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February 7, 2012 11:56 PM GMT | Posted by Katherine Heckert
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Three years after initial class certification in Mazza, the Ninth Circuit reviewed the District Court’s opinion, considering, in part, whether the Wal-Mart affirmative burden to demonstrate that a common question of fact or law exists was met to resolve the issues “in one stroke.” Were such common issues present in Mazza, where consumers across the country were exposed to different advertising? Find out, after the jump. | read more
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September 29, 2011 6:09 PM GMT | Posted by Williams, Amelia
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An anonymous objector who has dubbed himself as both “John Jacob Jingleheimer Smith” and “Robin Hood” filed a personal objection and an objection on behalf of his so called “Band of Outlaws” to a proposed settlement in a class action against Bank of America. | read more
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September 23, 2011 2:44 PM GMT | Posted by Clark, Johanna
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In Lorenzo-Zamorano v. Overlook Harvesting Company, LLC, 2011 WL 4101499 (M.D. Fla. 2011) the Middle District of Florida denied plaintiff’s motion for class certification because plaintiffs failed to satisfy the predominance and superiority requirements of Rule 23(b)(3). Plaintiffs filed a three-count putative class action for breach of contract, breach of the Florida Minimum Wage Provision of the Florida Constitution and violation of the Fair Labor Standards Act. | read more
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September 21, 2011 2:18 PM GMT | Posted by Katherine Heckert
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When must a court consider the merits of a case where they overlap with class certification issues? The 9th Circuit clarifies, after the jump. | read more
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September 19, 2011 2:34 PM GMT | Posted by Williams, Amelia
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Last week the Northern District Court of Florida adopted the Magistrate Judge’s Report and Recommendation, which held that Defendants’ removal of a class action suit to federal court under the Class Action Fairness Act of 2005 (“CAFA”) was proper. Would you like to find out more? | read more
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September 14, 2011 6:40 PM GMT | Posted by Wierenga, Ryan
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Just in time for football season, a New Jersey federal judge granted the video game producer Electronic Arts Inc.'s ("EA") motion for summary judgment in an proposed class action brought by former Rutgers University quarterback Ryan Hart. Hart alleged that EA had misappropriated his likeness and used it in the popular game "NCAA Football". EA asserted First Amendment protection of its "expressive work" and the Court agreed that EA's First Amendment rights outweighed Hart's right of publicity. Apparently profiting from your likeness is just one more advantage of going pro. For more information click here Link.
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September 11, 2011 6:54 PM GMT | Posted by Katherine Heckert
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In a class action brought by student loan borrowers against a lender based on alleged violations of California consumer-protection laws in response to a suit by the lender on the unpaid loans, the Ninth Circuit addressed whether the additional counterclaim defendants could remove the action to federal court under the Class Action Fairness Act. Find out their conclusions, after the jump. | read more
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September 7, 2011 10:06 PM GMT | Posted by Katherine Heckert
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The Eighth Circuit Court of Appeals recently applied the Concepcion case in the enforceabilty of class action waivers under signed Unit Franchise Agreements for SuperShuttle. Find out what the Court held, after the jump. | read more
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September 6, 2011 12:28 PM GMT | Posted by Cipriani, Jon A.
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In Behrend v. Comcast Corp., No. 10-2865, 2011 WL 3678805 (3d Cir. Aug. 23, 2011) the Third Circuit affirmed the district court’s certification of an antitrust class action alleging anticompetitive conduct by Comcast in the Philadelphia area. Along the way, the court laid down a clear boundary line differentiating class certification analysis from analysis of the merits. | read more
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September 2, 2011 10:03 PM GMT | Posted by Yolanda Paschal
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In Gray, III v. Hearst Communications, Inc., No. 10-1302, 2011 WL 3734413 (4th Cir. Aug. 25, 2011), the court affirmed a class certification. The decided issue was whether the district court erred in finding that the proposed class action satisfied the commonality and predominance requirements of Federal Rule of Civil Procedure 23. Id. at *1. | read more
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August 29, 2011 1:38 PM GMT | Posted by Cipriani, Jon A.
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Who doesn’t love a good argument about jurisdiction? Well, for one, a defendant trying to keep the on-the-merits dismissal it won in the trial court. For another, a cagey plaintiff who can’t or won’t produce facts that would keep her claim out of federal court. The First Circuit recently sent two such parties back to the district court for a decision on subject matter jurisdiction. | read more
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August 11, 2011 2:16 PM GMT | Posted by Kirkwood, Allison
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In June, we reported that a graduate of Thomas Jefferson School of Law sued the law school in California state court, alleging that the school’s misleading post-graduation employment statistics violated fraud laws, California’s Unfair Competition Law, False Advertising Act, and Consumer Legal Remedies Act. This week, two more law schools were hit with class actions just days after the ABA approved changes to its employment reporting requirement for law schools. | read more
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August 10, 2011 2:51 PM GMT | Posted by Katherine Heckert
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Does a rejected offer of judgment for the full amount of a putative class representative's individual claim moot a class action? The 9th Circuit Court of Appeals recently considered this question- find out their conclusion, after the jump. | read more
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July 28, 2011 3:49 PM GMT | Posted by Avi Robert Kaufman
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In Bacon v. Stiefel Labs., Inc., No. 09-21871-CIV, 2011 WL 2973677 (S.D. Fla. July 21, 2011), the court considered whether to certify two classes and a subclass of present and former Stiefel employees alleging that certain directors manipulated the employees’ ownership over shares of the privately-held company in violation of ERISA and the Securities and Exchange Act. | read more
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July 21, 2011 1:37 PM GMT | Posted by Cipriani, Jon A.
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It's the age of the iPad, Twitter, and blogs. But the humble fax still has some adherents. A few businesses send them unsolicited...by the thousands. In the Third Circuit, plaintiffs can now file federal class action claims against these troublesome transmitters, thanks to a sharply divided panel decision on an unusual jurisdictional issue. | read more
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July 14, 2011 7:04 PM GMT | Posted by Clark, Johanna
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Bills to repair underground damage caused by Plaintiffs results in a class action against BellSouth for alleged overbilling. Read more after the jump. | read more
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June 22, 2011 5:31 PM GMT | Posted by Williams, Amelia
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Employment lawyers discuss the impact of the Dukes v. Wal-Mart decision on future large class action employment discrimination cases. | read more
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June 22, 2011 3:24 PM GMT | Posted by Katherine Heckert
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Does an offer of judgment in the full amount of Plaintiff’s claim prior to class certification render an action moot? The 10th Circuit recently addressed this matter of first impression. | read more
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June 21, 2011 5:54 PM GMT | Posted by Katherine Heckert
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The 10th Circuit Court recently considered whether failure to attach a co-defendant’s summons to a joint notice of removal required remand. Did the 10th Circuit follow the view that this is a fatal defect, or find it to be curable? Find out after the jump. | read more
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June 21, 2011 2:50 PM GMT | Posted by Clark, Johanna
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The Santa Rosa County Sheriff's policy requires all out-going mail, except legal and other privileged correspondence, to be in postcard form. In opposing Plaintiff's motion for class certification, the Sheriff did not dispute that the named Plaintiff had standing or that the requirements of Rule 23(a) and Rule 23(b) were satisfied. Rather, he claimed that certification was unnecessary and a waste of his resources, and the court's, because the declaratory and injunctive relief, if granted, would benefit all members of the proposed class regardless of whether a class was certified. Judge Rodgers of the Northern District of Florida disagreed. | read more
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June 20, 2011 7:49 PM GMT | Posted by Katherine Heckert
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The Class Action Fairness Act ("CAFA") clearly allows aggregation of individual claims in a class action to determine whether the jurisdictional requirements of removal to federal court are met. However, a recent Eighth Circuit opinion considered instead whether class actions themselves may be aggregated to meet the jurisdictional requirements. Find out what the Court decided after the jump. | read more
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June 20, 2011 4:36 PM GMT | Posted by Josh Roberts
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The Supreme Court kicked the week off by rolling back respondents’ sexual discrimination class action lawsuit in Wal-Mart Stores, Inc. v. Dukes, 564 U.S. ____ (2011). How did the Court do it and is Wal-Mart actually “too big” to be sued? Find out after the jump.
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June 17, 2011 10:41 PM GMT | Posted by Josh Roberts
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Yesterday in Smith v. Bayer Corp., --- S.Ct. ----, 2011 WL 2369357 (U.S.), the Supreme Court unanimously agreed to let two West Virginia residents revive a lawsuit against Bayer Corporation over its anti-cholesterol drug, Baycol, which was voluntarily withdrawn from the market in 2001. How did this happen? Get your coffee ready and find out after the jump. | read more
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June 8, 2011 11:20 PM GMT | Posted by Weiss, Aaron
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Judge Kings Enters Post-Concepcion Order in Banking Overdraft Fee MDL | read more
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June 8, 2011 1:14 PM GMT | Posted by Yolanda Paschal
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When is a suit brought on behalf of a certain group of people not considered a class action?
The Fourth Circuit addresses this question in West Virginia v. CVS Pharmacy, Inc., No. 11-1251, 2011 WL 1902678 (4th Cir. May 20, 2011). | read more
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June 7, 2011 1:56 PM GMT | Posted by Josh Roberts
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As forecast by this blog last month, in Erica P. John Fund v. Halliburton, --- S. Ct. ----, 2011 WL 2175208 (U.S.), the U.S. Supreme Court ruled in favor of plaintiff shareholders who accused Halliburton Co. of making misrepresentations designed to inflate the company’s stock price, making it easier for would be plaintiff investors to bring securities fraud class actions. How did this happen? Find out after the jump. | read more
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June 3, 2011 8:59 PM GMT | Posted by Kirkwood, Allison
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A 2008 honors graduate of Thomas Jefferson School of Law in San Diego claims that she was lured to the school by statistics reported by U.S. News & World Report in 2003 indicating that 80% of the school’s graduates were employed after nine months. The plaintiff claims that she “reasonably interpreted these figures to mean that the vast majority of TJLS graduates would find employment as full time attorneys.” | read more
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May 31, 2011 5:54 PM GMT | Posted by Kirkwood, Allison
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A blind law school applicant sued the American Bar Association, arguing that the requirements of the LSAT discriminate against the visually impaired. | read more
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May 23, 2011 2:47 PM GMT | Posted by Celender, Kate
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In Am. Home Services, Inc. v. A. Fast Sign Co., Inc., --- S.E. 2d, 2011 WL 1782083, at *1-*3 (Ga. App. May 11, 2011), recipients of unsolicited faxed advertisements brought a class action against the sender, Am. Home Services, Inc., alleging violations of the Telephone Consumer Protection Act of 1991. The Plaintiffs won a $459 million dollar judgment based on the Act, which is intended to compensate plaintiffs for annoyance, conversion of paper and ink, and use of the machine during the transmissions. The appellate court held that damages should have been calculated based on the number of advertisements the class members received, not the amount sent, and remanded accordingly. | read more
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May 16, 2011 12:00 PM GMT | Posted by Williams, Amelia
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A class of over 4,000 ATT&T employees suing for unpaid overtime compensation was decertified by a New York Federal Judge on May 13, 2011. The Court found that the plaintiffs’ claims were too varied and dissimilar and in effect would require over 4,000 mini-trials. (Link To Story) | read more
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May 14, 2011 5:24 PM GMT | Posted by Katherine Heckert
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The Eighth Circuit Court of Appeals in Graphic Communications Local 1B Health & Welfare Fund “A” v. CVS Caremark Corp., 636 F.3d 971 (8th Cir. (Minn.) 2011) considered the question of whether under the Class Action Fairness Act the local controversy provision can divest subject matter jurisdiction, and whether a motion for remand made more than thirty days after removal is untimely.
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May 13, 2011 1:13 PM GMT | Posted by Katherine Heckert
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In Countryman v. Farmers Ins. Exchange, --- F.3d ----, 2011 WL 1760196 (10th Cir. (Colo.)), the court was presented with the question of whether a Defendant’s failure to attach a co-Defendant’s summons to a joint notice of removal was a fatal, jurisdictional defect, or simply a minor procedural defect. In their decision, the court had to decide whether to strictly apply statutory langauge or to take a more functionalist approach. Find out what direction the court is swinging, after the jump. | read more
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May 11, 2011 1:21 PM GMT | Posted by Williams, Amelia
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The Ninth Circuit failed to revive a putative class action suit brought by ebay Inc. sellers. The Court determined that the sellers could not demonstrate any injury caused by eBay’s alleged actions. (Link To Story) | read more
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May 10, 2011 11:12 PM GMT | Posted by Weiss, Aaron
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The Eleventh Circuit wasted little time in applying AT&T Mobility LLC v. Concepcion, 563 U.S. ___, 2011 WL 1561956, (2011) (covered previously here) to a group of cases pending on its docket. | read more
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May 10, 2011 1:47 PM GMT | Posted by Katherine Heckert
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The Class Action Fairness Act of 2005 allows actions to be removed to federal court by any defendant without the consent of all defendants. But does it allow a defendant to a counterclaim the same procedural advantages? Westwood Apex v. Contreras, --- F.3d ----, No. 11-5536, 2011 WL 1744960 (9th Cir.(Cal.) May 2, 2011) gave us the answer, after the jump. | read more
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May 5, 2011 6:40 PM GMT | Posted by Yolanda Paschal
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When does the clock start ticking on one’s ability to file a petition for permission to appeal an order granting or denying class certification? The Second Circuit recently joined several of its sister circuits by strictly interpreting Federal Rule of Civil Procedure 23(f). | read more
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May 2, 2011 11:30 PM GMT | Posted by Josh Roberts
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On April 25, 2011, the U.S. Supreme Court heard oral argument in the case of John Fund Inc. v. Halliburton Co. et al., U.S., No. 09-1403. This case concerns a security class action, whereby Plaintiffs allege that the Defendants committed fraud on the market, such as withholding important information or disclosing false information to the trading public. The issue before the Court is whether Plaintiffs must prove that the alleged fraud caused a drop in stock prices in order to gain class certification. The Fifth Circuit held that Plaintiffs must establish both loss causation and fraud on the market prior to merits discovery before the class can be certified. How is the Supreme Court leaning? Find out after the jump. | read more
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April 27, 2011 11:46 PM GMT | Posted by Josh Roberts
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Depending on who your client is, today, the Supreme Court may have just thrown a going away party or knockout blow for consumer class action litigation. How is this possible and what may companies be able to do to limit their exposure to class action claims? Find out after the jump. | read more
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April 27, 2011 9:28 PM GMT | Posted by Wierenga, Ryan
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A class action has been filed in Florida against Apple claiming that there is no way to prevent the i-Phone 4 and the 3G enabled i-Pad from tracking their users' locations. (Link To Story)
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April 27, 2011 6:50 PM GMT | Posted by Allison Kirkwood and D. Matthew Allen
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Last week, the Florida Supreme Court handed down the most severe sanction short of disbarment to a South Florida attorney for his role in negotiating a settlement of a putative class action with the City of Miami. The attorney settled the matter on an individual basis. We blog the decision because it contains some important lessons for parties involved in class litigation to ponder. | read more
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April 27, 2011 6:42 PM GMT | Posted by Williams, Amelia
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Recently, the Northern District Court of Florida examined the requirements of Rule 23(b)(2) class certification. Without an Eleventh Circuit precedent to follow, the Court looked to the Fifth Circuit for guidance. Would you like to find out more? | read more
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April 25, 2011 7:40 PM GMT | Posted by Jon Cipriani
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Last month we noted the split between the Third and Fifth Circuit approaches to securities class actions. The Fifth Circuit has held that securities fraud plaintiffs need to prove loss causation to win class certification. The Second, Seventh, and now Third circuits disagree. SCOTUS has granted cert. to resolve the split, and now the ABA has offered a handy "preview" of the case. | read more
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April 20, 2011 5:30 PM GMT | Posted by Adam Koppel
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According to the Seventh Circuit, all the defendant needs to do is make a good faith showing of “plausible” evidence that the stakes exceed the jurisdictional amount in controversy requirement of $5,000,000. | read more
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April 15, 2011 10:33 PM GMT | Posted by Avi Robert Kaufman
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In Jovine v. Abbott Laboratories, Inc., No. 11-CV-80111, 2011 WL 1337204 (S.D. Fla. April 7, 2011), a proposed class action related to the recall of 5,000,000 cans of Similac-brand infant formula, the Southern District of Florida determined whether to remand the case for failure to satisfy the Class Action Fairness Act’s jurisdictional requirements. Specifically, the court considered whether Abbott Laboratories, the manufacturer and distributor of Similac, proved by a preponderance of the evidence that the amount in controversy exceeded CAFA’s $5,000,000 jurisdictional requirement. | read more
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April 12, 2011 1:31 PM GMT | Posted by Katherine Heckert
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Whether ‘tis nobler in the mind to suffer the slings and arrows of outrageous fortune costs, Or to take arms against a sea of troubles (litigation in federal court)… This is the question presented to Brand N. Mansker by Judge James L. Robart of the U.S. District Court for the Western District of Washington. Find out why after the jump. | read more
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April 11, 2011 5:50 PM GMT | Posted by Yolanda Paschal
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Can a putative class representative who voluntarily dismisses his individual claims then appeal a court’s denial of class certification? | read more
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April 11, 2011 1:26 PM GMT | Posted by Williams, Amelia
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100 subcontractors brought a class action lawsuit against UnitedHealth for unpaid work performed in 2007. The Court, however, denied class certification, because there was no “common question” amongst class members. Link To Article | read more
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April 6, 2011 1:47 PM GMT | Posted by Williams, Amelia
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Recently an Alabama United States District Court examined the typicality requirement for class representatives under Rule 23(a)(3). The Court’s decision on whether a named class representative was typical all came down to the swipe of his corporate credit card. Would you like to find out more? | read more
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April 5, 2011 10:38 PM GMT | Posted by Kirkwood, Allison
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The Fifth Circuit considered whether the district court properly denied class certification to a group of individuals who alleged they were denied a title insurance premium discount as mandated by Texas law. | read more
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April 5, 2011 6:22 PM GMT | Posted by Celender, Kate
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On December 15, 2004, a Brenntag facility located in East Point, Georgia released a cloud of glacial acetic acid from a chemical storage tank, causing the subsequent evacuation of nearly 8,000 area residents by authorities. | read more
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April 1, 2011 7:51 PM GMT | Posted by Morande, Dean
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According to the Eleventh Circuit, just about any time when attorney fees would outweigh recovery, and an award of prevailing party attorneys’ fees are not mandatory. | read more
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April 1, 2011 12:59 PM GMT | Posted by Katherine Heckert
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The Tenth Circuit Court of Appeals considered whether a class-action complaint becomes moot upon tender of a Federal Rule of Civil Procedure 68 offer for the full amount of the named Plaintiff's claim where a class action had not yet been certified. Did the court find the tender to be a moot point? Find out after the jump. | read more
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March 31, 2011 8:22 PM GMT | Posted by D. Matthew Allen
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All eyes in the class action world are on the Supreme Court as oral argument in the Wal-Mart case occurred this week. In Dukes v. Wal-Mart, a California district court certified one of the largest class actions in history on behalf of female employees alleging employment discrimination against the nation’s largest retailer, and the Ninth Circuit affirmed en banc in a split opinion. Important issues floating around the case include:
1. What is the standard for establishing Rule 23(a)(2) commonality in an employment discrimination case?
2. Can a district court award damages in the form of back pay when class certification is based on Rule 23(b)(2), which is designed for injunctive and declaratory relief classes?
3. Does the district court engage in rigorous analysis when it permits the plaintiff to make its case that there is classwide discrimination based on statistical sampling evidence rather than individual proof? The plaintiffs’ expert performed a national regression analysis and extrapolated those results to the region and store levels.
4. Can the district court use statistical evidence to fashion a back pay remedy even when individual “paper record cases” may be different than reflected in the formulas comprising the statistical evidence?
On these and other questions, how did the class fare in the Supreme Court at oral argument? | read more
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March 31, 2011 1:05 PM GMT | Posted by Katherine Heckert
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The 9th Circuit in California considered whether the award of 56% of a settlement to attorney's fees met the fair and reasonable standard. Fair enough? Find out what the Judge held after the jump. | read more
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March 29, 2011 8:48 PM GMT | Posted by Ambrose, Jacqueline R.
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Chinese drywall may be defective, but is not inherently dangerous, says one judge. | read more
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March 25, 2011 8:50 PM GMT | Posted by Morande, Dean
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In Fitzpatrick v. General Mills, Inc., No. 10-11064 (11th Cir. Mar. 25, 2011), the plaintiff brought a putative class action against General Mills based on alleged violations of the Florida Deceptive and Unfair Trade Practices Act and breaches of an express warranty. Specifically, the plaintiff asserted that the defendant’s YoPlus yogurt product does not provide the digestive health benefits as asserted.
With regard to the FDUTPA claim, the district court certified a class of “all persons who purchased YoPlus in the State of Florida to obtain its claimed digestive health benefit.” In appealing the class certification decision, General Mills contended that individualized issues predominate over common issues.
The Eleventh Circuit agreed with the district court’s legal analysis positing that individual, subjective reliance is not an element of a FDUTPA claim, and therefore liability under FDUTPA could be determined on a class-wide basis. The Court reversed and remanded the case for reconsideration, however, because the class definition as certified by the district court injected individual reliance into the determination of class membership.
In closing, the Court stated: “While we agree with the legal analysis of the district court, because the definition of the class it certified was in conflict with that analysis, we are uncertain of exactly what class it intended to certify. Consequently, we vacate the order being reviewed and remand the case for further consideration.”
The Court did not, in its opinion, address the provision in FDUTPA requiring a plaintiff to prove that a violation caused a loss. Nor did it address the impact of that provision on whether a class should have been certified.
For what it is worth, Carlton Fields, along with others, represented General Mills in this case. | read more
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March 25, 2011 7:49 PM GMT | Posted by Wierenga, Ryan
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A federal judge has conditionally approved a class action settlement in a case alleging that Kaplan and West Publishing colluded to artificially inflate the price of bar prep courses in California. The settlement is valued at $5.2 million. Link to Article
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March 24, 2011 5:27 PM GMT | Posted by Clark, Johanna
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What is the "relevant market rate" when determining the amount of Class Counsel's attorneys' fees? Is it where the case is filed, or where Class Counsel's office is located? I bet you know the answer. So does Judge Merryday.... | read more
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March 24, 2011 1:15 PM GMT | Posted by Celender, Kate
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Where can deaf Georgians suffering from mental illness go to receive help from the State? | read more
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March 18, 2011 9:04 PM GMT | Posted by Wierenga, Ryan
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Irregular time keeping and vague time entries were enough for a Florida judge to reduce the plaintiff's attorneys' fees from the $4 million requested to $1.6 million. The fees were awarded as part of an insurance class action settlement. Link to Article
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March 15, 2011 6:21 PM GMT | Posted by Morande, Dean
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According to the 11th Circuit, where expert testimony is required to support the elements of class certification, the district court must conduct a full Daubert hearing. | read more
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March 15, 2011 12:57 PM GMT | Posted by Wierenga, Ryan
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Privacy Concerns - A federal judge in California approved a $9.5 million settlement in a class action filed against Sirius XM Radio Inc. The settlement encompasses class members from five of the eleven states alleging that Sirius XM Radio Inc. had recorded their personal telephone calls without authorization. Link to Article
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March 12, 2011 4:58 PM GMT | Posted by Paschal, Yolanda
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The Second Circuit, in In re American Express Merchant’s Litigation, No. 06-1871-cv, 2011 WL 781698 (2d Cir. Mar. 8, 2011), provides an answer but cautions that “each case which presents a question of enforceability of a class action waiver in an arbitration agreement must be considered on its own merits….” | read more
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March 11, 2011 5:50 PM GMT | Posted by Ambrose, Jacqueline
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The Third District Court of Appeals of Florida recently upheld a trial court ruling reigning in an errant arbitrator. How did the arbitrator manage to exceed his own jurisdiction? | read more
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March 4, 2011 9:43 PM GMT | Posted by Roberts, Joshua
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This month, the United States Supreme Court will hear oral argument and decide whether to certify the largest employment discrimination class action in this country’s history. See Wal-Mart Stores, Inc. v. Betty Dukes, et al., No. 10–277, U.S. Sup. In its January 20 brief, the nation’s largest retailer argues that upholding the certification of a class of 1.6 million current and former employees alleging gender discrimination violates Federal Rule of Civil Procedure 23. How does Wal-Mart make this argument and how do Plaintiffs respond? | read more
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March 4, 2011 8:59 PM GMT | Posted by Paschal, Yolanda V.
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What are “stinky fees”? In Ward v. Lance, No. 10 CVS 16553 (N.C. Sup. Ct. Feb. 28, 2011, Order), a North Carolina court explains that these are fees paid “whenever a merger is announced” and a lawyer “with a client holding a small number of shares rushes to file a lawsuit containing class action allegations.” The suit normally is settled after the corporation agrees to provide additional information and to pay some settlement, which includes a “stinky fee” to the plaintiff’s attorney. The Court opined that this is nothing more than an “economically valueless charade” which may discourage future mergers. | read more
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March 4, 2011 2:42 PM GMT | Posted by Cipriani, Jon A.
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Class action waivers and their validity have been a hot topic in the federal courts lately. But in King v. Advance America, Cash Advance Centers, Inc., 2010 WL 681070 (Feb. 28, 2011), the narrow question for the Third Circuit wasn't whether a class waiver was valid, but rather how to remedy a district court's improperly allowing an arbitrator decide that issue.
The class of Pennsylvania residents sued defendants who allegedly offered loans violating state usury and consumer protection laws. Those loans included arbitration and class action waiver provisions that the class challenged as unconscionable. The district court disagreed, staying the litigation "pending arbitration" to proceed "on an individual basis, unless the arbitrator determines otherwise." As all parties agreed, however, subsequent Third Circuit precedent made clear that the validity of a class action waiver must be decided by a court, not an arbitrator-- and, in seemingly reserving that decision for the arbitrator, the district court erred.
