Limits on class-action lawsuits at Supreme Court

The Supreme Court appeared divided Monday in two cases in which businesses are trying to make it harder for customers or investors to band together to sue them.

The justices heard arguments in appeals from biotech company Amgen Inc. and cable provider Comcast Corp. that seek to shut down class-action lawsuits against the businesses.

Amgen is fighting securities fraud claims that misstatements about two of its drugs used to treat anemia artificially inflated its stock price. Comcast is facing a lawsuit from customers who say the company's monopoly in parts of the Philadelphia area allowed it to raise prices unfairly.

Last year, the Supreme Court raised the bar for some class-action suits when it sided with Wal-Mart against up to 1.6 million of its female employees who complained of sex discrimination. In the Wal-Mart case, the court said there were too many women in too many jobs at the nation's largest private employer to wrap into one lawsuit.

Class actions increase pressure on businesses to settle suits because of the cost of defending them and the potential for very large judgments.

Connecticut pension funds that sued Amgen said lower courts correctly ruled that the case could move forward as a class action. The issue at the Supreme Court is whether the pension funds have to show at an early stage of the lawsuit that Amgen's claims about the safety and effectiveness of the drugs Aranesp and Epogen affected the stock price.

Several justices indicated they had no problem with the idea that, unlike in the Wal-Mart case, all the Amgen investors were in the same boat and could clear an early hurdle that tripped up the Wal-Mart employees.

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Class action lawyers must be experienced with complex litigation and class action certification, notice, and settlement procedures. Large corporate defendants always put up formidable opposition in cases involving thousands of claimants.

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Feds and Florida headed to court over voter purge

The administration of Florida Gov. Rick Scott is headed to a legal showdown with two different federal agencies over a contentious voter purge.
Florida filed a lawsuit in a federal court in Washington D.C., demanding that the state be given the right to check the names of its registered voters against an immigration database maintained by the U.S. Department of Homeland Security.
The lawsuit came the same day that the U.S. Department of Justice announced its plan to ask a federal court to block the state from pushing ahead with removing potential non-U.S. citizens from the voter rolls. Authorities contend that the state's effort violates federal voting laws.
"Please immediately cease this unlawful conduct," wrote Assistant Attorney General Thomas Perez to Florida Secretary of State Ken Detzner.
But Scott himself went on national television to defend the purge and the need to sue the federal government.

Court won't hear appeals from Bulger victim family

The Supreme Court won't hear an appeal over whether the family of a man allegedly killed by former Boston mob boss and FBI informant James "Whitey" Bulger should get millions of dollars from the government.

The high court on Monday refused to hear an appeal from Edward Halloran's estate, which wants more than $2 million in damages from the FBI.

Bulger and another gang member are alleged to have shot Halloran on the waterfront in 1982. Bulger was an FBI informant at the time, and two judges ordered the FBI to pay damages to the families.

But the 1st U.S. Circuit Court of Appeals ruled the families did not file their claims within the statute of limitations.

Appeals court: Seniors can't reject Medicare right

A federal appeals court ruled Tuesday that seniors who receive Social Security cannot reject their legal right to Medicare benefits, in a rare case of Americans suing to get out of a government entitlement.

Former House Majority Leader Dick Armey is among the five senior citizens who sued to stop their automatic eligibility for Medicare. But the appeals court ruled in a split decision that the law gives them no way to opt out of their eligibility if they want to keep their Social Security benefits.

Armey, a Texas Republican, and his co-plaintiffs say their private insurers limit their coverage because they are eligible for Medicare, but they would prefer the coverage from their private insurers.

"We understand plaintiffs' frustration with their insurance situation and appreciate their desire for better private insurance coverage," Judge Brett Kavanaugh wrote in a majority opinion joined by Douglas Ginsburg, both Republican appointees. But they agreed with the Obama administration that the law says those over age 65 who enroll in Social Security are automatically entitled to Medicare Part A, which covers services including hospital, nursing home care, hospice and home health care.

The case is being funded by a group called The Fund For Personal Liberty, which says its purpose is to take on burdensome government regulations. Attorney Kent Brown, who argued the case for the plaintiffs, say they want to keep their Social Security because they believe they earned it, but none of them want Medicare Part A.