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Class Action
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March 27, 2023
9th Circ. Mulls Arbitration Denial In Amazon Stolen Tips Spat
A Ninth Circuit panel considered Monday whether to uphold a Washington federal court's decision keeping Amazon Flex drivers' stolen tips dispute out of arbitration, with one judge expressing skepticism of the company's take on what defines a class of workers engaging in interstate commerce.
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March 27, 2023
Judge Trims Suit Claiming Wyndham Hid Timeshare Fine Print
A Delaware federal judge on Monday narrowed claims from plaintiffs seeking class certification in a case alleging that Wyndham Vacation Resorts Inc. failed to tell would-be buyers that their timeshares carried little to no resale value and came with hidden fees, among other omissions.
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March 27, 2023
Furniture Store Wants Class Notice Delay During Cert. Appeal
Bob's Discount Furniture and its delivery provider asked a New Jersey federal court Monday to delay informing drivers that they may be part of a class in an overtime pay lawsuit, arguing that it will cost the companies money that they can't get back if the Third Circuit undoes the class.
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March 27, 2023
Ex-Health Workers Seek DOJ's DaVita Docs In No-Poach Suit
The U.S. Department of Justice should be forced to turn over documents from its failed antitrust case against DaVita, according to a group of former health workers suing the dialysis giant and other health providers, arguing the government's criminal case centered on the same no-poach agreements alleged in their suit.
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March 27, 2023
Broker Tries To Bolster Antitrust Case Against 'Thanos' CEO
A Florida mortgage broker is pushing to file a supplemental class action complaint in its proposed antitrust class action against United Wholesale Mortgage LLC, arguing that the mortgage company and its CEO Mat Ishbia have made several recent disclosures and statements that support the suit's antitrust claims.
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March 27, 2023
Consumers Contest Abbott's Bid To Toss Infant Formula MDL
Parents have urged an Illinois federal judge to disregard Abbott Laboratories' bid to escape their claims related to its sale of contaminated Similac infant formula in multidistrict litigation, calling the company's motion a "last-ditch effort to avoid liability" after selling unsafe product produced in "unsanitary conditions."
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March 27, 2023
Uber Driver Must Arbitrate Individual PAGA Claim
A California appeals court held that Uber could send a worker's individual labor violation claims into arbitration but paused his representative state law claims pending the arbitral ruling, finding individual arbitration does not prevent him from pursuing claims on others' behalf in court.
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March 27, 2023
Natixis 401(k) Plan Suit Merits Class Status, Judge Advises
A Massachusetts federal magistrate judge has recommended that a group of Natixis workers who claim the French investment bank mismanaged its retirement plan can proceed as a class in their bid to recover alleged financial losses.
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March 27, 2023
'Poorly Suited' Magna ERISA Plaintiffs Can't Lead Class
A Michigan federal judge on Monday denied certification of a proposed class alleging auto parts supplier Magna International mismanaged its retirement fund, saying the named representatives' past criminal convictions and lack of knowledge about the case undermine their ability to represent the class.
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March 27, 2023
Student Debt Collector To Pay $45K For Witness Nondisclosure
A student loan collector and its law firm, which delayed a trial by more than six months because they failed to communicate that a subpoenaed witness suffered a stroke and therefore could not be deposed amid a battle over student loan debt collection, have been hit with $45,000 sanctions in New York federal court.
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March 27, 2023
Suit Says Stanley Black & Decker Hyped Demand As Sales Fell
Stanley Black & Decker Inc. excited investors with forecasts of robust long-term demand in its key Tools & Outdoor product division, but the stock price plunged when the company disclosed disappointing sales in the first half of 2022, according to a proposed securities class action filed in Connecticut federal court.
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March 27, 2023
California Pizza Employees Take Settlement Fight To 9th Circ.
Two employees of California Pizza Kitchen are urging the Ninth Circuit to weigh in on whether a California federal court unfairly approved a settlement ending litigation stemming from a company data breach that occurred last year.
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March 27, 2023
Catching Up With Delaware's Chancery Court
A whopping $285 million fee award proposal hit the headlines in Law360's Chancery Court news last week, along with new suits from shareholders of Meta, Stitch Fix and Indie Lee. Delaware's Court of Chancery also welcomed a new court administrator and considered shareholder challenges at Rupert Murdoch's Fox Corp. and Snapchat's Snap Inc.
