Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

The case involves an institutional investor, The Mangrove Partners Master Fund, Ltd., which sued Overstock.com, Inc. and three of its executives, alleging violations of securities laws. Overstock, a publicly traded e-commerce company, announced a digital dividend that would be issued as unregistered securities, which led to a short squeeze, causing Overstock’s stock price to spike. The plaintiff, a short seller, claimed that the defendants manipulated the market to inflate the stock price artificially, allowing the CEO to sell his shares at a high price.The United States District Court for the District of Utah dismissed the plaintiff’s claims, finding that the allegations did not meet the heavy pleading burden required for securities fraud. The court held that the plaintiff failed to demonstrate that the defendants' actions were deceptive or manipulative under the Securities Exchange Act. The plaintiff then appealed the decision.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court’s dismissal. The appellate court held that the plaintiff failed to plausibly allege reliance on the defendants' misstatements, as the plaintiff admitted that it bought shares to avoid breaching lending contracts, not because of the defendants' statements. The court also found that the fully disclosed dividend did not constitute manipulative conduct, as it did not deceive investors about the market value of Overstock’s shares. Additionally, the court dismissed the plaintiff’s claims of material omissions, finding no evidence that the defendants intended to register the dividend all along or that issuing the unregistered dividend was illegal. The court also affirmed the dismissal of the plaintiff’s control-person claims and insider trading claims due to the lack of a predicate violation of the Exchange Act. View "In re: Overstock Securities Litigation" on Justia Law

In April 2018, Justin Little was investigated and arrested by state police in Oklahoma after his wife’s boyfriend was shot and killed on the Muscogee Creek Reservation. Following the Supreme Court’s 2020 decision in McGirt v. Oklahoma, it was established that the Creek Reservation had not been disestablished, meaning state police lacked jurisdiction over Little’s offense. Little was later convicted of first-degree murder in federal court.The United States District Court for the Northern District of Oklahoma denied Little’s motion to suppress evidence collected by state officers, ruling that the officers reasonably believed they had jurisdiction at the time of the investigation. Little was subsequently convicted by a jury and sentenced to life imprisonment.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court held that the evidence collected by state officers was admissible under the good faith exception to the Fourth Amendment’s exclusionary rule. The court reasoned that, given the historical belief that Oklahoma had jurisdiction over offenses on Creek land and the stay of the mandate in Murphy v. Royal pending Supreme Court review, state officers could reasonably believe they had jurisdiction. The court concluded that excluding the evidence would not have a significant deterrent effect and would impose substantial social costs.The Tenth Circuit affirmed Little’s conviction and sentence, rejecting his other arguments for reversal, including challenges to the admission of evidence, jury instructions, and prosecutorial statements. The court found that none of these issues warranted relief, either individually or cumulatively. View "United States v. Little" on Justia Law

The defendant was tried and convicted by a jury of kidnapping and sexually assaulting a 72-year-old woman, E.F., in her home in Tulsa, Oklahoma. The indictment alleged that the defendant is an Indian as defined under federal law, which was a jurisdictional predicate for the federal charges. The defendant was sentenced to life in prison, and judgment was entered on July 27, 2023. The defendant timely appealed, raising four issues: the admission of a hearsay verification letter to prove his Indian status, the exclusion of expert testimony on trauma and memory, the allowance of unnoticed expert testimony by a forensic nurse, and improper jury instructions regarding kidnapping.The United States District Court for the Northern District of Oklahoma admitted a verification letter from the Choctaw Nation of Oklahoma to prove the defendant's Indian status, over the defendant's hearsay objection. The court also excluded the expert testimony of Dr. Geoffrey Loftus on trauma and memory, allowed the Government’s forensic nurse to provide unnoticed expert testimony, and used the Tenth Circuit’s pattern jury instruction for kidnapping, rejecting the defendant’s proposed language.The United States Court of Appeals for the Tenth Circuit reviewed the case and found merit in the first issue on appeal. The court held that the district court erred by admitting the verification letter as it was inadmissible hearsay and did not qualify as a business record. The court determined that this error was not harmless because it negated an essential element of the crimes charged, specifically the defendant's Indian status, which is required for federal jurisdiction. Consequently, the Tenth Circuit reversed the convictions and sentence and remanded the case to the district court to vacate the judgment and conduct further proceedings consistent with its decision. View "United States v. Harper" on Justia Law

