Class Actions In The News

Posted On: August 28, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Actions Retain Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of claims against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 20 - 26, 2010, during which time 56 new class actions were filed in these California state and federal courts. While labor law class actions often account for more than half of all new class actions filed in these courts, this past week only 26 new labor law class actions were filed, representing 46% of the total number of new class actions filed. The only other categories to break the 10% threshold involved claims under California's Unfair Competition Law (UCL), which includes false advertising claims, with 13 new filings (representing 23% of the total number of new class actions filed), and alleged violations of federal securities laws, with 8 new filings (representing 14% of the total number of new class actions filed).

Posted On: August 21, 2010 by Michael J. Hassen Email This Post

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Surge In ADA Class Action Filings Insufficient To Dislodge Labor Law Class Actions From Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 13 - 19, 2010, during which time 56 new class actions were filed in these California state and federal courts. Labor law class actions generally top the list often accounting for more than half of all new class actions filed in these courts, but a surge in ADA class action filings coupled with balanced filings among several other categories caused employment-related class action cases to fall below 50%. During this reporting period, 22 new labor law class actions were filed, representing only 39% of the total number of new class actions filed. The only other category to break the 10% threshold involved claims under the American's with Disabilities Act (ADA), with 16 new filings (representing 29% of the total number of new class actions filed).

Posted On: August 14, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Again Claim Top Spot Among Categories Of Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 6 - 12, 2010, during which time 48 new class actions were filed in these California state and federal courts. Labor law class actions often account for more than half of all class actions filed in any particular week, and during this reporting period 27 new class actions (representing 56% of the total number of new class actions filed). The only other category to break the 10% threshold involved California's Unfair Competition Law (UCL), which includes false advertising with 11 new filings (representing 23% of the total number of new class actions filed).

Posted On: August 7, 2010 by Michael J. Hassen Email This Post

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Employment-Related Class Action Filings Again Above 50%, Holding Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 30 - August 5, 2010, during which time 54 new class actions were filed in these California state and federal courts. Labor law class actions generally top the list often accounting for more than half of all new class actions filed in these courts, and this yet again proved to be true. During this reporting period, 31 new labor law class actions were filed (representing 57% of the total number of new class actions filed). The only other category to break the 10% threshold involved California's Unfair Competition Law (UCL), which includes false advertising with 10 new filings (representing 19% of the total number of new class actions filed).

Posted On: July 31, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Filings Rise Above 50% And Maintain Top Spot Among Categories Of Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 23 - 29, 2010, during which time 47 new class actions were filed in these California state and federal courts. Labor law class actions returned to familiar territory, accounting for more than half of all class actions filed during this reporting period with 27 new class actions (representing 57% of the total number of new class actions filed). In distant second, the only other category to break the 10% threshold involved California's Unfair Competition Law (UCL), which includes false advertising with 5 new filings (representing 11% of the total number of new class actions filed).

Posted On: July 24, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Complaints Continue Below 50% Level But Again Hold Top Spot Among Categories Of Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 16 - 22, 2010, during which time 53 new class actions were filed in these California state and federal courts. Labor law class actions again took the top spot, with 23 new class actions (representing 43% of the total number of new class actions filed). The only other category to break the 10% threshold mirrored the class actions which broke the threshold last reporting period, involving alleged violations of California's Unfair Competition Law (UCL), which includes false advertising with 10 new filings (representing 19% of the total number of new class actions filed).

Posted On: July 17, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Complaints Fall Below 40% Level Among Categories Of Class Action Lawsuits Filed In California State And Federal Courts But Still Holds Top Spot Among New Class Action Filings

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 9 - 15, 2010, during which time 50 new class actions were filed in these California state and federal courts. Labor law class actions typically top this list, often account for well over half of the total number of new class actions filed during any particular week. This last week, however, employment-related class action lawsuits dropped substantially, falling below 40%. This past week, new labor law class actions accounted for only 19 of the new complaints filed (38% of the total number of new class actions filed). The only other categories to break the 10% threshold mirrored the class actions which broke the threshold last reporting period, involving alleged violations of California's Unfair Competition Law (UCL), which includes false advertising with 16 new filings (representing 32% of the total number of new class actions filed), and more "me too" class actions involving the Apple iPhone, with 6 new class action filings (12%).

Posted On: July 10, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Complaints Again Top 50% Level Among Categories Of Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 2 - 8, 2010, during which time 46 new class actions were filed in these California state and federal courts, despite the fact courts were closed for the July 4th holiday. While labor law class actions fell below the 50% threshold of new class action filings last week, during this reporting period employment-related claims rose. This past week, new labor law class actions accounted for 24 of the new complaints filed (52% of the total number of new class actions filed), once again topping the list. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising with 11 new filings (representing 24% of the total number of new class actions filed), and class actions involving the Apple iPhone, with 5 new class action filings (11%).

Posted On: July 5, 2010 by Michael J. Hassen Email This Post

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HAPPY JULY 4th FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy Independence Day. A new class action article will be published tomorrow.

Posted On: July 3, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Fall Below 50% Level But Continues As Top Category Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of lawsuits against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 25 - July 1, 2010, during which time 49 new class actions were filed in these California state and federal courts. Labor law class actions frequently top the list, often accounting for more than half of the new class action filings in any particular week. This past, week, however, new labor law class actions accounted for less than 50% of the total number of new class actions filed, but still managed to come in as the top category with 22 new class actions (representing 45% of the new class actions filed during this reporting period). The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising with 9 new filings (representing 18% of the total number of new class actions filed), and class actions alleging violations of federal securities laws, with 5 new filings (10%).

Posted On: June 26, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Filings Return To Post-50% Levels And Retain Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 18 - 24, 2010, during which time only 39 new class actions were filed in these California state and federal courts. While labor law class actions generally top the list by a wide margin -- often accounting for more than half of the new class action filings in any particular week -- for the past weeks new labor law class actions accounted for less than 50% of the total number of new class actions filed. This past week, however, class actions involving employment-related claims against exceeded 50% with 21 new filings (54%). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising with 11 new filings (representing 28% of the total number of new class actions filed).

Posted On: June 19, 2010 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Asserting Employment-Related Claims Remain Below Normal, But Labor Law Class Action Filings Continue To Hold Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of claims against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 11 - 17, 2010, during which time only 37 new class actions were filed in these California state and federal courts. Labor law class actions often account for more than half of the new class action filings in any particular week -- but during this reporting period only 18 new labor law class actions were filed, representing a relatively low 49% of the total number of new class actions filed. The only other categories that managed to break the 10% threshold were class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 7 new filings (representing 19% of the total number of new class actions filed) and class actions alleging violations of the Telephone Consumer Protection Act, with 5 new filings (representing 14% of the total number of new class actions filed).

Posted On: June 12, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Continue Hold Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 4 - 10, 2010, during which time 49 new class actions were filed in these California state and federal courts. While labor law class actions generally top the list by a wide margin -- often accounting for more than half of the new class action filings in any particular week -- this past week only 20 new labor law class actions were filed, representing a relatively low 41% of the total number of new class actions filed. The only other categories that managed to break the 10% threshold were class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, and class actions against Toyota arising out of alleged product defects, each with 6 new filings (representing 12% of the total number of new class actions filed).

Posted On: May 29, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Filings Remain Below Normal But Retain Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from May 21 - 27, 2010, during which time 48 new class actions were filed in these California state and federal courts. While labor law class actions generally top the list by a wide margin -- often accounting for more than half of the new class action filings in any particular week -- this past week only 20 new labor law class actions were filed, representing only 42% of the total number of new class actions filed. The only other category to break the 10% threshold involved alleged violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 5 new filings (representing 10% of the total number of new class actions filed).

Posted On: May 15, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Below Normal But Hold Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from May 7 - 13, 2010, during which time 51 new class actions were filed in these California state and federal courts. While labor law class actions generally top the list by a wide margin -- often accounting for more than half of the new class action filings in any particular week -- this past week only 22 new labor law class actions were filed, representing only 43% of the total number of new class actions filed. Three other categories managed to break the 10% threshold: class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new filings (representing 18% of the total number of new class actions filed); class actions against Toyota arising out of alleged product defects, with 7 new filings (14% of the total number of new class actions filed); and class actions alleging violations of federal securities laws, with 5 new filings (10% of the total number of new class actions filed).

Posted On: May 8, 2010 by Michael J. Hassen Email This Post

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From Extremes To Balance...New Class Action Lawsuits Bunched Into Three Groups But Labor Law Class Actions Barely Hold Top Spot Of New Class Action Filings During Past Week In California State And Federal Courts

To assist class action defense attorneys anticipate the types of claims against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from April 30 - May 6, 2010, during which time 50 new class actions were filed in these California state and federal courts. New labor law class actions often account for more than half of the new class action filings in any particular week, and last week was the only case that broke the 10% reporting threshold. This past week, however, there was remarkable balance in the filing of new class actions, with labor law class actions just taking the top spot with 12 new filings, representing only 24% of the total number of new class actions filed -- the lowest percentage in a very long time. Two other categories of cases broke the 10% threshold, with Unfair Competition Law (UCL) claims, which include false advertising claims, coming in a close second with 11 new filings (22%), and class action alleging securities fraud coming in third with 9 new filings (18%).

Posted On: May 1, 2010 by Michael J. Hassen Email This Post

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Pendulum Swings On Variety Of Class Action Filings During Past Week With Only Labor Law Class Action Filings Meeting Reporting Threshold For New Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from April 23 - 29, 2010, during which time 52 new class actions were filed in these California state and federal courts. New class actions alleging employment-related claims often account for more than half of the new class action filings in any particular week, though this not been true for the past several weeks. And last week we saw class action filings that covered a wide range of topics, with class actions covering four different categories meeting the 10% reporting threshold. But this past week only labor law class actions hit the 10% threshold, with 28 new filings, representing only 54% of the total number of new class actions filed.

Posted On: April 24, 2010 by Michael J. Hassen Email This Post

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Wide Range Of Class Action Filed During Past Week But Labor Law Class Action Filings Maintain Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they may have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from April 16 - 22, 2010, during which time 49 new class actions were filed in these California state and federal courts. Labor law class actions generally account for more than half of the new class action filings in any particular week, though has not been true for the past several weeks. During this past week, a wide range of class actions were filed but only 16 of them were labor law class actions, representing only 33% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 7 new filings (representing 14% of the total number of new class actions filed), class actions alleging violations of the federal Fair Debt Collection Practices Act (FDCPA), with 6 new filings (12% of the total number of new class actions filed) and 5 class actions (10% of the total number of new class actions filed) alleging antitrust violations, each of which were transferred into California as part of the In re Optical Disk Drive Products Antitrust Litigation action.

Posted On: April 17, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Again Below Normal But Labor Law Class Actions Retain Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from April 9 - 15, 2010, during which time 53 new class actions were filed in these California state and federal courts. While labor law class actions generally top the list by a wide margin -- often accounting for more than half of the new class action filings in any particular week -- this past week only 20 new labor law class actions were filed, representing only 38% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 12 new filings (representing 23% of the total number of new class actions filed), and class actions alleging violations of federal securities laws, with 6 new filings (11% of the total number of new class actions filed).

Posted On: April 10, 2010 by Michael J. Hassen Email This Post

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New Employment-Related Class Action Filings Remain Below Normal But Labor Law Class Actions Maintain Grip On Top Spot Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they may have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from April 2 - 8, 2010, during which time 53 new class actions were filed in these California state and federal courts. Generally labor law class actions top the list, and often account for more than half of the new class action filings in any particular week. Last week, however, only 17 new labor law class actions were filed (representing a paltry 38% of the total number of new class actions filed during that reporting period), and this week only 19 new labor law class actions were filed (representing only 36% of the total number of class actions filed during this reporting period). The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 14 new filings (representing 26% of the total number of new class actions filed), and class actions alleging antitrust violations, with 6 new filings (11% of the total number of new class actions filed).

Posted On: April 3, 2010 by Michael J. Hassen Email This Post

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Pendulum Swings As Labor Law Class Action Filings Again Drop Significantly But Still Top List Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from March 26 - April 1, 2010, during which time 45 new class actions were filed in these California state and federal courts. Class actions involving employment-related claims generally account for more than half of the new class action filings in any particular week, but during this reporting period only 17 new labor law class actions were filed, representing a remarkably low 38% of the total number of new class actions filed. The only other category to break the 10% threshold involved the bandwagon class actions against Toyota premised on product defect claims with 8 new class action lawsuits (18% of the new class actions filed during the reporting period).

Posted On: March 27, 2010 by Michael J. Hassen Email This Post

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Surge In Class Action Filings As Labor Law Class Actions Regain Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from March 19 - 25, 2010, during which time a surprisingly high number of new class actions -- 73 -- were filed in these California state and federal courts. As a general rule, labor law class actions easily top this list as they usually account for more than 50% of the new class action filed during any particular week. This number has been off during the past few weeks, but rebounded this reporting period. This past week, 36 new labor law class actions were filed, representing a respectable 49% of the total number of new class action filed. Three additional categories also broke the 10% threshold. The second highest number of new class action lawsuits filed alleged violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 13 new filings (representing 18% of the total number of new class actions filed). Next came the now-familiar claims against Toyota alleging various product liability claims, with 9 new class actions (12% of the total number of new class actions filed), followed by class actions alleging violations of federal securities laws, with 8 new class actions (11% of the total number of new class actions filed).

Posted On: March 20, 2010 by Michael J. Hassen Email This Post

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Second Weekly Drop In New Labor Law Class Action Filings Allow UCL Class Actions To Claim Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from March 12 - 18, 2010, during which time 48 new class actions were filed in these California state and federal courts. As a general rule, labor law class actions easily top this list as they usually account for more than 50% of the new class action filed during any particular week. Last week, only 13 new labor law class actions were filed, representing a meager 30% of the total number of new class actions filed, and those numbers carried into this week. Again, only 13 new labor law class actions were filed, representing only 27% of the total number of new class action filed during the past week. However, there were 18 new class action lawsuits filed alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, representing 38% of the total number of new class actions filed. The only other category to break the 10% threshold involved class actions against Toyota involving product liability claims, with 6 new lawsuits representing 13% of the new class actions filed during the reporting period.

Posted On: March 13, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Drop Significantly But Still Top List Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from March 5 - 11, 2010, during which time 44 new class actions were filed in these California state and federal courts. While class actions involving employment-related claims often account for more than half of the new class action filings in any particular week, this past week saw a substantial drop in such filings. During this reporting period, only 13 new labor law class actions were filed, representing a relatively paltry 30% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 10 new class action lawsuits (23% of the new class actions filed during the reporting period), and class actions alleging violations of federal securities laws, with 7 new filings (16% of the total number of class action filings).

Posted On: March 6, 2010 by Michael J. Hassen Email This Post

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Employment-Related Class Action Complaints Again Top Categories Of Class Action Lawsuits Filed In California State And Federal Courts During Past Week

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from February 26 - March 4, 2010, during which time 54 new class actions were filed in these California state and federal courts. Readers know well that labor law class actions generally top this list by a wide margin, and this yet again proved true though the percentage of such class action claims was lower than usual. During this reporting period, 25 new labor law class actions were filed, representing 46% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 11 new class action lawsuits (20% of the new class actions filed during the reporting period), and class actions alleging violations of federal securities laws, with 6 new filings (11% of the total number of class action filings).

Posted On: February 27, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Go Through The Roof -- Employment-Related Class Action Claims Maintain Hold On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist California class action defense attorneys anticipate the types of class actions against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from February 19 - 25, 2010, during which time an unusually high number of new class actions -- 65 -- were filed in these California state and federal courts. Labor law class actions generally top this list by a wide margin and often account for more than half of the total number of new class action lawsuits filed during any particular week, and this proved to be especially true for this past week. During this reporting period, 42 new labor law class actions were filed, representing 65% of the total number of new class actions filed. The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 10 new class action lawsuits (15% of the new class actions filed during the reporting period).

Posted On: February 13, 2010 by Michael J. Hassen Email This Post

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Surge In Bandwagon Product Defect Class Actions Against Toyota Insufficient To Unseat Employment-Related Class Actions From Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from February 5 - 11, 2010, during which time 50 new class action cases were filed in these California state and federal courts. While labor law class actions generally top this list by a wide margin and often account for more than half of the total number of new class action lawsuits filed during any particular week, this past week saw a flood of product defect class actions against Toyota. But even with the Toyota class actions, employment-related class action lawsuits maintained their grip on the top spot. During this reporting period, 24 new labor law class actions were filed, representing 48% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions against Toyota for product defects, with 9 new class actions (16% of the new class actions filed during the reporting period), and class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 8 new class action lawsuits (16% of the new class actions filed during the reporting period).

Posted On: February 6, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Actions Again Hold Top Spot For Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of lawsuits against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from January 29 - February 4, 2010, during which time 37 new class action cases were filed in these California state and federal courts. Readers of this Blog know that labor law class actions generally top this list by a wide margin and often account for more than half of the total number of new class action lawsuits filed during any particular week. During this reporting period, 16 new labor law class actions were filed, representing only 43% of the total number of new class actions filed. The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 12 new class action lawsuits (32% of the new class actions filed during the reporting period).

Posted On: January 30, 2010 by Michael J. Hassen Email This Post

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Vivendi Loses Securities Class Action: Jury Finds 57 Material Misrepresentations From October 2000 To June 2002

Jury Returns Verdict in Favor of Plaintiffs in Securities Class Action Against Vivendi Universal, S.A., Finding that 57 Public Comments Made between October 2000 and June 2002 were False

Attorneys are reporting that a jury has reached a verdict in the securities class action filed against Vivendi, though the court docket does not yet reflect that a verdict has been reached. In re Vivendi Universal, S.A. Securities Litig., United States District Court, Eastern District of New York, Case No. 1:02-cv-05571-RJH-HBP. The class action reportedly covers approximately one million investors, and damages are estimated to be in the billions of dollars. Vivendi promises to appeal the jury verdict.

Posted On: January 30, 2010 by Michael J. Hassen Email This Post

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Percentage Of New Unfair Competition Law/False Advertising Claims Rise But Labor Law Class Action Lawsuits Maintain Grip On To Top Spot For Class Action Lawsuits In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from January 22 - 28, 2010, during which time 47 new class action cases were filed in these California state and federal courts. Labor law class actions frequently top this list by a wide margin as they often account for more than half of the total number of new class action lawsuits filed. During this reporting period, there were only 21 new class actions alleging employment-related claims, representing a comparatively low 45% of the total number of new class actions filed. The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 15 new class action lawsuits (32% of the new class actions filed during the reporting period).

Posted On: January 23, 2010 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Hold On To Top Spot In Slow Week For Class Action Lawsuits In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from January 15 - 21, 2010, during which time only 31 new class action cases were filed in these California state and federal courts (due in part to the holiday). Labor law class actions often top this list by a wide margin and frequently account for more than half of the total number of new class action lawsuits filed. During this reporting period, there were only 16 new class actions alleging employment-related claims, representing 52% of the total number of new class actions filed. The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 8 new class action lawsuits (26% of the new class actions filed during the reporting period).

Posted On: January 16, 2010 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Surge Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from January 8 - 14, 2010, during which time 42 new class action cases were filed in these California state and federal courts. Generally, labor law class actions top this list by a wide margin as they frequently account for more than half of the total number of new class action lawsuits filed. During this reporting period, there were only 25 new class actions alleging employment-related claims, representing 60% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 4 new class action lawsuits (10% of the new class actions filed during the reporting period), and class actions alleging violations of the federal antitrust laws, with 4 new class actions (10% of the new class actions filed).

Posted On: January 9, 2010 by Michael J. Hassen Email This Post

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Slow Start To New Class Action Filings In 2010 But Labor Law Class Action Lawsuits Begin Year At Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from December 31, 2009 - January 7, 2010, during which time 35 -- a relatively small number of new class action cases -- were filed in these California state and federal courts. Labor law class actions generally top this list by a wide margin, frequently accounting for more than half of the total number of new class action lawsuits filed. During this reporting period, there were only 15 new class actions alleging employment-related claims, representing only 43% of the total number of new class actions filed. The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new class action lawsuits (26% of the new class actions filed during the reporting period), and class actions alleging violations of the federal Americans with Disabilities Act (ADA), with 4 new class actions (11% of the new class actions filed).

Posted On: December 31, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits End 2009 With Firm Hold On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Because of the holidays, this report covers the time period from December 18 - 30, 2009, during which time 59 new class action cases were filed in these California state and federal courts. Generally, labor law class actions top this list by a wide margin, as they frequently account for more than half of the total number of new class action lawsuits filed. During this reporting period, there were 29 new class actions alleging employment-related claims, representing only 49% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 16 new class action lawsuits (27% of the new class actions filed during the reporting period).

Posted On: December 19, 2009 by Michael J. Hassen Email This Post

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Percentage Of New Employment-Related Class Action Lawsuits Soar In Relation To Other Categories Of Class Actions Filed In California State And Federal Courts During Past Week

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from December 11 - 17, 2009, during which time only 30 new class action cases were filed in these California state and federal courts. Labor law class actions generally top this list by a wide margin, and this was particularly true during the past week. During this reporting period, there were 19 new class actions alleging employment-related claims (63% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 5 new class action lawsuits (17% of the new class actions filed during the reporting period).

Posted On: December 12, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Maintain Grip On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from December 4 - 10, 2009, during which time 41 new class action cases were filed in these California state and federal courts. Generally, class actions alleging employment-related claims top this list by a wide margin, often accounting for more than half of the total number of new class action lawsuits filed. This yet again proved to be the case. During this reporting period, there were 24 new class actions alleging employment-related claims (59% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new class action lawsuits (22% of the new class actions filed during the reporting period).

Posted On: December 5, 2009 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Employment-Related Claims Retain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Because of the Thanksgiving holiday, this report covers the time period from November 20 - December 3, 2009, during which time 71 new class action cases were filed in these California state and federal courts. Labor law class actions often account for more than half of the total number of new class action lawsuits filed in California, and generally top this list by a wide margin. During this reporting period, there were 33 new class actions alleging employment-related claims (46% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 17 new class action lawsuits (24% of the new class actions filed during the reporting period).

Posted On: November 26, 2009 by Michael J. Hassen Email This Post

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CLASS ACTION DEFENSE BLOG OFF FOR THANKSGIVING

The author of the Class Action Defense Blog is taking the day off for the Thanksgiving holiday. A new class action article will be published on Monday, November 30. Happy Thanksgiving, everyone!

Posted On: November 21, 2009 by Michael J. Hassen Email This Post

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Surge In Securities Class Action Lawsuits But Labor Law Class Actions Hold Top Spot Among Categories Of New Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from November 13 - 19, 2009, during which time 48 new class action cases were filed in these California state and federal courts. Labor law class actions almost always top this list, often by a substantial percentage and often accounting for well over half of the total number of new class actions filed in these California courts. During this reporting period, however, only 16 of the new class action lawsuits involved employment-related claims (representing a comparatively low 33% of the total number of new class actions filed). The only other categories to break the 10% threshold involved class actions involving securities claims, with 13 new lawsuits (27% of the total number of new class actions filed), and class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new class action lawsuits (19% of the new class actions filed).

Posted On: November 14, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Continue To Dominate Categories Of New Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of lawsuits against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from November 6 - 12, 2009, during which time 40 new class action cases were filed in these California state and federal courts. Class actions alleging employment-related claims generally top the list by a wide margin, often accounting for more than half of the total number of new class actions filed in these California courts. During this reporting period, there were 20 new class actions alleging employment-related claims (50% of the total number of new class actions filed). The only other categories to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 7 new class action lawsuits (18% of the new class actions filed during the reporting period), and class actions alleging violations of federal securities laws, with 5 new class action lawsuits (13% of the new class actions filed during the reporting period).

Posted On: November 11, 2009 by Michael J. Hassen Email This Post

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SLUSA Class Action Defense Cases–Segal v. Fifth Third Bank: Sixth Circuit Affirms Dismissal Of Class Action Complaint Holding Class Action Claims Fell Within Scope Of SLUSA

District Court Properly Found Class Action’s State Law Claims Fell within Scope of Securities Litigation Uniform Standards Act (SLUSA) Sixth Circuit Holds

Plaintiff filed a putative class action against Fifth Third Bank and its holding company, Fifth Third Bancorp., alleging breach of fiduciary duty and breach of contract. Segal v. Fifth Third Bank, N.A., 581 F.3d 305, 308 (6th Cir. 2009). According to the allegations underlying the class action complaint, Fifth Third “ breached its fiduciary and contractual duties to the class in three ways: (1) It invested fiduciary assets in proprietary (and often higher-fee) Fifth Third mutual funds rather than superior funds operated by the Bank's competitors; (2) it promised trust beneficiaries that their fiduciary accounts would receive ‘individualized’ management and breached that agreement by providing standardized and largely automated management…, often by ‘relatively inexperienced’ and ‘low-level’ employees…; and (3) it invested too many of the funds' assets in low-yielding investments in order to cover the accounts' near-term tax liabilities.” Id. Defense attorneys moved to dismiss the class action on the grounds that the state law claims were preempted by the Securities Litigation Uniform Standards Act of 1998 (SLUSA); the district court agreed and dismissed the class action complaint. Id. The Sixth Circuit affirmed.

The Sixth Circuit explained that Congress enacted Private Securities Litigation Reform Act (PSRLA) to “curb[] ‘perceived abuses’ of federal class-action securities litigation by imposing special requirements and obstacles on claimants filing such actions.” Segal, at 308 (citations omitted). However, “some claimants responded by ‘avoid[ing] the federal forum altogether,’ bringing ‘class actions under state law, often in state court’ instead.” Id., at 309 (citation omitted). Because this “was not what Congress had in mind,” it enacted SLUSA: its purpose was to “‘prevent certain State private securities class action lawsuits alleging fraud from being used to frustrate the objectives of’ PLSRA…[by] expressly prohibit[ing] certain state law class actions,” id. (citation omitted). The Circuit Court explained that “SLUSA prohibits a claimant from filing a class action when four things are true: (1) the class action is ‘covered,’ which means it involves more than fifty members; (2) the claims are based on state law; (3) the action involves a ‘covered security,’ which means a nationally listed security; and (4) the complaint alleges ‘an untrue statement or omission of a material fact in connection with’ buying or selling a covered security or a ‘manipulative or deceptive device or contrivance in connection with’ buying or selling a covered security.” Id. (citations omitted). The parties agreed that the first three of these requirements were satisfied by the class action – the question on appeal was whether the last requirement had been met. Id.

