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Class Action
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August 26, 2024
Catching Up With Delaware's Chancery Court
Last week in Delaware's Court of Chancery, Boeing accused shareholders of using a new pressure tactic, Cantor Fitzgerald struck a $12 million deal, and a vice chancellor dealt with zombie companies. New cases involved displaced Pacific Islanders and an insurance customer acquisition platform. In case you missed it, here's a roundup of news from the Chancery Court.
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August 26, 2024
New Jersey Cases Attorneys Are Watching In 2024
Jersey City is fighting the Garden State's cannabis legalization law and argues it conflicts with federal gun control legislation, while the bankrupt former chief financial officer of McElroy Deutsch Mulvaney & Carpenter LLP is facing civil claims he defrauded the firm and paid himself millions in unauthorized salary.
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August 23, 2024
Girardi Says High Court Holding Should Gut His Fraud Case
Tom Girardi has urged a California federal judge to toss the majority of the wire fraud charges he is facing ahead of closing arguments in his trial, saying a 1960 U.S. Supreme Court case demonstrates he was charged for nothing more than receiving legally required wire transfers.
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August 23, 2024
Afghan Supporters Say US Arbitrarily Delayed Parole Requests
The U.S. government has been arbitrarily delaying action on requests of Afghans seeking humanitarian parole while expeditiously processing parole applications of those living in Ukraine, Cuba and Haiti for free and approving their travel authorizations, according to plaintiffs seeking to file an amended proposed class action in Massachusetts federal court.
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August 23, 2024
Prime Healthcare's 401(k) Was In Good Hands, Judge Rules
Prime Healthcare Services Inc. beat a proposed class action in a bench trial over claims it allowed its employee 401(k) plan to be saddled with poor-performing investments and high costs, after a California federal judge ruled that the plan was prudently managed.
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August 23, 2024
McKinsey Opioid Suits Sent Back To NY, Illinois State Courts
A California federal judge has remanded, to their respective state courts, cases brought by dozens of New York municipalities and two Illinois counties against McKinsey & Co. over its alleged role in the opioid crisis, saying the consulting firm's "tortured interpretations of state law" don't give the Golden State jurisdiction.
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August 23, 2024
PayPal Ducks Antitrust Suit Over Merchant Rules
A California federal judge on Friday granted PayPal's motion to dismiss a proposed class action alleging the financial tech giant illegally boosts online retail prices by enforcing restrictive merchant agreements, saying the plaintiffs have failed to adequately plead that their injury "flows" from the alleged misconduct.
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August 23, 2024
Apple Sued Over Warranty Fees Charged To Old Devices
Apple was hit with a putative class action in California federal court Friday accusing it of failing to cancel AppleCare+ subscription contracts for customers who trade in or return their devices and continuously charging them monthly fees for devices they no longer own.
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August 23, 2024
The Biggest Product Liability Cases Of 2024: A Midyear Report
A U.S. Supreme Court ruling that formally ended judges' decades-long deference to federal agencies' understanding of the law, as well as multibillion-dollar settlements over so-called forever chemicals, made Law360's list of top product liability developments so far this year.
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August 23, 2024
Ill. Cheer Parents Can Join $82.5M Antitrust Varsity Brand Deal
A Tennessee federal judge on Friday allowed cheer parents from Illinois to participate in an $82.5 million antitrust class action settlement reached with academic apparel giant Varsity Brands, finding they could receive settlement benefits without delaying the process or increasing administrative costs.
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August 23, 2024
Drugmakers' 'Subjective Beliefs' Obscured In Antitrust Case
A Pennsylvania federal judge has denied a request from direct purchasers of pharmaceuticals to compel the leaders of Abbott Laboratories and other companies to express "subjective beliefs" about sham patent litigation they allegedly engaged in, dismissing the purchasers' fears that the companies would change their position on certain issues at the last minute during trial.
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August 23, 2024
NY Lawmakers Hit With ADA Suit Over Contentious Mask Ban
A Long Island, New York, county that recently made it illegal for certain individuals to wear face masks in public has been hit with a lawsuit by a legal advocacy group alleging the ban discriminates against people with disabilities.
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August 23, 2024
Cantor, Lutnick OK $12M Deal To End View Inc. Suit In Del.
Cantor Fitzgerald LP and its billionaire Chair and CEO Howard Lutnick on Thursday agreed to a $12 million settlement to resolve stockholder challenges to a special purpose acquisition company transaction that took window company View Inc. public, with a Delaware Court of Chancery hearing set for Dec. 6.
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August 23, 2024
Longshoremen's Union Defeats Fair Representation Claims
An International Longshoremen's Association local has defeated three members' accusations that it breached its duty of fair representation by funneling work opportunities to union leaders' family and friends, with a Georgia federal judge ruling the allegations were based on speculation.
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August 23, 2024
Everest Re Unit Escapes Data Breach Class Action
A New Jersey federal judge has tossed a proposed class action claiming that an Everest Re unit failed to protect customers' personal information during a data breach, ruling that the suit fails to show that the company had a duty to protect their information.