The class argued that the district court had punted on the validity issue, and that a remand for a proper determination was in order. The defendants argued that the district court had effectively ruled the class action waiver valid, and that the Third Circuit need only strike the phrase "unless the arbitrator determines otherwise" from the district court's order, enforcing the rest of the order as written. The Third Circuit sided with the class. It concluded that the district court had not determined that the class action waiver was valid, and that its decision to allow arbitration was based on subsequently-undermined Third Circuit precedent. The Third Circuit therefore vacated and remanded for the district court to decide in the first instance whether the class action waiver is valid. | read more
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March 2, 2011 6:17 PM GMT | Posted by Paschal, Yolanda
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The United States District Court for South Carolina recently held that a final judgment approving a class settlement should not be afforded full faith and credit. In Hege v. Aegon USA, No. 8:10-cv-01578-GRA, 2011 WL 206318 (D. S.C. Jan. 21, 2011), class members collaterally attacked a judgment entered by an Arkansas court approving a class settlement. In reviewing whether to bar the claims of the Hege plaintiffs, the court analyzed whether the Arkansas judgment should be afforded full faith and credit. In order for a judgment to receive full faith and credit, the court entering the judgment must have complied with due process requirements. In the instant case, the District Court held that the Arkansas court approving the class settlement failed to comply with due process for two, independently dispositive reasons. First, the notice of proposed class action settlement mailed to the class members was deemed to be “materially misleading” where the notice provided information that was inaccurate under South Carolina law and further misinformed class members of “the value of their rights if they opted out and the relative value of remaining in the settlement.” Second, the District Court held that an antagonistic relationship existed between class counsel and the Hege plaintiffs. Thus, the Hege Plaintiffs did not receive the kind of representation by class counsel as is required by the notions of due process. Accordingly, the Arkansas judgment was not entitled to full faith and credit.
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February 21, 2011 5:36 PM GMT | Posted by Cipriani, Jon A.
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When is a consent decree not a consent decree? The First Circuit's opinion in Hutchinson v. Patrick, 2011 WL 540538 (Feb. 17, 2011), holds that function, not form, provides the answer. The class, Medicaid-eligible individuals with acquired brain injuries, sued the Commonwealth of Massachusetts under the Americans with Disabilities Act. After certification, the parties reached a "final," "comprehensive" settlement, under which Massachusetts would expand programs for individuals with brain injuries, effectively under court supervision. The court entered an order approving the settlement, stating that the parties agreed that the order wasn't a consent decree, and retaining jurisdiction to enforce the agreement. Final judgment was withheld, and the case left open, pending the Commonwealth's compliance. The class then moved for and was granted an attorneys' fee award of nearly $800,000. | read more
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February 15, 2011 4:24 PM GMT | Posted by Calhoun, Christina M.
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The Florida Supreme Court heard oral argument in Pendergast v. Sprint Nextel Corporation on January 10, 2011. In this case, the Eleventh Circuit certified to the Florida high court the question of whether class action waivers in form consumer contracts are unenforceable under the unconscionability doctrine. Interested in how the argument went? | read more
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February 9, 2011 8:39 PM GMT | Posted by Christian, Kathryn
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In the consolidated appeal of Commonwealth Land Title Insurance Company v. Higgins and First American Title Insurance Company v. Raffone, Nos. 1D10-2139, 1D10-2114 (Fla. 1st DCA Feb. 7, 2011), the First District Court of Appeal affirmed the trial court's orders certifying classes of homeowners who alleged they "were not provided a discount title insurance rate, known as the 'reissue rate,' for which they may have been eligible when they refinanced their homes." The class "advocate[d] for an interpretation of Florida law that places the burden completely on the [title insurers] to determine when the reissue rate applied ... That is, if the duty to determine whether the reissue rate applied falls solely on the title insurance companies, then the individual practices of their agents and the circumstances of each transaction become largely irrelevant." The Court ruled that by framing the liability issue in this fashion, it was not an abuse of discretion to have certified the class. It nevertheless cautioned, "If the common question is not resolved as suggested by the appellees, it is unlikely that the class actions will be able to proceed. That is, the individualized nature of the claims will likely predominate under an interpretation of Florida law that places any less than a complete burden on the [title companies]." The court also pointed out it was "rather inefficient" to proceed with certification where "the propriety of certification depends on [the homeowners'] receiving a favorable ruling on the substantive law issue in the merits phase." Carlton Fields represents Commonwealth Land Title Insurance Company in the appeal.
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February 7, 2011 12:27 AM GMT | Posted by Reddy, Kenya
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In McKenzie v. Betts, __ So. 3d __, 2011 WL 309318 (Fla. 4th DCA Feb. 2, 2011), the Fourth District Court of Appeal of Florida ruled that an arbitration agreement's class action waiver violated public policy.
The plaintiffs filed a class action in 2001, alleging that McKenzie Check Advance, under the deceptive guise of a check cashing service, was in reality loaning money to Florida consumers at usurious rates. In 2007, they added a new plaintiff to the action; that plaintiff's contracts with McKenzie included an arbitration agreement with a class action waiver. | read more
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February 7, 2011 8:35 PM GMT | Posted by Huhta, Blaise
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In Dalton vs. Cardworks Servicing, LLC, No. CA 09-00563-CB-C, 2010 WL 5341939 (S.D. Ala. Nov. 19, 2010) the parties – Plaintiff Susi Dalton and Defendant Cardworks Servicing, LLC – came before the court on a joint motion for preliminary approval of class settlement. Dalton had originally filed her complaint on August 28, 2009 alleging that Cardworks had sent her a debt collection letter that violated the Fair Debt Collection Practices Act, 15 U.S.C. §1692 et seq (“FDCPA”) by requiring her to notify the debt collector in writing within 30 days after receiving the notice of debt collection in order to dispute the validity of the debt. Dalton argued that there was no writing requirement in the statute. Dalton sought class certification of her claims. Thereafter in August of 2010 the parties filed an Initial Joint Motion requesting the court to certify a class and preliminarily approve a class settlement. The initial motion and settlement requested an “opt-in” class instead of an “opt-out” class. After hearing, the U.S. Magistrate Judge determined that an “opt-in” class cannot be certified consistent with Fed. R. Civ. P. Rule 23 for various reasons including the fact that an “opt-in” class would not bind class members and would likely lead to multiple new lawsuits arising from the same facts. The Judge found that an “opt-in” class would be contrary to the purposes of a Rule 23 class action. | read more
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January 6, 2011 5:13 PM GMT | Posted by Garcia, Joanna
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In Waithe v. Arrowhead Clinic, Inc., 2010 WL 5463106 (S.D.Ga.), a putative class action removed to federal court by a co-defendant pursuant to the Class Action Fairness Act of 2005 (CAFA), 28 U.S.C. § 1332(d), Plaintiffs filed a motion to remand claiming that jurisdiction was improper because: (1) the amount in controversy did not exceed $5,000,000; (2) the removing defendant had since been dropped from the lawsuit by plaintiffs; (3) the removing defendant was a citizen of Georgia and thus could not seek removal; and (4) the removing defendant filed for removal more than thirty days after he received service of the summons and complaint. Plaintiffs also argued that the Court should remand the case in its discretion, even if removal was proper. The Southern District of Georgia denied Plaintiffs' motion on all grounds. | read more
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January 4, 2011 2:02 PM GMT | Posted by Christian, Kathryn
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In Law Offices of David J. Stern, P.A. et al. v. Loren Banner et al., No. 4D09-3928, 2010 WL 5346669 (Dec. 29, 2010), the Fourth District Court of Appeal affirmed the trial court's certification of a class of Florida borrowers to whom the the Law Offices of David J. Stern, P.A. sent reinstatement letters attempting to collect certain charges the borrowers alleged were unreasonable, excessive or "not currently due and owing," and who either reinstated their mortgages by paying the reinstatement charges or who lost their property from January 18, 2003 through February 19, 2009. The borrowers asserted claims for violations of the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act as a result of charges in the reinstatement letters related to amounts they alleged were claimed for service of process on people identified as "John Doe and Jane Doe, unknown tenants in possession" and "unknown spouse"; costs for title search and/or title examination which exceeded the out of pocket and overhead costs for such work or had not been incurred; and other charges, fees and costs which had not yet been incurred at the time of the reinstatement letters.
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December 17, 2010 12:58 AM GMT | Posted by Reddy, Kenya
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In Farina v. Nokia, Inc., 625 F.3d 97 (10th Cir. 2010), the Third Circuit Court of Appeals affirmed the district court’s ruling that the plaintiff in a consumer class action waived his objection to removal of the action to federal court through his failure to timely file his motion for remand. | read more
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December 16, 2010 6:25 PM GMT | Posted by Morande, Dean
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Despite imposing a default on liability against the defendant for failing to answer, the Southern District of Florida in Ehren v. Moon, Inc., No. 09-21222-Civ, 2010 WL 5014712 (S.D. Fla. Dec. 3, 2010), refused to certify a class, ruling that a class action was not superior to other methods of adjudicating the controversy. Specifically, the court ruled that class treatment was not superior because: (1) no actual damages were sought, and “the aggregated relief could be oppressive in consequence and difficult to justify"; (2) certification could raise “serious constitutional problems implicating the Defendant's Due Process rights”; and, given that FACTA provides for an award of attorneys’ fees, there exists adequate incentives for individual consumers to bring suit. | read more
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December 16, 2010 6:22 PM GMT | Posted by Morande, Dean
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In a companion case to the one we reported on earlier in the week, the Southern District of Florida again denied class status to a healthcare provider asserting that State Farm violated Florida’s No-Fault laws by employing a coding system to improperly reduce reimbursement. DWFII Corp. v. State Farm Mutual Auto. Ins. Co., No. 10-20116-civ-Ungaro (S.D. Fla. Dec. 10, 2010). As in the earlier case, the court ruled that individual issues predominate where, regardless of whether the coding was used, each plaintiff would have to first prove its entitlement to payment. Individualized issues also predominate where each provider must prove it served a demand letter as required by state law, and where State Farm might have a valid “unbundling defense” for using the coding to reduce or deny reimbursements under any particular claim. A Rule 23(b)(2) class was also inappropriate because, under the facts, there was no uniform damages recovery. | read more
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December 15, 2010 3:31 PM GMT | Posted by Christian, Kathryn
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In Philip Morris USA, Inc., et al. v. Scott et al., 131 S.Ct. 1 (Sept. 24, 2010), Justice Scalia, sitting as a single justice of the United States Supreme Court, granted defendant tobacco companies' request for a stay of the execution of a Louisiana court judgment ordering them to pay over $250 million to fund a 10-year smoking cessation program. The plaintiffs brought a class action on behalf of all Louisiana smokers, alleging that the tobacco companies defrauded the class by "distort[ing] the entire body of public knowledge" about tobacco. Although the action alleged was a fraud action requiring proof of reliance, the Louisiana court of appeal held that the reliance element need not be proved insofar as the class sought payment into a fund to benefit the plaintiffs (as opposed to damages), since the tobacco companies distorted the entire body of public knowledge on which the "class as a whole" had relied. Justice Scalia concluded that the consequence of that ruling is that "individual plaintiffs who could not recover had they sued separately can recover only because their claims were aggregated with others' through the procedural device of the class action" and that the "extent to which class treatment may constitutionally reduce the normal requirements of due process is an important question." He concluded that it was "reasonably probable" that certiorari would be granted and "significantly possible" that the judgment would be reversed, and granted the requested stay.
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December 13, 2010 11:18 PM GMT | Posted by Morande, Dean
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The Southern District of Florida in Coastal Neurology v. State Farm Mutual Auto. Ins. Co., No. 10-60354-civ-Ungaro, 2010 WL 4878573 (S.D. Fla. Nov. 30, 2010), refused to certify a class where the plaintiffs must provide proof of entitlement for each individual class member. The plaintiff health care provider claimed that State Farm violated Florida’s No-Fault laws by its use of a coding system to reduce reimbursement of otherwise valid claims. In ruling on plaintiff’s motion for class certification, the court found that, in order to prove a claim, every plaintiff must prove it was entitled to payment in the first place. In other words, “the fact that State Farm may have automatically applied NCCI edits to every bill that each service provider/putative class member submitted does nothing to establish that any individual provider was entitled to a reimbursement on any particular occasion and that a NCCI edit improperly reduced that reimbursement.” From that conclusion, the court found that plaintiff failed Rule 23(b)(3)’s predominance and superiority requirements. The court went on to rule that a Rule 23(b)(2) was also inappropriate, as there could not be a uniform damages recovery. Addressing Rule 23(a) last, the court concluded that, although adequate, the plaintiff’s claims were not typical, as proving its own case would not prove that of the other providers. | read more
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December 7, 2010 4:38 PM GMT | Posted by Christian, Kathryn
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Wal-Mart employees brought a putative class action lawsuit alleging that, as a result of policies and procedures consistent in 3,400 Wal-Mart stores in 41 regions, Wal-Mart discriminates against women in violation of Title VII of the Civil Rights Act of 1964 by paying women less than men in comparable positions and by promoting fewer women than men. The United States District Court for the Northern District of California certified a class of all women with claims for injunctive relief, declaratory relief, and back pay employed by Wal-Mart at any time after December 26, 1998, and created a separate opt-out class for punitive damages claims.
In Dukes v. Wal-Mart Stores, Inc., 603 F.3d 571 (9th Cir. 2010), the Ninth Circuit Court of Appeals affirmed certification of a Rule 23(b)(2) class encompassing all women currently employed by Wal-Mart in a variety of different positions with claims for injunctive relief, declaratory relief and back pay but remanded as to certification of the claims for punitive damages and the claims of putative class members who no longer worked at Wal-Mart when the complaint was filed. The Ninth Circuit noted that the size of the proposed class "should not change the analysis the Supreme Court required in General Telephone Co. of the Southwest v. Falcon, 457 U.S. 147 (1982)" and should not "necessitate that we take an even harder look at the merits . . ."
The United States Supreme Court has agreed to consider the issues of (1) whether claims for monetary relief can be certified under Rule 23(b)(2) and, if so, under what circumstances; and (2) whether the class certification ordered by the Ninth Circuit under Rule 23(b)(2) was consistent with Rule 23(a).
According to an article in the Wall Street Journal, the Supreme Court's decision "will almost certainly affect all sorts of class-action suits, including ones asserting antitrust, securities, and products liability."
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October 25, 2010 6:21 PM GMT | Posted by Huhta, Blaise
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In Wyeth, Inc. v. Blue Cross and Blue Shield of Alabama, 42 So. 3d 1216 (Ala. 2010), the Alabama Supreme Court vacated the trial court’s order granting class certification holding that the plaintiff failed to meet its burden of demonstrating that common questions of law and fact predominate where they had asserted an unjust enrichment claim on behalf of a nationwide class. | read more
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October 18, 2010 11:14 PM GMT | Posted by Shwayri, Rebecca
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In Dealer Computer Services, Inc. v. Dub Herring Ford, No. 09-1848, 2010 WL 4008141 (6th Cir. Oct. 14, 2010), the Sixth Circuit emphasized the importance of relying on a three-factor ripness test in review class arbitration awards. In that case, the arbitration panel issued a partial final class determination award, denying class certification. The plaintiff moved the district court to confirm the class determination award. The district court determined that the arbitration panel's denial of class certification did not pose a likelihood of harm to the plaintiff. The Sixth Circuit affirmed. The three factor ripeness standard required the court to examine (1) the likelihood that the harm alleged by the party would come to pass; (2) the hardship to the parties if judicial relief is denied; and (3) whether the factual record was sufficiently developed. Because the class was not certified, the potential harm to the plaintiff involved in defending against class arbitration would never occur. The Sixth Circuit found that the test articulated by the Supreme Court in Stolt-Nielsen was not materially different from its own ripeness inquiry. The Stolt-Nielsen test focuses on the fitness of the isues for judicial decision and the hardship of withholding judicial consideration.
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October 18, 2010 2:14 PM GMT | Posted by Allen, D. Matthew
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The 11th Circuit’s long-awaited rehearing decision in Cappuccitti v. DirecTV, Inc. was issued last Friday. As we discussed here, in July, a panel of the court created substantial confusion in Eleventh Circuit class action jurisprudence by discovering in the text of the Class Action Fairness Act a requirement that an individual plaintiff have $75,000 in controversy. That same panel has now reversed itself and vacated its July opinion. Cappuccitti v. DirecTV, Inc., -- F.3d --, 2010 WL 4027719 (11th Cir. Oct. 15, 2010). | read more
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October 15, 2010 9:13 PM GMT | Posted by Huhta, Blaise
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In Powell v. AT&T Mobility, LLC, 2010 WL 3943859 (N.D. Ala. Sept. 30, 2010), the United States District Court Northern District of Alabama granted defendant AT&T Mobility’s motion to dismiss and compel arbitration of the plaintiff Kyra Powell’s class action complaint. The Court held that, based on Eleventh Circuit and Alabama Supreme Court precedent, the plaintiff did not meet her burden to show that the terms of service for her AT&T mobile phone (the “Service Agreement”), which included a class action waiver provision, were procedurally and substantively unconscionable. | read more
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October 4, 2010 3:47 PM GMT | Posted by Huhta, Blaise
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In Martin v. Cash Express, Inc., --- So. 3d --- 2010 WL 3797636 (Ala. Sept. 30, 2010), the Supreme Court of Alabama heard an appeal from an order of the Etowah Circuit Court of Alabama dismissing a putative class action against a payday lender Cash Express for lack of standing by the plaintiffs. The Supreme Court of Alabama affirmed the dismissal on the basis that some plaintiffs were judicially estopped from bringing these claims because of nondisclosure of these claims in their prior bankruptcy proceeding and other plaintiffs were barred from bringing these claims based on allowing previous default judgments against them or entering into consent judgments with Cash Express. | read more
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October 1, 2010 8:22 PM GMT | Posted by Reddy, Kenya
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The Eleventh Circuit’s controversial Cappuccitti v. DirecTV decision was recently cited by the United States District Court for the Southern District of West Virginia as an alternative basis for remanding a case to state court in West Virginia v. CVS Pharmacy, 2010 WL 3743876 (S.D. W.Va. Sept. 21, 2010). | read more
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October 1, 2010 8:16 PM GMT | Posted by Reddy, Kenya
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On September 24, 2010, Justice Scalia granted an application for stay of a Louisiana appellate court judgment requiring Philip Morris and several other major tobacco companies to pay $241.5 million to fund a 10-year smoking cessation program for the benefit of the plaintiff class of smokers. Philip Morris USA Inc. v. Scott, __ U.S. __, 2010 WL 3724564 (2010). Justice’s Scalia’s opinion stays the judgment until the United States Supreme Court can act on the tobacco companies’ petition for a writ of certiorari. | read more
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September 24, 2010 1:55 PM GMT | Posted by Allen, D. Matthew
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Wonder how the Eleventh Circuit is dealing with class actions filed in federal court with pending appeals following the controversial decision in Cappuccitti v. DirecTV, Inc.? Perhaps this decision will shed a clue. | read more
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September 23, 2010 8:03 PM GMT | Posted by Huhta, Blaise
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In Downey v. Alfa Insurance Corporation, 2010 WL 3629822 (M.D. Ala. Sept. 9, 2010), the Middle District Court of Alabama dismissed the class plaintiff’s complaint saying that the basis for her standing for declaratory and injunctive relief was “unclear at best.” The plaintiff was granted an opportunity to amend her complaint to attempt to add sufficient detail to establish her standing to bring claims for declaratory and injunctive relief. | read more
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August 6, 2010 3:11 PM GMT | Posted by Garcia, Joanna
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In Loadholt v. Parrish, 2010 WL 2892693 (S.D. Ga. June 23, 2010), Magistrate Judge W. Leon Barfield recommended that a Macon State Prison inmate’s motion for class certification be denied for failure to satisfy either the adequacy of representation or the numerosity requirements of Federal Rule of Civil Procedure 23(a). In his complaint, Plaintiff alleged that various Defendant physicians associated with Georgia's prison system had been deliberately indifferent to his serious medical needs by failing to treat his hepatitis or failing to ensure that he received appropriate treatment for his disease. Plaintiff moved to certify a class of incarcerated Georgia state prisoners who were allegedly similarly not treated for hepatitis. Plaintiff also requested appointment of counsel to represent the class. The Court first noted that because Plaintiff’s motion was filed more than 90 days after he filed his complaint, the Court could simply recommend that it be denied as untimely under the Court’s local rules. Nonetheless, the Court analyzed the substance of Plaintiff’s motion and found that Plaintiff also failed to meet the numerosity and adequacy of representation requirements necessary to maintain a class action under Rule 23. | read more
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July 28, 2010 9:06 PM GMT | Posted by Morande, Dean
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In Canal Ins. Co. v. Gibraltar Budget Plan, Inc., No. 4D09-70 (Fla. 4th DCA July 28, 2010), three premium finance companies filed a class action suit against Canal Insurance Company and Canal Indemnity Company, alleging that they failed to pay interest on late-returned unearned insurance premiums as required by section 627.7283, Florida Statutes. Ultimately, the would-be class representatives were unable to establish numerosity, as the Fourth District was persuaded by “the carrier’s precision-like dissection of the proof in this case.” In reviewing the evidence, the carriers were able to expose the gaps in the evidence connecting them to potential class members’ claims. According to the court, “[w]hen the layers are peeled away, what is left is insufficient proof of numerosity to support the certification of the class.” | read more
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July 28, 2010 2:28 PM GMT | Posted by Christian, Kathryn
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The Los Angeles Times reports that BP has been sued in "at least 250 class action lawsuits" seeking damages "expected to reach into the double-digit billions" arising from the oil rig explosion in the Gulf of Mexico in April. The Los Angeles Times says that the "vast majority" of the suits have been filed by "fisherman, charter operators, restaurants and property owners claiming financial losses after the disaster shut down fisheries and pummeled coastal tourism."
Bingo players in Alabama continue to file class action lawsuits seeking to establish that gambling contracts are void and they are therefore entitled to get back the money they lost playing electronic bingo.
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July 22, 2010 5:21 PM GMT | Posted by Allen, D. Matthew
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What should parties with class actions in federal court do in light of the Eleventh Circuit's bombshell Cappuccitti decision? At this point, I think they should do ... | read more
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July 20, 2010 3:49 PM GMT | Posted by Morande, Dean
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Yesterday, July 19, 2010, a three judge panel of the Eleventh Circuit issued Cappuccitti v. DirecTV, Inc., No. 09-14107 (11th Cir. July 19, 2010), a decision on the requirements of the Class Action Fairness Act of 2005 (“CAFA”) that injected mass confusion in Eleventh Circuit jurisprudence. For the first time, the panel ruled that class actions filed in federal court must satisfy the general diversity requirement that a plaintiff have $75,000 in controversy, along with the specific requirements of CAFA that minimal diversity be satisfied and an aggregate of $5 million for the entire putative class be in controversy. | read more
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July 15, 2010 11:21 PM GMT | Posted by Shwayri, Rebecca
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Two Atlanta law firms that represent Georgians who own property on the Gulf are suing BP for damages from the oil spill. The class action lawsuit was filed in the Northern District of Georgia and asks for compensation for loss of income, property value and enjoyment. This is the first class action suit against BP that limits the class action group to Georgians who own property in Florida.
A federal judge in California has ruled that a monopoly based lawsuit against Apple, Inc. and AT&T can move forward as a class action lawsuit. The plaintiffs take issue with Apple’s practice of locking i-phones so they can only be used on AT&T’s network and Apple’s control over what applications i-phone users can install on their i-phones. The plaintiffs further allege that they were locked into a five-year relationship with AT&T.
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July 13, 2010 3:23 PM GMT | Posted by Walz, David J.
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When we first blogged one month ago about Pretka v. Kolter City Plaza II, Inc., No. 10-11471, 2010 WL 2278358 (11th Cir. June 8, 2010), and its impact on removal practice, we concluded with the advice to defendants to carefully analyze their removal options “until the case law develops further.” Well, we’re still waiting. So far, only one case has even cited Pretka. And that cite, in Rounds v. Genzyme Corp., No. 8:10-cv-1219-T-23AEP, 2010 WL 2612593 (M.D. Fla. June 25, 2010), was only a passing reference. | read more
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June 18, 2010 9:05 PM GMT | Posted by Shwayri, Rebecca
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The Hartford Financial Services Group has agreed to settle a $72.5 million class action lawsuit. The plaintiffs alleged that the Hartford used questionable business practices when paying personal injury and workers’ compensation claims. The average settlement will provide each class member with approximately $3,300 before payment of fees and expenses.
Charter Communications has agreed to settle a wage and hour class action lawsuit for $18 million. The class includes employees who worked in certain field technician positions.
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June 10, 2010 8:36 PM GMT | Posted by Walz, David J.
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Nearly three years ago, the Eleventh Circuit fundamentally changed the removal landscape in Lowery v. Alabama Power Co., 483 F.3d 1184 (11th Cir. 2007). We blogged about that decision and its effects here, here, and here. Without blogging the same ground, Lowery raised the bar for removal by requiring: (1) a clear, unambiguous showing of the factual basis for federal jurisdiction, and (2) that the evidence supporting that basis originates from the plaintiff. Lowery changed removal practice for class actions and individual cases alike. It forced defendants to obtain a factual basis from the plaintiff, usually regarding the amount in controversy and often in the form of discovery responses, before removing any case.
Now, though, in Pretka v. Kolter City Plaza II, Inc., No. 10-11471, 2010 WL 2278358 (11th Cir. June 8, 2010), the court has narrowed Lowery. | read more
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May 21, 2010 10:18 PM GMT | Posted by Shwayri, Rebecca
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A jury has ordered a Novartis AG pharmaceuticals unit to pay $3.4 million to a dozen women in a gender bias lawsuit. In the class action suit, the women alleged that the company discriminated against them in terms of pay, promotion, and pregnancy. The attorney for the plaintiffs asked the court for punitive damages in the amount of $285 million.
