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Class Action
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July 31, 2024
Chancery Keeps Challenge To $1.5B Genius Sports Deal Alive
Stockholders of a blank check company that took sports data company Genius Sports Ltd. public have overcome a bid to spike their Delaware Court of Chancery challenge to the $1.5 billion deal.
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July 31, 2024
Worker Snags Deal To End OT Suit With Pilgrim's Pride
A worker who claimed that one of the country's largest chicken producers misclassified her as overtime-exempt told a Colorado federal judge she reached a settlement with the company to end her proposed collective action.
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July 31, 2024
Antitrust Group Backs Naval Engineers' No-Poach Case
An advocacy group that supports robust enforcement of antitrust laws has urged the Fourth Circuit to revive a case from former naval engineers accusing military shipbuilders of using secret "no-poach" agreements to avoid competing for workers.
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July 31, 2024
Insurer Says No Coverage For Wash. Pay Law Class Actions
An insurer said it has no duty to defend or indemnify food service companies accused of violating the Washington Equal Pay and Opportunities Act in two putative class actions, telling a federal court Wednesday the allegations don't trigger coverage under an employment practices liability insurance policy.
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July 31, 2024
$7.25M Del. Settlement Offered In $1.35B UpHealth SPAC Suit
Parties to a Delaware Court of Chancery stockholder suit that challenged a $1.35 billion take-public "blank-check" company merger with Florida-based digital health manager UpHealth Inc. have reached a $7.25 million settlement of all claims, pending court approval, according to an agreement filed Tuesday.
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July 31, 2024
Mortgage Co.'s $300K Wage Deal Gets Initial OK
A California federal judge has given an initial stamp of approval to a $300,000 settlement between a mortgage company and a class of its employees, ending claims that the company failed to pay hourly wages or provide meal and rest breaks.
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July 31, 2024
Philip Morris Nicotine Pouches Are Deceptive, Lawsuit Claims
Philip Morris violated advertising and trade practices laws by selling "highly addictive" nicotine products designed and packaged to resemble breath mints and deceptively telegraphed that the tobacco-free pouches were healthier than cigarettes, according to a proposed class action in Connecticut federal court.
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July 31, 2024
CrowdStrike Investors Sue Over Stock Drop After Outage
A group of CrowdStrike investors sued the cybersecurity company Tuesday in Texas federal court, alleging that it misrepresented the measures it was taking to prevent a system crash, which caused its stock price to plummet after the platform experienced a massive outage earlier this month.
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July 31, 2024
4 Mass. Rulings You May Have Missed In July
Massachusetts state court judges refereed a damages dispute between a real estate titan and a Big Four consultant, ruled in favor of allegedly underpaid healthcare workers and untangled a defamation suit over a labor executive's old social media posts, among other notable rulings during the month of July.
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July 31, 2024
DraftKings Closes NFT Platform Over 'Legal Developments'
DraftKings has announced that it is shuttering its nonfungible token marketplace due to "recent legal developments," with the decision coming weeks after a Massachusetts federal judge permitted a proposed securities class action involving the marketplace to move forward.
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July 31, 2024
Fifth Third Seeks Exit From Bounced Check Fee Suit
Cincinnati-based Fifth Third Bank NA has asked a federal judge to toss a proposed class action alleging it charges consumers unlawful fees when they try to deposit a check that bounces, saying the customers agreed to a contract that contains fee clauses for depositing returned items.
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July 31, 2024
Insurer Wants Out Of Yacht Brokerage Group Antitrust Suit
A professional liability insurer for a yacht brokerage trade group has told a Florida federal court that it owes no coverage for an underlying proposed class action accusing the group of engaging in anticompetitive conduct, pointing to an exclusion barring coverage for "standard setting" claims.
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July 31, 2024
Chicago Area's Brookfield Zoo Sued Over Data Breach
The popular Brookfield Zoo has been hit with a putative class action alleging inadequate cybersecurity measures failed to protect against a January data breach the zoo waited six months to make public, putting employees at risk of identity theft without proper notice.