Continue reading "SLUSA Class Action Defense Cases–Segal v. Fifth Third Bank: Sixth Circuit Affirms Dismissal Of Class Action Complaint Holding Class Action Claims Fell Within Scope Of SLUSA" »

Posted On: November 7, 2009 by Michael J. Hassen Email This Post

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Class Action Lawsuits Alleging Labor Law Claims Maintain Grip On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 30 - November 5, 2009, during which time 48 new class action cases were filed in these California state and federal courts. Labor law class action generally top the list by a wide margin, and this past week was no exception. During this reporting period, there were 25 new class actions alleging employment-related claims (52% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new class action lawsuits (19% of the new class actions filed during the reporting period).

Posted On: October 31, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Continue Hold on Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist California class action defense attorneys anticipate the types of class action against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 23 - 29, 2009, during which time 56 new class action cases were filed in these California state and federal courts. Labor law class action generally top the list by a wide margin, often accounting for more than half of the total number of new class actions filed. This past week, class action alleging employment-related claims again topped the list with 24 new class action lawsuits (43% of the total number of new class actions filed). The only two other categories to break the 10% threshold again involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 14 new class action lawsuits (25% of the new class actions filed during the reporting period), and class actions alleging antitrust violations, with 8 new class action lawsuits (14% of the new class actions filed during the reporting period).

Posted On: October 24, 2009 by Michael J. Hassen Email This Post

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New Labor Law Class Actions Hold Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 16 - 22, 2009, during which time 44 new class action cases were filed in these California state and federal courts. Class actions alleging employment-related claims generally top the list by a wide margin. This past week, however, a relatively low number of new class action lawsuits involved labor law claims, with only 20 such filings (45% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 13 new class action lawsuits (30% of the new class actions filed during the reporting period).

Posted On: October 17, 2009 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Employment-Related Claims Maintain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 9 - 15, 2009, and just like the prior reporting period, 51 new class action cases were filed in these California state and federal courts. Also just like the last reporting period, 27 of the new class action lawsuits involved labor law claims (53% of the total number of new class actions filed). And in a marked coincidence, the only other category to break the 10% threshold again involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new class action lawsuits (18% of the new class actions filed during the reporting period).

Posted On: October 12, 2009 by Michael J. Hassen Email This Post

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HAPPY COLUMBUS DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy Columbus Day holiday. A new class action article will be published tomorrow.

Posted On: October 10, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Continue Dominance Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 2 - 8, 2009, during which time 51 new class action cases were filed in these California state and federal courts. Class actions alleging employment-related claims generally top the list by a wide margin. This past week, 27 of the new class action lawsuits involved labor law claims (53% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 10 new class action lawsuits (20% of the new class actions filed during the reporting period).

Posted On: October 3, 2009 by Michael J. Hassen Email This Post

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Class Actions Alleging Employment-Related Claims Take Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 25 - October 1, 2009. During that time period, 47 new class action cases were initiated in these California state and federal courts. Labor law class actions generally top the list by a wide margin, often accounting for more than half of the new class action lawsuits filed, but this past week only 18 of the new class action filings involved employment-related claims (38% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 13 new class action lawsuits (28% of the new class actions filed during the reporting period).

Posted On: September 26, 2009 by Michael J. Hassen Email This Post

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New Class Actions Alleging Employment-Related Claims Hold On To Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts But UCL Claims Run Close Second

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 18 - 24, 2009, during which time 40 new class action cases were filed in these California courts. Generally, labor law class actions top the list by a wide margin, and a wide variety of categories complete the mix. This past week, however, only three categories accounted for fully 90% of the new class action lawsuits filed in these California courts. Class actions alleging employment-related claims continued to hold the top spot, with 16 new class actions, accounting for 40% of the total number of new class actions filed. But class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, ran a close second, with 13 new class actions (33%). The only other category to break the 10% threshold involved class actions alleging violations of federal securities laws, with 7 new class action lawsuits (18% of the new class actions filed during the reporting period). Among them, these three groups accounted for 36 of the 40 new class actions filed during this past week.

Posted On: September 19, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Continue To Hold Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to allow class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 11 - 17, 2009, during which time only 34 new class action cases were filed in these California courts. Labor law class actions generally top the list by a wide margin, often accounting for more than half of the new class action lawsuits filed, but class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, ran a close second this week. This past week, only 16 of the new class action filings involved employment-related claims (47% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's UCL, with 10 new class action lawsuits (29% of the new class actions filed during the reporting period).

Posted On: September 12, 2009 by Michael J. Hassen Email This Post

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New Labor Law Class Actions Maintain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 4 - 10, 2009. During that time period, 38 new class action cases were initiated in these California state and federal courts. Labor law class actions generally top the list by a wide margin, often accounting for more than half of the new class action lawsuits filed, but class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, ran a close second this week. This past week, only 14 of the new class action filings involved employment-related claims (37% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's UCL, with 12 new class action lawsuits (32% of the new class actions filed during the reporting period).

Posted On: September 7, 2009 by Michael J. Hassen Email This Post

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HAPPY LABOR DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy Labor Day. A new class action article will be published tomorrow.

Posted On: September 5, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Regain Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts

In order to allow class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 28 – September 3, 2009. During that time period, 44 new class action cases were initiated in these California state and federal courts. As a general rule, labor law class actions top the list by a wide margin, and often account for more than half of the new class action lawsuits filed. This past week, however, only 20 of the new class action filings involved employment-related claims (45% of the total number of new class actions filed). The only other category to break the 10% threshold involved class actions alleging violations of California's unfair competition law (UCL), with 14 new class action lawsuits, representing 32% of the new class actions filed during the reporting period.

Posted On: September 4, 2009 by Michael J. Hassen Email This Post

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Class Action Defense Cases—In re Celexa & Lexapro: Judicial Panel On Multidistrict Litigation (MDL) Grants Defense Motion To Centralize Class Action Litigation But Transfers Class Actions To Massachusetts

Judicial Panel Grants Defense Request for Pretrial Coordination of Class Action Lawsuits Pursuant to 28 U.S.C. § 1407, Unopposed by Class Action Plaintiffs, but Transfers Class Actions to District not Mentioned by Any of the Parties, the District of Massachusetts

Two class actions – one in Missouri and one in New York – were filed against various defendants, including Forest Laboratories and Forest Pharmaceuticals alleging that defendants “engaged in false and misleading promotion of Celexa and Lexapro for pediatric or adolescent use and sought to induce physicians and others to prescribe Celexa or Lexapro by providing them with various forms of illegal remuneration.” In re Celexa & Lexapro Marketing & Sales Prac. Litig., ___ F.Supp.2d ___ (Jud.Pan.Mult.Lit. August 19, 2009) [Slip Opn., at 1-2]. Defense attorneys filed a motion with the Judicial Panel for Multidistrict Litigation (MDL) requesting centralization of the class actions pursuant to 28 U.S.C. § 1407 in the Eastern District of New York; plaintiffs in the New York class action supported the motion, and plaintiffs in the Missouri class action ultimately did not object to transfer to the Eastern District of New York. Id., at 1. Plaintiffs in a potential tag-along class action pending in the Southern District of New York requested transfer to that district, id. The Judicial Panel granted the motion to centralize the class action lawsuits but selected the District of Massachusetts as the appropriate transferee court. Id. The Panel explained at page 2, “The two qui tam actions that apparently spawned the actions now before the Panel are pending in the District of Massachusetts. Also, centralization in this district permits the Panel to assign the litigation to an experienced judge who is not presently overseeing another multidistrict litigation docket and who has a caseload relatively favorable for this assignment.”

Download PDF file of In re Celexa Transfer Order

Posted On: August 31, 2009 by Michael J. Hassen Email This Post

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RESPA Class Action Defense Cases–Tubbs v. North American Title: New Jersey Federal Court Dismisses Class Action RESPA Claim And Dismisses Balance Of Class Action After Declining Jurisdiction Over Class Action’s State Law Claims

Class Action Alleging Improper Charges for Settlement Services Failed to State Claim under Real Estate Settlement Practices Act (RESPA) because Class Action Described an “Overcharge” Rather than a “Markup” or a “Fee Split” and Remaining Class Action State Law Claims Dismissed without Prejudice because Court Refused to Exercise Supplemental Jurisdiction over them New Jersey Federal Court Holds

Plaintiffs filed a putative class action against various North American Title entities alleging inter alia violations of the federal Real Estate Settlement Practices Act (RESPA) and the New Jersey Consumer Fraud Act; specifically, the class action complaint alleged that defendants charged improper fees in connection with the refinancing of residential mortgages. Tubbs v. North Am. Title Agency, Inc., 622 F.Supp.2d 207, 207-08 (D.N.J. 2009). According to the allegations underlying the class action complaint, defendants acted as closing agent when plaintiffs refinanced home loans that they had with Wachovia Bank, id., at 208. Among the closing costs charged by defendants was “release recording fee” of $150, but defendants “did not actually record the release of the mortgages”; instead, “Wachovia prepared and recorded the necessary documents…, and passed through to the borrower the $40 per mortgage recording fee charged by the County.” Id. Defense attorneys moved to dismiss the class action, and plaintiffs filed an amended class action complaint that largely tracked the original. Id., at 208-09. Defense attorneys again moved to dismiss the class action, id., at 209. The district court granted the motion.

The federal court explained that the gravamen of the class action’s RESPA claim was that defendants “violated RESPA by charging a settlement fee for which no services were performed.” Tubbs, at 209. Relying on Santiago v. GMAC Mortgage Group, Inc., 417 F.3d 384 (3d Cir. 2005), plaintiffs argued that defendants’ charge for recording a release was a “markup” prohibited by Section 8(b) of RESPA. Tubbs, at 209. But the district court explained that Santiago drew a distinction between a “markup” and an “overcharge,” which “occurs when the settlement service provider charges the consumer a fee, of which only one portion is a fee for the reasonable value of ‘services rendered.” Id. (citing Santiago, at 387). The distinction is important because under Santiago “the plain language of Section 8(b) does not provide a cause of action for overcharges.” Id., at 210 (citation omitted). Defendants did not actually engage in “fee splitting” because the fee charged by Wachovia “was not for the same settlement service.” Id. The district court explained at page 210 that the $40 fee charged by Wachovia was “not a fee for any service Wachovia was providing” but represented “the actual cost of recording the discharge with the Camden County Clerk’s office” and Wachovia “was passing on the county recording fee for the mortgage satisfaction as permitted by New Jersey Statute.” Further, the $25 fee charged by Wachovia was “for its work in preparing the mortgage satisfaction and arranging for its recording.” Id.

Continue reading "RESPA Class Action Defense Cases–Tubbs v. North American Title: New Jersey Federal Court Dismisses Class Action RESPA Claim And Dismisses Balance Of Class Action After Declining Jurisdiction Over Class Action’s State Law Claims" »

Posted On: August 29, 2009 by Michael J. Hassen Email This Post

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New Unfair Competition Law (UCL) Class Action Lawsuits Tie Labor Law Class Action Lawsuits In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys,we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 21 – August 27, 2009. During that time period, 50 new class action cases were initiated in these California state and federal courts. Generally, class action cases alleging employment law violations top the list, often by a wide margin. This past week, however, there was a significant increase in the number of class actions alleging violations of California's unfair competition law (UCL). There were 21 new labor law class action lawsuit and 21 new UCL class action lawsuits, representing 42% each of the new class actions filed during the reporting period. No other category cracked the 10% threshold of new class action cases.

Posted On: August 22, 2009 by Michael J. Hassen Email This Post

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Class Actions Alleging Employment-Related Claims Maintain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from August 14 - 20, 2009, during which time 41 new class actions were filed. While labor law class actions often top this list by a wide margin, this reporting period saw considerable balance among three separate areas. During this reporting period, only 22 class actions alleging employment-related claims were filed, representing a comparatively low 54% of the total number of new class actions filed. Only two other categories met the 10% threshold: there were 8 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (20%), and 4 new class actions alleging violations of federal securities laws (10%).

Posted On: August 15, 2009 by Michael J. Hassen Email This Post

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Heavy Week For New Class Action Filings And Labor Law Class Actions Maintain Top Spot Among New Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of claims against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from August 7 - 13, 2009, during which time a relatively large number of new class actions -- 56 -- were filed. Labor law class actions generally top this list by a wide margin, and this yet again proved to be true. During this reporting period, 33 class actions were filed alleging employment-related claims, representing 59% of the total number of new class actions filed. Only one other category met the 10% threshold: there were 11 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (20%).

Posted On: August 8, 2009 by Michael J. Hassen Email This Post

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Relative Percentage Of Labor Law Class Actions Filed In California State And Federal Courts Soars

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from July 31 - August 6, 2009, during which time 37 new class actions were filed -- a comparatively low number. Class actions alleging employment-related claims generally top this list by a wide margin, but in contrast to the remarkable balance among three separate categories of class actions filed last week, labor law class actions monopolized the new filings during this reporting period. A stunning 28 labor law class actions were filed this past week, representing 76% of the total number of new class actions filed. No other category met the 10% threshold.

Posted On: August 1, 2009 by Michael J. Hassen Email This Post

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Class Actions Alleging Employment-Related Claims Hold Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from July 24 - 30, 2009, during which time 47 new class actions were filed. While labor law class actions often top this list by a wide margin, this reporting period saw considerable balance among three separate areas. During this reporting period, only 17 class actions alleging employment-related claims were filed, representing only 36% of the total number of new class actions filed -- well below normal, as labor law class actions often account for more than half of all of the new class actions filed in California state and federal courts during any particular week. Only two other categories met the 10% threshold: there were 11 new class actions alleging violations of the Electronic Fund Transfer Act (23%), and 10 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (21%).

Posted On: July 25, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Retain Grip On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from July 17 - 23, 2009, during which time 35 new class actions were filed. Labor law class actions generally top this list by a wide margin. During this reporting period, only 12 class actions alleging employment-related claims were filed, representing only 34% of the total number of new class actions filed. For reference, labor law class actions often account for more than half of all of the new class actions filed in California state and federal courts during any particular week. Only two other categories met the 10% threshold: there were 8 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 23% of the new class actions filed, and there were 5 new class actions alleging violations of securities laws, accounting for 14% of the new class actions filed.

Posted On: July 18, 2009 by Michael J. Hassen Email This Post

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Extremely Light Week For California Class Action Lawsuits But Labor Law Class Actions Regain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from July 10 - 16, 2009, during which time only 27 new class actions were filed. As a general rule, class actions alleging employment-related claims top this list by a wide margin. During this reporting period, only 11 labor law class actions were filed, representing 41% of the total number of new class actions filed. Only one other category met the 10% threshold: there were 7 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 26% of the new class actions filed.

Posted On: July 15, 2009 by Michael J. Hassen Email This Post

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Class Action Defense Cases–In re HealthSouth: Eleventh Circuit Affirms Class Action Settlement Of Securities Fraud Class Action Including Bar Order Impacting CEO’s Indemnity Agreement With Company

Class Action Settlement Calling for Bar Order, Wiping Out Corporate Officer’s Indemnification Agreement and Advancement of Attorney Fees from Company Properly Approved by District Court Eleventh Circuit Holds

Plaintiffs filed a class action against HealthSouth Corporation and others, including its former chairman and CEO Richard M. Scrushy, alleging securities fraud; the class action complaint was filed in March 2003, after “HealthSouth acknowledged that its previous financial statements had substantially overstated its income and assets.” In re HealthSouth Corp. Sec. Litig., 572 F.3d 854, 2009 WL 1675398, *1 (11th Cir. 2009). According to the several class action complaints that were filed, defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934. Id. Ultimately, the class actions were consolidated in the Northern District of Alabama, and a partial settlement was reached between HealthSouth and the lead plaintiffs whereby HealthSouth would pay $445 million in settlement. Id. Scrushy was not a party to the settlement (having been prohibited from the mediation as the alleged mastermind of the fraud), and the district court approved the settlement over his objections, id. In part, the settlement included a bar order that extinguished “[Scrushy’s] contractual claims against HealthSouth for indemnification of settlement payments he might make to the underlying plaintiffs and extinguishes his claims for advancement of legal defense costs.” Id.

The basis of the appeal is that, in 1994, “Scrushy and HealthSouth executed an agreement requiring HealthSouth to indemnify Scrushy to the fullest extent permitted by law.” In re HealthSouth, at *1. Specifically, the indemnity agreement “require[d] HealthSouth to indemnify Scrushy for any judgment or settlement in any action in which he is sued for actions taken as a director or officer of the company, if he acted in good faith and reasonably believed he was acting in the best interest of the company.” Id. The bar order, however, wiped out any indemnity obligations, id. Scrushy’s objection was premised on the fact that the bar order “extinguished valuable and enforceable rights to which Scrushy was entitled under his indemnification agreement with HealthSouth.” Id., at *2. But “[t]he Bar Order is reciprocal, extinguishing similar claims by the settling defendants.” Id., at *2 (footnote omitted). The Eleventh Circuit reviewed Scrushy’s challenges to the settlement bar order for an abuse of discretion, id., at *3.

Continue reading "Class Action Defense Cases–In re HealthSouth: Eleventh Circuit Affirms Class Action Settlement Of Securities Fraud Class Action Including Bar Order Impacting CEO’s Indemnity Agreement With Company" »

Posted On: July 11, 2009 by Michael J. Hassen Email This Post

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Very Heavy Two-Week Period For California Class Action Lawsuits And Labor Law Class Actions Drop To Second Place Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from June 26 - July 9, 2009, during which time a remarkable high number of new class actions -- 108 -- were filed. As a general rule, class actions alleging employment-related claims top this list by a wide margin. During this reporting period, however, a surprisingly large number of ADA (Americans with Disabilities Act) class action lawsuits were filed; 40 new class actions, representing 37% of the total number of new class actions filed during the past two weeks. Class actions alleging employment-related claims came in a strong second, with 35 new class actions (32% of the total number of new class actions filed). Despite the high number of class actions filed, only one other category met the 10% threshold: there were 14 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 13% of the new class actions filed.

Posted On: July 4, 2009 by Michael J. Hassen Email This Post

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HAPPY JULY 4th FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy Independence Day. The author has been on vacation but anticipates that new class action articles will be published next week.

Posted On: June 27, 2009 by Michael J. Hassen Email This Post

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Heavy Week For California Class Action Lawsuits But Labor Law Class Actions Maintain Dominance Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from June 19 - 25, 2009, during which time an unusually high number of new class actions -- 62 -- were filed. As a general rule, class actions alleging employment-related claims top this list by a wide margin. During this reporting period, 29 of the new class actions involved labor law claims, representing only 47% of the total number of new class actions filed during the past week. Despite the high number of class actions filed, only two other categories met the 10% threshold: there were 15 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 24% of the new class actions filed, and 7 new class actions alleging violations of the Americans with Disabilities Act (ADA), representing 11% each.

Posted On: June 20, 2009 by Michael J. Hassen Email This Post

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Relatively Low Number Of New Employment-Related Class Action Lawsuits Filed But Labor Law Class Actions Maintain Hold On Top Spot Among Weekly Class Actions Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from June 12 - 18, 2009, during which time 53 new class actions were filed. Labor law class actions usually top this list by a wide margin, generally accounting for more than half of the new class actions filed in any given week. During this reporting period, 25 of the new class actions involved labor law claims, representing only 47% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold: there were 13 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 25% of the new class actions filed.

Posted On: June 13, 2009 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Maintain Top Spot Among Weekly Class Actions Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from June 5 - 11, 2009, during which time 40 new class actions were filed. Labor law class actions usually top this list by a wide margin, generally accounting for more than half of the new class actions filed in any given week. During this reporting period, only 16 of the new class actions involved labor law claims, representing a surprisingly low 40% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold: there were 9 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 23% of the new class actions filed.

Posted On: June 6, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Maintain Dominance Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from May 29 - June 4, 2009, during which time 50 new class actions were filed. As a general rule, class actions alleging employment-related claims top this list by a wide margin. During this reporting period, 23 of the new class actions involved labor law claims, representing only 46% of the total number of new class actions filed during the past week. Three other categories met the 10% threshold: there were 11 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 22% of the new class actions filed, and 5 new class actions each for federal securities violations and Americans with Disabilities Act (ADA) violations, representing 10% each.

Posted On: May 30, 2009 by Michael J. Hassen Email This Post

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Employment-Related Class Action Lawsuits Continue To Lead List Of Weekly Class Actions Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from May 22 - 28, 2009, during which time 43 new class actions were filed. Labor law class actions usually top this list by a wide margin, generally accounting for more than half of the new class actions filed in any given week. During this reporting period, 22 of the new class actions involved labor law claims, representing a surprisingly low 51% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold: there were 9 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 21% of the new class actions filed.

Posted On: May 23, 2009 by Michael J. Hassen Email This Post

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Surge In Class Action Complaints Filed In California State And Federal Courts Led By ADA Class Actions But Labor Law Actions Continue To Top List Of New Class Action Lawsuits Filed In Past Week

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from May 15 - 21, 2009, during which time an unusually high number of new class actions were filed -- 59. Generally, labor law class action lawsuits account for more than half of the new class actions filed and top the list by a substantial margin. During this reporting period, only 18 of the new class actions involved labor law claims, representing a surprisingly low 31% of the total number of new class actions filed during the past week. Only two other categories met the 10% threshold. There were 13 new class actions alleging violations of the Americans with Disabilities Act (ADA), accounting for 22% of the new class actions filed, and there were 12 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, accounting for 20% of the new class actions filed.

Posted On: May 16, 2009 by Michael J. Hassen Email This Post

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Labor Law Actions Continue To Top List Among Weekly Class Action Lawsuits Filed In California State And Federal Courts But With Comparatively Low Percentage Of New Class Action Filings

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from May 8 - 14, 2009, during which time 49 new class actions were filed. Labor law class action lawsuits generally top the list, often by a wide margin and often with more than half of the new class action filings. During this reporting period, only 21 of the new class actions involved labor law claims, representing a relatively low 43% of the total number of new class actions filed during the past week (though substantially higher than the 31% showing during the last reporting period). Only two other categories met the 10% threshold. There were 10 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (20%), and 5 new class actions alleging violations of federal securities laws (10%).

Posted On: May 14, 2009 by Michael J. Hassen Email This Post

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FACTA Class Action Defense Cases–Leysoto v. Mama Mia: Florida Federal Court Denies Class Action Treatment Of FACTA Class Action Because Potential Liability Vastly Disproportionate To Actual Damages Suffered By Putative Class

FACTA Class Action Seeking $4.6 Million to $46 Million in Statutory Damages from Restaurant with Net Worth of $40,000 did not Warrant Class Action Treatment because Class Action not “Superior” Method of Resolving Dispute Florida Federal Court Holds

Plaintiff filed a putative class action in Florida state court against Mama Mia, “a local restaurant in Hollywood, Florida, with approximately $40,000 in net assets”; the class action alleged that defendant violated the Fair and Accurate Credit Transactions Act (FACTA), which requires that merchants truncate credit card and debit card numbers on electronically-printed customer receipts. Leysoto v. Mama Mia I., Inc., 255 F.R.D. 693, 694 (S.D.Fla. 2009). According to the allegations underlying the class action, the receipts defendant provided to customers “displayed both the expiration date and full number of [the customers’] credit card.” Id. (The district court noted that defendant “ceased this practice, and began truncating customer receipts to merely four (4) card numbers, no later than June 26, 2008.” Id.) The class action complaint sought “statutory and actual damages, as well as attorneys' fees and costs,” id. Defense attorneys removed the class action to federal court, id., and plaintiff moved for class certification, arguing a Rule 23(b)(3) class action should be certified, id., at 694-95. Defense attorneys opposed class action certification on the grounds that class action treatment would expose defendant to statutory damages of $4.6 million - $46 million, even though plaintiff concedes he did not suffer any actual economic injury and even though there was no evidence that any member of the putative class suffered actual economic injury. Id., at 695 and n.5. The district court denied plaintiff’s motion.

The district court explained that the class certification motion “turns on two related questions: (1) whether potential class damages are a proper consideration at the motion to certify stage; and, if so; (2) whether the potential class damages in this matter preclude certification under Fed.R.Civ.P. 23(b)(3).” Leysoto, at 694. Of course, plaintiff bears the burden of establishing that class action treatment was warranted, id., at 695 (citations omitted). FACTA provides for recovery of actual damages or statutory damages of “not less than $100 and not more than $1,000.” Id. (citation omitted). This is important because under Eleventh Circuit authority the district court “may consider potential class damages in adjudicating Plaintiff's Motion, and given the vast disparity between the requested statutory damages and the actual injury caused by Defendant, the class vehicle is not the superior method for fairly and efficiently adjudicating this dispute.” Id., at 694.

Continue reading "FACTA Class Action Defense Cases–Leysoto v. Mama Mia: Florida Federal Court Denies Class Action Treatment Of FACTA Class Action Because Potential Liability Vastly Disproportionate To Actual Damages Suffered By Putative Class" »

Posted On: May 9, 2009 by Michael J. Hassen Email This Post

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Unusually High Number Of New Class Actions Filed But Labor Law Class Actions Retain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from May 1 - 7, 2009, during which time an unusually high number of new class actions were filed -- 61. Labor law class action lawsuits generally top the list, often by a wide margin. During this reporting period, only 19 of the new class actions involved labor law claims, representing a relatively low 31% of the total number of new class actions filed during the past week. By comparison, class actions alleging employment-related claims generally account for more than half of the total number of new class actions filed in California during any given week. As one might guess from the large number of class actions filed and the comparatively low number of labor law class actions filed, several other categories met the 10% threshold. There were 14 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (23%). There were also 11 new class actions alleging violations of federal securities laws (18%), though almost all of them (9) were against Sequenom. And finally, there were 7 new class actions alleging violations of the Americans with Disabilities Act (ADA), representing 11% of the total number of new class actions filed during this reporting period.

