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Tag: 2021 News

Federal Court of Appeals Stays OSHA Vaccination Mandate

Over the weekend, the 5th U.S. Circuit Court of Appeals granted an emergency stay of the requirement by the federal Occupational Safety and Health Administration that those workers be vaccinated by Jan. 4 or face mask requirements and weekly tests.

The White House expects the new regulation created last week to “impact over 80 million workers in private sector businesses.”

Texas’ Republican Attorney General Ken Paxton tweeted Saturday “Yesterday, I sued the Biden Admin over its unlawful OSHA vax mandate.” He then added “WE WON. Just this morning, citing “grave statutory and constitutional issues,” the 5th Circuit stayed the mandate. The fight is not over and I will never stop resisting this Admin’s unconstitutional overreach.”

His case was joined by the court into a master case which included several other states in the 5th Circuit, as well as a long list of large employers who also filed several separate actions seeking the same relief.

The Judge who issued the order wrote “Because the petitions give cause to believe there are grave statutory and constitutional issues with the Mandate, the Mandate is hereby STAYED pending further action by this court. The Government shall respond to the petitioners’ motion for a permanent injunction by 5:00 PM on Monday, November 8. The petitioners shall file any reply by 5:00 PM on Tuesday, November 9.”

Louisiana Attorney General Jeff Landry said the action stops Democratic President Joe Biden “from moving forward with his unlawful overreach.”

“The president will not impose medical procedures on the American people without the checks and balances afforded by the constitution,” said a statement from Landry, a Republican.

Solicitor of Labor Seema Nanda said the U.S. Department of Labor is “confident in its legal authority to issue the emergency temporary standard on vaccination and testing.”

OSHA has the authority “to act quickly in an emergency where the agency finds that workers are subjected to a grave danger and a new standard is necessary to protect them,” she said.

The brief filed by the Burnett Companies Consolidated, Inc. Choice Staffing, LLC and Staff Force, Inc., in a companion case, lays out the essential theory supporting the Order. “Of the nine emergency temporary standards published prior to this year, three were not challenged. The six that were challenged, only one was fully upheld, and most were stayed prior to enforcement. OSHA has once again acted illegally because, as shown below, the subsection that gives it authority issue an ETS violates the nondelegation doctrine under Article I, Section 1 of the U.S. Constitution.”

Such circuit decisions normally apply to states within a district – Mississippi, Louisiana and Texas, in this case – but Landry said the language employed by the judges gave the decision a national scope.

New Study of Vaccination Outcomes of 780 Thousand Veterans

A new study just published in Science, which analyzed the records of nearly 800,000 US veterans of all ages found that the three main Covid-19 vaccines experienced ‘dramatic’ drops in efficacy over six months.

Prior to this study, three reports of the U.S. Centers for Disease Control (CDC) in August 2021 demonstrated protection against infection had declined in mid-summer as the Delta variant rose to dominance; protection against hospitalization and death remained high.

This phenomenon has been most comprehensively monitored in Israel, where high levels of transmission of the Delta variant led to a resurgent outbreak in mid-June 2021, despite a successful nationwide campaign to vaccinate the population.

This new study examined SARS-CoV-2 infection and deaths by vaccination status in 780,225 Veterans during the period February 1, 2021 to October 1, 2021, encompassing the emergence and dominance of the Delta variant in the U.S.

Between early March and September, as the Delta variant rapidly became the dominant strain worldwide, the ability of Moderna’s two-dose vaccine to prevent infections dropped from 89% – 58%, Pfizer’s went from 87% – 45%, and J&J’s single-dose vaccine went from 86% to just 13%.

The vaccines’ ability to prevent death in older Americans remained somewhat robust over the same period, according to the report.

Among veterans 65 and older who were inoculated with the Moderna vaccine, those who developed a so-called breakthrough infection were 76% less likely to die of COVID-19 compared with unvaccinated veterans of the same age.

Older veterans who got the Pfizer-BioNTech vaccine and subsequently experienced a breakthrough infection were 70% less likely to die than were their unvaccinated peers.