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May 21, 2010 6:50 PM GMT | Posted by Reddy, Kenya
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In In re Burlington Northern Santa Fe Railway Co., __ F.3d __, 2010 WL 1980172 (7th Cir. May 19, 2010), the Seventh Circuit Court of Appeals reiterated the “well-established general rule … that jurisdiction is determined at the time of removal, and nothing filed after removal affects jurisdiction.” Id. at *2. | read more
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May 14, 2010 11:16 PM GMT | Posted by Shwayri, Rebecca
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Countrywide Financial has agreed to settle a class action lawsuit for more than $600 million. The New York State Common Retirement Fund and five New York City pension funds claimed that former Countrywide CEO Angelo Mozilo and executives hid from them that the company fueled its growth by allowing underwriting standards to deteriorate. Bank of America bought Countrywide in 2008.
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May 13, 2010 9:42 PM GMT | Posted by Reddy, Kenya
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Last month, the Seventh Circuit became the first circuit court to rule on the question of whether a district court must conclusively rule on the admissibility of an expert opinion prior to class certification when that opinion is critical to the class certification decision. In American Honda Motor Co., Inc. v. Allen, 600 F.3d 813 (7th Cir. Apr. 7, 2010), the court answered in the affirmative, thereby vacating the district court’s order granting class certification. | read more
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May 6, 2010 1:30 AM GMT | Posted by Shwayri, Rebecca
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A class action lawsuit has been filed against British Petroleum by Louisiana fishermen, shrimpers, and commercial boaters who claim that the Gulf oil spill has harmed their livelihood. The suit also names Haliburton Energy Services, Inc. and Cameron International Corp. as defendants. Haliburton was responsible for cementing operations at the well and well cap. The plaintiffs allege that Haliburton was negligent in performing that work. Cameron manufactured the rig’s blow out preventers that could have prevented the oil spill.
The Hartford intends to settle a class action lawsuit alleging that the company kept millions of claims of settlement money that should have been paid to victims. The Hartford would like to pay $47 million to settle the case. The settlement is pending approval in federal court.
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May 5, 2010 11:20 AM GMT | Posted by Christian, Kathryn
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In Baillargeon v. Sewell, No. 2D08-3828, 2010 WL 1727842 (Fla. 2d DCA Apr. 30, 2010), class representatives filed a claim in probate proceeding in Florida state court on behalf of themselves and other members of the class of plaintiffs who brought a federal class action against the decedent before he died. In the federal class action, the class alleged the decedent violated federal securities laws and the Interstate Land Sales Full Disclosure Act through his involvement in a lease-to-own investment scheme whereby preleased houses would be sold to investors, who expected above-market returns when the renters purchased the homes. The class also asserted several common law claims.
In the probate proceeding, the personal representative moved to strike the class representatives' claim on behalf of the class members, arguing that under the Florida Probate Code each class member had to file his or her own claim. The trial court denied the personal representative's motion to strike the class members' claims, holding that (1) the class members did not have to file claims because the federal class action was pending at the time of the decedent's death; and (2) the class representatives could file class claims on behalf of the class in the probate proceeding. The Second District Court of Appeal rejected the trial court's reasoning, holding that the class members did have to file their own claims and concluding that "it does not seem unfair to us to require the individual class claimants to take the relatively simple step of filing a statement of claim with the probate court in order to preserve their claims against the Decedent."
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April 30, 2010 11:05 PM GMT | Posted by Shwayri, Rebecca
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In a sharply divided ruling, the U.S. Court of Appeals for the Ninth Circuit ruled that a massive class action lawsuit against Wal-Mart alleging gender discrimination over pay for female workers can proceed to trial. The appeals court upheld a lower court ruling allowing the lawsuit to move forward as a class action. Attorneys for the plaintiffs contend that the class contains more than one million women.
The U.S. Supreme Court has said that investors who lost millions on the drug Vioxx could sue Merck over whether the investors were provided with enough information about the drug’s risks before it was withdrawn from the market. The securities class action lawsuit will now move forward in federal court.
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April 27, 2010 9:41 PM GMT | Posted by Reddy, Kenya
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The United States Supreme Court today issued a ruling that is sure to have a far-reaching impact on the future of class arbitration. In Stolt-Nielsen S.A., et al. v. AnimalFeeds International Corp., No. 08-1198, 2010 WL 1655826 (2010), the Court held in a 5-3 decision that imposing class arbitration on parties who have not consented to it is inconsistent with the Federal Arbitration Act (FAA), 9 U.S.C. § 1 et seq. | read more
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April 23, 2010 10:56 PM GMT | Posted by Shwayri, Rebecca
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Charles Schwab has agreed to pay $200 million to resolve a federal class action lawsuit filed by investors who claim that the company misled them regarding the safety of mortgage-backed securities. If the settlement is approved, it would result in a retroactive charge that would eliminate the company’s first quarter profit.
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April 16, 2010 11:28 PM GMT | Posted by Shwayri, Rebecca
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A panel of federal judges has chosen a Southern California federal court as the location for the consolidation of dozens of potential class action lawsuits filed against Toyota in the wake of its recall of millions of vehicles. The potential class action cases seek damages for losses in the vehicles’ value or damages arising out of sudden acceleration of the vehicles.
The maker of E-Ferol, an intravenous vitamin E supplement marketed for premature babies, has been ordered to pay $110 million to settle a class action case. The drug was responsible for killing at least 38 babies in the 1980s.
Verizon Wireless has been sued in a class action lawsuit alleging that the cell phone service provider tacked on $1.99 internet usage fees even when the user’s cell phone was turned off or when the user accidentally launched the browser.
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April 9, 2010 10:51 PM GMT | Posted by Shwayri, Rebecca
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The trial of a $200 million gender discrimination claim against Novartis Pharmaceutical began this week. The 5,600 plaintiff class claims that the company actively discriminated against women by discouraging pregnancies and ignoring complaints of sexual harassment.
The American Society of Media Photographers and other groups representing visual artists plan to file a class action lawsuit against Google, claiming that Google’s efforts to digitize millions of books from libraries amount to infringement of their copyrights.
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April 8, 2010 10:23 PM GMT | Posted by Reddy, Kenya
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Last week, in Shady Grove Orthopedic Associates, P. A. v. Allstate Insurance Co., ___ S.Ct. ___, 2010 WL 1222272 (March 31, 2010), the United States Supreme Court held that a state law prohibiting a particular type of class action does not apply in a federal court sitting in diversity. | read more
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April 8, 2010 12:43 PM GMT | Posted by Allen, D. Matthew
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Is an absent class member a party to a certified class action? What about if the class is a defendant's class and the plaintiff expects to bind the defendant class to a judgment? What rights to absent class members have to get involved in the litigation? Florida's Second District Court of Appeal grappled with these questions in Addison v. City of Tampa, -- So. 2d --, 2010 WL 1328939 (Fla. 2d DCA April 7, 2010). | read more
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March 26, 2010 3:40 PM GMT | Posted by Shwayri, Rebecca
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Three proposed class action lawsuits have been filed against Toyota, claiming that the company gave false initial assurances that the problem with its cars was a simple floor mat issue, helping prop us the stock price. The plaintiffs claim that Toyota spread misleading information through press releases, conference calls, and TV interviews.
A San Jose Judge has approved a $9.5 million class action settlement over Facebook’s program Beacon that published what users were buying. Facebook also agreed to fund a digital trust fund that will issue $6 million in grants to organizations that study online privacy.
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March 22, 2010 10:06 PM GMT | Posted by Shwayri, Rebecca
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A lawsuit seeking class action status has been filed over Coca-Cola’s intended takeover of Coca-Cola Enterprises’ North American bottling operations. The plaintiff claims that the takeover would unfairly compensate the shareholders of Coca-Cola Enterprise. The lawsuit seeks damages and a court order blocking the plan.
Several small business owners have sued Yelp, a popular website that allows consumers to post opinions about businesses and restaurants, claiming that they have been pressured to advertise on Yelp in exchange for getting negative reviews deleted. At least three lawsuits seeking class action status have been filed against the companies.
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February 27, 2010 8:25 PM GMT | Posted by Shwayri, Rebecca
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Plaintiffs have filed a lawsuit against Delta Airlines and AirTran, alleging that the airlines colluded to charge customers a fee for checking bags. The plaintiffs allege that AirTran officials used a quarterly conference call with industry analysts in October 2008 as an invitation to collude on the imposition of a first bag fee. The plaintiffs hope that the lawsuit will be certified as a class action.
Plaintiffs have filed lawsuits against Bank of America and Wells Fargo, claiming that the companies did not honor agreements to make their temporary loan modifications permanent through the U.S. Treasury’s Home Affordable Modification Program. Plaintiffs hope to achieve class action status for their suits.
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February 25, 2010 1:38 PM GMT | Posted by Allen, D. Matthew
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Class arbitration is a hot area these days. Can a plaintiff who failed to seek a class action in the initial complaint seize the golden apple and seek class arbitration after the defendant moves to compel arbitration of the individual claim? Read this case and find out. | read more
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February 17, 2010 3:21 PM GMT | Posted by Garcia, Joanna
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In Heng et al. v. Donald et al., 2010 WL 497347 (M.D.Ga.), Plaintiffs sought class certification on behalf of "all past and present inmates at the Valdosta State Prison and at other Georgia prisons who have been subjected to or may be subjected to excessive force, summary punishment, or premeditated violence by being beaten while restrained by CERT Team Officers at Valdosta State Prison and by CERT Team Officers at other Georgia prisons in violation of the United States Constitutions, laws and treaties, and the Georgia Constitution and laws." The Court, adopting the Magistrate Judge's recommendation, agreed that Plaintiffs did not meet the commonality and typicality requirements of Rule 23(a). | read more
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February 12, 2010 3:46 PM GMT | Posted by Shwayri, Rebecca
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A Northeastern professor aims to lead a class action lawsuit against Toyota related to Toyota’s recall of millions of vehicles for unintended acceleration. The Northeastern law professor, P. Tim Howard, is leading a consortium of 22 law firms in 16 states. The heart of the case concerns the fact that Toyota owners have seen the value of their vehicles plummet and have lost the use of their vehicles for significant periods of time.
A Fort Worth federal judge has dismissed a class action lawsuit against American Airlines. The plaintiffs sought damages for American’s action of allegedly stranding thousands of passengers in December 2006. The judge agreed with American’s motion to dismiss because the plaintiffs did not file suit within the statute of limitations.
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February 10, 2010 7:07 PM GMT | Posted by Garcia, Joanna
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In a matter of first impression, the Court of Appeals of Georgia held, in Fuller v. Heartwood 11, LLC et al., that the Georgia class action statute places a shared obligation upon the litigants and the court to ensure that the question of class certification is timely resolved. The Court further held that the trial court's failure to engage in analysis to determine whether property owners' delay in seeking certification resulted in actual prejudice to lien holders, or to make factual findings before denying owners' motion for class certification, required remand. | read more
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January 31, 2010 1:30 AM GMT | Posted by Shwayri, Rebecca
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Staples, Inc. will pay $42 million to settle a dozen class action lawsuits where the plaintiffs claimed that the company misclassified its assistant store managers as exempt from overtime to avoid paying extra wages. The settlement resolves claims dating back to 2002.
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January 23, 2010 1:18 PM GMT | Posted by Christian, Kathryn
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A group of seventeen major networks and production studios, as well as talent agencies, settled a class action lawsuit filed against them by television writers alleging that the companies discriminated against the writers due to their age.
An Xbox user filed a class action lawsuit against Microsoft alleging that Microsoft wrongfully failed to provide the goods and services he paid for with "Microsoft Points," which allow Xbox users to purchase games and other downloadable media from the Xbox Live Marketplace.
Residents living near fraternities at University of California at Berkeley filed a class action lawsuit seeking to require the fraternities to have live-in adult supervisors to curb alleged alcohol abuse, littering and noise violations.
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January 13, 2010 12:28 AM GMT | Posted by Shwayri, Rebecca
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A class action lawsuit has been filed by AT&T customers who use iPhones, Blackberrys, and Smart Phones to access the internet. The plaintiffs claim that they are being taxed illegally and should receive millions of dollars in refunds. The federal Internet Tax Freedom Act prevents state and local governments from imposing taxes on those who use their phones to surf the web. The plaintiffs allege that thousands of Floridians have been improperly billed.
Aurora Health Care, a Wisconsin healthcare provider, has been sued in a class action case by several plaintiffs who claim that the company violated their privacy when it disclosed their personal medical information in bankruptcy court. The plaintiffs are seeking $25,000 in damages for each person whose private information was revealed.
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January 5, 2010 10:00 PM GMT | Posted by Morande, Dean
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In Pendergast v. Sprint Nextel Corporation, No. 09-10612, 2010 WL 6745 (11th Cir. Jan. 4, 2010), the Eleventh Circuit had before it the issue of whether the class action waiver in the plaintiff’s wireless service agreement is procedurally and substantively unconscionable or void for other reasons. Finding Florida law unclear on the issue, the Court certified the following questions to the Florida Supreme Court: (1) Must Florida courts evaluate both procedural and substantive unconscionability simultaneously in a balancing or sliding scale approach, or may courts consider either procedural or substantive unconscion-ability independently and conclude their analysis if either one is lacking? (2) Is the class action waiver provision in Plaintiff's contract with Sprint procedurally unconscionable under Florida law? (3) Is the class action waiver provision in Plaintiff's contract with Sprint substantively unconscionable under Florida law? (4) Is the class action waiver provision in Plaintiff's contract with Sprint void under Florida law for any other reason? | read more
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January 1, 2010 8:42 PM GMT | Posted by Christian, Kathryn
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In Banner Supply Co. v. Harrell, 2009 WL 4927912 (Fla. 3d DCA Dec. 23, 2009), Florida's Third District Court of Appeal affirmed the trial court's ruling denying the defendant's motion to abate the proceedings pursuant to Chapter 558, Florida Statutes, which relates to litigation involving construction defects. The plaintiffs initially filed a class action lawsuit against the defendant for personal injury allegedly sustained due to alleged defective drywall imported from China. At the time they filed their initial complaint, the plaintiffs provided a Chapter 558 notice, but the personal injury claims in that complaint were not subject to Chapter 558. The plaintiffs later filed an amended complaint asserting a claim for property damage, and the defendant filed a motion to abate, arguing that the plaintiffs had not complied with the statutory requirements of notice and an opportunity to inspect under Chapter 558. The court held that abatement would have been futile because the required sixty days set forth in Chapter 558 had already passed by the time the hearing on the defendant's motion to abate was heard. The court did not reach the issue of whether Chapter 558 applied to the case.
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January 1, 2010 7:56 PM GMT | Posted by Christian, Kathryn
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In Lowery v. Alabama Power Company, 483 F.3d 1184 (11th Cir. 2007), the Eleventh Circuit interpreted the $5 million amount in controversy requirement in the Class Action Fairness Act, affirming the district court's decision to grant a motion for remand filed by a class of homeowners alleging that several companies caused personal injury and property damage by discharging pollutants into the air and groundwater. After being added as a defendant to the case in an amended complaint, one company attempted to remove the case to federal court, relying on allegations in the amended complaint concerning the number of plaintiffs and the type of harm they suffered, as well as specific damages allegations in a prior complaint. The company estimated that each of the 400 plaintiffs needed to seek only $12,500 to reach the $5 million amount in controversy and argued that $12,500 was a low estimate for the amount of damages claimed by each class member, in light of the nature of the claimed bodily injury and property damage. The court rejected this calculation, reasoning that "we fail to see how we can justify a conclusion that the per-plaintiff recovery will exceed even so low a total" and that to reach such a conclusion the court would have to "engage in impermissible speculation." The court concluded that the amended complaint alone--which did not allege a specific amount of damages--could not form the basis for removal.
A recent class action decision from the Southern District of Ohio illustrates the difficulty now facing post-Lowery defendants. Following the approach suggested in Lowery, the defendants in Curry v. Applebee's International, Inc., 2009 WL 4975274 (S.D. Ohio Nov. 17, 2009)--faced with a complaint that did not specifically allege the amount of damages sought by the plaintiff class of purchasers of menu items whose nutritional information was allegedly misrepresented--dutifully waited to receive evidence regarding the amount of damages claimed before attempting to remove the case. Upon receipt of interrogatory responses indicating that the plaintiff class was seeking the full value of the menu items purchased at an average value of $7 per item, the defendants attempted to remove the case. The court held that the defendants should have removed the case sooner, upon receipt of a settlement demand requesting compensation in the amount of 5% of the items sold at an average price of $7 per item, because the settlement demand should have indicated to the defendants that the plaintiff class was seeking recovery based upon the value of the menu items purchased. In a footnote, the court went one step farther, stating that because defendants had knowledge of their own sales figures related to the menu items at issue, the case may have been removable as soon as the complaint was filed.
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December 29, 2009 8:38 PM GMT | Posted by Driskell, Fentrice
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In Hess Corp. v. Grillasca, No. 2D09-1338, 2009 WL 4931668 (Fla. 2d DCA Dec. 23, 2009), customers of Hess Corporation sued the company for holds allegedly placed on funds in their bank accounts in certain circumstances when using debit cards to pay for gas. The trial court was persuaded that the plaintiffs satisfied the requirements for class certification, but Florida’s Second District Court of Appeal was not. Read on to learn more about the arguments that carried the day with the appellate court. | read more
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December 28, 2009 4:01 PM GMT | Posted by Morande, Dean
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In Kelecseny v. Chevron, U.S.A., Inc., No. 08-61294-civ, 2009 WL 4262603 (S.D. Fla. Nov. 25, 2009), the plaintiff sought to certify a damages class and an injunctive relief class based on alleged damages resulting from the use of gasoline containing ethanol (so-called “E10”) in his boat. In his damages class, the plaintiff relied on a market share theory of negligence, under which all gasoline makers who sell E10 in the state of Florida would be liable. The court determined that such a class fails almost all the Rule 23 factors, beginning with a finding that the class itself is not adequately ascertainable because the court would have to undertake individualized inquires as to whether the class members even used E10. Numerosity was not met for essentially the same reason. On the typicality element, the court noted that it found no case in which market share liability had been applied in a class action. Applying that theory to an entire state—as the plaintiff sought here—was “untenable,” given that use of market share liability requires using the narrowest possible geographic market. The court also found problems with the predominance element based on individualized issues related to causation, comparative fault, and using the market share liability theory. The plaintiff’s injunctive relief class, which sought that the gasoline makers be required to post warnings regarding the use of E10 in boats, fared no better. In reviewing Eleventh Circuit precedent, the court found it “impossible” for a class ever to be certified under a failure to warn scenario. According to the court, no plaintiff could have standing because, by the time of certification, he would necessarily be aware of the problem. | read more
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December 28, 2009 2:49 PM GMT | Posted by Morande, Dean
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In an unpublished opinion, the Eleventh Circuit refused to disturb the decision of the district court (N.D. Ga.) denying the plaintiffs’ motion to certify breach of contract claims and claims under the Migrant and Seasonable Agricultural Workers Protection Act. According to the Court, the lower court did not abuse its discretion in determining that individualized proof would be necessary as to each individual’s earnings and the time worked, thereby making certification improper under Rule 23(b)(3). The district court did certify a collective action under the Fair Labor Standards Act, though that decision was not the subject of this appeal. Luna v. Del Monte Fresh Produce (Se.), No. 09-12464 (11th Cir. Dec. 3, 2009). | read more
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December 18, 2009 11:21 PM GMT | Posted by Shwayri, Rebecca
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Two units of AT&T, Inc. have been sued in class action cases where the plaintiffs allege that they were misclassified as exempt from hourly wage laws and did not receive the overtime pay they were due. One suit was filed against BellSouth Communications, Inc. in U.S. District Court in Atlanta. A similar suit was filed in federal court in San Francisco. Both suits seek $500 million in damages.
Three Massachusetts residents have filed a class action lawsuit against CVS. The plaintiffs accuse the drugstore chain of falsely claiming that its AirShield effervescent dietary supplement could prevent colds.
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December 15, 2009 4:32 PM GMT | Posted by Allen, D. Matthew
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Courts and commentators have long been concerned with holdout problems in the law, including a holdout problem in class action litigation known as objector “blackmail.” Brian Fitzpatrick, Assistant Professor of Law at Vanderbilt University Law School, recently published an article entitled “The End of Objector Blackmail?” focusing on class action objectors who try to blackmail class counsel by holding up settlements on appeal. | read more
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December 11, 2009 4:45 PM GMT | Posted by Shwayri, Rebecca
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The United States Government has agreed to pay $3.4 billion to settle the Indian Trust Fund lawsuit. The suit arose from a system dating back to 1887 when Congress divided tribal lands into parcels. The parcels were assigned to individual American Indians while the remaining parcels were sold. The Interior Department manages 56 million acres of Indian Trust land. The Government handles leases on the land and distributes revenue to the American Indians. In 2009, the Government collected $298 million for 384,000 accounts. In the class action suit, the plaintiffs accused the Government of mismanaging the funds. The plaintiffs allege that they are owed far more than what they had been paid. The settlement of the Indian Trust Fund lawsuit represents an end to one of the largest and most complicated class action lawsuits in U.S. history.
A lawsuit against AT&T has been certified as a class action. The plaintiffs allege that the company could not match the speeds promised in its DSL campaign.
A class action lawsuit has been filed against Denver-based Qwest for failing to live up to its “Price for Life” guarantee on high speed internet service. The plaintiff alleges that Qwest increased the cost of his broadband service even though he signed up for the “Price for Life” promotion.
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December 3, 2009 12:43 AM GMT | Posted by Shwayri, Rebecca
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Three retirees have filed a lawsuit seeking class action status against Verizon. The plaintiffs accuse Verizon of improperly transferring retirees out of Verizon’s pension plan when the companies spun off yellow pages publisher Idearc Inc. in 2006. Idearc has since gone into bankruptcy, and the retirees state that their benefits have been cut.
A class action lawsuit has been filed against Toyota to correct sudden unintended acceleration in Toyota and Lexus vehicles. Toyota has laid the blame on its floor mats and launched a recall of four million vehicles.
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November 25, 2009 2:55 PM GMT | Posted by Shwayri, Rebecca
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Class action lawsuits stemming from banks’ overdraft practices have sprung up across the United States. Complaints against eight banks—including Bank of America, Citibank, JP Morgan Chase, Wachovia, and Wells Fargo—are being consolidated into a single action in the U.S. District Court for the Southern District of Florida. The plaintiffs allege that banks are signing up customers for overdraft protection without their knowledge, realigning transactions to maximize fees, and giving debit card users no warnings when they are overdrawn.
Seven Philadelphia area health systems were sued in a class action case by employees who allege that they were forced to work during their lunch breaks and were not compensated for their work. Federal and state law requires that hourly workers be paid for all time they are working.
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November 20, 2009 11:56 PM GMT | Posted by Shwayri, Rebecca
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Marsh & McLennan, one of the world’s largest insurance brokers, has agreed to pay $435 million to settle class action shareholder lawsuits. The plaintiffs have alleged bid-rigging and price-fixing by the company’s insurance brokerage unit. Marsh & McLennan has not admitted wrongdoing.
Three shareholders have filed lawsuits against Burlington Northern Sante Fe Corporation after the company announced that it had agreed to be acquired by billionaire investor Warren Buffet. The plaintiffs, who seek class action status for their lawsuits, allege that Burlington’s management shortchanged stockholders, rushed into a deal for their own benefit, and failed to get the highest price.
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November 13, 2009 12:12 AM GMT | Posted by Shwayri, Rebecca
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Plaintiffs are attempting to sue Pfizer, Inc. in a class action case in which Pfizer allegedly concealed evidence that the epilepsy drug Neurotonin did not work for unapproved uses including nerve pain, migraines, and bipolar disorder.
Judges overseeing at least 23 auction rate class action cases have dismissed the cases in recent weeks. Auction rate securities were once peddled as safe by Wall Street. Brokerage firms are refusing to allow their customers to redeem their securities. Filing an arbitration case against the brokerage firm may be more promising than filing a class action suit.
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November 5, 2009 12:01 AM GMT | Posted by Shwayri, Rebecca
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Wal-Mart has agreed to pay up to $85 million to settle a class action lawsuit covering 39 class actions in several states. The workers alleged that Wal-Mart prohibited them from taking breaks, failed to pay overtime, or altered their time cards.
In Orange County, California, the toll road agencies have agreed to waive $41 million in commuter penalties and pay $1.4 million in restitution to settle a class action lawsuit brought on behalf of people who claimed they were charged excessive penalties for toll violations.
Adams Golf has settled a stockholder class action lawsuit filed in June 1999. The lawsuit involves allegations that Adams Golf’s initial public offering prospectus was false and misleading. The settlement provides for payment to the class of $16.5 million of which Adams Golf will contribute $5 million.
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October 28, 2009 5:25 PM GMT | Posted by Shwayri, Rebecca
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A federal judge is stepping in to end the stalemate in two class action lawsuits in state court against Louisiana Citizens Property Insurance Corp. The Magistrate Judge invited the Insurance Commissioner and the attorneys to convene in federal court. Because neither court has primacy over the other and because the rival cases have spawned appeals, no money has been distributed to policy holders from claims arising out of the 2005 hurricanes.
A California homeowner has filed a class action lawsuit against the Pulte Home Corporation, alleging that Pulte engaged in a fraudulent scheme to prop up sales and home prices through control of the sales process. The plaintiff alleges that Pulte’s business model provides one-stop-shopping for home buyers and that the company controls sales, financing, ancillary settlement services, and appraisals. The plaintiff alleges that Pulte lured unqualified buyers by promising them large discounts.
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October 23, 2009 5:09 PM GMT | Posted by Christian, Kathryn
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The law firm Coughlin Stoia Geller Rudman & Robbins LLP filed a putative securities class action on behalf of purchasers of Advanta Corp. Class A and/or Class B common stock between October 31, 2006 and November 27, 2007, alleging that Advanta issued materially false and misleading statements by failing to disclose the impact of the economic environment and credit trends on its business and failed to adequately and timely record losses for its impaired loans and customer delinquencies. Union-based pension funds that filed a putative class action against Freddie Mac are challenging in court the company's position that "secrecy agreements" prohibit former employees from discussing with them the allegations that Freddie Mac executives defrauded investors by concealing the company's exposure to high-risk mortgages, its losses, and its inadequate capital position. Under the agreements, former employees are permitted to answer questions from government officials related to criminal cases or regulatory proceedings. But, barring a court order, the former employees are prohibited from talking with anyone involved in a civil lawsuit against the company.
