Class Action

  • July 2, 2014

    Taco Bell Not Liable For Spam Texts, 9th Circ. Affirms

    The Ninth Circuit on Wednesday upheld Taco Bell Corp.'s win in a putative Telephone Consumer Protection Act class action, agreeing with a lower court that the fast-food giant can't be held vicariously liable for a purportedly unlawful text message campaign conducted by a group of Chicago-area Taco Bell owners.

  • July 2, 2014

    Justices Eye Power Of Natural Gas Act In Antitrust Case

    In taking on a dispute over whether the Natural Gas Act preempts multidistrict litigation accusing energy companies of fixing the price of natural gas, the U.S. Supreme Court could cement federal authority over wholesale gas markets and finally turn the page on the energy crisis of the early 2000s that spawned such litigation, experts say.

  • July 2, 2014

    Plaintiffs Denied Class Cert. Can Bring Claims: La. High Court

    The Louisiana Supreme Court on Tuesday ruled that plaintiffs who sued Transport Services Co. of Illinois, alleging one of its trucks leaked vapor into their neighborhood, can individually pursue their claims in state court after a federal judge denied their class certification, ruling the deadline for filing claims is still suspended when a suit is removed to federal court.

  • July 2, 2014

    LCD Makers Can’t Nix Antitrust Claims In MDL, Judge Says

    A California federal judge on Tuesday refused a bid by LG Display Co. Ltd., HannStar Display Corp. and other defendants accused of engaging in a liquid crystal display panel price-fixing conspiracy to escape retailers' antitrust claims, saying the panel manufacturers were merely rehashing settled arguments.

  • July 2, 2014

    Werner Truck Driver Can't Prove Retaliation Over Wage Suit

    A federal judge on Monday dismissed a truck driver's retaliation suit alleging he started receiving negative performance reviews after he brought a wage-and-hour class action against his employer Werner Enterprises Inc., saying the time between the case filing and the beginning of the reviews didn't prove retaliation.

  • July 1, 2014

    6th Circ. Hobbles Plaintiffs In Generic-Drug Injury Suits

    The Sixth Circuit's recent decision dismantling multidistrict litigation over generic versions of the painkillers Darvocet and Darvon has increased the standards plaintiffs must meet to prevail on any theory of liability involving generic-drug injuries, attorneys say, even though the appeals court didn't rule on the potential parallel-misbranding exception in the U.S. Supreme Court's landmark Bartlett ruling.

  • July 1, 2014

    KKR’s Gardner Denver Settlement Serves As Cautionary Tale

    A rare monetary settlement by Gardner Denver Inc. in a shareholder suit tied to its $3.9 billion takeover by KKR & Co. last year serves as a cautionary tale for other private equity firms looking to take on former insiders as deal consultants after KKR’s hiring of a former Gardner Denver chief executive played a key role in the case, experts say.

  • July 1, 2014

    Claims Pared In Chrysler Leaky Sunroof Action

    A New Jersey federal judge on Monday pared claims in a putative class action against Chrysler Group LLC over an alleged manufacturing defect that causes leaking sunroofs in a number of its Jeep models, tossing claims for breach of express warranty and negligence, but keeping the implied warranty and state consumer protection law claims in play.

  • July 1, 2014

    High Court Will Hear Gas Antitrust Preemption Case

    The U.S. Supreme Court on Tuesday said it would referee a dispute over whether the Natural Gas Act preempts multidistrict litigation accusing a slew of energy companies of fixing the price of natural gas.

  • July 1, 2014

    Chancery Tosses Suit Over $110M Chipmaker Merger

    A Delaware Chancery Judge late Monday threw out all shareholder claims challenging the $110 million takeover of Ramtron International Corp. by rival chipmaker Cypress Semiconductor Corp., ruling the investor did not sufficiently allege improper conduct in all counts of the complaint.

  • July 1, 2014

    HP Settles Derivative Suits Over $11B Autonomy Buy

    Hewlett-Packard Co. has agreed to settle three shareholder derivative lawsuits brought against its top brass over alleged misrepresentations and disclosure failures in connection with the tech giant’s $11.1 billion acquisition of software company Autonomy Corp., according to documents filed Monday in California federal court.

  • July 1, 2014

    EBay Loses Bid To Toss 'Buy It Now' Fees Class Action

    A California federal judge on Monday refused to toss a putative class action accusing eBay Inc. of removing items from its listings too soon and not compensating the sellers, holding that the online auction giant’s user agreement misleads consumers about its removal policies.

  • July 1, 2014

    Exotic Dancers Are Employees, Judge Rules In FLSA Action

    An Arkansas federal judge on Monday ruled that exotic dancers suing a strip club for alleged wage-and-hour violations are employees under the Fair Labor Standards Act and awarded three of the dancers damages over their claims that the club flouted the law.

  • June 30, 2014

    Goldman Can't Appeal Class Cert. In $2.4B Toxic Asset Suit

    The Second Circuit on Friday refused to allow Goldman Sachs to immediately appeal a lower court's order certifying an investor class in a suit accusing it of fraudulently unloading $2.44 billion in toxic securitized mortgage-related debt.

  • June 30, 2014

    Lawyers Weigh In On High Court's Union Fees Ruling

    The U.S. Supreme Court on Monday struck down a regulatory scheme that required home-care providers for Medicaid recipients to pay fees to a union, but declined to overturn precedent allowing public sector unions to collect fees from nonunion workers. Here, attorneys tell Law360 why the decision in Harris v. Quinn is significant.

  • June 30, 2014

    Princeton HealthCare Pays $1.35M To Settle ADA Suit

    New Jersey’s Princeton HealthCare System has agreed to pay $1.35 million to settle a disability discrimination suit alleging the hospital system failed to recognize leave as a reasonable accommodation under the Americans with Disabilities Act, according to a Monday announcement.

