Class Action

  • May 4, 2016

    CFPB Unleashes Draft Rule On Arbitration Clauses

    The Consumer Financial Protection Bureau released a highly anticipated proposed rule Thursday to ban consumer financial services providers from prohibiting customers, through contracts with mandatory arbitration clauses, from filing or joining class actions.

  • May 4, 2016

    9th Circ. Questions Nixing Of Gym Members' Text-Spam Suit

    A Ninth Circuit panel on Wednesday probed a lower court’s decision to dismiss a certified class of 80,000 gym users who claim they were illegally spammed with texts from Vertical Fitness, saying it’s unclear they consented to texts by providing phone numbers on membership applications.

  • May 4, 2016

    Peregrine Knew Cancer Drug Trials Were Bunk, 9th Circ. Told

    A Peregrine Pharmaceuticals shareholder urged the Ninth Circuit on Wednesday to revive his stock-drop class action alleging the drugmaker puffed up its share price with false positive news about its lung cancer drug bavituximab, arguing the company must have known that data came from a flawed experiment.

  • May 4, 2016

    Planned Parenthood Sues Kansas For Pulling Medicaid

    Two Planned Parenthood affiliates launched a proposed class action in Kansas federal court Wednesday seeking to block state officials from ending Medicaid reimbursements to the organization, a decision they argued was based on discredited videos purporting to show the group encouraged the illegal sale of fetal tissue.

  • May 4, 2016

    Apple Urges 9th Circ. To Let Speech-Recognition Suit Lie

    Apple Inc. urged a federal appeals court on Tuesday not to reconsider a finding that customer complaints about the powers of Siri, the iPhone's speech-recognition agent, were too vague to sustain a class action.

  • May 4, 2016

    Short-Packing Claims Against Mulch Maker Remain Alive

    The consumer leading a proposed class action accusing mulch manufacturer Gro-Well Brands of underfilling its bags has sufficiently pled that he relied on the bags' labels, and Gro-Well isn’t protected by state packaging laws, a California federal judge concluded Wednesday, mostly nixing the company's motion to dismiss.

  • May 4, 2016

    Taxis Respond To Miami Uber Law With $1B Class Action

    Taxicab companies hit Miami-Dade County with a putative class action seeking upward of $1 billion Wednesday, a day after its county commissioners approved a draft ordinance legalizing ride-hailing providers such as Uber and Lyft.

  • May 4, 2016

    8th Circ. Boosts TCPA Class Cert. Bids In Medtox Ruling

    The Eighth Circuit on Tuesday lowered the bar for obtaining class certification in Telephone Consumer Protection Act cases in reviving a putative class action over junk faxes sent by a lead testing company, emboldening an already ravenous plaintiffs bar intent on making cases as large as possible in order to capitalize on the potential for hefty statutory payouts.

  • May 4, 2016

    Bayer Wants All Mirena IUD Cases Tossed For Lack Of Experts

    Looking to escape the sprawling multidistrict litigation alleging its Mirena intrauterine contraceptive devices were defective and harmed patients, Bayer HealthCare told a New York federal judge Wednesday that because nearly all of the women’s experts have been excluded, none of them can prove their case.

  • May 4, 2016

    Jay Peak Honchos Hit With Suit Over Alleged EB-5 Scheme

    An investor launched a class action Tuesday in Florida federal court against both the chairman and CEO of Jay Peak Inc. ski resort to recover funds obtained under the EB-5 immigrant investor program that they allegedly misused and stole, following the U.S. Security and Exchange Commission’s high-profile suit filed last month.

  • May 4, 2016

    Ex-NCAA Champs Fight To Revive Likness Suit At 9th Circ.

    Two former Division III college basketball players struck back against a company that sold photos of them in action in an effort to revive their proposed class action over publicity rights, telling the Ninth Circuit that if the dismissal of their suit is allowed to stand it would undermine decades of cases finding publicity rights in a person's likeness itself. 

  • May 4, 2016

    Del. Top Court Told Of Conflicts In Zale-Signet Merger

    A Delaware court’s dismissal of class challenges to the $690 million Zale Corp.-Signet Jewelers Ltd. merger last year failed to give proper weight to alleged board and financial adviser conflicts and contradictory claims about the price, shareholder attorneys told Delaware’s Supreme Court on Wednesday.

  • May 4, 2016

    Del. Action Against CytRx Stayed Pending Calif. Court Deals

    A Delaware Chancery Court judge has stayed a derivative action accusing biopharmaceutical company CytRx Corp.'s board of sanctioning a brazen stock-pumping scheme, finding the suing investors filed their case late and giving deference to two pending California federal court class settlements in the pipeline from earlier actions.

  • May 4, 2016

    Uber Drivers Must Arbitrate Fla. Wage Suit, Judge Says

    Ride-hailing giant Uber beat a proposed collective action in Florida alleging it failed to pay drivers minimum wage and overtime, after a federal judge ruled Wednesday that the drivers must arbitrate their claims individually because they failed to opt out of Uber’s arbitration provision.

  • May 4, 2016

    Pershing Sued Again Over $7.2B Stanford Ponzi Scheme

    Pershing LLC was hit in New Jersey federal court Tuesday with another putative class action from victims of convicted fraudster Robert Allen Stanford’s $7 billion Ponzi scheme who say the clearing firm facilitated and profited from Stanford’s bilking of thousands of investors.

  • May 4, 2016

    Libor Traders Say 11th Circ. Decision Boosts Class Claims

    A group of futures market traders urged a New York federal judge Tuesday not to let Rabobank move to toss their class action claims from a suit over its alleged Libor manipulation, saying a recent Eleventh Circuit decision bears out their argument that dismissing the claims before discovery would be premature.

