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Class Action
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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.
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January 30, 2025
PayPal Beats Investor Suit Over Inflated User Metrics Claims
A New Jersey federal court has dismissed a proposed class action that accused PayPal of misleading investors with user metrics inflated by a scam that took advantage of a PayPal promotion that paid people to set up new accounts, saying the investors did not show PayPal knew of the alleged scam when certain statements were made.
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January 30, 2025
Patient Transportation Co. Hid Cash Flow Woes, Investor Says
Patient transportation company Modivcare Inc. has been hit with a proposed shareholder class action in Colorado federal court alleging the company failed to disclose that its contract renegotiations with customers negatively impacted its bottom line.
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January 30, 2025
Hotel Guests Get Backing For Algorithmic Pricing Suit
Hotel guests accusing a group of Atlantic City properties of using shared software to fix room rates are getting a helping hand in their Third Circuit fight to revive their suit from antimonopoly interest groups, who filed in separate amicus briefs in support of their effort this week.
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January 30, 2025
Plaintiffs, Pfizer Spar Over Where To Join Depo-Provera Suits
Consumers who claim Pfizer Inc. failed to adequately warn patients and doctors about the risk of brain tumors associated with the hormonal contraceptive drug Depo-Provera urged the U.S. Judicial Panel on Multidistrict Litigation on Thursday to consolidate their cases but sparred over whether to move them to California or New York.
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January 30, 2025
Pump.Fun Faces Suit Over Unregistered Memecoin Sales
Memecoin launchpad Pump.Fun and its executives should have registered the tokens spawned on its platform with the U.S. Securities and Exchange Commission, according to a proposed securities class action brought by a purchaser in New York federal court.
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January 30, 2025
Google Judge Leery Of Administration Of $90M Antitrust Deal
A California federal judge overseeing Google's $90 million antitrust deal with Play Store developers expressed "doubt" Thursday about the decision of counsel representing smaller developer plaintiffs to stay with an administration company handling the settlement distribution, two months after criticizing the administrator's work as "the worst performance I've seen."
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January 30, 2025
Circle K Gas Franchise Hit With Data Breach Class Action
Gas and convenience store chain Circle K was hit with a proposed class action in Georgia federal court over allegations that it failed to adequately safeguard the sensitive personal information of its employees during a May 2024 data breach.
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January 30, 2025
Consumers Want L'Oréal Acne Products Suits In Hawaii
Plaintiffs suing L'Oréal for selling acne products that could break down into the carcinogen benzene took a second stab at consolidating their lawsuits, asking the U.S. Judicial Panel on Multidistrict Litigation on Thursday to join the suits in Hawaii.
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January 30, 2025
Symetra To Pay $2M To End Structured Settlement Suit
Insurance conglomerate Symetra has agreed to pay more than $2.1 million to settle a proposed class action in Washington federal court accusing two Symetra entities of luring roughly 2,000 recipients of personal injury settlements into selling their future stream of payments for a heavily discounted lump sum.
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January 30, 2025
Amazon Can't Lob 'Hail Mary' In Price-Gouging Suit, AG Says
Washington's attorney general said Wednesday that Amazon can't dodge a proposed class action alleging price-gouging during the COVID-19 pandemic, telling a federal judge that a pivotal state high court ruling in the case was clear on how Washington law allows the consumers to sue.
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January 30, 2025
Investors Push To Consolidate Suits On Cash Sweep Programs
Investors claiming brokerage firms' cash sweep investment programs unfairly enriched the brokers at the expense of customers asked the U.S. Judicial Panel on Multidistrict Litigation Thursday to consolidate their suits, arguing they risk ending up with wildly different judicial rulings without it.
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January 30, 2025
Disabled Clients Employed Pa. Workers, Not Co., Judge Says
A Medicaid-funded home care company is not liable for the unpaid wages a group of home care workers claimed it owed them because the company functioned more as a "fiscal manager" than an employer, a Pennsylvania federal judge ruled Thursday.
