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Class Action
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August 06, 2024
Baby Sock Co. Can't Beat Investor Suit, But SPAC Brass Can
Digital baby monitoring device manufacturer Owlet Inc. cannot escape a suit accusing it of misleading investors about approvals required from the U.S. Food and Drug Administration to sell its "smart socks," but brass at a blank check company that it merged with will be allowed to exit the suit.
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August 06, 2024
Anti-Rape Org. Told To Turn Over Docs In Uber Assault MDL
A D.C. federal judge on Tuesday directed the Rape, Abuse and Incest National Network to produce documents in response to a subpoena seeking information about the anti-sexual violence organization's work with Uber Technologies Inc. as part of multidistrict litigation in California over the sexual assault of Uber passengers.
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August 06, 2024
Fifth Third Bank Faces MDL Bid Over Allegedly Hidden Costs
A group of consumers is urging the Judicial Panel on Multidistrict Litigation to centralize in New Jersey five proposed class actions alleging Fifth Third Bank NA's solar panel financing business hid loan costs from consumers.
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August 06, 2024
Pennsylvania Hospital Gets Data Breach Suit Whittled
A Pennsylvania federal judge has shaved two counts off of a data breach lawsuit against Prospect Medical Holdings Inc., rejecting the hospital operator's argument that the plaintiffs lacked standing to bring the suit but agreeing that not all of them stated valid claims.
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August 06, 2024
Amazon Seeks Early Exit From Military Service Bias Suit
Amazon asked a Washington federal judge to end a proposed class action accusing it of demoting or terminating workers who take time off for military service, arguing that one of the plaintiffs was inadvertently fired while the other wasn't qualified for a promotion because he was "unprofessional."
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August 06, 2024
NC Farming Business Wants H-2A Forced Labor Claims Cut
Farming companies accused of human trafficking, forced labor and underpaying H-2A foreign temporary workers have urged a Virginia federal judge to dismiss the workers' suit, saying they failed to show the companies brought them to the U.S. for "involuntary servitude."
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August 06, 2024
Cargo Airline, Workers Forge Settlement In ESOP Battle
A Delaware federal judge on Tuesday agreed to stay a suit against Western Global Airlines and an investment manager after workers who alleged that their employee stock ownership plan was mishandled told the court they had reached a settlement.
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August 06, 2024
Funko Settles Derivative Litigation In Delaware, California
Pop culture lifestyle brand Funko Inc. has agreed to resolve derivative claims in multiple stockholder suits in California federal court and Delaware's Court of Chancery by implementing corporate governance reforms and paying up to $2.15 million to plaintiffs' attorneys, the company has announced.
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August 06, 2024
Frigidaire Dishwasher Defect Suit Tossed For Lack Of Proof
An Illinois federal judge has thrown out claims from seven plaintiffs alleging that Frigidaire-brand dishwashers made by Electrolux Home Products Inc. are defective, saying none of them have put forth proof that any design defect exists, let alone that the company had a duty to warn them of it.
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August 05, 2024
Epstein's Advisers Must Face Victims' Proposed Class Action
A New York federal judge on Monday refused to throw out a putative class action against associates of Jeffrey Epstein, yet also held that one of the victims couldn't pursue her claims in a 2021 liability release that is "about as broad and categorical as it gets."
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August 05, 2024
Elon Musk Can't Beat Twitter Investors' Suit Over Bot Claim
A California federal judge on Monday denied Elon Musk's bid to escape a shareholder suit alleging he misled Twitter investors by claiming the company had to provide information on an alleged bot problem before he could move forward with his $44 billion acquisition, saying Musk leaned on already-rejected arguments.
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August 05, 2024
Pluralsight's $20M Settlement With Investors Gets Initial OK
A Utah federal judge has given his preliminary blessing to Pluralsight Inc.'s proposed $20 million settlement with a certified class of investors accusing the cloud-based and video training courses provider of securities fraud, according to an order issued Friday.
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August 05, 2024
Chamber, Others Back 9th Circ. Ax Of Shopify Privacy Row
The U.S. Chamber of Commerce and several tech trade groups are among those pushing the full Ninth Circuit to affirm the toss of a proposed class action accusing Shopify of unlawfully collecting shoppers' sensitive information, arguing that overriding the decision would unfairly allow plaintiffs to sue online businesses in any court across the country.
