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Class Action
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June 11, 2024
Elon Musk Sued Anew In Del. Over $16B Tesla Stock Sale
A Tesla shareholder has hit Elon Musk with a lawsuit over his 2021 sale of $16 billion worth of stock just before his purchase of Twitter, claiming the billionaire profited by concealing his intent to buy the social media platform and made the purchase in part to reinstate former President Donald Trump's account.
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June 10, 2024
Pork Producers Look To Put A Fork In Price-Fixing Claims
Pork producers accused of colluding to diminish supply and inflate prices in sprawling multidistrict litigation have urged a Minnesota federal court to toss all remaining buyers' claims against them, saying statistical reports they use are lawful and their accusers' complaints are untimely.
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June 10, 2024
Fox Views NFL Sunday Ticket As 'Existential' Threat, Jury Told
A retired executive with Fox Sports testified Monday in a trial over multibillion-dollar antitrust claims brought against the NFL by Sunday Ticket subscribers that his network asked the league to agree to specific Sunday Ticket pricing because it viewed the DirecTV television package as an "existential" threat.
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June 10, 2024
Voyager Crypto Investors Get Initial OK For $2.4M Deal
A Florida federal judge gave the first green light on Monday to a $2.4 million settlement reached between retired football star Rob Gronkowski, NBA player Victor Oladipo and NASCAR driver Landon Cassill and a class of Voyager Digital Holdings Inc. investors over claims that the men helped promote the failed cryptocurrency exchange.
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June 10, 2024
Rehab Clinics Add To MultiPlan Insurance Fixing Pile-On
Addiction treatment providers sued MultiPlan, Aetna, Cigna, UnitedHealth and Elevance Friday and Saturday in 14 separate New York federal court complaints that appear to be the first to add substance abuse disorder-specific allegations to the cases pegging MultiPlan at the center of a scheme to suppress insurer payouts.
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June 10, 2024
Coca-Cola Beats False Ad Claims Of PFAS In Juice, For Now
Coca-Cola defeated, for now, a proposed false advertising class action alleging its line of Simply Tropical fruit juice contains "forever chemicals," when a New York federal judge said Monday the customer lacks standing because his complaint relies on a single allegation of testing without linking the test result to his purchase.
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June 10, 2024
6th Circ. Won't Rethink Drop Of Suit Over Doped Derby Horse
A Sixth Circuit panel on Monday declined to rehear arguments from a group of gamblers who claim they should have been paid for their 2021 Kentucky Derby winning bets after the first-place horse was eventually disqualified for doping.
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June 10, 2024
14 Tire Price-Fixing Cases Consolidated In Ohio
Bridgestone, Goodyear, Michelin and other tire companies will be fighting a growing number of replacement tire price-fixing proposed class actions in Ohio federal court under a Judicial Panel on Multidistrict Litigation order Friday consolidating 14 such lawsuits and identifying 21 more that may follow suit.
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June 10, 2024
Fat Brands Faces Investor Suit Over $47M Loan Scheme
Fat Brands and its executives face a proposed class action in California federal court alleging that they falsely claimed to be cooperating with governmental probes into their CEO's spending $47 million on company loans while skirting taxes, leading stock prices to plunge last month when criminal charges were announced.
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June 10, 2024
Ill. Judge Hangs Gain False Labeling Claims Out To Dry
An Illinois consumer who washes clothes with Gain detergent cannot pursue fraud claims targeting a bottle's purported load capacity because she hasn't shown that reasonable customers believe the label refers to large rather than medium loads, a federal judge said Monday.
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June 10, 2024
Apple IPhone Antitrust MDL Heads To NJ, Where DOJ Is Suing
Apple customers accusing the company of locking in iPhone users through anticompetitive agreements will have their cases consolidated in New Jersey, the U.S. Judicial Panel on Multidistrict Litigation ruled Friday, finding the parties can coordinate with the U.S. Department of Justice's enforcement action there to avoid duplicative discovery and inconsistent rulings.
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June 10, 2024
SoCal Workers Want Class Cert. In Union Healthcare Fee Suit
A group of union-represented Southern California hospitality workers who say they're getting charged much higher health insurance rates than their counterparts in Las Vegas are seeking class certification in their lawsuit challenging the rates, according to a filing in Illinois federal court.
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June 10, 2024
Bloomberg's Utility Bond Changes Hurt Consumers, Suit Says
Bloomberg LP was hit with a proposed class action by California and Texas electricity customers who claim the company reclassified certain bonds issued by utility companies to elevate their perceived risk and hike interest rates, a move they say benefited institutional investors but imposed increased costs on electricity customers.
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June 10, 2024
'Junk Fee' Suit Against Hilton Shipped Back To State Court
A D.C. federal judge has sent back to state court a traveler advocacy group's lawsuit accusing Hilton of tricking hotel guests into paying "junk fees" late in the booking process, rejecting the hotel chain's bid to litigate the proposed class action in federal court.
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June 10, 2024
Colo. Justices Say Toxic Tort Plaintiffs Didn't Waive Privilege
Colorado's justices on Monday said plaintiffs suing a medical sterilization plant over exposure to a carcinogen cannot be forced to turn over communications with their lawyers related to an expert report, rejecting the plant's argument that the disclosure of a spreadsheet to an expert waived attorney-client privilege.