And when older vets who got a single jab of the J&J vaccine suffered a breakthrough infection, they were 52% less likely to die than their peers who didn’t get any shots.

OSHA Posts Vaccination Rules for Employer’s of 100 or More

The Occupational Safety and Health Administration (OSHA) has issued an emergency temporary standard (ETS) to protect unvaccinated employees of large employers (100 or more employees) from the risk of contracting COVID-19 by strongly encouraging vaccination. They have issued a shorter “Fact Sheet” to help employers understand the requirements.

Covered employers must develop, implement, and enforce a mandatory COVID-19 vaccination policy, with an exception for employers that instead adopt a policy requiring employees to either get vaccinated or elect to undergo regular COVID-19 testing and wear a face covering at work in lieu of vaccination.

This ETS applies to employers with a total of 100 or more employees at any time the standard is in effect. The ETS is effective immediately upon publication in Federal Register. To comply, employers must ensure provisions are addressed in the workplace by the following dates:

– – 30 days after publication: All requirements other than testing for employees who have not completed their entire primary vaccination dose(s)
– – 60 days after publication: Testing for employees who have not received all doses required for a primary vaccination

The ETS requires employers to:

– – (1) require employees to promptly provide notice when they receive a positive COVID- 19 test or are diagnosed with COVID-19;
– – (2) immediately remove any employee from the workplace, regardless of vaccination status, who received a positive COVID-19 test or is diagnosed with COVID-19 by a licensed healthcare provider;
– – (3) keep removed employees out of the workplace until they meet criteria for returning to work.

In light of the unique occupational safety and health dangers presented by COVID-19, and against the backdrop of the uncertain economic environment of a pandemic, OSHA is proceeding in a stepwise fashion in addressing the emergency this rule covers.

OSHA needs additional time to assess the capacity of smaller employers, and is seeking comment to help the agency make that determination. Nonetheless, the agency is acting to protect workers now in adopting a standard that will reach two-thirds of all private-sector workers in the nation, including those working in the largest facilities, where the most deadly outbreaks of COVID-19 can occur.

OSHA intends the ETS to address comprehensively the occupational safety and health issues of vaccination, wearing face coverings, and testing for COVID-19. Thus, the standard is intended to preempt States, and political subdivisions of States, from adopting and enforcing workplace requirements relating to these issues, except under the authority of a Federally-approved State Plan.

In particular, OSHA intends to preempt any State or local requirements that ban or limit an employer from requiring vaccination, face covering, or testing. Additional information on the preemption of State and local laws is found in Section VI.A. of the ETS preamble.

OSHA will continue to monitor trends in COVID-19 infections and death as more of the workforce and the general population become fully vaccinated against COVID-19 and as the pandemic continues to evolve. Where OSHA finds a grave danger from the virus no longer exists, or new information indicates a change in measures necessary to address the grave danger, OSHA may update this ETS, as appropriate.

Although this ETS takes effect immediately, it also serves as a proposal under Section 6(b) of the OSH Act(29 U.S.C. 655(b)) for a final standard.

Accordingly, OSHA seeks comment on all aspects of this ETS and whether it should be adopted as a final standard. OSHA encourages commenters to explain why they prefer or disfavor particular policy choices, and include any relevant studies, experiences, anecdotes or other information that may help support the comment.

City of LA to Implement Toughest Venue Vaccine Verification Rules

Los Angeles city officials are set to implement some of the nation’s strictest COVID-19 vaccine verification rules next week, but they don’t plan to immediately cite or fine those who run afoul of the new regulations. According to the article in the Los Angeles Times, L.A. officials plan to start with educational and outreach efforts, rather than immediately penalize businesses when rules go into effect Monday.

That’s similar to the approach of officials in Los Angeles County as a whole. While both the county and city have rules requiring residents to show proof of vaccination to enter certain businesses, the county’s rules affect fewer types of establishments compared with those of the city.

