Mealey's California Section 17200
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March 13, 2024
Judge Certifies Settlement Class Over Alleged Fraud, Won’t Approve $195,000 Deal
SANTA ANA, Calif. — Citing reasons including “serious concerns about the scope of recovery,” a California federal judge granted preliminary certification of a settlement class in a suit over alleged fraud involving captive reinsurance but denied preliminary approval of the proposed $195,000 settlement.
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March 13, 2024
Consumers Say Acne Products Marketed As ‘Safe’ Contained Carcinogens
LOS ANGELES — Two consumers filed a putative class action accusing Johnson & Johnson Consumer Inc. (J&J) of deceptively labeling its “Neutrogena” and “Clean & Clear” and other skincare products as “safe” in violation of California’s unfair competition law (UCL), alleging that the products contain high amounts of the carcinogen benzene.
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March 12, 2024
Judge Sends Suits Accusing Tesla Of Misrepresenting Battery Range To Arbitration
OAKLAND, Calif. — A California federal judge granted Tesla Inc.’s motion to compel individual arbitration of the plaintiffs’ claims in two related putative class action lawsuits against it for allegedly misrepresenting the driving range of its vehicles in violation of California’s unfair competition law (UCL) and other laws.
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March 11, 2024
Judge Amends Consent Decree Order In Case Over Alleged Counterfeit Policies
LOUISVILLE, Ky. — In a March 8 amended ruling entering a consent decree in a sprawling suit over allegations of fraud, trademark counterfeiting and trademark infringement involving captive reinsurance programs, a Kentucky federal judge said he “inadvertently omitted the names of two parties.”
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March 11, 2024
Tesla’s $6.08M Solar Roof Settlement Approved By Federal Judge In California
SAN FRANCISCO — A $6.08 million settlement to be paid by Tesla Inc. to end a class complaint by solar roof customers who allege that the costs increased after they signed contracts was granted final approval by a federal judge in California on March 8.
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March 07, 2024
Disney Passholder Settlement In Blocked Dates Case Granted Final Approval
SANTA ANA, Calif. — A federal judge in California granted final approval of a $9.5 million class settlement in a case by passholders who brought claims under California law, including the state’s unfair competition law (UCL), and accused Walt Disney Parks and Resorts U.S. Inc. of misleading them regarding blocked-out dates.
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March 07, 2024
Judge Partly Dismisses UCL Suit Challenging ‘Natural’ Claims On Frozen Chicken
SANTA ANA, Calif. — A California federal judge dismissed all claims in a putative class action against a food products manufacturer for labeling its frozen chicken products as “natural” allegedly in violation of California’s unfair competition law (UCL), except for claims relating to its “Popcorn Chicken” product, finding that claims relating to all of the other relevant products were preempted by federal regulations.
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March 06, 2024
Judge Strikes Dismissal Of Putative Class Suit Against Alleged Gambling App
LOS ANGELES — A California federal judge struck a plaintiff’s voluntary dismissal of his putative class suit against a “sweepstakes” app for allegedly enticing the plaintiff into illegal sports gambling in violation of California’s unfair competition law (UCL) and directed the plaintiff to file further briefing establishing whether the plaintiff received any settlement or consideration for dismissal and if dismissal will prejudice the interests of potential class members.
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March 06, 2024
9th Circuit: Google Didn’t Deceive Android Users By Gathering App, OS Data
SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on March 5 affirmed the dismissal of two smartphone users’ fraud, unfair competition and breach of contract claims against Google LLC for collecting data on third-party app usage via its Android operating system (OS), finding that Google adequately disclosed its collection of consumer data across both Google apps and third-party apps using its OS.
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March 05, 2024
Georgia Judge Grants Final OK In Chick-Fil-A Hidden Delivery Fee Settlement
ATLANTA — A settlement agreement that includes a cash settlement fund of up to $1.45 million and up to $2.95 million in gift cards reached in a consolidated class complaint accusing a fast food chain of offering free or low-cost delivery while hiding charges within increased food prices was granted final approval by a Georgia judge.
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March 05, 2024
Consumers Tell 9th Circuit UCL Claims Against Chipmaker Were Wrongly Dismissed
SAN FRANCISCO — Consumers filed an appellant brief in the Ninth Circuit U.S. Court of Appeals arguing that their putative class claims against a modem chipmaker for violation of antitrust laws and California’s unfair competition law (UCL) should not have been dismissed on summary judgment and alternatively urging the court to certify a question to the California Supreme Court on their state law claims.
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March 04, 2024
Consumer Accuses Apple Of ‘Rigging’ Devices To Monopolize Cloud Storage
SAN FRANCISCO — A consumer on March 1 filed a putative class action complaint against Apple Inc. in California federal court, accusing it of monopolizing access to its iCloud data storage service by configuring Apple mobile devices to require users to sign up for iCloud to store certain digital files, allegedly in violation of federal and state antitrust laws and California’s unfair competition law (UCL).
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March 01, 2024
Elon Musk Takes On OpenAI’s Altman With Contract, UCL Suit
SAN FRANCISCO — OpenAI’s founders breached the company’s founding agreements dictating that it operate as a nonprofit and be open source when they partnered with Microsoft in exchange for millions of dollars, Elon Musk alleges in a Feb. 29 lawsuit filed in California against Sam Altman for breach of contract and violation of the California unfair competition law (UCL).
