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Fraud in the boardroom

April 2003 | Volume 39, Issue 4

When HMOs put profits over patients
Linda Peeno and Theodore J. Leopold

In the era of managed care, many critical decisions about patient care have been transferred from doctors to HMO corporate executives concerned primarily about their companies’ financial health. Understanding the complexities of managed care will help you win compensation for the injured.

Partners in crime
Steven O. Sidener

Enron, WorldCom, and other publicly traded corporations teamed with accountants, lawyers, bankers, financial advisers, and others to defraud investors. Lax regulations let them do so without raising the suspicion of industry watchdogs. Courts have begun cracking down on secondary actors—a shift that may restore trust in the integrity of U.S. equity markets.

Holding the accountant accountable
Colleen Duffy Smith

Accountants who do not exercise reasonable care are subject to liability for negligence. If your client has a contractual, first-party relationship with an accountant, your path to success in court is likely to be smooth. Third-party claimants can also file suit, but proving their claims requires more evidence and effort.

Protect investors from brokers’ stock scams
Pat Huddleston II, Rhon E. Jones, and Jason L. Nohr

Merrill Lynch duped brokerage customers into buying stocks it claimed were sure bets but knew were certain losers. The motive: lucrative investment-banking business from companies whose stocks it touted. Investors who got fleeced can bring private actions.

Remedies for wronged investors
Howard L. Nations

Recent laws and court decisions have limited the federal remedies available to victims of securities-related corporate misconduct, forcing plaintiffs to pursue justice in state courts. Winning compensation is difficult, but it can be done.

Feature

Saving state law bad-faith claims from preemption
Donald T. Bogan

Congress did not enact ERISA to limit the rights of employee benefit plan participants, but many court rulings have had that effect. Although courts have held that the act preempts state law bad-faith claims, the author presents 15 arguments to the contrary.

When bad things happen to good people
Christine A. Bremer

Families who have lost a loved one to a sudden tragedy often seek legal counsel regarding a wrongful death claim in the early stages of their grief, when they are still stunned by their loss and emotionally fragile. Compassion and sensitivity are crucial when helping these clients hold culpable parties responsible.

News & Trends

‘Comprehensive law’ makes the case for a kinder, gentler law practice

ERISA does not preempt state medical malpractice suit, Second Circuit rules

Diabetic patient loses leg and lawsuit against HMO

Cities, states not required to ensure competence of rescue services, Third Circuit rules

Freed ex-convict can sue public defender’s office

Former partner of lesbian mother ordered to pay child support

Whistleblowing pays off for federal government

Departments

President's page
The human face of the medical malpractice debate

Washington focus
Another round of asbestos legislation

Supreme Court review
Death and double jeopardy

Good Counsel

Reflections
A commonsense approach to financial fraud cases

Discoveries

Quotes

Books

Lawyers, Lawsuits, and Legal Rights
by Thomas F. Burke

The Supreme Court in the Intimate Lives of Americans
by Howard Ball

Classifieds

Classifieds

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