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Class Action
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January 31, 2025
Workers Score Class Cert. In Electric Parts Co. ESOP Suit
A Massachusetts federal judge has certified a group of employees in their class action against the owners of an electrical components company and managers of its employee stock ownership plan that claims they undervalued the plan's shares when the program was shut down.
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January 31, 2025
Del. Justices Uphold $33M-Plus Award In Software Co. Suit
Delaware's Supreme Court shot down on Friday a higher education software company founder's appeal from a $33 million-and-growing Court of Chancery award favoring shareholders who claimed they were kept in the dark when millions in stock purchase warrants were allowed to expire without notice.
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January 31, 2025
Amazon Must Give Up Docs In Consumer Class Antitrust Suits
A Washington federal judge said Friday he would order Amazon to hand over documents it's flagged as confidential to consumers bringing a trio of proposed antitrust class actions, saying he's "suspicious" of the e-commerce giant's privilege-logging practices.
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January 31, 2025
Ohio Customer Sues Eligo Over 'Exorbitant' Electricity Rates
An Ohio man hit retail energy supplier Eligo Energy LLC with a proposed class action alleging that the company fleeced him and tens of thousands of other customers through variable rates stemming from "unbridled price gouging and profiteering."
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January 31, 2025
6 Argument Sessions Benefits Attys Should Watch In Feb.
The en banc Eleventh Circuit will consider whether federal anti-discrimination law bars a Georgia county health plan from refusing to cover a worker's gender-confirmation surgery while the Second Circuit will hear from an NBA referee defending his win in a pension payout case.
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January 31, 2025
Silicon Valley County Sues Trump Over Birthright Ban 'Chaos'
Silicon Valley's home county of Santa Clara hit the Trump administration with a lawsuit in California federal court, joining other governments across the nation challenging President Donald Trump's executive order that seeks to strip immigrants' children of birthright citizenship and claiming the order is already creating "chaos" locally.
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January 31, 2025
Transcription Co. Hit With Wage Action Over Unpaid Prep Time
A Colorado worker for Vitac Corp., which provides transcription and closed captioning services using artificial intelligence, filed a proposed collective action in federal court on Friday alleging she and other employees weren't paid for preparation tasks necessary to perform their jobs.
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January 31, 2025
Royal Caribbean Escapes 401(k) Mismanagement Suit
A Florida federal judge tossed a suit Friday claiming Royal Caribbean allowed an investment manager to load its $500 million retirement plan with underperforming proprietary funds, ruling the plan participant behind the class action failed to put forward proof of objective imprudence.
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January 31, 2025
Supreme Court Eyes Its 'Next Frontier' In FCC Delegation Case
A case about broadband subsidies will give the U.S. Supreme Court the chance to revive a long-dormant separation of powers principle that attorneys say could upend regulations in numerous industries and trigger a power shift that would make last term's shake-up of federal agency authority pale in comparison. And a majority of the court already appears to support its resurrection.
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January 31, 2025
Judge Blocks Symetra Life Policyholders' $32.5M Deal
A Washington federal court rejected a $32.5 million settlement bid brought by a proposed class of Symetra life insurance policyholders who accused the life insurer of using undisclosed nonmortality factors to overcharge monthly rates, noting the proposed settlement notice leaves information on the class counsel's cost reimbursement blank.
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January 31, 2025
Ex-Paramount Worker Says NY WARN Covers Remote Jobs
A former Paramount employee accusing the studio of violating New York's WARN Act by laying off over 300 New York City-based workers without 90 days' notice urged a federal court to preserve his suit, saying Friday that the law covers him even though he worked remotely from California.
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January 31, 2025
Off The Bench: NIL Deal Skeptics, Padres Feud, Rozier Probe
In this week's Off The Bench, critics get their knives out for the NCAA's $2.78 billion class action settlement with college athletes over name, image and likeness rights, the family feud over ownership of the San Diego Padres intensifies, and a federal gambling probe ensnares Miami Heat guard Terry Rozier.
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January 31, 2025
Target Warehouse Workers Win Class Cert. In NJ Wage Suit
A New Jersey federal judge has granted class certification to Target warehouse workers at three Garden State distribution centers alleging they were required to engage in unpaid work-related activities before and after their shifts, ruling each class member's case hinges on whether their walking time constitutes hours worked.