Enforcement of the city program, dubbed SafePassLA, won’t officially begin until Nov. 29. Starting that date, businesses or venues that flout the rules will face penalties – at first a warning, then an escalating series of fines starting at $1,000 and topping out at $5,000 for a fourth or subsequent violation.

The city’s rules are expansive, requiring proof of full COVID-19 vaccination to enter indoor restaurants, shopping centers, movie theaters, hair and nail salons, coffee shops, gyms, museums, bowling alleys, performance venues and other spaces.

Attendees of outdoor events with 5,000 or more people also will have to show proof of vaccination or that they’ve recently tested negative for the coronavirus.

L.A. County, on the other hand, has imposed vaccine verification requirements in only a few business sectors: indoor bars, wineries, breweries, distilleries, nightclubs and lounges. Initially, patrons and employees in those spaces needed to show only they’d received at least one vaccine dose. But as of Thursday, they are required to demonstrate they are fully vaccinated.

L.A. County’s verification requirement has been in place for nearly a month, but health officials said this week they have yet to cite any businesses for noncompliance. County officials have regularly said they favor education over enforcement when implementing new coronavirus-related health measures.

Though it’s early, it appears many businesses are already toeing the line. From Oct. 16 to 22, county public health inspectors visited 78 bars and found 85% of them were following the requirement to verify customers’ vaccination status. And preliminary findings from the weekend of Oct. 23 and 24 indicate that 90% of bars and 100% of visited lounges and nightclubs were in compliance.

Some have worried that the disconnect between the city and county requirements will spark confusion among businesses and customers, potentially leading to unwitting violations. County health officials confirmed this week they are not considering any changes to their rules.

NCCI Releases Countrywide Court Case Update

The National Council on Compensation Insurance (NCCI) released its next updated Countrywide Court Case Update. The November 2021 edition provides a look at some of the key cases and decisions NCCI’s Legal Team monitors that may impact workers compensation across the states. This report contains updated information on cases previously introduced and presents new cases and decisions including COVID-19-related rulings.

“The Countrywide Court Case Update is a valuable resource that NCCI provides to insurers, regulators, and other industry stakeholders,” said Bill Donnell, NCCI’s President and CEO. “NCCI produces this robust report to inform on state and federal legal developments that can impact the workers compensation system.”

This report, provides insights on topics such as:

– – COVID-19 court cases
– – Workers compensation exclusive remedy
– – Challenges to state adoption of third-party guides
– – Developments in marijuana-including reimbursement and employment-related questions
– – Air ambulance reimbursement: state vs. federal law
– – Additional federal and state developments listed by geographic zone

In California, The California Second Appellate District will consider in See’s Candies, Inc. et al. v. Superior Court of Los Angeles County, whether WC exclusive remedy bars a lawsuit brought by an employee alleging that the employer’s failure to provide sufficient safeguards against COVID-19 caused the death of the employee’s spouse, who was infected after the employee contracted the virus at work.

And a case headed to the U.S. Supreme Court is significant to California since the state is governed by the 9th Circuit Federal Court of Appeal.

On August 19, 2020, the federal Court of Appeals for the Ninth Circuit, in United States v. Washington 971 F.3d 856 (9th Cir. 2020), as amended on April 15, 2021, affirmed a federal district court decision upholding the constitutionality of a Washington workers compensation statute that creates a presumption of compensability for certain types of diseases contracted by federal contractors working at the Hanford federal nuclear cleanup site.

The court rejected the federal government’s argument that the workers compensation statute violated the federal intergovernmental immunity doctrine, which invalidates state laws that seek to regulate the United States directly or discriminate against the federal government and those with whom it deals.

The court further concluded that the workers compensation statute falls within the scope of a federal law (40 U.S.C. § 3172) that authorizes the states to regulate workers compensation on federal land to the same extent that the states can regulate on nonfederal land.

