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Class Action
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May 23, 2024
'I Just Don't Buy It': Judge Rips Google's Injunction Argument
A California federal judge considering the scope of a potential injunction against Google following Epic Games' antitrust jury trial win told Google's economist Thursday that the tech giant keeps arguing that more app store options for consumers will create a "terrifying world of chaos and anarchy," but "I just don't buy it."
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May 23, 2024
PNC, Loan Officers Ink $12M Deal In Rest Break Suit
PNC Bank has agreed to pay nearly $12 million to end a class action alleging the bank didn't pay mortgage loan officers for time spent on breaks and failed to issue accurate wage statements, according to a joint motion filed Wednesday in California federal court.
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May 23, 2024
NCAA, Athletes Settle NIL Class Action Over Billions In Pay
The NCAA said Thursday it has reached a settlement with the former college athletes who had filed an antitrust class action demanding billions in potential compensation allegedly denied to them for decades before the U.S. Supreme Court overturned the NCAA's compensation ban.
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May 23, 2024
7th Circ. Unsure VIX-Fix Claims Were Wrongly Tossed
The Seventh Circuit seemed unsure Thursday that two investment companies should be allowed to pursue volatility index manipulation claims against Barclays, Morgan & Stanley Co. and other financial institutions after a lower court found that one lacked standing and the other missed a statutory deadline.
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May 23, 2024
2nd Circ. Revives Insurer's $2.5M Suit Over Valuation Software
The Second Circuit on Thursday revived an insurer's indemnification bid against software company Audatex for $2.5 million in costs from a suit alleging its use of Audatex's valuation software resulted in underpayment for totaled cars, concluding the lower court erred in finding the suit didn't result from the insurer's use of Audatex's software.
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May 23, 2024
'New' Facts Don't Permit Do-Over, Kraft-Heinz Tells Chancery
An institutional shareholder of The Kraft-Heinz Co. is not entitled to a "do-over" on an insider trading lawsuit that Delaware's Court of Chancery dismissed in 2021 because the supposed "new evidence" it offers isn't actually new and wouldn't have made any difference in the case, the company said Thursday.
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May 23, 2024
Resignation Letter Bylaws Targeted In Five Del. Class Actions
General Motors Co. is among the latest targets of new bylaw-focused litigation from Abbott Cooper PLLC and Block & Leviton LLP, one of five companies in a series of lawsuits in Delaware's Chancery Court that seek to invalidate an "irrevocable resignation requirement" in company bylaws.
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May 23, 2024
Apple Investor Again Seeks Green Light For $490M Settlement
An Apple Inc. investor has asked a California federal judge to revisit a $490 million settlement deal that would end claims the tech giant misled investors about iPhone sales in China, telling the court that it had addressed the judge's critique that parts of the relevant filings were "convoluted."
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May 23, 2024
FirstKey Sanctioned For Trying To Coerce Workers In OT Suit
A Texas federal judge sanctioned FirstKey Homes LLC for issuing coercive communications to employees in an apparent effort to steer them from joining a proposed wage and hour class action, finding Wednesday the only purpose the company had was "attempting to undermine the collective action in this case."
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May 23, 2024
Irma Power Outage Claims Must Be Brought To Fla. Regulator
A Florida state appellate court reversed the class certification in a multibillion-dollar lawsuit brought against Florida Power & Light Co. over extended electricity outages during Hurricane Irma, citing a new law requiring ratepayers to bring their claims before the state's Public Service Commission.
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May 23, 2024
FirstEnergy Wants 6th Circ. To Shield Bribe-Probe Docs
FirstEnergy Corp. is pursuing the Sixth Circuit's input into its request to shield internal investigative documents from a class of investors and from two of its indicted former executives, saying the documents contain privileged legal advice given in the wake of a $1 billion bribery scandal.
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May 23, 2024
Humana Defeats ERISA Challenge To Retirement Plan Fees
Humana Inc. defeated a class action claiming it failed to make sure its $6.5 billion employee retirement plan was paying reasonable administrative and recordkeeping fees, with a Kentucky federal judge ruling Thursday there was nothing wrong with how the insurance company oversaw the plan.
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May 23, 2024
DOL Says 11th Circ. 'Alone' In ERISA Internal Remedy Stance
The U.S. Department of Labor urged the Eleventh Circuit to reinstate a lawsuit from former seafood company workers who claimed their employee stock ownership plan was overcharged in a $92 million deal, saying they didn't jump the gun by suing instead of pursuing claims internally.
