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Class Action
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September 23, 2024
Nike, Others Let TikTok 'Fingerprint' Sites, Suits Claim
Nike, its subsidiary Converse and telehealth company Teladoc were each hit with proposed class actions on Friday in California federal court over allegations that they violated the state's "trap and trace" law by using TikTok software to collect personal data from visitors to their websites.
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September 23, 2024
Credit Suisse Can't Ditch Investor Fraud Suit, But PwC Can
A New York federal judge has declined to fully dismiss a proposed class action alleging Credit Suisse misled investors about its condition in the run-up to its collapse and takeover by UBS, ruling that a narrow part of the litigation can proceed while much of it — including claims against PwC — must go.
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September 23, 2024
Lowe's Customer Fights Arbitration Bid In 'Made In USA' Suit
A Lowe's customer opposed the retailer's bid to cut down his proposed class action accusing the company of falsely advertising its safety gloves as U.S. made, telling a Michigan federal court Lowe's has no grounds to send his claims to individual arbitration or relocate the dispute to North Carolina.
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September 23, 2024
John Paul Mitchell Beats Dry Shampoo Benzene Suit, For Now
An Illinois federal judge ruled Monday a putative consumer class action claiming a Paul Mitchell dry shampoo contains cancer-causing benzene didn't sufficiently show an "injury-in-fact" to warrant damages or even that the product contained the carcinogen, but gave the consumers a chance to amend their complaint.
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September 23, 2024
Mallinckrodt Brass Can't Avoid Investor Suit Over 2nd Ch. 11
A New Jersey federal judge ruled Monday that senior leaders of drugmaker Mallinckrodt cannot escape a lawsuit brought by shareholders alleging the company tricked them into thinking it had recovered from bankruptcy and would make a $200 million payment to opioid claimants, finding the investors sufficiently pleaded securities law violations.
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September 23, 2024
Petco, Shareholders Battle In Chancery Over Controller Clout
Attorneys for Petco Health & Wellness Co. Inc. face an "uphill battle" in branding as "wrongly decided" a landmark Court of Chancery ruling earlier this year that struck down an agreement giving a company's controlling stockholder board-trumping power, Delaware's chancellor cautioned on Monday.
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September 23, 2024
'Bluey,' 'Paw Patrol' App Maker Sued Over 'Stealth Marketing'
A proposed class of parents is suing Budge Studios Inc., the maker of licensed phone and tablet applications for children's cartoons such as "Bluey" and "Paw Patrol," alleging that the company used predatory "stealth marketing" and "dark patterns" to entice children into getting their parents to pay for monthly subscriptions and in-app purchases.
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September 23, 2024
Toyota Accused Of 'Rotten' Forklift Emissions Compliance
Toyota has been misrepresenting the true emissions levels of the engines in its forklifts and construction machinery, leading businesses to believe the engines were far more environmentally friendly than they actually were, according to a proposed class action filed in California federal court.
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September 23, 2024
Court Sinks Antitrust Claims Against Suns Owner
A Florida federal court adopted the recommendations of a magistrate judge and tossed a mortgage broker's antitrust case against the owner of the NBA's Phoenix Suns and his company, United Wholesale Mortgage, over an alleged boycott.
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September 23, 2024
Wash. Agency No Longer Seeking Names In 3M Earplug Case
The Washington state agency that handles child support claims seems no longer interested in seeking information on service members who are expected to receive payments from the 6 billion settlement from 3M Co. over injuries stemming from its Combat Arms Earplugs.
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September 23, 2024
NCAA Gets HBCU Race Bias Suit Tossed, For Now
An Indiana federal judge has granted the NCAA's motion to dismiss a lawsuit from a basketball player who claims the organization's academic program is discriminatory, but left the door open for an amended complaint.
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September 23, 2024
Fired Sotera Exec's Vesting Suit Goes Forward In Del.
Delaware's Court of Chancery dismissed on Monday some claims in a former Sotera Health Co. executive's suit accusing the lab-testing and sterilization firm of wrongly refusing to grant him severance benefits and equity awards worth millions, while holding other claims for trial.
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September 23, 2024
Vanguard Agrees To Settle Investors' Tax Liability Suit
Vanguard agreed to settle a proposed class action by investors who accused the company of violating its fiduciary duties when it triggered a sell-off of assets that left them with massive tax bills, according to a Pennsylvania federal court order Monday.
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September 23, 2024
Edelson, Susman, Berger To Lead MultiPlan Collusion MDL
An Illinois federal judge on Monday tapped a team of lawyers from Edelson PC, Susman Godfrey LLP and Berger Montague PC to take the lead for plaintiffs in multidistrict litigation accusing MultiPlan and a host of insurers of colluding through the use of the data firm's pricing tools to systematically underpay out-of-network providers.
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September 23, 2024
Auto AI Co.'s $30M Settlement With Investors Gets Initial Nod
An automotive software company's $30 million settlement to end an investor fraud class action won initial approval from a Boston federal judge on Monday.
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September 23, 2024
Class Gets Cert In Suit Over Dave's Killer Bread Protein Claims
A California federal judge on Friday granted class certification to a group of consumers alleging that Dave's Killer Bread and Flowers Foods violated U.S. Food and Drug Administration labeling regulations by leaving out required protein content information, finding that the consumers had standing.
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September 23, 2024
Ford Investor Claims Automaker's Execs Hid Warranty Costs
Directors and executives of Ford Motor Co. have been hit with a shareholder derivative suit alleging they covered up problems with the company's quality assurance procedures and made misleading statements about how much money was in warranty reserves, leading the company to overpay about $115 million when it bought back its own stock at artificially inflated prices.