In this case, the plaintiff, MVT Services, LLC (MVT), purchased a workers’ compensation and employers’ liability policy (WC/EL Policy) from Great West Casualty Company (Great West) for coverage from January 1, 2013, to January 1, 2014. MVT also entered into a Staff Leasing Agreement with OEP Holdings, LLC (OEP) and purchased a non-subscriber insurance policy from Crum & Forster Specialty Insurance Company (C&F). On August 13, 2013, MVT terminated its Texas coverage under the WC/EL Policy, effective September 16, 2013. On September 15, 2013, a day before the termination, MVT’s semi-tractor trailer crashed, killing driver Lawrence Parada. Parada’s widow filed a lawsuit against MVT. Great West denied coverage, leading MVT to seek defense under the C&F Policy.The United States District Court for the District of New Mexico found that Great West breached its duty to defend MVT, causing MVT to incur damages. The court awarded MVT damages and attorney fees. Great West appealed, arguing that the district court erred in finding that the Parada lawsuit would have resolved within the policy limit and that the breach did not proximately cause the damages.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court held that the district court did not clearly err in its factual findings that MVT would have invoked the Exclusive Remedy defense and that the gross negligence claim would have resolved within the policy limit. The court also found that the district court did not err in awarding damages for the $250,000 retention under the C&F Policy, the $250,000 MVT contributed to the settlement, and $41,476.84 in attorney fees. The court affirmed the district court’s award of attorney fees, concluding that Great West failed to show the district court committed legal error or clearly erred in its fact findings. The Tenth Circuit affirmed the district court’s judgment. View "MVT Services v. Great West Casualty Company" on Justia Law

Plaintiffs M.S. and L.S. sought insurance coverage for mental health treatments for their child, C.S., under a health benefits plan provided by M.S.'s employer, Microsoft Corporation. The plan, administered by Premera Blue Cross, is subject to ERISA and the Parity Act. Premera denied the claim, stating the treatment was not medically necessary. Plaintiffs pursued internal and external appeals, which upheld the denial. Plaintiffs then sued in federal district court, alleging improper denial of benefits under ERISA, failure to produce documents in violation of ERISA’s disclosure requirements, and a Parity Act violation for applying disparate treatment limitations to mental health claims.The United States District Court for the District of Utah granted summary judgment to Defendants on the denial-of-benefits claim but ruled in favor of Plaintiffs on the Parity Act and ERISA disclosure claims. The court found that Defendants violated the Parity Act by using additional criteria for mental health claims and failed to disclose certain documents required under ERISA. The court awarded statutory penalties and attorneys’ fees to Plaintiffs.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court vacated the district court’s grant of summary judgment on the Parity Act claim, finding that Plaintiffs lacked standing to bring the claim. The court reversed the district court’s ruling that Defendants violated ERISA by not disclosing the Skilled Nursing InterQual Criteria but affirmed the ruling regarding the failure to disclose the Administrative Services Agreement (ASA). The court upheld the statutory penalty for the ASA disclosure violation and affirmed the award of attorneys’ fees and costs to Plaintiffs. View "M.S. v. Premera Blue Cross" on Justia Law

Plaintiffs, including Free Speech Coalition, Inc. and others, sought to prevent Utah officials from enforcing a law requiring age verification for online pornography. They argued that the law violated the First Amendment and other constitutional rights. The law allows private parties to sue commercial entities that fail to verify users' ages. Plaintiffs claimed this law imposed unconstitutional restrictions on free speech and sought declaratory and injunctive relief against the Attorney General of Utah and the Commissioner of the Utah Department of Public Safety.The United States District Court for the District of Utah dismissed the case, ruling that the defendants were entitled to Eleventh Amendment immunity. The court found that the defendants did not enforce or give effect to the law, thus the Ex parte Young exception to sovereign immunity did not apply. The district court also noted that the Commissioner’s oversight of a mobile driver's license program did not constitute enforcement of the law, as the program did not yet provide for online age verification.The United States Court of Appeals for the Tenth Circuit affirmed the district court's dismissal. The appellate court agreed that neither the Attorney General nor the Commissioner enforced or gave effect to the law. The court held that the Ex parte Young exception did not apply because the law placed enforcement authority with private individuals, not state officials. The court also found that the Commissioner’s management of the mobile driver's license program was too attenuated to constitute enforcement of the law. Consequently, the court affirmed the dismissal of the plaintiffs' complaint based on Eleventh Amendment immunity. View "Free Speech Coalition v. Anderson" on Justia Law

Scott Lowe was convicted of drug trafficking and unlawful possession of a firearm. He argued that his Fourth Amendment rights were violated when Denver Police Department officers searched a storage unit in his apartment building without a warrant. The search revealed evidence linking him to drug trafficking. Lowe moved to suppress the evidence, claiming a possessory interest in the unit that required a warrant. The district court denied the motion.The United States District Court for the District of Colorado reviewed the case. Lowe had previously pleaded guilty to possession of a firearm by a felon and was on supervised release. His probation officer received tips from a confidential informant about Lowe using a storage unit for hiding narcotics and firearms. Despite Lowe's denials and the property manager's confirmation that he did not rent a storage unit, officers found incriminating evidence in a storage unit on the eighth floor of his apartment building. Lowe was arrested and charged with possession with intent to distribute MDMA, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a felon. The district court denied Lowe's motion to suppress the evidence, ruling that he lacked a reasonable expectation of privacy in the storage unit.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court affirmed the district court's decision, holding that Lowe failed to establish a legitimate expectation of privacy in the storage unit. The court found sufficient evidence to support his conviction and found no legal error in his sentencing. The court also addressed Lowe's challenges regarding the sufficiency of the evidence and the reasonableness of his sentence, ultimately affirming the lower court's rulings. View "United States v. Lowe" on Justia Law

