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Class Action
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July 18, 2024
Ex-HP Worker Revamps 401(k) Forfeiture Funds Suit
A former HP employee retooled his lawsuit accusing the company of unlawfully using former workers' forfeited 401(k) funds to satisfy its own contributions, telling a California federal court the company was presented with a conflict of interest in deciding how to use the money.
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July 17, 2024
MTA Sued For Bus Service Cuts After Congestion Plan Nixed
New York City's Public Advocate hit the Metropolitan Transportation Authority with a proposed state court class action Wednesday aimed at reversing bus service cuts implemented after Gov. Kathy Hochul abruptly canceled plans for congestion pricing, slashing billions in anticipated revenue for the MTA.
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July 17, 2024
Defense Contractor CAE Faces Investor Suit Over Overruns
Defense contractor CAE was hit with a proposed shareholder class action alleging it misrepresented major incurred costs related to contracts the company entered into before the COVID-19 pandemic.
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July 17, 2024
AT&T Sued Over Breach Of 'Nearly All' Cell Users' Records
AT&T Inc. is facing separate class actions in Texas, Montana and New Jersey federal courts after the company disclosed Friday that hackers had downloaded phone call and text message records belonging to "nearly all" the telecom giant's wireless customers between May 2022 and early last year.
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July 17, 2024
Calif. Asks 9th Circ. To Lift Injunction On Kids' Privacy Law
California urged the Ninth Circuit on Wednesday to remove an injunction blocking a groundbreaking new law requiring social media platforms to bolster privacy protections for children, defending the protections and arguing that any unconstitutional provision should be severed following the U.S. Supreme Court's Moody v. NetChoice decision.
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July 17, 2024
Whirlpool Wants To Wash Away Service Plan Repair Claims
Whirlpool asked a Washington federal judge to send a proposed consumer class action down the drain, saying the aggrieved customer can't claim she was deceived about the details of an extended repair plan for a dishwasher when the full terms have always been easy to find online.
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July 17, 2024
Firm Can't Dodge Veteran's Class Claims Over Fees
A North Carolina federal judge has refused to throw out a proposed class action alleging that a consulting firm charged veterans millions in illegal fees, saying the suit needs more litigation before a dismissal is considered.
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July 17, 2024
Jimmy John's Biometric Info Suit 'Barely' Avoids Dismissal
An Illinois federal judge refused Wednesday to toss a putative class action alleging Jimmy John's LLC unlawfully records customers via technology embedded in drive-through intercoms in violation of the state's Biometric Information Privacy Act, but he remarked on the "thinness" of the allegations and said the complaint "barely" survives.
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July 17, 2024
Judge Warns HHS It's Not In 'Reasonable Compliance'
The Department of Health and Human Services appears not to be in "reasonable compliance" of an injunction ordering it to develop an avenue for Medicare beneficiaries to appeal their hospitalization status, a Connecticut federal judge said in a Tuesday notice.
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July 17, 2024
Stitch Fix Unravels Investor Suit Over 'Direct Buy' Biz Line
A California federal judge has tossed, for now, a shareholder lawsuit brought against Stitch Fix Inc. alleging the personal styling platform's former and current executives misled investors about the impact of a new business line, saying the suit fails to plead any actionable false statements or knowledge of wrongdoing by the defendants.
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July 17, 2024
Ill. Judge Signals Issue With Chicken Consumers' Expert
An Illinois federal judge signaled Wednesday that he was unlikely to allow chicken end users' economics expert to testify about damages they suffered in an alleged price-fixing conspiracy if the expert cannot focus his opinion on just the conduct allowed to be heard at trial.
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July 17, 2024
United, Union Pacific Must Face Genetic Privacy Suits
United Airlines and Union Pacific Railroad must face proposed class claims that they violated applicants' genetic information privacy rights by requiring them to disclose their family medical history during the hiring process, an Illinois federal judge said in separate orders Tuesday.
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July 17, 2024
Teladoc Hit With Another Investor Suit Over BetterHelp Woes
The telehealth company that owns online counseling platform BetterHelp has been slapped with a second investor suit accusing it of not being honest with investors about how profitable the mental health service actually was.
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July 17, 2024
Chancery Again Spikes Biopharm Board Pay Deal, $600K Fee
A Delaware vice chancellor on Wednesday rejected a second attempt by California-based Iovance Biotherapeutics Inc.'s board to settle a derivative suit challenging allegedly excessive compensation for non-employee directors, citing in part a seeming "end-run" around earlier proposed reforms.
