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August 2016

Insider Trading Alert It is Not Just a Wall Street Issue

By:  Ze’eva Kushner Banks and John Goselin

Be forewarned!  The Securities and Exchange Commission continues to hunt down individuals for improper insider trading.  Last week, the S.E.C. announced charges against Doctor Edward Kosinski for violations of the antifraud provisions of the federal securities laws by buying and selling shares of Regado Biosciences, Inc. (“Regado”) based on inside information.  And the regulator is not simply seeking disgorgement of ill-gotten gains.  The S.E.C. wants Doctor Kosinski to go to jail!!  

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EEOC Modifies Proposed Rule That Would Require Many Employers To Report Pay Data

By:  Bill Buechner

On February 1, 2016, the EEOC published in the Federal Register notice of a proposed rule that would require employers with 100 or more employees to provide pay data for their employees on a revised EE0-1 form.  The revised EEO-1 form would require employers to identify the number of employees by race, gender and ethnicity who fall within one of 12 specified pay bands ranging from $19,239 to $208,000 and over.  These employees would continue to be classified in the 10 existing job categories (executive, professional, laborers, etc.).  

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Mixed Ruling For Penn State Insurer As New Allegations Surface In Jerry Sandusky Coverage Case

By:  Bill Buechner

Approximately 4 years ago, former Penn State defensive coordinator Jerry Sandusky was convicted on 45 counts of child sexual abuse arising out of the molestation of 10 boys over a period of 15 years.   Sandusky was sentenced to a minimum of 30 years.   He has appealed these convictions, and his appeal is still pending.  Several other Penn State administrators, including the former president and the former athletic director, also were indicted on various charges relating to Sandusky’s misconduct, and they are awaiting trial.  

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The Ferguson Effect: The Future of Law Enforcement and Crime Rates in America?

By:  Sara Brochstein

As tensions increase throughout the United States, the debate over the “Ferguson effect” theory remains highly visible in the foreground.  The theory suggests that increased attention and scrutiny of the police in light of the highly publicized episodes of police brutality has resulted in officers acting less proactively.  This behavior reportedly stems from a fear of making a controversial stop or, even worse, a mistake given the widespread use of cellphone videos and media coverage. 

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Firm and Attorney News  

Cheryl H. Shaw has joined the Atlanta office as a Partner in the Construction and General Liability practice groups.   She is an experienced trial and appellate lawyer and has represented clients in claims relating to negligent design, contract administration, and construction management. Ms. Shaw's commercial and professional liability practice also includes representing professionals such as architects, engineers, lawyers, real estate agents, and insurance professionals in Errors and Omission cases.  She also has substantial experience defending personal injury and property damage claims such as negligent security, transportation, and sexual assault.


Julie Marquis obtained summary judgment on a marital status discrimination and wrongful termination case filed against our client, a nonprofit rehabilitation facility. Plaintiff claimed he was terminated when the CEO of the facility, his mother-in-law, learned he was having marital trouble and planned to divorce her daughter, another employee of the facility.  We argued our client terminated plaintiff’s employment for reasons wholly unrelated to his marital status; specifically, because the court issued a temporary restraining order against him based upon threats made against his wife, the facility’s employee.  The court granted summary judgment in favor of our client.


Dennis Strazulo will be speaking at ACI’s Wage & Hour Conference on September 26th  in San Francisco. He also will be moderating an FLSA presentation at the EPLI ExecuSummit Conference on September 28th in Uncasville, Connecticut.


Mike Bruyere was a co-presenter on August 10th for the CLM Medical Legal Committee’s webinar “False Claims Act Litigation: Where is the Insurance Coverage and What are the Liabilities?”


Wayne Melnick was a featured speaker In July at  CLM’s National Municipal Law section seminar in Boston. Mr. Melnick presented on the Complications Arising from Multi-Jurisdictional Task Forces. 


Wayne Melnick and Ali Sabzevari successfully obtained dismissal of an inmate’s federal Section 1983 lawsuit where the inmate alleged a sheriff’s deputy violated his Constitutional rights by using excessive force.  The United States District Court for the Northern District of Georgia held that the inmate failed to exhaust available administrative remedies under the Prison Litigation Reform Act prior to filing suit.  


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About Freeman Mathis & Gary, LLP

Freeman Mathis & Gary, LLP is a leading national litigation firm, serving clients through its practice groups in CGL and Business Liability, Commercial and Complex Litigation, Construction and Design Law, Financial Services and Transactions, Government Law, Government Relations, Insurance Coverage and Bad Faith, Labor and Employment Law, and Professional Liability. With offices in Georgia, California, Pennsylvania, New Jersey, New York, North Carolina and Florida, FMG attorneys serve as trusted counsel to corporations and governments throughout the country, providing practical, efficient, and cost-effective solutions for legal issues. For more information about FMG, visit www.fmglaw.com.


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