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Class Action
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April 12, 2024
Connecticut Credit Union Settles Overdraft Fee Lawsuit
Connecticut-based Connex Credit Union Inc. has agreed to settle a proposed class action that challenged $35 overdraft fees in "authorize positive, settle negative" transactions, according to a request that seeks to cancel a state court hearing in the matter.
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April 12, 2024
Petition Watch: Judge DQs, 'Excessive' Damages & Price Wars
A former al-Qaida member has asked the U.S. Supreme Court to clarify disqualification protocol for judges overseeing a case related to their prior work as a government attorney, and energy drink manufacturers want the court to develop a modern-day test to determine if companies qualify as price-discrimination competitors. Here's four high court petitions filed recently that you might've missed.
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April 12, 2024
NY Health Network To Pay $1M For Deceptive COVID Test Bills
Long Island, New York-based hospital network Northwell Health will pay $1 million over allegations that it fraudulently billed patients for a hospital visit after they came for what they thought was a free COVID-19 test, the state's attorney general said Friday.
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April 12, 2024
Tyco Reaches $750M PFAS Deal In Foam Co. MDL
Johnson Controls International PLC subsidiary Tyco Fire Products LP on Friday agreed to pay $750 million to settle public water systems' federal claims that some "forever chemicals" they detected in their supplies came from firefighting foam it made.
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April 12, 2024
Chicago Water Workers' Race Bias Suit Headed To Trial
The City of Chicago can't dodge a lawsuit alleging its water management department created a work environment replete with racist slurs and subjected Black workers to harsher punishment than white colleagues, with an Illinois federal judge ruling Friday the workers provided enough evidence to proceed to trial.
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April 12, 2024
Abbott Labs Gets Price Claims Tossed In Baby Formula MDL
An Illinois federal judge on Friday threw out a suit from parents alleging that Abbott Laboratories benefited from increased prices during a shortage of baby formula kicked off when one of its facilities was shut down, saying they haven't shown that the company's profits during that time were unjustly retained.
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April 12, 2024
Journalists Say WARN Act Claims Perfect For Class Cert.
Workers for the now-shuttered digital media startup The Messenger urged a New York federal judge Friday to certify a class of hundreds of staffers who were terminated with no advance notice in violation of the Worker Adjustment and Retraining Notification Act, saying the law is suited for class wide proceedings.
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April 12, 2024
5th Circ. Says High Court Ruling Buoys ERISA Suit
The Fifth Circuit has reinstated a proposed class action alleging an outpatient surgery network failed to trim expensive share classes and high fees from its retirement plan, after applying a newly enacted plan participant-friendly analysis of federal benefit law claims established by the U.S. Supreme Court.
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April 12, 2024
Bimbo Beats False Ad Suit Over 'All Butter' Entenmann's Cake
Bimbo Bakeries defeated a proposed class action alleging its Entenmann's brand "All Butter" loaf cake is misleading to customers since the butter taste is partially sourced from artificial vanillin, after a Maryland federal judge said Friday the claims are preempted by the U.S. Food Drug and Cosmetic Act.
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April 12, 2024
Credit Suisse, Lloyds, Others Ink $3.5M Libor Deal
Plaintiffs in the yearslong suit alleging various big banks manipulated the London Interbank Offered Rate, or Libor, have reached a $3.45 million settlement with Credit Suisse AG, Lloyds Bank and others, bringing the total settlement recovery amount to more than $780 million.
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April 12, 2024
Mercedes-Benz Gets Fraud Claims Clipped In Brake Suit
A Washington federal judge has thrown out the bulk of a man's claims in a proposed class action alleging Mercedes-Benz USA LLC sold vehicles with defective brake sleeves that can cause corrosion, finding he hasn't adequately pled that the company fraudulently hid the existence of the alleged defect.
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April 12, 2024
Off The Bench: Ohtani 'Victim' In Theft, Arbitration Nod To NFL
In this week's Off The Bench, Shohei Ohtani looks to get off the hook on sports-betting allegations while his former interpreter faces charges, the NFL wins a critical court victory in the Brian Flores lawsuit, and troubled WWE founder Vince McMahon cuts even more financial ties with the company.
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April 12, 2024
Zoll Says 'Cookie-Cutter' Hack Claims Don't Show Harm
Zoll Medical Corp. is asking a Boston federal judge to toss a proposed class action brought by medical device customers whose personal information was released during a ransomware attack last year and an earlier data breach in 2019, arguing the consumers weren't actually injured.