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October 23, 2009 1:59 PM GMT | Posted by Christian, Kathryn
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This is a follow up to my June 9, 2009 post about climate change class actions. In that post, I discussed a study by Zurich-based reinsurer Swiss Re warning that climate change class actions "could be a significant issue" in the next couple of years and comparing climate change class actions to asbestos litigation. Swiss Re's predictions may be right. | read more
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October 21, 2009 1:51 PM GMT | Posted by Christian, Kathryn
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On Monday, bank customers filed a putative class action in the Southern District of Florida against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank seeking restitution as well as actual and punitive damages resulting from the banks' overdraft fee policies. Lead plaintiffs' counsel Bruce Rogow commented in a press release that "[c]harging a $35 overdraft fee when a college student uses her debit card to buy a cup of coffee is unconscionable."
After an appellate decision finding that passenger fees charged by the Bridgeport Port Authority to ferry passengers since 1993 were unconstitutional, a putative class action lawsuit has been filed against the Bridgeport Port Authority by passengers seeking a refund of the passenger fees they paid.
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October 20, 2009 3:18 PM GMT | Posted by Christian, Kathryn
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Aerosmith will play a concert tonight in Hawaii to settle class action claims filed by disappointed fans who sued Aerosmith after it cancelled a 2007 concert in Hawaii. The fans alleged that the concert cancellation cost them between $500,000 and $3 million in travel and other expenses.
A class action lawsuit claiming $1 billion in damages has been filed against SoHo nightclub Greenhouse. The lawsuit alleges that the club denied access to people who were invited to the club to celebrate author Teri Woods' new book because of their race.
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October 16, 2009 4:01 PM GMT | Posted by Morande, Dean
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Some members of the Court felt compelled in DTD Enterprises, Inc. v. Wells, No. 08-1407, 2009 WL 3255157 (Oct. 13, 2009), to note that the New Jersey court’s imposition of class notice costs on the defendant may result in a denial of due process where the determination was made entirely on the court’s finding that the plaintiff could not afford the cost, but the defendant could. The Court was also concerned that no consideration was given to the underlying merit of the suit. Nonetheless, the Court denied certiorari on the grounds that the order is interlocutory and the petitioner had filed for bankruptcy. | read more
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October 16, 2009 2:53 PM GMT | Posted by Christian, Kathryn
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In In re HealthSouth Corporation Securities Litigation, Nos. CV-03-BE-1500-S, CV-03-BE-1501-S, CV-03-BE-1502-S, 2009 WL 3152226 (N.D. Ala. Sept. 30, 2009), the Northern District of Alabama certified a class of HealthSouth bond purchasers, finding that the bondholders' claims under Sections 11 and 15 of the Securities Act and Sections 10(b) and 20(a) of the Exchange Act represented a "prototypical securities class action," although the court excluded from the class definition for the Section 11 claim bondholders whose purchases were made before the registration statement at issue was filed. The court rejected the defendants' argument that the bondholders were not entitled to a presumption of reliance and therefore could not satisfy the predominance requirement of Rule 23(b)(3).
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October 16, 2009 2:52 PM GMT | Posted by Driskell, Fentrice
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No. The Private Securities Litigation Fraud Act, which provides for the stay of all discovery and other proceedings during the pendency of a motion to dismiss, does not apply to actions in which plaintiffs allege only state law claims. | read more
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October 16, 2009 2:51 PM GMT | Posted by Driskell, Fentrice
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No. In Nicholas v. DWS Investments Distributors, Inc., No. 6:09-cv-565-Orl-31DAB, 2009 WL 1444419 (M.D. Fla. May 21, 2009), the plaintiffs attempted to bring a class action based on the ground that a defendant investment distributor repeatedly paid accounts of deceased persons to those not entitled to payment. The court ruled that despite the plaintiffs’ contention as to why they were entitled to class relief, the plaintiffs failed to plead facts sufficient to comply with the requirements of Rule 23. The court dismissed the plaintiffs’ class action claim on those grounds, but granted plaintiffs leave to amend. | read more
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October 15, 2009 2:16 PM GMT | Posted by Driskell, Fentrice
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In Crawley v. Paskert-Johnson Co., No. 8:07-cv-1789-T-23TGW, 2008 WL 4793650 (M.D. Fla. Nov. 3, 2008), the Court ruled that pro se plaintiffs cannot adequately represent a class. | read more
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October 14, 2009 11:44 PM GMT | Posted by Shwayri, Rebecca
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Yahoo has reached a settlement in the pay-per-click class action lawsuit. In that case, the plaintiffs allege that they contracted for targeted ad placement through two products and that Yahoo breached its contract with customers by allowing Yahoo ads to be displayed in spyware, domain name parking sites, and pop ups. The claims included breach of contract, unjust enrichment, misrepresentation, civil conspiracy, and unfair business practices. Yahoo has agreed to implement a new filtering option for ads and to make modifications to the way it handles disclosures and click fraud investigations.
Zipcar, Inc., a self-service car rental company that rents cars by the hour, has been sued for charging excessive fees to consumers. The plaintiffs seek to make the case a class action proceeding. The lawsuit was filed in federal court in Boston and alleges that there were a number of excessive fees charged to consumers including phone fees, late fees, and inactivity fees.
A federal judge has thrown out a class action lawsuit against Disney brought by three disabled persons who were upset they could not ride their personal segways in the Walt Disney World theme parks. The judge also rejected a proposed settlement which would have permitted Disney to continue banning the two wheeled segways in exchange for deploying four-wheeled scooters for disabled guests to use. The settlement also included paying the plaintiffs’ legal fees, and giving the plaintiffs $4,000 each towards future Disney vacations.
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October 14, 2009 7:05 PM GMT | Posted by Reddy, Kenya
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Supreme Court Indicates that Requiring Defendant to Pay Costs of Class Notification Without a Hearing is a Denial of Due Process – In DTD Enterprises, Inc. v. Wells, No. 08-1407, 2009 WL 3255157 (U.S. Oct. 13, 2009), the United States Supreme Court denied a petition for writ of certiorari filed by DTD Enterprises, Inc., a commercial dating-referral service. DTD initially filed a contract action against one of its customers, Janice Wells, alleging that Wells refused to make certain payments due under her contract with DTD. Wells, in turn, brought a class action against DTD. The trial court certified the class and ordered DTD to bear all the costs of class notification because Wells could not afford to pay those costs herself. Justice Kennedy, joined by Chief Justice Roberts and Justice Sotomayor, wrote a statement regarding the denial of certiorari. In the statement, Justice Kennedy acknowledged that the denial of certiorari was appropriate because (1) the petition was interlocutory, given that the New Jersey appellate courts had denied DTD leave to appeal the trial court’s actions, and (2) the action fell within the scope of an automatic stay entered when DTD filed for bankruptcy. | read more
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October 7, 2009 1:23 PM GMT | Posted by Garcia, Joanna
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Are "preliminary" motions for class certification allowed? According to the the Middle District of George, the answer is "no". In Jones v. Bank of America Corporation, --- F.3d ---, 2009 WL 3161696 (M.D.Ga), the Court held that such a "preliminary" motion is procedurally improper and that the statute upon which Plaintiffs relied upon in their "preliminary" motion for class certification did "not even contain the word 'preliminary.'" | read more
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October 6, 2009 11:56 PM GMT | Posted by Shwayri, Rebecca
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Customers have sued AT&T and Apple over a glitch in the iPhone. The customers allege that they were led to believe that the iPhone had multimedia messaging services which included the ability to send and receive pictures. This service only became available at the end of September 2009 when many customers believed that the service would be available much earlier. The customers have filed suit in nine states. The suits seek to become class action cases against Apple and AT&T.
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October 2, 2009 9:25 AM GMT | Posted by Christian, Kathryn
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Residents of St. Petersburg, Florida filed a class action lawsuit against Raytheon Corporation alleging that the company knowingly polluted the Azalea neighborhood with industrial waste, lowering the residents' property values. The complaint also alleges that Raytheon engaged in a concerted effort to misrepresent and withhold information regarding the extent of the contamination. Judge Covington of the United States District Court for the Middle District of Florida granted the residents' motion for class certification this week, and according to news sources over 1,000 residents are eligible to join the class. Earlier this year, Raytheon predicted it would cost over $20 million just to clean up the plume of contaminants in the water beneath the neighborhood.
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September 26, 2009 12:18 AM GMT | Posted by Shwayri, Rebecca
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T-Mobile has been sued in a class action case for allegedly pushing customers towards paperless billing. The plaintiffs allege that adding a fee for paper bills constitutes a material modification of their contracts. In August 2009, T-Mobile began to charge a $1.50 monthly fee on all accounts that continued to receive a paper bill.
Facebook has agreed to shutdown its Beacon advertising system in order to settle a class action lawsuit. The lawsuit alleged that Facebook and its Beacon affiliates, like Blockbuster and Overstock.com, violated a number of laws, including the Electronic Communications Privacy Act, the Video Privacy Protection Act, the California Consumer Legal Remedies Act, and the California Computer Crime Law. Beacon was designed to broadcast back to a member’s facebook friends actions that the facebook member took on participating websites.
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September 18, 2009 10:55 PM GMT | Posted by Shwayri, Rebecca
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Female employees at Sterling Jewelers are pursuing class action status for their claims of sex discrimination at the retail chain. The Arbitrator is currently considering whether women were paid $2 to $3 less per hour than men and whether women were offered fewer promotional opportunities. Sterling argues that the case cannot be certified as a class action because the women signed agreements in which they agreed to submit employment disputes to arbitration.
Tenet Healthcare, the owner of three Orange County hospitals, has agreed to pay $85 million to settle claims that nurses and other 12-hour shift employees were denied extra pay after changes in California law resulted in the employees being entitled to overtime wages. Approximately 23,000 current and former employees qualify for cash payment.
Clients of Neal Greenberg, a Boulder, Colorado based wealth manager, have filed a civil complaint after his firm, Agile Group, froze their accounts. The plaintiffs seek class action status and allege that Agile inappropriately placed their funds into high risk, unsuitable investments, which destroyed their retirement nest eggs.
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September 18, 2009 3:02 PM GMT | Posted by Morande, Dean
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The Southern District of Florida in Almonor v. BankAtlantic Bancorp, Inc., No. 07-61862-civ (July 28, 2009), refused to certify a class alleging that BankAtlantic violated ERISA by inflating the value of its stock over the class period. The court determined that the class representative was inadequate because she actually benefitted from the alleged wrongdoing. Specifically, the class rep elected to direct some of her withholdings into the BankAtlantic stock fund. However, prior to BankAtlantic’s revelation of the overstatement of its earnings—and the attendant plummeting in the stock value—the class rep sold all of her assets in the stock fund. Thus, unlike those class members whose portfolios took a loss because of the overstatement, the class rep benefited from the inflated stock value. The court also noted that the class definition was overbroad because it included those who purchased stock after BankAtlantic disclosed the overstatement. | read more
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September 11, 2009 9:12 PM GMT | Posted by Shwayri, Rebecca
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A federal court has approved a $475 million settlement in a class action case involving Merrill Lynch. The lawsuit, led by the State Teachers Retirement System of Ohio, accused Merrill Lynch of artificially inflating its stock prices through risky investments connected to subprime mortgages.
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September 10, 2009 4:05 PM GMT | Posted by Garcia, Joanna
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While determining whether to certify a class, the Southern District of Georgia recently sanctioned Defendants for spoliation of evidence and allowed a rebuttable adverse inference relating to documents destroyed by Defendants' agent. The Court, in Smith et al. v. Georgia Energy USA, LLC et al., --- F.R.D. ---, 2009 WL 2486896 (S.D.Ga. Aug. 10, 2009), agreed that Defendants should not be rewarded for destroying the evidence that would provide at least some of the answers to the allegedly individualized questions which Defendants claimed precluded class certification. | read more
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September 4, 2009 9:11 PM GMT | Posted by Shwayri, Rebecca
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Toyota has been sued in a class action lawsuit for allegedly hiding evidence from plaintiffs in cases involving highway deaths and injuries. The class action case echoes the allegations in a lawsuit filed by a former Toyota attorney who accuses his former employer of concealing and destroying evidence that should have been provided to plaintiffs.
The EEOC has filed a lawsuit against UPS alleging that the company improperly fired a disabled employee. The employee took 12 months of medical leave due to multiple sclerosis, returned, and then left again due to complications from her medications. The EEOC alleges that UPS failed to accommodate the employee’s disability in violation of the American with Disabilities Act. The EEOC seeks class action status for the suit.
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September 4, 2009 9:08 PM GMT | Posted by Morande, Dean
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Victims of human rights atrocities in Liberia sought to certify a class consisting of all such victims. The Southern District of Florida in Kpadeh v. Emmanuel, No. 09-20050-civ-Jordan, 2009 WL 2749828 (S.D. Fla. Aug. 25, 2009), held that individualized issues predominate given that each class member must demonstrate both that he or she was illegally tortured and the amount of damages to which he or she is entitled under the law. The court recognized that at least two courts in other jurisdictions have certified similar classes, but found those cases unpersuasive as those courts failed to rigorously apply Rule 23’s requirements, as is necessary in the Eleventh Circuit. | read more
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August 28, 2009 10:41 PM GMT | Posted by Shwayri, Rebecca
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A lawsuit has been filed against Textron alleging that top management misled stockholders and painted an overly rosy picture of the company’s finances prior to the financial meltdown last year. The suit was filed in U.S. District Court in Rhode Island on behalf of current and former employees of Textron. The plaintiffs seek class action status for the lawsuit.
Microsoft and Yahoo have joined a group of opponents of a class action settlement that gives Google the right to digitize millions of books. The companies are members of the Open Book Alliance which is made up of nonprofits and libraries which oppose digitizing the books. Critics of the proposed class action settlement assert that the deal gives Google the ability to set prices for libraries once the books are scanned onto the internet.
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August 21, 2009 6:43 PM GMT | Posted by Shwayri, Rebecca
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Wells Fargo has been sued over the slashing of home equity lines of credit. The plaintiff accuses the Bank of reducing credit lines based on flawed automated software which exaggerates the decline in property values. The plaintiff seeks class action status for the lawsuit.
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August 16, 2009 9:03 PM GMT | Posted by Shwayri, Rebecca
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A federal appeals court has affirmed a ruling which denied class action status to a lawsuit against Belo Corporation. The lawsuit accused Belo of intentionally overstating circulation figures for its news publication in order to charge advertisers more and to artificially inflate the value of the stock.
Sprint-Nextel has announced a settlement of $17.5 million in a class action lawsuit involving early termination fees in cell phone contracts. The lawsuit accused Sprint of overcharging $1.2 billion in early termination fees since 1999.
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August 7, 2009 5:44 PM GMT | Posted by Shwayri, Rebecca
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A Boston attorney has filed a class action lawsuit against Bank of America Home Mortgage and Wells Fargo Home Mortgage, alleging that the lenders knew or should have known that the loans could grow bigger over time and were unaffordable to borrowers. The suits are grounded on a 2008 Massachusetts Supreme Judicial Court decision in which the Court decided that lenders violated state law by writing loans that were almost certain to lead to default and foreclosure.
Plaintiff lawyers are seeking class action status for 57 federal cases being consolidated in Chicago and West Palm Beach against Ocwen Financial, one of the nation’s largest servicers of mortgages to consumers with low credit scores. The plaintiffs allege that Ocwen classified timely payments as late and then began foreclosure proceedings.
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July 30, 2009 11:46 PM GMT | Posted by Shwayri, Rebecca
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Morton’s Restaurant Group, Inc. has settled a class action lawsuit alleging that waiters were forced to give up their tips to managers and were paid less than the minimum wage. Morton’s will record a $13.4 million charge related to the class action suit.
A Congressional committee has held hearings on the Obama administration’s proposal to ban arbitration clauses from credit card agreements as part of a wider push for consumer protections. Citing arbitration clauses, banks can request that lead plaintiffs in a class action suit go to arbitration individually.
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July 24, 2009 7:39 PM GMT | Posted by Shwayri, Rebecca
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A California Superior Court Judge has allowed a class action lawsuit to proceed against DirecTV for allegedly imposing early termination fees of up to $480 on customers who canceled their service before the end of the contract term. The plaintiffs accuse DirecTV of not clearly disclosing its cancellation terms and fees.
Denny’s Restaurant faces a class action lawsuit due to allegedly unsafe levels of sodium found in the food served by the restaurant. The lawsuit seeks to force Denny’s to disclose the amount of salt in its meals.
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July 17, 2009 2:02 PM GMT | Posted by Shwayri, Rebecca
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A federal judge granted class action status to a lawsuit which accuses a unit of Toys “R” Us, Inc. and five manufacturers of conspiring to fix prices on a variety of baby goods. Similar price-fixing allegations have been thrown out by federal judges in the wake of a 2007 U.S. Supreme Court decision which ruled that minimum pricing agreements between manufacturers and retailers were no longer inherently illegal.
Massachusetts residents have filed a class action lawsuit against the Massachusetts Turnpike Authority, claiming that motorists who paid Pike tolls were forced to pay for work on other untolled projects. The plaintiffs allege that it was unconstitutional to use $450 million in revenue to pay for the Big Dig.
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July 10, 2009 12:48 PM GMT | Posted by Shwayri, Rebecca
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A class action lawsuit has been filed against Marquette Bank on allegations that the Bank violated the Electronic Funds Transfer Act by failing to disclose that non-members would be charged a fee for using an ATM. Under federal law, an electronic message on the screen has to disclose any fees.
The highest court in Massachusetts has ruled that customers have the right to pursue class action claims against businesses, overriding provisions in agreements which state that claims must be submitted to arbitration. Other states have invalidated provisions in software licenses, membership contracts, and credit card agreements which state that class action claims are barred.
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July 3, 2009 5:12 PM GMT | Posted by Shwayri, Rebecca
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Northwestern Mutual Life Insurance Company has been sued in a $200 million class action lawsuit by former financial representatives of the firm. The plaintiffs claim that Northwestern Mutual denied them minimum wage and overtime pay.
A class action lawsuit has been filed against The Dannon Co, Inc. which accuses the company of mounting a massive advertising campaign to convince consumers to pay more for yogurt containing probiotic bacteria because of the product’s health benefits. The plaintiffs seek reimbursement for all purchases of Activia, Activia Light, and Dan Active, and the plaintiffs further demand that the company engage in a corrective advertising campaign.
A group of five public pension funds have won the right to lead a class action lawsuit against Bank of America for its acquisition of Merrill Lynch. Investors accuse Bank of America of misleading them regarding Merrill Lynch’s financial health prior to the deal even though it was clear that Merrill Lynch would suffer a $15.84 billion loss.
Stream Energy has been sued in a class action lawsuit accusing the company of running a pyramid scheme. In the pyramid scheme, new participants pay money to the people who recruit them, then hope to recoup their investment by recruiting others. The pyramid collapses when there are not enough new recruits.
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June 25, 2009 10:28 PM GMT | Posted by Shwayri, Rebecca
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Class action lawsuit filed in federal court in Florida against Florida developer Ginn. The lawsuit alleges that the Ginn Development Company, LLC and Lubert-Adler Partners, LP created a false appearance of high demand for properties, artificially inflated the values of the properties, and misrepresented the amenities to be developed.
California homeowners have filed a class action against KB Home, Countrywide Financial, and LandSafe Appraisal Services, claiming that the companies conspired to artificially rig home appraisal values and sale prices. The plaintiffs claim that the defendants inflated home prices by $300 million in California alone.
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June 16, 2009 1:01 PM GMT | Posted by Morande, Dean
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The defendant in Thomas v. Bank of America Corp., No. 09-11143 (11th Cir. June 12, 2009), removed the case to federal court asserting that, according to the affidavit it provided, the elements of a mass action under CAFA were satisfied. The plaintiff moved to remand the case, arguing that the evidence did not support federal jurisdiction under CAFA. Both the district court and the Eleventh Circuit agreed, noting that the plaintiff’s filings--the only evidence from which jurisdiction can be established--were insufficient to establish CAFA jurisdiction. | read more
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June 12, 2009 3:10 PM GMT | Posted by Christian, Kathryn
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A subscriber to online dating service Match.com filed a putative class action lawsuit alleging that the company misled subscribers by keeping the profiles of cancelled members online. The lawsuit alleges that the company put subscribers in the position of feeling humiliated after sending emails to cancelled members and receiving no response. | read more
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June 11, 2009 7:39 PM GMT | Posted by Christian, Kathryn
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In In re Hydrogen Peroxide Antitrust Litigation, 552 F.3d 305 (3d Cir. 2008), the Third Circuit Court of Appeals determined that under the "rigorous analysis" required by Rule 23, "[f]actual determinations supporting Rule 23 findings must be made by a preponderance of the evidence." The court further held that "the court's obligation to consider all relevant evidence and arguments extends to expert testimony, whether offered by a party seeking class certification or by a party opposing it." Specifically, the court held that the trial court erred in failing to determine whether the expert theory proffered by the plaintiffs that a conspiracy to maintain prices could impact the entire class, despite a decrease in prices for some customers in parts of the class period, was "susceptible to proof at trial through available evidence common to the class." Although the Eleventh Circuit has not weighed in on what evidentiary standard is required by the "rigorous analysis" under Rule 23, the Northern District of Alabama recently adopted the Third Circuit's preponderance of the evidence standard in a securities fraud class action case. In re HealthSouth Corp. Sec. Litig., --- F.R.D. ----, 2009 WL 1040107 (N.D. Ala. Mar. 31, 2009). In doing so, the court stated, "[t]hough the court does not presume to impose this standard in the Eleventh Circuit, the court finds the preponderance of the evidence standard appropriate in this case." The court ultimately held that at least some plaintiffs met "their burden of establishing by a preponderance of evidence the requisites for class certification."
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June 10, 2009 8:17 PM GMT | Posted by Morande, Dean
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In a case of first impression in this circuit, the Southern District of Florida in Hicks v. Client Services, Inc., 2009 WL 1591111 (S.D. Fla. June 1, 2009), wrestled with the question of whether a class action is a superior method of adjudication where recovery under the Fair Debt Collection Practices Act would be de minimis on a class wide basis, and significant if brought on an individual basis. | read more
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June 10, 2009 7:20 PM GMT | Posted by Morande, Dean
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In denying the plaintiffs’ motion for remand, the Southern District of Florida in Galstaldi v. Sunvest Communities USA, LLC, 256 F.R.D. 673 (S.D. Fla. Feb. 17, 2009), confirmed that the Class Action Fairness Act’s “event or occurrence” exception to federal jurisdiction for mass actions applies only where a single event or occurrence is at issue. | read more
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June 9, 2009 9:33 PM GMT | Posted by Christian, Kathryn
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Zurich-based reinsurer Swiss Re thinks so. In a recent report, Swiss Re concludes that "climate change-related liability will develop more quickly than asbestos-related claims" and "the frequency and sustainability of climate change-related litigation could become a significant issue within the next couple of years." Swiss Re points out that although the first asbestos claims in the 1950's were not successful, later suits have been successful. Swiss Re predicts that the same litigation cycle could occur with respect to climate change claims, which so far have not been successful, but which could be in the future, especially given the current political climate.
Swiss Re is not alone in comparing climate change lawsuits to mass tort litigation: lawyers who filed a climate change suit last February on behalf of the Alaskan city of Kivalina plan to use the "same game plan" used by plaintiffs' lawyers in tobacco litigation to recover damages from oil, coal, and electric companies whose emissions have allegedly shortened the season during which the sea was frozen, causing severe coastal erosion. Specifically, the lawyers plan to prove that the companies conspired to cover up the threat of man-made climate change, preventing measures that might have slowed the problem.
Read more to learn about the industries at risk due to these and other climate change legal theories and how the current political climate may impact this litigation risk. | read more
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June 5, 2009 1:09 PM GMT | Posted by Christian, Kathryn
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Surgery centers filed a class action lawsuit in federal court in Georgia against Blue Cross Blue Shield of Georgia alleging that the insurer unfairly reimbursed out-of-network providers.
A Georgia appeals court reversed a trial court's decision dismissing a putative class action brought by consumers against Georgia Natural Gas alleging that the gas company overcharged them for the standard variable-rate plan.
After a class action lawsuit was filed against Liberty National Life Insurance alleging that the insurer discriminated against Haitian Americans, Florida's Office of Insurance Regulation (OIR) began investigating the insurer. After several months of investigation, the OIR has issued an order to the insurer asking it to provide proof that it did not violate state laws that prohibit discrimination.
Two hospitals filed an antitrust class action lawsuit in federal court in Pennsylvania against two suppliers of blood reagents alleging that they have conspired since 2000 to increase the price for blood reagents by as much as 1,000 percent and have illegally allocated customers. | read more
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June 4, 2009 6:45 PM GMT | Posted by Christian, Kathryn
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In Altamonte Springs Imaging, L.C. v. State Farm Mut. Auto. Ins., Nos. 3D08-652, 3D07-3009, 2009 WL 1531610 (Fla. 3d DCA June 3, 2009), magnetic resonance imaging (MRI) providers brought a class action lawsuit against State Farm Mutual Automobile Insurance Company, alleging that the insurer failed to pay correct consumer price index (CPI) adjustments for MRI reimbursements in personal injury protection claims as required by section 637.736(5)(b)(5), Florida Statutes. The parties entered into a proposed class action settlement agreement, agreeing on the methodology for making the CPI adjustment. This week, the Third District Court of Appeal affirmed the settlement, rejecting arguments by an intervenor objecting to the settlement. Carlton Fields represented the appellees before the Third District. Read more to learn about the court's reasoning. | read more
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June 4, 2009 6:06 PM GMT | Posted by Reddy, Kenya
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On May 28, 2009, the Supreme Court of Florida announced the adoption of certain amendments to the Florida Rules of Civil Procedure that are intended to provide procedures to improve case management of complex civil litigation. The amendments were proposed by the Task Force on the Management of Cases Involving Complex Litigation, and were adopted by the Supreme Court with slight modifications. | read more
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June 3, 2009 9:20 PM GMT | Posted by Christian, Kathryn
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Social Security recipients brought a class action against Bank of America alleging that the bank violated California state law by taking overdraft fees from accounts set up to receive Social Security benefits. This week, the California Supreme Court overturned a jury verdict in favor of the class, holding that banks could properly collect overdraft fees from such accounts. The attorney who represented the Social Security recipients says that some class members lost as much as 20% of their monthly income in a single day due to overdraft fees.
