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May 13, 2024
Catching Up With Delaware's Chancery Court
Sunken treasure, recycled plastics, questionable denim and dog food all made appearances in Chancery Court dockets last week, along with developments in cases involving Qualcomm, Tesla Inc., and Truth Social. In case you missed it, here's the latest from Delaware's Chancery Court.
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May 10, 2024
Bakery To Face Ex-Worker's Finger Scan Suit In State Court
An Illinois judge has remanded most of a suit accusing Gold Standard Baking Inc. of unlawfully collecting biometric data for timekeeping purposes, finding that claims related to fingerprint scans collected while she was a temporary worker could stand while captures made after she became a company employee were preempted by federal labor-contract law.
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May 10, 2024
McDonald's Workers Want Class Cert. In Sex Harassment Suit
A pair of McDonald's workers claiming that the company has allowed sexual harassment to run rampant in its stores asked an Illinois federal judge to certify classes of thousands of women and girls who've worked at Florida locations, arguing that class treatment is the best way to evaluate whether McDonald's has a pattern of tolerating harassment.
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May 10, 2024
Oil Giants Say Tribal Climate Change Row Must Stay Federal
Several giant oil companies are fighting a bid by two Native American tribes to remand their consolidated case to state court, telling a Washington federal district court that the claims brought by tribes have always been governed by federal law.
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May 10, 2024
Farm Gets 2nd Go At H-2A Extension After Worker's Aneurysm
A U.S. Department of Labor appeals board has revived a farm's request to extend two foreign workers' employment to finish up work that was delayed after a co-worker suffered a brain aneurysm, saying a certifying officer shouldn't have flat-out denied the extension request.
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May 10, 2024
2nd Circ. Says Subway Texts Don't Trigger Autodial Law
A divided Second Circuit panel upheld the dismissal of a suit claiming that the sandwich chain Subway illegally spammed consumers' phones with automated texts, finding that a Connecticut federal judge was right in ruling that the marketing campaign didn't use an autodialer as defined by federal law.
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May 10, 2024
Insurers Don't Owe Chiquita Coverage In Terrorism Settlement
An Ohio state appeals court ruled Friday that Chiquita Brands International Inc. is not owed coverage by a group of insurers for a settlement with families of six Americans killed by a terrorist group Chiquita had paid for protection, saying any errors the trial court made were harmless because it came to the correct conclusion.
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May 10, 2024
Dollar Tree Parent Sued Over Alleged Lead In Cinnamon
Dollar Tree Inc.'s parent company and a New York family-owned food business were hit Thursday with a proposed class action in New York federal court alleging that the chain sold cinnamon that was contaminated with lead, following U.S. Food and Drug Administration recalls of lead-tainted cinnamon.
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May 10, 2024
Fox Theatre Let Sex Harassment Go Unchecked, Suit Says
A former worker at Atlanta's Fox Theatre filed a lawsuit this week accusing the historic venue of allowing sexual harassment to run rampant among its ranks, refusing to discipline employees who made lewd comments — and worse — while retaliating against those who complained.
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May 10, 2024
Logan Paul Energy Drinks Have Excess Caffeine, Suit Says
A proposed class of energy drink buyers is suing YouTube celebrity Logan Paul's Prime Hydration LLC, alleging the drinks contain significantly more than the 200 milligrams of caffeine they advertise.
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May 10, 2024
Pepperidge Farm Drivers Not Employees, 3rd Circ. Affirms
Three delivery drivers for Pepperidge Farm are independent contractors, not employees, and thus cannot sue the company for state wage and hour law violations, a Third Circuit panel ruled Friday, saying the drivers' daily responsibilities make it clear they are self-employed.
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May 10, 2024
SEC Targets Fatburger's Parent Co. In $27M Loan Scheme
The restaurant company that owns Fatburger and Fazoli's made illegal loans to its director and former chief executive, who spent $27 million in company money on himself while skirting taxes and leaving the company struggling, the Securities and Exchange Commission told a California federal court Friday.
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May 10, 2024
NJ Attys Settle Malpractice Suit Over Wawa Injury Claim
Attorneys at a New Jersey law firm have settled a malpractice lawsuit from a former client who claimed they caused him to lose his chance to sue convenience store chain Wawa over an on-the-job injury, according to a letter submitted Thursday to state court.
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May 10, 2024
PF Chang's Allowed To Keep 6K-Worker Wage Deal Concealed
P.F. Chang's can file settlement papers with dollar amounts shielded from public view as the restaurant chain looks to resolve a 5-year-old suit accusing it of cheating more than 6,000 tipped servers out of wages, a Pennsylvania federal judge ruled.
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May 09, 2024
Ex-Minor Leaguer Settles With SEC Over Del Taco Deal Tip Off
A former minor league baseball player has agreed to pay more than $58,000 to resolve U.S. Securities and Exchange Commission insider trading allegations involving burger chain Jack in the Box's $575 million acquisition of its fellow chain Del Taco.
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May 09, 2024
Chicken Farmers Win Cert. Of 24K Class In No-Poach Suit
An Oklahoma federal judge has certified a class of more than 24,000 broiler chicken farmers accusing Pilgrim's Pride of conspiring with others to suppress grower compensation through no-poach agreements, noting the plaintiffs provided direct and circumstantial evidence to show the existence of an antitrust conspiracy affecting all farmers.