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April 12, 2024
HomeStreet Hit With Shareholders Suit Over FirstSun Merger
Banking company HomeStreet Inc. has been hit with a proposed class action alleging that it failed to disclose details about the sale process of its merger with FirstSun Capital Bancorp., saying that the company entered into the agreement with "little to no consideration" to any of its shareholders.
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April 12, 2024
Justices Limit Shareholder Suits Over Corporate Disclosures
A unanimous U.S. Supreme Court on Friday ruled that a corporation's failure to disclose certain information about its future business risks, absent any affirmative statement that would make such silence misleading, cannot itself be the basis of a private securities fraud claim.
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April 12, 2024
High Court Keeps Arbitration Exemption's Focus On Workers
The U.S. Supreme Court held Friday that distributors who delivered Tastykake, Wonder bread and other baked goods to retailers may qualify for an exemption from the Federal Arbitration Act that could let them keep their wage-and-hour suit in court.
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April 11, 2024
Gerber, Others Must Face Calif. MDL Over Baby Food Toxins
A group of baby food manufacturers, including Gerber Products Co., Hain Celestial Group Inc. and Beech-Nut Nutrition Co., must face consolidated lawsuits alleging that heavy metals in their products cause autism spectrum disorder and other conditions in California federal court, the Judicial Panel on Multidistrict Litigation ruled Thursday.
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April 11, 2024
UnitedHealth Patients' Addiction Coverage Suit Revived, Again
The Ninth Circuit on Thursday revived for the second time a proposed class action accusing UnitedHealth of wrongly rejecting coverage for outpatient substance use disorder treatments in violation of federal benefits law, finding the plaintiff plausibly alleged the insurer employed an excessively strict review process for those claims.
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April 11, 2024
Orrick To Pay $8M To Settle Data Breach Litigation
A proposed class of data-breach victims asked a California federal judge Thursday to greenlight an $8 million settlement with Orrick Herrington & Sutcliffe LLP in litigation over a March 2023 data breach that purportedly exposed Social Security numbers and other personal information of more than 638,000 individuals.
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April 11, 2024
REIT Hit With Suit By Ex-CEO Over Share Buyback Conflict
A real estate investment trust has been hit with a proposed class action by its former CEO alleging the company's insiders breached their fiduciary duties by failing to make a legitimate effort to repurchase certain preferred shares prior to their redemption date, leading to severe dilution of the common shares.
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April 11, 2024
Judge Calls Out Colo. For Limiting Prisoner Calls With Attys
A Colorado state judge on Thursday said the state's prisons seemed to be imposing "draconian" limits on virtual calls between prisoners and their lawyers, telling officials to figure out how to do more for those seeking to join a proposed class action accusing the state of using them for slave labor.
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April 11, 2024
Summary Judgment 'Waste Of Time' In 401(k) Suit, Judge Says
Boston College will face a trial in a suit accusing the school of mismanaging its 401(k) retirement plans after a Massachusetts federal judge issued a 126-page memorandum Thursday in which he blamed himself for a "monumental waste of time" that was the two sides' summary judgment proceeding.
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April 11, 2024
Visa Beats Some Merchant Claims In Antitrust MDL
A New York federal judge has trimmed claims lodged by Home Depot and other merchants against Visa and several banks in sprawling multidistrict antitrust litigation dating back to 2005 over network rules forcing merchants to accept the companies' cards.
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April 11, 2024
2nd Circ. Rules Flores Can't Block NFL's Arbitration Challenge
The Second Circuit on Thursday handed the NFL a win in its effort to overturn a decision that kept former Miami Dolphins head coach Brian Flores' racial discrimination lawsuit out of arbitration, ruling Flores cannot cross-appeal the NFL's appeal of a lower court decision leaving the suit in federal court.
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April 11, 2024
Ernest Health Hit With Suit After Cybercriminal Data Breach
A group of former Ernest Health Inc. patients has hit the Texas-based hospital system with a proposed class action after a notorious group of cybercriminals breached the company's systems, saying that the company should've done more to protect patient data in a Thursday complaint.
Expert Analysis
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FTC Settlements Widen Efforts To Shield Health Data
The Federal Trade Commission's recent enforcement actions aim to send a clear message that companies using tracking technologies should carefully monitor the sharing of sensitive data, particularly in the mental health, substance use disorder treatment and reproductive health care fields, say attorneys at Choate.
