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Class Action
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August 19, 2024
Frost & Sullivan Shouldn't Beat Data Breach Suit, Judge Says
A magistrate judge on Monday recommended a Texas federal court trim but not toss a putative class action accusing consulting firm Frost & Sullivan Inc. of failing to protect its employees and clients from a data breach last year, rejecting the firm's contention that a former employee lacked standing to sue.
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August 19, 2024
Ariz. Sheriff Can't Ax Racial Profiling Injunction, 9th Circ. Says
The Ninth Circuit on Monday kept in place a permanent injunction in a class action alleging the Maricopa County Sheriff's Office in Arizona racially profiled Latinos for traffic stops under the guise of immigration enforcement, saying the district court was within its powers to assign an independent monitor.
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August 19, 2024
Arden Trust Co. Sued In Del. Over Bikini Atoll Fund Depletion
Representatives of Pacific Islanders displaced by early nuclear testing on Bikini Atoll sued Arden Trust Co. in Delaware's Court of Chancery on Monday, accusing the company of mismanaging and quickly dissipating tens of millions of dollars in congressionally authorized aid funds after years of careful management.
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August 19, 2024
Justices Urged To Refuse Rent-To-Own Co. Fee Suit
Two consumers suing a rent-to-own furniture store over fees that are allegedly barred under California law urged the U.S. Supreme Court on Monday not to review a Ninth Circuit decision nixing the company's arbitration bid, arguing that the case is too fact-specific to warrant the court's attention.
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August 19, 2024
BankRI Pans 'Overspending' Customer's Account Fees Suit
One of Rhode Island's largest banks asked a Providence federal judge on Monday to throw out a proposed class action over its consumer fee practices, saying the customer behind the suit is attempting to blame it for fallout from her own "unfortunate practice of overspending."
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August 19, 2024
Adidas Boots Suit Over Rapper Ye's Allegedly Racist Remarks
An Oregon federal judge has dismissed, for now, a suit against Adidas AG, accusing the company of failing to disclose the potential damage caused by its partnership with musician Ye, formerly known as Kanye West, following allegations that the artist made antisemitic comments, saying none of the corporate statements challenged as misleading in the suit are actionable.
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August 19, 2024
MOVEit MDL Judge's Call For Order Met With Atty Squabbles
A federal judge's effort to streamline multidistrict litigation over a 2022 data breach involving Progress Software's MOVEit file transfer tool instead led to a lengthy and contentious joint filing in which the parties accused one another of gamesmanship.
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August 19, 2024
USAF, Airmen Debate Mootness Of Vax Mandate Challenge
In a pair of dueling briefs, both the U.S. Air Force and a cadre of its airmen are sparring over whether the military's revocation of its COVID-19 vaccine mandate for service members spells the end for the airmen's suit challenging the mandate on religious freedom grounds.
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August 19, 2024
4th Circ. Cuts Liberty Loose In Medicare Reimbursement Row
A North Carolina widow can't revive a proposed class action accusing Liberty Mutual of failing to reimburse Medicare for her deceased husband's medical costs, the Fourth Circuit said Monday, finding she wasn't injured and therefore lacked standing to sue.
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August 19, 2024
2nd Circ. Keeps Macquarie Suit Alive After High Court Remand
The Second Circuit on Monday once again greenlighted an investor lawsuit accusing Macquarie Infrastructure Corp. of hiding the expected impact of a high-sulfur fuel ban on its oil storage business, saying that the U.S. Supreme Court's recent decision in Macquarie's favor had little impact on the circuit court's earlier ruling that the case should move forward.
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August 19, 2024
Colo. Justices To Weigh On Minimum Wage Claims' Timing
The Colorado Supreme Court said Monday it will clear up whether the Colorado Wage Claim Act's shorter statute of limitations applies to claims brought under the state's Minimum Wage Act.
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August 19, 2024
Aramark Gets Green Light For Solo Turkey Antitrust Case
An Illinois federal judge has refused to dismiss Aramark's individual antitrust lawsuit alleging that turkey producers exchanged competitively sensitive information, rejecting arguments that the claims were untimely because the statute of limitations was tolled by the filing of a similar class action in 2019.
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August 19, 2024
3M Wants Conn. Firefighters' PFAS Case Paused For MDL
3M has asked a Connecticut federal court to stay a proposed class action by firefighters who wore technical gear containing so-called forever chemicals until there's a decision on whether to transfer the suit to a multidistrict litigation in South Carolina.
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August 19, 2024
Retirees Ask 2nd Circ. To Reboot IBM Pension Fight
A proposed class of IBM retirees alleging the business lowballed their pension payments by using outdated mortality data to calculate benefits urged the Second Circuit to revive its suit, arguing a New York federal court wrongly determined its claims were brought too late.
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August 19, 2024
9th Circ. Sends Northrop Pension Disclosure Row To Trial
The Ninth Circuit revived a class claim Monday from a group of Northrop Grumman retirees who said they were kept in the dark about how much they would get in pension benefits, ruling their allegations that the defense contractor shirked its disclosure duties were filed on time.
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August 19, 2024
Workers For Auto Parts Co. Want Wage Suit Certified
A group of workers for an automotive parts company pressed a North Carolina federal court to allow their wage shortfall claims to proceed as a collective, saying their case satisfies all the requirements for certification.
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August 19, 2024
Philly To Pay $25M For Breaking Prison Conditions Settlement
A federal judge has ordered Philadelphia to set aside $25 million to ramp up recruitment and retention efforts for the city's Department of Prisons, just over a month after the court found the city in contempt of a settlement in a lawsuit over prison conditions.
