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Class Action
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September 26, 2024
Pa. Justices Say COVID Closures Aren't Covered Losses
Pennsylvania's Supreme Court shut the door Thursday on COVID-19 pandemic loss insurance coverage for businesses closed by government mandate, ruling that requisite physical loss or damage required tangible alteration to property, reversing a lower court decision that stated loss of use was sufficient.
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September 26, 2024
NY Lawmakers Beat ADA Suit Over Contentious Mask Ban
A New York federal judge threw out a challenge to Nassau County's ban on face masks worn by people trying to hide their identities in public, noting in an order Wednesday the plaintiffs lack standing since the ban doesn't apply to coverings worn to protect the wearer's health and safety.
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September 26, 2024
Nvidia Seeks 'Unworkable' Pleading Standard, Justices Told
Nvidia Corp. shareholders asked the U.S. Supreme Court on Wednesday to reject the company's "unworkable" reading of the pleading standards under the Private Securities Litigation Reform Act, arguing that they've presented plenty of evidence to move forward with claims that the company hid its $1 billion exposure to the volatile cryptocurrency market.
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September 26, 2024
Arthur J. Gallagher To Pay $21M To End Data Breach Suits
Insurance broker Arthur J. Gallagher & Co. has agreed to pay $21 million to resolve several lawsuits consolidated in Illinois alleging that it failed to protect more than 3 million customers from a data breach that compromised their personally identifiable information, with an Illinois federal judge giving her initial blessing to the deal Thursday.
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September 26, 2024
4th Circ. Hints Rocket Mortgage Class Cert. On Shaky Ground
The Fourth Circuit on Thursday seemed skeptical that all potential class members who accused Rocket Mortgage of inflating their home values could prove they were injured under the U.S. Supreme Court's heightened pleading standard in TransUnion, putting the lower court's certification order on rocky footing.
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September 26, 2024
Apple Protests Atty Fee Bid In $35M Deal With Scam Victims
Apple Inc. urged a California federal court to limit the fee awarded to plaintiffs' attorneys from a $35 million settlement over allegations it did not stop scammers from tricking victims into using iTunes gift cards for payments, saying the 33% fee sought is too high for the "fair but unexceptional recovery."
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September 26, 2024
Atty Sheehan Owes $144K Fees For 'Frivolous' Big Lots Suit
Prolific New York-based consumer advocate attorney Spencer Sheehan of Sheehan & Associates PC must cover the approximately $144,000 tab for attorney fees incurred amid the "frivolous" coffee labeling suit he brought against national retailer Big Lots Inc., a Florida federal judge has ordered.
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September 26, 2024
Quest Diagnostics Escapes 401(k) Mismanagement Suit
A New Jersey federal judge tossed a proposed class action alleging Quest Diagnostics Inc. mismanaged its $5 billion retirement plan by failing to chop under performing investment funds from its lineup, pointing to proof that the company acted to rein in questionable funds.
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September 25, 2024
Ohio Train Derailment Plaintiffs Win Final OK Of $600M Deal
An Ohio federal judge on Wednesday gave her final blessing to a $600 million settlement resolving claims brought by residents and others affected by the Norfolk Southern train derailment and toxic chemical spill in East Palestine, Ohio, last year.
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September 25, 2024
Developer's NorCal Spree Ends With Fraud Claims In Ch. 11
Northern California real estate company LeFever Mattson stockpiled more than $400 million in real estate, including several local landmarks in a small town north of San Francisco. The firm now seeks bankruptcy protection amid claims following an alleged scheme by one executive to pocket millions by selling bunk equity stakes to investors.
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September 25, 2024
Ex-Cognizant Worker Says Co. 'Mandate' Was To Hire Indians
A former employee at Cognizant Technology testified Wednesday as a witness for a class of former employees alleging the company discriminates against non-Indian workers, and said he believes the company did not just have a preference for hiring workers from India through the H-1B visa program, but that it was "a mandate."