Nine lawsuits have been filed against a number of financial institutions and operators in Western Pennsylvania alleging that they violated the Electronic Funds Transfer Act by failing to post signs on or around ATMs notifying customers of fees.
The United States Justice Department is investigating whether some technology companies violated antitrust laws by agreeing not to actively recruit employees from each other, according to an article published in the New York Times based on information from people with knowledge of the investigation. | read more
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June 1, 2009 1:22 PM GMT | Posted by Christian, Kathryn
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The United States Supreme Court will decide whether Merck investors can maintain a securities class action against the company as a result of its disclosures regarding Vioxx. A federal district court judge dismissed the lawsuit, ruling that the statute of limitations had expired. The Third Circuit Court of Appeals reversed. The Supreme Court will now decide when the statute of limitations began to run.
A federal district court judge in Colorado approved a $695 million settlement resolving a securities class action against Qwest Communications International, Inc.
The United States Judicial Panel on Multidistrict Litigation will decide the proper venue for the Chinese drywall class action lawsuits. Last Thursday, the MDL Panel heard arguments in favor of the following cities: Miami, Tampa, Fort Meyers, New Orleans, and Columbus, Ohio. | read more
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May 29, 2009 3:23 PM GMT | Posted by Christian, Kathryn
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Purchasers of units within the Trump International Hotel and Towers in Fort Lauderdale Beach, Florida filed a class action lawsuit this week alleging, among other things, that they were misled about the involvement of Donald Trump in the project. The purchasers seek a refund of their deposits and punitive damages.
A class action lawsuit was filed against Air Tran Airways and Delta Air Lines, alleging that the two air carriers colluded to start charging customers an extra fee to check bags. | read more
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May 22, 2009 7:48 PM GMT | Posted by Shwayri, Rebecca
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The California Supreme Court revived a class action suit against the tobacco industry, ruling that smokers could hold the tobacco companies accountable for deceptive advertising.
A Massachusetts judge approved a $10.65 million settlement of a class action law suit filed against the U.S Smokeless Tobacco Company for price-fixing.
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May 21, 2009 7:49 PM GMT | Posted by Allen, D. Matthew
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In Campbell v. State, -- So. 2d --, 2009 WL 886227 (Fla. 1st DCA 2009), the First District resolved the appeal of an attorney against whom sanctions were imposed for pursuing "baseless litigation in a class action lawsuit against the State." What happened? | read more
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May 21, 2009 7:21 PM GMT | Posted by Allen, D. Matthew
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The Florida Third and Fifth District Courts of Appeal have issued class certification opinions in the last two months. Which way did they go? | read more
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May 14, 2009 10:34 PM GMT | Posted by Huhta, Blaise
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In Edwards v. Accredited Home Lenders, Inc., Slip Copy 2009 WL 1269511, Civil Action No. 07-0160-KD-C (May 4, 2009), the Alabama Southern District Court granted the motion to intervene in the class action matter in part, but limited the scope of the intervening plaintiffs’ complaint allegations to the claims, class definition, and legal theories for relief already before the court in the second amended complaint. The interveners were not permitted to bring a complaint which according to the court would “greatly expand” the claims, class definition, and legal issues in the case because it would be prejudicial to the defendant. | read more
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May 14, 2009 9:25 PM GMT | Posted by Shwayri, Rebecca
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A U.S. District Judge in New York has preliminarily approved a proposed settlement of a class action lawsuit over Costco’s annual membership renewal practices. The plaintiffs allege that Costco shortchanged them on membership benefits when Costco did not reset the renewal date after members renewed their membership.
A federal appeals court has revived a Tampa class action lawsuit. The suit seeks money for Florida shoppers whose credit and debit cards were swiped in a data breach that hit 109 Sweetbay supermarkets.
A Vioxx class action lawsuit is rejected by a California judge. The judge ruled that the patients and insurers could not sue as a group. The judge found that the patients paid varying amounts for the drug and had too many other differences to sue jointly.
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May 7, 2009 12:34 PM GMT | Posted by Christian, Kathryn
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Ticketmaster has been sued in a class action lawsuit in Canada alleging that Ticketmaster illegally resold concert tickets in a secondary market for more than their face value. The person who filed the suit tried to buy Smashing Pumpkins concert tickets on Ticketmaster's website for $66.55 (Canadian dollars) but was redirected to the TicketsNow website, where he purchased tickets for $533.65 (Canadian dollars). According to RollingStone.com, Live Nation's Michael Rapino said about the suit, "class action lawsuits have no merit, it's like chasing cars down the road."
A similar class action lawsuit has been filed against Ticketmaster in federal court in New Jersey alleging that it fraudulently raised prices by sending online customers to a subsidiary reseller. | read more
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May 6, 2009 1:19 PM GMT | Posted by Christian, Kathryn
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A Missouri appeals court reinstated a $17 million jury verdict against American Family Mutual Insurance Company in a class action lawsuit alleging that the company had used inferior equipment to repair insureds' vehicles. The trial judge had thrown out the verdict, finding that the plaintiffs failed to prove their theory of damages.
A federal judge in Oklahoma granted class status to a lawsuit filed on behalf of foster children alleging that the children suffered abuse as a result of deficiencies in the state's foster care system.
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April 30, 2009 9:09 PM GMT | Posted by Shwayri, Rebecca
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Former Abbott employees have sued Abbott Laboratories, alleging that the healthcare products company cheated them out of their retirement benefits. The lawsuit stems from Abbott Laboratories spinoff into a separate company, Hospira, which is also named in the suit. The plaintiffs allege that they were promised a similar benefits package at Hospira, but that is not what they received.
A class action lawsuit has been filed against U.S. Fidelis. The plaintiffs allege that they purchased extended vehicle protection to cover their vehicles in the event of a repair, but that the policy included so much fine print that they were ultimately left out in the cold.
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April 24, 2009 1:23 PM GMT | Posted by Shwayri, Rebecca
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Homebuilder Lennar Corporation has been named in a class action lawsuit brought by plaintiff homeowners who bought homes built with Chinese drywall. The plaintiffs claim that the drywall emitted gases that made them sick.
Workers who have lost their jobs in the recession are more likely to bring lawsuits against their prior employers given the bleak job market. Some of these suits are class action lawsuits. HomeBanc employees brought a class action lawsuit against the Atlanta-based mortgage lender for not giving them ample notice of their dismissal.
Banking software firm Fiserv was hit with a $1 billion class action lawsuit on April 2. The plaintiffs allege that Fiserv should share responsibility for the fate of securities and cash Bernard Madoff was supposedly managing. The plaintiffs allege that while Fiserv was the designated custodian for the plaintiffs’ IRA and pension accounts the designation was fictitious because no securities were purchased for the plaintiffs. The plaintiffs further allege that they received false monthly statements of their holdings detailing the purported value.
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April 22, 2009 7:56 PM GMT | Posted by Morande, Dean
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The Southern District of Florida in Rosen v. J.M. Auto, Inc., 2009 WL 1033816 (S.D. Fla. Apr. 17, 2009), confirmed that, while discovery aimed at the identity of potential class members is barred prior to class certification, it is available once the class is certified. The court rejected the defendants’ argument that the discovery was untimely because the deadline for discovery had past, holding that plaintiffs’ current motion to compel related back to the original timely motion that had beed denied on the ground that a class was not yet certified. The court also confirmed that the plaintiff must bear the costs expended in compiling the list of potential class members. | read more
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April 10, 2009 9:45 PM GMT | Posted by Shwayri, Rebecca
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The United States Court of Appeals for the Ninth Circuit revived a class action lawsuit accusing Arco, Chevron, and other refiners of conspiring to fix gasoline prices in the mid-1990s. The plaintiffs contend that the defendants violated the Sherman Antitrust Act by limiting the supply of gasoline to raise prices and keep them high.
The Hartford and other insurers have been sued in a class action suit over the “dumping” of cheap Chinese food in the U.S. market. The plaintiffs allege that the defendants negligently issued hundreds of customs surety bonds to thinly capitalized and inexperienced importers and refused to pay out on the bonds. The bonds guaranteed the payment of any dumping duties that the government determined were owed by U.S. importers of Chinese goods. The plaintiffs seek nearly one billion dollars in damages.
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April 7, 2009 5:57 PM GMT | Posted by Morande, Dean
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Today, the Eleventh Circuit released a strongly worded opinion reversing an order certifying class claims for unpaid wages and unjust enrichment. In finding that the district court abused its discretion in just about every aspect of its order, the Court in Vega v. T-Mobile, USA, Inc., No. 07-13864 (11th Cir. Apr. 7, 2009), exhaustively examined each element of Rule 23(a) and (b)(3). | read more
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April 6, 2009 4:56 PM GMT | Posted by Morande, Dean
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Applying Delaware law, the Southern District of Florida in Caban v. J.P. Morgan Chase & Co., 2009 WL 890392 (S.D. Fla. Mar. 23, 2009), ruled that the class action waiver at issue was unconscionable because it effectively precluded individual suits where a single plainitiff's recovery would be minimal. The court did, however, uphold the mandatory arbitration provision and sent the case to arbitration to be determined on a class-wide basis. | read more
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April 3, 2009 2:32 PM GMT | Posted by Shwayri, Rebecca
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A federal judge approved class action status for royalty owners with interests in 290 natural gas wells in the Oklahoma pan handle and southwestern Kansas. The suit was filed against Fort Worth based XTO Energy. The royalty owners allege that XTO underpaid them by 15 to 20 percent by selling gas to a wholly owned company subsidiary at below market prices. The gas was later allegedly sold to an unaffiliated company at a higher price.
A class action suit was filed by 150 families and businesses against Exxon Mobil Corporation. The plaintiffs contend that they were contaminated by the gasoline additive MTBE. The plaintiffs are seeking more than $530 million dollars in individual damages and billions more in restoration damages.
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March 30, 2009 7:12 PM GMT | Posted by Morande, Dean
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In In re 21st Century Holding Co. Sec. Litig., 2008 WL 5749572 (S.D. Fla. Nov. 7, 2008), the court granted in part the defendants’ motion to dismiss. The plaintiffs alleged that 21st Century, an insurance holding company, misrepresented its business and financial performance, resulting in the artificial inflation of the company’s stock price. 21st Century moved to dismiss, alleging that the complaint failed as a matter of law to state claims for violations of Section 10(b) and 20(a) of the Securities Exchange Act. The Southern district agreed with respect to certain allegations, though the claims survived. | read more
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March 27, 2009 10:51 AM GMT | Posted by Shwayri, Rebecca
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Top pension funds aim to lead class action lawsuit against Bank of America. The California Public Employee Retirement System and the California State Teachers Retirement System filed a motion in the United States District Court for the Southern District of New York to be designated lead plaintiffs in a class action suit. The suit involves allegations that the shareholders lacked complete information regarding the merger between Bank of America and Merrill Lynch. Insurer WellPoint, Inc. was sued in a class action lawsuit over allegations that it failed to pay overtime to current and former nurses. The plaintiffs allege that they regularly worked more than 40 hours per week without overtime compensation. Damages for the group are estimated to exceed $5 million.
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March 20, 2009 11:22 AM GMT | Posted by Shwayri, Rebecca
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Louisiana Judge approves settlement in a class action lawsuit against Louisiana Citizens Property Insurance Corporation. The settlement would award $1,000 apiece to policyholders whose hurricane claims in 2005 were paid slowly.
A New Jersey Judge denies a class action on consumer Vioxx costs. The plaintiffs sued to recover their out-of-pocket costs associated with Vioxx.
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March 17, 2009 10:00 PM GMT | Posted by Driskell, Fentrice
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Yes, according to the Court in Ault v. Walt Disney World Co., 254 F.R.D. 680 (M.D. Fla. 2009). The Court ultimately approved the settlement class, but only after conducting a thorough evaluation of the requirements of Rule 23(a) and 23(b)(2). | read more
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March 17, 2009 10:00 PM GMT | Posted by Driskell, Fentrice
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In Butler-Jones v. Sterling Casino Lines, L.P., No. 6:08-CV-01196-Orl-35DAB, 2008 WL 5274384, at *3 (M.D. Fla. Dec. 18, 2008), the plaintiffs’ failure to limit the proposed class definition to individuals who were terminated as opposed to merely affected by an apparent plant closure precluded class certification. | read more
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March 16, 2009 6:16 PM GMT | Posted by Garcia, Joanna
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According to the Court in Ojeda-Sanchez, et al. v. Bland Farms, et al., 2009 WL 577602 (S.D. Ga. March 4, 2009), Defendants' communications to Plaintiffs, Opt-in Plaintiffs, and Potential Opt-in Plaintiffs can be limited by the Court where there is clear evidence that a potentially abusive situation exists sufficient to warrant a protective order. | read more
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March 16, 2009 2:53 PM GMT | Posted by Reddy, Kenya
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Seventh Circuit Decertifies Multi-State Class Action Alleging Consumer Protection Act Violations – In an opinion sure to raise the ire of class counsel around the nation, the Seventh Circuit Court of Appeals decertified a multi-state class action against Sears, Roebuck & Co. alleging false advertising under various state consumer protection statutes and individual claims for violations of Tennessee’s Consumer Protection Act. Thorogood v. Sears, Roebuck & Co., 547 F.3d 742 (7th Cir. 2008). The named plaintiff brought the action in federal district court on behalf of himself and other purchasers, scattered across 28 states and the District of Columbia, of the more than half million Kenmore dryers advertised as containing stainless steel drums. Plaintiff alleged that the part of the front of the drum was made not of stainless steel, but of a ceramic-coated “mild” steel. Plaintiff contended that the sale of dryers so advertised was deceptive unless the drums were made entirely of stainless steel, because if they were not, they may rust and cause rust stains on clothes in the dryer. The district court granted plaintiff’s motion for class action certification, determining class action treatment was warranted because “Sears marketed its dryers on a class wide basis…reliance [therefore] can be presumed.” The Seventh Circuit granted Sears’ appeal and reversed. | read more
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March 16, 2009 12:41 PM GMT | Posted by Morande, Dean
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In this collective action under the Fair Labor Standards Act, the Southern District of Florida sanctioned Plaintiffs’ counsel for their pre-certification communications to prospective class members. In its discussion of the relevant authorities, the court seemed to indicate that the same rules and rationale it was applying in this collective action would also apply in a class action under Rule 23. Hamm v. TBC Corporation, 2009 WL 289822 (S.D. Fla. Feb. 3, 2009). | read more
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March 16, 2009 12:31 PM GMT | Posted by Morande, Dean
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It was in Drossin v. National Action Financial Services, 2009 WL 289826 (S.D. Fla. Feb. 2, 2009). The defendant challenged the lone named plaintiff’s standing to raise a FDCPA claim on the basis that the allegedly offending message was actually meant for someone other than the named plaintiff. The court rejected that argument, holding that, because there was no way for the plaintiff to know the message was not intended for her, she may have a proper claim under the FDCPA. The court proceeded through the remaining Rule 23 requirements, holding all were met as to the FDCPA claim. With regard to predominance, the court rejected the defendant’s argument that this type of phone message was a “mere aberration” because it failed to produce evidence of “clear policies” supporting that contention. In addition to the federal FDCPA claim, the plaintiff also brought a Florida Consumer Collection Practices Act claim. That claim, however, was not suitable for class treatment. According to the court, the defendant's assertion that the message was left in error was sufficient to destroy the commonality necessary for a FCCPA claim, which has different requirements than a FDCPA claim. | read more
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March 16, 2009 12:18 PM GMT | Posted by Morande, Dean
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Apparently not in the Southern District of Florida. In Santidrian v. Landmark Custom Ranches, Inc., 2009 WL 210668 (S.D. Fla. Jan. 28, 2009), the defendant successfully struck the plaintiff’s allegation purporting to reserve his right to later add plaintiffs in a class action. The court held that such an allegation served no purpose, as the court would set the relevant deadlines for amending the pleadings and adding parties. | read more
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March 16, 2009 12:05 PM GMT | Posted by Morande, Dean
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Only when that list of class members is necessary to meet an element of Rule 23. In Drossin v. National Action Financial Services, 2008 WL 5381815 (S.D. Fla. Dec. 19, 2008), the defendant could not provide any information regarding the size of the potential class other than to identify each potential class member. Thus, the discovery was necessary for the plaintiff to address the numerosity requirement.
In that case, the Southern District found an exception to the rule prohibiting pre-certification discovery sought merely for the purpose of identifying individuals for notice of a class action. | read more
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March 14, 2009 3:42 PM GMT | Posted by Huhta, Blaise
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This matter, Palm Harbor Homes, Inc. v. Walters, 2009 WL 562854 (M.D. ALA. March 5, 2009), came before the Middle District of Alabama on Plaintiff’s motion to remand. Plaintiff Palm Harbor Homes, Inc. originally brought this action in state court. The three defendants, Michael Walters, Jennifer Walter and Chester Driskell, removed the action invoking the federal court’s subject matter jurisdiction pursuant to 28. U.S.C. § 1332(d)(2). Id. at *1.
The Court first explained that federal courts are courts of limited jurisdiction. Generally three types of jurisdiction exist: federal question jurisdiction, diversity jurisdiction and jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”). This act expanded federal jurisdiction to include interstate class actions. It gave federal courts diversity jurisdiction over class actions where at least one member of the plaintiff class is a citizen of a different state from any defendant, and the total amount in controversy exceeds $5,000,000. Id. For the proposes of CAFA the term “class action” is defined as “any civil action filed under rule 23 of the Federal Rules of Civil Procedure or similar State statute or rule of judicial procedure...” Id. | read more
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March 13, 2009 12:58 PM GMT | Posted by Shwayri, Rebecca
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A Sprint shareholder filed a class action lawsuit against Sprint, challenging whether the company propped up its stock price by avoiding timely disclosure of problems with its Nextel purchase.
A hospital network in Albany, New York has agreed to settle an antitrust class action suit for $1.25 million in which the nurses alleged that the hospitals had illegally conspired to hold down their wages.
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March 12, 2009 5:56 PM GMT | Posted by Allen, D. Matthew
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Should a class of property owners suing a property manager in a dispute over the amount of gross rental income the property owners should receive be certified when the owners' contracts are identical? Find out what the First District held in Brodeur v. Dale E. Peterson Vacations, Inc., -- So. 2d --, 2009 WL 528905 (Fla. 1st DCA 2009). | read more
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March 6, 2009 12:44 PM GMT | Posted by Shwayri, Rebecca
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Judge decertifies class action involving off-label use of an epilepsy and neuralgia drug. The class representatives brought claims of misrepresentation, negligence, negligence per se and breach of express warranty on behalf of users of the drug Neurontin. The plaintiffs sought a refund of non-insured payments of the drug. The judge granted Pfizer, Inc.’s motion for class decertification because he felt there were questions of fact as to whether each class member had been benefited or harmed by their off-label use of the drug.
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February 27, 2009 2:20 PM GMT | Posted by Christian, Kathryn
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Juveniles and their family members filed a class action lawsuit against two former judges who pleaded guilty to accepting money in exchange for ordering young defendants to serve time in privately run detention centers. The lawsuit seeks compensation for emotional harm caused to the juveniles. | read more
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February 26, 2009 1:44 PM GMT | Posted by Christian, Kathryn
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Five former employees of Citigroup filed class charges of discrimination with the Equal Employment Opportunity Commission, alleging that female employees were not paid the same as male employees and that in recent layoffs male employees were retained at the expense of female employees.
General Reinsurance Corporation will pay $72 million in connection with a five-year-old class action suit brought by the Ohio Attorney General's office against American International Group, Inc (AIG) and other defendants, alleging that General Reinsurance conducted a fraudulent reinsurance transaction that allowed AIG to inflate its loss reserves. | read more
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February 20, 2009 4:13 PM GMT | Posted by Shwayri, Rebecca
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The U.S. Court of Appeals for the Ninth Circuit will revisit a Wal-Mart class action dispute. The case began in 2001 when a 54-year old Wal-Mart employee filed a sexual discrimination claim against Wal-Mart, claiming that she was denied the training that she needed to advance because of her sex.
Fortunoff, a jewelry and home goods retailer, laid off 300 employees and faces a class action lawsuit. The suit alleges that the company failed to provide advance written notice of the layoffs which is required by federal and state Worker Adjustment and Retraining Notification Acts.
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February 13, 2009 11:01 PM GMT | Posted by Shwayri, Rebecca
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Parents of autistic children sue Kaiser Permanente in a class action law suit, claiming that the HMO refused to treat children with autism in order to save costs.
Class action lawsuit filed against JP Morgan Chase for charging borrowers high monthly fees which are added to borrowers’ balances.
California investors file a class action lawsuit against a prominent real estate brokerage firm and a former Orange County businessman for concocting a scheme in which the defendants allegedly bought small commercial properties, artificially inflated their prices, and sold the properties to investors.
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February 6, 2009 2:53 PM GMT | Posted by Allen, D. Matthew
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Can a named plaintiff be considered an inadequate class representative if it lacks the financial resources necessary to fund the cost of notice and class administration? See what the Florida Third District Court of Appeals had to say about this issue. | read more
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February 6, 2009 1:48 PM GMT | Posted by Rebecca Shwayri
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Class action lawsuit filed against grocery distributor. The suit alleges several counts of anticompetitive behavior that purportedly constitutes violations of the Sherman Act.
Judge orders new trial in $300 million dollar class action lawsuit against Sprint-Nextel. The former Sprint customers challenged the ability of the company to charge early termination fees.
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January 22, 2009 10:59 PM GMT | Posted by Rebecca Shwayri
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The number of federal securities class actions rise as the economy sours. To cut down on expenses and assert their collective power, investor plaintiffs are banding together in class action suits.
Hundreds of department stores across the United States have agreed to hand out $175 million worth of makeup to settle a 2003 class action lawsuit involving price-fixing allegations.
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January 20, 2009 9:52 PM GMT | Posted by Rebecca Shwayri
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Coca-Cola sued in a class action suit over vitamin water health claims.
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January 9, 2009 5:15 PM GMT | Posted by D. Matthew Allen
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Does a lack of a court reporter and resulting transcript at a class certification hearing impact how the appellate court reviews the proceeding? The Second District's Judge LaRose thinks so! Read on for more details. | read more
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December 21, 2008 12:06 AM GMT | Posted by Kathryn Christian
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In In re Hannaford Bros. Co. Customer Data Security Breach Litigation, MDL No. 2:08-MD-1954, 2008 WL 5179897 (D. Me. Dec. 10, 2008), the plaintiff sued Kash N' Karry Food Stores in Florida state court on behalf of a class of 1.6 million Floridians. Kash N' Karry removed the case to federal court, and the Multidistrict Litigation Panel transferred the case to the District of Maine. The District of Maine remanded the class action to state court in Florida, holding that the court lacked jurisdiction under the Class Action Fairness Act because the plaintiff was "master of his pleadings." Read more to learn what the plaintiff did to avoid federal court. | read more
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November 24, 2008 1:39 PM GMT | Posted by Kathryn Christian
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In Matthews v. Town of Autaugaville, 574 F. Supp. 2d 1237 (M.D. Ala. 2008), the plaintiff brought a class action against the mayor of Autaugaville, Alabama as well as several police officers, alleging that his traffic citations violated his due process and equal protection rights under the Fourteenth Amendment. Police standards required that police officers making an arrest either be certified or be supervised by a certified officer. The plaintiff was arrested by provisionally appointed uncertified officers. The plaintiff argued that his arrest violated his fundamental right to liberty and that the fine arising from the arrest violated his fundamental right to property. He also argued that he was denied equal protection because he was treated differently than other citizens of Alabama. The court rejected all of these arguments and granted the defendants' motion for summary judgment. To learn more about the court's reasoning, read more. | read more
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October 24, 2008 3:30 AM GMT | Posted by Fentrice Driskell
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Yes, according to the court in Drury v. Countrywide Home Loans, Inc., No. 6:08-cv-152-Orl-28DAB, 2008 WL 4642381 (M.D. Fla. Oct. 17, 2008). By analyzing the amount each plaintiff would have been charged per wrongfully-placed insurance policy and the likely, though imprecise, number of plaintiffs who would have incurred such charges, the court was able to deduce that the total amount of damages “likely exceeded” the jurisdictional amount. | read more
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October 17, 2008 8:37 PM GMT | Posted by Kenya Reddy
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Class action suit alleges violations of commerce clause alleging that drivers from New York and New Jersey who use the E-ZPass pay more at Boston area toll plazas than users of Massachusetts’ FAST LANE transponders.
Plaintiff files antitrust class action in federal court alleging Sprint Nextel Corp., Verizon Communications Inc., AT&T Inc. and T-Mobile USA Inc. conspired to fix text-messaging rates.
Federal judge approves $24 million settlement for owners of pets that became sick or died after eating pet food contaminated with melamine.
Predatory-lending individual and class actions against Countrywide Financial Corp. will be consolidated and heard in U.S. District Court in San Diego.
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October 17, 2008 3:03 PM GMT | Posted by D. Matthew Allen
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In Ameriquest Mortgage Co. v. Scheb, -- So. 2d --, 2008 WL 4568383 (Fla. 2d DCA Oct. 15, 2008), Florida's Second District Court of Appeal affirmed "per curiam" an order granting class certification in a case where a homeowner sought repayment of "excess premiums" charged for title insurance policies on refinanced mortgage loans.