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August 23, 2024
Class Wants $2.1M In Fees In Home Depot Hose Fight
A class suing Home Depot Corp. and Reliance Worldwide Corp. asked a Georgia federal judge to award them $2.1 million in attorney fees, more than $160,000 in expenses and $35,000 for class representative service awards in connection with a settlement that was preliminarily approved in March.
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August 23, 2024
LegalShield Used AI To Record Clients, Suit Says
Online legal service company LegalShield has been letting a call center software company use artificial intelligence to intercept, analyze and record its customer calls and chats, according to a lawsuit recently pulled into California federal court.
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August 23, 2024
SPAC Investors Ask Full 9th Circ. To Rethink Lucid Merger
Investors have urged the full Ninth Circuit to rethink a panel's refusal to revive their proposed class action alleging that Lucid duped them into buying stock in a special purpose acquisition company ahead of the electric vehicle maker's $11.75 billion merger, arguing that the panel's holding misconstrues U.S. Supreme Court precedent, among other issues.
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August 23, 2024
Client Says Negligence Led To NJ Firm's Ransomware Attack
A client of The Wacks Law Group LLC hit the New Jersey firm with a proposed class action claiming that its negligence in properly securing its data storage led to the theft of hundreds of clients' personal information in a March cyberattack.
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August 23, 2024
Off The Bench: Sunday Ticket Twist, Dartmouth-NLRB Clash
The NFL comes out of the Sunday Ticket trial with a clean slate, Dartmouth is hit with an unfair labor practice charge by its basketball players, and U.S. Tennis doesn't get a do-over on its handling of a sexual assault case. Law360 is here to catch you up on the sports and betting stories that had our readers talking.
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August 23, 2024
1st Circ. Says Longshoremen Local Still On Hook For $1.7M
The International Longshoreman's Association pension fund is entitled to collect nearly $1.7 million in unpaid contributions and attorney fees from a union local in San Juan, Puerto Rico, following a merger with another local that had been in arrears, the First Circuit has ruled.
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August 23, 2024
Union 401(k) Plan Trustees Strike $5M Deal To End ERISA Suit
Two elevator workers asked a Pennsylvania federal court to sign off on a $5 million settlement that would wrap up a proposed class action alleging their union's retirement plan was loaded with excessive administrative fees and shoddy investment options.
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August 23, 2024
Firms Seek $20M Fee After $58M Deal In Shire Antitrust Suit
A group of nine firms led by Hagens Berman Sobol Shapiro LLP asked a Massachusetts federal judge to sign off on $20 million in fees and expenses after securing a $58 million settlement with drugmaker Shire PLC in a yearslong antitrust class action.
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August 22, 2024
Authors Can't Use Discord Chats In Meta AI Copyright Suit
A California federal judge Thursday granted Meta Platforms Inc.'s request for an order shielding a former part-time researcher's communications on Discord from discovery requests in authors' proposed class copyright action over Meta's artificial intelligence product, holding that the communications pertain to legal advice.
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August 22, 2024
PBMs Can't Yet Duck Municipalities' Claims In Opioid MDL
The Ohio federal judge overseeing multidistrict opioid litigation on Thursday refused, for now, to throw out claims against pharmacy benefit managers Express Scripts Inc. and OptumRX Inc., finding that the PBMs' arguments were brought too early and a more robust record is needed.
Expert Analysis
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Takeaways From Tossed Deal In Visa, Mastercard Class Action
Given the rejection of a proposed deal in the long-running merchant antitrust class action against Visa and Mastercard in New York federal court, sweetening the proposed settlement pot likely will not be an option, leaving few possible outcomes including splitting the class and allowing opt-outs, say attorneys at Davis Wright.
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Weight-Loss Drugs May Spur Next Major Mass Tort
With lawsuits concerning Ozempic and similar weight-loss drugs potentially becoming the next major mass tort in the U.S., companies should consider key defense strategies ranging from alternate dispute resolution to enhanced drug safety, say Dino Haloulos and Jarif Khan at Foley & Mansfield.
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And Now A Word From The Panel: Rare MDL Moments
Following a recent trend of rare moments in baseball, there are a few rarities this year in multidistrict litigation panel practice, including an unusually high rate of petition grants, and, in one session, a two-week delay from hearing session day to the first decision, says Alan Rothman at Sidley.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.
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Half-Truths Vs. Omissions: Slicing Justices' Macquarie Cake
The U.S. Supreme Court's recent ruling in Macquarie v. Moab provides a road map for determining whether corporate reports that omit information should be considered misleading — and the court baked it into a dessert analogy that is key to understanding the guidelines, say Daniel Levy and Pavithra Kumar at Advanced Analytical Consulting Group.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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2 Lessons From Calif. Overtime Wages Ruling
A California federal court's recent decision finding that Home Depot did not purposely dodge overtime laws sheds light on what constitutes a good faith dispute, and the extent to which employers have discretion to define employees' workdays, says Michael Luchsinger at Segal McCambridge.
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American Airlines ESG Ruling Could Alter ERISA Landscape
The Spence v. American Airlines ESG trial, speeding toward a conclusion in a Texas federal court, could foretell a dramatic expansion in ERISA liability, with plan sponsors vulnerable to claims that they didn't foresee short-term dips in stock prices, say attorneys at Mayer Brown.
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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.