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February 29, 2024
Plaintiffs Say PFAS Complaint Against L’Oreal Is Supported By Lab Test Results
NEW YORK — The plaintiffs who argue that L’Oreal USA Inc. is liable for making and selling mascara that contains per- and polyfluoroalkyl substances (PFAS) have filed a brief in New York federal court contending that L’Oreal’s motion to dismiss their claim should be denied because it has concealed the fact that its products contain PFAS, knowing that that information would cause consumers to purchase another product.
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February 29, 2024
Panel Reverses Dismissal Of UCL Claim Brought By Car Purchaser Who Lost $300,000
LOS ANGELES — A California appellate panel reversed the dismissal of a lawsuit brought by the prospective buyer of “high-end vehicles” who accused the woman who organized the purchase of deceiving him into paying $300,000 but ultimately providing no vehicles, finding that the plaintiff sufficiently alleged unfair conduct in violation of California’s unfair competition law (UCL).
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February 29, 2024
Plaintiff Dismisses Suit Claiming ‘Sweepstakes’ App Caused Gambling Losses
LOS ANGELES — A putative class plaintiff on Feb. 28 filed a notice of voluntary dismissal in California federal court of his claims against an app company for violating California’s unfair competition law (UCL) and other laws by allegedly enticing him into illegal sports gambling two months after a judge granted a motion to compel arbitration of his all his claims.
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February 29, 2024
Justices Suggest Remand, Express Confusion In Crypto Sweepstakes Arbitration Row
WASHINGTON, D.C. — In Feb. 28 oral arguments, the justices of the U.S. Supreme Court repeatedly returned to questions about why a dispute about contractual arbitration and delegation provisions between a cryptocurrency exchange and sweepstakes entrants ended up before them, with the option of remand seeming to gain momentum over the course of the session.
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February 28, 2024
Initial OK Given To $2.45 Million Settlement Of Debt Collector Data Breach Suit
SEATTLE — Two months after the proposed settlement of a class action over the 2022 breach of a debt collector’s network was sent back for some fine-tuning, a Washington federal judge granted a renewed motion for preliminary approval of a $2.45 million agreement, finding that the parties cured ambiguous language in its scope of release and sufficiently identified the range of attorney fees and costs amounts sought.
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February 27, 2024
Judge: PREP Act Applies To Class Action Alleging Injuries From COVID-19 Drug
LOS ANGELES — Patients and their family members who allege injuries after being prescribed and ingesting an antiviral drug used to treat severe COVID-19 symptoms saw their putative class action dismissed by a California federal judge who found that the manufacturer has immunity under the Public Readiness and Emergency Preparedness Act (PREP Act).
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February 27, 2024
Call Of Duty Players Say Activision’s Esports Monopoly Caused $120M In Damages
LOS ANGELES — Two professional players of the video game “Call of Duty” (CoD) and one affiliated business entity allege in a complaint filed in California federal court that developer Activision Blizzard Inc. has violated the federal Sherman Act, California’s unfair competition law (UCL) and other laws by monopolizing all CoD-related esports and excluding existing teams, allegedly causing the plaintiffs more than $120 million in damages.
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February 23, 2024
Gig Economy Company Agrees To Settlement Including Worker Reclassification
SAN FRANCISCO — A gig economy staffing company accused of violating California’s unfair competition law, the state’s labor code and San Francisco ordinances by misclassifying its workers as independent contractors has agreed to a settlement in a lawsuit in California court to convert its misclassified California workers to employees, according to a final judgment and injunction filed Feb. 22.
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February 22, 2024
Epic Calls Apple’s $73 Million Costs, Fees Tab In Antitrust Dispute An Overreach
OAKLAND, Calif. — Responding to Apple Inc.’s motion that it be required to indemnify more than $73 million in court costs and other fees related to their 3-1/2-year monopolization row, Epic Games Inc. tells a California federal court that most of the amounts sought are unrecoverable under controlling precedent, California law and the very agreement under which the defendant seeks indemnification.
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February 21, 2024
Panel Trims $933K From $22.3M Penalty Against Online School For Misrepresentations
SAN DIEGO — A California appeals court panel on Feb. 20 reduced a $22.3 million judgment in civil penalties against an online education company and its former online university by approximately $933,000 but otherwise affirmed the judgment after finding that the California attorney general’s office properly established more than 1 million violations of California’s unfair competition law (UCL) and false advertising law (FAL) based on deceptive calls to lure in students.
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February 21, 2024
Judge Grants Stipulated Dismissal In AI-Tax Prep, UCL, Advertising Suit
SAN JOSE, Calif. — A federal judge on Feb. 20 approved a stipulated dismissal in a case involving two companies locked in a battle over whether the advertising of artificial intelligence tax preparation software violated the California unfair competition law.
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February 21, 2024
Magistrate Judge Grants Motion To Strike Bad Faith Claim In Water Damage Suit
SAN FRANCISCO — A California federal magistrate judge denied a business insurer’s motion to dismiss claims for promissory estoppel and unfair competition but granted the insurer’s motion to strike a bad faith claim in the insured’s complaint, which seeks coverage for water damages at the insured’s business, after determining that the bad faith claim is duplicative of the insured’s claim for breach of the implied covenant of good faith and fair dealing.