Latest 3 Cases: Arkansas Teacher Retirement System v. Goldman Sachs Group, Inc. (Business Law), Duran v. La Boom Disco, Inc. (Communications Law), ...

Why People Dislike the Insanity Defense

SHERRY F. COLB

Cornell law professor Sherry F. Colb comments on the insanity defense, considering when and why juries (and others) might perceive a criminal defendant to be not guilty by reason of insanity. Colb proposes that if a criminal defendant’s mental illness looks like an outside force that made him behave in an out-of-character fashion, then the jury is more likely to find him not guilty by reason of insanity.

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Arkansas Teacher Retirement System v. Goldman Sachs Group, Inc.

Docket: 18-3667

Opinion Date: April 7, 2020

Judge: Richard C. Wesley

Areas of Law: Business Law, Securities Law

Shareholders of Goldman filed a class action alleging that Goldman and several of its executives committed securities fraud by misrepresenting Goldman's freedom from, or ability to combat, conflicts of interest in its business practices. The district court certified a shareholder class, but the Second Circuit vacated the order in 2018. On remand, the district court certified the class once more. The court affirmed the district court's order on remand, holding that the district court correctly applied the inflation-maintenance theory. The court explained that the inflation-maintenance theory did not require proof of fraud-induced inflation, and that the district court applied the correct standard in concluding that Goldman's share price was inflated. The court also held that the district court did not abuse its discretion by holding that Goldman failed to rebut the Basic presumption by a preponderance of the evidence.

Duran v. La Boom Disco, Inc.

Docket: 19-600

Opinion Date: April 7, 2020

Judge: Jose A. Cabranes

Areas of Law: Communications Law, Consumer Law

Plaintiff filed suit alleging that LBD used Automatic Telephone Dialing Systems (ATDSs) in violation of the Telephone Consumer Protection Act of 1991 (TCPA). In this case, plaintiff received hundreds of unsolicited text messages from LBD over the course of more than a year and a half. The Second Circuit vacated the district court's grant of summary judgment to LBD, holding that LBD's systems qualified as ATDSs. The court held that LBD's systems met both statutory requirements by having both the capacity to store or produce telephone numbers to be called, using a random or sequential number generator, and the capacity to dial such numbers. Accordingly, the court remanded for further proceedings.

United States v. Adams

Docket: 18-3650

Opinion Date: April 7, 2020

Judge: Richard J. Sullivan

Areas of Law: Criminal Law, White Collar Crime

Defendant appealed his conviction and sentence for various tax offenses, including making and subscribing to a false tax return, tax evasion, and attempting to interfere with the administration of the internal revenue laws. Defendant's charges stemmed from his efforts, over the course of 14 years, to engage in a concerted campaign to obstruct the IRS's efforts to collect his delinquent tax payments and to secure overdue tax returns. The Second Circuit held that the district court lacked authority to require restitution payments to begin immediately following defendant's sentencing. However, the court held that, in assessing tax loss under USSG 2T1.1 application note 1, the district court was permitted to rely on uncharged relevant conduct constituting "willful evasion of payment" in violation of 26 U.S.C. 7201 and "willful failure to pay" in violation of 26 U.S.C. 7203. The court held that defendant's remaining claims were unavailing and affirmed the judgment as modified.