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June 10, 2024
Uber Black Drivers Aren't Like Plumbers, Philly Jury Told
Uber Black drivers on Monday tried for a second time to convince a Pennsylvania federal jury that the ride-sharing company owes them the same perks as employees, saying they're nothing like plumbers, the quintessential independent contractors.
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June 10, 2024
Drugmakers Look To Nix Non-Insulin Claims From AG Suit
Novo Nordisk, Eli Lilly and Sanofi-Aventis asked the federal judge overseeing a diabetes drug price-fixing multidistrict litigation to rule for drugmakers on Mississippi's claims the pricing for GLP-1s is illegal, saying in a brief that the drugs are under patent and too new to be included in the insulin-pricing suit.
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June 10, 2024
Ill. Tool Maker Must Face Retirement Mismanagement Claims
An Illinois tool manufacturer must answer to accusations that it mishandled billions in employee retirement savings by allowing their plan to take on unreasonable recordkeeping fees and retaining underperforming funds, a federal judge said Monday.
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June 10, 2024
Calif. Cannabis Co. Stiiizy Wants Delta-8 Product Suit Tossed
A California cannabis company urged an Illinois federal judge to toss a consumer-led false advertising lawsuit alleging it put higher levels of THC in its vape pens than federally allowed, saying the buyers didn't even purchase the one product that was allegedly tested.
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June 10, 2024
Migrant Cleaners Rebuff Colo. Hotel's Bid To Ditch Wage Suit
The migrant contractor staff that cleaned a Colorado luxury hotel slammed the hotel's efforts to escape claims of underpaying its workers, telling a Colorado federal court Monday that the hotel set the terms of their employment.
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June 10, 2024
2nd Circ. Remands Malpractice Suit Against DLA Piper
The Second Circuit on Monday sent back to state court a Chinese smart car technology company's malpractice suit against DLA Piper that accused the firm of mishandling a shareholder suit, with the appeals court panel saying federal court does not have jurisdiction over the suit.
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June 10, 2024
Amid FBI Probe, Troubled Law Firm Gets Fees Win At 5th Circ.
An embattled Texas law firm has won another shot to secure fees for its work on hurricane-related cases in Louisiana, the Fifth Circuit ruled, one day after the FBI revealed it was investigating the firm over its client solicitation practices.
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June 10, 2024
Victims Of Chiquita-Funded Paramilitaries Win $38M Award
The first bellwether trial in multidistrict litigation against Chiquita over its funding of right-wing paramilitaries in Colombia's banana-producing region ended with a victory Monday afternoon for nearly all the plaintiffs, as a Florida federal jury awarded them $38.3 million in damages for the losses of their loved ones killed by paramilitaries.
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June 10, 2024
Kirkland Faces Class Claims Over Breach Of File Transfer Tool
A proposed class of victims of a data breach has sued Kirkland & Ellis LLP and various other entities in a Massachusetts federal court, accusing them of failing to "properly secure and safeguard [the] plaintiff's and other similarly situated individuals' private information" in the lead-up to the massive 2023 MOVEit data breach.
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June 10, 2024
Prudential Financial Hit With Data Breach Suit In NJ
Prudential Financial Inc. faces a negligence suit alleging the company failed to protect the personal information of nearly 37,000 clients after it acknowledged that certain of its systems were compromised in a February hacking incident involving so-called social engineering.
Expert Analysis
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An Overview Of Circuit Courts' Interlocutory Motion Standards
The Federal Arbitration Act allows litigants to file an immediate appeal from an order declining to enforce an arbitration agreement, but the circuit courts differ on the specific requirements for the underlying order as well as which motion must be filed, as demonstrated in several 2023 decisions, says Kristen Mueller at Mueller Law.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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When Courts Engage In Fact-Finding At The Pleading Stage
It remains to be seen whether the Ninth Circuit's pleading-stage factual determination in a securities class action against Nvidia was sui generis or part of a trend, but the court has created a template for district courts to follow, says Jared Kopel at Alto Litigation.
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3 Employer Strategies To Streamline Mass Arbitrations
Workers under arbitration agreements have gained an edge on their employers by filing floods of tedious and expensive individualized claims, but companies can adapt to this new world of mass arbitration by applying several new strategies that may streamline the dispute-resolution process, says Michael Strauss at Alternative Resolution Centers.
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9th Circ. ERISA Ruling Informs DOL's New Fiduciary Proposal
The Ninth Circuit's reasoning in its recent Bugielski v. AT&T decision illustrates the importance of the U.S. Department of Labor's proposals to expand the reach of Employee Retirement Income Security Act third-party compensation disclosure rules and their effect on investment adviser fiduciaries, says Jeff Mamorsky at Cohen & Buckmann.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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How The Netherlands Became A Hub For EU Class Actions
As countries continue to implement the European Union Collective Redress Directive, the Netherlands — the country with the largest class action docket in the EU — provides a real-world example of what class and mass litigation may eventually look like in the bloc, say lawyers at Faegre Drinker and Houthoff.
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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.