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July 31, 2024
TaxAct Customers' Attys Want $5.8M Fee For $23M Deal
The attorneys for TaxAct Inc. customers who secured a $23 million deal to resolve claims that the company was secretly sharing confidential taxpayer information with Meta and Google asked a federal judge to award them more than $5.8 million in fees for their work.
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July 31, 2024
NCAA Wants Prize-Money Restrictions In Place During Suit
The National Collegiate Athletic Association has urged a North Carolina federal judge to keep in place its rules barring college athletes from collecting outside prize money during a lawsuit challenging their legality, arguing the case is simply about money, not pressing circumstances.
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July 31, 2024
Pa. Uber Misclassification Case Tossed After 8 Years
A Pennsylvania federal judge tossed an 8-year-old suit by Uber Black drivers claiming the ride-sharing company misclassified them as independent contractors, saying the case lost hope of a resolution after two unsuccessful trials and a trip to the Third Circuit.
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July 31, 2024
Southern Co. Beats Retirees' Suit Over Mortality Data
Federal benefits law doesn't mandate specific actuarial assumptions in the calculation of pension payments, a Georgia federal judge ruled as he tossed a proposed class action alleging that a Southern Co. subsidiary's use of decades-old mortality tables shorted retirees by thousands of dollars.
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July 31, 2024
Ga. Carpet Cleaning Co. Hit With Wages Class Action
A carpet cleaning and restoration company in Marietta, Georgia, faces a proposed class action lodged by a former employee who claims it failed to pay overtime as required under the Fair Labor Standards Act.
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July 31, 2024
Firms Must Justify $1.4M Fee Bid In State Street Settlement
A Massachusetts federal judge who oversaw a yearslong attorney overbilling scandal and slashed a fee bid in another case over alleged false and misleading statements ordered a pair of firms to tell him why they should get one-third of a $4.3 million settlement with State Street Corp.
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July 30, 2024
Judge Asks Dish If Circuits Truly Split On Data Breach Claims
A Colorado federal judge on Tuesday pressed Dish Network Corp. and a group of current and former Dish employees who are suing the company in a putative class action about a ransomware attack last year to address whether there is a split among federal circuits on what allegations are needed to support claims in data breach cases.
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July 30, 2024
2024 Product Liability Areas To Watch
The growing movement in state laws about whether consumers can repair their own products is catching attorneys' eyes, as well as recent changes in rules that govern multidistrict litigation, which often involve pharmaceuticals and medical devices.
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July 30, 2024
Cook Medical Vein Filter Claims Came Too Late, 7th Circ. Says
The Seventh Circuit on Tuesday upheld Cook Medical LLC's win in a woman's lawsuit claiming the company's inferior vena cava filter caused her to develop abdominal pain and that the device fractured when it was removed, saying the suit was filed after the statute of limitations had expired.
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July 30, 2024
LastPass Can't Ditch Data Breach Fight, But Its Parent Co. Can
A Massachusetts federal judge trimmed some claims Tuesday from a sprawling putative class action alleging LastPass failed to prevent a data breach of its backup cloud server, throwing out allegations against LastPass US LLP's parent company, but finding the consumers sufficiently stated claims against LastPass and alleged they have been harmed.
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July 30, 2024
FTX Users Say Sullivan & Cromwell Must Face Abetting Claims
FTX customers told a Florida federal judge on Tuesday that Sullivan & Cromwell LLP can't dismiss customer claims it aided and abetted the defunct cryptocurrency exchange's fraud as "speculative allegations" when the customers' complaint "paints a much more detailed and nefarious picture."
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July 30, 2024
4th Circ. Refuses To Certify Class Of Golf Course Investors
The Fourth Circuit on Tuesday declined to reverse a lower court order denying class certification to a group of Chinese investors who allege their money was used to purchase several golf courses, ruling they are not similar enough to make certification proper.
