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Class Action
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July 18, 2024
Court Denies Bid To Halt NYC Crackdown On Illicit Pot Shops
A New York federal judge on Thursday rejected a bid from 27 retailers to halt city officials' enforcement efforts aimed at closing stores that sell cannabis without a license, saying the shops were unlikely to prevail on claims their due process rights were violated.
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July 18, 2024
Sunday Ticket Customers Slam NFL's Bid To Upend $4.7B Win
DirecTV Sunday Ticket subscribers opposed the NFL's effort to vacate a $4.7 billion antitrust verdict handed down by California federal jurors last month, arguing on Wednesday the league cannot second-guess the jury's findings and that the plaintiffs actually received far less than what they sought.
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July 18, 2024
American Airlines Hit With Class Action Over Sales Strategy
An investor launched a proposed class action against American Airlines over the company's botched sales and distribution strategy, saying that American touted its strategy as driving revenue while hiding the fact that the strategy was "driving customers away" in a Texas federal court on Thursday.
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July 18, 2024
Vermont Suit Accuses PBMs Of Price-Fixing
Vermont's attorney general filed suit against pharmacy benefit managers Express Scripts and CVS Wednesday, accusing the companies of abusing their market power to drive up prescription costs for consumers and squeezing out price competition from small pharmacies.
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July 18, 2024
6th Circ. Questions If Kellogg 401(k) Claims Can Be Arbitrated
A Sixth Circuit panel on Thursday suggested the terms of Kellogg Co.'s retirement plan may bar a former accountant from bringing claims the plan was mismanaged, as the company tries to enforce an arbitration clause that arguably prevents planwide relief.
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July 18, 2024
Au Pair Co. Can't Arbitrate Wage Claims, 1st Circ. Told
A group of former au pairs who say they were underpaid for their work has urged the First Circuit to affirm that Cultural Care can't force them into arbitration in Switzerland, calling the agency's position a delay tactic with no merit.
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July 18, 2024
Urgent Care Nurses Snag Collective Cert. In Wage Suit
Nurses claiming an urgent care chain owes them wages can move forward as a collective in their suit, an Illinois federal judge ruled, saying the worker who lodged the suit showed she was similarly situated as her colleagues.
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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.
Expert Analysis
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Binance Ruling Spotlights Muddled Post-Morrison Landscape
The Second Circuit's recent decision in Williams v. Binance highlights the judiciary's struggle to apply the U.S. Supreme Court's Morrison v. National Australia Bank ruling to digital assets, and illustrates how Morrison's territorial limits on the federal securities laws have become convoluted, say Andrew Rhys Davies and Jessica Lewis at WilmerHale.
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Del. Match.com Ruling Maintains Precedent In Time Of Change
Despite speculation that the Delaware Supreme Court could drive away corporations if it lowered the bar for business judgment review in its Match.com stockholder ruling, the court broke its recent run of controversial precedent-busting decisions by upholding, and arguably strengthening, minority stockholder protections against controller coercion, say Renee Zaytsev and Marc Ayala at Boies Schiller.
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The Future Of BIPA Insurance Litigation After Visual Pak
A recent Illinois appellate court decision, National Fire Insurance v. Visual Pak, may have altered the future of insurance litigation under the state's Biometric Information Privacy Act by diametrically opposing a prominent Seventh Circuit ruling that found insurance coverage for violations of the act, say attorneys at Jenner & Block.
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Macquarie Ruling Raises The Bar For Securities Fraud Claims
The U.S. Supreme Court's decision last week in Macquarie Infrastructure v. Moab Partners — holding that a U.S. Securities and Exchange Commission rule does not forbid omissions in company disclosures unless they render other statements false — is a major setback for plaintiffs pursuing securities fraud claims against corporations, say attorneys at Skadden.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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Del. Lessons For Director-Nominees On Sharing With Activists
The Delaware Chancery Court's recent decision in Icahn Partners v. deSouza finding that a director wasn't permitted to share certain privileged information with the activist stockholders that nominated him shows the need for companies to consider imposing appropriate confidentiality requirements on directors, say attorneys at Sullivan & Cromwell.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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Oracle Ruling Underscores Trend Of Mootness Fee Denials
The Delaware Chancery Court’s recent refusal to make tech giant Oracle shoulder $5 million of plaintiff shareholders' attorney fees illustrates a trend of courts raising the standard for granting the mootness fee awards once ubiquitous in post-merger derivative disputes, say attorneys at Troutman Pepper.
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Cos. Should Mind Website Tech As CIPA Suits Keep Piling Up
Businesses should continue evaluating their use of website technologies and other data-gathering software and review the disclosures in their privacy policies, amid an increase so far in 2024 of class actions alleging violations of the California Invasion of Privacy Act's pen register and trap-and-trace provisions, say attorneys at Sheppard Mullin.
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Questions Persist After Ruling Skirts $925M TCPA Award Issue
After an Oregon federal court's recent Wakefield v. ViSalus ruling that the doctrine of constitutional avoidance precluded it from deciding whether a $925 million Telephone Consumer Protection Act damages award was constitutionally sound, further guidance is needed on when statutory damages violate due process, says Michael Klotz at O'Melveny.
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Benzene Contamination Concerns: Drugmakers' Next Steps
After a citizen petition to the U.S. Food and Drug Administration and a flurry of class actions over benzene contamination in benzoyl peroxide acne products, affected manufacturers should consider a thoughtful approach that includes assembling internal data and possibly contacting the FDA for product-specific discussions, say attorneys at Morgan Lewis.
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Opinion
States Should Follow Federal Lead On Expert Evidence Rules
The recently amended Federal Rule of Evidence 702 will help ensure expert testimony in federal courts reflects adequate data and reliable methods properly applied to a given case, and state courts — home to the overwhelming majority of U.S. litigation — should adopt similar changes, says retired attorney Michael Harrington.
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Opinion
Post-Moelis Del. Corp. Law Proposal Would Hurt Stockholders
The proposed Delaware General Corporation Law amendment in response to the Court of Chancery's recent opinion in West Palm Beach Firefighters' Pension Fund v. Moelis would upend the foundational principle of corporate law holding that directors govern corporations in the interest of stockholders — and the potential harm would be substantial, say attorneys at Block & Leviton.
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Back Labels In False Ad Cases Get Some Clarity In 9th Circ.
Courts in the Ninth Circuit have recently delivered a series of wins to advertisers, making clear that any ambiguity on the front of a product's package can be resolved by reference to the back label — which guarantees defendants a powerful tool to combat deceptive labeling claims, say attorneys at Patterson Belknap.
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Opinion
Federal MDL Rule Benefits From Public Comments
The new Federal Rule of Civil Procedure concerning multidistrict litigation that was approved this week by the Advisory Committee on Civil Rules incorporates ideas from public comments that will aid both plaintiffs and defense attorneys — and if ultimately adopted, the rule should promote efficient, merits-driven MDL case management, say Robert Johnston and Gary Feldon at Hollingsworth.