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May 09, 2024
Award Increased to $13.4M In Pabst Asbestos Death Suit
A Wisconsin appeals court has increased a mesothelioma wrongful death award against Pabst Brewing Co. to $13.4 million, rejecting the beer company's argument that the jury shouldn't have found fault at all, while finding that the trial court wrongly applied the state's punitive damages statute.
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May 09, 2024
EPA Defends Factory Farm Water Pollution Regs At 9th Circ.
The U.S. Environmental Protection Agency on Wednesday urged the Ninth Circuit to toss green groups' lawsuit seeking to revive their petition for new, stronger Clean Water Act regulations for large animal feeding facilities.
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May 09, 2024
4th Circ. Mulls Scope Of Farm Bill In Virginia Hemp Fight
A Fourth Circuit panel on Thursday pushed attorneys for the state of Virginia and a group of hemp companies and customers to define precisely how much power states have to restrict the production and sale of intoxicating products derived from federally legal hemp.
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May 08, 2024
Kroger Must Keep Fighting Metal-Tainted Baby Food Claims
An Ohio federal judge Wednesday refused to throw out a proposed class action accusing the Kroger Co. and its subsidiaries of selling baby food tainted with toxic metals, ruling that the mothers who sued have plausibly alleged that they wouldn't have purchased the product had they known the truth.
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May 08, 2024
Vietnam's Labor Issues Mar Bid For Market Economy Status
Representatives from U.S. industry, organized labor, and human rights advocacy urged the U.S. Department of Commerce to reject Vietnam's bid for market economy status Wednesday, denouncing its track record on labor rights.
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May 08, 2024
In Final Memo, Blumenauer Eyes Path Forward For Cannabis
Rep. Earl Blumenauer, D-Ore., a longtime champion of cannabis reform in Congress who plans to retire this year, is calling marijuana reform a "winning issue" for policymakers and outlined numerous actions both legislators and federal agencies can take to move the issue forward.
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May 08, 2024
Blue Bottle Coffee Loses Suit Over 'Blue Brew' TM
A California federal judge has handed a loss to Blue Bottle Coffee LLC in its trademark infringement case against a company selling coffee gear and accessories using the phrase "Blue Brew," saying there wasn't any evidence that customers would be confused.
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May 08, 2024
CBD Retailer Wants To Avoid Privacy Suit
CBD retailer Charlotte's Web Inc. has urged a California federal judge to toss a woman's suit accusing it of secretly recording conversations of those who visit its website, saying the lead plaintiff didn't even use the allegedly wiretapped chat functions and therefore can't have been harmed.
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May 08, 2024
Farmworkers Union Says DOL's 2022 Rules Keep Wages Low
A farmworkers union in Washington state is challenging rules the U.S. Department of Labor introduced in 2022 that the union said are depressing farmworkers' wages.
Expert Analysis
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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How Fla. Bankruptcy Ruling May Affect Equity Owners
A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.
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M&A Ruling Buoys Loss Calculation Method, R&W Insurance
The recent Southern District of New York decision in Taylor Precision Products v. Larimer affirms the use of EBITDA as a basis to quantify loss, highlighting the potential shortcomings of a traditional seller indemnity compared to representation and warranty insurance, say Mark Schwartz at Lockton, and William O’Neil and Gretchen Scavo at Winston & Strawn.
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How Consumer Complaints Can Help Companies
As seen most recently in Zoom's terms of service controversy, consumer complaints — despite initially seeming troubling for companies — can offer businesses the opportunity to identify, tackle and resolve budding challenges before those challenges escalate into larger issues, say Meghan Stoppel and Hannah Cornett at Cozen O'Connor.
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Opinion
Life Sciences Regulators Must Write Cloud-Specific Guidance
As cloud services continue to revolutionize the life sciences industry's ability to conduct regulated activities, the U.S. Food and Drug Administration and other regulators should update their data management policies to clearly support and encourage use of cloud technology, say Nate Brown and Marlee Gallant at Akin.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Analyzing The Legal Ripples Of The EPA's PFAS Regulation
As the U.S. Environmental Protection Agency makes major moves on its pledge to regulate per- and polyfluoroalkyl substances, the developing body of PFAS regulation will lead to an increase in litigation, and personal injury and product liability claims, say attorneys at Gordon & Rees.
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The Growing Need For FLSA Private Settlement Rule Clarity
A Pennsylvania district court's recent ruling in Walker v. Marathon Petroleum echoes an interesting and growing trend of jurists questioning the need for — and legality of — judicial approval of private Fair Labor Standards Act settlements, which provides more options for parties to efficiently resolve their claims, says Rachael Coe at Moore & Van Allen.
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Series
ESG Around The World: The UK
Following Brexit, the U.K. has adopted a different approach to regulating environmental, social and governance factors from the European Union — an approach that focuses on climate disclosures by U.K.-regulated entities, while steering clear of the more ambitious objectives pursued by the EU, say attorneys at Dechert.
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Boeing Opinion Strikes Blow Against Overpayment Theory
The Fifth Circuit's decision in Earl v. Boeing Co. casts doubt on consumers' standing to bring claims of overpayment for products later revealed to have defects — and suggests that it's more likely that those products would have been removed from the market, driving up the price of alternatives, say attorneys at Bush Seyferth.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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Compliance Primer: Foreign Investment In US Real Property
The rise in foreign investment in U.S. real property, especially agricultural land, has led to increased national security concerns, meaning it’s important to understand reporting requirements under the Agricultural Foreign Investment Disclosure Act and state-level statutes, and to monitor legislative proposals that could create more stringent reporting and review processes, say attorneys at K&L Gates.