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Class Action
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October 29, 2024
'In-And-Out' Trades Don't Doom Lead Plaintiff Bid, Judge Says
A Manhattan federal judge appointed a Pomerantz LLP client as lead plaintiff in a shareholder suit against Nano Nuclear Energy Inc., rejecting arguments that the investor's handful of so-called in-and-out trades in the company's stock should preclude her from representing the proposed class in securities fraud allegations against the company.
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October 29, 2024
NY Judge Tosses $14B Decongestant MDL
A New York federal judge threw out a streamlined complaint in a multidistrict litigation accusing companies such as Target and Bayer of making and selling ineffective over-the-counter decongestants, finding Tuesday the state claims are expressly preempted, and the proposed class lacks standing on a federal racketeering claim as indirect purchasers.
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October 29, 2024
Wells Fargo Fights To Ax Suit Over Identify Fraud Accounts
Wells Fargo urged a California federal judge Tuesday to toss a proposed class action accusing the bank of violating the Fair Credit Report Act by accessing consumers' credit reports after fraudsters applied to open accounts with stolen information, saying Wells Fargo followed industry standards and the alleged damages are "conclusory."
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October 29, 2024
Y-mAbs Therapeutics Investors Get Final OK For $19.7M Deal
A New York federal judge has granted final approval to a $19.7 million settlement between Y-mAbs Therapeutics and investors who claim the company misrepresented the likelihood that the U.S. Food and Drug Administration would approve the company's signature pediatric nerve cancer treatment, giving class counsel a $6.5 million cut of the deal.
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October 29, 2024
Retired Fed. Circ. Judge Backs Invisalign In Monopoly Cases
Retired Federal Circuit Judge Paul R. Michel warned the Ninth Circuit on Tuesday that reversing a lower court's decision to toss a pair of class actions accusing Invisalign of monopolizing the clear braces and teeth scanners market by illegally refusing to deal with a rival would increase patent owners' legal uncertainties.
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October 29, 2024
Yieldstreet Investors' $9M Deal Over Risky Offerings OK'd
A New York federal judge has given his preliminary blessing to a settlement worth up to $9 million resolving a class action by Yieldstreet investors who accused the online platform of offering "riskier-than-junk-bond investments" to the public that caused the plaintiffs to lose millions of dollars in defaulted loans.
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October 29, 2024
Canadian Co. Owes $7.5M Default Judgment In Toxic Mud Suit
A Georgia federal judge has awarded a nationwide class of customers more than $7.5 million in damages in litigation alleging Canadian company BlackOxygen sold them mud-based nutritional supplements containing harmful levels of toxic heavy metals after the company failed to respond to their claims.
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October 29, 2024
Rumble Pushes To Join Google Ad Tech MDL
Video-sharing site Rumble has told the U.S. Judicial Panel on Multidistrict Litigation that its case accusing Google of monopolizing key digital advertising technology should be included in the consolidated litigation pending against the tech giant in New York.
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October 29, 2024
Lye Buyers Can't Save Rejected $38.5M Antitrust Settlement
A New York federal judge refused Tuesday to change her mind about rejecting a $38.5 million class settlement between direct chemical buyers and three manufacturers accused of colluding to inflate the price of lye.
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October 29, 2024
Developer Can't Revive COVID-19 App Suit Against Apple
A California federal judge declined to revive an antitrust suit against Apple for not distributing a COVID-19 tracking app on its app store, saying a Ninth Circuit denial of the app maker's appeal after the case was dismissed in district court "is the law" of the case.
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October 29, 2024
Defunct Pot Co. CEO Says 'Grifter' Is Trying To Stop Settlement
The founder of a defunct marijuana greenhouse claims the $1.5 million settlement it made with a class of investors has been stymied in unrelated legal action filed by a "sophisticated grifter" looking for personal gain, urging a Colorado federal judge to push aside the bankruptcy action.
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October 29, 2024
Chancery Shoots Down $9.5M Straight Path Atty Fee Claim
Stockholder attorneys who waged a multiyear Delaware Court of Chancery battle over IDT Corp. founder Howard Jonas' campaign to scuttle damage claims against him arising from federal sanctions against Straight Path Communications on Tuesday lost a Chancery fight for a $9.5 million attorney fee.