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August 05, 2024
Kia Atty Reduced To 'Monty Python' Knight By Tentative Order
Kia and Hyundai's attorney told a California federal judge Monday that his tentative order denying the companies' motion to dismiss Chicago's claims in multidistrict litigation over car thefts left him feeling like the knight in "Monty Python and the Holy Grail" who loses his arms and legs but keeps fighting.
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August 05, 2024
Manufacturer Can't Get Coverage For BIPA Class Action
An Illinois federal judge awarded a win to an insurer Monday in a suit over coverage of underlying Biometric Information Privacy Act litigation, finding a contractual exclusion prevented coverage for a machine and plastics manufacturer accused of failing to secure employee data.
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August 05, 2024
Abandoned Gas Wells Class Action Survives 4th Circ. Battle
The Fourth Circuit on Monday rejected EQT Corp.'s and Diversified Energy Co.'s efforts to evade a proposed class action filed by West Virginia property owners who allege they've been harmed by abandoned oil and gas wells.
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August 05, 2024
Indivior Accused Of Overstating Prospects Of 3 Opioid Drugs
Drugmaker Indivior PLC has been hit with a proposed investor class action in Virginia federal court over claims it overstated the financial prospects of its drugs used to treat opioid use disorders and the company's ability to forecast such financial projections.
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August 05, 2024
EarnIn's Fees, Tips Are Usurious, Ga. Consumers Say
Pay advance app EarnIn has been hit with a proposed class action alleging its optional fees and tips are hidden interest payments that, on average, far exceed fair rates for consumer lending.
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August 05, 2024
Star Peak Shareholders Consolidate And Amend Class Action
Mix-and-match attorney teams will lead and manage a proposed class stockholder suit alleging damages from the blank check company deal that took artificial intelligence-driven energy storage business Stem Inc. public in April 2021, Delaware's chancellor has ruled.
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August 05, 2024
DXC Investor's Suit Says Execs Overhyped Integration Efforts
A DXC Technology investor filed a proposed class action in Virginia federal court Friday alleging the information technology giant over-touted its "transformation journey" and efforts to reduce restructuring and integration costs after acquiring several companies that caused investors to buy DXC common stock at artificially inflated prices.
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August 05, 2024
BofA Can't Get 4th Circ. To Look At Collective Cert. Process
A collective of mortgage loan officers seeking unpaid overtime won't land in front of the Fourth Circuit, a North Carolina federal judge ruled Monday, turning down Bank of America's bid to sort out which method to use for certifying collectives.
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August 05, 2024
Chinese Drug Co. Says Sanctions In Valsartan MDL Too Harsh
Chinese drug firm Zhejiang Huahai Pharmaceutical Co. Ltd. told a New Jersey federal court Friday that sanctions authorizing two adverse jury instructions in multidistrict litigation over generic drugs contaminated with carcinogens should be overturned, arguing the plaintiffs did not allege the bad faith required for such a harsh penalty.
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August 05, 2024
Pomerantz To Lead Suit Over Ad Tech Co.'s Microsoft Ties
Pomerantz LLP beat out several other firms on Monday to lead a proposed shareholder class action alleging that shares of ad tech company Perion Network declined nearly 40% after its strategic partner Microsoft Bing "unilaterally" changed its search advertising pricing.
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August 05, 2024
Google, OpenAI Accused Of Using YouTube Videos To Train AI
A California man has hit Google and OpenAI with separate proposed class actions in federal court accusing the companies of unlawfully transcribing YouTube videos and using them to train their large language model artificial intelligence products without the permission of the people who uploaded those videos.
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August 05, 2024
Patreon To Pay $7.25M To End Subscribers' Video Privacy Suit
Patreon has agreed to pay $7.25 million to settle a proposed class action on behalf of 1.2 million users who claim the content subscription-based platform violated the Video Privacy Protection Act by sharing their video-watching data with Facebook-owner Meta Platforms Inc. without their consent, according to court documents filed Friday.
Expert Analysis
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How American Airlines ESG Case Could Alter ERISA Liability
Spence v. American Airlines, a Texas federal case over the airline's selection of multiple investment funds in its retirement plan, threatens to upend the Employee Retirement Income Security Act's legal framework for fiduciary liability in the name of curtailing environmental, social and governance-related activities, say attorneys at Mayer Brown.