Posted On: May 8, 2009 by Michael J. Hassen Email This Post

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Class Action Defense Cases—In re Bayer: Judicial Panel On Multidistrict Litigation (MDL) Grants Plaintiffs’ Motions To Centralize Class Action Litigation And Transfers Class Action To Eastern District Of New York

Judicial Panel Grants Plaintiffs’ Separate Requests for Pretrial Coordination of Class Action Lawsuits Pursuant to 28 U.S.C. § 1407, Supported by Defendants, and Transfers Class Actions to Eastern District of New York

Eight class actions – four in New Jersey, two in Illinois and one each in California and New York – were filed against various Bayer defendants “arising from Bayer’s marketing and sale of Bayer Aspirin with Heart Advantage or Bayer Women’s Low-Dose Aspirin Plus Calcium, or both.” In re Bayer Corp. Combination Aspirin Products Marketing & Sales Practices Litig., ___ F.Supp.2d ___ (Jud.Pan.Mult.Lit. April 14, 2009) [Slip Opn., at 1]. According to the class action complaints, “Bayer marketed these products without approval from the United States Food and Drug Administration and deceived the plaintiffs and putative class members with respect to the safety and efficacy of the products.” Id., at 2. Class action plaintiffs filed three separate motions with the Judicial Panel for Multidistrict Litigation (MDL) requesting centralization of the class actions pursuant to 28 U.S.C. § 1407. Id., at 1. Plaintiffs in the New York class action sought centralization in the Eastern District of New York; plaintiffs in the four New Jersey class actions and the two Illinois class actions originally sought centralization in their respective jurisdictions, but at oral argument they, too, supported centralization in the Eastern District of New York. Id. Plaintiffs in the California class action requested that the Panel defer ruling on the motions until the district court ruled on their motion to remand their class action to state court; alternatively, they requested centralization in the Southern District of California. Id. Defendants Bayer and Bayer Healthcare supported centralization of the class actions (including the California class action), and recommended transfer either to the Southern District of Illinois or Eastern District of New York. Id.

The Judicial Panel granted the motion to centralize the class action lawsuits, agreeing that centralization “will eliminate duplicative discovery; prevent inconsistent pretrial rulings, particularly with respect to class certification issues; and conserve the resources of the parties, their counsel and the judiciary.” In re Bayer, at 1-2. The Panel agreed further that the Eastern District of New York was the appropriate transferee court, particularly given its wide support. Id., at 2. Accordingly, the Judicial Panel ordered the various class actions transferred to the Eastern District of New York, id.

Download PDF file of In re Bayer Transfer Order

Posted On: May 2, 2009 by Michael J. Hassen Email This Post

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New Labor Law Class Action Filings Again Seize Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from April 24 - 30, 2009, during which time 37 new class actions were filed. Labor law class action lawsuits generally top the list, often by a wide margin. This proved to be true yet again. During this reporting period, 20 of the new class actions involved employment-related claims (representing 54% of the total number of new class actions filed during the past week). The only other category to meet the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 7 new class action complaints (19%).

Posted On: April 25, 2009 by Michael J. Hassen Email This Post

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Slow Week For Class Action Filings But Labor Law Class Actions Maintain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from April 17 - 23, 2009, during which time only 30, a relatively low number of new class actions, were filed. Labor law class action lawsuits generally top the list by a wide margin. During this reporting period, 16 of the new class actions involved labor law claims (representing 53% of the total number of new class actions filed during the past week). Only two other category met the 10% threshold: there were 5 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (17%), and there were 3 new class actions alleging violations of federal securities laws (10%).

Posted On: April 18, 2009 by Michael J. Hassen Email This Post

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Class Actions Involving Labor Law Claims GainTop Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from April 10 - 16, 2009, during which time 39 new class actions were filed. Labor law class action lawsuits generally top the list by a wide margin and often account for more than half of the new class actions filed during the week. During this reporting period, only 17 of the new class actions involved labor law claims, which were sufficient to top the list of new class action filings in California courts but which represent a relatively low 44% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold: there were 10 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, representing 26% of the new class actions filed.

Posted On: April 11, 2009 by Michael J. Hassen Email This Post

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Labor Law And Unfair Competition Law (UCL) Class Actions Monopolize Categories Of New Class Action Lawsuits Filed In California State And Federal Courts During Past Week

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from April 3 - 9, 2009, during which time only 31 new class actions were filed. While class action lawsuits alleging employment-related claims generally top the list by a wide margin, this past week was dominated by class actions alleging labor law violations or violations of California's Unfair Competition Law (UCL), which includes false advertising claims. During this reporting period, 16 of the new class actions involved labor law claims (representing 52% of the total number of new class actions filed during the past week). And class actions alleging UCL violations made up the only other category that met the 10% threshold, with 11 new class action filings (35%). Thus, almost 90% of the new class action lawsuits filed during the past week involved either labor law claims or UCL claims.

Posted On: April 4, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Actions Maintain Grip On Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from March 26 - April 2, 2009, during which time 46 new class actions were filed. Labor law class action lawsuits generally top the list by a wide margin. During this reporting period, 27 of the new class actions involved labor law claims (representing 59% of the total number of new class actions filed during the past week). Only one other category met the 10% threshold: there were 9 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (20%).

Posted On: March 28, 2009 by Michael J. Hassen Email This Post

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Class Action Lawsuits Alleging Labor Law Violations Retain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California attorneys who defend class action lawsuits, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from March 20 - 26, 2009, during which time an usually large number of new class actions, 58, were filed. Generally, class action lawsuits alleging employment-related claims top the list by a wide margin; indeed, labor law class actions often account for more than half of the total number of new class actions filed each week. This past week, only 24 of the 58 new class action filings involved labor law claims (representing 41% of the total number of new class actions filed during the past week). Only two other categories met the 10% threshold: there were 11 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (19%), and 7 new class actions alleging violations of the Americans with Disabilities Act (ADA) or related failure to provide access claims.

Posted On: March 21, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Hold Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from March 13 - 19, 2009, during which time 46 class actions were filed. Labor law class actions generally top this list, and usually account for more than 50% of the total number of new class actions filed each week. While employment-related class actions did not meet this 50% mark, they did continue to hold the top spot among new class actions. In this reporting period, 22 new labor law class action lawsuits were filed, representing 48% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold, as there were 8 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (17%).

Posted On: March 14, 2009 by Michael J. Hassen Email This Post

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Employment-Related Class Action Lawsuits Retain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from March 6 - 12, 2009, during which time 39 class actions were filed. Labor law class actions generally top the list by a wide margin, and in this reporting period 18 of the new class actions asserted employment-related claims, representing 46% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold. There were 4 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (10%).

Posted On: March 7, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Claim Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from February 27 - March 5, 2009, during which time 41 class actions were filed. Class actions asserting employment-related claims generally top this list, and this again proved true. In this reporting period, 23 new labor law class action lawsuits were filed, representing 56% of the total number of new class actions filed during the past week. Only one other category met the 10% threshold, as there were 11 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (27%).

Posted On: February 28, 2009 by Michael J. Hassen Email This Post

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New Employment-Related Class Action Lawsuits Retain Top Spot Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from February 20 - 26, 2009, during which time 41 class actions were filed. Labor law class actions generally top the list, and this reporting period was no exception. In this reporting period, 19 new labor law class action lawsuits were filed, representing a relatively low 46% of the total number of new class actions filed during the past week. Only two other categories satisfied the 10% threshold: there were 9 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (22%), and there were 4 new class actions alleging violations of federal securities laws (10%).

Posted On: February 21, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Regain Dominance Among Weekly Class Action Lawsuits Filed In California State And Federal Courts In Week Of Heavy Class Action Activity

In order to allow class defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from February 13 - 19, 2009, during which time an unusually high number of class actions were filed; in total, 59 new class action lawsuits were initiated in these courts during this reporting period. Class actions alleging employment-related claims generally top the list of new class action filings by a wide margin, and during this reporting period 23 new labor law class action lawsuits were filed, representing a relatively low 39% of the total number of new class actions filed during the past week. Only two other categories satisfied the 10% threshold: there were 12 new class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (20%), and there were 11 new class actions alleging violations of the federal Americans with Disabilities Act (ADA) (19%).

Posted On: February 15, 2009 by Michael J. Hassen Email This Post

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Class Action Defense Cases–Dukes v. Wal-Mart: Ninth Grants Rehearing En Banc Of District Court Order Certifying Nationwide Class Action Against Wal-Mart In Labor Law Class Action Alleging Sex Discrimination Covering 1.5 Million Class Members

Wal-Mart’s Petition for Rehearing En Banc of District Court Order Certifying Nationwide Labor Law Class Action Alleging Sex Discrimination Against 1.5 Million Employees Granted by Ninth Circuit

We have previously reported on the Ninth Circuit opinion in Dukes v. Wal-Mart, Inc., 474 F.3d 1214 (9th Cir. 2007), which affirmed a district court order granting plaintiffs’ motion for class action certification in a nationwide labor law class action alleging sex discrimination; the certified class action covered 1.5 million members, but the district court concluded that the action nonetheless would be manageable. Our summary of Dukes may be found here. On February 13, 2009, the Ninth Circuit voted to grant Wal-Mart’s petition for rehearing en banc. Dukes v. Wal-Mart, Inc., Case Nos. 04-16688 and 04-16720 (9th Cir. February 13, 2009) [Slip Opn., at 1-2]. Accordingly, the opinion of the three-judge panel affirming the district court order granting class action certification may no longer be cited as precedent in the Ninth Circuit.

Download PDF file of Order Granting Rehearing En Banc

Posted On: February 14, 2009 by Michael J. Hassen Email This Post

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Rare Balance Among New Class Action Filings But Employment-Related Class Action Lawsuits Maintain Top Spot Of Weekly Class Action Suits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from February 6 - 12, 2009, during which time 35 new class action lawsuits were filed. Generally, labor law class actions top the list of new class action filings by a wide margin, and it is rare that the top two categories have approximately the same number of new filings. This past week, however, there was remarkable balance among the categories of class action lawsuits. Specifically, four categories of class action cases were separated by only 8 filings. Labor law class actions again came in on top, but with only 13 new filings (37% of the total number of new class actions filed during the past week). Three other categories satisfied the 10% threshold: there were 8 class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (23%), there were 6 new class actions alleging violations of federal antitrust (17%), and there were 5 class actions alleging violations of federal securities laws (14%).

Posted On: February 7, 2009 by Michael J. Hassen Email This Post

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No Surprise...Labor Law Class Action Lawsuits Hold Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to allow defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from January 30 - February 5, 2009, during which time 47 new class action lawsuits were filed. As we regularly remind readers, labor law class actions generally top the list of new class action filings -- often by a wide margin. This trend proved particuarly true this past week, with the filing of 24 new class action lawsuits alleging employment-related claims (51% of the total number of new class actions filed during the past week). While two other categories satisfied the 10% threshold, the numbers pale in comparison: there were 6 new class actions alleging violations of federal antitrust (13%), and there were 5 class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims (11%).

Posted On: February 5, 2009 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION DEFENSE CONFERENCE COMING TO NEW YORK

ACI is sponsoring a conference on Managing Complex Litigation, which will be held at the Helmsley Park Lane in New York on February 25 and 26, 2009. The conference features a faculty of 25 in-house counsel. Details on the conference and its topics may be found at www.americanconference.com/complexlit.htm or by calling (888) 224-2480. The conference promises to be well worthwhile for class action defense attorneys and in-house who manage complex cases.

Posted On: January 31, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Maintains Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from January 23 - 29, 2009, during which time 48 new class action lawsuits were filed. Labor law class actions generally top the list of new class action filings by a wide margin. During this report period, 21 new labor law class action lawsuits were filed, representing 44% of the total number of new class actions filed during the past week. Two other categories satisfied the 10% threshold: class actions alleging violations of federal antitrust laws, with 13 new lawsuits (27%), and class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 9 new filings (19%).

Posted On: January 24, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Regain Sole Control Of Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class action lawsuits against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from January 16 - 22, 2009, during which time 46 new class action lawsuits were filed. Labor law class actions generally top the list of new class action filings, last week there was substantial balance among the top three categories of new class action complaints. This week, however, class actions alleging employment-related claims surged to the top. During this report period, 20 new labor law class action lawsuits were filed, representing 43% of the total number of new class actions filed during the past week. Three other categories satisfied the 10% threshold: class actions alleging federal securities fraud, with 8 new lawsuits (17%), next came class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 7 new filings (15%), and class actions alleging antitrust violations, with 6 new lawsuits (13%).

Posted On: January 17, 2009 by Michael J. Hassen Email This Post

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UCL and Labor Law Class Action Lawsuits Share Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from January 9 - 15, 2009, during which time 45 new class action lawsuits were filed. While class actions alleging employment-related claims generally top the list of the class action filings, this past week showed remarkable balance among the top three categories of new class action complaints. During this report period, class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, equaled those class action alleging violations of state and/or federal labor laws -- 14 new class action lawsuits were filed as to each of these categories, representing 31% each of the total number of new class actions filed. The only other category to meet the 10% threshold involved antitrust claims, with 8 new class action filings (18%).

Posted On: January 10, 2009 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue Hold On Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from January 2 - 8, 2009, during which time only 27 new class action lawsuits were filed. Labor law class actions often top the list of the new class action filings and this again proved true. During this report period, 12 new labor law class action lawsuits were filed, representing a relatively low 44% of the total number of new class actions filed. The only other category to meet the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which includes false advertising claims, with 5 new filings (19%).

Posted On: January 3, 2009 by Michael J. Hassen Email This Post

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2008 Class Action Lawsuits End Year With Substantial Increase In Labor Law Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the California state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from December 19 - 31, 2008, during which time only 38 new class action lawsuits were filed. Labor law class actions often top the list of the new class action filings by a wide margin, but the number of new employment-related class actions, as a percentage of the total number of new class action lawsuits filed, had dropped off somewhat in late November and early December. This report, however, covers more than a week because of the holidays, and labor law class action lawsuit filings surged to familiar territory. During this report period, 22 new labor law class action lawsuits were filed, representing 58% of the total number of new class actions filed. The only other category to meet the 10% threshold involved class actions alleging violations of California's Consumer Legal Remedies Act (CLRA) with 4 new filings (11%).

Posted On: January 1, 2009 by Michael J. Hassen Email This Post

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HAPPY NEW YEAR'S DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy New Year. A new class action article will be published tomorrow.

Posted On: December 31, 2008 by Michael J. Hassen Email This Post

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CLASS ACTION DEFENSE BLOG OFF FOR NEW YEARS

The author of the Class Action Defense Blog is taking the day off for the New Year holiday. A new class action article will be published on Friday, January 2.

Posted On: December 25, 2008 by Michael J. Hassen Email This Post

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MERRY CHRISTMAS/HAPPY HOLIDAYS FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy holiday season. A new class action article will be published tomorrow.

Posted On: December 24, 2008 by Michael J. Hassen Email This Post

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CLASS ACTION DEFENSE BLOG OFF FOR CHRISTMAS

The author of the Class Action Defense Blog is taking the day off for the Christmas holiday. A new class action article will be published on Friday, December 26.

Posted On: December 20, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Lead Categories Of New Class Actions Filed In California State And Federal Courts During Past Week

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California state and federal courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in the state and federal courts located in Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from December 12 - 18, 2008, during which time 43 new class action lawsuits were filed. Class action lawsuits alleging employment-related claims generally top the list of the new class action filings by a wide margin. This past week did not disappoint. During this reporting period, 22 new labor law class action lawsuits were filed, representing 51% of the total number of new class actions filed. The only other category to meet the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, with 8 new filings (19%).

Posted On: December 17, 2008 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION DEFENSE CONFERENCES COMING TO NEW YORK

The American Conference Institute is sponsoring its 8th Annual Conference on Consumer Finance Class Actions & Litigation. The conference will be held at the Affinia Manhattan Hotel in New York on January 27 and 28, 2009, and will feature an impressive panel of speakers. Details on the conference and its topics may be found at www.americanconference.com/CFCA or by calling (888) 224-2480. An early registration discount of $400 is available until December 31 by entering the code "649DX15".

Also, ACI is sponsoring a conference on Managing Complex Litigation, which will be held at the Helmsley Park Lane in New York on February 25 and 26, 2009, and features a faculty of 25 in-house counsel as well as a distinguished panel of outside counsel litigators. Details on the conference and its topics may be found by calling (888) 224-2480. Please note there is a discounted registration fee for in-house counsel of $1395.

These conferences promise to be well worthwhile for class action defense attorneys.

Posted On: December 13, 2008 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Continue To Hold Top Spot Among Weekly Class Action Filings In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the period from December 5 - 11, 2008, during which time only 31 new class action lawsuits were filed. Labor law class actions generally top the list of the new class action filings by a wide margin, and this again proved true. During this reporting period, 15 new labor law class action lawsuits were filed, representing a relatively low 48% of the total number of new class actions filed during that time period. The only other categories to meet the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, with 5 new filings (16%), and class actions alleging violations of federal securities laws, with 3 new class actions (10%).

Posted On: December 6, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Hold Top Spot Among Weekly Class Action Filings In California State And Federal Courts But Securities Class Action Lawsuits Surge Into Second

To assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. In light of the Thanksgiving holiday, this report covers the extended period from November 21 - December 4, 2008, during which time 65 new class action lawsuits were filed. Class actions alleging employment-related claims generally top the list of the new class action filings by a wide margin, and this again proved true. During this reporting period, 38 new labor law class action lawsuits were filed, representing 58% of the total number of new class actions filed during that time period. The only other categories to meet the 10% threshold involved class actions alleging violations of federal securities laws, with 10 new class actions (15%), and class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, with 8 new filings (12%).

Posted On: November 28, 2008 by Michael J. Hassen Email This Post

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CLASS ACTION DEFENSE BLOG OFF FOR THANKSGIVING

The author of the Class Action Defense Blog is taking the day off for the Thanksgiving holiday. A new class action article will be published on Monday, December 1

Posted On: November 27, 2008 by Michael J. Hassen Email This Post

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HAPPY THANKSGIVING FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very Happy Thanksgiving, and urges class action defense counsel to take the day off! A new class action article will be published on Monday, December 1.

Posted On: November 22, 2008 by Michael J. Hassen Email This Post

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Back To Normal--Labor Law Class Action Lawsuits Dominate Weekly Class Action Filings In California State And Federal Courts As UCL Class Actions Drop To Distant Second

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers November 14 - 20, 2008, during which time 49 new class action lawsuits were filed. Generally, class actions alleging employment-related claims top the list of the new class action by a wide margin, but new labor law class action filings have been far lighter than usual over the past few weeks. This past week reflected a "return to the norm," however, as 26 of the new class action lawsuits filed during the past week involved employment-related claims, representing 53% of the total number of new class actions filed during that time period. The only other category to meet the 10% threshold involved class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, with 10 new filings (20%).

Posted On: November 15, 2008 by Michael J. Hassen Email This Post

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Labor Law And UCL Class Action Lawsuits Swap Spots In Weekly Class Action Filings In California State And Federal Courts As Employment-Related Class Actions Regain Top Spot

To assist class action defense attorneys anticipate the types of class action lawsuits against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers November 7 - 13, 2008, during which time 41 new class action lawsuits were filed. Labor law class actions generally top the list of the new class action filings by a wide margin. Last week was an exception, however, as class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, seized the top spot. But this week, new class action lawsuits alleging employment-related claims regained the top spot. There were a total of 18 new labor law class actions filed during the relevant time period, representing 44% of the total number of new class actions filed. Not surprisingly, the only other category that satisfied the 10% threshold involved UCLclass actions, with 15 new filings (37%).

Posted On: November 8, 2008 by Michael J. Hassen Email This Post

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UCL Class Action Lawsuits Seize Top Spot from Labor Law Class Actions In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers October 31 - November 6, 2008, during which time 39 new class action lawsuits were filed. Labor law class actions generally top the list of the new class action filings, often by a strikingly wide margin. This past week, however, new class action lawsuits alleging employment-related claims dropped substantially, allowing class actions alleging violations of California's Unfair Competition Law (UCL), which include false advertising claims, to seize the top spot. There were a total of 13 new UCL class actions filed during the relevant time period, representing 33% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved labor law class actions, with 12 new filings (31%).

Posted On: November 7, 2008 by Michael J. Hassen Email This Post

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Class Action Defense Cases—In re Toys “R” Us: Judicial Panel On Multidistrict Litigation (MDL) Grants Defense Motion To Centralize Class Action Litigation In Central District of California

Judicial Panel Grants Defense Request for Pretrial Coordination of Two Class Action Lawsuits Pursuant to 28 U.S.C. § 1407, Opposed by Illinois Class Action Plaintiffs, and Transfers Actions to Central District of California

Two putative nationwide class actions were filed in the Central District of California and the Northern District of Illinois against Toys “R” Us alleging violations of the federal Fair and Accurate Credit Transactions Act (FACTA); specifically, the class action complaints allege that defendant printed “certain credit and debit card information on customer receipts” in violation of FACTA.” In re Toys "R" Us - Delaware, Inc., Fair & Accurate Credit Transactions Act (FACTA) Litig., ___ F.Supp.2d ___ (Jud.Pan.Mult.Lit. October 9, 2008) [Slip Opn., at 1]. Defense attorneys filed a motion with the Judicial Panel for Multidistrict Litigation (MDL) requesting centralization of the class actions pursuant to 28 U.S.C. § 1407 in the Central District of California; plaintiffs in California class action – which is “significantly more advanced” than the Illinois action – did not oppose the motion, but plaintiffs in the Illinois class action did oppose the motion. Id. The Illinois class action plaintiff argued in part that centralization was unnecessary because there are only two actions pending; the Judicial Panel, however, concluded, “Although only two actions are now pending, they are brought on behalf of nearly identical putative nationwide classes, and there is a risk of inconsistent rulings on class certification.” Id. Even though there were only two actions, centralization was appropriate under Section 1407 because “[it] will eliminate duplicative discovery; prevent inconsistent pretrial rulings, especially with respect to class certification; and conserve the resources of the parties, their counsel and the judiciary.” Id. Accordingly, the Judicial Panel granted the motion to centralize the class action lawsuits and agreed that the Central District of California was the appropriate transferee court because the “first-filed action has been pending there for almost two years.” Id., at 1-2.

Download PDF file of In re Toys "R" Us - Delaware, Inc., Fair & Accurate Credit Transactions Act (FACTA) Litigation Transfer Order

Posted On: November 1, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Hold Top Spot In Weekly Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers October 24 - 30, 2008, during which time 53 new class action lawsuits were filed. Class actions alleging employment-related claims generally top the list of the new class action filings by a wide margin. This past week, 25 of the new class actions alleged labor law claims, representing 47% of the total number of new class actions filed. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 12 new filings (23%), and class action lawsuits alleging violations of California's Song-Beverly Act, with 6 new filings (11%).

Posted On: October 25, 2008 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Labor Law Claims Maintain Top Spot In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers October 17 - 23, 2008, during which time 39 new class action lawsuits were filed. Class actions alleging employment-related claims generally top the list of the new class action filings by a wide margin. This past week, 23 of the new class actions alleged labor law claims, representing 59% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 9 new filings (23%).

Posted On: October 18, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Dominate New Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers October 10 - 16, 2008, during which time 50 new class action lawsuits were filed. Generally labor law class action complaints top the list of the new class action filings by a wide margin. This past week, 30 of the new class actions alleged employment-related claims, representing 60% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 8 new filings (16%).

Posted On: October 11, 2008 by Michael J. Hassen Email This Post

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Slow Week For Class Actions Dominated By Labor Law Class Action Lawsuits In New Class Action Filings In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers October 3 - 9, 2008, during which time only 27 new class action lawsuits were filed. Class action complaints alleging employment-related claims generally head the list of the new class action filings by a wide margin. This again proved to be true. During the past week, 21 of the new labor law class actions, representing an incredible 78% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 5 new filings (19%).

Posted On: October 4, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Dominate New Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the kinds of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers September 26 - October 2, 2008, during which time 34 new class action lawsuits were filed. It is rare that labor law class action complaints do not top the list of the new class action filings, and this past week was no exception. During the past week, 21 of the new labor law class actions, representing 62% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 8 new filings (24%).

Posted On: September 27, 2008 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Asserting Employment-Related Claims Hold Top Spot Among New Class Action Filings In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers September 19 - 25, 2008, during which time 43 new class action lawsuits were filed. It is rare that labor law class action complaints do not top the list of the new class action filings, and this past week was no exception. During the past week, 26 of the new class action lawsuits involved labor law claims, representing fully 60% of the total number of new class actions filed. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 9 new filings (21%).

Posted On: September 20, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Maintain Dominance Among New Class Action Filings In California State And Federal Courts In Heavy Week For New Class Action Cases

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California state and federal courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers September 12 - 18, 2008, during which time an unusually high number of new class action lawsuits were filed -- 61. Class action lawsuits asserting employment-related claims generally top the new class action filings list, often by a wide margin. This yet again proved to be true. During the past week, 28 of the new class action lawsuits involved labor law claims, representing 46% of the total number of new class actions filed. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 9 new filings (15%), and class action lawsuits alleging violations federal securities laws, with 8 new filings (13%).