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March 27, 2023
ICE Fights Bid To Certify Asylum-Seekers Class In Breach Suit
U.S. Immigration and Customs Enforcement urged a D.C. court against certifying an asylum-seeker class suing over a November data breach, saying it has done what it can to mitigate the harm of accidentally exposing the identities of thousands of asylum-seekers.
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March 27, 2023
Federal Judge Downs 'Rapid Release' Tylenol Suit
A federal judge has dismissed a proposed class action against Johnson & Johnson over allegations that consumers were misled to believe "rapid release" Tylenol gelcaps work faster than less expensive options, saying there is no foreseeable risk of harm.
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March 27, 2023
Macy's Reaches $10.5M Deal To Settle Thread Count Suit
A proposed class of bedsheet buyers is asking an Ohio federal court to give the go-ahead to a $10 million deal with Macy's Inc. and Macy's West Stores Inc. to resolve claims that the store misled consumers about the thread count of bedsheets it sold.
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March 24, 2023
McMahon To Repay WWE $17M For Misconduct Probe
World Wrestling Entertainment Inc. founder and Chairman Vincent K. McMahon agreed to pay the company $17.4 million to reimburse it for costs related to an investigation into allegations of sexual misconduct against the executive, WWE said in a filing with the U.S. Securities and Exchange Commission on Friday.
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March 24, 2023
Amazon Antitrust Suit Mostly Survives Another Dismissal Bid
A Washington federal judge on Friday cut some claims from a consumer lawsuit alleging that Amazon imposed anti-competitive restrictions on third-party sellers, but again refused to throw out the bulk of the antitrust suit, ruling that the consumers' allegations as to the overall effects of Amazon's alleged conduct "are sustainable."
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March 24, 2023
Parents Want Cheer Co. Punished For Sanction Motion
Parents who have accused cheerleading supply company Varsity Brand of working with others to raise the price of participating in competitive cheerleading are seeking sanctions again in the contentious litigation, this time in response to Varsity's own "frivolous" sanctions motion.
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March 24, 2023
Opioid Theory Reaches 'Alcohol, Guns, Phones,' 4th Circ. Told
A West Virginia federal judge's monumental rejection of a multibillion-dollar opioid case correctly avoided a "dramatic rewriting" of state law that would threaten legal exposure for sellers of liquor, cellphones, firearms and other lawful products, drug distributors told the Fourth Circuit on Friday.
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March 24, 2023
More Celebs Could Meet SEC In Court Over Crypto Posts
Celebrities accused of failing to disclose they were paid to post about cryptocurrency online are usually reluctant to go toe-to-toe with the U.S. Securities and Exchange Commission in court, but rising civil penalties and fears of class litigation might leave some wanting to try their luck before a judge instead of the more common route of settlement, legal experts told Law360.
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March 24, 2023
Citigroup Investor Suit Over $400M OCC Fine Axed, For Now
Citigroup on Friday beat a proposed investor class action stemming from a $400 million fine it paid the Office of the Comptroller of the Currency when a New York federal judge found, among other things, that the allegedly misleading statements and omissions the bank made about its internal controls were not actionable.
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March 24, 2023
Amazon Fights Amended Complaint Bid In Alexa Ads Suit
Allowing a proposed class to amend a lawsuit accusing Amazon of using Alexa-captured audio for targeted advertising without users' consent would be a "futile exercise," the e-commerce giant told a Washington federal judge, urging the court to toss the Alexa users' complaint permanently.
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March 24, 2023
Bystolic 'Side Deals' Deemed Legit, Not Generic Delay Plans
Drug wholesalers, retailers and employee benefit funds made none of the complaint changes they'd need to, to undermine the legitimacy of drug supply and development deals an AbbVie predecessor struck settling patent infringement litigation staving off generic versions of hypertension drug Bystolic, according to a ruling unsealed Friday.
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March 24, 2023
Laid-Off Worker Sues Bed Bath & Beyond Under WARN Acts
Bed Bath & Beyond and a subsidiary have failed to treat all of their workers fairly under the law while executing the planned closure of 400 stores nationwide, including the entire Harmon Face Values chain, according to a proposed class action filed Friday in New Jersey federal court.
Expert Analysis
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Opinion
9th Circ. Should Rethink Inadequate UBH Ruling
The Ninth Circuit should seriously consider rehearing Wit v. United Behavioral Health en banc because its recent claims reprocessing decision in the case raises troubling questions about the future of Employee Retirement Income Security Act's class actions, says Mark DeBofsky at DeBofsky Law.