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A Festival Of Litigation Could Arise From 'Electric Zoo' Fiasco
Over Labor Day weekend, thousands of electronic dance music fans were displeased with the organization of the New York City-based Electric Zoo festival, which quickly elicited comparisons to the 2017 Fyre Festival — and three kinds of litigation could ensue from the debacle, say attorneys at Seiden Law.
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Law Firm Professional Development Steps To Thrive In AI Era
As generative artificial intelligence tools rapidly evolve, professional development leaders are instrumental in preparing law firms for the paradigm shifts ahead, and should consider three strategies to help empower legal talent with the skills required to succeed in an increasingly complex technological landscape, say Steve Gluckman and Anusia Gillespie at SkillBurst Interactive.
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A Closer Look At Another HBCU Race Bias Suit Against NCAA
The National Collegiate Athletic Association's Academic Performance Program has become a lightning rod for scrutiny, as seen in the recently filed class action McKinney v. NCAA — where statistics in the complaint raise questions about the program's potential discriminatory impact on student-athletes at historically Black colleges and universities, say attorneys at Troutman Pepper.
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Opinion
9th Circ.'s Latest UBH Ruling Ignores Case's Core Issue
The Ninth Circuit’s recent decision to vacate its earlier opinion in Wit v. United Behavioral Health frustratingly disregards the case’s key issue of benefits coverage for mental health treatment, and illogically elevates an insurer's discretionary authority over the medically necessary needs of patients, says Mark DeBofsky at DeBofsky Law.
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Ruling Clarifies Bankruptcy Courts' Class Action Jurisdiction
The Second Circuit’s recent ruling in Bruce v. Citigroup shines a light on the limits of bankruptcy court jurisdiction over class actions and provides leverage for defendants to enforce the idea that courts should grant motions to dismiss and strike class allegations, say attorneys at McGuireWoods.
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SEC's New Rules Likely Will Affect Cyber, D&O Insurance
The U.S. Securities and Exchange Commission recently adopted cybersecurity incident disclosure rules that could create new challenges that affect how public companies assess the risk of securities, corporate governance and cyber-related lawsuits, which may implicate novel insurance coverage issues, say attorneys at Reed Smith.
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9th Circ. Kellogg Ruling Offers Protein Claim Defense Tips
The Ninth Circuit's recent opinion dismissing consolidated false advertising class actions against Kellogg and Kashi should be required reading for manufacturers that include protein-related claims on their product labels because it significantly clarifies the viability of state law challenges to those claims, say Olivia Dworkin and Cortlin Lannin at Covington.
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Fair Lending Activity: Calm On The Surface, Churning Below
The Consumer Financial Protection Bureau's recently released annual fair lending report to Congress confirms that despite the paucity of public fair lending enforcement actions in 2022, the CFPB and prudential banking agencies are engaged in significant nonpublic oversight, examination and enforcement activities, say attorneys at Cooley.
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The Basics Of Being A Knowledge Management Attorney
Excerpt from Practical Guidance
Michael Lehet at Ogletree Deakins discusses the role of knowledge management attorneys at law firms, the common tasks they perform and practical tips for lawyers who may be considering becoming one.
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The 7 Most Notable FCRA Cases Of 2023 So Far
Both consumer reporting agencies and furnishers should take note of Fair Credit Reporting Act decisions by federal district and appellate courts so far this year, especially those concerning dispute processing and the distinction between legal and factual inaccuracies, say attorneys at Troutman Pepper.
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Challenging Standing In Antitrust Classes: The Uninjured
In virtually every antitrust class action, parties at the certification phase disagree about whether the proposed class includes uninjured members, but the goals of Rule 23 and judicial economy are best served by synthesizing two distinct approaches circuit courts take on this issue, say Michael Hamburger and Holly Tao at White & Case.
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To Hire And Keep Top Talent, Think Beyond Compensation
Firms seeking to appeal to sophisticated clients and top-level partners should promote mentorship, ensure that attorneys from diverse backgrounds feel valued, and clarify policies about at-home work, says Patrick Moya at Quaero Group.
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The NAD Has Become More Challenger-Friendly
Samuel Butler and Katie Bond at Keller and Heckman discuss the results of their review of over 400 National Advertising Division cases to determine if the widely perceived notion — that challengers of the self-regulatory body tend to win — is true.
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2nd Circ. Goldman Ruling May Hinder Securities Classes
The Second Circuit's recent Arkansas Teacher Retirement System v. Goldman Sachs decision, decertifying a class of investors and seemingly resolving a decadelong dispute, makes it substantially more difficult for plaintiffs to certify securities classes based on generic misstatements — a significant win for the defense bar, say attorneys at Willkie.