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Series
Serving As A Sheriff's Deputy Made Me A Better Lawyer
Skills developed during my work as a reserve deputy — where there was a need to always be prepared, decisive and articulate — transferred to my practice as an intellectual property litigator, and my experience taught me that clients often appreciate and relate to the desire to participate in extracurricular activities, says Michael Friedland at Friedland Cianfrani.
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Former Minn. Chief Justice Instructs On Writing Better Briefs
Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.
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Unpacking The Complicated Question Of CIPA's Applicability
As the number of California Invasion of Privacy Act cases increases, more and more companies with little-to-no California presence are being hauled into California court, raising questions of when CIPA applies and to whom, says Matthew Pearson at BakerHostetler.
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Stay Interviews Are Key To Retaining Legal Talent
Even as the economy shifts and layoffs continue, law firms still want to retain their top attorneys, and so-called stay interviews — informal conversations with employees to identify potential issues before they lead to turnover — can be a crucial tool for improving retention and morale, say Tina Cohen Nicol and Kate Reder Sheikh at Major Lindsey.
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Antitrust Ruling Shows Limits Of US Law's Global Reach
Antitrust plaintiffs often cite the legislative history of the Foreign Trade Antitrust Improvements Act to support application of U.S. antitrust law to alleged injuries abroad, but as a California federal court recognized recently in Figaro v. Apple, the cited history does no such thing, say Daniel Swanson and Eli Lazarus at Gibson Dunn.
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Overdraft Opt-In Practices Hold Risks For Banks
A recent Consumer Financial Protection Bureau action against Atlantic Union Bank regarding overdraft opt-in sales practices highlights compliance risks that financial institutions must be aware of, especially when enrolling customers by phone, says Kristen Larson at Ballard Spahr.
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And Now A Word From The Panel: Benefits Of MDL Transfers
A recent order from the Judicial Panel on Multidistrict Litigation highlights a critical part of the panel's work — moving cases into an existing MDL — and serves as a reminder that common arguments against such transfers don't outweigh the benefits of coordinating discovery and utilizing lead counsel, says Alan Rothman at Sidley Austin.
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An Overview Of Key Financing Documents In Venture Capital
The Delaware Chancery Court’s recent Moelis decision highlights the importance of structuring corporate governance around investor demand, meaning early-stage companies seeking venture funding through sales of preferred stock should understand the legal documents needed to do so successfully, say Daniel Bell-Garcia and Tristan Kaisharis at Winstead.
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Series
Spray Painting Makes Me A Better Lawyer
My experiences as an abstract spray paint artist have made me a better litigator, demonstrating — in more ways than one — how fluidity and flexibility are necessary parts of a successful legal practice, says Erick Sandlin at Bracewell.
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Examining The Arbitration Clause Landscape Amid Risks
Amid a new wave of mass arbitrations, recent developments in the courts and from the American Arbitration Association suggest that companies should improve arbitration clause drafting to protect themselves against big-ticket settlements and avoid major potential liability, say attorneys at Benesch.
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How Activision Ruling Favors M&A Formalities Over Practice
The Delaware Chancery Court’s recent nod to a proposed class action, alleging shareholder notice violations in Activision Blizzard’s sale to Microsoft, puts practitioners on notice that customary merger and acquisition market practices do not offer protection from potential liability, say John Stigi and Eugene Choi at Sheppard Mullin.
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2nd Circ. Baby Food Ruling Disregards FDA's Expertise
The Second Circuit's recent decision in White v. Beech-Nut Nutrition, refusing to defer litigation over heavy metals in baby food until the U.S. Food and Drug Administration weighs in on the issue, provides no indication that courts will resolve the issue with greater efficiency than the FDA, say attorneys at Phillips Lytle.
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Where 9th Circ. Lowe's Ruling Leaves PAGA Jurisprudence
Leah Kennedy and Carolyn Wheeler at Katz Banks discuss the legal landscape and controlling precedent around the Private Attorneys General Act that led to the Ninth Circuit's Johnson v. Lowe's decision last month on individual PAGA wage claims, and explore the open questions that it leaves.
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Opinion
Proposed MDL Management Rule Needs Refining
Proponents of the recently proposed Federal Rule of Civil Procedure 16.1 believe it may enhance efficiency in multidistrict litigation proceedings if adopted, but there are serious concerns that it could actually hinder plaintiffs' access to justice through the courts — and there are fundamental flaws that deserve our attention, says Ashleigh Raso at Nigh Goldenberg.