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Class Action
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August 15, 2024
Uber Gets Most Claims Tossed In Driver Assault MDL, For Now
A California federal judge on Thursday threw out the majority of claims from California and Texas Uber riders in multidistrict litigation that aims to hold the ride-hailing company liable for their sexual assaults; however, the judge gave the plaintiffs the opportunity to amend those claims.
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August 15, 2024
Tom Girardi Has Dementia, USC Neurologist Tells Calif. Jury
A University of Southern California neurology professor testified Thursday in Tom Girardi's California federal criminal trial that she diagnosed him with mild-to-moderate dementia months after his law firm collapsed, although the lawyer insisted at the time that his memory was fine and that he was still busily working at his firm.
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August 15, 2024
Honda Slams 'Grossly Excessive' Atty Fee Bid In Defect Deal
Honda urged a California federal judge on Thursday to reject a $10.8 million fee request in a consumer settlement that's paid out just $540,000 to Acura car owners with a purported hands-free calling battery-draining defect, blasting the amount as "grossly excessive" under the Ninth Circuit's recent Lowery decision.
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August 15, 2024
Investing Website Isn't An Investment Adviser, Court Says
A New York federal judge ruled Thursday that an exclusion to the Investment Advisers Act applies to the investing analysis website Seeking Alpha, dismissing a proposed class action from subscribers who accused the site of serving as an unregistered investment adviser and unlawfully collecting subscription fees.
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August 15, 2024
Nvidia Illegally Scraped Videos To Train AI, YouTuber Says
Artifical intelligence technology titan Nvidia Corp. has been collecting millions of YouTube videos without creators' permission and using them to train its deep-learning AI software, according to a proposed class action filed Wednesday in California federal court.
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August 15, 2024
Judge Rejects GE's Bid To Pull Plug On Contamination Suit
A Louisiana federal judge on Wednesday refused to let General Electric escape a lawsuit alleging it is liable for widespread environmental contamination caused by a now-closed pressure valve manufacturing facility that GE used to own.
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August 15, 2024
Yearbook Site Has 'Tortured View' Of Suit Waiver, Judge Says
A Washington federal judge criticized the company behind Classmates.com on Thursday for arguing someone could've waived their right to sue the company for using their photo without ever visiting the website, calling it a "tortured view" of the Terms of Services language.
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August 15, 2024
Monsanto Gets 3rd Circ. Win In Roundup Failure-To-Warn Case
The Third Circuit ruled Thursday that a Pennsylvania state law failure-to-warn claim in a suit alleging the weed killer Roundup caused a Keystone State man's cancer is preempted by federal law, creating a circuit split on central issues in multidistrict litigation over the Monsanto product.
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August 15, 2024
Zymergen Investors Can't Beat Suit Over Pre-IPO Statements
Three of the largest investors of biotechnology company Zymergen cannot escape a suit accusing them of misleading shareholders ahead of the company's initial public offering by approving misstatements about the company's commercial product pipeline.
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August 15, 2024
Northeast Grocery Chain Escapes 401(k) Mismanagement Suit
The parent company of grocery chain Price Chopper defeated a proposed class action alleging it allowed its 401(k) plan to be bogged down with underperforming funds and excessive costs, with a New York federal judge ruling Thursday that workers hadn't provided enough detail to sustain their claims.
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August 15, 2024
Intel Hit With Del. Derivative Suit After Stock, Revenue Drop
An Intel Corp. stockholder has sued the chip giant for derivative damages tied to the company's more-than 27% stock drop and $7 billion production unit loss in 2023 following separation of the company's chip production and design operations, despite prior upbeat forecasts.
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August 15, 2024
Shift4 Beats Suit Over 'Questionable' Accounting Practices
A Pennsylvania federal judge has dismissed a proposed class action accusing payment processing company Shift4 Payments Inc. of engaging in questionable accounting practices to keep its stock price afloat, ruling that the plaintiffs had not proven that the company knowingly lied, among other things.