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January 31, 2025
Investors Say Walgreens Misled Over Prescription Misuse
A putative class of Walgreens shareholders has sued the retail giant in Illinois federal court, claiming it made false statements about its regulatory compliance and that stock prices fell in the wake of the federal government's allegations that Walgreens knowingly filled millions of invalid prescriptions for opioids and other controlled substances.
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January 31, 2025
Chancery Pushes Air Transport SPAC Suit Toward Trial
Stockholders who sued for damages after the take-public merger of an air taxi and medical transport company on Friday beat a dismissal motion filed by the company's principals in Delaware's Court of Chancery, sending the case to discovery and toward trial.
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January 31, 2025
Judge Extends Migrant Kids Detention Settlement
A California federal judge agreed to extend for 18 months a settlement governing the federal government's custody of detained immigrant children, saying there is evidence that Customs and Border Protection has been violating the agreement.
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January 31, 2025
RFK Jr. Says He'll Give Stake In Merck Vaccine Case To Son
Robert F. Kennedy Jr., President Donald Trump's pick for the nation's top healthcare position, said Friday that he would hand his financial stake in personal injury litigation against vaccine maker Merck over to an adult son.
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January 31, 2025
Seasoned Patterson Belknap Trial Team Joins Linklaters In NY
Linklaters LLP announced Friday it has brought aboard a high-profile team of litigation partners from Patterson Belknap Webb & Tyler LLP, including one who is the current president of the New York City Bar Association and a lawyer former President Joe Biden had nominated to the Third Circuit.
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January 31, 2025
State Street Must Face Suit Over Paper Co.'s ESOP Valuation
State Street Bank can't escape a suit claiming it allowed executives at a defunct paper company to sell overpriced shares to an employee stock ownership plan, a Wisconsin federal judge ruled, rejecting the firm's assertion that its stock valuation didn't cause any harm.
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January 31, 2025
Manufacturer Can't Arbitrate Wage Suit, Calif. Panel Affirms
A California panel upheld an order that refused to send to arbitration an employee's Private Attorneys General Act lawsuit against a power transformer manufacturer, saying the company failed to show sufficient evidence it wasn't technically the worker's employer.
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January 30, 2025
Grocery Chain Investor Sues Over Systems Upgrade Claims
Discount grocery operator Grocery Outlet Holding Corp. and two of its executives face a proposed investor class action alleging they failed to offer realistic forecasts for the company's internal systems upgrade process, hurting investors after they were forced to acknowledge systems transition issues had hurt profits.
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January 30, 2025
Calif. AG Asks 9th Circ. To Block Meta's MDL Discovery Win
The California attorney general urged the Ninth Circuit on Wednesday to block orders requiring third-party state agencies to respond to Meta Platforms' discovery demands in multidistrict litigation over social media's alleged harms, arguing in a mandamus petition the "clearly erroneous" ruling "runs roughshod" over the state's constitutional divisions of power.
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January 30, 2025
2nd Circ. Sees No Skadden Conflict In Pharma Merger Work
The Second Circuit on Thursday declined to revive an investor suit alleging a merger between Sumitomo Pharma America Inc. and Myovant Sciences Ltd. was undervalued because the lawyers from Skadden Arps Slate Meagher & Flom LLP who helped negotiate the deal had undisclosed conflicts of interest.
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January 30, 2025
PNC Units Face Investor Suit Over 'Cash Sweep' Program
PNC Financial and its investment unit are the latest to face a proposed class action alleging their cash sweep program funneled customer funds into low interest-bearing accounts, hurting investors who should have seen their money earn a reasonable market interest rate.
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January 30, 2025
Topgolf Underpays Its Servers, Class Action Says
Sports entertainment chain Top Golf USA Inc. and two affiliates were hit with a proposed class action in Georgia federal court over allegations they improperly claimed a tip credit that lowered employees' wages to below the statutory minimum.
Expert Analysis
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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.
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Finding Coverage For Online Retail Privacy Class Actions
Following recent court rulings interpreting state invasion of privacy and electronic surveillance statutes triggering a surge in the filing of privacy class actions against online retailers, companies should examine their various insurance policies, including E&O and D&O, for defense coverage of these claims, says Alison Gaske at Gilbert LLP.
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Employers Should Not Neglect Paid Military Leave Compliance
An August decision from the Ninth Circuit and the settlement of a long-running class action, both examining paid leave requirements under the Uniformed Services Employment and Reemployment Rights Act, are part of a nationwide trend that should prompt employers to review their military leave policies to avoid potential litigation and reputational damage, says Bradford Kelley at Littler.