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September 25, 2024
Bumble Investor Says Dating App Overhyped Premium Model
A Bumble Inc. investor has launched a proposed securities class action in Texas federal court accusing the dating app's parent company of misleading investors about its financial outlook and success of a "premium plus" subscription tier, and causing a dramatic decline in Bumble's common stock price.
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September 25, 2024
Rent The Runway, Gwyneth Paltrow Can't Escape Investor Suit
A New York federal judge on Wednesday trimmed a proposed class action suit against actress Gwyneth Paltrow and online clothing rental company Rent the Runway Inc., claiming the company failed to inform investors about major challenges it was facing in the run-up to its 2021 initial public offering.
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September 25, 2024
Target Can't Escape Claims Over Deceptive 'Clean' Label
A California federal judge on Wednesday said that Target Corp. still has to face class claims that its Target Clean range of beauty products actually contain chemicals that harm humans and the environment, saying the allegations are a bit "unique" and are not typical product liability claims.
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September 25, 2024
Pa. Justices Urged To Reconsider Tossing Undated Ballots
Ten Pennsylvania voting rights groups on Wednesday urged the state Supreme Court to use its special "King's Bench" power and immediately take up arguments over whether throwing out mail-in votes that are missing handwritten dates on their outer envelopes violates the Pennsylvania constitution.
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September 25, 2024
7th Circ. May Seek Ill. High Court Input In Amazon Wage Row
A Seventh Circuit judge appeared inclined Wednesday to let the Illinois Supreme Court weigh in on whether Illinois' minimum wage law incorporates a similar limitation created by an amendment to the Fair Labor Standards Act that clarifies preliminary activities like COVID-19 screenings aren't compensable.
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September 25, 2024
Ascension Must Face Additional Suit Over Vaccine Mandate
Ascension Health Alliance must face another proposed class action challenging its 2021 COVID-19 vaccination policy, an Indiana federal judge ruled Wednesday, holding that a group of workers who were suspended or fired after refusing the vaccine on religious grounds have a case against the Catholic healthcare system.
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September 25, 2024
City's Public Crash Reports Defy Privacy Law, NC Judge Says
The city of Charlotte violated federal privacy law by making car accident reports public such that law firms could use the disclosed data for marketing purposes, a North Carolina federal judge said in granting summary judgment and certification to a class of drivers.
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September 25, 2024
3rd Circ. Preserves Monsanto's Win In Cancer Warning Suit
The Third Circuit refused to reconsider its ruling that federal law preempts a more stringent Pennsylvania statute that mandates cancer warnings on chemicals, preserving Monsanto's win against a man who alleged the company's Roundup herbicide caused his illness.
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September 25, 2024
3rd Circ. Backs Tossing MetLife Suit Over Drug Rebates
The Third Circuit upheld MetLife's defeat of a lawsuit alleging it kept drug rebate profits for itself instead of lowering workers' health benefit plan costs, saying Wednesday the workers leading the suit hadn't shown they were harmed by missing out on speculative savings.
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September 25, 2024
Meta Wants 'License' To Cover Up Past Events, Justices Told
Meta Platforms Inc. shareholders say the U.S. Supreme Court should not be swayed by the social media company's attempt to shake off a proposed class action tied to the Cambridge Analytica data scandal, warning a high court ruling in favor of Facebook's parent company could give publicly traded companies "license to intentionally mislead investors."
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September 25, 2024
Mass. Police Officers Sue Over Cost Of Prep For Biased Exam
A group of Massachusetts police officers say they should be reimbursed for the costs of preparing for 2022 promotional exams that were administered in the midst of a trial where similar tests were ultimately found to be biased against Black and Hispanic officers.
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September 25, 2024
Boies Joins Authors' Meta IP Suit After Judge Blasts Lead Atty
Veteran litigator David Boies and a top member of his firm have joined the team heading a proposed class action against Meta Platforms Inc. for allegedly using copyrighted material to train its artificial intelligence product "Llama" — days after a California federal judge told the lead plaintiff's attorney, "You are not doing your job."
