Class Action

Expert Analysis

• An Underused Arsenal Of Securities Suit Defenses

  

  Both case law and academic studies indicate that 20 years after its enactment, the Private Securities Litigation Reform Act is not being used as zealously as either Congress intended or its provisions allow. Given the chilling effect that the PSLRA’s mandatory Rule 11 review should have on frivolous securities lawsuits, why isn’t this provision more frequently invoked? asks Jonathan Hackbarth of Quarles & Brady LLP.

• 5 TCPA Lawsuits Of Note In 2014

  

  Last year was an iconic one for class actions involving Telephone Consumer Protection Act violations and there is no sign 2015 will be any different. To avoid TCPA lawsuits, companies should equip themselves with an intelligent predictive dialer integrated with their marketing campaigns that filters out numbers listed in the Do Not Call Registry, says Francis Cyriac of Texo.cc.

• A Data Security Checklist For Companies Hiring Law Firms

  

  We trust our law firms with huge amounts of data, whether in or out of discovery, investigations or litigation. All too often, we have relied on privilege, confidentiality and attorney ethics as a proxy for data protection and information security. But in fact, law firms ought to be held to a much more stringent standard — and in-house counsel would be wise to begin with a number of specific inquiries, says legal industry consultan... (continued)

• Gelboim Does Little To Limit MDL Court Appeals Discretion

  

  While the U.S. Supreme Court’s Gelboim v. Bank of America ruling is an important one in multidistrict litigation jurisprudence, it ultimately does little to impinge on the wide discretion MDL courts have in deciding what gets appealed and when. District courts continue to possess the tools needed to avoid final judgments during pretrial MDL proceedings, say Adam Schramek and Eric Hoffman of Norton Rose Fulbright US LLP.

• 8th Circ. Continues Trend Of Rigorous Rule 23 Analysis

  

  The Eighth Circuit’s recent opinion in Powers v. Credit Management Services Inc. is consistent with a recent trend of requiring a more thorough Rule 23 analysis from trial courts and plaintiffs in class actions — a trend that started with the U.S. Supreme Court's Wal-Mart Stores Inc. v. Dukes ruling, say David Carpenter and Amanda Waide of Alston & Bird LLP.

• Can Silence Keep You Safe? New Debate On 10b-5 Liability

  

  The Second Circuit’s decision in Stratte-McClure v. Morgan Stanley eliminates the ability of a company, when facing a known material trend or uncertainty, to escape liability under Rule 10b-5 by not saying anything. The dramatic consequences of the resulting split with the Ninth Circuit makes it likely that the U.S. Supreme Court will step in, says Michael Eisenkraft of Cohen Milstein Sellers & Toll PLLC.

• Statutory Compliance In Calif. Just Got More Technical

  

  While Flannery v. VW Credit Inc. applies to a narrow issue concerning California’s Vehicle Leasing Act, consumer lawyers are more likely to challenge even the most technical and inconsequential statutory violations — and they are more likely to prevail in light of Flannery, say Scott Pearson and Joseph Escarez of Seyfarth Shaw LLP.

• Whirlpool Case Is Instructive Of Rule 23(a) Requirements

  

  Day v. Whirlpool Corp. underscores the importance of Rule 23(a) criteria for class certification and the rigorous analysis district courts will undertake when certification is sought for settlement. Since movants made short shrift of numerosity and adequate representation, they failed to satisfy Rule 23(a) requirements, says Ruben Reyna of Sedgwick LLP.

• The Top 10 D&O Stories Of 2014

  

  Many of last year’s key events represented significant changes in the directors and officers liability environment — the rise of jumbo derivative lawsuit settlements, cybersecurity emerging as a D&O liability concern and the surge of initial public offering-related securities litigation, among others. In addition, there are many pending issues that will only be resolved as 2015 unfolds, says Kevin LaCroix of RT ProExec.

• How To Fix FLSA For Both Employees And Employers

  

  The Fair Labor Standards Act generally doesn’t permit employees and employers to resolve wage disputes short of litigation or agency complaints. There is no good reason why employees can be trusted to resolve other employment disputes without litigation or an agency complaint but can't be trusted to do so with regard to wage claims, says Michael Kun of Epstein Becker & Green PC.