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4th Cir.: U.S. ex rel Oberg v. Nelnet- Improperly Sealed Pleadings violate the First Amendment

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By Ed Boltz, 15 July, 2024

Summary:

Jon Oberg filed a False Claims Act lawsuit in 2007 against various student-loan companies, alleging they submitted false claims to the Department of Education.  The companies moved to file summary judgment materials under seal, which was temporarily granted. The case eventually settled, and the sealed documents were not revisited.  In  2023,  Michael Camoin, a documentary filmmaker, later requested access to these sealed documents, claiming a right to access under the First Amendment, but the magistrate judge denied Mr.  Camoin’s request, concluding that the documents did not play an adjudicative role since the case settled before summary judgment was decided.  On appeal, the Fourth Circuit held that the First Amendment right of access applies to documents filed in connection with summary judgment motions, regardless of whether the court ruled on the motions.  This right of access attaches upon the filing of the documents and is intended to ensure transparency and public understanding of judicial proceedings.

Commentary:

Oh, no!  Now the release of these documents might suddenly make the public think badly of Nelnet and other student loan servicers.

This also implicates the sealing of documents in bankruptcy cases,  including for example the special proceeding(s) related to BB&T/Truist ( see   MDNC case number in 23-mp-00401),  which was sealed in 2023 and remains so,  despite assurances that such documents would be unsealed before the end of that year.  All too often  it seems that the temporary nature of such protection is forgotten and  misdeeds are permanently hidden  from public view.  See also Legal Newsline v. Garlock Sealing Technology,  where the district court, after castigating both itself and the bankruptcy court,  set out standards for taking the extraordinary measure for maintaining documents under seal.

With proper attribution,  please share this post. 

 

To read a copy of the transcript, please see:

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us_ex_rel_oberg_v_nelnet.pdf (205.87 KB)
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4th Circuit Court of Appeals

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