The Eleventh Circuit clarified the reasonable-belief standard for whistleblowers alleging unlawful retaliation under the Sarbanes-Oxley Act, in Ronnie v. Office Depot, LLC, No. 20-14214, ___ F.4th ___ (11th Cir. Sept. 25, 2023). SOX broadly prohibits discrimination against employees for providing information that they “reasonably believe[] constitutes” mail, wire, bank, or securities fraud (or a violation of…
Tag: Circuit split
Supreme Court Denies Certiorari in Eleventh Circuit Case Banning Class-Action Incentive Payments for Plaintiffs
The Supreme Court today denied certiorari in Johnson v. Dickenson, No. 22-389, 2023 WL 2959369 (U.S. Apr. 17, 2023), declining to review the Eleventh Circuit’s decision that incentive awards in class actions are impermissible under federal law. Johnson v. NPAS Sols., LLC, 975 F.3d 1244 (11th Cir. 2020), denial of rehearing en banc, 43 F.4th…
Court Rejects Three-Year Time Bar for Damages Awarded under the Copyright Act
In Nealy v. Warner Chappell Music, Inc., 2023 WL 2230267 (11th Cir. Feb. 27, 2023), the Eleventh Circuit rejected the application of a three-year “lookback” period for the purposes of awarding damages under the Copyright Act. In answering a certified question of law presented by the district court, the appellate panel declined to time-bar damages…
En Banc Court Stands by Ban on Class-Action Incentive Payments for Plaintiffs
Nearly two years after a divided three-three judge panel held that federal law prohibits “incentive payments” to named class representatives (see our previous blog post here), the Eleventh Circuit denied a petition to rehear that case en banc. Johnson v. NPAS Solutions, LLC, 2022 U.S. App. LEXIS 21455 (11th Cir. Aug. 3, 2022). The denial…
Increased Risk of Identity Theft Cannot Establish Article III Standing in Data Breach Cases
The Eleventh Circuit has now taken a stand on whether a substantial risk of identity theft, fraud, and other future harm constitutes Article III standing in data breach cases. Tsao v. Captiva MVP Rest. Partners, LLC, 2021 WL 381948 (11th Cir. Feb. 4, 2021). In an opinion authored by Senior Judge Tjoflat, the Eleventh Circuit…
Administrative Feasibility Not Separate Class Certification Requirement
The Eleventh Circuit aligned itself last week with the majority of circuits in holding that a threshold determination that identifying class members is administratively feasible is not a separate requirement for class certification. The ruling, in the closely-watched case of Cherry v. Dometic Corp., 2021 WL 346121 (11th Cir. Feb. 2, 2021), which attracted numerous…
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…
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…
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…
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…