Judge Chris Altenbernd filed a concurring opinion in which he provided a practice pointer to class action practitioners. Do you want to know what it is? | read more
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September 28, 2008 9:58 PM GMT | Posted by Dean Morande
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Yes, but the responding party does not have to supply an answer because, according to the Middle District of Florida, such a request improperly calls for speculation. Rebman v. Follett Higher Education Group, Inc., No. 06-1476, 2008 WL 3928793 (M.D. Fla. Aug. 26, 2008). | read more
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September 28, 2008 9:36 PM GMT | Posted by Dean Morande
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While conceding that all the other elements for res judicata were satisfied, the plaintiffs contended that their case did not arise out of a common nucleus of operative facts. The district court disagreed, finding irrelevant that the prior class action was decided on summary judgment and holding that the claims asserted here by the plaintiffs could have been asserted in the prior litigation. | read more
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September 28, 2008 9:16 PM GMT | Posted by Dean Morande
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Only documents provided by the plaintiff, according to the Southern District of Florida’s interpretation of controlling Eleventh Circuit precedent. | read more
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September 28, 2008 8:48 PM GMT | Posted by Dean Morande
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In rejecting the plaintiffs’ argument that reliance need not be shown to certify a class under the Florida Deceptive and Unfair Trade Practices Act, the Southern District not only distinguished a seemingly contrary Florida state court decision, but explicitly stated that the court is not bound by that decision. | read more
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September 3, 2008 8:47 PM GMT | Posted by Blaise Huhta
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Judge grants motion to dismiss of securities class action lawsuit against ATM and voting machine maker Diebold, Inc. which alleged investors were misled.
Settlement in works for class action lawsuit filed by gym members against Court South gym over “lifetime memberships.”
Target Corp. agrees to settle a class-action lawsuit filed by the National Federation of the Blind by modifying its website and paying damages.
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August 28, 2008 6:28 PM GMT | Posted by Fentrice Driskell
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No, according to a recent decision granting a motion for class certification where class members potentially would recover only $3.20 per individual. | read more
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August 21, 2008 4:02 PM GMT | Posted by D. Matthew Allen
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We have hit a quiet spell in terms of Florida class action law (although the federal courts remain active and we should have some posts up on federal cases shortly). There is a small piece of news on the Florida state court front. | read more
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July 29, 2008 5:04 AM GMT | Posted by Dean Morande
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Yes, but only so long as Judge Carnes is constrained by the prior panel precedent rule. | read more
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July 29, 2008 5:00 AM GMT | Posted by Dean Morande
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More than a conclusory statement about the aggregate sum of the amount in controversy in an affidavit by an officer of the defendant. | read more
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July 27, 2008 12:21 AM GMT | Posted by Blaise Huhta
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Cleveland law firm to disburse millions in unclaimed class action awards to charities.
Class action lawsuits filed by shareholders of TRM Corp., a provider of ATM services and products, are dismissed.
A health insurance company charged with systematically paying too little for out-of-network care to its members has agreed to a $255 million settlement of class-action suits.
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June 30, 2008 4:06 PM GMT | Posted by Kenya Reddy
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Collector files class action lawsuit against Louis Vuitton for failure to provide sufficient documentation for limited edition handbags.
On same day that Tyson Foods Inc. settles false advertising lawsuit brought by competitor, lawyers file class action in same court on behalf of customers across the country accusing Tyson of consumer fraud, breach of express warranty and unjust enrichment.
Seven workers file class action lawsuit against several Verizon Communications contractors and subcontractors, alleging they were not paid minimum wage and overtime wages.
Supreme Court’s ruling cutting punitive damages awarded to Alaskans harmed by Exxon Valdez spill may have far-reaching implications for all class actions involving significant damages.
New Jersey town files class action lawsuit suing travel websites accused of shortchanging towns out of hotel occupancy taxes.
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June 26, 2008 4:49 PM GMT | Posted by Dean Morande
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The Southern District of Florida determined in Jones v. Jeld-Wen, Inc., No. 07-22328, 2008 WL 2433213 (S.D. Fla. June 13, 2008), that individualized causation issues precluded certification of a class seeking damages for allegedly defective windows.
The plaintiffs in this action were homeowners seeking certification based on claims that the impact resistant glass installed in their homes was defective. The defendants (or more accurately the third-party defendants who actually manufactured the products) successfully argued that individualized issues predominate because the jury must determine, on a house by house basis, whether the defective resin in the windows was the legal cause of the damages for each pane of glass. | read more
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June 26, 2008 4:43 PM GMT | Posted by Dean Morande
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Variations in contract law across the nation, along with factual issues over whether unpaid work was actually performed, led to a finding that individualized issues of both law and fact predominated over issues common to the proposed class. | read more
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June 26, 2008 4:41 PM GMT | Posted by Dean Morande
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In In re Managed Care Litigation, No. 00-1334-MD, 2008 WL 2329448 (S.D. Fla. June 4, 2008), the court decided that an opt-out notice containing (1) the name of the person signing the notice, (2) the name of the entity at issue, (3) the address of the entity, (4) a telephone number, (5) and the Federal Tax ID Number of the entity, was sufficient to establish that the entity at issue opted out of the prior class action and was not precluded from going forward with a separate action. | read more
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June 25, 2008 5:04 PM GMT | Posted by D. Matthew Allen
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According to the May 2008 ABA Journal, the Federal Judicial Center has released findings on which circuits experienced significant increases in the filing of class actions after the enactment of the Class Action Fairness Act. The bottom line is that more conservative circuits had fewer increases in filings and more liberal circuits had greater increases in filings. Do you want to know where the Eleventh Circuit fell? | read more
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June 23, 2008 12:59 PM GMT | Posted by Kathryn Christian
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In Eufaula Drugs, Inc. v. TDI Managed Care Services, Inc., No. 2:05-CV-293-MEF, 2008 WL 2428214 (M.D. Ala. June 17, 2008), the Middle District of Alabama granted a motion for class certification filed by pharmacies claiming that they were entitled to be reimbursed at a higher rate pursuant to their contracts with a pharmacy benefits manager.
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June 23, 2008 11:43 AM GMT | Posted by Kathryn Christian
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In Grimes v. Rave Motion Pictures Birmingham, L.L.C., No. 07-AR-1397-S, 2008 WL 2338131 (N.D. Ala. May 28, 2008), the Northern District of Alabama declared that the damages provisions of the Fair and Accurate Credit Transactions Act ("FACTA") violate the due process clause of the United States Constitution.
FACTA prohibits vendors from printing more than the last five digits of a customer's credit card number on a receipt. If the vendor fails to comply with FACTA, the customer is automatically entitled to "damages of not less than $100 and not more than $1,000" and is also entitled to recover punitive damages.
The defendants argued that they would go out of business if they had to pay the statutory damages under FACTA to all class members and that FACTA therefore deprived them of their property without due process of law. The court stated that, under FACTA, it could see "no honest way to avoid certifying a class" and "no honest way to approve a settlement that awards less than $100 to each class member." The court concluded that it "must follow Congress, even if it means bankruptcy for every business in the country, that is, of course, unless this Congressional enactment is invalid, as the court thinks it is." Read more about the court's reasoning by clicking the link below. | read more
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June 20, 2008 10:02 PM GMT | Posted by Kenya Reddy
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Milberg Weiss to pay $75 million to settle federal kickback case involving class-action lawsuits.
Illinois appeals court reinstates $120 million judgment against owners of the former Clark Oil refinery, reversing trial court’s decision to dissolve the class-action suit after a verdict was reached.
Investor files class action lawsuit against Wells Fargo, claiming the company misrepresented the liquidity of auction-rate securities.
Judge certifies class action in lawsuit challenging Wisconsin’s policy of allowing in-state law school graduates to become lawyers without passing the bar exam.
Jury orders Kia Motors Corporation to pay New Jersey car owners $6 million for breach of warranty arising from defective brake systems.
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June 20, 2008 4:00 PM GMT | Posted by D. Matthew Allen
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In a brief per curiam decision in TT of Longwood, Inc. v. Briggs, Case No. 5D07-8391, the Fifth District today reversed a circuit court discovery order that granted merits discovery prior to class certification, citing its prior decision in Policastro v. Stelk, 780 So. 2d 989 (Fla. 5th DCA 2001). | read more
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June 13, 2008 8:35 PM GMT | Posted by D. Matthew Allen
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As our dear readers know, a year ago, in Lowery v. Alabama Power, the Eleventh Circuit significantly modified removal law in this circuit by requiring that documents proving the amount in controversy must come from the complaint, other papers received by the plaintiff, a contract, or pre-removal pleadings and discovery.
Did the Seventh Circuit's decision in Spivey v. Vertrue, Inc., -- F.3d --, 2008 WL 2357099 (7th Cir. June 11, 2008) speak to the issue? | read more
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June 13, 2008 8:15 PM GMT | Posted by D. Matthew Allen
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Class Action Fairness Act lawyers know that 28 U.S.C. s. 1453(c)(1), the appeal provision of CAFA, states that application to appeal a remand order must be made "not less than 7 days after entry of the order." Most courts, including the Eleventh Circuit, have stated that this is a scrivenor's error such that "less means more" and the application to appeal must be made within 7 days of the order. See Miedema v. Maytag Corp., 450 F.3d 1322, 1326 (11th Cir. 2006). What does Judge Easterbrook of the Seventh Circuit say about this? | read more
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June 12, 2008 8:07 PM GMT | Posted by D. Matthew Allen
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Is a product defect case alleging that an autombile braking system design defect causes premature wear on the front brakes and therefore fails to meet customer expectations amenable to class treatment? Not on the facts of record in Kia Motors America Corp. v. Butler, -- So. 2d --, 2008 WL 2356354 (Fla. 3d DCA June 11, 2008). | read more
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June 6, 2008 4:39 PM GMT | Posted by Fentrice Driskell
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In Stahl v. Mastec, Inc., No. 8:05-cv-1265-T-27TGW, 2008 WL 2267469 (M.D. Fla. May 20, 2008), class counsel sought an award of attorneys’ fees, costs, and expenses equal to 28.8% of the gross settlement amount of $13,137,365.00. | read more
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June 4, 2008 9:46 PM GMT | Posted by Blaise Huhta
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H&R Block owned company sued in class action suit for allegedly targeting minorities in Massachusetts for subprime mortgages.
AT&T agrees to refund unauthorized third-party charges for ring tones in Florida.
Florida attorney files a class-action lawsuit against Bank of America alleging it over-charged customers when recalculating payments on adjustable-rate mortgages.
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May 29, 2008 11:00 PM GMT | Posted by Kathryn Christian
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In Massih v. Jim Morgan and Associates, Inc., 542 F. Supp. 2d 1324 (M.D. Ga. 2008), the Middle District of Georgia held that a class of insureds could not recover part of a one-time premium they paid for insurance covering any amounts they owed on their car loans after a total loss of their cars. The court granted the insurer's motion for judgment on the pleadings. Read more to discover the particular policy provision on which the court relied. | read more
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May 27, 2008 6:54 PM GMT | Posted by Joanna Garcia
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According to the Middle District of Alabama, the answer is a resounding "NO." In Siniard v. Ford Motor Co., --- F.Supp.2d ---, 2008 WL 2132078 (M.D. Ala. 2008), a product liability non-class action case, Chief Judge Fuller recently confirmed that "it is quite plain from the text of Lowery that the holdings of the case are not limited solely to cases removed under CAFA." | read more
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May 19, 2008 2:02 PM GMT | Posted by Kenya Reddy
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Texas mayors and business leaders file class-action lawsuit against Department of Homeland Security seeking an injunction to block work on construction of fence along the Mexican border.
Federal judge approves $40 million settlement in class action alleging Unum Group artificially inflated its stock price.
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May 16, 2008 9:56 PM GMT | Posted by Blaise Huhta
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Carrier faces class action lawsuit for allegedly fixing prices on shipping to and from Puerto Rico. A federal judge decides to dismiss a class-action lawsuit after the company last year issued the largest recall of full-size cribs in the United States. West Palm Beach Menorah Gardens cemetery will finally be rededicated Sunday, after two class action lawsuits alleging grave desecration settled for $100 million in 2003. A Santa Clara County judge has certified an overtime-related lawsuit against Sun Microsystems Inc. as a class action.
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April 22, 2008 4:25 PM GMT | Posted by D. Matthew Allen
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In Nelson v. Wakulla County, -- So. 2d --, 2008 WL 1774184 (Fla. 1st DCA April 21, 2008), Florida's First District Court of Appeal addressed several aspects of class action settlement practice: (a) the nature and method of disbursement from a common fund, (b) attorney's fees and costs, and (c) class notice. | read more
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April 11, 2008 3:52 PM GMT | Posted by Fentrice Driskell
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In Winn-Dixie Stores, Inc. Erisa Litigation, Nos. 3:04-cv-194-J-33MCR, 3:04-cv-308-J-33HTS, 3:04-cv-195-J-33JRK, 2008 WL 815724 (M.D. Fla. Mar. 20, 2008), the Court recently gave final approval to a settlement and a settlement class seeking damages for breach of fiduciary duty claims brought under the Employee Retirement Income Security Act of 1974 (ERISA). | read more
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April 9, 2008 5:47 PM GMT | Posted by D. Matthew Allen
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What happens to a class certification order when the named plaintiffs lack standing to bring their claims? As demonstrated in Ell-Cap/Diversified 75 Naples Estates v. Naples Estates Homeowners Ass'n, 975 So. 2d 577 (Fla. 2d DCA 2008), it gets vacated. | read more
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April 7, 2008 3:35 PM GMT | Posted by Kenya Reddy
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Florida nursing home residents file class action against State of Florida under Americans with Disabilities Act.
In current economy, attorneys specializing in securities class actions expect more lawsuits with smaller settlements.
In potential first, video game fan asks judge to certify class action involving online role-playing games.
Federal judge certifies class in lawsuit challenging the manner in which inmates held for minor offenses are searched at the Burlington County (PA) Jail.
Two weeks before final fairness hearing in California Ford Explorer lawsuit, consumer group files legal challenge questioning settlement's fairness.
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April 3, 2008 10:15 PM GMT | Posted by D. Matthew Allen
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Today, in McLaughlin v. American Tobacco Co., Docket No. 06-4666 cv (2d Cir. April 3, 2008), the Second Circuit REVERSED Judge Weinstein's controversial certification of a class of cigarette smokers who allegedly were deceived into believing that smoking light cigarettes was healthier than "full flavored" cigarettes. | read more
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March 31, 2008 3:21 PM GMT | Posted by D. Matthew Allen
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One often debated issue in class certification proceedings is how far into the merits is the court entitled to go to determine whether a class should be certified. Sometimes courts cite outdated statements in cases that the court is not permitted to delve into the merits. Other times, courts state that the plaintiff's allegations must be taken as true. Still others, courts decry a "battle of the experts" on class certification. But more frequently, courts are recognizing that such statements, if actually followed, would improperly crimp the court in determining whether a class really should or should not be certified. In In re New Motor Vehicles Canadian Export Antitrust Litig., -- F.3d --, 2008 WL 820922 (1st Cir. March 28, 2008), the First Circuit made a significant contribution to class action law in holding that the district court must, if necessary to determine the propriety of class certification, make a "searching" examination of the merits, including the weighing and evaluating of expert testimony. | read more
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March 21, 2008 10:29 PM GMT | Posted by Fentrice Driskell
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In a recent ruling in a securities class action case, Eastwood Enterprises, LLC v. Farha, Nos. 8:07-cv-1940-T-24 MSS and 8:07-cv-1993-T-24 TBM, 2008 WL 687351 (M.D. Fla. Mar. 11, 2008), the court determined that a consortium of five sophisticated institutional investors could serve as lead plaintiff. The court’s ruling came over the objections from other plaintiffs that the consortium formed solely to aggregate their losses and attain lead plaintiff status. | read more
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March 21, 2008 10:00 PM GMT | Posted by Fentrice Driskell
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In Duclos v. McDonough, No. 3:07-cv-249/MCR/MD, 2008 WL 466562 (N.D. Fla. Feb. 14, 2008), a prisoner proceeding pro se on claims that he was unable to obtain religion-compliant meals joined several other inmates as plaintiffs and labeled his complaint as a class action. The court concluded that a prisoner proceeding pro se “is inadequate to represent the interest of other inmates in a class action.” For that and other errors, the court dismissed the case without prejudice. | read more
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March 21, 2008 9:45 PM GMT | Posted by Fentrice Driskell
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Yes, according to the court in Rebman v. Follet Higher Education Group, Inc., No. 6:06-cv-1476-Orl-28KRS, 2008 WL 508156 (M.D. Fla. Feb. 21, 2008). | read more
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March 20, 2008 7:03 PM GMT | Posted by Blaise Huhta
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ACLU sues Palm Beach County schools over "dismal" graduation rates.
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March 20, 2008 11:43 AM GMT | Posted by Kathryn Christian
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In Charest v. Williams, No. 2:07cv984-MHT, 2008 WL 686621 (M.D. Ala. Mar. 7, 2008), a pro se inmate challenging the constitutionality of policies and procedures associated with parole eligibility, parole suitability, and parole consideration requested certification of a class of inmates. The court held that the inmate was not an adquate representative of the class, noting that "[w]hile a pro se litigant may bring his own claims to federal court, he may not litigate the claims of others." | read more
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March 19, 2008 3:00 PM GMT | Posted by Blaise Huhta
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Judge grants class-action status to lawsuit filed on behalf of county jail prisoners alleging that they were improperly treated.
Airborne, an herbal supplement company, will pay $23.3 million to settle a class-action lawsuit brought against the company for false advertising.
Court dismisses securities class action lawsuit filed against Ikanos Communications, Inc.
Dreier law firm commences securities class action lawsuit against PMI on behalf of investors.
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March 8, 2008 10:20 PM GMT | Posted by Kathryn Christian
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In Busby v. JRHBW Realty, Inc., 513 F.3d 1314 (11th Cir. 2008), the Eleventh Circuit held that an Alabama district court erred in denying certification of the plaintiff's RESPA claim. The plaintiff asserted that a brokerage fee charged at closing violated section 8(b) of RESPA because no services were performed in exchange for the fee. The district court refused to certify a class, concluding that individual issues of fact predominated since a determination of liability would require individualized analysis of the reasonableness of the charge. The Eleventh Circuit concluded that the district court used the wrong legal standard in analyzing certification because the plaintiff's claim was that there were no services performed in exchange for the fee, not that the fee was unreasonable. The court concluded that common issues predominated with respect to the plaintiff's section 8(b) RESPA claim. The court pointed out that "a simple binary determination of 'any services' or 'no services' is all that needs to be done." What did the court say about the fact that the plaintiff's attorney was also the closing attorney for the transaction at issue in the case? | read more
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March 8, 2008 10:11 PM GMT | Posted by Kathryn Christian
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In Burnett v. Alabama Pardons & Paroles, No. 2:08-CV-22-WKW, 2008 WL 544920 (M.D. Ala. Feb. 27, 2008), the Middle District of Alabama held that a state inmate's claim under 42 U.S.C. § 1983 challenging policies and procedures related to parole eligibility, parole suitability, and parole consideration could not be certified as a class action. Adopting the magistrate's recommendation, the court reasoned that the plantiff would not be able to fairly represent the class and that the common questions of fact did not predominate over questions affecting individual class members. | read more
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March 7, 2008 10:16 PM GMT | Posted by Dean Morande
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Only if the motion for class certification is unduly delayed, according to the Southern District in Sampaio v. People First Recoveries, LLC, No. 07-22436-civ, 2008 WL 509255 (S.D. Fla. Feb. 19, 2008). | read more
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March 6, 2008 7:21 PM GMT | Posted by D. Matthew Allen
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Can a putative class representative seek merits discovery prior to a class certification determination? In Commonwealth Land Title Ins. Co. v. Higgins, --- So.2d ----, 2008 WL 595923 (Fla. 1st DCA March 6, 2008), the First District joined the Fifth District in saying "no." | read more
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February 25, 2008 4:28 PM GMT | Posted by D. Matthew Allen
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Is it permissible for a class action to be prosecuted in a Florida county court? In Hernando County v. Morana, -- So. 2d --, 2008 WL 462039 (Fla. 5th DCA Feb. 22, 2008), the Florida Fifth District answered "no," unless the total aggregate amount in controversy is less than $15,000. | read more
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February 24, 2008 10:31 PM GMT | Posted by Kathryn Christian
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In Taylor v. XC Satellite Radio, Inc., No. CV-07-BE-0958-S, 2007 WL 4911184 (N.D. Ala. Nov. 30, 2007), XM Satellite Radio Inc. ("XM") radio service subscribers brought a class action against XM after they suffered a loss of radio reception when an operating satellite lost its signal. XM offered to pay subscribers credits amounting to more than twice the value of each subscriber's potential loss. The court held that the class action was moot because the entire class, i.e. all XM subscribers, had already been offered compensation amounting to more than what was requested--or even could be requested--as damages in the class action. The court's comments about the named plaintiffs' request for injunctive relief gently encouraged them to consider what type of relief they were really seeking. What did the court say? | read more
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February 24, 2008 10:01 PM GMT | Posted by Kathryn Christian
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Forgot to include an arbitration clause in your contract? No problem: according to the Northern District of Alabama, all you have to do is simply mail out a notice along with an arbitration clause, and you've got your arbitration agreement. In Milligan v. Comcast Corp., No. 7:06-CV-00809-UWC, 2007 WL 4885492 (N.D. Ala. Jan. 22, 2007), the Northern District of Alabama determined that an arbitration agreement mailed to cable service subscribers along with their monthly cable bill was binding and that the subscribers were therefore required to arbitrate their dispute with their cable service provider. How did the court reach this conclusion? | read more
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February 24, 2008 9:31 PM GMT | Posted by Kathryn Christian
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The Class Action Fairness Act ("CAFA") permits removal of class action cases to federal court if, among other things, the case was "commenced" on or after February 18, 2005. In May's Distributing Co. Inc. v. Total Containment, Inc., 523 F. Supp. 2d 1303 (M.D. Ala. 2007), the Middle District of Alabama adopted what it described as the "majority approach," holding that an amendment to a complaint does not "commence" a new action under CAFA if the amended complaint "relates back" to the original complaint under state law. What did the court ultimately decide? | read more
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February 24, 2008 8:15 PM GMT | Posted by Kathryn Christian
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In In re Home Builders Company et al., Nos. 1061760 and 1061762, 2008 WL 204447 (Ala. Jan. 25, 2008), mobile home purchasers who commenced American Arbitration Association ("AAA") arbitration proceedings argued that the arbitrator had the power to decide whether their construction defect claims could proceed on a class-wide basis. The Alabama Supreme Court agreed, reasoning that the parties had chosen the AAA Commercial Arbitration Rules to govern their dispute, and that Rule 3 of the Supplementary Rules for Class Arbitrations of the AAA stated that the arbitrator shall determine "whether the applicable arbitration clause permits the arbitration to proceed on behalf of or against a class." What did the court say about whether class-wide arbitration should ultimately be permitted? | read more
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February 19, 2008 1:32 AM GMT | Posted by Blaise Huhta
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British Airways and Virgin Airlines tentatively agree to settle class action lawsuit over alleged fixing of fuel surcharge prices.
Class action lawsuit by advocacy group on behalf of thousands of children in state custody seeks changes in Michigan’s foster care system.
Judge grants summary judgment and dismisses class action lawsuit alleging Tyson Foods knowingly hired illegal immigrants to save money on wages.
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February 11, 2008 10:39 PM GMT | Posted by Dean Morande
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Any time before a motion for certification, according to the Southern District in Grabein v. 1-800-Flowers.com, Inc., No. 07-22235-CIV, 2008 WL 343179 (S.D. Fla. Jan. 29, 2008). | read more
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February 11, 2008 3:37 PM GMT | Posted by Kenya Reddy
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Scripps Health settles class action involving pricing and collection practices for uninsured patients.
Pending settlement reached in class action against DeBeers diamond company.
