Class Action

  • September 2, 2015

    Porsche Owners Fails To Recuse Judge In Defect Suit

    A California federal court refused Wednesday to recuse the judge overseeing a proposed class action alleging Porsche Cars North America Inc. concealed the safety risk of certain dashboards, despite the jurist's having defended the automaker early in his legal career.

  • September 2, 2015

    AAA Slapped With Suit Over Hotel Booking Fees

    AAA was hit Wednesday with a putative class action in Florida federal court accusing the auto club of overcharging members for hotel room bookings it was supposed to be discounting.

  • September 2, 2015

    Lower Sioux Wrongly Targeted Plaintiffs' Counsel, Court Told

    The Lower Sioux Indian Community inappropriately launched a personal attack on an attorney representing descendants of the Mdewakanton people in a recent brief over sanctions lodged in the parties' land dispute, the attorney's colleague told a Minnesota federal judge Tuesday.

  • September 2, 2015

    Pharmacia Shakes Schools’ Toxic Light Ballasts Suit

    An Alabama federal judge on Tuesday tossed a putative class action targeting Pharmacia Corp. over costs to replace toxic fluorescent light ballasts in schools nationwide, finding that the Tuscumbia City School System had failed to adequately back up its claims.

  • September 2, 2015

    Staples Exits Drivers' Wage-And-Hour Class Action In NJ

    Staples Inc. for now has exited a putative class action in New Jersey state court accusing the office supply giant of trying to conceal an employer-employee relationship with drivers and denying them proper wages.

  • September 2, 2015

    Wal-Mart Hit With FLSA Suit From Florida Worker

    A Fair Labor Standards Act putative class action accusing Wal-Mart Stores Inc. of failing to pay a Miami-area worker the required minimum wage was removed to Florida federal court on Wednesday.

  • September 2, 2015

    Insurer Says '100% Natural' Claims Don't Trigger Policies

    The Cincinnati Insurance Co. told a Missouri federal court Tuesday that it’s not obligated to defend Enjoy Life Natural Brands LLC in a putative class action accusing the allergen-free food company of concealing a synthetic ingredient in "100% natural" products, claiming that the economic damages requested in that suit don’t trigger its policies.

  • September 2, 2015

    Mercedes Drivers Say Faulty Rims Common Among Models

    Drivers suing Mercedes-Benz USA LLC over allegedly defective tire rims not covered under warranty defended their bid for liability-only class certification Tuesday, telling a New Jersey federal judge their motion isn’t precluded by the failure occurring on a variety of models.

  • September 2, 2015

    2nd Circ. Deflects Class Cert. Challenges In MLB Cable Row

    The Second Circuit on Tuesday refused to hear appeals over class certification in an antitrust suit by a group of television subscribers who say they have overpaid to watch MLB games because of collusion between the league and pay-TV providers Comcast Corp. and DirecTV LLC.

  • September 2, 2015

    Top LA Eateries Plotted Price Hike For ACA Costs, Suit Says

    A group of Los Angeles’ most prominent restaurants, including Lucques and Animal, were hit with a putative antitrust class action Tuesday alleging their owners orchestrated a price-fixing conspiracy to cover the costs of employees’ health care required under the Affordable Care Act.

  • September 2, 2015

    Ex-John Kerry Counsel, Susman Partner Joins Gibson Dunn

    A former Susman Godfrey LLP partner and legal counsel to then-U.S. Sen. John Kerry has joined Gibson Dunn & Crutcher LLP in Dallas, where he will handle class action, securities, antitrust and other commercial litigation work.

  • September 2, 2015

    UPMC-Highmark Price Conspiracy Claims Get Go-Ahead

    A Pennsylvania federal judge ruled Tuesday that an Allegheny County hotel could proceed with class action claims that Highmark Inc. and the University of Pittsburgh Medical Center inflated the price of small group insurance plans by conspiring to exclude competitors from the market.

  • September 2, 2015

    Judge Ignored Fla. Law In Turtles IP Suit, 11th Circ. Told

    A Florida federal judge ignored state copyright law that should have governed his decision when he wrongly granted Sirius XM Radio a win over members of the rock band The Turtles, the band told the Eleventh Circuit Tuesday.

  • September 2, 2015

    Universal Theme Park Hit With FCRA Employment Class Action

    Universal Studios Orlando, the theme-park and resort operator owned by NBCUniversal Inc., was hit with a putative class action accusing it of not properly disclosing that it was using credit reports on current and prospective employees to make employment decisions, according to a lawsuit removed to federal court on Tuesday.

  • September 2, 2015

    SoulCycle Bilks Clients With Fast-Expiring Vouchers, Suit Says

    Indoor cycling company SoulCycle Inc. defrauds customers by requiring them to purchase expensive certificates with short windows to enroll in classes then keeping the expired certificates' unused balances, according to a recent proposed class action in California federal court.

  • September 2, 2015

    Chrysler Beats Most Of Power Module Defect Suit

    A New York federal judge gutted a proposed class action accusing Chrysler Group LLC of concealing a power module defect in its vehicles, ruling on Monday that about two-thirds of their multistate claims lack sufficiently detailed factual allegations.

  • September 2, 2015

    Petco Groomers Push For Cert. In Clipped Wages Suit

    A group of current and former Petco Animal Supply Stores Inc. pet groomers urged a New York federal court on Monday to conditionally certify a class action claiming the chain forced thousands of groomers to pay for grooming tools required for them to perform their jobs.