A petition for Writ of Certiorari in this case was filed with the U.S. Supreme Court in September 2021. The essential question presented is whether a state workers’ compensation law that applies exclusively to federal contract workers who perform services at a specified federal facility is barred by principles of intergovernmental immunity, or is instead authorized by 40 U.S.C. 3172(a), which permits the application of state workers’ compensation laws to federal facilities “in the same way and to the same extent as if the premises were under the exclusive jurisdiction of the State.”

Jury Finds SoCal Doctor Guilty of Sales of Unapproved Drug

A Southern California physician has been found guilty of 26 felony charges for fraudulently distributing an unapproved cancer treatment over a six-year period, charging up to $2,000 per bottle.

Benedict Liao, 81, a.k.a. “Wada Masao,” and “Masao A. Wada,” of Fullerton, was found guilty of seven counts of wire fraud, 11 counts of selling a misbranded drug and eight counts of selling an unapproved new drug.

According to evidence presented at his five-day trial, Liao operated the Oeyama-Moto Cancer Research Foundation, which had offices in Monterey Park and, later, in West Covina.

Using the alias “Masao A. Wada, M.D.” Liao submitted to the United States Food and Drug Administration in 2011 and 2012 an Investigational New Drug (IND) application in which he stated that he planned to engage in clinical trials of a product called Allesgen, which he told FDA and stated in promotional material was intended to treat and cure many types of cancer. FDA received these applications and both times informed Liao that the IND applications for Allesgen had been placed on a full clinical hold due to deficiencies in the submissions.

The FDA required that a drug distributed under an IND application bear a label stating that it was a “New Drug – Limited by Federal law to investigational use” and Liao told FDA that he would place a label on Allesgen with such a statement.

Instead of doing so, Liao manufactured Allesgen in Fullerton and distributed the unapproved drug with a label calling Allesgen a “supplement,” not a drug, and this label stated that it “had not been evaluated by the FDA” and was not intended to treat any disease.

Liao sold and distributed Allesgen at a price generally set at $2,000 per bottle, plus shipping, to customers in various states and in foreign countries. Over the years he received approximately $1,600,,000 in revenue from this enterprise.

The jury found that Liao schemed to defraud buyers of Allesgen by failing to inform them it was not an approved cancer treatment, that FDA had placed it on hold, barring any distribution of it, that he was not allowed to charge anything for it, and that it could have side effects that were unpredictable and could be serious.

Liao remains free, and his sentencing is scheduled for February 2022. According to federal sentencing guidelines, he faces a maximum prison sentence of nearly 200 years. Sentences in wire fraud cases are often connected to the amount of money involved, though Liao is unlikely to do much time at all due to his advanced age and poor health.

FDA Scheduled to Review Merck COVID Pill This Month

Reuters reports that Merck has signed eight deals to sell more than a total of 2 million courses of its experimental COVID-19 pill molnupiravir to governments around the world.

It has applied for approval in the United States and said it can make 10 million courses in 2021. A Food and Drug Administration advisory committee is scheduled to evaluate the safety and efficacy data of the pill on Nov. 30 and decide whether or not to approve it for emergency use authorization in the U.S.

Last week the company reached a deal with the United Nations-backed Medicines Patent Pool that will allow more companies to manufacture generic versions of the pill with a royalty-free license applying to 105 low- and middle-income countries. So far Merck has agreed to license the drug to several India-based generic drugmakers.

Merck CEO Robert Davis told CNBC on Thursday the drugmaker is ready to produce and distribute tens of millions of doses of its Covid antiviral pills if given regulatory approval.

The Merck pill forces the SARS-CoV-2 coronavirus to mutate itself to death. The drug tricks the virus into using the drug for replication, then inserting errors into the virus’ genetic code once replication is underway. When enough copying errors occur, the virus is essentially killed off, unable to replicate any further.

But according to an article in Forbes the drug raises two key concerns. The first is the drug’s potential mutagenicity, and the possibility that its use could lead to birth defects or cancerous tumors. The second is a danger that is far greater and potentially far deadlier: the drug’s potential to supercharge SARS-CoV-2 mutations and unleash a more virulent variant upon the world.