Posted On: September 13, 2008 by Michael J. Hassen Email This Post

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Class Action Lawsuits Involving Employment-Related Claims Retain Top Spot Among New Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers September 5 - 11, 2008, during which time 31 new class action lawsuits were filed. Labor law class action lawsuits generally top the new class action filings list by a wide margin, and during the applicable reporting period 14 of the new class action lawsuits (45%) asserted employment-related claims. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 7 new filings (23%), and class action lawsuits alleging violations or privacy rights by dissemination or failure to protect the personal information of consumers, with 3 new filings (10%).

Posted On: September 6, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Regain Top Spot Among New Class Action Filings In California State And Federal Courts During Past Week

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California state and federal courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the holiday-shortened week of August 29 - September 4, 2008, during which time only 26 new class action lawsuits were filed. Labor law class action lawsuits generally head the list of new class action filings in California state and federal courts, but last week class actions alleging unfair business practices topped the list. During this reporting period, 16 of the new class action lawsuits (62%) asserted employment-related claims. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 5 new filings (19%).

Posted On: August 30, 2008 by Michael J. Hassen Email This Post

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UCL Class Action Lawsuits Supplant Labor Law Class Action Lawsuits For Top Spot Among New Class Action Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers August 22 - 28, 2008, during which time 39 new class action lawsuits were filed. Labor law class action lawsuits generally top the list of new class action filings in California state and federal courts, often by a wide margin. This past week, however, proved an exception to this pattern. During this reporting period, 14 of the new class action lawsuits (36%) alleged violations of California's unfair business practices statute, which include false advertising claims. New labor law class action lawsuits came in a close second, with 13 new filings (33%). The only other category that satisfied the 10% threshold involved class action lawsuits alleging securities-related claims, with 4 new filings (10%).

Posted On: August 23, 2008 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Involving Labor Law Claims Again Hold Top Spot Among Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers August 15 - 21, 2008, during which time 36 new class action lawsuits were filed. Labor law class action lawsuits generally top the list of new class action filings in California state and federal courts. During this reporting period, 18 of the new class action lawsuits (50%) asserted employment-related claims. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 8 new filings (22%), and class action lawsuits alleging securities-related claims, with 4 new filings (11%).

Posted On: August 16, 2008 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Continue Dominance Among Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers August 8 - 14, 2008, during which time 37 new class action lawsuits were filed. Labor law class action lawsuits generally top the list of new class action filings in California state and federal courts, often by a wide margin, and this again proved to be the case. Twenty-four (24) new labor law class action lawsuits were filed during the past week, representing 65% of the total number of new class action lawsuits filed during the time period. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 5 new filings (14%).

Posted On: August 9, 2008 by Michael J. Hassen Email This Post

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Gap Narrows And Percentage Of Labor Law Class Action Lawsuits Filed During Past Week Declines, But Labor Law Class Actions Continue To Top List Of New Class Actions Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers August 1 - 7, 2008, during which time 44 new class action lawsuits were filed. Labor law class action lawsuits generally top the list, often by a wide margin and often accounting for more than 50% of the new class action filings. This past week, 20 new labor law class actions, representing 45% of the total number of new class action lawsuits filed during the reporting period. The only other categories that met the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 13 new filings (30%), and class action lawsuits alleging violations of federal securities laws, with five (5) new filings (11%).

Posted On: August 2, 2008 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Involving Employment-Related Maintain Top Spot Among Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers July 25 - 31, 2008, during which time 50 new class action lawsuits were filed. Labor law class action lawsuits generally top the list of new class action filings in California state and federal courts, often by a wide margin, and this again proved to be the case. Twenty-five (25) new labor law class action lawsuits were filed during the past week, representing 50% of the total number of new class action lawsuits filed during the time period. The only other categories that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 8 new filings (16%), and class action lawsuits alleging federal antitrust violations, with 6 new filings (12%).

Posted On: July 26, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Dominate New Class Action Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class action lawsuits against which they will have to defend in California state and federal courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers July 18 - 24, 2008, during which time 46 new class action lawsuits were filed. Labor law class action lawsuits generally top the list of new class action filings in California state and federal courts, and this past week was not an exception. Twenty (20) new class actions asserting employment-related claims were filed during the past week, representing 43% of the total number of new class action lawsuits filed during this reporting period. (We note that while this figure far outnumbers the nearest category, it is well below the level that labor law class actions often hit.) The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 6 new filings (13%).

Posted On: July 24, 2008 by Michael J. Hassen Email This Post

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California Governor Weighs In On Appellate Court Opinion In Brinker Restaurant Class Action

This morning we posted an article on yesterday's California Court of Appeal opinion in Brinker Restaurant Corp. v. Superior Court, ___Cal.App.4th ___ (Cal.App. July 22, 2008). We failed to mention that yesterday California's Governor, Arnold Schwarzenegger, issued a press release on the opinion, and on the topic of employee meal and rest breaks. The Governor's press release states:

We are pleased that the California Court of Appeal issued today a decision squarely addressing many of the central issues in dispute concerning meal and rest periods. The confusing and conflicting interpretations of the meal and rest period requirements have harmed both employees and employers. Today's decision promotes the public interest by providing employers, employees, the courts and the labor commissioner the clarity and precedent needed to apply meal and rest period requirements consistently.

The official press release may be found here.

Posted On: July 19, 2008 by Michael J. Hassen Email This Post

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Employment Law Class Action Lawsuits Maintain Grip On Top Of List Of New Class Actions Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers July 11 - 17, 2008, during which time 43 new class action lawsuits were filed. Class actions involving employment-related claims almost always top this list. This proved true once again. Twenty-one (21) new labor law class actions were filed during the past week, representing 49% of the total number of new class action lawsuits filed during this reporting period. The only other category that satisfied the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with 11 new filings (26%).

Posted On: July 12, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Head List Of New Class Actions Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers July 3 - 10, 2008, during which time 40 new class action lawsuits were filed. Labor law class action lawsuits generally top the list, often by a wide margin, and this past week was no exception. Fully half of the new class action lawsuits filed during the past week were new labor law class actions; 20 such class actions were filed, representing 50% of the total number of new class action lawsuits. The only other categories that met the 10% threshold involved class action lawsuits alleging unfair business practice claims, which include false advertising claims, with six (6) new filings (15%), and class action lawsuits alleging violations of federal antitrust laws, with four (4) new filings (10%).

Posted On: July 5, 2008 by Michael J. Hassen Email This Post

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Employment Class Action Lawsuits Again Top List Of New Class Action Cases Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers June 27 - July 2, 2008, during which time 39 new class action lawsuits were filed. Class action lawsuits alleging employment-related claims generally top the list, and this was once again the case. This past week, 21 new labor law class actions lawsuits were filed, representing 54% of the total number of new class action lawsuits. The only other categories that met the 10% threshold involved federal antitrust class actions and class action lawsuits alleging unfair business practice claims, which include false advertising claims, each with four (4) new filings (10%).

Posted On: June 28, 2008 by Michael J. Hassen Email This Post

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Business As Usual: Labor Law Class Action Lawsuits Dominate New Class Action Cases Filed In California State And Federal Courts Over The Past Week

To assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers June 20 - 26, 2008, during which time 47 new class action lawsuits were filed. With rare exception, labor law class action lawsuits generally top the list of new class action cases by a wide margin. This past week was no exception, as employment-related class actions lawsuits accounted for fully 28 of the new class actions filed during this reporting period (60% of the total number of new class action lawsuits during the past week). Only one other category met the 10% threshold -- class action lawsuits alleging unfair business practice claims, which include false advertising claims, with five (5) new class actions (11%).

Posted On: June 26, 2008 by Michael J. Hassen Email This Post

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SUPREME COURT CUTS CLASS ACTION PUNITIVE DAMAGE AWARD IN EXXON VALDEZ CLASS ACTION FROM $2.5 BILLION TO $500 MILLION

United States Supreme Court Sets 1:1 Ratio for Punitive Damage Awards under Federal Maritime Law and Reduces $2.5 Billion Award in Exxon Valdez Class Action to $500 Million, Ending 20-year Class Action Fight

The United States Supreme Court issued a stunning ruling yesterday, holding that a punitive damage to compensatory damage ratio of 1:1 is a "fair upper limit" in federal maritime cases. The opinion brings an end to the class action lawsuit filed in the aftermath of the Exxon Valdez oil spill in Alaska nearly 20 years ago. That class action eventually resulted in a $5 billion punitive damage award, which the Ninth Circuit reduced to $2.5 billion. The Supreme Court reduced that award further, setting it at $500 million in light of the $507 million compensatory damage award. The Class Action Defense Blog will post a summary of the Supreme Court opinion on Monday, June 30. The opinion may be downloaded below.

Download PDF file of Exxon Shipping v. Baker

Posted On: June 21, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Regain Top Spot Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers June 13 - 19, 2008, during which time 38 new class action lawsuits were filed. Employment related class action lawsuits generally top the list of new class action cases, often by a wide margin. Last week, however, unfair business practice class actions topped the list. But this variance was short-lived: employment-related class actions lawsuits regained the top spot this week. During the time period covered by this post, 17 new class actions were filed alleging various labor law violations (45% of the total number of new class action lawsuits during the past week). Only one other category met the 10% threshold -- class action lawsuits alleging unfair business practice claims, which include false advertising claims, with five (5) new class actions (13%).

Posted On: June 15, 2008 by Michael J. Hassen Email This Post

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HAPPY FATHER'S DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog extends best wishes for a happy Father's Day. A new class action article will be published tomorrow.

Posted On: June 14, 2008 by Michael J. Hassen Email This Post

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Unfair Business Practice Class Action Cases Finally Top Labor Law Class Action Cases In Weekly List Of Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers June 6 – 12, 2008, during which time 51 new class action lawsuits were filed. Employment related class action lawsuits generally top the list of new class action cases by a wide margin. Indeed, the author cannot recall the last time any category toppedDuring the time period covered by this post, however, class action complaints alleging unfair business practices, including false advertising claims, actually topped the list. Twenty (20) new class actions were filed this reporting period, accounting for 39% of the total number of new class actions filed during the period. The only category of class actions to break the 10% threshold alleged, of course, employment-related claims; 19 new labor law class action cases were filed, representing 37% of the total number of new class actions filed.

Posted On: June 7, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Top List Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers May 30 – June 5, 2008, during which time 47 new class action lawsuits were filed. Employment related class action lawsuits generally top the list of new class action cases by a wide margin. During the time period covered by this post, 19 new class actions were filed alleging various labor law violations (40% of the total number of new class action lawsuits during the past week). Only two other categories of class action lawsuits passed the 10% threshold -- class action lawsuits alleging violations of California's unfair business practice claims, which include false advertising claims, with six (6) new class actions (13%), and class actions alleging violations of California's Song-Beverly Act (which, in broad terms, prohibits retailers from requesting that customer provide certain personal information at point of sale in connection with credit card purchases), with five (5) new filings (11%).

Posted On: June 4, 2008 by Michael J. Hassen Email This Post

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Class Action Defense News—Brocade Agrees To Pay $160 Million To Settle Shareholder Class Action Lawsuit Involving Backdating Of Stock Options

Shareholder Class Action Against Brocade Communications Systems Arising out of Options Backdating Settled for $160 Million

Mark Maremont and John Hechinger of the Wall Street Journal report today that Brocade Communications Systems has agreed to pay $160 million to settle a class action lawsuit filed by shareholders. The class action sought damages allegedly caused by the backdating of stock options. The settlement followed the San Francisco federal court’s ruling last month that Brocade was liable for the conduct of its former Chief Executive Officer, Gregory Reyes, who was sentenced last January to 21 months in federal prison for his role in the scandal. This ruling, coupled with the district court earlier order granting summary judgment in favor of the class action plaintiffs on Mr. Reyes’s fault in the matters placed at issue by the class action complaint, left Brocade with two choices: settle, or proceed to trial with the only issue being the amount of damages to be awarded.

The article, entitled “Brocade Settles Suit for $160 Million,” may be found on page B4 of the June 3, 2008 edition of The Wall Street Journal.

Posted On: June 3, 2008 by Michael J. Hassen Email This Post

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Class Action Defense News—Class Action Plaintiff Lawyer Melvyn Weiss Sentenced To 30 Months In Federal Prison

Melvyn Weiss, Noted Class Action Plaintiff Focusing on Securities Class Actions, Sentenced to 30 Months and Ordered to Pay $10 Million

We have written several articles covering the criminal charges against Melvyn Weiss and his former law partners, David Bershad and Steven Schulman, as well as another former Weiss law partner, William Lerach. The final chapter in the criminal charges against Mr. Weiss came to a close on June 2, 2008, when the federal court sentenced the 72-year-old Mr. Weiss to 30 months in federal prison. Rhonda Rundle and Nathan Koppel report on this event in today’s Wall Street Journal, writing that while the federal court referred to the 275 letters in support of Mr. Weiss as “a showing that I don’t think I’ve ever seen,” he nonetheless handed down a prison sentence very near to the 33-month prison term requested by prosecutors. Government filings reportedly place Mr. Weiss’s share of his law firm’s profits at more than $200 million.

The article, entitled “Weiss Gets 30-Month Sentence: Law Firms Ability To Be Lead Counsel Allowed for Big Fees,” may be found on page B4 of the June 3, 2008 edition of The Wall Street Journal.

Posted On: May 31, 2008 by Michael J. Hassen Email This Post

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Employment-Related Class Action Lawsuit Filings Drop But Labor Law Class Actions Retain Top Spot Of Weekly Class Action Cases Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers May 23 – 29, 2008, during which time 48 new class action lawsuits were filed. Typically, labor law class action lawsuits top the list of new class action filings by a wide margin. This past week, the number of new employment-related class action lawsuits filed in California dropped, from 30 during the prior reporting period to 23, but this still represented 48% of the total number of new class actions filed this past week...more than enough to retain the top spot. Like last week, the only other class action category to meet the 10% threshold alleged violations of California Unfair Competition Law (UCL), which includes false advertising claims, with 9 new filings (19%).

Posted On: May 27, 2008 by Michael J. Hassen Email This Post

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Class Action Defense Issues–New York Attorney General Wins “Class Action” Against Dell Alleging Fraud, False Advertising And Deceptive Business Practices

In May 2007, New York State Attorney General Andrew Cuomo filed a lawsuit against Dell and Dell Financial Services (collectively “Dell”) on behalf of New York residents alleging that it advertised “attractively priced computer packages, promotional financing that typically features a no interest and/or no payment period, large rebates, and free or upgraded accessories,” but that “many of the benefits and inducements featured in Dell's advertisements are illusory.” A copy of the lawsuit may be found here. New York’s Attorney General today announced that it won this lawsuit, obtaining a court finding that “Dell has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates.” A copy of the trial court’s order and decision may be found here.

Posted On: May 26, 2008 by Michael J. Hassen Email This Post

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HAPPY MEMORIAL DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy Memorial Day. A new class action article, summarizing the recent California Court of Appeal opinion discussing California's Song-Beverly Act, will be published tomorrow.

Posted On: May 24, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Dominate List Of Weekly Class Action Cases Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers May 16 – 22, 2008, during which time 47 new class action lawsuits were filed. Once again class actions asserting employment-related claims topped the list of new class action filings by a wide margin. During the time period covered by this post, 30 new class actions were filed alleging employment-related claims (64% of the total number of new class action lawsuits). The only other category of class action lawsuits to break the 10% threshold alleged violations of California Unfair Competition Law (UCL), which includes false advertising claims, with 5 new filings (11%).

Posted On: May 17, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Continue To Top List Of Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers May 9 – 15, 2008, during which time 54 new class action lawsuits were filed. Employment related class action lawsuits generally top the list of new class action cases by a wide margin. During the time period covered by this post, 28 new class actions were filed alleging various labor law violations (52% of the total number of new class action lawsuits during the past week). Only two other categories of class action lawsuits passed the 10% threshold -- class action lawsuits alleging violations of California's unfair business practice claims, which include false advertising claims, with seven (7) new class actions (13%), and class actions alleging antitrust violations, with six (6) new filings (11%).

Posted On: May 11, 2008 by Michael J. Hassen Email This Post

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HAPPY MOTHER'S DAY FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog extends best wishes for a happy Mother's Day. A new class action article will be published tomorrow.

Posted On: May 10, 2008 by Michael J. Hassen Email This Post

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No Surprise: Employment-Related Class Action Cases Top List Of Class Action Lawsuits Filed In California State And Federal Courts Over The Past Week

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers May 2 – 8, 2008, during which time 39 new class action lawsuits were filed. Readers know that labor law class actions almost always top the list of new class action cases, often by a wide margin, and this proved true yet again. During the time period covered by this post, 17 new class actions were filed alleging various labor law violations (44% of the total number of new class action lawsuits during the past week). The only other category of class action lawsuits that even managed to break the 10% threshold involved California unfair business practice claims, which include false advertising claims, with nine (9) new class actions (23%).

Posted On: May 3, 2008 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Again Outstrip Other Categories Of Class Action Filings In Weekly List Of New Class Action Cases Filed In California State And Federal Courts

As a resource for California class action defense attorneys, so that they may anticipate the types of class actions against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers April 25 – May 1, 2008, during which time 46 new class action lawsuits were filed. Labor law class actions generally top the list of new class action cases by a wide margin, and it has been some time since any other category has threatened to surpass employment-related class action claims. During the time period covered by this post, 29 new class actions were filed alleging various labor law violations (63% of the total number of new class action lawsuits during the past week). The only other category of class action lawsuits that even managed to break the 10% threshold involved California unfair business practice claims, which include false advertising allegations, with seven (7) new class actions (15%).

Posted On: April 30, 2008 by Michael J. Hassen Email This Post

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Weyerhauser Loses Antitrust Class Action Lawsuit in Oregon As Jury Awards $28 Million

Oregon Jury Awards $28 Million in Antitrust Class Action Against Weyerhauser

On April 29, 2008, Weyerhauser lost a class action lawsuit filed in Oregon; the class action complaint reportedly alleged antitrust violations in that Weyerhauser allegedly monopolized the market for finished alder lumber. A jury found against Weyerhauser and awarded nearly $28 million in damages, which will be trebled under antitrust laws. Weyerhauser has promised to appeal the judgment.

Posted On: April 29, 2008 by Michael J. Hassen Email This Post

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Class Action Defense News—Colorado State Court Grants Class Action Status To Complaint Against EchoStar

Eight Years After Filing of Class Action Complaint Against EchoStar, now Dish Network, Colorado State Court Grants Plaintiffs’ Motion to Certify Litigation as a Class Action

The Denver Post reports that the Arapahoe County trial court has granted plaintiffs’ motion to certify a lawsuit against EchoStar as a class action. The class action complaint reportedly was filed by “thousands of [EchoStar’s] retail distributors” eight years ago. The trial court, Judge John Wheeler, is quoted by the Post of accusing defense attorneys of “a willingness and proclivity for drawing out legal proceedings as long as humanly possible and burying their opponents in paperwork and filings.” According to the class action, EchoStar failed to pay commissions and fees due to direct and indirect retailers of its satellite television service.

Posted On: April 26, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Dominate List Of Weekly Class Action Cases Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers April 18 – 24, 2008, during which time 35 new class action lawsuits were filed. Once again class actions asserting employment-related claims topped the list of new class action filings by a wide margin. During the time period covered by this post, 21 new class actions were filed alleging employment-related claims (60% of the total number of new class action lawsuits). The only other category of class action lawsuits to break the 10% threshold alleged violations of California Unfair Competition Law (UCL), which includes false advertising claims, with 5 new filings (14%).

Posted On: April 19, 2008 by Michael J. Hassen Email This Post

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New Employment-Related Class Action Lawsuits Rise As Labor Law Class Action Filings Again Top List Of Weekly Class Action Cases Filed In California State And Federal Courts

As a resource for California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers April 11 – 17, 2008, during which time 44 new class action lawsuits were filed. Labor law class actions generally top the list of new class action cases, often by a wide margin. During the time period covered by this post, 26 new class actions were filed alleging employment-related claims (59% of the total number of new class action lawsuits). No other category of class action lawsuits even managed to break the 10% threshold.

Posted On: April 12, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Drop But Maintain Grip On Top Spot Of Weekly Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers April 4 – 10, 2008, during which time 42 new class action lawsuits were filed. Class actions alleging employment-related claims typically top the list of new class action cases by a wide margin. Last week, for example, 61% of the new class action filings were labor law class actions, while the next nearest category accounted for only 12% of the new class actions filed that week. During the time period covered by this post, 19 new class actions were filed alleging employment-related claims (45% of the total number of new class action lawsuits). Only two other categories managed to break the 10% threshold: class actions alleging violations of California's unfair competition law (UCL) class action cases, which includes class actions alleging false advertising claims, and class actions alleging violations of federal securities laws, each of which had five (5) new filings (12%).

Posted On: April 5, 2008 by Michael J. Hassen Email This Post

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Employment-Related Class Action Lawsuits Command Top Spot On List Of Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers March 28 – April 4, 2008, during which time 49 new class action lawsuits were filed. It is a rare week in which labor law class action cases do not lead this list, and during this past week 30 new class actions were filed alleging employment-related claims (61% of the total number of new class action lawsuits). Only one other category even managed to break the 10% threshold for this class action report: California unfair competition law (UCL) class action cases, which includes class actions alleging false advertising claims, with six (6) new filings (12%).

Posted On: April 4, 2008 by Michael J. Hassen Email This Post

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Copycat Class Action Filed Against Starbucks In New York Following $100+ Million Class Action Judgment In California

Second Circuit Rules District Court Erred in Certifying Class Action because Individual Proof of Reliance on Tobacco Companies’ Marketing of “Light” Cigarettes would be Required

Steven Greenhouse of The New York Times reports today that a copycat lawsuit has been filed in New York federal court against Starbucks seeking damages arising out of the company policy of sharing store tips with shift supervisors. The class action, filed by a former barista, comes hot on the heels of a $105 million California class action judgment against Starbucks. (Our summary of that judgment may be found here.) Mr. Greenhouse quotes plaintiffs’ counsel as admitting that the New York class action “mak[es] literally the same pitch as was made in the California case.” Starbucks has vowed to appeal the California judgment. Starbucks insists that shift supervisors are essentially baristas and therefore may share in customer tips. The New York Times quotes a company statement that “Shift supervisors are not managers and have no managerial authority.”

Mr. Greenhouse’s article, entitled “Starbucks Sued in New York Over Tip Issue,” may be found in Section B of the April 4, 2008 edition of The New York Times.

Posted On: April 4, 2008 by Michael J. Hassen Email This Post

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Second Circuit Reverses District Court Certification Of Class Action Against Tobacco Companies In “Light Cigarette” Class Action Case

The Los Angeles Times reports today on the Second Circuit opinion reversing class action certification of a fraud under RICO class action against various tobacco companies. (Our initial news on this opinion may be found here, and our summary of the Circuit Court opinion may be found here.) The Los Angeles Times notes that the damages sought by the class action “theoretically could have ballooned to as much as $800 billion,” and quotes a defense attorney as noting that the decision has “tremendous significance” due to its potential impact on numerous similar class action lawsuits pending in other state and federal courts.

The article, entitled “Light cigarette smokers lose class-action status,” may be found in the Business Section of the April 4, 2008 edition of the Los Angeles Times.

Posted On: April 4, 2008 by Michael J. Hassen Email This Post

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Second Circuit Court of Appeals Reverses District Court Order Certifying Class Action Against Tobacco Companies In “Light” Cigarettes Case Holding that Individual Proof of Reliance on Defendants’ Marketing Precluded Class Action Treatment

Chad Bray and Anjali Cordeiro of The Wall Street Journal report today on the Second Circuit ruling that reverses class action certification in a tobacco lights case. (Our news report may be found here, and our summary of the Second Circuit opinion may be found here.) Noting that the class action sought “$280 billion in damages, which could be tripled to more than $800 billion if the smokers’ federal racketeering claims are granted,” the Circuit Court concluded that “difference[s] in plaintiffs’ knowledge and levels of awareness made it difficult to establish a common reliance by the entire class of smokers on the cigarette maker’s marketing.” The lower court had agreed with plaintiffs that the tobacco company defendants had misled the public into believing that “light” cigarettes were less harmful than regular cigarettes, but the Court of Appeals agreed with defense attorneys that individual issues predominate over common issues. The Wall Street Journal summarizes the defense claim that “the issues were so individualized for each brand or each smoker’s own circumstances that the case couldn’t be effectively grouped in such a class.” The article also quotes from the Circuit Court opinion, “Each plaintiff in this case could have elected to purchase light cigarettes for any number of reasons, including a preference for the taste and a feeling that smoking lights was ‘cool.’”

The article, entitled “Tobacco Firms Score Victory As Class-Action Suit is Denied,” may be found on page B3 of the April 4, 2008 edition of The Wall Street Journal.

Posted On: April 4, 2008 by Michael J. Hassen Email This Post

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District Court Erred In Certifying Class Action Against Tobacco Companies In “Light” Cigarettes Case Second Circuit Holds

Second Circuit Rules District Court Erred in Certifying Class Action because Individual Proof of Reliance on Tobacco Companies’ Marketing of “Light” Cigarettes would be Required

Stephanie Saul of The New York Times reports today on a “victory for the tobacco industry” – the Second Circuit opinion reversing class action certification of “an $800 billion class-action lawsuit on behalf of smokers who said they had been misled that light cigarettes were safer than regular ones.” (Our initial report on that decision may be found here, and our summary of the Circuit Court opinion may be found here.) Ms. Saul notes that the Second Circuit concluded it would not be possible “to generalize about why smokers chose light cigarettes.” And while the ruling may potentially impact some of the numerous similar class action lawsuits pending in other state and federal courts, the Times explains that the basis of this particular class action was not that smokers suffered personal injury from smoking “light” cigarettes, but rather that they suffered economically because had they known that “light” cigarettes were just as harmful as regular cigarettes, smokers would have purchased the less expensive, regular cigarettes. Ms. Saul notes also that many cases are waiting for the United States Supreme Court to weigh in on the issue, as a decision out of Maine is presently pending before the High Court.