M.G. and C.V., medically fragile children under New Mexico’s Medicaid program, sued the New Mexico Human Services Department (HSD) for failing to provide the private duty nursing (PDN) hours they are entitled to. They sought a preliminary injunction to compel HSD to take good faith steps to provide these hours. The district court granted the injunction, and HSD appealed.The United States District Court for the District of New Mexico found that M.G. and C.V. were consistently not receiving their required PDN hours, which placed them at risk of severe medical harm. The court concluded that M.G. and C.V. were likely to succeed on the merits of their Medicaid Act claims, which mandate the provision of PDN services. The court also found that the children would suffer irreparable harm without the injunction, that the balance of harms favored the plaintiffs, and that the injunction was in the public interest. The injunction required HSD to take specific steps, such as negotiating with managed care organizations and increasing monitoring of PDN hour shortfalls, to provide the necessary PDN hours.The United States Court of Appeals for the Tenth Circuit affirmed the district court’s decision. The appellate court held that M.G. and C.V. had standing to seek injunctive relief and that the district court did not err in its conclusions. The court found that the injunction was not impermissibly vague and that the Supreme Court’s decision in Armstrong v. Exceptional Child Center, Inc. did not preclude the issuance of the injunction. The Tenth Circuit concluded that the district court acted within its discretion in granting the preliminary injunction, given the likelihood of success on the merits, the risk of irreparable harm, the balance of harms, and the public interest. View "M.G. v. Armijo" on Justia Law

Customs and Border Patrol officers seized Sergio Ruiz at the Columbus, New Mexico port of entry with 20.8 kilograms of methamphetamine and an active GPS tracker hidden in his truck’s spare tire. The government used testimony from a confidential informant, Eric Weaver, who identified Ruiz as “Tire Man,” a known narcotics courier. Ruiz argued that the identification should be suppressed due to a suggestive pretrial photo array.The United States District Court for the District of New Mexico denied Ruiz’s motion to suppress the identification. The court found that although the photo array might lean towards being suggestive, Weaver’s identification was reliable under the totality of the circumstances. Weaver had multiple opportunities to observe Ruiz closely and provided consistent and accurate descriptions of him before the photo array. The jury subsequently convicted Ruiz on all counts.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court applied a two-part test to determine if the identification violated Ruiz’s due process rights. First, it assessed whether the photo array was unduly suggestive. Second, it evaluated the reliability of the identification using the Biggers factors. The court concluded that even if the photo array was suggestive, Weaver’s identification was reliable. Weaver had multiple encounters with Ruiz, paid close attention to his appearance, provided accurate descriptions, and expressed confidence in his identification. The court found no substantial likelihood of misidentification and affirmed the district court’s denial of Ruiz’s motion to suppress. View "United States v. Ruiz" on Justia Law

A licensed professional counselor in Colorado challenged the state's Minor Conversion Therapy Law (MCTL), which prohibits mental health professionals from providing conversion therapy to minors. Conversion therapy is defined as any practice attempting to change an individual's sexual orientation or gender identity. The plaintiff argued that the MCTL violates the Free Speech and Free Exercise Clauses of the First Amendment and sought a preliminary injunction to prevent its enforcement.The United States District Court for the District of Colorado denied the plaintiff's motion for a preliminary injunction, finding that the plaintiff had standing but failed to demonstrate a likelihood of success on the merits of her First Amendment claims. The court concluded that the MCTL regulates professional conduct that incidentally involves speech and is therefore subject to rational basis review, which it survives.The United States Court of Appeals for the Tenth Circuit affirmed the district court's decision. The Tenth Circuit held that the MCTL regulates professional conduct by prohibiting a specific therapeutic treatment (conversion therapy) provided by licensed mental health professionals to minors. The court found that the MCTL does not target speech based on its content but regulates the practice of conversion therapy, which incidentally involves speech. The court concluded that the MCTL is subject to rational basis review and serves legitimate state interests in protecting minors from harmful and ineffective therapeutic practices and maintaining the integrity of the mental health profession. The court found that the MCTL is rationally related to these interests, as the record showed that conversion therapy is harmful to minors and lacks clinical utility. View "Chiles v. Salazar" on Justia Law