  • September 2, 2015

    Blu E-Cigs Targeted In Proposed Formaldehyde Class Action

    An Imperial Tobacco Group PLC unit and others behind Blu brand electronic cigarettes have failed to warn consumers that the tobacco alternative contains “significant amounts” of formaldehyde, a known carcinogen, according to a proposed class action filed in California federal court on Tuesday.

  • September 2, 2015

    Ex-Willkie Farr Atty Admits Info Sharing In $7B Interchange Deal

    A lawyer who represented Mastercard Inc. admitted in a New York federal court filing late Tuesday that she used information from opposing counsel in a $7.25 billion deal to settle multidistrict litigation over Mastercard, Visa Inc. and other banks' interchange fees. 

  • September 1, 2015

    Safeway Liable In $30M Grocery Delivery Markup Row

    A California federal judge on Monday found Safeway Inc. liable for $30 million in a breach-of-contract class action brought by customers who claim the grocer overcharged for delivered groceries when it had promised price parity with store-bought merchandise.

Expert Analysis

  • Dole Ruling Warns Not To Undermine MFW Protections

    Gregory Markel

    The $148 million in damages levied last week against Dole Food Co. Inc. CEO David Murdock and former general counsel C. Michael Carter emphasizes that controlling stockholder transactions that employ the dual procedural protections set out in MFW must actually adhere to the substance and purpose of those protections, say attorneys with Cadwalader Wickersham & Taft LLP.

  • The High Court's Key Jurisdiction Question In Manning

    Matthew Tobin

    The circuits are divided on whether federal jurisdiction can be grounded in the first instance on Section 27 of the Securities Exchange Act, which states that federal courts “shall have exclusive jurisdiction” of violations arising under the act’s regulations. The resolution of this issue by the U.S. Supreme Court in Manning v. Merrill Lynch Pierce Fenner & Smith Inc. stands to affect not just Exchange Act claims, say Matthew Tobin... (continued)

  • The Greatest Cybersecurity Risk Comes From Within

    Ann M. Caresani

    There are essentially three categories of risk when it comes to the exposure of employee data — hackers, malicious insiders and negligent insiders. Though often an afterthought by companies, it is this third category that poses the greatest risk to the security of employee data, say Ann Caresani and Christine Snyder of Tucker Ellis LLP.

  • Litigation Risk For HFT Facilitators Fades Fast

    Kathleen Massey

    A New York federal judge’s decision last week dismissing all claims against several U.S. stock exchanges and a dark pool operator is just the latest defeat for plaintiffs firms hoping to put high-frequency trading on trial in the wake of Michael Lewis’ book “Flash Boys,” say Kathleen Massey and Jeffrey Benner of Dechert LLP.

  • Competitors Push Back With False Advertising Laws

    Eric W. Buetzow

    As the Tenth Circuit recently recognized, false advertising causes of action are providing a robust weapon against overly aggressive and often youthful firms who “cross the line from harmless hyperbole into underhanded deception with material commercial consequences.” However, the current landscape is not a complete boon for competitor plaintiffs, says Eric Buetzow of Zelle Hofmann Voelbel & Mason LLP.

  • TCPA Issues Familiar And Unique To Health Care Providers

    Lewis S. Wiener

    Many of the issues facing health care companies under the Telephone Consumer Protection Act are similar to other industries — consent and the scope of that consent, reassigned numbers, opt-outs and large potential exposure to statutory damages. However, the Federal Communications Commission's recent TCPA order also holds a new exemption for the health care industry, say attorneys at Sutherland Asbill & Brennan LLP.

  • Price Impact Analysis — Where The Halliburton Court Erred

    Bjorn I. Steinholt

    The Northern District of Texas’ July 2015 decision in Halliburton has already been touted as a “bellwether” opinion on how to prove the absence of price impact to defeat class certification. Unfortunately, the opinion is based partly on a common fallacy — that the absence of statistical significance proves the absence of price impact, says Bjorn Steinholt, managing director at economics consulting firm Caliber Advisors Inc.

  • Flawed Logic In DOL's Proposed White Collar Salary Test

    Deborah K. Foster

    The U.S. Department of Labor's justification for the historically high salary test for the white collar exemptions to the Fair Labor Standards Act is based on the assumption that workers who will fail the new salary test would also fail the duties test. However, comparisons of the likelihood of passing the duties test to average salaries by occupation demonstrate that assumption does not always hold, say economists at Edgeworth Economics LLC.

  • 7th Circ. Again Limits Dukes, This Time In Teacher Case

    Gerald L. Maatman Jr.

    Chicago Teachers Union Local No. 1 v. Board of Education of the City of Chicago is significant for employers in that the Seventh Circuit, as it did in McReynolds v. Merrill Lynch Pierce Fenner & Smith Inc., certified a race discrimination class action even though the final alleged discriminatory decisions were based on subjective decisions by multiple decision makers. In so doing, the court further limited Wal-Mart Stores Inc. v. D... (continued)

  • Congress Must Come To The Defense Of Class Actions

    Lauren G. Barnes

    Without congressional action, ubiquitous binding arbitration clauses and class action bans — upheld by the U.S. Supreme Court — will continue to lead to the predictable result of both unfairness to injured consumers and a systemic failure to hold companies accountable for abusing the trust placed in them, says Lauren Barnes of Hagens Berman Sobol Shapiro LLP.