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October 29, 2024
Accellion Can't Nix Data Breach Suit Over Outdated Software
A California federal judge refused to end a proposed data breach class action accusing Accellion of negligently failing to protect against cyberattacks on its file-sharing software, ruling that a special relationship exists between Accellion and its customers, such that it owed a duty of care to them.
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October 29, 2024
McDonald's Catches New Suits Over E. Coli Outbreak
McDonald's Corp. is facing two new lawsuits over an outbreak of E. coli linked to its Quarter Pounder hamburgers, including a proposed class action filed Tuesday in Illinois federal court accusing the fast-food giant of misrepresenting to customers that its hamburgers were safe to consume.
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October 29, 2024
6th Circ. Judge Rejects Flint Comparison In Benton Harbor
A Sixth Circuit judge asked during oral arguments Tuesday if Michigan's government could have done more to monitor the response to lead contamination in a city's water supply, as another judge seemed to doubt that the allegations against the state rose to the level of constitutional violations.
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October 29, 2024
Biopharma Co. Escapes Investor Suit Over Drug Approval Lies
Biopharmaceutical company Spero Therapeutics Inc. has escaped a proposed investor class action accusing it of concealing warning signs that it would not secure regulatory approval of one of its drugs, with the court ruling that Spero's interactions with the U.S. Food and Drug Administration do not indicate Spero should have known its application would be rejected.
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October 29, 2024
Investors Float $21M Deal To End Life Sciences SPAC Suit
Shareholders in special purpose acquisition company CM Life Sciences Holdings have reached a tentative $21 million class settlement in Delaware's Court of Chancery after suing over alleged missing or misleading disclosures in the lead-up to the take-public merger of clinical data and genomics company Sema4 Holdings in July 2021.
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October 29, 2024
Argent Strikes Symbria ESOP Suit Settlement Deal
A class of Symbria Inc. workers alleging mismanagement of their employee stock ownership plan told an Illinois federal court they had reached a settlement with ESOP trustee Argent Trust Co. to end their federal benefits lawsuit.
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October 29, 2024
2nd Circ. Revives Investor Suit Against Chinese News App
The Second Circuit has revived a securities class action alleging that Chinese news aggregation app Qutoutiao hid changes in its advertising policies that allegedly spurred fraudulent advertisements on the app and eventually caused its share price to decline, finding that the lower court erred in determining that the suit's claims sound in fraud.
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October 29, 2024
ICE Accused Of Withholding $300M In Nixed Immigrant Bonds
A New York resident hit the U.S. Immigration and Customs Enforcement with a proposed class action in New York federal court Tuesday, accusing the agency of systemically failing to return more than $300 million in bonds paid to secure the release of immigrants whose detention proceedings were later dismissed.
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October 29, 2024
2 Firms Tapped To Lead Five Below Investor Suit
Berger Montague PC and Bernstein Litowitz Berger & Grossmann LLP will represent a proposed class of investors in a suit alleging that teen-focused retail chain Five Below overstated its growth prospects, then saw trading prices crater when it announced that its sales expectations fell short.
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October 29, 2024
Alibaba's $433.5M Investor Suit Deal Gets Initial OK
A New York federal judge granted preliminary approval to a $433.5 million deal settling a suit between Alibaba Group and investors alleging the company made misstatements about its exclusivity practices and the planned $34 billion initial public offering of a fintech affiliate.
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October 29, 2024
1st Circ. Scraps Securities Fraud Case Against 3D Printing Co.
The First Circuit has affirmed a ruling throwing out a securities fraud lawsuit against 3D printing business Desktop Metal, finding the investor behind the action abandoned one of her claims and failed to adequately allege the other.
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October 28, 2024
Hershey's 'Bubble Yum' Contains PFAS, Consumer Alleges
The existence of "forever chemicals" in The Hershey Co.'s Bubble Yum brand bubblegum undermines the multinational candy company's commitment to transparency about the ingredients in its products, a new proposed false advertising class action filed in California state court alleges.
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October 28, 2024
7th Circ. Signals Its Rulings Govern Citizens BIPA Policy Spat
The Seventh Circuit seemed uninterested Monday in shifting focus from its own precedent to either newly certified questions or a state appellate decision to determine whether a district court correctly cleared Citizens Insurance Company of America of covering a biometric privacy suit.