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May 23, 2024
Amazon Workers' $5.5M COVID Screening Deal Gets Initial OK
A California federal magistrate judge on Wednesday gave her preliminary blessing to a $5.5 million settlement Amazon agreed to pay to a class of 250,000 employees who accused the digital retail behemoth of failing to pay for time spent undergoing mandatory COVID-19 screenings before their shifts.
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May 23, 2024
NCAA Can't Move Colo. Athlete Pay Case
A Colorado federal judge on Thursday rejected a bid by the National Collegiate Athletic Association and collegiate athletic conferences to move athletes' compensation allegations to California, where two similar cases are being heard, highlighting the choice by named plaintiffs to have their claims heard in Colorado.
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May 23, 2024
UBH Urges 9th Circ. To Take Up Petition In Health Claim Fight
United Behavioral Health implored the Ninth Circuit to grant the insurance company's petition for appellate court intervention in a consolidated action alleging mismanagement of mental health and substance use disorder treatment claims, arguing a California federal court clearly erred by allowing further pleadings on a denial of benefits claim.
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May 23, 2024
Houston Law Firm Wants To DQ Creditors' Counsel In Ch. 11
Troubled MMA Law Firm PLLC is seeking to stop another firm from representing its bankruptcy creditors, arguing that MMA's principal had previously spoken with the other firm as a prospective client and had shared confidential information that now could be used against his firm.
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May 23, 2024
NFL Says Unsolicited-Text Suit Belongs In Arbitration
The NFL wants to force into arbitration a lawsuit filed by a New York woman frustrated with her inability to stop unwanted text messages from the football organization, citing a binding agreement she consented to when registering to receive notifications about the 2023 draft.
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May 23, 2024
Whirlpool Aims To Sink Fridge Wiring Defect Claims
Whirlpool Corp. is asking a Delaware federal court to throw out claims in a consolidated class action alleging it sold refrigerators with defective wiring, saying the complaint fails to show it had any knowledge of the defect.
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May 23, 2024
Philly-Area Home Health Co.'s OT Settlement Gets First Nod
A Pennsylvania federal judge gave an early nod to a deal resolving a proposed class of nurses' overtime suit against a Philadelphia nursing home that allegedly failed to pay its in-home care workers the proper rates for overtime in violation of both state and federal wage laws.
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May 23, 2024
Wow Such Basic: Justices Back Crypto Fans In Dogecoin Duel
It's up to judges, not arbitrators, to figure out whether contracts between businesses and consumers have subtly superseded earlier agreements to hash out disputes in arbitration rather than litigation, the U.S. Supreme Court ruled Thursday.
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May 22, 2024
American Air Pilots Win Cert. Over 401(k)'s ESG Investments
A Texas federal judge on Wednesday certified a class of pilots accusing American Airlines of packing its $26 billion retirement plan with investments that focused too heavily on environmental, social and governance factors, like climate change, and too little on financial returns.
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May 22, 2024
Stubhub, Attys Beat Sanctions Bid For Lost Hyperlinked Docs
A California federal magistrate judge on Monday rejected a request for sanctions against StubHub and its counsel over problems finding hyperlinked documents in a case brought by consumers seeking refunds for events that were canceled or rescheduled due to COVID-19, saying the court's order requiring their production was "in most cases impossible to comply with."
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May 22, 2024
Wash. Health System Wants $230M Worker Class Win Axed
A Washington hospital system is seeking to derail a nearly $230 million judgement in favor of workers in a class wage case, contending the plaintiffs' key expert who testified at a state court trial recommended that jurors calculate damages based on a flawed equation that didn't account for differences in pay classifications.
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May 22, 2024
Caesars Escapes Privacy Suit Over Online Video Games
A New Jersey federal judge on Wednesday tossed without prejudice a proposed class action accusing Caesars of illegally sharing the personal identifying information of those who played video games on its casino website, saying the online games are not covered under the law the plaintiff alleges the casino violated.
Expert Analysis
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Transparency And Explainability Are Critical To AI Compliance
Although there is not yet a comprehensive law governing artificial intelligence, regulators have tools to hold businesses accountable, and companies need to focus on ensuring that consumers and key stakeholders understand how their AI systems operate and make decisions, say Chanley Howell and Lauren Hudon at Foley & Lardner.
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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.