On January 8, the U.S. Court of Appeals for the Fourth Circuit issued a panel decision that established a new and potentially significant False Claims Act (FCA) precedent when it unambiguously embraced—for the first time in Fourth Circuit FCA jurisprudence—the FCA theory of implied certification. The decision, United States ex rel. Badr v. Triple Canopy Inc., represents a significant departure from Fourth Circuit jurisprudence; although several other circuits acknowledged this theory of liability, the Fourth Circuit has hedged for a long time, reluctant to establish case law that could turn the FCA into a breach of contract remedy. The decision introduced new concepts of liability and materiality that are notable for assessing liability and will be used by the government and whistleblowers to expand application of the statute.Triple Canopy Contracted to Provide Security at Iraq AirbaseIn June 2009, the U.S. government awarded a military contract to Triple Canopy to provide … [Read more...] about U.S Court of Appeals False Claims Act Decision: United States ex rel. Badr v. Triple Canopy Inc.
U s court of appeals
On March 9, 2015, the U.S. Court of Appeals for the Ninth Circuit made a number of significant holdings in a case involving a mutual fund advised by Charles Schwab Investment Management, Inc. (CSIM). The following is a summary of the litigation to date, including the recent findings by the Ninth Circuit:In August 2008, Northstar Financial Advisors, Inc., on behalf of its clients, filed a shareholder class action lawsuit against Schwab Investments, a Massachusetts business trust, the board of trustees of Schwab Investments and CSIM, setting forth a number of claims based on allegations that the SchwabTotal Return Bond Fund, a series of Schwab Investments for which CSIM serves as investment adviser, deviated from its fundamental investment policies. Specifically, between September 2007 and February 2009, the Fund is alleged to have: (1) deviated from its fundamental investment objective to track the Lehman Brothers U.S. Aggregate Bond Index, the Fund’s benchmark, by investing in … [Read more...] about U.S. Court of Appeals Reinstates Shareholder Class Action against Schwab Alleging Various Claims Relating to Violation of Fundamental Investment Policies
On March 25, 2015, the U.S. Court of Appeals for the Ninth Circuit issued a decision re instating several claims in the shareholder class action litigation originally brought in August 2008 by Northstar Financial Advisors, Inc., on behalf of its clients, against Schwab Investments, a Massachusetts business trust, the board of trustees of Schwab Investments and Charles Schwab Investment Management, Inc. (CSIM). The plaintiffs’ claims relate to allegations that the Schwab Total Return Bond Fund, a series of Schwab Investments for which CSIM serves as investment adviser, invested in non-agency mortgagebacked securities and collateralized mortgage obligations in violation of its fundamental investment policies between September 2007 and February 2009, causing the fund to significantly underperform its benchmark during that period. Following the issuance of the Ninth Circuit’s opinion in March, the defendants immediately petitioned for a rehearing.On April 28, 2015, in a … [Read more...] about U.S. Court of Appeals Rejects Defendants’ Request for Rehearing in Schwab Case Relating to Violation of Fundamental Investment Policies
On Feb. 16, 2017, the U.S. Court of Appeals for the D.C. Circuit granted the request for en banc review by the Consumer Financial Protection Bureau (CFPB) in the PHH v. CFPB matter. The order vacates the prior judgment by a three-judge panel that the CFPB’s structure was constitutionally infirm, and which remedied that infirmity by making the CFPB’s director removable at the discretion of the president. Accordingly, until the full Court issues its ruling, the CFPB director can only be removed for cause.The Court directed the parties to brief three specific issues, each of which relates to constitutional questions:1) Is the CFPB’s structure as a single-director independent agency consistent with Article II of the Constitution and, if not, is the proper remedy to sever the for-cause provision of the statute?2) May the court appropriately avoid deciding that constitutional question given the panel’s ruling on the statutory issues in this case?3) If … [Read more...] about U.S. Court of Appeals for D.C. Circuit Vacates Panel Decision in PHH v. CFPB, Grants Rehearing En Banc
The U.S. Court of Appeals for the Third Circuit announced that the Federal Trade Commission (FTC) has the authority to scrutinize a business’s data security protocol -- and to file a complaint if the FTC finds that protocol is lacking. In FTC v. Wyndham, the court secured the FTC’s role as cybersecurity watchdog, and placed companies on notice that insufficient privacy protections for consumers could lead to liability. BackgroundIn June, 2012, the FTC filed suit against global hospitality company Wyndham Worldwide Corporation and three of its subsidiaries for alleged data security failures that led to three data breaches at Wyndham hotels in less than two years. The FTC alleged that insufficient data security led to the theft of customer’s personal and credit card information and millions of dollars in fraud losses. As the FTC put it, the complaint was “part of the FTC’s ongoing efforts to make sure that companies live up to the … [Read more...] about New Potential Liability for Data Security: U.S. Court of Appeals for the Third Circuit Announces FTC has Authority to Scrutinize a Business’s Data Security Protocol