Eversheds Sutherland 11th Circuit Business Blog
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Eleventh Circuit Bans Incentive Payments to Lead Plaintiffs in Class Actions

In what appears to be a first, the Eleventh Circuit recently held that federal law prohibits so-called “incentive payments” to class representatives, even as part of an agreed settlement. The court acknowledged that it was forging a new path in Johnson v. NPAS Solutions, LLC, 975 F.3d 1244, 1248–49 (11th Cir. 2020)—identifying errors that it said had “become commonplace in everyday...

Eleventh Circuit Joins Majority of Circuits in Holding That FAA Prohibits Pre-Hearing Discovery From Non-Parties

After twenty years of litigation in Managed Care Advisory Group, LLC v. Cigna Healthcare, Inc., 2019 WL 4464301 (Sept. 18, 2019), the Eleventh Circuit issued a per curiam opinion reversing the enforcement of arbitral summonses and holding that the FAA implicitly withholds the power to compel documents from non-parties without summoning them to testify. Beginning in 1999, medical...

Eleventh Circuit Weighs in on Circuit Split as to Whether Guarantors are “Applicants” under the Equal Credit Opportunity Act

The Eleventh Circuit in Regions Bank v. Legal Outsource PA, 2019 WL 4051703 (11th Cir. Aug. 28, 2019), was tasked with answering a question that has divided the circuits: whether a guarantor constitutes an “applicant” under the Equal Credit Opportunity Act. And the question divided the panel as well, with Judges William Pryor and visiting District Court Judge K. Michael Moore in the...

How Accountable Are You for Your Accountant’s Tax Fraud? The Eleventh Circuit Decides Not to Answer.

In Finnegan v. Commissioner, 2019 WL 2428109 (11th Cir. June 11, 2019), the Eleventh Circuit was asked to review whether a taxpayer may be indefinitely held responsible for the fraud of its paid tax return preparer. It is a question of special interest to small business owners that rely on an outside accountant to help with their taxes. Ultimately, the court chose not to answer the...

Supreme Court Grants Review of Eleventh Circuit Case, Among Others, to Decide Title VII’s Application to LGBT Discrimination

The Supreme Court today granted certiorari in a number of cases considering whether Title VII prohibits discrimination against LGBT employees, including a case decided by the Eleventh Circuit, Bostock v. Clayton County, Georgia, 723 F. App’x 964 (May 10, 2018). In Bostock, a panel of Judges Tjoflat, Wilson, and Newsom affirmed, in an unpublished per curiam opinion, the dismissal of the...

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