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February 8, 2008 10:40 PM GMT | Posted by D. Matthew Allen
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The Florida appellate courts have been split on the issue of whether the individualized issue of reliance precludes class certification of a Florida Deceptive and Unfair Trade Practices Act claim, with the First District declaring that it does not. In a February 6, 2008 opinion in Egwuatu v. South Lubes, Inc., Case No. 1D07-0977 (Fla. 1st DCA 2008), the First District had occasion to review that determination. What did it do? | read more
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February 7, 2008 4:23 PM GMT | Posted by Dean Morande
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February 5, 2008 5:44 PM GMT | Posted by Dean Morande
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The Eleventh Circuit determined that, where a claim under the Real Estate Settlement Procedures Act involves only a determination of whether any services where provided at all—as opposed to whether the charge for services rendered was reasonable—individualized factual inquiries do not preclude class treatment. | read more
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February 5, 2008 5:40 PM GMT | Posted by Dean Morande
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February 5, 2008 5:39 PM GMT | Posted by Dean Morande
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The Southern District confirmed that claims under the Fair Labor Standards Act and Rule 23 can survive together in a single action only if each claim seeks a distinct form of relief. Resnick v. Oppenheimer & Co., Inc., No. 07-80609-CIV, 2008 WL 113665 (S.D. Fla. Jan. 8, 2008). | read more
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February 5, 2008 5:37 PM GMT | Posted by Dean Morande
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The Southern District shot down the Plaintiff’s attempt at prevailing party attorneys’ fees where the only basis for fees was the fact that the litigation was brought on a class-wide basis. The court made clear that a class action, by itself, does not present a proper basis for attorneys’ fees. Kallas v. Carnival Corp., No. 06-201150CIV, 2008 WL 111064 (S.D. Fla. Jan. 8, 2008). | read more
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February 5, 2008 5:35 PM GMT | Posted by Dean Morande
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February 1, 2008 11:00 PM GMT | Posted by Fentrice Driskell
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No, provided that the agreement affords the party seeking to avoid arbitration an opportunity to reject the terms and opt out of the agreement. | read more
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February 1, 2008 5:37 PM GMT | Posted by D. Matthew Allen
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Here's a bit of shameless self-promotion about our colleague Neil Kodski. Neil was one of three attorneys recently honored with The Most Effective Lawyer Award in the Class Action category at a luncheon sponsored by the Daily Business Review. Neil and his co-counsel won this honor for representing pro bono a class of Medicaid patients who had been denied reimbursement for the pharmaceutical Neurontin. Congratulations to Neil! For more information about the case, read on. | read more
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January 20, 2008 7:01 PM GMT | Posted by Kathryn Christian
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In Grosso v. Fidelity National Title Ins. Co., Case Nos. 3D07-466 and 3D06-2725 (Fla. 3d DCA Jan. 16 2008), the Third District Court of Appeal reversed the trial court's simultaneous certification of a class and approval of a class settlement in a title insurance reissue rate class action. The court held that the trial court erred in failing to apply "heightened scrutiny" to the issue of class certification, which was required since the trial court was certifying the class for settlement purposes only. Id. at 15. In reaching this conclusion, the court pointed out that pursuant to the terms of the settlement, the named plaintiff was to receive $5,000 "roughly one hundred times greater than what the other similarly situated class plaintiffs will receive." Id. at 7 (emphasis in original). The court also pointed out that the named plaintiff expanded the class definition in the settlement to include two related class lawsuits without giving notice to the named plaintiffs in those lawsuits. Id. at 15. | read more
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January 17, 2008 3:13 PM GMT | Posted by Kathryn Christian
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Bed Bath & Beyond was sued by a class of customers alleging that the company misrepresented the thread count in its bedding products by stating the number of threads in the warp and filling directions in one square inch of fabric, rather than the number of yarns. Not surprisingly, Bed Bath & Beyond denies any wrongdoing. But the customers' case is hardly hanging by a thread, especially for the named plaintiff and class counsel. According to the stipulation of settlement, Bed Bath & Beyond has agreed to a settlement in which it will pay the following, subject to court approval: Class members: $10 Bed Bath & Beyond gift card or a 20% discount certificate Named Plaintiff: $2,500 Class Counsel: $290,000
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January 8, 2008 5:56 PM GMT | Posted by Fentrice Driskell
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In Horton v. Metro. Life Ins. Co., 2007 WL 4557293 (M.D. Fla. Dec. 21, 2007), an individual, Jesus Fuentes, believed that he was a member of a plaintiff class to a class action that had been settled and upon which a final judgment dismissing with prejudice the claims of the class and discharging the defendant from any related claim by any member of the class had been entered. The court denied Mr. Fuentes’s motion as having been brought in the wrong court and the wrong lawsuit. | read more
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January 4, 2008 4:22 PM GMT | Posted by D. Matthew Allen
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In 2007, the Eleventh Circuit issued a landmark decision on removal practice in Lowery v. Alabama Power Co. We blogged the decision here. Yesterday, the court denied rehearing en banc and rehearing by the panel. 2008 WL 41327 (11th Cir. 2008). It looks as if Lowery will be with us for awhile. | read more
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January 3, 2008 5:59 PM GMT | Posted by Blaise Huhta
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Travelers Cos. pays $6 million to settle class action lawsuit alleging business steering in the commercial insurance market.
Two passengers who were on-aboard American Airlines jets on the ground for more than nine hours in 2006 have sued the airline and are seeking class certification.
Class action lawsuit brought against Intuit and H&R Block, tax software vendors, alleging they charged excessive fees for electronic filing.
Merrill Lynch is sued amid allegations it hid billions of dollars in losses during combination with First Republic Bank.
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December 20, 2007 7:34 PM GMT | Posted by Kathryn Christian
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In Hayes v. Chase Manhattan Bank, No. 1D06-4964, 2007 WL 4372541 (Fla. 1st DCA Dec. 17, 2007), the First District Court of Appeal decided that the plaintiff, whose request to opt out of a class settlement agreement was postmarked after the filing deadline imposed by the district court, was nonetheless not a member of a class and that his claims were therefore not barred by the doctrine of res judicata. | read more
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December 12, 2007 3:21 PM GMT | Posted by Dean Morande
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In accord with the vigorous opposition to the settlement, the Southern District of Florida determined that the proposed coupon settlement could not withstand the heightened scrutiny demanded by the Class Action Fairness Act. | read more
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December 12, 2007 3:12 PM GMT | Posted by Dean Morande
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In dealing with this issue of first impression, the Southern District of Florida says “no.” | read more
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December 12, 2007 3:10 PM GMT | Posted by Dean Morande
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The defendant in Romano v. Motorola, Inc., 07-civ-60517, 2007 WL 4199781 (S.D. Fla. Nov. 26, 2007), attempted to remove the class action aspect from the litigation by moving to strike the class allegations from the complaint, but, according to the district court, it failed to meet the difficult burden of demonstrating that class certification was “impossible.” In fact, the court really gave short shrift to the argument and provided little analysis in rejecting it. | read more
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December 12, 2007 3:07 PM GMT | Posted by Dean Morande
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The small class seemed to work to the plaintiffs’ advantage in satisfying the class requisites in this wage action. | read more
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December 7, 2007 9:40 PM GMT | Posted by Amanda Arnold Sansone
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No, according to a federal district court judge in the Middle District of Alabama. | read more
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December 7, 2007 9:24 PM GMT | Posted by Amanda Arnold Sansone
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Citing the twelve factors from Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir. 1974), a federal district court in Alabama awarded plaintiffs’ counsel fees in the amount of $1,697,058.00, which was 30% of the fund. | read more
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December 3, 2007 2:16 PM GMT | Posted by Kathryn Christian
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In Tampa Service Co. v. Hartigan, 966 So. 2d 465 (Fla. 4th DCA 2007), the plaintiff brought a class action against a labor pool company alleging that it violated Florida's Labor Pool Act. The trial court certified the class but failed to specifically name the subsections of Rule 1.220 under which the action was maintainable, in violation of its obligation under Rule 1.220(d)(1) to "state under whch subsection of subdivision (b) the claim or defense is to be maintained." The Fourth District Court of Appeal held that because the trial court's order tracked the language of Rule 1.220(b)(2) and (b)(3), it therefore "sufficiently complie[d]" with Rule 1.220(d). The Foruth District also refused to reverse the trial court's finding that the class representative was adequate, despite defendant's argument that the class representative had "serious credibility problems." | read more
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December 3, 2007 2:06 PM GMT | Posted by Kathryn Christian
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In S.D.S. Autos, Inc. v. Chrzanowski, Nos. 1D06-5664, 1D06-5662, 2007 WL 4145236 (Fla. 1st DCA Nov. 26, 2007), the First District Court of Appeal addressed the trial court's certification of the consumer class action described in the post below. Automobile lessees sued two automobile dealerships, alleging that they violated the Florida Deceptive and Unfair Trade Practices Act ("FDUTPA") by failing to disclose the true nature of fees the dealerships charged in connection with the lease. The First District affirmed certification of the class. | read more
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December 3, 2007 1:28 PM GMT | Posted by Kathryn Christian
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In S.D.S. Autos, Inc. v. Chrzanowski, Nos. 1D06-4293, 1D06-4294, 2007 WL 414522 (Fla. 1st DCA Nov. 26, 2007), the First District Court of Appeal held that arbitration provisions prohibiting the parties to an automobile lease agreement from asserting claims as a class action were unenforceable. In particular, the court held that the class action waiver in the arbitration agreement, which prohibited consumers from pursuing class relief for claims against motor vehicle dealers based upon alleged of section 501.976, Florida Statutes (2005), was "irreconcilably at odds with the remedial purposes of FDUTPA, contrary to the public policy of this state, and unenforceable for that reason." | read more
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November 15, 2007 8:24 PM GMT | Posted by Blaise Huhta
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Hannah Montana fan files class action lawsuit against fan club alleging it failed to provide members priority for concert tickets.
Class action lawsuit filed by consumer group accuses car rental companies of price fixing.
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November 5, 2007 4:28 PM GMT | Posted by Kenya Reddy
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Staples, Inc. reaches settlement with California-based assistant store managers in wage and hour class action lawsuit
District court certifies class in lawsuit against Sears, Roebuck and Co. over false claims about clothes dryers
Qwest Communications agrees to pay $411 million to shareholder groups that opted out of $400 million class action settlement
Plaintiffs’ firms set to ask for $460 million in fees stemming from Tyco securities class action lawsuit
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November 3, 2007 2:10 PM GMT | Posted by Kathryn Christian
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In Futch v. HSBC Bank, 2007 WL 3143715, No. CV407-109 (S.D. Ga. Oct. 24, 2007), the Southern District of Georgia held that 1) it lacked personal jurisdiction over a class action settlement claims administrator where the administrator's only contact with Georgia was mailing a claim form to the plaintiff's address in Georgia; and 2) the plaintiff's claims against the defendant bank were barred by the doctrine of claim preclusion. | read more
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October 25, 2007 2:23 AM GMT | Posted by Dean Morande
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With a nation-wide class of over 10 million members, the Southern District determined that the essentially non-monetary settlement was fair, adequate, and reasonable. | read more
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October 25, 2007 1:54 AM GMT | Posted by Dean Morande
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The Northern District answered with a resounding "no" in Jones v. Hartford Ins. Co., 243 F.R.D. 694 (N.D. Fla. 2006). | read more
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October 18, 2007 5:00 AM GMT | Posted by Fentrice Driskell
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In Kuehn v. Cadle Co., Inc., the court said no and instead concluded that the plaintiff must put forth evidence or a "reasonable estimate" of the size of the purported class. 2007 WL 809657, at *3 (M.D. Fla. Mar. 15, 2007). | read more
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October 17, 2007 8:44 PM GMT | Posted by Blaise Huhta
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Medtronic faces class action lawsuit over recalled defibrillators. Third-phase of class action trial ends with jury finding that DuPont should pay $55.5 million to clean-up property after being found liable for creating negligent waste site. Trial in class action case against Florida Department of Agriculture begins over whether Department improperly destroyed citrus trees in its bid to eradicate citrus canker lesions. U.S. Supreme Court denies appeal and allows class action lawsuit against Microsoft and Best Buy to proceed.
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October 11, 2007 10:40 PM GMT | Posted by Amanda Arnold Sansone
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An Alabama federal judge denied class certification for a group of adults with mental retardation who are unable to fully care for themselves and require varying degrees of care, treatment, and rehabilitation. However, he instructed the proposed class to file an amended motion for class certification with a proposed class that is subdivided to differentiate class members with procedural due process claims from those with substantive due process claims. | read more
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October 11, 2007 10:36 PM GMT | Posted by Amanda Arnold Sansone
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A recent Alabama district court decision shows the continued effect of the Eleventh Circuit’s Lowery decision on the removal of class actions to federal court. | read more
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October 6, 2007 3:42 AM GMT | Posted by Dean Morande
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In Kallas v. Carnival Corporation, No. 06-0115, 2007 WL 2819385 (S.D. Fla. Sept. 25, 2007), the plaintiffs moved to compel discovery they argued was relevant to certification issues. The court granted the motion, though it did not explicitly address the class issues. | read more
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October 3, 2007 10:56 PM GMT | Posted by Robert Ciotti
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What factors should be included in deciding the enforceability of a class action arbitration waiver? Does the recoverability of attorneys fees preclude unconscionability? | read more
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October 3, 2007 8:07 PM GMT | Posted by Robert Ciotti
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Can differing state laws on the conscionability of class action waivers in arbitration defeat class certification of nationwide classes? | read more
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October 3, 2007 6:15 PM GMT | Posted by Blaise Huhta
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Blind shoppers may sue Target in class action suit claiming website was not accessible to blind shoppers.
Supreme Court deals blow to tobacco industry in case linked to Florida.
Jets fan files class action lawsuit against Patriots and Belichick for “deceiving customers” stemming from videotaping of signals by the Patriots during games.
Sonic and Storm season-ticket holders file class action lawsuit alleging team owners defrauded ticket holders.
EEOC files suit against financial services and media company Bloomberg, LP alleging it discriminated against female employees after they became pregnant and took maternity leave.
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October 2, 2007 4:23 AM GMT | Posted by Fentrice Driskell
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According to Bragg v. Bill Heard Chevrolet, Inc.-Plant City, the Court may approve a class action settlement when it is “‘fair, reasonable and adequate’ and not the product of collusion between the parties.” 2007 WL 2781105, at *2 (M.D. Fla. Aug. 28, 2007) (citing Strube v. American Equity, Investment Life Ins. Co., 158 Fed. Appx. 198, 201 (11th Cir. 2005)). | read more
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September 23, 2007 12:39 AM GMT | Posted by Fentrice Driskell
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In Grillasca v. Amerada Hess Corp., 2007 WL 2702334, at *1 (M.D. Fla. Sept. 14, 2007), the court declined to reconsider its denial of class certification, but acknowledged that its previous dismissal of the plaintiffs’ complaint should have been without prejudice. | read more
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September 20, 2007 1:40 PM GMT | Posted by D. Matthew Allen
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In one of a string of class actions filed against Florida automobile dealers related to the sale of an "etch" aftermarket product, a Middle District of Florida judge approved a classwide settlement of a class action against Crown Auto. | read more
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September 19, 2007 11:32 PM GMT | Posted by Fentrice Driskell
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The court in Gutescu v. Carey Int’l, Inc., 2003 WL 25586749, *4 (S.D. Fla. July 21, 2003) said no and instead engaged in a rigorous totality of the circumstances analysis to determine whether the potential plaintiffs were similarly situated. | read more
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September 17, 2007 7:45 PM GMT | Posted by Kenya Reddy
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Meat plant workers sue Homeland Security Department over raids.
District judge approves preliminary $30 million settlement against Sprint for fee overcharges.
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September 17, 2007 2:24 PM GMT | Posted by Dean Morande
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After determining based on inquiry notice that the class claims at issue were barred under both the old statute of limitations and the Sarbanes-Oxley Act’s (SOA) amended statute of limitations, the Eleventh Circuit did not have to answer this interesting question. | read more
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September 11, 2007 7:30 PM GMT | Posted by D. Matthew Allen
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In an article published before the Eleventh Circuit's Dale v. Comcast decision last week to find unconscionable class action waiver provisions in certain mandatory arbitration agreements (see last post), the National Law Journal reported on a trend toward that direction. | read more
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September 11, 2007 4:13 PM GMT | Posted by D. Matthew Allen
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In a decision published September 4, 2007, the Eleventh Circuit held that a class action waiver in Comcast’s mandatory arbitration agreements with consumers was “substantively unconscionable” and therefore unenforceable. This decision represents a fundamental shift in the way the Eleventh Circuit views class action waiver clauses. | read more
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September 10, 2007 4:01 PM GMT | Posted by D. Matthew Allen
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An Orange County Circuit Judge denied class certification in a home construction case filed against Ryland Homes on January 16, 2007, in a 19 page decision just now published on Westlaw. | read more
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September 10, 2007 3:53 PM GMT | Posted by D. Matthew Allen
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The Second District confirmed that the answer, generally, is "no," in DeLoach v. Aird, -- So. 2d --, 2007 WL 2552071 (Fla. 2d DCA Sept. 7, 2007). | read more
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September 7, 2007 6:47 PM GMT | Posted by Joanna Garcia
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On August 24, 2007, the Middle District of Georgia held in Harp v. Wal-Mart Stores, Inc., 2007 WL 2417392 (M.D.Ga. 2007) that the thirty-day time period did not begin to run on November 30, 2006, the date Defendant received service of process, because the Plaintiff's complaint contained an unspecified damages claim and was therefore not removable. Rather, the thirty-day removal period began to run on May 1, 2007, the date of Plaintiff's deposition. "That is the date on which Defendant first received 'other paper' from the Plaintiff containing information relevant to the actual value of Plaintiff's claim." Id. at *2. | read more
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September 1, 2007 2:45 PM GMT | Posted by Dean Morande
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Must all wage-based claims proceed as a collective action under the Fair Labor Standards Act (FLSA), or are there circumstances where such claims can be brought as a regular class action under Rule 23(b)(3)? The Eleventh Circuit determined that certain wage-based claims under the Migrant and Seasonal Agricultural Worker Protection Act (AWPA) can proceed as a Rule 23(b)(3) class. | read more
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August 23, 2007 6:33 PM GMT | Posted by Blaise Huhta
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Class action suit claims that people with disabilities are being forced into nursing homes instead of having the option of home or community-care because of state funding choices.
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August 23, 2007 3:05 PM GMT | Posted by Amanda Arnold Sansone
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In Eslava v. Gulf Telephone Co., __ F. Supp. __, Case No. 04-00297-KD-B, 2007 WL 2298222 (S.D. Ala. Aug. 7, 2007), the Court said no. | read more
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August 23, 2007 3:01 PM GMT | Posted by Amanda Arnold Sansone
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According to a federal district judge in the Southern District of Alabama, the answer is no. | read more
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August 22, 2007 12:26 AM GMT | Posted by Fentrice Driskell
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In Miller v. R.J. Reynolds Tobacco Co., Inc., 2007 WL 2399184 (S.D. Fla. Aug. 17, 2002), the Court said yes. | read more
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August 22, 2007 1:12 PM GMT | Posted by Kathryn Christian
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According to an article in the New York Sun, a recent decision to drop an appeal of a court-approved $75 million class action settlement was made after defendant American Express agreed to pay another $3 million. | read more
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August 19, 2007 12:33 AM GMT | Posted by Fentrice Driskell
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In Fuller v. Home Depot Services, LLC, 2007 WL 2345257 (N.D. Ga. Aug. 14, 2007), the Court said yes. | read more
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August 14, 2007 11:43 PM GMT | Posted by Fentrice Driskell
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In Jones v. TT of Longwood, Inc., 2007 WL 2298020 (M.D. Fla. Aug. 7, 2007), the Court said yes. | read more
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August 14, 2007 8:45 PM GMT | Posted by Kenya Reddy
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Nevada Supreme Court rules unnamed class members have standing to object to and appeal class settlement.
Investors file class action suit against Pozen, based on failure to obtain FDA approval of migraine drug.
Toy recall spurs class action against Mattel, Inc. and Fisher-Price Inc.
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August 11, 2007 9:26 PM GMT | Posted by Dean Morande
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Can a proposed class have enough members to make joinder impractical, yet the numerosity requirement remains unsatisfied? That is exactly what happened in this Middle District of Florida decision. | read more
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August 11, 2007 2:26 PM GMT | Posted by Kathryn Christian
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Courts have noted "Florida’s aversion to class action treatment for breach of contract or fraud claims." Broin v. Philip Morris Co., Inc., 641 So. 2d 888 (Fla. 3d DCA 1994). However, some Florida courts have certified classes involving breach of contract claims. Below is a collection of Florida cases involving class certification of breach of contract claims. | read more
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August 10, 2007 8:01 PM GMT | Posted by D. Matthew Allen
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We have received two comments on yesterday's post concerning the Third District's Masztal case. | read more
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August 9, 2007 7:06 PM GMT | Posted by D. Matthew Allen
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In City of Tampa v. Addison, -- So. 2d --, 2007 WL 2254577 (Fla. 2d DCA Aug. 8, 2007, Florida's Second District Court of Appeal said yes. | read more
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August 8, 2007 11:47 PM GMT | Posted by Blaise Huhta
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Rhode Island Supreme Court adopts narrow policy on standard of review for collateral attacks on a foreign class action.
Class-action suit against Qwest Communications alleging illegal withholding of overtime pay is conditionally certified.
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August 8, 2007 7:22 PM GMT | Posted by D. Matthew Allen
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In Masztal v. The City of Miami, an opinion issued today, the Third District ordered the Adorno & Yoss law firm to disgorge a $3.5 million settlement amount for what the court called a "breach of fiduciary duty" to an uncertified, putative class of Miami taxpayers. | read more
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August 8, 2007 5:23 PM GMT | Posted by Amanda Arnold Sansone
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According to a district judge in the U.S. District Court for the Middle District of Alabama, the answer is no. | read more
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August 3, 2007 9:34 PM GMT | Posted by Kenya Reddy
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Plaintiffs accuse Wells Fargo of discriminatory lending.
Lexus sued over air-bag systems.
Class certification granted to homeless residents alleging City of Fresno destroyed their personal property.
Novartis Faces Class Action Over Sex Bias.
Sun-Times media group settles securities class actions for $30 million.
FDA’s ruling on Avandia likely to prevent wave of class actions.
Judge throws out $17 million verdict against American Family Insurance in class action suit involving after-market auto parts.
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August 2, 2007 6:28 PM GMT | Posted by Kenya Reddy
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Securities class action filed against Bioenvision, Inc.Possible settlement of Enron class action could result in largest ever settlement of securities class action.
Nike Inc. settles class action alleging racial discrimination for $7.6 million.
Wisconsin judge approves $300,000 settlement of class action against slumlord.
Less than a month after iPhone’s release, customer files class action against Apple, Inc.
Judge dismisses class action involving child slavery allegations.
Class action alleges Postal Service sold workers’ personal information.
Second employee overtime lawsuit filed against IBM.
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July 25, 2007 2:48 AM GMT | Posted by Dean Morande
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When is a lawsuit filed after a class action settlement barred by res judicata? The Eleventh Circuit made clear that, when the notice is constitutionally sufficient and the claims brought by class members are covered by the settlement agreement, general res judicata principles will bar the subsequent suit. | read more
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July 24, 2007 6:54 PM GMT | Posted by Blaise Huhta
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Former Employee of Pfizer who was among 17,000 Workers whose Personal Data was Posted Online is Suing the Drug Company and Seeks Class Action Status for the Case.
Lawsuit Alleges “Shameful Failures” of VA in Providing Medical and Mental Healthcare to Servicemen and Women.
Season Ticket Holder Files Class Action Suit against San Diego Chargers Accusing Team of Unjust Enrichment for Playoff Refund Plan.
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July 20, 2007 11:50 PM GMT | Posted by Fentrice Driskell
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In Berry v. Budget Rent A Car Systems, Inc., 2007 WL 2050994 (S.D. Fla. July 17, 2007), the court said no. | read more
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July 20, 2007 7:09 PM GMT | Posted by Kenya Reddy
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Judge asked to approve $6 million settlement in junk fax class action against Verizon Wireless.
NAACP files class action against mortgage lenders alleging bias against blacks.
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July 20, 2007 6:45 PM GMT | Posted by Robert Ciotti
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Does an agreement to reimburse a successful complainant's attorneys fees overcome the otherwise substantive unconscionability of an aribtration provision's class action waiver? | read more
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July 20, 2007 3:54 PM GMT | Posted by Robert Ciotti
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Is an arbitration provision barring class actions unconscionable even where there is only a minimal showing of procedural unconscionability? | read more
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July 18, 2007 4:11 PM GMT | Posted by Kenya Reddy
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Judge certifies class in suit against heavy construction vehicle maker Caterpillar Inc.
Judge approves $49 million settlement in Bar/Bri class action, but nixes incentive payments to class representatives.
Plaintiff files class action suit against maker of Snapple for product mislabeling.
Wisconsin Supreme Court rules antitrust class action against Bayer Corp. may proceed.
Farm workers receive $1.9 million judgment in class action alleging federal labor law violations.
Walgreen’s settles discrimination suit for $24 million.
AT&T loses bid to block class action suit alleging wireless customers were overcharged for roaming fees.
Diary farmers file antitrust class action against Dairy Farmers of America Inc.
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July 17, 2007 9:42 PM GMT | Posted by Robert Ciotti
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Must an arbitrator permit absent class members to intervene on the issue of whether an arbitration clause permits class actions? | read more
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July 17, 2007 9:01 PM GMT | Posted by Robert Ciotti
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Does a class-arbitration waiver violate New Jersey public policy? Although a New Jersey Supreme Court decision held that a class-arbitration waiver in a consumer arbitration agreement was unconscionable, the federal district court held that this did not establish a fundamental public policy. | read more
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July 16, 2007 7:17 PM GMT | Posted by Robert Ciotti
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May A Party Lose Its Arbitration Rights If It Misrepresents The Benefits Of A Proposed Class Settlement? | read more
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July 16, 2007 5:23 PM GMT | Posted by Amanda Arnold Sansone
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At a hearing on Class Counsel’s attorney fee application, the Court expressed concerns “with the quality of the evidence supporting an attorneys fees award, including inconsistencies in the evidence submitted, the amount claimed for Plaintiffs’ relatively unsuccessful motion for class certification, and the very small response of the class settlement.” Campos v. Choicepoint Services, Inc., Case No. 1:03-cv-3577-WSD, 2007 WL 2001797, at *2 (N.D. Ga. July 5, 2007). Of the 10,760 notices sent to class members, only 515 members made valid claims. See id.
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July 16, 2007 5:13 PM GMT | Posted by Amanda Arnold Sansone
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In Constant v. International House of Pancakes, Inc., 487 F. Supp. 2d 1308 (S.D. Ala. 2007), the district court remanded a slip-and-fall case to state court due to the defendant’s failure to establish the jurisdictional amount by a preponderance of the evidence. In noting the significance of its decision, the Court stated: “If this court turns out to be right when, by separate order, it grants the motion to remand filed by plaintiff, . . . the court will have come close to proving that the day of the knee-jerk removal of diversity tort cases from state to federal court within the three states comprising the Eleventh Circuit came to an end on April 11, 2007, when Lowery v. Alabama Power Company, 483 F.3d 1184 (11th Cir. 2007) [a class action case], was decided.” Id. at 1308-09.