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July 17, 2024
Drivers' Transmission Complaints Are 'Old News,' GM Says
Drivers waited too long to file a proposed class action accusing General Motors LLC of selling vehicles with faulty transmissions, the automaker said in a motion Tuesday arguing that many of the claims must be dismissed.
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July 17, 2024
CVS, Job Applicant Report Settlement In AI Lie Detector Suit
CVS Health Corp. has reached a tentative settlement in a proposed class action accusing the retail pharmacy chain of secretly using artificial intelligence that functions as a lie detector in its online job applications, according to a filing in Massachusetts federal court Wednesday.
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July 17, 2024
Settlement Talks Stall In NC Driver Suit Over Crash Data
A North Carolina woman and the city of Charlotte failed to reach a deal outside of court that would end her proposed class action accusing the city of violating privacy laws by making car accident reports public, according to a newly filed mediator's report.
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July 17, 2024
6th Circ. To Review 2 Standards In FirstEnergy's Cert. Fight
The Sixth Circuit indicated Wednesday that it would have to examine the applicability of two different class certification standards in a securities suit by FirstEnergy investors, as the company insisted there was no proof its statements influenced stock prices, and that purported omissions didn't factor into the mix.
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July 17, 2024
Aviation Co. Didn't Waive Arbitration In Wage Suit
An aviation company did not waive its rights to raise the arbitration flag in a suit claiming it failed to pay workers for missed rest and meal breaks because it pointed to their agreements several times, a California federal judge ruled.
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July 17, 2024
Rocket Mortgage Says Results Refute Investors' Fraud Claims
Rocket Mortgage is arguing that the company didn't mislead its shareholders when Rocket's former CEO claimed the company could grow its lending business in a rising interest rate environment because the firm's actual financial performance ended up proving that prediction true.
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July 17, 2024
Chevron Repeal Doesn't Impact Benefits Rule Fight, DOL Says
The U.S. Supreme Court's rollback of Chevron deference doesn't boost the likelihood of success for a trade group's claims that a U.S. Department of Labor regulation unlawfully expanded the pool of retirement advisers with obligations under federal benefits law, the agency told a Texas federal judge Wednesday.
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July 17, 2024
Ex-Genentech Worker Seeks Revival Of 401(k) Investment Suit
A former Genentech employee asked the Ninth Circuit to reopen his proposed class action alleging the biotechnology company kept unwise investment options in its 401(k) plan for years, arguing a trial court applied an erroneously high standard when it tossed the claim.
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July 17, 2024
Boehringer Wants Inhaler Antitrust Case Moved To Mass.
Boehringer Ingelheim Pharmaceuticals Inc. has urged a Connecticut federal court to transfer a proposed class action accusing it of blocking generic versions of two inhaler medications, saying a similar case was filed in Massachusetts several weeks earlier.
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July 17, 2024
SeaWorld Says Dad Ousted From Bias Case Contradicts Attys
Counsel for parents and children alleging that costumed performers at SeaWorld-owned theme park Sesame Place snubbed them booted a dad from the case as a way to buy time for more preparation, contradicting his lawyers' claims that he was forced from the case for making a deliberately incorrect deposition statement, the park's corporate owner alleged in a new court filing.
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July 17, 2024
Families Push To Revive Suits Over Harvard Body Part Thefts
Plaintiffs in a dozen lawsuits seeking to hold Harvard University liable after a former medical school morgue manager was charged with stealing and selling body parts have told a Massachusetts Appeals Court that a lower court judge got it wrong when he found that the school has legal immunity.
Expert Analysis
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Mass Arb. Rule Changes May Be A Hindrance For Consumers
The American Arbitration Association's recent changes to its mass arbitration supplementary rules and fee schedule, including a shift from filing fees to initiation and per-case fees, may reduce consumers' ability to counteract businesses' mandatory arbitration agreements, say Eduard Korsinsky and Alexander Krot at Levi & Korsinsky.
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Series
Coaching High School Wrestling Makes Me A Better Lawyer
Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.
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Opinion
New Rule 702 Helps Judges Keep Bad Science Out Of Court
A court's recent decision to exclude dubious testimony from the plaintiffs' experts in multidistrict litigation over acetaminophen highlights the responsibility that judges have to keep questionable scientific evidence out of courtrooms, particularly under recent amendments to Federal Rule of Evidence 702, says Sherman Joyce at the American Tort Reform Association.
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SG's Office Is Case Study To Help Close Legal Gender Gap
As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.
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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.