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Class Action
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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.
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January 29, 2025
Albertsons Must Face County's Opioid Nuisance Claims
Albertsons Cos. Inc. can't escape a Texas county's public nuisance claims stemming from opioid sales at the grocery giant's in-store pharmacies, an Ohio federal judge ruled Tuesday, saying there's a "common law duty of care" for pharmacies not to expose the county to a "reasonably foreseeable" risk of harm.
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January 29, 2025
Fed. Circ. Affirms Delaying Biosimilars For Regeneron's Eylea
A West Virginia federal judge has the power to oversee patent infringement litigation against drugmakers from South Korea and Germany and stop them from launching biosimilar versions of Regeneron's blockbuster eye disease treatment Eylea, the Federal Circuit said Wednesday.
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January 29, 2025
4th Circ. Mulls If Tossing No-Poach Suit Rewards Bad Behavior
As the Fourth Circuit mulled the idea of reviving a proposed class action accusing military shipbuilding contractors of agreeing not to poach each other's engineers, one judge rebuffed the idea that the suit had no legs because there were no specific allegations of fraudulent concealment.
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January 29, 2025
Roomba Maker Escapes Suit Over Scuttled Amazon Merger
A Massachusetts federal judge has permanently thrown out a shareholder class action accusing iRobot Corp. of misleading investors about expected regulatory opposition that ultimately led to the abandonment of a proposed $1.7 billion merger with Amazon, saying "the pleading process ought not be used as a trial balloon, with repeated bites at the apple."
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January 29, 2025
Del. Justices Mull 'Nuanced' T-Mobile Data Breach Claims
Delaware's chief justice pressed an attorney for T-Mobile Corp. stockholders Wednesday on what the attorney called a "nuanced" derivative claim that the company's board wrongly failed to pursue damages for massive data breaches after its controlling stockholder pressed for adoption of a vulnerable data sharing program.
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January 29, 2025
Mich. Judge Doubts Discovery Dispute Should DQ Firm
A Michigan federal judge on Wednesday said a law firm's alleged "bad behavior" doesn't necessarily mean it can't represent a former CEO of a solar energy company, telling residents who sought to disqualify the firm because of a supposed conflict that their complaints may be better dealt with through discovery motions.
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January 29, 2025
Pension Plans Seek Trader's Testimony In $2B Tax Fraud Suit
Pension plans and individuals who Denmark's government alleges received fraudulent refunds have asked a New York federal court to allow U.K. court testimony into the record from a trader who Danish authorities say masterminded a $2.1 billion tax fraud, saying it shows he deceived other participants.
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January 29, 2025
Farmers' Antitrust Claims Trimmed In Pesticides Case
A North Carolina federal court has cut one set of federal antitrust claims from a suit brought by farmers accusing major pesticide manufacturers Syngenta AG and Corteva Inc. of blocking competition but allowed a slew of other claims to proceed.
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January 29, 2025
Full Fed. Circ. Won't Allow MSN To Launch Generic Entresto
The Federal Circuit is standing by its decision to bar MSN Pharmaceuticals from launching a generic version of Novartis' bestseller, the cardiovascular drug Entresto, as Novartis tries to persuade the court that it deserves an injunction through July.
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January 29, 2025
Co.'s Missing Signature Prevents Arbitration In Wage Row
A former home sales representative for a cosmetics company can keep her wage suit in court, a California state appellate panel ruled, affirming a lower court's ruling that the company failed to show it had a valid arbitration agreement with the worker because it didn't sign the pact.
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January 29, 2025
Jenzabar Tells Del. Justices Investor Delay Sinks $26M Award
An attorney for the founder of a higher education software company told Delaware's Supreme Court on Wednesday that shareholders moved too late to recover on claims they were kept in the dark when millions in stock purchase warrants were allowed to expire without notice that they could invest in a follow-on opportunity.
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January 29, 2025
Southwest's Plan Oversight Cost Workers Millions, Court Told
Southwest Airlines cost workers millions of dollars in retirement savings by failing to ax a costly and underperforming investment fund from its combined $14 billion retirement plans, according to a proposed class action filed in Texas federal court.
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January 29, 2025
Ga. Judge Cuts Atty Fees In Home Depot Class Settlement
A Georgia federal judge has granted final approval to a settlement between Home Depot Corp., Reliance Worldwide Corp. and a class suing over allegedly faulty water heater connector hoses but awarded class counsel $1.9 million in fees instead of the $2.1 million initially requested.
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January 29, 2025
Shopper Says Costco Adds Hidden Fees To Online Deliveries
Costco is the target of a proposed consumer class action alleging the membership retailer is reneging on promises to waive online delivery fees by adding hidden charges that make products bought through the company's e-commerce site more expensive than the same products sold in stores.
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January 29, 2025
Workers Needed To Initiate Arbitration, Calif. Panel Says
A group of workers needed to initiate arbitration in their proposed class action claiming an insurance company misclassified them as exempt employees after a trial court sent their claims out of court, a California state appellate panel ruled, flipping the lower court's decision reviving the suit.
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January 28, 2025
GigaCloud Partially Escapes Suit Over Revenue, Tech Claims
GigaCloud Technology Inc. and its top brass have partially escaped a proposed class action alleging it misrepresented its operating metrics and revenues and use of artificial intelligence, with a New York federal judge saying that a federal securities law violation "cannot be premised upon a company's disclosure of accurate historical data."
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January 28, 2025
Staples Settles Out Of Visa, Mastercard Swipe Fee Battle
Staples on Tuesday settled out of an over decade-long antitrust battle lodged against Visa and Mastercard for allegedly overcharging merchants via swipe fees, leaving the payment card companies with one less retailer to face in trial this year over their alleged anticompetitive fee scheme.
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January 28, 2025
Capri Investors Sue Over Scrapped $8.5B Tapestry Merger
Fashion brand giants Capri Holdings Ltd. and Tapestry Inc. misled investors about potential antitrust regulatory issues associated with their planned $8.5 billion merger that ultimately led to the deal's failure and investor losses, according to a proposed securities class action filed Tuesday in Delaware federal court.
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January 28, 2025
9th Circ. Backs Class Attys' $8M In Fees In Joint Juice Suit
The Ninth Circuit on Tuesday upheld an $8 million fee award to plaintiffs who prevailed in a false advertising suit against food company Premier Nutrition Corp. over its Joint Juice supplement, finding the lower court didn't abuse its discretion in awarding fees for work plaintiffs' attorneys performed while a related case was pending.
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January 28, 2025
Black Homebuyers Seek OK For Predatory Lending Settlement
A proposed class of Black homebuyers has asked a Michigan federal judge to approve their $750,000 settlement with real estate companies and their investors who allegedly bought up run-down Detroit properties to sell to Black buyers with abusive lending terms.
Expert Analysis
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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.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.