Article Abstract:
The US Court of Appeals for the 2d Circuit may have added a new element to the fraudulent-inducement defense in its ruling in Lazard Freres & Co. v. Protective Life Insurance Co. The court may have done so by indicating that reliance on an oral representation regarding the sale of bank debt by one sophisticated participant in the bank debt market can be unreasonable as a matter of law even without a condition precedent. Under Lazard, transactional lawyers for buyers should stress in the preliminary agreement that there are no contractual obligations until the complete contract is agreed to and executed.
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Article Abstract:
Both the federal government and the states have in the mid-1990s vastly expanded health care fraud enforcement, and more advanced investigative methodologies and resources have also increased government intervention. Attorney General Janet Reno in 1993 made health care fraud the No. 2 federal law enforcement priority, and soon thereafter the Department of Justice's National Healthcare Fraud Working Group was established. Most of the states have Medicaid fraud control units, and these have been leaders in health care fraud prevention since 1997.
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Article Abstract:
The United States Court of Appeals for the 3d Circuit will decide in Klein v. Boyd if the Supreme Court's 1994 ruling in Central Bank v. First Interstate, eliminating aider-and-abettor liability for securities fraud, nonetheless permits holding a law firm primarily liable for a client's misstatements in SEC documents. Amicus briefs filed by the SEC and the Department of Justice argue that neither Central Bank nor RICO should stand in the way of such liability.
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