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5th Circ. Confidential Witness Ruling Is A Big Change
The Fifth Circuit's recent ruling in Oklahoma Firefighters Pension and Retirement System v. Six Flags that confidential witness claims can be sufficient to establish scienter is a significant message that anonymous witness allegations should be credited, and plaintiffs should feel more confident including these claims in their securities fraud complaints, say James Christie and David Saldamando at Labaton Sucharow.
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FTC Noncompete Ban Could Open State Litigation Floodgate
The Federal Trade Commission’s recently proposed ban on most employment noncompete agreements is likely to result in a cascade of litigation on the state level, providing a basis for private consumer class actions and state attorney general enforcement, say Ryan Strasser and Carson Cox at Troutman Pepper.
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Cannabis Cos. Must Brace For More Mislabeling Class Actions
In the face of increasing consumer class actions alleging that labels and advertisements misstate products' THC content, cannabis companies must prepare for direct and collateral legal risks as well as potential damage to the industry's credibility as a whole, say Cassandra Beckman Widay and Amy Rubenstein at Dentons.
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High Court Slack Case Not Likely To Broadly Affect Issuers
If the U.S. Supreme Court decides in Slack v. Pirani to limit claims under the Securities Act for direct listings to only the purchase of registered shares, it's unlikely to create a free-for-all environment for issuers, as some have claimed, say Susan Hurd and Madeleine Juszynski at Alston & Bird.
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5 Ways Attorneys Can Use Emotion In Client Pitches
Lawyers are skilled at using their high emotional intelligence to build rapport with clients, so when planning your next pitch, consider how you can create some emotional peaks, personal connections and moments of magic that might help you stick in prospective clients' minds and seal the deal, says consultant Diana Kander.
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Ruling May Affect FCRA Claims About Private Student Loans
The Second Circuit’s recent ruling in Mader v. Experian may support credit reporting agencies defending Fair Credit Reporting Act claims that follow a Chapter 7 private student loan discharge, introducing new challenges for consumers skipping directly to the FCRA claim, say Jessica Salisbury-Copper and Kelsey Mincheff at Thompson Hine.
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5 Keys To A Productive Mediation
Excerpt from Practical Guidance
Cortney Young at ADR Partners discusses factors that can help to foster success in mediation, including scheduling, preparation, managing client expectations and more.
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Crypto Coverage After FTX Fall: D&O Liability
The fallout surrounding the recent implosion of cryptocurrency firm FTX highlights potential crypto coverage exposure — including in the area of directors and officers liability — for insurance carriers in the evolving and largely misunderstood world of digital assets, says Anjali Das at Wilson Elser.
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And Now A Word From The Panel: 2022 MDLs By The Numbers
A highlight of the Judicial Panel on Multidistrict Litigation's practice during 2022 was the significant percentage increase of new MDL petitions granted — and given how many actions and plaintiffs may be involved in a single MDL, the true impact of this increase may be even greater than it appears, says Alan Rothman at Sidley.
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Evaluating The Legal Ethics Of A ChatGPT-Authored Motion
Aimee Furness and Sam Mallick at Haynes Boone asked ChatGPT to draft a motion to dismiss, and then scrutinized the resulting work product in light of attorneys' ethical and professional responsibility obligations.
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Litigation, Compliance And Enforcement In The 'Crypto Winter'
In 2022, cryptocurrency valuations plummeted, litigation proliferated and the "crypto winter" led to several high-profile bankruptcies, resulting in novel factual and legal questions being raised in areas like general commercial litigation, intellectual property, securities, bankruptcy, cybersecurity and compliance, say attorneys at Arnold & Porter.
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7 Tips To Increase Your Law Firm's DEI Efforts In 2023
Law firms looking to advance their diversity, equity and inclusion efforts should consider implementing new practices and initiatives this year, including some that require nominal additional effort or expense, say Janet Falk at Falk Communications and Gina Rubel at Furia Rubel.
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Series
Keys To A 9-0 High Court Win: Get Back To Home Base
When I argued for the petitioner in Morgan v. Sundance before the U.S. Supreme Court last year, I made the idea of consistency the cornerstone of my case and built a road map for my argument to ensure I could always return to that home-base theme, says Karla Gilbride at Public Justice.
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3 NFT Issues Practitioners Should Consider In 2023
The use of non-fungible tokens grew dramatically in 2022 across many industries, so attorneys should keep their eyes on developments in licenses to artwork, royalties on secondary sales and applications of securities law, says Mark Radcliffe at DLA Piper.