Expert Analysis
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Opinion
Proposed Rule Could Impair MDL Flexibility, Harm Plaintiffs
While proposed Federal Rule of Civil Procedure 16.1 is intended to enhance the management of multidistrict litigation proceedings, its one-size-fits-all requirements could stifle the flexibility that judges need to address the varying circumstances of MDLs effectively, and jeopardize plaintiffs' ability to pursue justice, say Christopher Seeger and Jennifer Scullion at Seeger Weiss.
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Del.'s Tesla Pay Takedown Tells Boards What Not To Do
The Delaware Chancery Court’s ruthless dissection of the Tesla board’s extreme departures from standard corporate governance in its January opinion striking down CEO Elon Musk’s $55 billion pay package offers a blow-by-blow guide to mistakes Delaware public companies can avoid when negotiating executive compensation, say attorneys at Cleary.
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What Brands Must Know For Calif. Recycle Label Compliance
A brand that stamps nonrecyclable packaging with the chasing arrows symbol could face liability under California's new law on labeling recyclable material, so brand owners should keep an eye on the state's pending survey process to identify which materials meet the criteria before requirements go into effect, say attorneys at ArentFox Schiff.
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Opinion
3rd-Party Financiers Have Power To Drive Mass Tort Cases
The abnormal recovery premium presented by modern mass tort cases coupled with their deemphasized role for attorneys creates an opportunity for third-party financiers to both create and control these cases, says Samir Parikh at Lewis & Clark Law School.
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Del. Dispatch: Clarification On Fiduciary Duties Of Controllers
The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.
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Reimagining Law Firm Culture To Break The Cycle Of Burnout
While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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Series
Competing In Dressage Makes Me A Better Lawyer
My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.
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What Retailers Should Note In Calif. Web Tracking Suits
As retailers face a deluge of class actions alleging the use of conventional web analytic tools violate wiretapping and eavesdropping provisions of the California Invasion of Privacy Act, uncovering the path toward a narrow interpretation of the law will largely depend on how these cases proceed, say Matthew Pearson and Kareem Salem at BakerHostetler.
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Musk Pay Package Ruling Offers Detailed Lesson On Del. Law
Anat Alon-Beck and John Livingstone at Case Western Reserve University discuss the specifics that led Delaware's chancellor to rescind Elon Musk's $55.8 billion Tesla pay package on Jan. 30, how the state’s entire fairness doctrine played into the ruling, and its bigger-picture impact on the executive compensation landscape.
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Chancery's Sears Ruling Clarifies Stockholder Duties
In a recent landmark decision involving stockholders of Sears Hometown and Outlet Stores, the Delaware Chancery Court addressed for the first time what precise duties a controlling stockholder owes, highlighting that controller interference with board action is not per se invalid and that enhanced scrutiny is a reasonableness test, say Christopher Chuff and Taylor Bartholomew at Troutman Pepper.
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Del. Ruling Adds Momentum For Caremark Plaintiffs
The Delaware Supreme Court's recent opinion in Lebanon County Employees' Retirement Fund v. Collis could be viewed as expanding plaintiffs' ability to viably plead a Caremark claim against directors, so Delaware companies should be on heightened alert and focus on creating a record of board oversight, say attorneys at V&E.
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The Legal Industry Needs A Cybersecurity Paradigm Shift
As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.
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Best Practices For Untangling Mass Tort Claimants' Liens
Recent litigation over faulty earplugs produced by 3M is just one example of a mass tort where settlement payouts to claimants will likely be complicated by the number of liens and lienholders involved — but claimants' attorneys can speed up the lien resolution process by keeping a few key strategies in mind, says Mark Eveland at Verus.
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5 Reasons Associates Shouldn't Take A Job Just For Money
As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.
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Series
Playing Competitive Tennis Makes Me A Better Lawyer
My experience playing competitive tennis has highlighted why prioritizing exercise and stress relief, maintaining perspective under pressure, and supporting colleagues in pursuit of a common goal are all key aspects of championing a successful legal career, says Madhumita Datta at Lowenstein Sandler.