Legal Insight 2019/05/10 09:18
Consumers can pursue a lawsuit complaining that iPhone apps cost too much, the Supreme Court ruled on Monday, adding to Apple’s woes that already include falling iPhone sales and a European investigation.
The lawsuit could have major implications for the tech giant’s handling of the more than 2 million apps in Apple’s App Store, where users get much of the software for their smartphones. While most of those apps are free to download, some impose fees for people to use the software and subscribe to the services.
In those cases, Apple charges a commission of 30%, a practice that the lawsuit contends unfairly drives up the price for the apps. Justice Brett Kavanaugh wrote the majority opinion that agreed the antitrust lawsuit can move forward in a lower court.
The court’s four liberal justices joined Kavanaugh, one of President Donald Trump’s two high court appointees, to reject a plea from Apple to end the lawsuit at this early stage. The decision did not involve the merits of the suit.
Apple argues it’s merely a pipeline between app developers and consumers, and that iPhone users have no claims against Apple under antitrust law and a 1977 Supreme Court decision. Tens of thousands of developers create the software and set the price, Apple says.
“We’re confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric,” Apple said in statement issued in response to Monday’s ruling. The lawsuit could take years to wind to its conclusion.

Legal Insight 2019/05/07 10:22
Attorneys for news organizations argued Thursday that the U.S. public should be allowed to see federal data about how prescription opioids were distributed as the nation’s overdose crisis was worsening.
They urged a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati to overturn a lower court judge’s denial of access to the information. The judges will rule later.
“The value of transparency here is great,” said Karen C. Lefton, an Akron, Ohio, attorney representing The Washington Post. The data concerns “a public health crisis” that affects many more people than a typical case, she said.
The data is a key piece of evidence in hundreds of lawsuits filed by state and local governments against companies that make and distribute the drugs. The U.S. Drug Enforcement Administration database details the flow of prescription painkillers to pharmacies, showing the number and doses of pills.
A Justice Department attorney told the judges releasing the data would compromise investigations.
“This is an issue of really critical importance to the United States and DEA,” said government attorney Sarah Carroll. Making the information public, she said, “would tip defendants off to the scope of DEA investigations.”
Cleveland-based U.S. District Judge Dan Polster, who is overseeing more than 1,500 of the lawsuits, had ruled in July 2018 that the information cannot be made public. He said that doing so would reveal trade secrets. The Post and the HD Media newspaper chain, which had asked the court for the data, then appealed to the federal circuit.
The appellate judges raised a number of questions about Polster’s orders keeping the data secret and hundreds of filings in the case that are under seal.
Judge Eric Clay said it seemed that the secrecy in the case had “just gone overboard.” He told Carroll, of the Justice Department, that “just saying” cases would be compromised seems inadequate.

Lawyer Blog Post 2019/05/07 00:49
Court records show that video police recovered from an Illinois woman's cellphone showing her bruised 5-year-old son prompted the boy's father to lead investigators to the child's body.
JoAnn Cunningham and Andrew Freund Sr. of Crystal Lake are charged with murder in Andrew "AJ" Freund's death. Investigators found his body April 24 in a shallow grave.
An affidavit from a McHenry County Sheriff's detective says the video from March shows AJ lying naked on a mattress, covered in bruises and bandages.
The affidavit says the couple forced AJ to take a cold shower April 14 as punishment for lying about soiling his underwear. Freund told investigators they put the boy to bed and Cunningham later found him unresponsive. Freund says he put AJ's body in a plastic container and later buried him.
Legal Insight 2019/05/04 10:18
Taking a harder line on health care, the Trump administration joined a coalition of Republican-led states Wednesday in asking a federal appeals court to entirely overturn former President Barack Obama’s signature health care law — a decision that could leave millions uninsured.
Congress rendered the Affordable Care Act completely unconstitutional in 2017 by eliminating an unpopular tax penalty for not having insurance, the administration and GOP states told the court.
The “Obamacare” opponents hope to persuade the 5th U.S. Circuit Court of Appeals in New Orleans to uphold U.S. District Court Judge Reed O’Connor’s ruling late last year striking down the law.
If the ruling is allowed to stand, more than 20 million Americans would be at risk of losing their health insurance, re-igniting a winning political issue for Democrats heading into the 2020 elections. President Donald Trump, who never produced a health insurance plan to replace “Obamacare,” is now promising one after the elections.
The Trump administration acknowledged it had changed positions in the case. Early on, the administration argued that only certain key parts of the ACA, such as protections for people with pre-existing medical conditions, should be invalidated. But it said other important provisions such as Medicaid expansion, subsidies for premiums and health insurance markets could continue to stand.
Wednesday, the administration said it had reconsidered in light of O’Connor’s ruling. “The remaining provisions of the ACA should not be allowed to remain in effect — again, even if the government might support some individual positions as a policy matter,” the administration wrote in its court filing.
The Justice Department’s legal brief also seemed to be trying to carve out some exceptions. For example, the administration said the ACA’s anti-fraud provisions should remain in effect.

Legal Insight 2019/05/04 00:49
Attorneys for news organizations argued Thursday that the U.S. public should be allowed to see federal data about how prescription opioids were distributed as the nation’s overdose crisis was worsening.
They urged a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati to overturn a lower court judge’s denial of access to the information. The judges will rule later.
“The value of transparency here is great,” said Karen C. Lefton, an Akron, Ohio, attorney representing The Washington Post. The data concerns “a public health crisis” that affects many more people than a typical case, she said.
The data is a key piece of evidence in hundreds of lawsuits filed by state and local governments against companies that make and distribute the drugs. The U.S. Drug Enforcement Administration database details the flow of prescription painkillers to pharmacies, showing the number and doses of pills.
A Justice Department attorney told the judges releasing the data would compromise investigations.
“This is an issue of really critical importance to the United States and DEA,” said government attorney Sarah Carroll. Making the information public, she said, “would tip defendants off to the scope of DEA investigations.”
Cleveland-based U.S. District Judge Dan Polster, who is overseeing more than 1,500 of the lawsuits, had ruled in July 2018 that the information cannot be made public. He said that doing so would reveal trade secrets. The Post and the HD Media newspaper chain, which had asked the court for the data, then appealed to the federal circuit.

Lawyer Blog Post 2019/05/02 10:17
The Arizona Court of Appeals has ruled that the Costco warehouse store chain can be sued for privacy violations by a Phoenix-area man because a pharmacist joked with his ex-wife about an erectile dysfunction prescription he had never picked up.
The ruling issued Tuesday revived the lawsuit the man filed after the pharmacist told his ex-wife about the prescription when she went to pick up another prescription with his approval. The man had called Costco twice to cancel the prescription before his ex-wife went to the north Phoenix store in early 2016, but the pharmacist did not do so, according to the ruling.
Attorney Joshua Carden filed the lawsuit for the man alleging a variety of violations, but it was dismissed by a trial-court judge. The Court of Appeals revived sections alleging negligence under federal health care privacy law commonly called HIPAA. The ruling potentially allows him to seek punitive damages.
The ruling is the first to say that negligence claims under HIPAA can be brought in Arizona courts, Carden said.
“If there is a big deal in the case it’s that the court went ahead and said yes to negligence claims based on HIPAA violations,” Carden said. “That’s not ever been announced in Arizona before.”
The federal health privacy law doesn’t allow individuals to sue for violations in federal court, he said, and state courts haven’t always been clear about that right.