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July 12, 2007 4:02 AM GMT | Posted by Dean Morande
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Does the relation back doctrine apply under the Class Action Fairness Act (“CAFA”)? Yes . . . at least in the Southern District of Florida in a decision where Florida law applies. | read more
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July 10, 2007 2:36 AM GMT | Posted by Dean Morande
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What happens when a district court vacates its order denying certification and then reenters that same order so that the plaintiffs can timely file a petition for permission to appeal? After evoking images of an evangelical revival, the Eleventh Circuit held that the district court has no authority to circumvent the ten-day window provided by Rule 23(f). | read more
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July 5, 2007 3:00 AM GMT | Posted by Dean Morande
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Can a Statement of Policy (SOP) issued by HUD after the district court issued its original certification order be a proper basis for the district court to rethink its initial decision and decertify a class? The Eleventh Circuit says yes. | read more
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July 3, 2007 8:22 PM GMT | Posted by Kenya Reddy
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Oscar Mayer workers file class action seeking back pay for time spent changing in and out of protective gear.
Parmalat to appeal district court’s refusal to dismiss investor class action.
Court dismisses shareholder class action against Centene Corp.
District court denies summary judgment in class action alleging off-label sales of antipsychotic drug, Zyprexa.
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July 2, 2007 2:41 PM GMT | Posted by Kathryn Christian
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The United States Supreme Court recently held in a class action against a cigarette manufacturer that the cigarette manufacturer did not fall within the terms of the federal officer removal statute due to its testing and advertising of tar and nicotine levels in its cigarettes. Thus, the claim brought by consumers was not removable to federal court. | read more
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June 26, 2007 2:17 PM GMT | Posted by Dean Morande
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Where the main issue in the litigation was the reasonableness of individual charges for hospital services, the Southern District found most of the requirements for class certification lacking. | read more
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June 25, 2007 3:08 PM GMT | Posted by Amanda Sansone
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According to a federal judge in the Southern District of Alabama, the answer is no.
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June 25, 2007 11:34 AM GMT | Posted by Kathryn Christian
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Plaintiff claimed damages of $4,999,999 in an effort to avoid removal under the Class Action Fairness Act, which permits federal courts to exercise jurisdiction over class actions where the amount in controversy exceeds $5,000,000. The Northern District of Ohio held that it was the defendant's burden to prove that the plaintiff's damages calculation was inaccurate, even when the plaintiff had alleged damages of $1 less than the jurisdictional amount. | read more
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June 24, 2007 5:38 PM GMT | Posted by Kathryn Christian
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In Tellabs, Inc. v. Makor Issues & Rights, Ltd., No. 06-484, 2007 WL 1773208 (June 21, 2007), the United States Supreme Court resolved a disagreement among the Circuits concerning whether and to what extent a court must consider competing inferences in determining whether a securities fraud complaint gives rise to a "strong inference" of scienter such that it satisfies the heightened pleading requirements of the Private Securities Litigation Reform Act. | read more
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June 22, 2007 8:17 PM GMT | Posted by Kenya Reddy
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United States Supreme Court ruling grants investment banks broad antitrust immunity
U.S. wheat growers file third antitrust class action against Australian wheat exporter AWB
Humane Society files its first class action lawsuit in 53-year history, claiming pet store sold sick puppies
Eleventh Circuit affirms ruling in favor of UnitedHealth Group in 1999 class action filed by doctors
Lawyer files class action suit to shut down online attorney rating service Avvo
Lawyers object to proposed settlement in BarBri class action suit
Judge denies class certification in suit against 3M over water pollution
Debate over “hot fuel” leads to filing of class action lawsuits in several states
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June 20, 2007 9:27 PM GMT | Posted by Amanda Arnold Sansone
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A United States District Court Judge in the Middle District of Alabama declined to certify the class of juvenile inmates because the Rule 23(b)(3) predominance requirement was not met. | read more
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June 19, 2007 10:30 PM GMT | Posted by Amanda Arnold Sansone
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Although not a class action case, a recent Alabama district court decision shows the effect of the Eleventh Circuit’s Lowery decision on the removal of actions to federal court. | read more
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June 19, 2007 10:23 PM GMT | Posted by Amanda Arnold Sansone
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An Alabama federal court concludes that a litigant’s pro se status renders him ill-suited to fairly and adequately represent the interests of a class. | read more
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June 19, 2007 9:37 PM GMT | Posted by Amanda Arnold Sansone
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According to a district court in the Southern District of Alabama, the answer is no. | read more
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June 19, 2007 2:22 PM GMT | Posted by Kathryn Christian
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Investors brought a class action suit alleging that members of an underwriting syndicate violated federal antitrust laws by agreeing among themselves to impose harmful conditions on potential investors during an initial public offering, such as anticompetitve, excessive commissions. The United States Supreme Court addressed the circumstances under which federal securities laws implicitly preclude the application of antitrust laws. | read more
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June 19, 2007 6:14 AM GMT | Posted by Dean Morande
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Even before the class certification determination, Pfizer is successfully knocking out claims and potential class representatives in this suit alleging false advertising of the widely-prescribed cholesterol reducing drug Lipitor. | read more
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June 19, 2007 6:05 AM GMT | Posted by Dean Morande
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The defendants in this securities litigation were facing a potential class action suit based on allegedly misleading prospectuses. Without even reaching the merits, however, they managed to have the entire action dismissed by taking out the class representatives on statute of limitations grounds. | read more
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June 19, 2007 5:59 AM GMT | Posted by Dean Morande
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The Southern District of Florida managed to find no less than three fatal deficiencies in plaintiff’s motion for class certification based on claims that Home Depot’s damage waiver provision in its tool rental agreements was deceptive. | read more
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June 18, 2007 10:04 PM GMT | Posted by Kenya Reddy
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GlaxoSmithKline faces investor class action over misrepresentations about safety of diabetes drug Avandia
Shareholder class action filed against biopharmaceutical corporation Telik, Inc.
New York, Missouri courts split on whether to certify class actions alleging unpaid wages at Wal-Mart
Morgan Stanley pays $4.4 million to settle class action suit with brokerage clients over precious metals
United States, Canada undergoing role reversal when it comes to class actions
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June 18, 2007 9:19 PM GMT | Posted by Blaise Huhta
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The United States Supreme Court in a unanimous opinion reversed the Eighth Circuit and said the fact that a federal agency “directs, supervises and monitors” a private firm’s activities in great detail does not bring that company within the scope of the Federal Officer Removal Statute, 28 U.S.C. § 1442(a)(1). | read more
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June 12, 2007 8:30 PM GMT | Posted by Robert Ciotti
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Does an arbitration clause that precludes class actions have a role to play in preemption and venue transfer decisions? | read more
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June 12, 2007 5:37 PM GMT | Posted by James R. Wiley
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Is a district court bound by the plaintiffs’ allegations and affidavits that the workplace circumstances of other employees are “similarly situated” to their own, which would allow the other employees to join the plaintiffs’ wage-and-hour action? The answer is “no” and has significant implications limiting the scope of wage-and-hour claims before they can go to trial. In the context of a Fair Labor Standards Act suit alleging that employees were not paid for all the compensable time they worked, the Eleventh Circuit held that the district court did not abuse its discretion in decertifying the collective action. Anderson v. Cagle’s, Inc., -- F.3d --, 2007 WL 1662662 (11th Cir. June 11, 2007). | read more
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June 12, 2007 4:24 PM GMT | Posted by Blaise Huhta
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Philip Morris bid to have class action suit tried in federal court blocked by U.S. Supreme Court.
Lawsuit seeking class action status filed against Advanced Medical Optics, Inc. after voluntary recall of contact lens solution.
Federal Judge gives go-ahead to class action suit against UnitedHealth Group and its former chief executive.
The Connecticut Department of Children and Families has agreed to settle a federal class action lawsuit by spending $10 million over the next three years to improve services for mentally ill children in foster care.
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June 10, 2007 10:32 PM GMT | Posted by D. Matthew Allen
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Mark Herrmann of Jones Day (and Curmudgeonly advice fame) and Jim Beck of Dechert, LLP blog at the Drug and Device Law Blog. I urge you to go there regularly: http://druganddevicelaw.blogspot.com/. They have written an excellent post on inconsistent standards between Fed. R. Civ. P. 23(b)(1)(a) and conflict preemption in drug and device cases. As bloggers say, "Read the whole thing." | read more
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June 8, 2007 2:38 PM GMT | Posted by D. Matthew Allen
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We know that a Florida state court class certification decision is discretionary with the trial court and subject to review on an abuse of discretion standard. But what does this mean in practice? | read more
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June 5, 2007 9:25 PM GMT | Posted by Robert Ciotti
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Is a AAA arbitrator's clause construction award merely an interlocutory ruling that a District Court lacks jurisdiction to review? | read more
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June 5, 2007 6:04 PM GMT | Posted by Kenya Reddy
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Professional appraisers file federal class action against mortgage technology firm.
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June 5, 2007 2:30 PM GMT | Posted by D. Matthew Allen
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Does the term "willfulness" refer only to a knowing violation of a statute or does it also cover reckless ones as well? The answer to this question often has implications for class actions since reckless conduct, in some situations, can be subject to common proof, while subjective motivation arguably cannot. In the context of a Fair Credit Reporting Act class action, the Supreme Court resolved this issue. | read more
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June 1, 2007 8:09 PM GMT | Posted by Kathryn Christian
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Under what circumstances will a court refuse to certify an insured's class action claim for reimbursement under his or her insurance policy? | read more
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June 1, 2007 5:04 PM GMT | Posted by Blaise Huhta
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A Federal Judge Approved A $2.35 Million Dollar Settlement In The Class-Action Lawsuit By Aggrieved Readers Against Publisher Random House And Author Of A Million Little Pieces, James Frey.
Suit Seeks Class Action Status And Claims Alamo Overcharges Customers With Hidden Fees.
New Jersey Supreme Court Revives Class Action Suit Against Wal-Mart.
Class Action Lawsuit Alleging Pinellas Schools Failed To Properly Educate Black Children Will Go To Trial In Clearwater After Compromise Reached Over Concerns of Racial Make-Up Of Jury Pool.
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May 25, 2007 3:19 PM GMT | Posted by Kenya Reddy
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Class action alleges price-fixing in railroad fuel surcharges.
Former and current black employees file class action lawsuit against Bank of America alleging racial bias.
Northern District of Georgia gives preliminary approval to settlement of class action against Immucor.
The United State Supreme Court dismisses antitrust class action against Verizon and three regional Bell companies.
Hotels.com faces class action lawsuit for failure to guarantee accessibility of advertised hotels. Blue Cross of California settles class action over cancellation of health insurance policies.
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May 15, 2007 6:23 PM GMT | Posted by Blaise Huhta
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Attorneys’ Fees Barred for One Lawyer because of Misconduct in Settlement of Diocese Class Action
Lawsuit Alleging Deceptive Practices Against Allianz is Given Class Action Status by Minnesota District Court
LAPD Sued Again Over Rally
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May 11, 2007 9:10 PM GMT | Posted by Kenya Reddy
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Federal judge blasts plaintiff’s counsel in denying class certification in suit against Oreck Direct
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May 11, 2007 8:00 PM GMT | Posted by Dean Morande
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The Southern District of Florida explained in no uncertain terms that adjudicating a proposed nationwide class action where the laws of all fifty states would be implicated would be "absurd and clumsy." | read more
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May 11, 2007 7:59 PM GMT | Posted by Dean Morande
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What is the numerosity threshold for the certification of a collective action under the Fair Labor Standards Act? Not twelve. | read more
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May 10, 2007 8:24 PM GMT | Posted by Robert Ciotti
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May a court reconsider its order sending class action claims to arbitration after the arbitrators have then dismissed those claims as not eligible for arbitration? | read more
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May 8, 2007 4:18 PM GMT | Posted by Kenya Reddy
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Proceeds from class action settlement between Microsoft and State of Florida will benefit state schools
British soccer league and independent music publisher Bourne Co. file class action lawsuit against YouTube
Ohio judge will hold settlement fairness hearing on Friday, May 11, 2007 in Carfax class action lawsuit
Software firm Quovadx Inc. settles final class-action lawsuit pending against the company
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May 8, 2007 4:05 PM GMT | Posted by Kathryn Christian
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The Class Action Fairness Act ("CAFA") was enacted on February 18, 2005. Section 9 of CAFA provides that the statute applies only to suits “commenced on or after the date of enactment of this Act": is there an exception to this requirement?
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May 8, 2007 2:13 PM GMT | Posted by Dean Morande
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The court in this Middle District of Florida decision made clear that discovery at the pre-certification stage is limited to issues bearing on the class certification decision--discovery aimed at merits or damages issues is not permitted. | read more
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May 7, 2007 3:51 PM GMT | Posted by Dean Morande
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The Middle District of Florida reenforced the principle that, no matter how it's pleaded, a claim that is actually based on fraudulent conduct is not suitable for class treatment. | read more
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May 7, 2007 2:02 PM GMT | Posted by Amanda Arnold Sansone
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In a short order, a District Judge adopted a Magistrate Judge's ruling that an Alabama inmate could not fairly represent a proposed class, and, therefore, denied class certification. | read more
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May 4, 2007 1:34 PM GMT | Posted by D. Matthew Allen
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In settlement discussions, we are frequently asked by our class action defendant clients whether they can obtain an agreement from class counsel not to represent future claimants in litigation against them. Is that permissible? No, according to rule 4-5.6(b) of the Rules Regulating the Florida Bar. In fact, according to yesterday's Florida Supreme Court opinion, entering into such an agreement could result in disbarment! | read more
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May 3, 2007 7:38 PM GMT | Posted by Kathryn Christian
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The last post in this series stated that a cause of action for fraud cannot be maintained as a class action in Florida state courts. What about the Eleventh Circuit? | read more
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April 30, 2007 6:44 PM GMT | Posted by Robert Ciotti
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After compelling arbitration of a particular claim on which it denied summary judgment, may a court opine on the merits of that claim? | read more
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April 27, 2007 6:45 PM GMT | Posted by Kenya Reddy
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Judge approves $63.8 million settlement in Paxil class action State Farm settles tornado class action after seven years of litigation 350 plaintiffs to receive $5000 apiece in settlement of class action alleging illegal strip-searches
Massachusetts banks file class action against T.J. Maxx owner over data theftMorgan Stanley settles gender bias class action for $46 million Wells Fargo settles subprime mortgage class action Two federal class actions filed against Vitamin Shoppe
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April 25, 2007 7:03 PM GMT | Posted by Kenya Reddy
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Class certification denied in tobacco case
Mentally ill prisoners file class action suit against State of California Tax-savings company agrees to pay $6 million to settle class action suit Oklahoma may become first state in nation with an “opt in” provision for class-action lawsuits
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April 25, 2007 6:34 PM GMT | Posted by D. Matthew Allen
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Florida's Second District Court of Appeal issued a new class certification decision in a Florida Deceptive and Unfair Trade Practices Act case against an automobile dealer. Want to know more? Click the link. | read more
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April 19, 2007 12:43 AM GMT | Posted by D. Matthew Allen
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I am at the Spring Meeting of the ABA Antitrust Section. Today, I attended a presentation on "Antitrust Litigation After The Class Action Fairness Act of 2005: The Experience So Far." Here's a report. | read more
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April 19, 2007 10:55 PM GMT | Posted by Blaise Huhta
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Motorola to pay $190 million in deal to settle securities fraud class action.
Former client files class action against lemon-law firm for mishandling of cases. Third class action lawsuit alleging company officials withheld information filed against Coast Financial Holdings Inc., parent company of Bradenton-based Coast Bank.
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April 17, 2007 8:11 PM GMT | Posted by Robert Ciotti
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Does an arbitration class action in one state bring in all potential claimants even if their contracts have different state forum provisions? | read more
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April 13, 2007 1:24 PM GMT | Posted by Matthew Allen
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Yesterday we summarized the salient points on mass action law from the Eleventh Circuit's Lowery v. Alabama Power opinion. Does the decision provide any important clarifications of removal law, either in the context of the Class Action Fairness Act or as a general matter? | read more
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April 12, 2007 5:27 PM GMT | Posted by Dean Morande
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The Eleventh Circuit cleared up some ambiguities in CAFA’s “mass actions” provision, including what it requires and where the jurisdictional burden lies. The court also determined that any defendant entitled to remove under CAFA can do so, regardless of whether any other defendants are permitted by law to remove the action. | read more
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April 11, 2007 9:38 PM GMT | Posted by D. Matthew Allen
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In recent months, several Florida state appellate courts have issued decisions reversing trial court class certification orders on the ground that the order was insufficiently specific. Here's another. | read more
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April 11, 2007 4:28 PM GMT | Posted by Kenya Reddy
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State of Texas settles long-running Medicaid class action suit.
Judge refuses to unseal records of how attorney’s fees award was divided in 2004 class action suit against Shell Oil Co.
Laid off employees file class action against Circuit City alleging age bias.
American class action lawyers swoop in on European cases.
After 10 years of litigation, $62.5 million judgment affirmed for farmers in consumer fraud class action against BASF.
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April 9, 2007 8:42 PM GMT | Posted by Amanda Sansone
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A state inmate in Alabama unsuccessfully sought to certify a class of all inmates transferred from the Alabama prison system to private correctional facilities. In his one page order, which was later adopted by the district judge, Magistrate Judge Charles S. Coody concluded that Mr. Grice could not fairly represent the class, and a class action was therefore improper. | read more
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April 4, 2007 11:40 PM GMT | Posted by Blaise Huhta
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ConAgra sued. The first suit seeking class action in the Peter Pan brand peanut butter recall was filed Wednesday.
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April 3, 2007 11:33 PM GMT | Posted by Blaise Huhta
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Microsoft sued over Windows Vista marketing. Proposed class action focuses on efforts by Microsoft and computer makers to avoid a lull in PC sales.
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March 30, 2007 6:59 PM GMT | Posted by Kenya Reddy
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Home builder faces class action lawsuit for conspiring to illegally finance unqualified purchasers to buy newly-constructed homes.
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March 27, 2007 7:18 PM GMT | Posted by Robert Ciotti
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California law overcomes provision that Delaware law governs when Delaware law would have precluded class action arbitration. | read more
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March 27, 2007 5:00 PM GMT | Posted by Robert Ciotti
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Does phrasing an arbitration clause in terms of "you" and "your" limit a claimant's ability to bring a class action in the arbitration? Does it matter that the respondent is to bear the arbitration costs? | read more
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March 27, 2007 4:26 PM GMT | Posted by Joanna Garcia
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In Barnes v. City of Atlanta, 639 S.E.2d 420 (Ga. App. 2006), the Georgia Appellate Court affirmed the trial court's rulings that Class I plaintiffs could only recover refunds for the three years preceding their re-certification, and that those lawyers who opted out of their class would not be responsible for the attorney fees of class counsel. The Georgia Supreme Court reversed. | read more
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March 27, 2007 4:24 PM GMT | Posted by Joanna Garcia
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Employer sued health care insurer for alleged overcharges for insurance renewal premiums for its group health insurance plan. The Superior Court dismissed the complaint based on ERISA preemption. The employer appealed. The Court of Appeals reversed, and held that: (1) claim of overcharging was not preempted by ERISA, and (2) employer was not required to exhaust administrative remedies on claim that overcharging violated statutory requirements for rating small groups. | read more
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March 27, 2007 4:20 PM GMT | Posted by Joanna Garcia
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Insured brought putative class action on behalf of persons who were entitled to, but were denied refund of unearned premium on credit insurance coverage upon early termination of their automobile loans. Credit insurer moved for summary judgment on ground of mootness. The court denied the motion and held that insurer's tender of refund to named plaintiff before class could be certified did not under facts moot controversy. | read more
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March 20, 2007 4:08 PM GMT | Posted by Robert Ciotti
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Maryland appeals court finds arbitration clause effectively prohibited both arbitration and litigation class actions. | read more
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March 19, 2007 10:02 PM GMT | Posted by Robert Ciotti
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Under AAA Rules, an arbitrator's decision on class certification is immediately appealable to a court -- but what standard of review applies? | read more
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March 19, 2007 9:20 PM GMT | Posted by Kathryn Christian
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This series of postings will address whether certain causes of action can be maintained on a class-wide basis under Florida and federal law. As to fraud, the law in Florida is well-settled: claims of fraud will not be certified for class treatment. The general rationale behind this rule is that individualized questions concerning reliance predominate over common issues. Cases reflecting this holding are listed below. Does the same hold true for federal courts? The next posting will address this question. | read more
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March 19, 2007 2:11 PM GMT | Posted by D. Matthew Allen
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One hot topic of late in class action law is whether a class action can occur in arbitration? And who decides? Have the Florida courts weighed in? | read more
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March 19, 2007 1:56 PM GMT | Posted by Kathryn Christian
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The Model Rules of Professional Responsibility and the Florida Rules of Professional Conduct both prohibit an attorney from taking on representation that involves a conflict of interest in the absence informed consent. How do these rules apply in the class action context, where absent and unnamed class members cannot give informed consent and waive such a conflict? | read more
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March 16, 2007 9:57 PM GMT | Posted by Blaise Huhta
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March 9, 2007 4:33 PM GMT | Posted by D. Matthew Allen
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On February 28, 2007, in Freedom Life Ins. Co. v. Wallant, -- So. 2d --, 2007 WL 6000629 (Fla. 4th DCA 2007), the Fourth District rejected the defendant Freedom’s second attempt to send the case to arbitration. | read more
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March 9, 2007 4:15 PM GMT | Posted by Kathryn Christian
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Prior to the enactment of Class Action Fairness Act (CAFA), it was well-established that each plaintiff had to prove that his or her claims against each defendant satisfied the amount in controversy requirement, unless the defendants were jointly liable 160; Is that still the case? | read more
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March 4, 2007 4:48 PM GMT | Posted by D. Matthew Allen
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On March 2, 2007, in Florida Health Sciences Center, Inc. v. Elsenheimer, Florida’s Second District Court of Appeal reminded class action litigants -- and trial courts deciding certification questions -- that a certification decision must be based on evidence, not merely allegations or argument. | read more
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March 4, 2007 4:45 PM GMT | Posted by D. Matthew Allen
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In State Dep’t of Highway Safety & Motor Vehicles v. Rendon, -- So. 2d --, 2007 WL 521156 (Fla. 3d DCA Feb. 21, 2007), the Third District joined the Second District in effectively ruling out class actions seeking money damages in refund litigation against the State. | read more
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February 28, 2007 11:54 PM GMT | Posted by D. Matthew Allen
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Aren't the class representatives supposed to bear the cost of notice of certification to the class? Not according to the Florida court in the circumstances of this decision. | read more
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February 19, 2007 3:38 PM GMT | Posted by D. Matthew Allen
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David Letterman has his top 10 lists. We have a top 5 list. This is a list of things NOT to do in settling a class action in federal court. Each item is followed by a “moral” (like in Aesop’s fables) and a brief explanation. | read more
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February 3, 2007 3:27 PM GMT | Posted by D. Matthew Allen
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On February 1, in Echevarria, McCalla, Raymer, Barrett & Frappier v. Cole, -- So. 2d --, 2007 WL 268769 (Fla. Feb. 1, 2007), the Florida Supreme Court ruled that the judicially created “litigation privilege” applies to claims alleging statutory violations as well as common law tort causes of action. While the specific ruling in the case is beyond the scope of this blog, the case nonetheless is of interest because of its class action context. | read more
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February 1, 2007 6:06 PM GMT | Posted by Dean Morande
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January 25, 2007 6:04 PM GMT | Posted by Dean Morande
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In Marino v. Home Depot U.S.A., Inc., No. 06-80343, 2007 WL 201260 (S.D. Fla. Jan 24, 2007), the court determined that having to apply 50 states' breach of contract laws meant the claim could not meet the predominance requirement and was not judicially efficient. | read more
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January 19, 2007 5:51 AM GMT | Posted by Dean Morande
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In this securities class action case under the Private Securities Litigation Reform Act of 1995 (PSLRA), five groups of plaintiffs filed competing motions for the appointment of lead plaintiff and for approval of their selection of counsel, but the plaintiff with the largest financial stake prevailed. Edward J. Goodman Life Income Trust v. Jabil Circuit, Inc., No. 8:06-CV-1716-T-23EAJ, 2007 WL 170556 (M.D. Fla. Jan. 18, 2007). | read more
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January 19, 2007 4:32 PM GMT | Posted by Blaise Huhta
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January 19, 2007 4:25 PM GMT | Posted by D. Matthew Allen
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In recent months, the Florida courts have issued several opinions in windstorm class actions. Here are two inter-related ones. | read more
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January 17, 2007 5:31 AM GMT | Posted by Dean Morande
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January 13, 2007 9:09 PM GMT | Posted by Amanda Sansone
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In Houston County Health Care Auth. v. Williams, __ So. 2d __, 2007 WL 80797 (Ala. Jan. 12, 2007), a group of women sought certification of a class of female patients whose breast augmentation procedure potentially led to implants that were contaminated with fungus. The trial court certified the class. However, due to the myriad of individual issues as to most of the claims, the Alabama Supreme Court vacated the trial court's class certification order. | read more
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January 1, 2007 8:45 PM GMT | Posted by Amanda Sansone
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In Wright v. Childree, __ So. 2d __, 2006 WL 3759345 (Ala. December 22, 2006), the Alabama Supreme Court reaffirmed that the trial court must conduct the rigorous analysis of determining whether the prerequisites of Rule 23(a) and (b) of the Alabama Rules of Civil Procedure are met prior to conditionally certifying a class for settlement purposes only.
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January 1, 2007 5:18 PM GMT | Posted by Amanda Sansone
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After two bench trials, two remedial decrees, numerous annual reports, and over twenty-five years of litigation, an Alabama federal court approves the parties' proposed settlement of desegregation lawsuit involving the public universities of the State of Alabama. | read more
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January 1, 2007 4:57 PM GMT | Posted by D. Matthew Allen
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Welcome to Classified Carlton Fields' Eleventh Circuit Class Action Blog. As the title suggests, this blog is dedicated to reviewing and analyzing class action cases arising out of the Eleventh Circuit, its district courts (Alabama, Georgia, and Florida), and the state courts of Alabama, Georgia, and Florida. We may discuss significant cases arising elsewhere, but this is our main focus.
Posts will typically consist of three types: (1) summaries of recent cases; (2) pointers to class action news stories of interest; and (3) short analysis pieces. We hope you find this blog useful!
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