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Class Action
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May 13, 2024
Judge Says Bold, Italic Font Muddies Allbirds Investor Suit
A California federal judge has tossed for now a proposed class action from Allbirds Inc. investors who claim the sustainable shoe retailer made false and misleading statements in registration documents connected to its initial public offering, saying the complaint doesn't indicate which statements from the company's executives were allegedly misleading.
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May 13, 2024
Tesla Shareholder Alleges Drugs Fueled Musk's Erratic Posts
Tesla Inc. has failed to investigate reports that CEO Elon Musk used illicit drugs including ketamine, LSD and cocaine that may have influenced his social media posts, hurting stockholders and damaging the company's value, a shareholder has alleged in a recently unsealed amended complaint in Delaware's Court of Chancery.
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May 13, 2024
2nd Circ. Affirms Dismissal Of Bystolic Antitrust Suit
The Second Circuit issued its first decision under the high court's Actavis "pay for delay" ruling on Monday, affirming the dismissal of a case alleging that an AbbVie predecessor delayed competition for its hypertension treatment Bystolic through deals with several generic makers.
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May 13, 2024
ADP Wants To Keep 401(k) Fee Suit From Going Before A Jury
ADP said a class of 50,000 retirement plan participants shouldn't be allowed to bring their claims that the company mismanaged their $7.8 billion retirement plan before a jury, arguing that because they're not asking for money damages, they're not owed a trial in the case.
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May 13, 2024
Zuckerberg Challenges Basis Of Personal Claims In Meta MDL
Facebook founder Mark Zuckerberg is asking a California federal court to throw out claims against him in multidistrict litigation over social media platforms' allegedly addictive design, saying the personal injury plaintiffs haven't shown he took affirmative actions that would make him personally liable.
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May 13, 2024
Diaz Reus Attys Dodge Sanctions Over Last-Minute Dismissal Bid
Citing a lack of good cause for sanctions, a south Florida federal judge determined Monday that shareholders in a Venezuela-linked bank cannot penalize Miami-based Diaz Reus & Targ LLP lawyers over allegations they delayed an expected October 2023 trial in a suit alleging the bank's directors breached their fiduciary duty.
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May 13, 2024
NJ Justices Hold Contract Supersedes Real Estate Wage Law
The contract a real estate agent signed deeming him an independent contractor is enough to resolve his claims of improper wage deductions, the New Jersey Supreme Court ruled Monday, saying that a state three-prong test doesn't need to apply.
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May 13, 2024
USPTO Fights Class Cert. Bid In Suit Over Patent Program
The U.S. Patent and Trademark Office has said a proposed group of inventors should not receive class certification in a suit alleging that the office's now-defunct program for flagging "sensitive" patent applications for extra review violated the Privacy Act.
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May 13, 2024
Philips Wants Cleaner Co. To Chip In For $1B CPAP Deal
Koninklijke Philips NV has filed a third-party complaint in Pennsylvania federal court against SoClean Inc., which sells cleaning products for breathing devices, claiming SoClean and its parent should contribute to Philips' $1 billion settlement because its cleaners allegedly exacerbated the foam breakdown at the heart of the litigation.
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May 13, 2024
Camp Lejeune Plaintiffs Can't Appeal Jury Trial Denial Order
The North Carolina federal court overseeing litigation over water contamination at the Camp Lejeune military base on Monday denied the service members' attempt to appeal an order that struck down their bid for jury trials, saying that it's not an issue that warrants appeal.
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May 13, 2024
False Ad AriZona Suit Not In Bad Faith, Fee Opposition Argues
A plaintiff represented by an attorney known for false advertising suits against food and drink companies is asking an Illinois federal judge not to award attorney fees to AriZona Beverages USA LLC after the court threw out claims that it falsely advertised some of drinks as "lite," saying there was no bad faith in pursuing the suit.
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May 13, 2024
Workers Want $775K In Atty Fees After Multistate Wage Verdict
An attorney who secured a six-figure judgment in a multistate wage class action against an Apple-affiliated repair company has asked for more than $775,000 in fees, citing her opponents' "aggressive" litigation tactics and the significant risk she incurred in taking on the case.
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May 13, 2024
'Prolific' Asbestos Injury Firm Accused Of Fraud, Racketeering
A "prolific" Illinois-based asbestos litigation law firm allegedly engaged in a yearslong scheme involving perjured testimony, suppressed evidence and baseless claims to extract as much money from as many companies as possible, according to one of the companies repeatedly targeted by the firm.
