coan et al. v. Dunne et al. emerged when Sean Dunne transferred hundreds of millions of euros to his ex-wife, Gayle Killilea, characterizing these transfers as gifts motivated by love and...more

Snell & Wilmer

Recent Colorado Appeals Court Decision Provides Further Guidance on the Colorado Economic Loss Rule Doctrine

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In the recent decision of Veolia Water Tech., Inc. v. Antero Treatment LLC, 2024 COA 126 (Colo. App. 2024), the Colorado Court of Appeals addressed the “murky” application of the economic loss rule to the intentional tort of...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

Bradley Arant Boult Cummings LLP

False Claims Act: 2024 Year in Review

Bradley’s Government Enforcement and Investigations Practice Group is pleased to present the False Claims Act: 2024 Year in Review, our annual review of significant False Claims Act (FCA) cases, developments and trends. ...more

Freiberger Haber LLP

Affidavit Fails To Establish That A Material Undisputed Fact Was Not A Fact At All, Says The First Department

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In Katsorhis v. 718 W. Beech St, LLC, 2025 N.Y. Slip Op. 00211 (1st Dept. Jan. 15, 2025) (here), the Appellate Division, Second Department considered a fraud claim that the lower court sustained on the grounds that defendant...more

Miles Mediation & Arbitration

Mediating False Claims Act Cases: Issues for Attorneys to Keep in Mind

When I started practicing law in 1981, I focused on labor and employment law. My practice involved management and union matters such as unfair labor practice charges and breaches of collective bargaining agreements. As a...more

Freiberger Haber LLP

Summary Judgment Granted Because Reliance on Defendants’ Alleged Misrepresentations Was Not Justifiable

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The justifiable reliance element has been described as a “fundamental precept” and a “venerable rule”. The requirement is one of the five elements of a fraud cause of action: (1) a misrepresentation or a material omission of...more

Fisher Phillips

SCOTUS Predictions: Cannabis Product Makers Won’t Face Triple Damages Under RICO Law for Driver’s Failed Drug Test

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A commercial truck driver who lost his job after failing a drug test wants to hold cannabis product makers liable under a federal racketeering law – and the case has worked itself all the way up to the U.S. Supreme Court. The...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

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