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Class Action
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April 17, 2024
Shipping Co. Cuts Deal To Exit 401(k) Fee Suit
A shipping and logistics company agreed to resolve a proposed class action a former employee lodged alleging it saddled workers' $766 million retirement plan with lofty administrative fees and failed to remove its expensive recordkeeper, a filing in North Carolina federal court said.
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April 17, 2024
Judge Merges Axos Bank Suits But Won't Appoint Counsel Yet
A California federal judge has agreed to consolidate a pair of cases over how Axos handled interest rates on savings deposit accounts offered through an online banking division, but rejected its customers' bid to name three law firms as interim co-lead counsel, saying it is not necessary at this time since more consolidation could occur.
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April 17, 2024
Tesla To Vote On Reviving Musk's $55B Pay, Moving To Texas
Attorneys for Tesla Inc. notified Delaware's chancellor Wednesday that the company will seek stockholder approval June 13 for the same $55.8 billion Elon Musk compensation plan voided by Chancery Court on Jan. 30, along with reincorporation of Tesla as a Texas company.
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April 17, 2024
Elliott Waives BioMarin Board Deal, Moots Del. Suit
Elliott Investment Management LP has waived an agreement with BioMarin Pharmaceutical Inc. that gave the activist investor three new seats on the biopharmaceutical company's board, mooting a Delaware Chancery Court lawsuit that a BioMarin shareholder filed earlier this month.
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April 17, 2024
Waste Co. Strikes Deal To End 401(k) Mismanagement Suit
A waste management company reached an agreement to end a former worker's proposed class action claiming it breached federal benefits law by stacking its $813 million retirement plan with needlessly expensive funds, according to a filing in Massachusetts federal court.
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April 17, 2024
Discovery In $500M Severance Fight Against X, Musk Will Wait
A California federal judge paused discovery in a suit claiming X, formerly Twitter, owes $500 million in severance to the workers the company laid off after Elon Musk's takeover, saying the court should wait to sort out the company's dismissal bid.
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April 17, 2024
Court Trims Atty Fee Bid For Xerox Workers' $4.1M ERISA Deal
After a $4.1 million Connecticut ERISA settlement, a federal court has awarded more than $1 million in fees to attorneys who represented a class of nearly 40,000 Xerox workers, determining a one-quarter fee amount was more appropriate than the requested one-third cut.
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April 16, 2024
Eli Lilly's Insulin Price Cap Deal Collapses After Cert. Denial
Eli Lilly & Co. and insulin buyers have called off a proposed nationwide settlement that would've capped insulin prices and been worth up to $500 million over several years, a decision that was made after the buyers lost a class certification bid early this year, according to the buyers' counsel.
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April 16, 2024
Cashed Check Kills VW Emissions Deal Appeal, 9th Circ. Says
The Ninth Circuit on Tuesday threw out an attempt to unravel an $80 million deal resolving consolidated consumer litigation alleging Volkswagen and Porsche manipulated emissions and fuel-economy tests for nearly 500,000 gas-powered vehicles, saying the objector has already cashed his portion of the settlement.
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April 16, 2024
'Wide As The Ocean': Apple Judge Pans Investor Deal Release
A California federal judge declined Monday to preliminarily approve Apple's nonmonetary settlement in a derivative-shareholder suit over claims it secretly slowed iPhones, criticizing the deal's release of claims that "relate" to the case as overbroad and noting that, "in practice, lawyers argue that 'relate' is as wide as the ocean."
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April 16, 2024
9th Circ. Upholds Tossing Skillz Gaming Tech Investor Suit
The Ninth Circuit on Tuesday upheld a decision to toss a proposed class action claiming that mobile gaming company Skillz Inc. misled investors about its technology prior to a 2021 merger with a special purpose acquisition company, ruling that issues with the gaming software do not make the company' statements false or misleading.
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April 16, 2024
SEC Hit With Class Action Over Database Privacy Concerns
A conservative think tank filed a lawsuit in Texas federal court Tuesday hoping to put an end to a U.S. Securities and Exchange Commission market surveillance tool known as the consolidated audit trail, arguing in the proposed class action that the database threatens to subject the personal information of tens of millions of American citizens to a possible data breach.
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April 16, 2024
Mercedes Rusty Subframe Suit Is Too Vague, Judge Is Told
Mercedes-Benz argued in court Tuesday that a proposed class action over a claimed subframe defect should be dismissed as an improper shotgun pleading as it directs allegations at "Mercedes" without specifying whether the German parent company or its Atlanta subsidiary are supposedly to blame.
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April 16, 2024
Under Armour Insurers To Cover Disputes In 2 Policy Periods
Under Armour's excess insurers must provide additional coverage to the company in connection with a consolidated securities class action, derivative matters and government investigations, a Maryland federal court announced.
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April 16, 2024
BIPA Judge Laments Blown Discovery Deadlines — Again
An Illinois federal judge on Monday scolded Union Pacific and the truck drivers suing it over alleged biometric privacy violations for missing a sixth discovery deadline, saying the results of multiple discovery extensions he's allowed over five years of litigation have been "disappointing, to say the least."
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April 16, 2024
Amway Parent Must Face Trial In Retirees' 401(k) Suit
A Michigan federal judge refused Tuesday to totally free Amway's parent company from a class action accusing it of stacking its 401(k) with unwise investments and excessive fees, saying a jury should determine whether the company's investment review process was prudent.
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April 16, 2024
5th Circ. Rejects La. Homeowners' Repeat Hurricane Claim
The Fifth Circuit declined Tuesday to revive a Louisiana couple's proposed class action alleging that their insurer's method of evaluating their Hurricane Ida property damage violated state law, affirming that a previous, related lawsuit the couple filed barred the present claim from coverage.
