Drafting 502(d) Orders to Provide Maximum Non-Waiver Protection

Counsel drafting an order under Federal Rule of Evidence 502(d) or an agreement under Rule 502(e) generally expect to supplant the uncertainty of the privilege waiver analysis under Rule 502(b) and assure near-absolute protection against inadvertent waiver. But two recent decisions frustrate such expectations and offer lessons on how to better assure strong anti-waiver protection. Absolute Activist Value Master Fund Ltd. v. Devine, 262 F. Supp. 3d 1312 (M.D. Fla. 2017); irth Solutions, LLC v. Windstream Communications, LLC, 2018 WL 575911 (S.D. Ohio 2018) (appeal pending).

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First-Ever Criminal Indictments for Failure to Report a Potential Hazard to the U.S. Consumer Product Safety Commission

Two individual former corporate officers of Chinese appliance manufacturer Gree Electric Appliances have been criminally indicted in the first-ever criminal prosecution for failure to report under the Consumer Product Safety Act (CPSA).

The CPSA grants the U.S. Consumer Product Safety Commission (CPSC) the authority to pursue both civil and criminal penalties for violations of the statutes it enforces. As summarized in a Department of Justice press release, Section 15 of “[t]he Consumer Product Safety Act requires manufacturers, importers, and distributors of consumer products to report ‘immediately’ to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies.”

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Fraudulent Joinder Motion Wins Out in Eastern District of Pennsylvania

A recent decision by the Eastern District of Pennsylvania serves as a reminder that attempts to defeat federal diversity jurisdiction via questionable joinder of parties is likely to fail in the Third Circuit.

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DOUBLE SNAP! Second Circuit follows Third Circuit to Endorse Snap Removal

Last fall we wrote about the Third Circuit’s opinion endorsing the snap removals, making it the first circuit opinion in the country to approve such practice. This week, the United States Court of Appeals for the Second Circuit followed the Third Circuit’s lead and affirmed snap removals.

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Reliance Remains a High Hurdle in Establishing Third-Party Payor Claims

Third-party payor (TPP) claims against pharmaceutical companies are nothing new. The arguments are common – TPP insurers claim financial injury arising out of payments made for alleged medically unnecessary prescriptions written for numerous insureds/ beneficiaries. In some instances, the TPP plaintiffs point to evidence or allegations of off-label promotional activity to support the claims of lack of medical necessity; and sometimes the TPP plaintiffs attempt to bolster their allegations of “medically unnecessary” prescriptions by advancing a variation of the garden variety failure-to-warn narrative:

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Parties Face New Discovery Obligations Under Proposed Rule 30(B)(6) Amendment

A proposed amendment to Federal Rule of Civil Procedure 30(b)(6) – the rule governing deposition notices directed to organizations – seeks to impose a new meet-and-confer requirement on parties.

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