Expert Analysis
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Birkin Bag Case Carries Competition Lessons For Retailers
A recently proposed antitrust class action alleging that Hermès violated federal and California law when selling its iconic Birkin and Kelly handbags highlights some issues that other brands and retailers should consider, particularly given a prevailing landscape that seems to prioritize antitrust scrutiny, say attorneys at Holland & Knight.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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Circuit Split Brews Over Who's A Securities Seller Under Act
A Securities Act section that creates private liability for the sale of an unregistered security is rapidly becoming a favored statute for plaintiffs to wield against participants in both the digital asset and traditional securities markets, but the circuit courts have diverged on who may be held liable for these violations, say Jeffrey L. Steinfeld and Daniel Aronsohn at Winston & Strawn.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Exploring A New Era Of IP Law Amid The Rise Of Generative AI
Attorneys at Hogan Lovells explore the effects of generative artificial intelligence in three areas of intellectual property, recent updates and emerging trends, and its significance on the IP landscape now and moving forward.
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Class Actions At The Circuit Courts: April Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses three notable circuit court decisions on topics from the Class Action Fairness Act to consumer fraud — and provides key takeaways for counsel on issues including CAFA’s local controversy exception and Article III standing to seek injunctive relief.
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'Beauty From Within' Trend Poses Regulatory Risks For Cos.
Companies capitalizing on the current trend in oral supplements touting cosmetic benefits must note that a product claim that would be acceptable for an externally applied cosmetic may draw much stronger scrutiny from the U.S. Food and Drug Administration when applied to a supplement, say Natalie Rainer and Katherine Staba at K&L Gates.
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9th Circ. Arbitration Ruling Could Have Int'l Implications
In Patrick v. Running Warehouse, the Ninth Circuit's recent matter-of-fact invocation of an unusual California rule in a domestic arbitration context raises choice of law questions, and could make California law a strategic option for some international arbitration parties, says Jerry Roth at FedArb.
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Chancery's Carvana Suit Toss Shows Special Committee Value
The Delaware Chancery Court’s recent dismissal of a stockholder complaint against Carvana illustrates how special litigation committees can be a powerful tool for boards to regain control after litigation alleging a breach of fiduciary duty, say attorneys at Morgan Lewis.
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Series
Being An Equestrian Makes Me A Better Lawyer
Beyond getting experience thinking on my feet and tackling stressful situations, the skills I've gained from horseback riding have considerable overlap with the skills used to practice law, particularly in terms of team building, continuing education, and making an effort to reset and recharge, says Kerry Irwin at Moore & Van Allen.
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7th Circ. Mootness Fee Case May Curb Frivolous Merger Suits
On April 15, the Seventh Circuit in Jorge Alcarez v. Akorn Inc. mapped out a framework for courts to consider mootness fees paid to individual shareholders after the voluntary dismissal of a challenge to a public company merger, which could encourage objections to mootness fees and reduce the number of frivolous merger challenges filed, say attorneys at Skadden.
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4 Ways To Refresh Your Law Firm's Marketing Strategy
With many BigLaw firms relying on an increasingly obsolete marketing approach that prioritizes stiff professionalism over authentic connection, adopting a few key communications strategies to better connect with today's clients and prospects can make all the difference, say Eric Pacifici and Kevin Henderson at SMB Law.
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9th Circ. Ruling Puts Teeth Into Mental Health Parity Claims
In its recent finding that UnitedHealth applied an excessively strict review process for substance use disorder treatment claims, the Ninth Circuit provided guidance on how to plead a Mental Health Parity and Addiction Equity Act violation and took a step toward achieving mental health parity in healthcare, says Mark DeBofsky at DeBofsky Law.
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Using Rule 23(f) To Review Class Certification Orders
Since plaintiffs on average are prevailing in certifying a class more often than not, the best-positioned class action defendants are those prepared to pursue relief under Rule 23(f) well before the district court issues its certification decision, say attorneys at K&L Gates.
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The Practical Effects Of Justices' Arbitration Exemption Ruling
The U.S. Supreme Court's recent decision in Bissonnette v. LePage Bakeries, that a transportation worker need not work in the transportation industry to be exempt from the Federal Arbitration Act, may negatively affect employers' efforts to mitigate class action risk via arbitration agreement enforcement, say Charles Schoenwetter and Eric Olson at Bowman and Brooke.