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May 13, 2024
Catching Up With Delaware's Chancery Court
Sunken treasure, recycled plastics, questionable denim and dog food all made appearances in Chancery Court dockets last week, along with developments in cases involving Qualcomm, Tesla Inc., and Truth Social. In case you missed it, here's the latest from Delaware's Chancery Court.
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May 13, 2024
Justices Decline To Hear $3.5B Insurance Surplus Case
A proposed class action accusing an insurer of failing to return an over $3.5 billion surplus of underwriting profits back to policyholder members will be litigated in Illinois state court, the U.S. Supreme Court ruled Monday, denying the company's bid for certiorari.
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May 13, 2024
Justices Reject COVID App Makers' Last-Ditch Apple Appeal
The U.S. Supreme Court dealt the latest blow Monday to app developers who've struck out at every turn on antitrust allegations over Apple's rejection of COVID-19-tracking and bitcoin apps, refusing to look at a Ninth Circuit's refusal to revive the lawsuit.
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May 10, 2024
Wash. Judge Doubles Hospital System's Penalty In Wage Case
A Washington state judge has ordered a healthcare system to pay nearly $230 million to 33,000 workers, doubling the damages a jury awarded to the employees in April based on the company's "willful" violations of wage law.
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May 10, 2024
Reddit Accused Of Charging Advertisers For Fake Clicks
An artificial intelligence trading platform hit Reddit with a proposed class action on behalf of advertisers alleging that it has been charged for fraudulent "clicks" while promoting its business on the social media company's website, according to the suit filed in California federal court.
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May 10, 2024
Rivian's Cert. Oppo Not How 'Real World Works,' Judge Says
A California federal judge told Rivian's attorney Friday that his arguments opposing class certification for investors alleging the carmaker misled them on material costs appeared to say that unless a company practically admits fraud in a disclosure it's not a "corrective" disclosure, but "that is not how the real world works."
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May 10, 2024
Ill. Residents Ask Court To Void Alaskan Tribal Co. Loans
Six borrowers accusing an Alaska-based tribal lending company of making usurious loans at annual rates of as much as 700% or more have filed suit in Illinois federal court, saying it violated racketeering laws and must void the already existing debt.
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May 10, 2024
Bakery To Face Ex-Worker's Finger Scan Suit In State Court
An Illinois judge has remanded most of a suit accusing Gold Standard Baking Inc. of unlawfully collecting biometric data for timekeeping purposes, finding that claims related to fingerprint scans collected while she was a temporary worker could stand while captures made after she became a company employee were preempted by federal labor-contract law.
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May 10, 2024
Dropbox Hit With Proposed Class Action Over Data Breach
A Dropbox Inc. user has claimed that the file-hosting service failed to properly safeguard users' personal data, which was exposed in a breach last month, according to a proposed class action filed in California federal court.
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May 10, 2024
McDonald's Workers Want Class Cert. In Sex Harassment Suit
A pair of McDonald's workers claiming that the company has allowed sexual harassment to run rampant in its stores asked an Illinois federal judge to certify classes of thousands of women and girls who've worked at Florida locations, arguing that class treatment is the best way to evaluate whether McDonald's has a pattern of tolerating harassment.
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May 10, 2024
EV Startup Says California Settlement Covers Stockholder Suit
Backers of a transaction that took electric vehicle startup Faraday Future Intelligent Electric Inc. public with a $1 billion value in 2021 have asked Delaware's Court of Chancery to block discovery in a stockholder challenge to the deal, citing pending settlement of a similar federal action in California.
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May 10, 2024
Vegas Hotels, Software Cos. Escape Price-Algorithm Suit
A Nevada federal judge has permanently tossed a proposed class action that accused two software companies and multiple hotel operators of using an algorithm software in a price-fixing scheme for hotel room prices on the Las Vegas Strip.
Expert Analysis
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Del. Dispatch: The 2023 Corporate Cases You Need To Know
Corporate and mergers and acquisitions litigation has continued at a fevered pace this year, with the Delaware courts addressing numerous novel issues with important practical implications, including officer exculpation and buyer aiding-and-abetting liability, say attorneys at Fried Frank.
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NCAA Proposal Points To A New NIL Compensation Frontier
Although NCAA President Charlie Baker's recent proposal for Division I institutions to pay student-athletes for name, image and likeness licensing deals is unlikely to pass in its current form, it shows that direct compensation for student-athletes is a looming reality — and member institutions should begin preparing in earnest, say attorneys at Pillsbury.