The company claims the antiviral pill it’s developing can cut hospitalizations and deaths among people with COVID-19 by half. The results haven’t yet been peer reviewed. But if the drug candidate is authorized by regulators, it would be the first oral antiviral treatment for COVID-19. By contrast, the other currently authorized drugs must be delivered intravenously or injected.

A pill could make treating patients earlier on in their infection much easier – and more effective. It could also keep hospitals from overflowing, especially in places where vaccination rates are still low.

The other therapies on offer against COVID-19, Gilead Science’s antiviral remdesivir and a monoclonal antibody cocktail from biotech firm Regeneron, must be administered intravenously or by injection. That makes it difficult for people to access the therapies before they are sick enough to land in hospital. And remdesivir is approved only for those who are already hospitalized with COVID-19.

Molnupiravir was so effective in a phase 3 trial involving COVID-19-positive people at risk of severe illness that clinicians halted enrollment early.

Las Vegas Woman Pleads Guilty to $176 K EDD Fraud

A Las Vegas woman pleaded guilty to using at least 40 stolen identities to fraudulently collect approximately $175,622 in unemployment insurance benefits from the California Employment Development Department.

According to court documents and admissions made in court, Danielle Lacharis Buck (aka Danielle Lacharis Lakey), 45, participated in a scheme to defraud the California EDD into paying her approximately $175,622 in unemployment insurance benefits.

As part of the scheme, Buck obtained stolen identities through her job in the medical industry. She used her access to patient and co-worker information to steal personal identifying information – such as names, dates of birth, and social security numbers of unsuspecting individuals – and then electronically filed false unemployment claims using the stolen names and information.

In total, Buck filed more than 50 false unemployment insurance claims using at least 40 different stolen identities. She withdrew cash from an unemployment insurance benefits debit cards at ATMs in the Las Vegas and Los Angeles metropolitan areas.

Buck pleaded guilty to one count of mail fraud and one count of aggravated identity theft. She faces a statutory maximum penalty of 20 years in prison for mail fraud and a mandatory minimum two-year term in prison for aggravated identity theft. U.S. District Judge Kent J. Dawson scheduled sentencing for January 25, 2022.

Assistant U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.

The case was investigated by the DOL-OIG. Assistant U.S. Attorney Eric Schmale is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.

The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

Orange County Judge Hands Opiod Makers First Victory in Nation

An Orange County Superior Court Judge ruled late Monday that four drug companies can’t be held liable for that state’s opioid epidemic. Communities had hoped for tens of billions of dollars in compensation to help ease the addiction crisis.

It marked the first trial win for any drug companies in the more than 3,300 lawsuits filed by states and local governments over a drug abuse crisis that the U.S. government says led to nearly 500,000 opioid overdose deaths over two decades.

Attorneys representing four California counties argued the drug companies used false and misleading marketing to push up the sale of prescription opioids. The Sixth Amended Complaint asserted causes of action for False Advertising , Unfair Competition and Public Nuisance against the companies. The companies denied any wrongdoing.

Phase I of this case regarding liability was tried to the Court between April 19, 2021 and July 27, 2021 . No party requested trial by jury on any claim or issue. The entire trial was conducted remotely, via the Zoom platform. All parties rested on July 27, 2021. The Court set a briefing schedule for closing briefs, and closing arguments were heard on September 30, 2021 and October 1, 2021.

In his 41-page ruling, Superior Court Judge Peter J. Wilson said it was unclear the drug industry’s marketing efforts led to directly to a rise in illegal use of prescription opioid painkillers.

He also acknowledged that his Court is aware of the toll being taken on society by what has been variously referred to as the “opioid crisis” or the “opioid epidemic” and that the defendants do not dispute that there is an opioid crisis.

However he noted that “the California Legislature has approved, and continues to approve, the availability of opioid medications, through prescriptions, by passing the laws described” in the opinion.