Ms. Saul’s article, entitled “Appeals Court Panel Throws out Class Action Over Light Cigarettes,” may be found in Section C of the April 4, 2008 edition of The New York Times.

Posted On: April 3, 2008 by Michael J. Hassen Email This Post

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Breaking News--Second Circuit Reverses Class Action Certification Against Philip Morris In "Light Cigarettes" Class Action Case

We have previously reported on the 540-page district court opinion certifying a class action against Philip Morris USA alleging fraud under the Racketeer Influenced and Corrupt Organizations Act (RICO) arising out of the advertising and sale of "light cigarettes." See Schwab v. Phillip Morris USA, Inc., 449 F.Supp.2d 992 (E.D.N.Y. 2006). That articule may be found here. The Second Circuit today reversed that district court opinion because "under RICO, each plaintiff must prove reliance, injury, and damages." Slip Opn., at 4. The Circuit Court held that the requirements for class action certification under Rule 23(b)(3) could not be met because individual questions predominate. Id., at 9.

We will post an article on the Second Circuit opinion tomorrow morning, but the interested reader may find the circuit court opinion below.

Download PDF file of McLaughlin v. Philip Morris USA, Inc.

Posted On: March 29, 2008 by Michael J. Hassen Email This Post

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No Surprise -- Labor Law Class Action Lawsuits Again Hold On To Top Spot In Weekly Class Action Filings In California State And Federal Courts

As a resource to defense attorneys who defend class actions in California, we provide weekly, unofficial summaries of the legal categories of new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers March 21 – 27, 2008, during which time 38 new class action lawsuits were filed (down substantially from the 58 new class action filings of the preceding week). Readers of this Blog know that class action lawsuits alleging labor lawclaims almost always top this list by a wide margin, and this past week was no exception. During the past week, 18 new class actions were filed alleging employment-related claims (47% of the total number of new class action lawsuits). Only two other categories managed to break the 10% threshold for this class action report: California unfair competition law (UCL) class action cases,which includes class actions alleging false advertising claims, with 10 new filings (26%), and federal antitrust class actions, with 4 new filings (11%).

Posted On: March 22, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue Dominance In Weekly Class Action Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the types of cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers March 14 – 20, 2008, during which time 58 new class action lawsuits were filed. Class action lawsuits alleging employment-related claims generally top this list, often by a wide margin, and this again proved to be true. During the past week, 28 new class actions were filed alleging employment-related claims (48% of the total number of new class action lawsuits). Only two other categories managed to break the 10% threshold for this class action report: California unfair competition law (UCL) class action cases,which includes class actions alleging false advertising claims, with 14 new filings (24%), and federal antitrust class actions, with 7 new filings (12%).

Posted On: March 21, 2008 by Michael J. Hassen Email This Post

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Starbucks Hit With $105 Million Judgment In Labor Law Class Action Brought By Baristas Alleging Improper Sharing Of Tips With Shift Supervisors

Andrea Chang of the Los Angeles Times reports today that a California state court in San Diego has ordered Starbucks to pay more than $100 in a class action brought by baristas. The class action – filed in 2004 – alleged “that shift supervisors, who also make coffee and serve customers, were illegally getting a cut of employee tips,” Ms. Chang reports. The San Diego Superior Court certified the class action in 2006, defining a class that reportedly “could affect as many as 100,000 current and former baristas who worked in California stores since October 2000.” Starbucks has vowed to appeal the judgment.

Ms. Chang’s article, entitled “Tips ruling is made to order for baristas: Starbucks must repay $100 million for gratuities shared with supervisors, a San Diego judge rules,” may be found in the Main News Section of the March 21, 2008 edition of the Los Angeles Times.

Posted On: March 21, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Against Starbucks, Alleging Improper Sharing Of Baristas Tips With Supervisors, Results In $105 Million Judgment And Injunctive Relief In Favor Of Members Of Class Action Suit

Vikas Bajaj of the New York Times reports today on the $105 million class action ruling by a California state court against Starbucks. The class action alleged, and the San Diego Superior Court agreed, that Starbucks improperly had permitted shift supervisors to share in tips left by customers for baristas. The New York Times reports, “The case centers on the division of labor between managers and rank-and-file workers. Under California labor law and rules, tips can be pooled and shared among workers but restaurant owners or their ‘agents,’ which are typically construed to mean managers and supervisors, cannot share in the money.” Like baristas, the shift supervisors at issue in the class action served customers and make coffee, but they also acted in a managerial capacity, “directing other employees, setting schedules and doing other managerial work.” In addition to the monetary award, the class action award included an injunction that would prohibit Starbucks from permitting shift supervisors from sharing in tips in the future. Separately, Starbucks has announced its intention to appeal the judgment.

Vikas Bajaj’s article, entitled “California Court Awards Starbucks Baristas $105 Million in Tip Dispute,” may be found in Section C. of the March 21, 2008 edition of the New York Times.

Posted On: March 15, 2008 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Employment-Related Claims Top List Of Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers March 7 – 13, 2008, during which time 54 new class action lawsuits were filed. It is a rare week in which labor law class action cases do not lead this list. During the past week, 29 new class actions were filed alleging employment-related claims (54% of the total number of new class action lawsuits). Only two other categories managed to break the 10% threshold for this class action report: federal antitrust class actions, with 7 new filings (13%), and California unfair competition law (UCL) class action cases,which includes class actions alleging false advertising claims, with six (6) new filings (11%).

Posted On: March 8, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Continue To Top List In Weekly Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the cases against which they may have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers February 29 – March 6, 2008, during which time 38 new class action lawsuits were filed. Labor law class actions generally top this list by a wide margin. During the past week, 16 new class actions were filed alleging employment-related claims (42% of the total number of new class action lawsuits). The only other categories to break the 10% threshold were California unfair competition law (UCL) class action cases,which includes class actions alleging false advertising claims, with eight (8) new filings (21%), and disability rights class action lawsuits, which had five (5) new class action filings (13%).

Posted On: March 1, 2008 by Michael J. Hassen Email This Post

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Class Action Lawsuit Filings Rise But Labor Law Class Action Cases Again Hold Top Spot In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers February 22 – 28, 2008, during which time 29 new class action lawsuits were filed. Employment law class actions generally top this list, often by a wide margin, and last week did not buck that trend. During the past week, 26 new labor law class action suits were filed (53% of the total number of new class action lawsuits). The only other categories to break the 10% threshold were antitrust class actions, which had seven (7) new class action filings (14%), and California unfair competition law (UCL) class action cases,which includes class actions alleging false advertising claims, with six (6) new filings (12%).

Posted On: February 23, 2008 by Michael J. Hassen Email This Post

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Number Of Class Action Lawsuits Drop During Past Week But Class Action Cases Involving Employment Law Claims Continue To Lead Weekly Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the types of lawsuits against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers February 15 – 21, 2008, during which time 22 new class action lawsuits were filed. Class actions implicating labor law claims generally top this list, and once again this was the case. During the past week, 13 new labor law class action filings (59% of the total number of new class action lawsuits). The only other category of class action complaints to break the 10% threshold were antitrust class actions, which had only three (3) new class action filings (14%).

Posted On: February 16, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Dominate Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers February 8 – 14, 2008, during which time 40 new class action lawsuits were filed. Labor law class actions generally top this list by a wide margin, and this yet again proved true with 21 new labor law class action filings (53% of the total number of new class action lawsuits). The only other category of class action complaints to break the 10% threshold were securities class actions with only four (4) new class action filings (10%).

Posted On: February 9, 2008 by Michael J. Hassen Email This Post

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Class Action Lawsuits Alleging Employment-Related Claims Retain Hold On Top Spot Of Weekly Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers February 1 – 7, 2008, during which time 35 new class action lawsuits were filed. New class action cases alleging various labor law claims generally top this list, often by a wide margin, and this proved especially true this past week 23 new labor law class actions were filed (66% of the total number of new class action lawsuits). New class action complaints alleging violations of California's unfair competition law (UCL), which include false advertising claims, and shareholder derivative suit class actions were the only other categories to meet the 10% threshold, with four (4) new class action filings each (11%).

Posted On: February 2, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Extend Hold On Top Spot Of Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the two-week period of January 25 – January 31, 2008, during which time 46 new class action lawsuits were filed. New class action cases alleging employment-related claims generally top this list, and this past week was no exception as 22 new labor law class actions were filed during this time period (48% of the total number of new class action lawsuits filed). New antitrust class action complaints came in a distant second with 7 new filings (15%), closely followed by class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, and class actions alleging violations of federal securities laws, each with 5 new class action filings (11%).

Posted On: January 26, 2008 by Michael J. Hassen Email This Post

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New Employment Law Class Action Cases Continue Hold On Top Spot Of Weekly Class Action Filings In California State And Federal Courts

To assist defense attorneys anticipate the types of class actions against which they will have to defend in California state and federal courts, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the two-week period of January 18 – January 25, 2008, during which time 39 new class action lawsuits were filed. Class actions alleging employment-related claims generally top this list, often by a wide margin, and labor law class actions continued to hold the top spot this past week with 15 new filings (representing 38% of the total number of new class action lawsuits filed). The only other category to break the 10% threshold involved class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, with 9 new class action filings (23%).

Posted On: January 24, 2008 by Michael J. Hassen Email This Post

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Illinois State Court Finally Grants Defense Motion For Summary Judgment In Stock Options Class Action Lawsuit Against CyberSource

After sitting on the motion for more than a year, Madison County Circuit Judge Daniel Stack finally granted summary judgment in favor of CyberSource, ending a class action challenging stock options. The class action complaint was filed five years ago, and defense attorneys had consented to class action treatment. The defense moved for summary judgment on the ground that the plaintiff never exercised the stock options and so never suffered any injury. The class action alleged that the plaintiff tried to exercise his stock options for PaylinX (which subsequently merged into CyberSource) but the company interfered with his efforts, but the court found no evidence to support the allegation. Accordingly, the court granted summary judgment and dismissed the class action.

Posted On: January 22, 2008 by Michael J. Hassen Email This Post

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Supreme Court Refuses To Hear Appeal In Enron Investor Class Action Lawsuit Against Wall Street Firms

Mark Anderson of The Wall Street Journal reports today that the United Supreme Court has agreed to hear an appeal of a decision by the United States Court of Appeals for the Fifth Circuit in a class action by Enron investors against numerous Wall Street firms, “striking a fatal blow against the class-action investor lawsuit.” Mr. Anderson notes that the High Court’s refusal to hear the class action appeal comes one week after the Court’s seminal decision in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., ___ U.S. ___, 2008 WL 123801 (January 15, 2008), a summary of which may be found here. Mr. Anderson further notes that the ruling “is an indication that the High Court doesn’t believe the Enron suit met the standards set in the Stoneridge ruling for securities class-action lawsuits to proceed.”

Mark Anderson’s article, entitled “Supreme Court Declines Suit Brought by Enron Investors,” may be found online and was posted January 22, 2008 on The Wall Street Journal.Online.

Posted On: January 19, 2008 by Michael J. Hassen Email This Post

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Supreme Court Agrees To Hear Appeal In Class Action Alleging Deceptive Advertising Of Light Cigarettes And Decision Will Impact Numerous Class Action Lawsuits Based On Identical Challenges

Mark Anderson of The Wall Street Journal reports today that the United Supreme Court has agreed to hear an appeal of a decision by the United States Court of Appeals for the First Circuit in a class action against Phillip Morris involving advertising of light cigarettes. The class action is but one of numerous class action lawsuits in state and federal courts alleging, in essence, that Phillip Morris and other tobacco companies falsely advertised “light” cigarettes as being safer than regular cigarettes. In part, tobacco companies have urged that “the Federal Trade Commission’s regulation of cigarette advertising bars claims under a state law.” A federal district court agreed with Phillip Morris, but the First Circuit reversed. In so doing, the First Circuit created a circuit conflict with a decision out of the Fifth Circuit that barred a similar class action lawsuit. Mr. Anderson quotes a Phillip Morris representative as stating, “A definitive answer to this question will significantly impact the outcome of dozens of pending lawsuits in which the plaintiffs are alleging billions of dollars in potential liability.” The author agrees that the impact on state and federal class action lawsuits against the tobacco industry will be substantial.

Mark Anderson’s article, entitled “Justices to Hear Cigarette Case,” may be found on page A6 of the January 19, 2008 edition of The Wall Street Journal.

Posted On: January 19, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Retain Top Spot But New Truth-In-Lending Act (TILA) Class Action Lawsuits Run A Close Second In New Class Action Filings In California State And Federal Courts

As a resource for California defense attorneys so that they may anticipate the types of class action lawsuits against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the two-week period of January 11 – January 17, 2008, during which time 57 new class action lawsuits were filed. While labor law class actions generally top this list by a wide margin, this past week a new category joined the list of top class action lawsuits -- federal Trust in Lending Act (TILA) lawsuits. Fourteen (14) employment-related class action lawsuits were filed during the past week, representing only 25% of the total number of new class action filings (compared with almost 60% of the class action filings during the preceding week). TILA class action cases came in second with 12 new filings (21%). Two other categories cracked the 10% threshold: those alleging violations of federal antitrust law violations with 9 new filings (16%), and those alleging violations of California's unfair competition law (UCL), which include false advertising claims, with 6 new class action filings (11%).

Posted On: January 15, 2008 by Michael J. Hassen Email This Post

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Securities Class Action Defense Cases--U.S. Supreme Court Affirms Judgment In Securities Class Action Seeking To Hold Customers And Suppliers Of Charter Communication Liable For Misleading Financial Statements

In a case of considerable importance to numerous securities class action lawsuits presently pending throughout the country, the United States Supreme Court today issued its opinion in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc., and affirmed the decision of the Eighth Circuit Court of Appeals. The underlying class action alleged securities fraud claims under, inter alia, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 based on misleading financial statements concerning Charter Communications. The class action complaint alleged that defendants Scientific-Atlanta and Motorola, who were customers and suppliers of Charter Communication, participated in a scheme to mislead Charter's auditor, Arthur Andersen LLP, in order to support false financial statements. The Eighth Circuit had affirmed judgment in favor of the customers/suppliers, and the U.S. Supreme Court today affirmed on the ground that investors did not rely on any statements or representations made by the customers/suppliers. A summary of the opinion will be posted tomorrow morning.

Posted On: January 12, 2008 by Michael J. Hassen Email This Post

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Employment Law Class Action Lawsuits Record More Than Six (6) Times New Cases As Any Other Category Of Class Actions In "Slow" Week For New Class Action Filings In California State And Federal Courts

In order to assist California defense attorneys anticipate the types of class action lawsuits against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the two-week period of January 4 – January 10, 2008, during which time only 32 new class action lawsuits were filed. While employment law class actions generally top this list by a wide margin, this was particularly true this past week as more than six (6) times as many labor law class action cases were filed as any other category of cases. Nineteen (19) employment-related class action lawsuits were filed during the past week, representing 59% of the total number of new class action filings. No other category of class actions cracked the 10% threshold. The nearest groups were new class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, and alleging violations of federal antitrust laws, each with 3 new class action filings (9%).

Posted On: January 5, 2008 by Michael J. Hassen Email This Post

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Class Action Defense Cases—California Court Of Appeal Grants Defense Request For Rehearing In Ticconi v. Blue Shield Class Action

Following its Original Panel Opinion Reversing Trial Court Denial of Plaintiff’s Class Action Certification Motion, California Court of Appeal Grants Defense Petition for Rehearing in Ticconi v. Blue Shield Class Action

The Los Angeles Times reports today that the California Court of Appeal has agreed to reconsider its opinion in Ticconi v. Blue Shield of Cal. Life & Health Ins. Co., 157 Cal.App.4th 707, 68 Cal.Rptr.3d 785 (Cal.App. 2007), which reversed a trial court order denying class action status to a lawsuit against Blue Shield. Our summary of the original appellate opinion in that putative class action, as well as the opinion itself, may be found here. As Times Staff Writer Lisa Girion explains, the prior decision “opened the door to class-action lawsuits by policyholders who had been dropped after they filed claims for medical care.” The underlying class action complaint alleged that Blue Shield wrongfully rescinded insurance coverage based on fraudulent statements in insurance policy applications, and the trial court denied class action status to the lawsuit on the grounds the individual issues related to Blue Shield’s fraud and unclean hands defenses would predominate over common issues. Ticconi, at 789. The Court of Appeal, in an decision handed down on December 4, 2007, had reversed, holding that the trial court erred in denying class action treatment because “[e]quitable defenses cannot be used to defeat a UCL cause of action and Blue Shield Life may not raise the defense of fraud based on statements that insureds made in an application for insurance where the application had been neither attached to nor endorsed on the policy when issued.” Ticconi, at 789 (citations omitted). Accordingly, “the diverse facts making up Blue Shield Life's fraud and unclean hands defenses [were] not to be factored in when determining whether the community of interest requirement is met.” Id., at 798.

Ms. Girion’s article, entitled “Insurer wins a reprieve on class actions,” may be found in the Business Section of the January 5, 2008 edition of the Los Angeles Times. The order granting rehearing was entered by the Court of Appeal on January 3, 2008.

Posted On: January 5, 2008 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Dominate Weekly Class Action Filings In California State And Federal Courts

As a resource to class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. In light of the holidays, this report covers the two-week period of December 21, 2007 – January 3, 2008, during which time 57 new class action lawsuits were filed. Labor law class action cases generally top this list, often by a wide margin, but new employment law actions completed dominated the class action filings during this time period. Thirty-three (33) employment-related class action lawsuits were filed during the past two weeks, representing 58% of the total number of new class action filings. The only other category of class actions to crack the 10% threshold alleged violations of California's unfair competition law (UCL), which include false advertising claims, with 9 new class action filings (16%).

Posted On: January 2, 2008 by Michael J. Hassen Email This Post

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Record Class Action Attorney Fee Award As Plaintiff Lawyers in Class Action Against Tyco Awarded $464 Million in Attorney Fees

District Court Awards Class Action Counsel Record $464 Million following $3.2 Billion Settlement in Class Action Against Tyco and its Auditors

Characterizing the case as “enormously complex,” United States District Court Judge Barbadoro awarded counsel for class action plaintiffs $464 million in legal fees and $29 million in costs arising out of the securities fraud class action lawsuit against Tyco and its auditors. The underlying class action settled for $3.2 billion, so the fee award to class action counsel represented 14.5% of the settlement. The attorney fee awarded eclipsed the previously record award of $366 (plus $10 million in costs) awarded to class action counsel following the $6.1 billion settlement in the WorldCom class action.

Posted On: January 2, 2008 by Michael J. Hassen Email This Post

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Travelers Settles Class Action Lawsuit And State Investigations Concerning Contingent Commission Payments To Brokers

The Wall Street Journal reports today that Travelers Cos. Has reached a tentative class action settlement of a shareholder class action, and that the company has separately agreed to “pay $6 million to settle several state investigations over how it paid brokers.” The amount to be paid to settle the class action has not yet been disclosed. The settlement follows a failed attempt by defense attorneys to obtain dismissal of the class action complaint. According to The Wall Street Journal, the lawsuit and state investigations arose out of allegations “that Travelers conspired with brokers to submit fake bids [for insurance policies] even though the brokers had already determined which insurer would get business from a policyholder.” Travelers allegedly paid “contingent commissions” to the brokers that were not disclosed to policyholders.

The article, entitled “Travelers Cos. Settles Shareholder Lawsuit,” may be found on page A8 of the January 2, 2008 edition of The Wall Street Journal.

Posted On: January 1, 2008 by Michael J. Hassen Email This Post

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HAPPY NEW YEAR FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very Happy New Year. A new class action article will be published tomorrow.

Posted On: December 31, 2007 by Michael J. Hassen Email This Post

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Federal Court Refuses To Certify Class Action In Lawsuit Arising Out Of 2005 Train Derailment

The Associated Press reports today that U.S. District Court Judge Harry Barnes of Arkansas has denied plaintiffs’ class action certification motion, but has permitted the lawsuit to proceed on an individual basis. According to AP, the class action complaint was filed following the 2005 derailment of a Union Pacific train; the derailment caused an explosion that killed a woman. Judge Barnes ruled that the lawsuit failed to satisfy the requirements for a class action, AP reports, but permitted that the four named plaintiffs may proceed to trial on June 2, 2008, on their individual claims.

The article, entitled “Judge denies class-action for lawsuit over 2005 UP train derailment,” was published by AP on December 31, 2007.

Posted On: December 29, 2007 by Michael J. Hassen Email This Post

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Weekly Summary Of New Class Action Lawsuits Filed In California State And Federal Courts To Be Combined And Reported Next Week

As frequent visitors to this site know, each Saturday we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. However, in light of the limited number of court days this past week and this upcoming week, we have decided to delay today's class action filing report. Next Saturday, the class action report shall include the cases filed over a two-week period.

Posted On: December 25, 2007 by Michael J. Hassen Email This Post

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MERRY CHRISTMAS/HAPPY HOLIDAYS FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very happy holiday season. A new class action article will be published tomorrow.

Posted On: December 24, 2007 by Michael J. Hassen Email This Post

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Federal Court Dismisses Class Action Against Lawyer-Rating Website Avvo

The Wall Street Journal reports today that U.S. District Court Judge Robert Lasnik of Seattle, Washington, has dismissed a putative class action against lawyer-rating website Avvo. The class action complaint challenged Avvo’s method of rating lawyers, and was filed by two lawyers who objected to the ratings they had received. According to The Wall Street Journal, the district court “ruled that there was no basis for cracking down on a lawyer-rating Web site merely because some of its rates didn’t like how they were portrayed.”

The article, entitled “Judging Lawyers,” may be found in the “Review & Outlook” section on page A10 of the December 24, 2007 edition of The Wall Street Journal.

Posted On: December 23, 2007 by Michael J. Hassen Email This Post

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Class Action Defense Cases—Class Action Counsel Seek Relief From Key Provision Of Proposed Settlement Agreement In Vioxx Class Action Litigation

Key Provision that Class Action Counsel Recommend Proposed Settlement of Class Action to All Clients Challenged by Certain Plaintiff Lawyers

As the hearing date on approval of the proposed Vioxx class action settlement nears, some of the lawyers for class action plaintiffs are seeking out of a key part of the settlement agreement. Specifically, the proposed settlement requires plaintiff counsel recommend the settlement to all of their clients; now, however, lawyers representing thousands of class action plaintiffs want permission to advise their clients to reject the deal. Merck reportedly considered this provision critical to the $4.85 billion settlement agreement, which would resolve more than 50,000 claims arising out of the prescription drug Vioxx. The lawyers argue that the settlement agreement infringes on their right to provide independent legal advice to their clients. In essence, plaintiff lawyers want to require Merck to settle the weak claims, but risk further litigation involving comparatively stronger claims. Merck’s approach had been to vigorously defend the Vioxx lawsuits, and it had prevailed in most of the 18 cases that had gone to trial.

Posted On: December 22, 2007 by Michael J. Hassen Email This Post

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FedEx Class Action Defense In Labor Law Class Action Lawsuits Braces For Impact Of IRS Ruling That FedEx Ground-Delivery Personnel Are Employees Rather Than Independent Contractors

Corey Dade of The Wall Street Journal reports today that the Internal Revenue Service has dealt a blow to FedEx in connection with labor law class action claims. Dade reports that the IRS “has determined that the roughly 13,000 independent contractors for Fed Corp.’s U.S. ground-delivery business in 2002 were, in fact, employees and assessed the company $319 million in back taxes and fines.” The article, based on information disclosed by FedEx in a filing with the Securities and Commission, characterizes the IRS ruling as “the most significant blow to an embattled model whose low operating costs have been critical to [its] rapid growth.” But FedEx has been hit with scores of lawsuits, including several class action suits alleging labor law violations. FedEx will reportedly appeal the IRS ruling, so the impact of the ruling on pending lawsuits is uncertain.

Corey Dade’s article, entitled “IRS Deals FedEx Setback on Classification of Workers,” may be found on page A4 of the December 22, 2007 edition of The Wall Street Journal.

Posted On: December 22, 2007 by Michael J. Hassen Email This Post

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Class Action Lawsuits Increase Dramatically Led By Substantial Rise In Securities Class Action Filings And Class Action Cases Arising Out Of Subprime Meltdown

The New York Times reported yesterday that class action lawsuits are on the rise because “[l]itigation stemming from the housing crisis is driving an increase in class-action filings.” The article, by Karen Donovan, states that class action filings in 2007 are up 58% from class action cases in 2006; while not explicitly stated in the article, it is clear that Ms. Donovan is referring to securities class actions only. The Wall Street Journal reports slightly different figures today, with an article by Nathan Koppel putting the increase in securities class action lawsuits at 43%. Whether one uses Ms. Donovan’s figure of 38 subprime-based securities class action filings in 2007 or Mr. Koppel’s figure of 32 subprime-based securities class action cases in 2007, the number is substantial in light of the fact that less than 200 total securities class action cases were filed last year and that no subprime-based securities class actions were filed in 2006.

Ms. Donovan’s article, entitled “Class-Action Cases Rise, Fueled by Subprime Troubles,” may be found online at nytimes.com and was posted on December 21, 2007. Mr. Koppel’s article, entitled “Securities Class-Action Lawsuits Climb by 43%,” may be found online at The Wall Street Journal Online and was posted on December 22, 2007.

Posted On: December 22, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Continue To Lead Weekly Class Action Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the type of cases against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of December 14 – December 20, 2007, during which time 37 new class action lawsuits were filed. Labor law class action cases generally top this list, and this proved to be true again. Sixteen (16) employment-related class action lawsuits were filed during this time period, representing 43% of the total number of new class action filings. Class actions alleging violations of federal antitrust laws came in second with 10 new filings (27%). The only other category of class actions to crack the 10% threshold alleged violations of California's unfair competition law (UCL), which include false advertising claims, with 4 new class action filings (11%).