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How Attorneys Can Be More Efficient This Holiday Season
Attorneys should consider a few key tips to speed up their work during the holidays so they can join the festivities — from streamlining the document review process to creating similar folder structures, says Bennett Rawicki at Hilgers Graben.
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5 Trends To Watch In Property And Casualty Class Actions
In 2023, class action decisions have altered the landscape for five major types of claims affecting property and casualty insurers — total loss vehicle valuation, labor depreciation, other structural loss estimating theories, total loss vehicle tax and regulatory fees, and New Mexico's uninsured and underinsured motorist coverage sale requirements, say Mark Johnson and Mathew Drocton at BakerHostetler.
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Class Action-Style Claims Are On The Horizon In 2024
Following the implementation of an EU directive enabling consumers to bring actions for collective redress, 2024 will likely see the first serious swathe of class action-style cases in Europe, particularly in areas such as cyber exposures, ESG and product liability, says Henning Schaloske at Clyde & Co.
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Series
Children's Book Writing Makes Me A Better Lawyer
Becoming a children's book author has opened doors to incredible new experiences of which I barely dared to dream, but the process has also changed my life by serving as a reminder that strong writing, networking and public speaking skills are hugely beneficial to a legal career, says Shaunna Bailey at Sheppard Mullin.
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A Review Of 2023's Most Notable Securities Litigation
There is much to be learned from the most prominent private securities cases of 2023, specifically the Tesla trial, the U.S. Supreme Court's Slack decision and the resolution of Goldman Sachs litigation, but one lesson running through all of them is that there can be rewards at the end of the line for defendants willing to go the distance, say attorneys at Fried Frank.
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How Clients May Use AI To Monitor Attorneys
Excerpt from Practical Guidance
Artificial intelligence tools will increasingly enable clients to monitor and evaluate their counsel’s activities, so attorneys must clearly define the terms of engagement and likewise take advantage of the efficiencies offered by AI, says Ronald Levine at Herrick Feinstein.
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When Patients Have Standing For Hospital Antitrust Suits
Brown v. Hartford Healthcare Corp., recently decided by a Connecticut state court, provides a useful examination of how antitrust standing issues may be analyzed when patients directly sue a healthcare system for anti-competitive conduct, says Charles Honart at Stevens & Lee.
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DOJ's RealPage Notice Signals Focus On Pricing Algorithms
The U.S. Department of Justice's Antitrust Division recently filed a statement of interest in the Realpage multidistrict litigation to stake out its position that price-fixing algorithms pose a great anti-competitive threat, which suggests that the DOJ and private parties may continue to bring similar actions in the future, say attorneys at Simpson Thacher.
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What 3rd Circ. Gets Wrong About Arbitration Enforcement
The Third Circuit and other courts should correct their current law, exemplified by the Third Circuit's recent decision in Henry v. Wilmington Trust, requiring a motion to dismiss based on an arbitration clause because it conflicts with the Federal Arbitration Act, the Federal Rules of Civil Procedure, and — with regard to the improper-venue approach — U.S. Supreme Court precedent, says David Cinotti at Pashman Stein.
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Series
The Pop Culture Docket: Judge D'Emic On Moby Grape
The 1968 Moby Grape song "Murder in My Heart for the Judge" tells the tale of a fictional defendant treated with scorn by the judge, illustrating how much the legal system has evolved in the past 50 years, largely due to problem-solving courts and the principles of procedural justice, says Kings County Supreme Court Administrative Judge Matthew D'Emic.
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The Key To Defending Multistate Collective FLSA Claims
Federal circuit courts are split on the reach of a court's jurisdiction over out-of-state employers in Fair Labor Standards Act collective actions, but until the U.S. Supreme Court agrees to review the question, multistate employers should be aware of a potential case-changing defense, say Matthew Disbrow and Michael Dauphinais at Honigman.
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Series
Performing Music Makes Me A Better Lawyer
The discipline of performing live music has directly and positively influenced my effectiveness as a litigator — serving as a reminder that practice, intuition and team building are all important elements of a successful law practice, says Jeff Wakolbinger at Bryan Cave.
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The Shifting Landscape Of Securities Class Action Fees
An analysis of recently settled cases shows that in addition to the settlement size, plaintiffs counsel in securities class actions appear to be rewarded for good settlement outcomes relative to a statistical prediction, with certain outcomes for the motion to dismiss and motion for class certification also affecting attorney fees awarded, says Edward Flores at NERA Economic Consulting.