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August 15, 2024
Discover Can't Arbitrate Fraud Risk Claims, But Amex Can
A New York federal judge has refused to allow Discover Financial Services to arbitrate claims that it and other credit card networks conspired to dump fraud risk on retailers, but granted a similar motion from American Express.
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August 15, 2024
Calif. Justices Find Hospital System Exempt From Labor Code
A hospital system a California county created is a public entity that is not required to follow the California Labor Code's meal and rest break requirements, the state's high court ruled Thursday, nixing an appellate panel's ruling against the entity.
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August 15, 2024
Judge Gives Plaintiffs' Attys $1M In Fees For Derivative Row
A Massachusetts federal judge sliced 60% off a request for attorney fees in a shareholder derivative lawsuit Wednesday, awarding plaintiffs' counsel $1 million for their work on the case, which led to a noncash settlement.
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August 15, 2024
Chemical Co. Inks $1.1M Deal To End 401(k) Row
A group of former Univar Solutions USA Inc. employees asked an Illinois federal judge Thursday to greenlight a $1.1 million deal to shutter their suit claiming the chemical company saddled their $978 million retirement plan with excessive administrative fees.
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August 15, 2024
Caterpillar Must Face Illinois Ex-Workers' Genetic Privacy Suit
Caterpillar Inc. can't escape a proposed class action alleging it violated an Illinois genetic information privacy statute by asking job applicants about their family medical history, a federal judge ruled, rejecting the machinery manufacturer's assertion that it didn't intend to collect the data.
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August 15, 2024
Sheriff's Office Workers Want Wage Payment Suit Kept Alive
Detention center employees urged a North Carolina federal court to reject a sheriff's office's bid to toss their wage and hour class action, saying its argument that it pays workers in line with federal regulations for employees whose hours change weekly doesn't apply to them.
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August 15, 2024
Kerrygold, Customers Agree To End 'Pure' False Ad Suit
A consumer who sued Irish butter brand Kerrygold has agreed to end her proposed class action over claims that it falsely advertised its product as "pure" even though it might contain "forever chemicals" by way of its packaging.
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August 15, 2024
Samsung Knew About Range Knobs Fire Risk, Suit Says
Samsung Electronics was hit with a proposed consumer class action Wednesday in New York federal court in the wake of the company's announced recall program over a potential fire risk related to more than a million electric ranges with front-mounted knobs that can be turned on accidentally.
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August 15, 2024
Ga. Judge Rejects Sysco, Warehouse Workers' OT Settlement
A Georgia federal judge shot down a deal to end a former Sysco employee's proposed collective action claiming the company failed to pay warehouse workers' overtime, saying the settlement must reflect the "active participation" of the other workers involved in the suit.
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August 15, 2024
Levi & Korsinsky To Lead Hertz EV Cost Shareholder Suit
Levi & Korsinsky LLP will represent a proposed class of investors in car rental giant Hertz Global Holdings Inc. in litigation alleging it exaggerated demand for electric cars, then took a $200 million earnings hit as it worked to offload those cars.
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August 15, 2024
Delta Facing Second Customer Suit Over IT Outage Response
A Florida resident hit Delta Air Lines with a second proposed class action claiming the company failed to properly refund and reimburse passengers when their flights were canceled or significantly delayed in the wake of the global CrowdStrike computer outage.
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August 15, 2024
DraftKings Looks To Wipe Out Suit Over Voided NBA Bets
DraftKings fired back at an aggrieved bettor suing the online sportsbook over voided NBA bets that allegedly cost him a $150,000 payday, telling an Indiana federal judge that its rules plainly allow for the cancelation of wagers offered with obviously incorrect odds.
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August 14, 2024
LinkedIn Can't Shake Privacy Suit Over DMV Data Collection
A California federal judge has refused to ax a proposed class action accusing LinkedIn Corp. of unlawfully obtaining users' personal disability information from the state's Department of Motor Vehicles website, rejecting the company's arguments that it was merely acting as a "recording service" for the DMV and that the dispute couldn't proceed without the agency being added as a defendant.
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.