Posted On: December 21, 2007 by Michael J. Hassen Email This Post

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Criminal Trial of Plaintiff Class Action Lawyer Melvyn Weiss To Remain In Los Angeles Federal Court Rules

Federal Court Rejects Bid By Defense Attorneys to Move Criminal Trial of Class Action Lawyer Melvyn Weiss to New York

We have previously discussed the criminal indictment of noted class action plaintiff lawyer Melvyn Weiss, co-founder of the securities fraud class action firm formerly known as Milberg Weiss . The Los Angeles Times reports today that Judge John Walter of the United States District Court for the Southern District of Calfornia denied a motion by Weiss's defense attorneys to move the case from Los Angeles to New York. Weiss previously announced his intention to vigorously fight the federal criminal charges of conspiracy, racketeering, obstruction of justice and making false statements under oath, arising out of his alleged payment of millions of dollars in illegal kickbacks to various individuals in return for their agreement to serve as plaintiffs in shareholder class action lawsuits. Federal prosecutors estimate that the scheme netted Weiss's law firm more than one-quarter of a billion dollars in attorney fees. Defense attorneys expressed confidence that Weiss would be acquitted, despite the fact that others indicted in connection with this scheme – including Weiss’s former partners David Bershad and Steven Schulman, and protégé William Lerach – have pleaded guilty.

The article, entitled “Weiss kickback trial to stay in L.A., judge says,” may be found in the Business Section of the December 21, 2007 edition of the Los Angeles Times.

Posted On: December 20, 2007 by Michael J. Hassen Email This Post

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Merrill Lynch Class Action Defense Cases—Federal Court Approves $15 Million Settlement Of Class Action Against Merrill Lynch

A class action against Merrill Lynch & Co. alleging that the company provided false research reports on Internet companies ended yesterday when a federal court gave final approval to a settlement of the class action. The class action settlement requires Merrill Lynch to pay $15 million; this is in addition to the $100 million Merrill Lynch agreed to pay to settle a separate action filed by the Attorney General of the State of New York. The class action complaint was filed after the New York A.G.’s investigation into Merrill Lynch became public in 2002.

Posted On: December 15, 2007 by Michael J. Hassen Email This Post

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Further Drop In Employment Class Action Lawsuits Among Weekly Class Actions Filed In California State And Federal Courts But Labor Law Class Action Cases Continue To Lead List Of New California Class Action Filings

To assist California class action defense attorneys predict the cases against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of December 7 – December 13, 2007, during which time only 39 new class action lawsuits were filed. We have repeatedly noted that labor law class action cases generally top this list, often by a wide margin. This past week saw yet another decline in the total number of employment-related class action lawsuit filings, but nonetheless more labor law class action lawsuits were filed than any other category. Specifically, only a dozen new class actions alleging employment law claims were filed this past week, representing 31% of the total number of new class action filings. Class actions alleging violations of federal securities laws came in second with 8 new filings (21%), followed by class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, and antitrust class actions, which tied for third with 6 new class action filings (representing 15% each of the total new class action cases). No other category passed the 10% threshold.

Posted On: December 12, 2007 by Michael J. Hassen Email This Post

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Sprint Nextel Class Action Defense Cases—State Court Approves $57.5 Million Class Action Settlement Resolving Class Action Arising Out Of Recombination Of Its Tracking Stocks In 2004

The Kansas City Star reports that a state court judge granted final approval today to a class action settlement that “resolves a class-action lawsuit against Sprint Nextel Corp. over the recombination of its tracking stocks in 2004.” Johnson County District Judge Kevin Moriarty gave final approval to the settlement, which requires Sprint Nextel pay $57.5 million. The court also awarded class action counsel about $18 million in attorney fees and costs, but ordered further that about $1.6 million of the attorney fees be withheld pending disbursement of the settlement proceeds to the class. The Star explains that the class action alleged “that Sprint management manipulated its FON wireline business at the expense of its PCS wireless venture and undervalued PCS shares when the stocks were recombined in April 2004.” More specifically, “Sprint divided its stock in 1998, with shares trading under the ‘FON’ ticker symbol reflecting its local and long-distance business, and shares trading under ‘PCS’ reflecting its wireless business. At the time, the wireless unit was in start-up mode and the wireline unit was the company’s big cash producer.” According to the class action allegations, “management artificially depressed the value of PCS by having FON lend it money at an unduly high rate, by failing to properly account for $700 million in tax credits when valuing PCS to determine the conversion ratio when the stocks were recombined, and by using defective or dated information when it calculated the ratio.” The class action covers more than 300,000 potential claimants.

Posted On: December 8, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Drop In Weekly List Of Class Actions Filed In California State And Federal Courts But Still Top Categories Of New Class Action Cases

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of November 30 – December 6, 2007, during which time 52 new class action lawsuits were filed. It is rare that labor law class action cases do not top this list, and this past week was no exception. During this past week, 19 new class actions alleging employment law claims were filed, representing 37% of the total number of new class action filings. Class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, came in second with 13 new filings (25% of the total). The only other category to meet the 10% threshold involved class actions alleging violations of federal securities laws with 6 new cases (12%).

Posted On: December 1, 2007 by Michael J. Hassen Email This Post

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Employment Law Class Action Lawsuits Continue To Dominate Categories Of Class Action Cases Filed In California State And Federal Courts

To aid class action defense attorneys anticipate the types of class actions against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of November 16 – November 29, 2007, during which time 92 new class action lawsuits were filed. New labor law class action cases routinely lead this lead, and that pattern continued. During the relevant time period, 38 new class actions alleging employment law claims were filed, representing 41% of the total number of new class action filings. Class actions alleging violations of California's unfair competition law (UCL), which include false advertising claims, came in a distant second, with 22 new filings (24% of the total). The only two other categories to crack the 10% threshold involved class actions alleging violations of securities laws and antitrust laws, with 10 and 9 new cases (11% and 10%), respectively.

Posted On: November 27, 2007 by Michael J. Hassen Email This Post

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JDSU Class Action Defense Attorneys Secure Jury Verdict In Federal Securities Class Action Lawsuit

Class Action Defense Attorneys Obtain California Federal Court Jury Verdict in Favor of JDSU in Securities Fraud Case

News media report today that JDSU obtained a jury verdict in the securities class action filed in the United States District Court for the Northern District of California. While JDSU welcomed the verdict, the company continues to defend itself against other securities class action lawsuits.

Posted On: November 22, 2007 by Michael J. Hassen Email This Post

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HAPPY THANKSGIVING FROM THE CLASS ACTION DEFENSE BLOG

The author of the Class Action Defense Blog wishes all of you a very Happy Thanksgiving, and urges class action defense counsel to take the day off! A new class action article will be published tomorrow.

Posted On: November 17, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuits Filings Decrease But Employment Claims Continue To Lead Categories Of Class Action Cases Filed In California State And Federal Courts This Past Week

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of November 9 – November 15, 2007, during which time 46 new class action lawsuits were filed in these courts. As a general rule, more labor law class action lawsuits are filed than any other category of cases, often by a wide margin. This again proved to be true, with 15 new class actions alleging employment law claims -- only 33% of the total number of new class action filings this past week, but substantially more than the second closest group of cases. Antitrust class action lawsuits came in second with 7 new lawsuits (only 15% of the total number of new class actions filed), followed closely by unfair competition law (UCL) claims (which include false advertising claims) with 6 new filings (13%) and 5 new securities fraud class actions (11% of the new filings).

Posted On: November 10, 2007 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Labor Law Violations Retain Top Spot Among Class Action Cases Filed This Past Week In California State And Federal Courts

To assist class action defense attorneys anticipate the cases against which they may have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the preceding week. This report covers the time period of November 2 – November 8, 2007, during which time 42 new class action lawsuits were filed. Consistent with the general pattern, more employment law class action lawsuits were filed than any other category. Specifically, 19 new labor law class actions were filed during the past week, representing 45% of the total number of new class action filings. The only other category that satisfied the 10% threshold consisted of unfair competition law (UCL) claims, which include false advertising claims. Seven (7) new UCL class actions were filed, representing 17% of the new filings.

Posted On: November 3, 2007 by Michael J. Hassen Email This Post

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False Advertising Lawsuit Against Sears, Roebuck Granted Class Action Status by District of Columbia Federal Court

District of Columbia Federal Court Grants Class Action Certification in Class Action Alleging Sears Misrepresented that its Kenmore-Brand Clothes Dryers had Stainless Steel Drums

Bloomberg News reports today that District of Columbia District Court Judge Harry Leinenweber has granted plaintiff’s motion for class action treatment in a lawsuit against Sears, Roebuck. The class action complaint alleges that Sears falsely advertised that its Kenmore clothes dryers were made with stainless steel drums. Bloomberg quotes the federal court’s order as stating, “The case comes down to whether or not Sears improperly represented that the dryer drum was stainless steel when it was a combination of stainless steel and corrodible mild steel.” The district court certified a class action covering purchasers in 28 states and the District of Columbia.

Posted On: November 3, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Decline But New Employment Law Class Actions Still Hold Top Spot Among New Class Action Lawsuits Filed In California State And Federal Courts This Past Week

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. During the time period covered by this report (October 26 – November 1, 2007), there were 45 new class action lawsuits filed in these California state and federal courts, and once again new labor law class action lawsuits easily headed the list with 17 new class action complaints alleging employment law claims, or 38% of the new class action filings for the week. Only two other categories managed to break the 10% threshold for this weekly class action report; there were eight (8) new unfair competition law claims, which include false advertising claims (18%), and there were five (5) new securities fraud class action lawsuits (11%).

Posted On: October 31, 2007 by Michael J. Hassen Email This Post

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Securities Class Action Plaintiff Lawyer William Lerach Admits Conspiring To Obstruct Justice And Enters Guilty Plea In Federal Court

Molly Selvin of the Los Angeles Times reported yesterday that securities class action plaintiff lawyer William Lerach has pleaded guilty “to a criminal charge that could send him to prison for up to two years,” but only if the federal court agrees to the terms of his plea bargain, which includes a provision insulating his San Diego class action law firm from criminal prosecution. While he was not named in the federal indictment handed down last year against plaintiff class action law firm Milberg Weiss and two of its then-named partners, Steven Schulman and David Bershad, Ms. Selvin reports that Lerach “is widely believed to be one of the unnamed partners referred to frequently throughout the 20-count indictment.” In addition to the possibility of a two-year prison term, Lerach is to pay an $8 million fine.

Ms. Selvin’s article, entitled “Lawyer enters plea of guilty: William Lerach pleads in a scheme to bribe plaintiffs in class-action suits for shareholders,” may be found in the Business Section of the October 30, 2007 edition of the Los Angeles Times.

Posted On: October 31, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION CONFERENCE ON CLASS ACTION FAIRNESS ACT OF 2005 (CAFA) COMING TO PHILADELPHIA

The University of Pennsylvania Law Review 2007-2008 Symposium will be held on November 30 and December 1, 2007, and will focus on the Class Action Fairness Act of 2005 (CAFA). The Symposium promises to address six different perspectives of the Class Action Fairness Act: "history, jurisdictional policy, federalism, regulatory policy, impact on the federal courts, and impact on the legal profession." The conference will be held at the University of Pennsylvania Law School. Further details of the conference, its location and its topics may be found here.

Posted On: October 30, 2007 by Michael J. Hassen Email This Post

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Plaintiff Class Action Lawyer William Lerach Pleads Guilty To Federal Conspiracy Charge As Fallout From Criminal Indictment Against Class Action Law Firm Milberg Weiss Continues

Michael Parrish of the New York Times reports that class action plaintiff lawyer William Lerach has pleaded guilty to conspiracy to obstruct justice “for concealing his secret, illegal payments to Dr. Steven G. Cooperman, who was a plaintiff in the class-action lawsuits for which [the Milberg Weiss law firm] became famous.” Dr. Cooperman previously admitted to “participating in the scheme.” This represents but the latest in a series of guilty pleas obtained by the federal government following the criminal indictment of the plaintiff class action law firm Milberg Weiss, two of its named partners and others. Mr. Parrish reports that criminal charges are still pending against the law firm itself, Melvyn Weiss, and an attorney out of Palm Springs, Paul Selzer, “who is accused of being an intermediary, laundering money between the firm and the on-call plaintiffs.”

Mr. Parrish’s article, entitled “Leading Class-Action Lawyer Pleads Guilty to Conspiracy,” may be found in Section C of the October 30, 2007 edition of the New York Times.

Posted On: October 27, 2007 by Michael J. Hassen Email This Post

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Class Action Against Sprint Settled with Defense Agreement to Unlock Cell Phones of Departing Customers

Tentative Class Action Settlement Requires Sprint to Unlock Phones so they can be Utilized with Competitors’ Services and May Impact Similar Industry Class Action Lawsuits

The New York Times reports today that Sprint’s defense team has negotiated a tentative class action settlement of a California class action challenging the company’s practice of “locking” its phones so that they cannot be used on competing networks. According to Katie Hafner’s article, the class action challenged Sprint’s practice of “locking” its phones so that it could not operate with other networks. The terms of the class action settlement, awaiting final approval by a California state court, would require Sprint “to provide departing customers with the code necessary to unlock their phones’ software to the handsets they own can be used on competitors’ networks.” However, “The codes will not work on Nextel-branded phones made by Motorola that use another network protocol, called iDen. Nor will the cods enable customers to switch to AT&T or T-Mobile, as those carriers use network technology known as global system for mobile communication, or GSM.” Nonetheless, the article speculates that the settlement may impact similar class action lawsuits, such as those challenging the Apple iPhone.

Ms. Hafner’s article, entitled “Sprint Nextel Settles Lawsuit Over Switching to New Carriers,” may be found in Section C of the October 27, 2007 edition of the New York Times.

Posted On: October 27, 2007 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Again Predominate New Class Actions Filed In California State And Federal Courts

To assist class action defense attorneys anticipate the types of cases against which they may have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 19 – October 25, 2007, during which time 48 new class action lawsuits were filed in these California state and federal courts. Generally, more labor law class action lawsuits are filed than any other category of cases, and this past week was no exception with the filing of 25 new class actions alleging employment law claims (52% of the new class action filings for the week). Only one other category managed to break the 10% threshold for this weekly class action report; there were ten (10) new antitrust class action lawsuits filed (21%).

Posted On: October 20, 2007 by Michael J. Hassen Email This Post

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DuPont Loses Class Action Lawsuit In West Virginia As Jury Awards $250 Million In Nuisance Class Action Case Alleging Deliberate Dumping Of Heavy Metals

In a state notoriously difficult for individual and class action defendants alike, the Associated Press reports today that a jury awarded $196.2 million in punitive damages against DuPont in a class action that charged the company with “deliberately dumping dangerous heavy metals on an industrial site” resulting in property damage and health concerns of neighboring properties. This award was on top of the $55.5 million awarded in the class action to “clean up private properties.” DuPont was also ordered to provide medical monitories to people exposed to the chemicals, with that monitoring obligation to last 40 years. DuPont promises to appeal the decision.

The AP article, entitled “DuPont is Ordered to Pay $196.2 Million in Dumping Case,” may be found on The Wall Street Journal Online, posted on October 19, 2007.

Posted On: October 20, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Lawsuit Retain Firm Grip On Top Spot Of Weekly Class Actions Filed In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 12 – October 18, 2007, during which time 50 new class action lawsuits were filed in these California state and federal courts. Labor law class action cases routinely lead the list by a wide margin, and this proved true yet again. During the past week, 23 new class actions were filed alleging employment law claims, representing 46% of the new class action filings for the week. Only two other categories managed to break the 10% threshold for this weekly class action report: eight (8) involved new unfair competition law (UCL) class action filings, which include false advertising claims (16% of the total number of new class actions), and five (5) involved securities fraud class actions (10%).

Posted On: October 13, 2007 by Michael J. Hassen Email This Post

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Plaintiff Class Action Lawyer Melvyn Weiss Released On $1.5 Million Bond

Following Guilty Pleas of Former Partners, Weiss Vows to Fight Criminal Charges

Noted class action plaintiff lawyer Melvyn Weiss, co-founder of the Milberg Weiss securities fraud class action firm, has been released after depositing $1,000,000 in cash with the court, posting a $500,000 bond and surrendering his passport, Michael Parrish of the New York Times reports today. According to Parrish’s report, Weiss intends to fight the federal criminal charges of conspiracy, racketeering, obstruction of justice and making false statements under oath arising out of his alleged payment of millions of dollars in illegal kickbacks to various individuals in return for their agreement to serve as plaintiffs in shareholder class action lawsuits. We have previously reported that others indicted in connection with this scheme – including Weiss’s former partners David Bershad and Steven Schulman, and protégé William Lerach – have pleaded guilty. Weiss is reportedly permitted to travel throughout California, Florida and Washington, but must report travel of more than three days to any other state within the continental U.S.

Mr. Parrish’s article, entitled “Bail Is Set For Lawyer Who Sued For Investors,” may be found in Section C. of the October 13, 2007 edition of the New York Times.

Posted On: October 13, 2007 by Michael J. Hassen Email This Post

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Weekly Class Action Lawsuit Filings Drop But Labor Law Class Action Cases Remain In Top Spot Of Class Actions Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from October 5 – October 11, 2007, during which time 29 new class action lawsuits were filed in these California state and federal courts. Last week, by contrast, more than 60 new class actions were filed in these courts. Generally, labor law class action cases lead the list by a wide margin, but the gap was necessarily narrower this past week in light of the smaller number of new class action lawsutis. During the time period at issue, 11 of the new class action filings involved labor law claims (38% of the total number of new class action cases), followed by seven (7) new antitrust class actions (24% of the total), mostly involving now-familiar claims against Korean Airlines. Two other categories of class actions managed to break the 10% threshold: four (4) involved new unfair competition law (UCL) class action filings, which include false advertising claims (14% of the total), and three (3) class actions alleging securities fraud (10%).

Posted On: October 10, 2007 by Michael J. Hassen Email This Post

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Plaintiff Class Action Lawyer Steven Schulman Of Milberg Weiss Pleads Guilty To Federal Racketeering Charge

Michael Parrish of the New York Times reports that class action plaintiff lawyer Steven Schulman, formerly a named-partner at the plaintiff class action law firm now known as Milberg Weiss, has pleaded guilty to a federal racketeering conspiracy charge. According to Parrish’s article, Schulman “admitted in federal court to being part of a scheme in which the firm, known for its class-action lawsuits against companies, gave secret kickbacks to individuals who remained on call to act as lead plaintiffs.” Schulman is reportedly cooperating with federal prosecutors, and “agreed to forfeit $1.85 million in profit, pay a $250,000 fine and accept a prison sentence.” While Schulman could be sentenced to upwards of 20 years, Parrish reports that the sentence is expected to fall within the range of 27-33 months.

Mr. Parrish’s article, entitled “Ex-Partner at Law Firm Pleads Guilty in Kickback Case,” may be found in the October 10, 2007 edition of the New York Times.

Posted On: October 9, 2007 by Michael J. Hassen Email This Post

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Court Approves $7 Million Class Action Settlement Ending 5-Year Class Action Against CP Rail Based On Train Derailment And Chemical Spill

The Associated Press reports that a North Dakota federal court has approved $7 million class action settlement, bringing to a close a 5-year-old class action against CP Rail arising from a January 2002 derailment and chemical spill that “sent a deadly cloud” into the air and killed a man. AP reports that more than 40% of the class action settlement proceeds will go to the plaintiffs’ lawyers, who will get $2.9 million. The three lead plaintiffs will reportedly receive $25,000 each, leaving the estimated 2000 absent class members of the class action to split the remainder (roughly $2000 per class member). Claims must be submitted by November 8, 2007. The class action settlement reportedly will not affect any individual lawsuits filed against CP Rail.

Posted On: October 7, 2007 by Michael J. Hassen Email This Post

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Merck Strategy Of Fighting For Individual Vioxx Lawsuits Rather Class Action Treatment Again Pays Off With Florida Jury Verdict In Favor Of Defense

The Wall Street Journal reports today that Merck has won another trial, bringing to 11 the number of verdicts in its favor against five (5) losses. The latest victory came at the hands of a Florida jury, reportedly the first Vioxx case to go to trial in that state. Thousands of individual and class action lawsuits were filed against Merck after it pulled Vioxx from the market in September 2004, and Merck has argued vigorously for the right to litigate each case on an individual rather than class action basis. In large part, Merck has been successful in defeating class action certification motions. The Journal reports that “Merck also claimed victory in two multibillion-dollar class-action lawsuits, on behalf of shareholders and private insurers seeking to recoup what they paid for Vioxx prescriptions.”

The article, entitled “Florida Circuit Court Rules In Merck’s Favor Over Vioxx,” may be found on page B7 of the October 7, 2007 edition of the Wall Street Journal.

Posted On: October 6, 2007 by Michael J. Hassen Email This Post

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CB Richard Ellis Group Class Action Defense Team Settles Sexual Harassment Class Action Lawsuit

The Los Angeles Times reports today that CB Richard Ellis Group has agreed to pay upwards of $150,000 per female employee under a class action settlement of a lawsuit alleging sexual harassment. According to the report, the class action complaint alleged that female employees were “subjected to lewd remarks, unwanted groping and sexual propositions by male co-workers,” as well as pornographic material “distributed via email and displayed on office computers.” CB Richard Ellis did not admit any of the class action allegations, but agreed to pay $3.4 million in attorney fees, donate $400,000 to a trade group to “promote the advancement of women in the [commercial real estate brokerage] industry,” and pay from $1,500 to $150,000 to female employees in accordance with a graduated proof plan. According to the Times, female employees can maintain anonymity and still recover $1500 if they prove to an arbitrator that they were subjected to sexual harassment or discrimination. A “second tier” permits female employees to recover up to $15,000 but they must disclose their identity to defense attorneys and CB Richard Ellis would be entitled to submit documents disputing each claim. Women who participate in the top tier may recover up to $150,000 but their claims “would be subject to full arbitration hearings with witnesses.”

Posted On: October 6, 2007 by Michael J. Hassen Email This Post

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Class Action Lawsuit Filings Surge But Labor Law Class Action Cases Retain Firm Grip On Top Spot In Weekly Class Action Lawsuits Filed In California State And Federal Courts

As a resources to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 28 – October 4, 2007, during which time 62 new class action lawsuits were filed in these California state and federal courts. Class actions asserting employment law violations generally lead the list, often by a wide margin, and this past week was no exception. During the time period at issue, 36 of the new class action filings involved labor law claims (58% of the total number of new class action cases). The only other category of class actions to break the 10% threshold involved new antitrust class action filings, which came in a distant second with 9 new class action cases (15%).

Posted On: October 4, 2007 by Michael J. Hassen Email This Post

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California Federal Court Grants Class Action Treatment to Lawsuit Challenging Accessibility of Target’s Website to the Blind

Class Action Certification Motion Granted by Federal Court in California Class Action Attacking Target’s Failure to Permit “Screen-Reading” Software to Work on its Website

Molly Selvin of the Los Angeles Times reports that U.S. District Court Judge Marilyn Hall Patel has granted plaintiffs’ class action certification motion in a California class action against Target challenging the accessibility of the company’s website to the blind. According to Ms. Selvin, the class action complaint alleges that Target’s website violates the federal Americans with Disabilities Act (ADA) as well as California state law because “screen-reading software doesn’t work on parts of its website, essentially making it unusable to blind people.” Plaintiffs sought class action treatment arguing that “Target hasn’t implemented ‘technologically simple and not economically prohibitive’ code into its site that would allow the software to vocalize all [of] the site’s content.” In agreeing that class action treatment was warranted, Judge Patel noted “that this is ‘an age when commerce is increasingly conducted on and through the Internet.’” Target promises to appeal the ruling.

Ms. Selvin’s article, entitled “Suit may spur greater Web access for blind,” may be found in the Business Section of the October 4, 2007 edition of the Los Angeles Times.

Posted On: October 4, 2007 by Michael J. Hassen Email This Post

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Class Action Certification Motion Granted In ADA (Americans With Disabilities Act) California Class Action Against Target Challenging Target Website’s Limited Ability To Utilize Screen-Reading Software Used By The Blind

Molly Selvin of the Los Angeles Times reports today that a California federal district court has granted class action status to a lawsuit against Target seeking website accessibility for the blind. The class action complaint alleges that Target has failed to upgrade its website by implementing “technologically simple and not economically prohibitive” code that would allow screen-reading software to vocalize content on the Target website. In certifying the class action, the federal court reportedly noted that this is “an age when commerce is increasingly conducted on and through the Internet.” Ms. Selvin reports that defense attorneys plan to seek appellate review of the district court’s order.

Ms. Selvin’s article, entitled “Suit may spur greater Web access for blind,” may be found in the Business Section of the October 4, 2007 edition of the Los Angeles Times.

Posted On: October 4, 2007 by Michael J. Hassen Email This Post

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Wal-Mart Reportedly Hit With Additional $62 Million Damage Award In Pennsylvania Labor Law Class Action Lawsuit

Following $78.5 Million Jury Verdict in Labor Law Class Action, Pennsylvania Court Awards an Additional $62.3 Million for Wal-Mart’s Withholding of Employee Pay for More than 30 Days

The Associated Press reports that a Pennsylvania court yesterday awarded an additional $62.3 million against Wal-Mart in a labor law class action. The class action resulted in a jury verdict of $78.5 million, but an additional 125,000 members of the class qualified for additional damages because Wal-Mart withheld their pay for more than 30 days. The court rejected the arguments made by Wal-Mart’s class action defense team, and awarded each class member an additional $500 in damages for violating Pennsylvania’s state employment laws. AP reports that this latest setback follows a $172 million damage award in a California class action, and a $50 million settlement of a Colorado class action. Wal-Mart’s defense team is preparing for trial in several other class action lawsuits as well, including Minnesota and New Jersey.