  • May 4, 2016

    Investors Want Final Approval Of $150M 'London Whale' Deal

    Investors who sued JPMorgan Chase & Co. over alleged fraud tied to the bank’s “London Whale” trading disaster asked a New York federal judge to finalize their $150 million settlement on Tuesday, saying that the class overwhelmingly supports the deal.

  • May 4, 2016

    Consultant Wants New Pa. Rule On Fee-Sharing With Firms

    The attorney for a former consultant to investor class action specialists Barrack Rodos & Bacine, who claims he has been cut out of $1.5 million from an oral fee-sharing agreement, asked the Pennsylvania Superior Court on Wednesday to deliver a ruling that protects individuals who ink arrangements with firms.

  • May 4, 2016

    Conde Nast Says Mich. Law Update Dooms Subscriber's Suit

    Conde Nast told a New York federal judge on Tuesday that a new Michigan law is the final nail in the coffin for a proposed class action alleging the publishing giant violated customers’ privacy by selling information about them to data miners and other third parties.

  • May 4, 2016

    NCAA Can't Duck Fee Bond Amid Likeness Appeal: Players

    A class of college athletes who won the right to be compensated for the use of their likenesses in video games asked a California federal court Tuesday to force the NCAA to set aside more than $42 million in attorneys' fees and costs as it appeals, saying such an order would encourage swift resolution.

Expert Analysis

  • What Is Your Squirm Factor?

    Ross Laguzza

    The fact that jurors are a captive audience doesn’t mean they are any more invested in your presentation than people who walk out of a boring movie. Jurors can’t physically leave, but they can and do mentally check out. If you are a trial lawyer, you should think about whether your squirm factor is high, moderate or low — and what, if necessary, you can do to change it, says Dr. Ross Laguzza of R&D Strategic Solutions.

  • Scalia’s Vacancy Shifts High Court On Class Actions

    Brian S. Kabateck

    In the wake of U.S. Supreme Court Justice Antonin Scalia’s death the pendulum may already be swinging back in favor of class actions. In fact, the post-Scalia court now sits divided evenly on business litigation issues, or perhaps even favoring consumers for the first time in a long time, say Brian Kabateck and Natalie Pang at Kabateck Brown Kellner LLP.

  • Gig Economy: Are Your Workers Employees? The 6-Part Test

    Rachel Bien

    Unfortunately, many sharing economy companies have tried to have it both ways — benefiting from the cost savings of calling workers independent contractors while at the same time treating them as employees in most other respects. Guidance from the U.S. Department of Labor suggests that many of these companies have misclassified their workers as independent contractors, say Rachel Bien and Cara Chomski of Outten & Golden LLP.

  • Gig Economy: The Case For Local Regulation Of Ride Apps

    Peter M. Mazer

    “The operation of taxicabs is a local business,” declared the U.S. Supreme Court more than 60 years ago. Hence, standards for on-demand transportation exist at the local or state level to adapt to local needs and the regulatory and political climate of the locality. The onset of ride-sharing has significantly altered this dynamic, says Peter Mazer, general counsel of the Metropolitan Taxicab Board of Trade in New York.

  • The Fight For Streaming Royalties Is Going Over The Top

    Nathaniel L. Bach

    A short-lived class action seeking allegedly unpaid royalties for content that World Wrestling Entertainment sold or licensed to both Netflix and to WWE Network is a free lesson in the challenges that both new and traditional over-the-top licensors may face, and how profit participant plaintiffs might seek to pursue networks and broadcasters for streaming royalties going forward, says Nathaniel Bach of Gibson Dunn & Crutcher LLP.

  • Interpreting Duran V. US Bank In The Aftermath Of Tyson

    Steven D. Allison

    The decisions in Duran v. U.S. Bank and Tyson Foods v. Bouaphakeo seem like mirror images. One approved the use of statistical sampling to establish an employer’s liability, the other rejected the same method in a similar case. But on closer inspection, the U.S. Supreme Court’s reasoning in Tyson is more similar to the California Supreme Court’s in Duran than the outcomes would suggest, say attorneys at Crowell & Moring LLP.

  • Gig Economy: Changes We Need And Changes We Don't Need

    Joseph V. Kennedy

    Many public officials believe that the sharing economy poses novel dangers that require new government powers. This approach is mistaken. Existing regulations give regulators all the authority they need. In some cases, however, existing law needs to be updated — especially labor law, says Joseph Kennedy, a senior fellow with the Information Technology and Innovation Foundation and former chief economist for the U.S. Department of Commerce.

  • A Powerful Tool For Indiana Securities Defendants

    Gude_Alex_BinghamGreenebaum.jpg

    A defendant faced with an Indiana Securities Division action or a private lawsuit has a variety of arguments at its disposal. Alex Gude of Bingham Greenebaum Doll LLP looks at one argument — loss causation — that has the potential to defeat many claims based on the provisions of the Indiana Uniform Securities Act.

  • OPINION: Engaging The Media May Help Your Client

    Liz Mair

    While I am confident that the decisions in Windsor and Obergefell were made on the basis of the dictates of the Constitution, I am also confident that the communications efforts undertaken gave the justices additional comfort to make the right call, and ensured that these decisions were not treated as a Roe v. Wade redux, says Liz Mair, former online communications director for the Republican National Committee and president of Mair Strategies.

  • Class Actions And Rule 23 Amendments: The Road Ahead

    Henry J. Kelston

    The amendments to Federal Rule of Civil Procedure 23 recently passed a major hurdle on the way to possible adoption. Henry Kelston, a partner at Milberg LLP, examines the potential impact of the proposed changes, which will primarily affect Rule 23 provisions governing class action settlements.