  • June 30, 2014

    Supreme Court Won't Hear Teva Case Over CAFA Removals

    The U.S. Supreme Court on Monday declined to take on Teva Pharmaceuticals USA Inc.'s attempt to keep in federal court dozens of coordinated, multiplaintiff lawsuits alleging the pain medication propoxyphene caused cardiovascular injuries in a case that tested criteria for removal under the Class Action Fairness Act.

  • June 30, 2014

    Calif. High Court OKs Newspaper Carriers' Suit As Class Action

    The California Supreme Court on Monday ruled that newspaper carriers can be treated as a class if they are subject to a common job policy, a finding that could make it harder for companies to defeat class certification bids in employment and consumer matters.

  • June 30, 2014

    Supreme Court Rejects FLSA Class Action Waivers Appeal

    The U.S. Supreme Court on Monday refused former auto repair employees' request to review if the Fair Labor Standards Act confers a nonwaivable substantive right to collective action and contains a congressional command barring the enforcement of arbitration agreements or class waivers.

  • June 30, 2014

    Southwest Agrees To Pay $1M To Settle Calif. Wage Suit

    Southwest Airlines Co. on Friday agreed to pay $1 million to settle a proposed class action brought by employees who alleged the company failed to provide accurate wage statements and did not pay terminated employees on time, according to documents filed Friday in a California federal court.

Expert Analysis

  • High Stakes In Ascertainability Of Low-Dollar Purchases

    Mari C. Spears

    Two recent rulings — Karhu v. Vital Pharmaceutical Inc. and Carrera v. Bayer Corp. & Bayer Healthcare LLC — highlight the split in federal courts related to certifying class actions comprised of consumers of low-dollar purchases. Because the identities of these consumers are generally unknown and sales data identifying these consumers is largely unavailable, some federal courts have held that these class actions are not "ascertaina... (continued)

  • The Purpose Of Proposed Rule 37(e)

    William C. Wagner

    The newly proposed version of Federal Rule of Civil Procedure 37(e) recognizes that the problem of preserving electronically stored information is only going to get worse. One industry expert reported that there will be some 26 billion devices connected to the Internet in six years — more than three for every person on earth, says William Wagner of Taft Stettinius & Hollister LLP.

  • Automatic-Renewal Class Actions Are On the Rise

    John Nadolenco

    Although the thrust of litigation over automatic renewal for goods and services has occurred in California, suits may soon spread to other states — even to those that do not affirmatively deem automatically renewed products unconditional gifts. The combination of an affirmative-consent requirement and the unconditional-gift grant has certainly caught the eye of plaintiff class action lawyers, say attorneys at Mayer Brown LLP.

  • W.Va. Case May Be A Setback For Data Breach Jurisprudence

    Paul Bond

    The West Virginia Supreme Court of Appeals' recent decision in Tabata v. Charleston Area Medical Center Inc. may have opened a Pandora’s box of post-breach class actions seeking nominal damages. While the decision is binding precedent only in West Virginia, its effect may well be felt in disputes across the nation. This decision underscores the need for extreme caution when litigating privacy issues in state courts, says Paul Bond ... (continued)

  • Lerner Represents Welcome Trend In Derivative Litigation

    Donald A. Corbett

    In Lerner v. Prince, a New York appellate court correctly ruled that shareholder derivative plaintiffs are not entitled to discovery to assist them in pleading that the board of directors wrongfully refused their demanded relief. Derivative cases, by their very nature, seek to turn corporate governance on its head, divesting the board of its traditional management rights. As such, there should be a high hurdle to clear before a sha... (continued)

  • ND Caps Flaring Class Actions Against Gas Companies

    Charles J. Engel III

    A North Dakota federal judge's recent dismissal of proposed class actions alleging oil and gas companies underpaid for royalties on flared natural gas will have the immediate impact of requiring royalty owners to petition the state industrial commission for a hearing. This will foreclose class actions against companies since the commission will review the circumstances of each petition on a case-by-case basis, say Charles Engel and... (continued)

  • Omnicare: The Other Securities Case To Be Worried About

    Eric C. Scheiner

    While all eyes are currently focused on Halliburton, another U.S. Supreme Court case, Omnicare Inc. v. Laborers District Council, could make it easier for plaintiffs to adequately plead a claim for Section 11 violations. If the Supreme Court were to uphold the Sixth Circuit’s reasoning, smart plaintiffs attorneys would seek out any “soft information” within a registration statement or incorporated documents and base a Section 11 ca... (continued)

  • Keys To Successful Legal Outsourcing

    Lauren Leonard

    There are hundreds of third-party vendors for legal technology and services, so it’s vital that general counsel and law firms carefully evaluate them on a range of criteria that do not focus on unit price alone, says Lauren Leonard of UnitedLex Corp.

  • Another Victory For Arbitration Agreements In Calif.

    Joshua A. Rodine

    The California Court of Appeal's recent decision in Tiri v. Lucky Chances Inc. suggests that a clear and unmistakable delegation clause in an employment arbitration agreement subject to state law will be enforced provided the clause itself is not unconscionable. Had the state appellate court affirmed a trial court's order dismissing arbitration then delegation clauses in California would have been rendered meaningless, say Joshua R... (continued)

  • Expect Increasing Scrutiny Of High-Frequency Trading

    Joseph De Simone

    Although federal and state authorities have been conducting inquiries into high-frequency trading for some time, the recent publication of Michael Lewis' book "Flash Boys" and its attendant publicity have significantly raised the stakes for government investigations. It may also encourage private plaintiffs to file additional actions against high-frequency proprietary trading firms, exchanges and brokerage firms, say attorneys with... (continued)