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September 25, 2024
Poppi's 'Gut Healthy' Sodas Are Harmful To The Gut, Suit Says
The maker of Poppi-brand sodas misleadingly advertises the products as "prebiotics for a healthy gut," despite the fact that it's full of sugar, which is harmful to overall health and heightens the risk of obesity, Type II diabetes and other issues, alleges a putative class action filed in California federal court.
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September 25, 2024
Wash. Hospital System Misclassifies Workers, Nurse Says
A Washington-based hospital operator misclassified its workers as independent contractors and underpaid them for their overtime as a result, a registered nurse said in a proposed class and collective action in Washington federal court.
Editor's Picks
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NFL Seeks To End Race-Based Concussion Tests After Outcry
The NFL said Wednesday it will push to end the use of "race-norming," which assumes Black former players start with lower baseline cognitive test scores, in assessing claims for payouts from the more than $1 billion concussion settlement amid allegations that it is discriminatory.
Expert Analysis
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Opinion
Law Firm Reactions To Campus Protests May Chill DEI Efforts
Law firm decisions to rescind or withhold job offers based on candidates' pro-Palestine activism could negatively affect diversity, equity and inclusion efforts in the legal profession, compounding existing hiring and retention challenges, say Noor Shater at Penn Carey Law School, and Peter Farah and Jalal Shehadeh at the Palestinian American Bar Association.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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And Now A Word From The Panel: The MDL Map
An intriguing yet unpredictable facet of multidistrict litigation practice is venue selection for new MDL proceedings, and the Judicial Panel on Multidistrict Litigation considers many factors when it assigns an MDL venue, says Alan Rothman at Sidley Austin.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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What 7th Circ. Collective Actions Ruling Means For Employers
With the Seventh Circuit’s recent Fair Labor Standards Act ruling in Vanegas v. Signet Builders, a majority of federal appellate courts that have addressed the jurisdictional scope of employee collective actions now follow the U.S. Supreme Court's limiting precedent, bolstering an employer defense in circuits that have yet to weigh in, say attorneys at Jackson Lewis.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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How Labeling And Testing May Help Reduce PFAS Litigation
As regulators take steps to reduce consumers’ exposure to per- and polyfluoroalkyl substances, also known as forever chemicals, companies can take a proactive approach to mitigating litigation risks not only by labeling their products transparently, but also by complying with testing and marketing standards, says Sarah La Pearl at Segal McCambridge.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Behind 3rd Circ. Ruling On College Athletes' FLSA Eligibility
The Third Circuit's decision that college athletes are not precluded from bringing a claim under the Fair Labor Standards Act raises key questions about the practical consequences of treating collegiate athletes as employees, such as Title IX equal pay claims and potential eligibility for all employment benefits, say attorneys at Debevoise.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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New Employer Liability Risks In Old Ill. Genetic Privacy Law
Illinois’ Genetic Information Privacy Act has been litigated very sparsely, but two recent federal court decisions — Taylor v. Union Pacific and McKnight v. United Airlines — holding that preemployment family medical history questions violated the 1998 law may encourage more lawsuits, say Peter Berk and Madison Shepley at Clark Hill.
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DOJ Must Overcome Hurdles In RealPage Antitrust Case
The U.S. Department of Justice's recent claims that RealPage's pricing software violates the Sherman Act mark a creative, and apparently contradictory, shift in the agency's approach to algorithmic price-fixing that will face several key challenges, say attorneys at Clifford Chance.
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Opinion
3rd. Circ. Got It Right On Cancer Warning Claims Preemption
The Third Circuit's recent, eminently sensible ruling in a failure-to-warn case against Roundup manufacturer Monsanto, holding that the Federal Insecticide, Fungicide and Rodenticide Act preempts state law claims, provides a road map that other courts should adopt, says Lawrence Ebner at the Atlantic Legal Foundation.
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Court Denial Of $335M UFC Deal Sets Bold Antitrust Precedent
A Nevada federal court’s recent refusal to accept a $335 million deal between Ultimate Fighting Championship and a group of former fighters to settle claims of anticompetitive conduct was a rare decision that risks the floodgates opening on established antitrust case law, says Mohit Pasricha at Lawrence Stephens.
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.