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January 30, 2025
Objection To NCAA's NIL Deal Sparks Attorney War Of Words
A group of athletes claimed Wednesday that the $2.78 billion settlement with the NCAA over college athlete compensation illegally limited payments and broke antitrust laws, in an objection that spurred the plaintiffs' attorney to accuse the objectors' representatives of failing the athletes in previous court challenges.
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January 30, 2025
Ancestry.com Beats Proposed Privacy Class Action, Again
An Illinois federal judge granted summary judgment Wednesday to Ancestry.com in a proposed class action accusing the online company of stealing yearbook photos and identities to advertise its services without consent, finding no evidence that the information was publicly used or displayed.
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January 30, 2025
Nutrisystem Hit With Privacy Suit In Philly
Philadelphia-based diet food company Nutrisystem has been hit with a potential class action alleging that it shared customer information with a web tracking company without users' consent.
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January 30, 2025
Mass. Law Firm Settles Data Breach Suit For $150K
A small Massachusetts law firm will pay $150,000 to settle a data breach class action in Massachusetts federal court seeking to hold it liable for a 2022 cyberattack on its computer systems, the class representative told the court Thursday.
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January 30, 2025
Turkey Buyers' $32M Cargill Price-Fix Deal Scores Early OK
Turkey buyers' proposal for a $32 million settlement of price-fixing claims against Cargill sailed through the initial approval stage Thursday as an Illinois federal judge praised the deal as "substantial" relief for the class.
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January 30, 2025
Atty Should Lose License In Billing Scandal Case, Judge Says
A San Fernando Valley attorney colluded with attorneys for the city of Los Angeles in a water utility class action for which he received a $1.65 million fee and later sought to hire hackers to spy on the judge presiding over the class suit, a State Bar of California judge has found.
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January 30, 2025
NC Biz Court Bulletin: Sanctions Miss, Philip Morris Refund
In the second half of January, the North Carolina Business Court tussled with sanctions against a biogas company, heard claims an insurer tried to deliberately embarrass Cadwalader Wickersham & Taft LLP and ordered an $11 million tax refund for Philip Morris.
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January 30, 2025
Mass. High Court Backs Insurers' Lost Resale Value Exclusion
Language in Massachusetts auto insurance policies limiting coverage to "tangible losses" lets MAPFRE Insurance subsidiary Commerce and other companies off the hook for claims based on lost resale value after an accident, the state's highest court said on Thursday.
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January 30, 2025
Drivers' Collective Cert. In Amazon Suit Won't Go To 9th Circ.
Amazon didn't show how letting the Ninth Circuit mull a collective certification will speed up litigation in an 8-year-old suit accusing the company of misclassifying workers as independent contractors, a Washington federal judge ruled, denying the company's appeal bid.
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January 29, 2025
Turkey Producers Say Burford Unit's Suit Is Purely Profit-Led
Turkey producers fighting consolidated price-fixing claims in Illinois urged a federal judge Tuesday to kick a Burford Capital Investment unit's claims out of the case on summary judgment, arguing the action exists solely because of the litigation funder's drive to profit from a lawsuit.
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January 29, 2025
Meta To Pay $25M To End Trump's Account Suspension Suit
Meta Platforms confirmed Wednesday that the company and its CEO, Mark Zuckerberg, have agreed to pay $25 million to settle the lawsuit that President Donald Trump filed after the social media company suspended his account following the 2021 attack on the U.S. Capitol over concerns he would incite further attacks.
Expert Analysis
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7th Circ. Travel Time Ruling Has Far-Reaching Implications
In a case of first impression, the Seventh Circuit’s recent holding in Walters v. Professional Labor Group will have significant implications for employers that must now provide travel time compensation for employees on overnight assignments away from home, says Anthony Sbardellati at Akerman.