The ruling went on to say “As the Historical and Statutory Notes to Business & Professions Code section 2241.5 state, “it is the intent of the Legislature to encourage physicians to provide adequate pain management to patients in California consistent with Section 2241.5.” And the California Legislature made clear its intention to expand, rather than restrict, the appropriate prescribing of opioid medications.

“In addition to its relevance to proof of the “unreasonableness” element of a public nuisance claim as discussed above, the absence of evidence concerning medically inappropriate prescriptions also breaks the chain of causation between Defendants’ alleged wrongful conduct and the harms complained of.

The ruling reviewed documents presented during the trial against each defendant in great detail, and concluded that none of the identified statements, within the applicable statute of limitations periods, to be false or misleading. An allegedly false or misleading statement in an internal company document, that was in no way published or disseminated before the public, would not qualify as “false advertising” under the statute or applicable cases.

The ruling concludes that “There will accordingly be judgment for Defendants on all claims.”

The ruling came as J&J and the three largest U.S. drug distributors – McKesson Corp, Cardinal Health Inc and AmersourceBergen — work to finalize a proposed deal to pay up to $26 billion to settle the thousands of cases against them. And a bankruptcy judge in August approved a settlement by OxyContin maker Purdue Pharma and its wealthy Sackler family owners of the claims against them that the company values at more than $10 billion.

In a statement, the lead lawyers overseeing related federal lawsuits against the companies — Jayne Conroy, Paul Farrell and Joe Rice — said they strongly disagreed with the ruling and stressed that it did not impact related cases nationally.

The only other opioid trial to reach a verdict resulted in an Oklahoma judge in 2019 ordering J&J to pay $465 million to the state. J&J is appealing that decision.

Trials are currently underway a New York case against Teva and AbbVie and in Ohio against three pharmacy chain operators. A West Virginia federal judge recently finished hearing evidence in a trial involving the distributors.

Vaccination Mandate Meltdown Increasing Coast to Coast

While the vast majority of employees across most industries and sectors have acquiesced to mandatory vaccine mandates, enough Americans are refusing to get the jab that states and municipalities are losing a dangerous game of chicken with employees who refuse.

On Saturday, the New York Post reported that 26 New York fire companies have been shuttered citywide due to staff shortages caused by the Covid-19 vaccine mandate.

The stunning lockdown came amid a pitched battle between City Hall, which will start enforcing a mandate Monday that all workers have at least one dose of the COVID-19 vaccine – and jab-resisting fire fighters, many reportedly saying they were already sick with the coronavirus and therefore have “natural immunity.”

Across the Rockies, Los Angeles Country Sheriff Alex Villanueva has warned of an “imminent threat to public safety” caused by a “mass exodus” of thousands of deputies and civilian personnel who refuse to take the jab. “I could potentially lose 44% of my workforce in one day,” he wrote in a Thursday open letter to the Board of Supervisors, adding that he can’t enforce “reckless mandates that put public safety at risk.”

The Sheriff’s Department – the largest in the country – employs approximately 18,000 people. About half are sworn deputies.

Meanwhile in Arizona, a Tucson Water employee claims the department is ‘losing staff’ over the mandate. “We are watching employees walk out as I speak in the water quality and operations division,” reports KOLD13.  “We’re pulling people from other areas and other departments to help specifically cover the operations division which is overseeing the water quality and drinking water parameters,” the whistleblower added.

And American Airlines cancellations are disrupting transportation. The company scrubbed more than 1,900 flights over the weekend,  Company officials deny that the problem is related to a protest of the vaccine mandate. However, its phenomena is so similar to the massive cancellation Southwest had just a few months ago, as to raise questions about the cause.

The Chicago Fraternal Order of Police won a small victory in its fight against a city employee Covid-19 vaccine mandate on Monday when a county judge temporarily lifted the mandate’s requirement that all police be fully vaccinated or have a valid exemption by Dec. 31.

Cook County Judge Raymond Mitchell’s order still allows the city to put officers who refuse to report whether they are vaccinated on no-pay status, but it prevents the city from disciplining police who are not fully vaccinated or exempt by the end of the year.