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April 16, 2024
3rd Circ. Cuts Claims In Geico Vehicle Value-Adjustment Suit
A New Jersey couple can't bring class-action claims against Geico over it allegedly knocking too much off the payout value on totaled cars, since the company ultimately adjusted their personal claim settlement offer upward, a Third Circuit panel has ruled.
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April 16, 2024
South State Bank Breach Exposed 1 Million People, Suit Says
South State Bank is facing a proposed class action accusing it of negligence following a February data breach that allegedly compromised the personal information of more than a million current and former customers.
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April 16, 2024
Plaintiff Wants Big Sugar Antitrust Suits Consolidated In Fla.
A plaintiff in one of more than a dozen antitrust suits accusing sugar companies of engaging in a price-fixing scheme argued that the litigation should be consolidated in Florida, which is responsible for more than half of all American sugarcane production and is home to more of the sugar company defendants than any other jurisdiction.
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April 16, 2024
Pot Transport Co. Can't Escape Overtime Suit
A company specializing in secure transport of marijuana products didn't show that its drivers engage in interstate commerce and therefore can't escape a driver's misclassification suit seeking unpaid overtime, a Michigan federal judge has ruled.
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April 16, 2024
Del. Justices OK Midcase Review Of TripAdvisor Move
Delaware's Supreme Court will consider whether the Court of Chancery properly denied TripAdvisor's motion to dismiss a shareholder lawsuit over its corporate move to Nevada, finding that a midcase appeal of the ruling involves a question of law and could be "beneficial."
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April 16, 2024
Zuckerberg Dodges Liability In Meta Addiction MDL, For Now
A California federal judge has tossed certain fraud-by-omission claims seeking to hold Meta Platforms CEO Mark Zuckerberg personally liable in sprawling multidistrict litigation over social media platforms' allegedly addictive design, but she allowed the plaintiffs to amend their allegations to assert a new theory of corporate officer liability against Zuckerberg.
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April 16, 2024
Capital One Escapes Customer Sign-Up Bonus Suit, For Now
A California federal judge dismissed a proposed class action brought by a Capital One customer who claimed he applied for a credit card but never got a promised sign-up bonus, saying that a social media advertisement about a bonus was not enough to allege traceability.
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April 16, 2024
Credit Union And 'Dreamers' Get Initial OK To Settle Bias Suit
A California federal judge preliminarily approved a settlement offering cash to individuals who accused Alliant Credit Union of denying them loans for being asylum claimants, recipients of the Deferred Action for Childhood Arrivals program or dependents of employment-based visa holders.
Expert Analysis
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Retailers: Beware Legislator And Regulator Junk Fee Focus
In light of the Biden administration’s recent focus on restricting so-called junk fee surcharges across industries, attorneys at Benesch discuss what retailers should know about several evolving developments, including a new California law, a proposed Federal Trade Commission rule, an expanding litigation landscape, and more.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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First-Of-Its-Kind Artist AI Ruling Offers Liability Guidance
A California judge recently became the first federal judge in Andersen v. Stability AI to rule at the pleading stage on a challenge to claims that training artificial intelligence models involves mass-scale copyright infringement, providing insight into the potential legal exposure of AI-enabled products, say attorneys at Fenwick.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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9 Hallmarks Of The New German Class Action Regime
By recently adopting a new class action regime, Germany is taking an incremental step toward more collective redress, which may fundamentally change its litigation landscape amid increased European regulatory activity, a growing focus on private enforcement of regulations, and a consumer-friendly German judiciary, say lawyers at Gibson Dunn.
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Safe-Harbor Period Change Could Hinder TCPA Compliance
A proposed rule change under consideration by the Federal Communications Commission would require businesses to honor do-not-call requests within 24 hours of receipt for calls and texts that are subject to the Telephone Consumer Protection Act, and companies have already called it unreasonable, say Aaron Weiss and Danny Enjamio at Carlton Fields.
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Opinion
Courts Shouldn't Credit Allegations From Short-Seller Reports
Securities class actions against public companies can extend for years and lead to significant settlements, so courts should not allow such cases with allegations wholly reliant on reports by short-sellers, who have an economic interest in seeing a company's stock price decline, to proceed past the motion to dismiss stage, says Richard Zelichov at DLA Piper.
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Cos. Must Address Growing Chatbot Class Action Risk
Following a new wave of chatbot-related consumer data privacy litigation and expanding compliance obligations created by state legislatures, businesses using such technology face a high-risk environment for wiretapping allegations, with inconsistent court rulings to date and uncertain legal holdings ahead, say attorneys at Pierce Atwood.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Analyzing The Legal Ripples Of The EPA's PFAS Regulation
As the U.S. Environmental Protection Agency makes major moves on its pledge to regulate per- and polyfluoroalkyl substances, the developing body of PFAS regulation will lead to an increase in litigation, and personal injury and product liability claims, say attorneys at Gordon & Rees.
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Boeing Opinion Strikes Blow Against Overpayment Theory
The Fifth Circuit's decision in Earl v. Boeing Co. casts doubt on consumers' standing to bring claims of overpayment for products later revealed to have defects — and suggests that it's more likely that those products would have been removed from the market, driving up the price of alternatives, say attorneys at Bush Seyferth.
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3 Tips For Defending Against Data Breach Litigation
As cyberattacks become more prevalent, companies responding to data breaches must consider several strategies to better position themselves in the event of litigation even during their preliminary investigations and breach notifications, say attorneys at Davis Wright.