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2 Cases Show DAOs May Face Increasing Legal Scrutiny
Two ongoing cases that recently survived motions to dismiss in California federal courts concerning Compound DAO and Lido DAO threaten to expand the potential liability for activity attributed to decentralized autonomous organizations — and to indirectly create liability for their participants, say attorneys at Cahill Gordon.
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Args In 2 High Court Cases May Foretell Clarity For Employers
Mary Anna Brand at Maynard Nexsen examines possible employment implications of two cases argued before the Supreme Court this fall, including a higher bar for justifying employees as overtime exempt under the Fair Labor Standards Act, and earlier grants of prevailing party status for employee-plaintiffs seeking attorney fees.
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Calif. Ruling May Shield Public Employers From Labor Claims
In Stone v. Alameda Health System, the California Supreme Court recently exempted a county hospital from state-mandated rest breaks and the Private Attorneys General Act, granting government employers a robust new bulwark against other labor statutes by undermining an established doctrine for determining if a law applies to public entities, say attorneys at Hunton.
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Service Providers Must Mitigate 'Secondary Target' Risks
A lawsuit recently filed in an Illinois federal court against marketing agency Publicis over its work for opioid manufacturers highlights an uptick in litigation against professional service providers hired by clients that engaged in alleged misconduct — so potential targets of such suits should be sure to conduct proper risk analysis and mitigation, say attorneys at Dechert.
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2nd Circ. AmTrust Decision Shows Audit Reports Still Matter
Though the Second Circuit eventually found on reconsidering a case over the high-profile accounting meltdown at AmTrust that audit reports are material to investors, its previous contrary holding highlights the seriousness of the ongoing crisis of confidence in the audit report, say attorneys at Bernstein Litowitz.
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Series
Flying Makes Me A Better Lawyer
Achieving my childhood dream of flying airplanes made me a better lawyer — and a better person — because it taught me I can conquer difficult goals when I leave my comfort zone, focus on the demands of the moment and commit to honing my skills, says Ivy Cadle at Baker Donelson.
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Nvidia Supreme Court Case May Not Make Big Splash
The skeptical tenor of the justices' questioning at oral argument in Nvidia v. Ohman Fonder suggests that the case is unlikely to alter the motion to dismiss pleading standard in securities class actions, as some had feared, say attorneys at WilmerHale.
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Defense Insights As PFAS Consumer Product Claims Rise
Amid the recent proliferation of lawsuits seeking damages for failure to disclose the presence of PFAS in consumer products, manufacturers, distributors and consumer product companies should follow the science and consider a significant flaw in many of the filings, say attorneys at Farella Braun.
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Series
Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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How D&O Coverage Can Aid Against Increased AI Scrutiny
The recent increase in regulatory enforcement and securities class actions stemming from corporate use of artificial intelligence should prompt companies to ensure that their directors and officers liability insurance coverage is appropriately tailored to AI-related risks, say attorneys at Reed Smith.
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Recent Listeria Outbreaks Hold Key Compliance Lessons
Listeria outbreaks in ready-to-eat foods from Boar's Head and other companies, and the U.S. Department of Agriculture and U.S. Food and Drug Administration responses to these outbreaks, should be closely evaluated from an overall compliance and risk management perspective by food manufacturers, retailers and industry investors, say attorneys at Kirkland.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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What Cos. Can Learn from Water Microplastics Class Actions
Class actions against companies whose bottled spring water allegedly contains microplastics, challenging claims such as "natural" and "100% spring water," seem to be drying up — but these cases serve as a good reminder to other businesses to review regulatory standards, and carefully vet plaintiff allegations at the outset, say attorneys at Keller and Heckman.
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$3B TD Bank AML Settlement Is A Wake-Up Call For All Banks
TD Bank’s historic settlement over anti-money laundering violations, resulting in over $3 billion in penalties, reminds banks of all shapes and sizes why they need to take financial crime compliance seriously, and highlights three areas that may be especially vulnerable to enforcement, says Jack Harrington at Bradley Arant.