Posted On: September 29, 2007 by Michael J. Hassen Email This Post

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Michigan Court Certifies Class Action Against Carlton Farms Based On Odors Emanating From Landfill

Michigan State Court Concludes that Residents Living Near Landfill Satisfied Requirements for Certification of Class Action Against Landfill Owners

The Class Action Defense Blog has learned that a Michigan court certified a class action lawsuit brought by residents of Monroe and Wayne counties against Carleton Farms because it “consistently releases noxious odors and interferes with their [quiet] use and enjoy[ment] [of] their properties.” While the landfill has been in use for years, residents claim that the odor problem was exacerbated by the decision of Carleton Farms to accept municipal sewage sludge from Toronto. Interestingly, the Michigan Department of Environmental Quality reportedly has issued the necessary permits to Carleton Farms for an expansion of the landfill, despite complaints from local residents that this makes the problem even worse.

Posted On: September 29, 2007 by Michael J. Hassen Email This Post

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Michigan Court Certifies Class Action Against Carlton Farms Based On Odors Emanating From Landfill

Michigan State Court Concludes that Residents Living Near Landfill Satisfied Requirements for Certification of Class Action Against Landfill Owners

The Class Action Defense Blog has learned that a Michigan court certified a class action lawsuit brought by residents of Monroe and Wayne counties against Carleton Farms because it “consistently releases noxious odors and interferes with their [quiet] use and enjoy[ment] [of] their properties.” While the landfill has been in use for years, residents claim that the odor problem was exacerbated by the decision of Carleton Farms to accept municipal sewage sludge from Toronto. Interestingly, the Michigan Department of Environmental Quality reportedly has issued the necessary permits to Carleton Farms for an expansion of the landfill, despite complaints from local residents that this makes the problem even worse.

Posted On: September 29, 2007 by Michael J. Hassen Email This Post

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New Employment Class Action Lawsuits Again Outnumber Other Class Action Cases Among Weekly Class Action Lawsuits Filed In California State And Federal Courts

In order to assist class action defense attorneys anticipate the cases against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 21 – September 27, 2007, during which time 44 new class action lawsuits were filed in these California state and federal courts. Labor law class action cases generally lead the list by a wide margin, and this proved true yet again as 25 of the new class action filings (57% of the total number of new class actions) alleged employment claims. Class actions under California's unfair competition law, which includes false advertising claims, and new antitrust class action filings came in a distant second with 5 new class action cases each (11%). No other category cracked the 10% threshold.

Posted On: September 22, 2007 by Michael J. Hassen Email This Post

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Class Action Filings Rise But Labor Law Class Action Cases Continue To Lead List Among New Class Action Lawsuits In California State And Federal Courts

As a resource for California defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 14 – September 20, 2007, during which time 48 new class action lawsuits were filed in these California state and federal courts. As is generally the case, employment law class action cases once again led the list of class action filings with 15 new lawsuits, representing 31% of the total number of new class actions, but that percentage is down significantly from its lasgt week, when 62% of the total number of new class actions filed involved labor law claims. Class actions under California's unfair competition law, which includes false advertising claims, came in a distant second with 7 new filings (15%), followed by five (5) new antitrust class action filings (10%).

Posted On: September 21, 2007 by Michael J. Hassen Email This Post

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Class Action Plaintiff Lawyer Melvin Weiss Indicted Only Days After William Lerach Pleads Guilty To Criminal Conspiracy Charges

Molly Selvin of the Los Angeles Times reports today that class action plaintiff lawyer Melvin Weiss has been indicted “on charges that he participated in a kickback scheme that allegedly netted millions of dollars in illicit legal fees.” The federal indictment comes on the heels of a guilty plea by class action plaintiff lawyer William Lerach, who was once a partner at Milberg Weiss, to charges of criminal conspiracy. The recent indictment added to the criminal charges filed against the law firm of Milberg Weiss and two of its named partners, Steve Schulman and David Bershad, last year. The amended federal indictment also comes on the heels of Schulman’s guilty plea to federal racketeering and conspiracy charges, Ms. Selvin reports. According to the amended indictment, Milberg Weiss paid illegal kickbacks in 225 shareholder class action lawsuits (up from the 150 class actions alleged in the original indictment) and illegally earned $250 million in attorney fees (up from $200 million).

Ms. Selvin’s article, entitled “Law firm founder indicted: Melvyn Weiss is alleged to have participated in a scheme to make secret payment to plaintiffs in class-action cases,” may be found in the Business Section of the September 21, 2007 edition of the Los Angeles Times.

Posted On: September 21, 2007 by Michael J. Hassen Email This Post

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Wall Street Journal Reports On Federal Indictment Of Class Action Plaintiff Lawyer Melvyn Weiss On Illegal Kickback Charges

Nathan Koppel of the Wall Street Journal reports today on the long-anticipated criminal charges leveled against well known class action plaintiff lawyer Melvyn Weiss. The criminal charges are contained in an amendment to the federal indictment handed down last year against the plaintiff class action law firm of Milberg Weiss and two of its named partners, Steven Schulman and David Bershad. The criminal charges against Weiss comes just days after former Milberg Weiss attorney William Lerach, himself a well-known class action plaintiff lawyer, pleaded guilty to federal conspiracy charges, and to the guilty plea of Steve Schulman to federal racketeering and conspiracy charges.

Mr. Koppel’s article, entitled “In Role Reversal, Melvyn Weiss is Indicted: High-Profile Lawyer is Accused of Kickbacks to Class-action Clients,” may be found on page A11 of the September 21, 2007 edition of the wall Street Journal.

Posted On: September 19, 2007 by Michael J. Hassen Email This Post

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Wall Street Journal Reports On Criminal Conspiracy Guilty Plea By Class Action Plaintiff Lawyer William Lerach

Nathan Koppel of the Wall Street Journal reports today on the guilty plea by leading class action plaintiff lawyer William Lerach to criminal conspiracy charges arising out of illegal kickbacks to plaintiffs in class action shareholder lawsuits. The plea arises from the criminal indictment filed last year against the well known plaintiff class action law firm Milberg Weiss and two of its named partners, Steven Schulman and David Bershad. The guilty plea was announced just days after Lerach resigned from his law firm to reportedly focus on his defense against the as-then uncharged allegations of criminal wrongdoing.

Mr. Koppel’s article, entitled “Investigation of Milberg Lands a Pivotal Figure: Lerach Agrees to plea, Could Go to Prison; gains Forfeited to U.S.,” may be found on page B4 of the September 19, 2007 edition of the wall Street Journal.

Posted On: September 18, 2007 by Michael J. Hassen Email This Post

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State and City of New York File Lawsuit Against Merck Seeking Restitution of Medicaid and Prescription-Drug Payments Made for Vioxx

Heather Won Tesoriero of the Wall Street Journal reports today that the State of New York and New York City have filed a lawsuit against Merck seeking tens of millions of dollars for payments made from 1999 through 2004 on Vioxx through Medicaid and a prescription-drug assistance program for the elderly. According to the lawsuit, “Merck tried to distort each negative disclosure about Vioxx. Merck cherry-picked outcomes from its own research, omitting material information that would have communicated Vioxx’s real cardiovascular dangers.” The lawsuit comes on the heels of a significant victory for Merck’s class action defense team, as the New Jersey Supreme Court reversed an order certifying a Vioxx class action against Merck.

Ms. Tesoriero’s article, entitled “New York Sues Merck Over Vioxx,” may be found on page D7 of the September 18, 2007 edition of the Wall Street Journal.

Posted On: September 18, 2007 by Michael J. Hassen Email This Post

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Leading Class Action Plaintiff Lawyer William Lerach To Plead Guilty To Conspiracy In Illegal Kickback Scheme

Securities Fraud Class Action Plaintiff Lawyer William Lerach Reportedly Agrees to Plead Guilty to Conspiracy in Paying Kickbacks to Class Representative

On the heels of our report that William Lerach announced his resignation in order to focus his energies on defending himself against the as-then unannounced criminal charges leveled against him in the wake of the federal court indictment of Milberg Weiss and two of its named partners, Molly Selvin reports today that Lerach that agreed to plead guilty to one count of conspiracy. According to Ms. Selvin’s sources, Lerach faces up to two years in prison and “will pay a fine of several million dollars under the terms of the deal.” However, Lerach reportedly “refused to cooperate with the government in its case against Milberg Weiss.” Barry Meier of the New York Times reports that neither Lerach nor his defense attorney, John Keker, returned telephone calls, and that the U.S. Attorney’s Offices declined to comment on the purported guilty plea.

Molly Selvin’s article entitled, “Top class-action lawyer may plead guilty in kickbacks,” may be found in the Business Section of the September 18, 2007 edition of the Los Angeles Times.

Mr. Meier’s article entitled, “Guilty Plea Is Expected In Kickbacks At Law Firm,” may be found in Section C. of the September 18, 2007 edition of the New York Times.

Posted On: September 15, 2007 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Only Category To Break 10% Threshold Of New Class Action Filings In California State And Federal Courts

In order to assist class action defense attorneys anticipate the type of cases against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 7 – September 13, 2007, during which time 39 new class action lawsuits were filed in these California state and federal courts. Labor law class action cases generally lead the list by a wide margin, and this past week was no exception with almost 2 out of every 3 new class actions falling into this category. In fact, employment class action cases proved to be the only category of cases to meet the 10% threshold. New labor class action cases led the list with 24 new lawsuits, representing 62% of the total number of new class actions filed.

Posted On: September 10, 2007 by Michael J. Hassen Email This Post

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Kansas Federal Court Gives Final Approval to $57 Million Class Action Settlement In Labor Law Class Action Against Sprint Alleging Discriminatory Firing Of Employees Over Age 40

The Kansas City Business Journal reports that federal judge John Lungstrum has given final approval to a $57 million settlement of an employment discrimination class action against Sprint. The class action, filed in Kansas federal court, alleged that Sprint unlawfully fired nearly 1,700 employees because of their age. The Business Journal reports that the class action plaintiffs charged Sprint with using a computerized performance management system that unfairly singled out employees over 40 for termination. The settlement purportedly allocates approximately $20 million to class counsel.

Posted On: September 8, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Actions Continue To Lead List Of New Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 31 – September 6, 2007, during which time 44 new class action lawsuits were filed in these California state and federal courts. Employment law class action cases generally lead the list by a substantial margin, and this proved true once again. New labor class action cases led the list with 19 new lawsuits (6 of which involved claims under the Hotel Service Charge Reform Ordinance, representing 43% of the total number of new class actions filed. While there was a three-way tie for second place, no other category of class action filings came close. Six (6) new class action lawsuits, representing 14% of the new class action cases, were filed alleging violations of (a) California's unfair competition laws, which include false advertising claims, (b) federal securities laws, and (c) federal Truth in Lending Act (TILA).

Posted On: September 6, 2007 by Michael J. Hassen Email This Post

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Merrill Lynch Defense Team Settles Class Action Lawsuits For $133 Million

Chad Bray of the Wall Street Journal reports today that a federal court has given final approval to settlement of a class action against Merrill Lynch. The lawsuit alleged that Merrill Lynch and its former top technology-stock analyst, Henry Blodget, issued false or misleading research reports regarding Internet-based companies. The settlement reportedly covers 20 separate class action lawsuits filed against Merrill Lynch in federal court.

Mr. Bray’s article, entitled “Merrill Settlement is Approved,” may be found on page C7 of the September 6, 2007 edition of the Wall Street Journal.

Posted On: September 1, 2007 by Michael J. Hassen Email This Post

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Yet Again Employment Law Class Actions Lead List Of New Class Action Filings In California State And Federal Courts

To assist class action defense attorneys anticipate the claims against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 24 – August 30, 2007, during which time 38 new class action lawsuits were filed in these California state and federal courts. New labor law class action cases typically lead the list by a wide margin, and in that regard the new class action filings over the past week are not a surprise. New employment law class action cases again headed the list with 15 new lawsuits, representing 39% of the total number of new class actions filed. No other category came close. New class actions alleging violations of California's unfair competition laws, which include false advertising claims, came in second with 5 new class action complaints (13%), with new antitrust class action lawsuits right behind with 4 new filings (11%).

Posted On: August 31, 2007 by Michael J. Hassen Email This Post

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California Supreme Court Rejects Class Action Arbitration Waiver In Employment Contract

Divided California Supreme Court Holds Class Action Arbitration Clause would "Undermine the Vindication of the Employees’ Unwaivable Statutory Rights and would Pose a Serious Obstacle to the Enforcement of the State’s Overtime Laws"

Yesterday, in a 4-3 decision with far-reaching impacts on class action arbitration waivers in California, the Supreme Court essentially held that class action waivers are unenforceable under California law. While the majority opinion claims that it is not condemning all such waivers, the dissent cogently observes that -- for all intents and purposes -- it is the practical effect of the decision. Even more surprising, the Supreme Court held that an arbitration clause in an employment contract was procedurally unconscionable even though the employee had been given a 30-day right to opt out of the arbitration provision without any adverse impact if the employee opposed arbitration. This aspect of the opinion is crucial, because under California law a contract is not unconscionable unless it is both procedurally and substantively unconscionable. Accordingly, if (as the trial court and appellate court held) the 30-day right to opt out of the arbitration aspect of the dispute resolution program meant that the arbitration clause was not procedurally unconscionable, then the arbitration provision would be insulated from attack. The Supreme Court found "an element of procedural unconscionability notwithstanding the opt-out provision," and so it remanded the putative class action to the trial court for a determination of whether the arbitration clause was also substantively unconscionable.

We plan to post an article covering the Supreme Court opinion on Tuesday, September 4, following the Labor Day weekend, but a copy of the opinion may be downloaded here.

Posted On: August 29, 2007 by Michael J. Hassen Email This Post

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Class Action Plaintiff Lawyer William Lerach Retires From Practice To Focus On Potential Criminal Charges Connected With Indictment Of Milberg Weiss Law Firm

Noted Securities Class Action Lawyer Resigns From Law Firm Reportedly In Exchange For Government Agreement not to Indict Law Firm

Jenny Anderson of The New York Times reports that noted class action plaintiff lawyer William S. Lerach is leaving his law firm in order to focus on the criminal allegations connected with the federal indictment of Milberg Weiss Bershad & Schulman, where he once worked. We have previously reported on the criminal indictment of Milberg Weiss and two of its named partners, David Bershad and Steven Schulman, alleging illegal payments of more than $11 million to individuals who served as class representatives in class actions filed by Milberg Weiss. Bershad pleaded guilty to conspiracy last July, and has agreed to return almost $8 million and to cooperate with prosecutors.

While Lerach has not been indicted, he reportedly is leaving the practice of law “to focus his attention on fighting the allegations against him.” Rumors have been spreading for months that Lerach would be indicted charges that he, too, made such illegal payments. Ms. Anderson’s article quotes Lerach as stating that “These allegations have proven to be personally time-consuming, and I have decided to focus single-mindedly on putting the matter behind me once and for all.”

Ms. Anderson’s article, entitled “Lawyer Quits Firm to Focus on Inquiry,” may be found in Section C of the August 29, 2007 edition of the New York Times.

Posted On: August 28, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION CONFERENCE COMING TO LOS ANGELES

Law Seminars International is sponsoring a two-day seminar entitled, "Innovative Strategies for Litigating Class Action Suits." The conference will be held at the Millennium Biltmore Hotel in Los Angeles on November 12 and 13, 2007. The details of the conference, its location and its topics may be found here.

Posted On: August 25, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Actions Easily Retain Top Spot In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 17 – August 23, 2007. A total of 53 new class action lawsuits were filed in these California state and federal courts were filed during that time period. New class action cases alleging employment law violations frequently top the list by a wide margin, and this was certainly true this past week. Twenty-two (22) new labor law class actions were filed this past week, representing 42% of the total number of class actions filed. No other category came close, and indeed no other category satisfied the 10% threshold. We note, however, that two categories tied for second with only 5 new cases each -- antitrust class actions, and product liability class actions.

Posted On: August 18, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Complaints Regain Sole Possession Of Top Spot In Weekly Class Action Filings In California State And Federal Courts

To assist defense attorneys in California predict the type of cases against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 10 – August 16, 2007, during which time 46 new class action cases were initiated in these California state and federal courts. Generally, class action cases alleging employment law violations top the list, often by a wide margin, and this past week labor law class actions surged from the prior week. While only 9 new labor law class action had been filed for our last report, this past week 20 new class action complaints were filed alleging employment law claims, representing 43% of the total number of new class actions filed last week. New class actions alleging violations of California's unfair competition law (UCL) also saw an increase, with 13 new class action complaints filed (28%). The only other category to meet the 10% threshold involved class actions alleging securities law violations, with 5 new filings (11%).

Posted On: August 16, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION DEFENSE CONFERENCE COMING TO NEW YORK

The American Conference Institute is sponsoring a two-day seminar on "Defending Fraud Claims in Consumer Class Actions." The conference will be held in New York on October 15 and 16, 2007. The details of the conference, its location and its topics may be found here.

More information about the American Conference Institute may be found at its website: www.americanconference.com.

Posted On: August 15, 2007 by Michael J. Hassen Email This Post

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FedEx Settles Class Action – California Federal Court Gives Final Approval To Settlement Of Class Action Alleging Race Discrimination

FedEx reports that on August 14, 2007, Judge Susan Illston of the U.S. District Court for the Northern District of California gave final approval to a class action settlement in Satchell v. FedEx Express, a class action that alleged racial discrimination by the company. In part, the terms of the class action settlement require FedEx discontinue its use of a Basic Skills Test (BST), which the company believed necessary to “ensure that customer-facing employees possess the basic skills required for successful job performance”; the class action alleged that the BST acted as a barrier to minority advancement in the company. FedEx further reports that the class action settlement requires payment of roughly $55 million to 23,000 class members, from which will be deducted $15 million in attorney fees and costs.

The company’s summary may be found at news.van.fedex.com/node/3974.

Posted On: August 11, 2007 by Michael J. Hassen Email This Post

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Unfair Competition Law (UCL) Class Action Lawsuits Tie Labor Law Class Action Lawsuits In Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys,we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from August 3 – August 9, 2007. During that time period, 35 new class action cases were initiated in these California state and federal courts. Generally, class action cases alleging employment law violations top the list, often by a wide margin. This past week, however, there was a significant drop in the number of labor law class action filings. New class actions alleging violations of California's unfair competition law (UCL) tied new labor law class action lawsuits, with nine (9) new cases each (26%). No other category cracked the 10% threshold of new class action cases.

Posted On: August 7, 2007 by Michael J. Hassen Email This Post

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Plaintiff Class Action Law Firm Milberg Weiss Named As Defendant In Class Action Filed By Former Class Members

In a case of “boy bites dog,” plaintiff class-action law firm Milberg Weiss Bershad & Schulman was named August 2, 2007, as a defendant in a class action complaint filed in the United States District Court for the Southern District of New York by six individuals who were class members in class action lawsuits where Milberg Weiss served as lead class counsel. The putative class action also names the well known plaintiff class action law firm of Lerach Coughlin Stoia Geller Rudman & Robbins as a defendant. The five-count, 48-page class action complaint is premised and relies heavily on the allegations underlying the criminal indictment filed against Milberg Weiss and two former partners, David Bershad and Steven Schulman, that the law firm secretly paid millions of dollars to certain individuals to serve as named plaintiffs in numerous class action lawsuits. A copy of the class action complaint may be found here.

Posted On: August 4, 2007 by Michael J. Hassen Email This Post

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New Class Action Lawsuits Alleging Labor Law Violations Continue To Top Weekly Class Action Filings In California State And Federal Courts

In order to assist California class action defense attorneys anticipate the new class action claims against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 27 – August 2, 2007, during which time 40 new class action cases were initiated in these California state and federal courts. Yet again, new employment class action cases topped the list with 14 new cases, or 35% of the total number of new class action lawsuits filed during the week. Unfair competition law (UCL) class action cases, which include false advertising cases, came in second with 7 new class action lawsuits (18%), followed by 5 new class action alleging antitrust violations (13%).

Posted On: July 28, 2007 by Michael J. Hassen Email This Post

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New Labor Law Class Action Complaints Top Weekly Class Action Filings In California State And Federal Courts

As a resource to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 20 – July 26, 2007, during which time 41 new class action cases were initiated in these California state and federal courts. New labor law class action filings again topped the list with 18 new cases, or 44% of the total number of new class action lawsuits filed during the week. Unfair competition law (UCL) class action cases, which include false advertising cases, came in second with 7 new class action lawsuits (17%), followed by 4 new class action alleging securities laws violations (10%).

Posted On: July 25, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION DEFENSE CONFERENCE COMING TO PHOENIX

The American Conference Institute is sponsoring a two-day seminar on positioning the class action case for early success. The conference will be held in Phoenix on September 26 and 27, 2007. The details of the conference, its location and its topics may be found here.

More information about the American Conference Institute may be found at its website: www.americanconference.com.

Posted On: July 21, 2007 by Michael J. Hassen Email This Post

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Despite Large Drop In New Class Action Filings Labor Law Class Action Complaints Again Lead Weekly Class Action Filings

To aid class action defense attorneys anticipate the claims against which they will have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 13 – July 19, 2007, during which time 36 new class action cases were initiated in these California state and federal courts. New labor law class action filings dropped to thirteen (13) new cases, or 36% of the total number of new class action lawsuits filed during the week. Unfair competition law (UCL) class action cases, which include false advertising cases, came in second with 6 new class action lawsuits (17%), followed closely by 5 new ADA/public accommodation class action claims (14%) and 4 new class action alleging securities laws violations (11%).

Posted On: July 14, 2007 by Michael J. Hassen Email This Post

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Washington State Joins Growing List of Jurisdictions Invalidating Class Action Waivers

Enforcement of Class Action Waiver in Cingular’s Mandatory Arbitration Clause Reversed by Washington Supreme Court and Class Action Reinstated because Class Action Waiver was Unconscionable under the Circumstances

A Seattle newspaper reports that the Washington Supreme Court has held that Cingular Wireless cannot enforce a class action waiver as part of an apparently mandatory arbitration clause. As prior articles reveal, class action waivers are frequently part of company-drafted mandatory arbitration provisions. According to the newspaper, Justice Tom Chambers, writing for the Court, held that the class action waiver was “unconscionable” because “it effectively denies large numbers of consumers the protection of Washington’s Consumer Protection Act.” The decision springs from a trial court order that granted a defense motion to dismiss a class action complaint and to compel arbitration based on the class action waiver in a mandatory arbitration clause. In reversing, the Supreme Court opined that a class action “is often the only meaningful type of redress for small but widespread injuries” and concluded that customers were unlikely otherwise to pursue Cingular for the small amount at issue, either in small claims court or in arbitration. Accordingly, the Supreme Court invalidated the class action waiver and reversed the trial court order dismissing the class action complaint.

Posted On: July 14, 2007 by Michael J. Hassen Email This Post

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New Employment Law Class Action Cases Yet Again Lead List Of Class Actions Filed In California State And Federal Courts During Past Week

In an effort to assist California class action defense attorneys anticipate the claims against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from July 6 – July 12, 2007. During this past week, 45 new class action lawsuits were filed in these California state and federal courts, of which twenty (20) involved labor law class action claims, representing 44% of the total number of new class action lawsuits filed during the week. Unfair competition law (UCL) class action cases, which include false advertising cases, came in second with 9 new class action lawsuits (20%). The only other category of new class action cases to break the 10% threshold alleged securities laws violations, with 6 new class action filings (13%).

Posted On: July 7, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Again Account For 60% Of New Class Actions Filed In California State And Federal Courts

To assist California class action defense attorneys anticipate the claims against which they will have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 29 – July 5, 2007, during which time 37 new class action lawsuits were filed in these courts. We repeatedly note that employment-based class action lawsuits usually lead the list of new class action filings by a wide margin, but last week new labor law class actions outstripped all other categories of new class action filings by its widest margin since we began reporting these statistics. This week suggests that the "phenomenon" may prove to be a trend, because out of these 37 new class action lawsuits, 22 (60%) involve employment-related claims. Unfair competition law (UCL) class action cases, which include false advertising cases, came in a distant second with 5 new class action lawsuits (14%), followed closely by 4 new securities class action cases (11%).

Posted On: June 30, 2007 by Michael J. Hassen Email This Post

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More Than 60% Of New Class Action Cases Involve Employment-Related Claims In Weekly Class Action Filings In California State And Federal Courts

As a resource to defense attorneys who defend against class action claims in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 22 – June 28, 2007, and during that time 34 new class action lawsuits were filed in these courts. Labor law class action lawsuits usually lead the list of new class action filings, often by a wide margin, but never before, during the period for which we have been providing these statistics, by as wide a margin as this past week. Out of these 34 new class action lawsuits, 21 involved employment-related claims, representing almost 62% of the total number of new class actions for the relevant time period. Unfair competition law (UCL) class action cases, which include false advertising cases, represented the only other category of class actions to break the 10% threshold, with six (6) new class action filings (18%).

Posted On: June 23, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Regain Top Spot In New Class Action Filings In California State And Federal Courts

In order to assist California class action defense attorneys anticipate the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 15 – June 21, 2007, and during that time 36 new class action lawsuits were filed in these courts. Class actions alleging employment law claims typically lead the list of new filings, and this past week was no exception. In all, sixteen (16) new labor law class action cases were filed in these state and federal courts, representing approximately 44% of the total number of new class actions for the relevant time period. Unfair competition law (UCL) class action cases, which include false advertising cases, dropped from the first-place ranking it had last week to second, with 6 new class action filings (17%). The only other category to meet the 10% threshold involved new securities laws claims, with 4 new cases (11%).