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August 19, 2024
NCAA Defends $2B NIL Deal Amid Growing Opposition
The NCAA is pushing back against critics of its more than $2 billion proposed name, image and likeness settlement with college athletes, arguing the deal is the result of "intense and carefully structured negotiations" by competent class counsel, and detractors have baseless objections.
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August 19, 2024
Recipe Changing For NYC Restaurant Wage Suits
After years of million-dollar settlements with their waiters and front-of-house staff, most of New York’s large restaurants have equipped themselves with attorneys and compliance pros to head off potential lawsuits, while mom-and-pop eateries often struggle to keep up with evolving wage and tipping rules.
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August 19, 2024
DTE Energy Looks To Sink Workers' Login Pay Suit
Energy company DTE Energy told a Michigan federal court that customer service employees who sued it for unpaid off-the-clock work received more than double the minimum wage and that federal labor law preempts their breach of contract claims, arguing their suit can't stand.
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August 16, 2024
11th Circ. Partially Reverses Rental Car Co.'s Win In Fee Suit
The Eleventh Circuit has revived a class of consumers' breach of contract claims against a Florida rental car company over allegedly deceptive damaged vehicle costs but affirmed a lower court's finding that the lead plaintiffs did not suffer any actual damages.
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August 16, 2024
49ers Can't Beat Data Breach Suit, But Damages In Question
A California federal judge has rejected the San Francisco 49ers bid to toss a proposed class action claiming that the NFL team didn't protect 20,000 current and former employees' personal information from hackers, but he said a filing issue could put California Consumer Privacy Act statutory damages out of reach.
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August 16, 2024
TikTok Nonusers Fight Uphill For 100M-Member Privacy Class
A California federal judge on Friday tentatively declined to certify a class of over 100 million nonusers of TikTok over allegations it illegally scraped their personal data from third-party websites, noting the "extraordinary" class size and questioning whether the plaintiffs have shown their injuries are typical of the proposed class.
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August 16, 2024
CDK's $100M Deal Puts Auto Dealer Settlements Up To $130M
Car dealerships sought preliminary approval Friday for a $100 million class action settlement resolving claims that auto dealer data management software giant CDK Global anticompetitively locked out rival data companies, adding to the $29.5 million agreement reached previously in the sprawling litigation with CDK peer Reynolds and Reynolds.
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August 16, 2024
Intuit Decision Shows 401(k) Forfeiture Suits Gaining Traction
A California federal judge's recent decision refusing to toss a federal benefits lawsuit alleging Intuit misspent 401(k) plan forfeitures shows how a novel pleading under the Employee Retirement Income Security Act has gained a foothold in some district courts, attorneys say. Here's a rundown with attorneys on the Intuit ruling and what to expect as more large employers are being targeted with proposed class action litigation challenging 401(k) forfeiture spending.
Expert Analysis
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SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early
After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.
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Del. Dispatch: 27.6% Stockholder Not A Controller
The Delaware Court of Chancery's recent decision in Sciannella v. AstraZeneca — which found that the pharma giant, a 26.7% stockholder of Viela Bio Inc., was not a controller of Viela, despite having management control — shows that overall context matters when challenging transactions on breach of fiduciary duty grounds, say attorneys at Fried Frank.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.
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2 Rulings Serve As Conversion Fee Warnings For Banks
A comparison of the different outcomes in Wright v. Capital One in a Virginia federal court, and in Guerrero v. Bank of America in a North Carolina federal court, highlights how banks must be careful in describing how currency exchange fees and charges are determined in their customer agreements, say attorneys at Weiner Brodsky.
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Dueling Calif. Rulings Offer Insight On 401(k) Forfeiture Suits
Two recent decisions from California federal courts regarding novel Employee Retirement Income Security Act claims around 401(k) forfeitures provide early tea leaves for companies that may face similar litigation, offering reasons for both optimism and concern over the future direction of the law, say Ashley Johnson and Jennafer Tryck at Gibson Dunn.
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How NJ Worker Status Ruling Benefits Real Estate Industry
In Kennedy v. Weichert, the New Jersey Supreme Court recently said a real estate agent’s employment contract would supersede the usual ABC test analysis to determine his classification as an independent contractor, preserving operational flexibility for the industry — and potentially others, say Jason Finkelstein and Dalila Haden at Cole Schotz.
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Loss Causation Ruling Departs From Usual Securities Cases
A California federal court recently dismissed Ramos v. Comerica, finding that the allegations failed to establish loss causation, but the reasoning is in tension with the pleading-stage approaches generally followed by both courts and economists in securities fraud litigation, say Jesse Jensen and Aasiya Glover at Bernstein Litowitz.
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PAGA Reforms Encourage Proactive Employer Compliance
Recently enacted reforms to California's Private Attorneys General Act should make litigation under the law less burdensome for employers, presenting a valuable opportunity to streamline compliance and reduce litigation risks by proactively addressing many of the issues that have historically attracted PAGA claims, say attorneys at Mintz.
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A Simple Proposal For Improving E-Discovery In MDLs
Given the importance of e-discovery in multidistrict litigation, courts, parties and counsel shouldn't have to reinvent the wheel in each newly consolidated case — and a simple process for sharing e-discovery lessons and knowledge across MDLs could benefit everyone involved, particularly clients, say Benjamin Barnett and Shauna Itri at Seeger Weiss.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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50 Years Later, ERISA Remains A Work In Progress
A look at the 50 years since the Employee Retirement Income Security Act’s passage shows that while the law safeguards benefits through vesting rules, fiduciary responsibilities and anti-discrimination provisions, the act falls short in three key areas, says Carol Buckmann at Cohen & Buckmann.