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September 23, 2024
Frontier Must Face 401(k) Suit Over Verizon Investments
Frontier Communications Corp. can't dodge a proposed class action alleging its employee 401(k) plan was overinvested in Verizon Wireless and other telecommunications stocks, a Connecticut federal judge ruled, saying the existence of other investment options in the plan couldn't defeat the case.
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September 23, 2024
Cargo Airliner ESOP Participants Seek OK On $14.5M Deal
Western Global Airlines and its investment manager will pay $14.5 million to end a proposed class action from two pilots for the cargo airliner alleging the company's employee stock ownership plan was mishandled, according to filings in Delaware federal court.
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September 23, 2024
Feds To Pay $893K Fee Award To Travel Ban Challengers
A California federal judge has signed off on the Biden administration's agreement to cover $893,000 worth of legal fees that thousands of visa applicants racked up while contesting a Trump-era travel ban that prevented them from immigrating to the U.S.
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September 23, 2024
J&J Accuses Beasley Allen Of Casting Bogus Talc Ballots
Johnson & Johnson has accused the Beasley Allen Law Firm of casting about two dozen false ballots against the company's latest talc bankruptcy plan without voters' consent and urged a New Jersey federal court to remove the firm from the plaintiff's steering committee as a consequence.
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September 23, 2024
Mich. Justices Let Civil Servant Retirees Keep Benefits
The Michigan Supreme Court has let stand a ruling that retired municipal employees in Allen Park, Michigan, are entitled to healthcare benefits on terms that outlast their collective bargaining agreements with the city.
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September 23, 2024
Hawaii Judge Says Tenants Must Arbitrate Water Pollution Suit
The named plaintiffs in a proposed class of Hawaii tenants must arbitrate the individual claims in their water contamination case against a landlord while their other claims are paused, an Aloha State federal judge has ruled.
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September 23, 2024
Ark. Dispatcher's Settlement Approved In OT Dispute
An Arkansas federal judge signed off on a settlement that puts an end to an emergency dispatcher's proposed class action alleging the city of Jonesboro, Arkansas, shorted her and others on overtime wages, finding she had adequately resolved an error in her prior proposed settlement.
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September 23, 2024
Kratom Co. Gets Claims Trimmed In Addiction False Ad Row
A California federal judge has tossed four out of six claims from a proposed class action alleging Ashlynn Marketing Group Inc. hid from buyers the addictive qualities of its kratom products, leaving only fraud and Consumer Legal Remedies Act claims.
Editor's Picks
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NFL Seeks To End Race-Based Concussion Tests After Outcry
The NFL said Wednesday it will push to end the use of "race-norming," which assumes Black former players start with lower baseline cognitive test scores, in assessing claims for payouts from the more than $1 billion concussion settlement amid allegations that it is discriminatory.
Expert Analysis
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What 7th Circ. Collective Actions Ruling Means For Employers
With the Seventh Circuit’s recent Fair Labor Standards Act ruling in Vanegas v. Signet Builders, a majority of federal appellate courts that have addressed the jurisdictional scope of employee collective actions now follow the U.S. Supreme Court's limiting precedent, bolstering an employer defense in circuits that have yet to weigh in, say attorneys at Jackson Lewis.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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How Labeling And Testing May Help Reduce PFAS Litigation
As regulators take steps to reduce consumers’ exposure to per- and polyfluoroalkyl substances, also known as forever chemicals, companies can take a proactive approach to mitigating litigation risks not only by labeling their products transparently, but also by complying with testing and marketing standards, says Sarah La Pearl at Segal McCambridge.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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New Employer Liability Risks In Old Ill. Genetic Privacy Law
Illinois’ Genetic Information Privacy Act has been litigated very sparsely, but two recent federal court decisions — Taylor v. Union Pacific and McKnight v. United Airlines — holding that preemployment family medical history questions violated the 1998 law may encourage more lawsuits, say Peter Berk and Madison Shepley at Clark Hill.
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DOJ Must Overcome Hurdles In RealPage Antitrust Case
The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.
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Opinion
3rd. Circ. Got It Right On Cancer Warning Claims Preemption
The Third Circuit's recent, eminently sensible ruling in a failure-to-warn case against Roundup manufacturer Monsanto, holding that the Federal Insecticide, Fungicide and Rodenticide Act preempts state law claims, provides a road map that other courts should adopt, says Lawrence Ebner at the Atlantic Legal Foundation.
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Court Denial Of $335M UFC Deal Sets Bold Antitrust Precedent
A Nevada federal court’s recent refusal to accept a $335 million deal between Ultimate Fighting Championship and a group of former fighters to settle claims of anticompetitive conduct was a rare decision that risks the floodgates opening on established antitrust case law, says Mohit Pasricha at Lawrence Stephens.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Finding Coverage For Online Retail Privacy Class Actions
Following recent court rulings interpreting state invasion of privacy and electronic surveillance statutes triggering a surge in the filing of privacy class actions against online retailers, companies should examine their various insurance policies, including E&O and D&O, for defense coverage of these claims, says Alison Gaske at Gilbert LLP.
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Employers Should Not Neglect Paid Military Leave Compliance
An August decision from the Ninth Circuit and the settlement of a long-running class action, both examining paid leave requirements under the Uniformed Services Employment and Reemployment Rights Act, are part of a nationwide trend that should prompt employers to review their military leave policies to avoid potential litigation and reputational damage, says Bradford Kelley at Littler.
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Unpacking Jurisdiction Issues In 3rd Circ. Arbitration Ruling
The Third Circuit's recent ruling in George v. Rushmore Service Center could be interpreted to establish three principles regarding district courts' jurisdiction to enter arbitration-related orders under the Federal Arbitration Act, two of which may lead to confusion, says David Cinotti at Pashman Stein.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.