Posted On: June 16, 2007 by Michael J. Hassen Email This Post

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Surge in Unfair Competition Law Class Action Cases Drop Labor Law Cases To Second Spot Among New Class Action Filings In California State And Federal Courts

To assist defense attorneys who defend class actions in California, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from June 8 – June 14, 2007, during which time 39 new class action cases were filed in these courts. Unfair competition law (UCL) class action cases, which include false advertising cases, seized the top spot of new weekly class action filings with 14 new cases, representing 36% of the class action cases filed during the week. Employment law claims ran a close second with 13 new class action filings (33%). No other category cracked the 10% threshold.

Posted On: June 9, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Reclaim Top Spot Among New Class Action Filings In California State And Federal Courts

As a resource to California defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This past week, 43 new class action cases were filed in these courts, and after a one-week break labor law class action lawsuits returned to its familiar spot atop the list of new weekly class action filings. This report covers the time period from June 1 – June 7, 2007, during which time 19 new employment-related class action cases (44%) were filed in the California state and federal courts listed above. Surprisingly, no other category cracked the 10% threshold.

Posted On: June 2, 2007 by Michael J. Hassen Email This Post

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Class Action ADA Claims Supplant Labor Law Class Action Cases In California Weekly Filings

California class action defense attorneys will face a substantial number of new class action claims based the latest court filings this past week. To allow the class action defense lawyer to anticipate claims against which she or he may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from May 25 – May 31, 2007, and while labor law class action cases have been logging an impressive streak of heading up the list of new class action filings, this past week ADA (Americans with Disabilities Act) class actions claimed the top spot. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 50 class action lawsuits were filed in these California state and federal courts during that time period, of which 17 (34%) new class action suits involve ADA claims. Employment law class action lawsuits came in a close second, with 16 new filings (32%). The third place category consists of six (6) new unfair business practice class action lawsuits, which include claims of false advertising.

Posted On: May 29, 2007 by Michael J. Hassen Email This Post

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Federal Court Order Certifying Securities Class Action Against Vivendi Revised And Officially Published

In a prior article, we reported that the United States District Court for the Southern District of New York had granted plaintiffs’ motion to certify a securities class action against French company Vivendi and two of its individual officers – that article may be found here. The court’s Revised Memorandum Opinion and Order may be found at In re Vivendi Universal, S.A. Sec. Litig., 242 F.R.D. 76 (S.D.N.Y. 2007). A copy of the district court’s revised opinion and order granting class action treatment is provided.

Download PDF file of In re Vivendi Universal

Posted On: May 26, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Continue Streak As Top Category Of New Class Action Filings In California State And Federal Courts

As a resource to California defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This past week, only 36 new class action cases were filed in these courts. True to the norm, more labor law class action lawsuits were filed than any other category in the weekly class action filings. This report covers the time period from May 18 – May 24, 2007, during which time 17 new employment-related class action cases (47%) were filed in the California state and federal courts listed above. Four securities fraud class action lawsuits were filed, accounting for 11% of the new class actions. No other category met the 10% threshold.

Posted On: May 19, 2007 by Michael J. Hassen Email This Post

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New Class Action Filings Drop But Labor Law Class Action Lawsuits Continue To Top Weekly Class Action Filings In California State And Federal Courts

In order to assist California defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This past week, only 30 new class action cases were filed in these courts. Predictably, more employment-related class action lawsuits were filed than any other category in the weekly class action filings. This report covers the time period from May 11 – May 17, 2007, during which time 11 new class action cases (37%) were filed in the California state and federal courts listed above. Seven securities fraud class action lawsuits were filed, accounting for 23% of the new class actions. The only other categories to break the 10% threshold were unfair business practices class action cases, which include false advertising claims, and fraud class action cases, each of which had 3 new cases filed (10%).

Posted On: May 12, 2007 by Michael J. Hassen Email This Post

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Class Action Lawsuits Alleging Employment-Related Claims Again Lead Weekly Class Action Filings In California State And Federal Courts As No Other Class Action Category Meets 10% Threshold

To assist California defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class action lawsuits filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Labor law class action cases generally top the list, with the “competition” often running a distant second. Yet again, employment-related class action cases topped the list of weekly class action filings. This report covers the time period from May 4 – May 10, 2007, during which time approximately 47 new class action cases were filed in the California state and federal courts listed above. Employment-related class actions accounted for 45% of these cases, with 21 new cases. No other class action category satisfied the 10% threshold for this list.

Posted On: May 5, 2007 by Michael J. Hassen Email This Post

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Labor Class Action Lawsuits Again Lead Weekly New Class Action Filings In California State And Federal Courts

In order to assist California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of April 27 – May 3, 2007. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 42 class action lawsuits were filed in these California state and federal courts during that time period, of which 20 involved employment law class action claims, which represents approximately 48% of the class actions filed during this time period. The only other category to break the 10% threshold consisted of alleged unfair business practice class actions, which include false advertising claims, with 7 new class action filings (17%).

Posted On: April 28, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Continue To Dominate New Class Action Cases Facing California Defense Attorneys

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of April 20 – April 26, 2007. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 51 class action lawsuits were filed in these California state and federal courts during that time period, of which 21 involved employment law class action claims, which represents approximately 41% of the class actions filed during this time period. The only other categories to break the 10% threshold consisted of alleged unfair business practice class actions, which include false advertising claims, with 10 new class action filings (20%), and class actions alleging violations of the federal Americans with Disabilities Act (ADA), with 8 new filings (16%).

Posted On: April 24, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS – CLASS ACTION DEFENSE CONFERENCE COMING TO SAN FRANCISCO

The American Conference Institute is sponsoring a two-day seminar entitled, "Defending Consumer Protection Class Actions." The conference will be held at the Fairmont Hotel in San Francisco on May 21 and 22, 2007. The conference promises to be well worthwhile.

More information about the American Conference Institute may be found at its website: www.americanconference.com.

Posted On: April 21, 2007 by Michael J. Hassen Email This Post

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Once Again Labor Law Class Action Lawsuits Lead Weekly Class Action Filings In California State And Federal Courts

To assist California class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Labor law class action cases generally top the list, and this past week was no exception. This report covers the time period from April 13 – April 19, 2007, during which time there were approximately 35 new class action lawsuits – a relatively low number of new class action filings by California standards. Of these new class actions, labor law class action cases accounted for 40%, with 14 new filings. Unfair competition law (UCL) class action claims, which include false advertising class action cases, were the only other category to meet the 10% threshold involved with 9 new cases (26%).

Posted On: April 15, 2007 by Michael J. Hassen Email This Post

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Class Action Defense News: New Jersey Federal Court Holds Securities Fraud Class Action Against Merck Time-Barred

On April 12, 2007, United States District Court Judge Stanley R. Chesler of the District of New Jersey dismissed a securities fraud clas action against Merck, agreeing with defense attorneys that the class action claims are time-barred. The ruling represents yet another victory in Merck’s defense against thousands of class action and individual complaints arising, directly or indirectly, out of its prescription drug Vioxx.

A summary of the district court’s ruling will be posted later in the week.

Posted On: April 14, 2007 by Michael J. Hassen Email This Post

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New Employment Law Class Action Lawsuits Continue To Dominate Weekly Class Action Filings In California State And Federal Courts

In order to assist California class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Labor law class action cases generally top the list, and this past week was no exception. This report covers the time period from April 5 – April 12, 2007, during which time approximately 42 class action lawsuits were filed in these California state and federal courts. New labor law class action filings accounted for 45% of these cases, with 19 new class action lawsuits. The only other category exceeding the 10% threshold involved unfair competition law (UCL) class action claims, which include false advertising class action cases, with 7 new cases (17%).

Posted On: April 7, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Lead Weekly California State And Federal Court Class Action Filings

To assist California defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Employment law class action cases generally top the list, and this proved true yet again. This report covers the time period from March 30 – April 5, 2007, during which time approximately 53 class action lawsuits were filed in these California state and federal courts. Labor law class action filings accounted for 36% of these cases, with 19 new class action lawsuits. Next came unfair competition law (UCL) claims, which include false advertising class action cases, with 8 new class actions (15%), and class actions under the federal Fair and Accurate Credit Transactions Act (FACTA), also with 8 new filings. The only additional category to break the 10% threshold involved 6 new antitrust class action cases (11%).

Posted On: March 31, 2007 by Michael J. Hassen Email This Post

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Class Action Lawsuits Involving Labor Law Claims Again Lead Weekly California State And Federal Court Class Action Filings

As a resource to California defense attorneys and to assist them in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Employment law class action cases generally top the list, and this past week was no exception. This report covers the time period from March 23 – March 29, 2007, during which time approximately 51 class action lawsuits were filed in these California state and federal courts. Labor law class action filings accounted for almost 40% of these cases, with 20 new lawsuits (39%). Next came unfair competition law (UCL) claims, which include false advertising class action cases, with 8 new class actions (16%). A group of categories just barely broke the 10% threshold, including 6 new products liability class actions (12%), and 5 new antitrust and 5 new debt collection practices class actions (10%).

Posted On: March 29, 2007 by Michael J. Hassen Email This Post

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Vioxx Class Action Defense Cases - Merck Defense Team Wins Vioxx Case In Madison County, Illinois Giving It Ten Victories Against Five Defeats

Defense Victory will aid Merck in Defeating Motions to Certify other Lawsuits as Class Actions in the 265 Pending Class Action Lawsuits Involving Vioxx

Bruce Japsen of the Chicago Tribune reported yesterday that a jury in plaintiff-friendly Madison County has ruled in favor of Merck in a Vioxx case, handing Merck its first win in the Midwest and 10th defense verdict overall. Japsen notes that Merck “has pledged to defend the Vioxx cases one by one, and has so far had only five defeats.” But the fight is far from over: Merck still faces 265 class action lawsuits in addition to 27,000 individual lawsuits. The risks are substantial: in one of its losses, the jury reportedly awarded the plaintiff more than $20 million.

The Madison County victory is important because it supports Merck’s argument that each case is different and so must be tried on a case by case basis. In the Madison County case, for example, the jury found that Vioxx was not the cause of the heart attack that killed a 5’2” tall, 280-pound 52-year-old woman, whose obesity, high blood pressure and diabetes, along with other health problems, likely contributed to her death. The deceased had used Vioxx for 20 months.

In prior articles, we have noted that Merck removed Vioxx from the market in 2004 because of increased risk of heart attacks and strokes.

Bruce Japsen’s article, entitled “10th win for Merck on Vioxx - Madison County jury gives drug giant 1st Midwest victory,” may be found in the Business Section of the March 28, 2007 edition of the Chicago Tribune.

Posted On: March 24, 2007 by Michael J. Hassen Email This Post

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Surge In Labor Law Class Action Lawsuits In Weekly California State And Federal Court Class Action Filings As Employment Class Action Cases Account For Nearly Half Of New Class Actions

To aid defense attorneys in anticipating the claims against which they may have to defend in California, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Employment law class action cases generally top the list, often by a wide margin, and during the past that was particularly true. This report covers the time period from March 16 – March 22, 2007, during which time approximately 59 class action lawsuits were filed in these California state and federal courts. Labor law class action filings accounted for nearly half, with 27 new lawsuits (46%). The only other categories of cases to break the 10% threshold involved unfair competition law (UCL) claims, which include false advertising class action cases, and securities law claims, each of which had 7 new class action filings (12%).

Posted On: March 17, 2007 by Michael J. Hassen Email This Post

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Employment Law Class Action Lawsuits Regain Top Spot In Weekly California State And Federal Court Class Action Filings

In order to assist California defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Typically, labor law class action cases lead the list of new filings by a wide margin, and this past week is no exception. This report covers the time period from March 9 – March 15, 2007. Approximately 45 class action lawsuits were filed in these California state and federal courts during that time period, 17 of which involve labor law claims (38%). Unfair competition law (UCL) claims, which include false advertising class action cases, came in second with 8 new filings (18%). The only other category of cases to break the 10% threshold involved antitrust class action lawsuits with 7 new filings (16%).

Posted On: March 11, 2007 by Michael J. Hassen Email This Post

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Antitrust Class Action Lawsuits Wrest Top Spot From Labor Law Class Action Cases In Weekly California State And Federal Court Class Action Filings

To assist California defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Generally, more employment law class action cases are filed than any other category of cases, often leading other class action filings by a wide margin. This week, however, antitrust class action cases seized the top spot, while new labor law class actions fell to second.

This report covers the time period from March 1 – March 8, 2007. Approximately 58 class action lawsuits were filed in these California state and federal courts during that time period, of which 17 (29%) involved federal antitrust claims. There were 14 new employment law class action filings (24%). Claims under the federal Fair Credit Reporting Act (FCRA) came in third with 9 new filings (16%), almost all of which involved claims under the Fair and Accurate Credit Transactions Act (FACTA). The only other category of cases to break the 10% threshold involved unfair competition claims, which include claims for false advertising, with 8 new filings (14%).

Posted On: March 10, 2007 by Michael J. Hassen Email This Post

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Defense Attorneys Successfully Stave Off Labor Law Class Action Against Wal-Mart Alleging Failure To Provide Employees Breaks And Pay Overtime In Illinois State Court Case

Trial Court Denies Class Action Certification Motion In Illinois State Court Employment Law Class Action Case Holding that Plaintiffs’ Attorneys Failed to Provide a “Reasonable and Accurate Method of Calculating Damages on a Classwide Basis”

Only a month after the Ninth Circuit upheld certification of a sex discrimination class action against Wal-Mart involving upwards of 2 million class members, see Dukes v. Wal-Mart, Inc., 474 F.3d 1214 (9th Cir. 2007), an Illinois state court has sided with Wal-Mart’s defense attorneys and refused to grant class action status in a labor law cases alleging failure to pay overtime and failing to provide employee breaks. The Chicago Tribune reports that Rock Island County Judge Mark VandeWiele issued a 34-page opinion last Friday, March 9, 2007, denying plaintiff’s motion for class certification. The article quotes the opinion as holding that the plaintiffs “filed to demonstrate the existence of a reasonable and accurate method of calculating damages on a classwide basis.” The ruling is significant for Wal-Mart, particularly in light of substantial adverse jury verdicts in similar cases. In October 2006, a Pennsylvania jury awarded almost $80 million in damages in a rest breaks/overtime class action against Wal-Mart, and in 2005, a California jury awarded more than $170 million in a meal breaks class action against the company.

The news article, entitled “Judge denies Illinois Wal-Mart workers’ class action,” may be found in the Business Section of the March 10, 2007 edition of the Chicago Tribune.

Posted On: March 3, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Filings Top New Class Action Cases Filed In California State And Federal Courts With Antitrust Class Action Lawsuits Coming In Second

To allow class action defense lawyers anticipate claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from February 23 – February 28, 2007, and employment law class action cases held their familiar grip on the top spot in weekly class action filings.

As in the past, we include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 39 class action lawsuits were filed in these California state and federal courts during that time period, of which 12 (31%) involved employment-related claims. New antitrust class action cases came in second with 9 new filings (23%). The only other categories to break the 10% threshold consisted of 5 new unfair competition claims (13%), and 4 new securities laws class action cases (10%)

Posted On: February 25, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Regain Top Spot In Weekly Class Action Filings In California State And Federal Courts With Public Accommodation/ADA And Antirust Class Action Lawsuits Close Behind

California defense attorneys will be confronted once again by a greater number of employment law class action cases than any other category, though public accommodation/ADA (Americans with Disabilities Act) and antitrust class action lawsuits came close to keeping law labor class actions out of the top spot for a second consecutive week. In an effort to assist the class action defense lawyer in anticipating the claims against which she or he may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe.

This report covers the time period from February 16 – February 22, 2007. Approximately 49 class action lawsuits were filed in these California state and federal courts during that time period. Employment law class action filings typically lead the list of new weekly lawsuits, often by a wide margin. This past week labor law class action cases regained the top spot with 12 new filings (24%). Public accommodation/ADA claims came in second with 9 new lawsuits (18%), with new antitrust class action lawsuits right behind at 8 new cases (16%). The only other category to break the 10% threshold involved federal securities laws class action claims, with 6 new actions (12%).

Posted On: February 17, 2007 by Michael J. Hassen Email This Post

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Public Accommodation/ADA Class Action Lawsuits And Federal Fair And Accurate Credit Reporting Act (FACTA) Class Action Cases Share Top Spot In Weekly Class Action Filings In California State And Federal Courts As Labor Law Class Actions Drop Dramatically

Defense attorneys in California are facing another wave of public accommodation/ADA (Americans with Disabilities Act) class action cases, together with a surprising number of class action lawsuits alleging violations of the federal Fair and Accurate Credit Reporting Act (FACTA). The surge in class action cases falling within these two categories this past week coincide with a dramatic drop in employment law class action claims.

In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Employment law cases routinely lead the list and usually do so by a wide margin, but this past week they fell below the 10% threshold. Instead, class actions alleging public accommodation/ADA claims and FACTA claims easily claimed the top spot.

This report covers the time period from February 9 – February 15, 2007. Approximately 77 class action lawsuits were filed in these California state and federal courts during that time period, of which 21 (27%) involved public accommodation/ADA class action lawsuits, and an equal number involved Fair And Accurate Credit Transactions Act cases. Antitrust class action filings came in a distant third with 9 new cases (12%). The only other category of cases to break the 10% threshold involved securities fraud class actions, with 8 new filings (10%).

Posted On: February 11, 2007 by Michael J. Hassen Email This Post

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Employment Class Action Filings Again Top List But Federal Fair And Accurate Credit Reporting Act (FACTA) Class Action Cases Again Run Second In Weekly Class Action Filings In California State And Federal Courts

As is generally the case, class action defense attorneys in California will confront more labor law class action cases than any other category, but the number of class action lawsuits alleging violations of the federal Fair and Accurate Credit Reporting Act (FACTA) continue to surge. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law class action cases routinely lead the list by a wide margin, but recently a wave of class actions alleging violations of FACTA have been filed. This report covers the time period from February 2 – February 8, 2007. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 50 class action lawsuits were filed in these California state and federal courts during that time period, of which 18 (36%) involved employment-related claims. New FACTA class action lawsuits came in second with 12 new filings (24%). The third place category consists of 9 new antitrust claims (18%).

Posted On: February 5, 2007 by Michael J. Hassen Email This Post

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San Francisco's Paid Sick Leave Ordinance To Take Effect On February 5, 2007

On February 5, 2007, San Francisco's sweeping Paid Sick Leave Ordinance ("PSL") will take effect. The PSL Ordinance (Chapter 12W) was approved by 60% of San Francisco voters in the November election. San Francisco employers who do not comply with the PSL Ordinance will face stiff penalties and possible civil lawsuits with attorneys' fees recoverable.

All employers in San Francisco will be required to provide paid sick leave to all full-time, part-time and even temporary employees who work in San Francisco. Under the PSL Ordinance, employees accrue one hour of paid sick leave for every 30 hours worked (about 9 days per year for a full-time, non-exempt employee). Those employed as of February 5, 2007 will begin accruing paid sick leave as of that date. Those employed after February 5, 2007 will begin accruing paid sick leave 90 days into their employment. Employers may cap maximum accruals at 40 hours if they employ fewer than 10 employees and at 72 hours if they employ 10 or more employees. Unlike vacation benefits, paid sick leave does not need to be paid out when employees leave their employers.

Beginning February 5, 2007, employers must post the City's official notice of the PSL Ordinance in a conspicuous location in English, Spanish, Chinese and any other languages spoken by at least 5% of an employer's workforce in San Francisco. Under the PSL Ordinance, paid sick leave may be used to care for family members ("kin care"), which is more broadly defined than California's Labor Code and includes relatives such as siblings and grandparents. In addition, employees who do not have a spouse or registered domestic partner may once a year designate a person for whom the employee may use paid sick leave. Further, unlike current California law, an employee may use the entire amount of their sick leave for kin care.

Continue reading "San Francisco's Paid Sick Leave Ordinance To Take Effect On February 5, 2007" »

Posted On: February 2, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Hold Top Spot In Weekly Class Action Filings In California State And Federal Courts With Public Accommodation/ADA Class Action Claims A Distant Second

Yet again California class action defense attorneys will face more new employment class action claims than any other category. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list and usually do so by a wide margin. This past week was no exception. This report covers the time period from January 25 – January 31, 2007. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 39 class action lawsuits were filed in these California state and federal courts during that time period, of which 18 (46%) involved labor law claims. The only other category of cases to meet the 10% threshold was public accommodation/ADA class action lawsuits with 5 new cases (13%).

Posted On: January 26, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Lawsuits Again Hold Top Spot In Weekly Class Action Filings In California State And Federal Courts But Class Actions Alleging Violations Of Federal Fair And Accurate Credit Transactions Act Come In A Close Second

Defense attorneys in California faced the familiar wave of employment law class action cases last week, but FACTA (Fair and Accurate Credit Transaction Act) cases ran a close second. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list and usually do so by a wide margin, but this past week class action lawsuits alleging FACTA violations gave labor law class actions a run for their money. This report covers the time period from January 19 – January 25, 2007. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 52 class action lawsuits were filed in these California state and federal courts during that time period, 13 of which (25%) involved employment law claims. The area of law with the second most class action filings during that time period involved Fair Credit Reporting Act/Fair And Accurate Credit Transactions Act cases with 12 new filings (23%). Public accommodation/ADA class action lawsuits came in third with 9 new filings (17%). In a surprisingly balanced week for California class action filings, two other groups of class action claims passed the 10% threshold. Six new price fixing/antitrust class actions were filed (12%), as well as 5 new unfair competition (UCL) class actions (10%).

Posted On: January 19, 2007 by Michael J. Hassen Email This Post

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Merck's Vioxx Defense Team Suffers Setback As New Jersey Appellate Court Holds Trial Court "Prematurely Terminated" Class Action Complaint

Peter Loftus of The Wall Street Journal reports today that a New Jersey state appellate court has reversed a lower court ruling dismissing a putative class action against Merck on behalf of people who used Vioxx for at least six (6) weeks but who have not evidenced any medical problems. While the opinion is a setback for the Vioxx defense team, it does not appear to be a "tremendous decision" as viewed by plaintiffs' counsel. The New Jersey appellate court appears to be based on the decision that the trial court dismissed the class action claims "prematurely"; it held only that plaintiffs were entitled to additional discovery in an effort to prove whether they have a valid claim. Merck is reportedly considering whether to seek review in the New Jersey Supreme Court. Alternatively, defense attorneys may decide to let the plaintiffs conduct additional discovery and then renew the motion in the trial court, as there appears to be no medical evidence proving that people who stopped taking Vioxx more than two years ago remain at risk today.

Peter Loftus' article, entitled "New Jersey Appeals Court Revives Proposed Vioxx Class-Action Suit," may be found on page C15 of the January 17, 2007 edition of The Wall Street Journal. A more complete analysis of the case may be found in a separate article posted on this site on January 18, 2007.

Posted On: January 19, 2007 by Michael J. Hassen Email This Post

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Labor Law Class Action Cases Again Claim Top Spot In New Class Action Cases Facing Defense Attorneys In California

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of from January 11 - January 18, 2007. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 37 class action lawsuits were filed in these California state and federal courts during that time period - excluding the four (4) antitrust class action cases involving transferred into California by the Judicial Panel on Multidistrict Litigation (MDL). Thirteen (13) of the weekly class action filings (35%) alleged employment law violations. Seven (7) of the new class action cases (19%) alleged unfair business practices or violations of California's unfair competition law (UCL). The only other category of cases to break the 10% threshold consisted of alleged violations of the federal Fair and Accurate Credit Transactions Act (FACTA); California class action defense attorneys will face 6 new cases involving that area of law, which represents approximately 16% of the class actions filed during this time period.

Posted On: January 16, 2007 by Michael J. Hassen Email This Post

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Merck's Vioxx Defense Team Suffers Setback As New Jersey Appellate Court Holds Trial Court "Prematurely Terminated" Class Action Complaint

A state appellate court has ruled that a lower court prematurely dismissed a putative class action against Merck on behalf of people who used Vioxx for at least six (6) weeks but who have not evidenced any medical problems. While the opinion is a setback for the Vioxx defense team, the New Jersey appellate court held only that plaintiffs were entitled to additional discovery in an effort to prove whether they have a valid claim. Merck is reportedly considering whether to seek review in the New Jersey Supreme Court. Alternatively, defense attorneys may decide to let the plaintiffs conduct additional discovery and then renew the motion in the trial court, as there appears to be no medical evidence proving that people who stopped taking Vioxx more than two years ago remain at risk today.

Posted On: January 14, 2007 by Michael J. Hassen Email This Post

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Defense Loses Labor Law Class Action Against Chinese Daily News As Federal Jury Awards Employees $2.5 Million In Damages

Molly Selvin of the Los Angeles Times reports that a jury sitting in Los Angeles federal court awarded $2,500,000 to current and former employees of the Chinese Daily News, the largest Chinese-language newspaper in the United States, for violations of state and federal labor laws. The jury reportedly found that the newspaper failed to pay its employees overtime, or to allow meal and rest periods. Ms. Selvin notes that the class action lawsuit is "part of a wave of litigation that has produced multimillion-dollar settlements and verdicts in recent years." These class action suits typically allege that the employer has misclassified employees "giving them professional or managerial-like job titles to avoid paying overtime."

Molly Selvin's article, entitled "Newspaper Staff Wins Labor Suit," may be found in the Business Section of the January 13, 2007 edition of the Los Angeles Times.

Posted On: January 14, 2007 by Michael J. Hassen Email This Post

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Defense Loses Labor Law Class Action Against Chinese Daily News As Federal Jury Awards Employees $2.5 Million In Damages

Molly Selvin of the Los Angeles Times reports that a jury sitting in Los Angeles federal court awarded $2,500,000 to current and former employees of the Chinese Daily News, the largest Chinese-language newspaper in the United States, for violations of state and federal labor laws. The jury reportedly found that the newspaper failed to pay its employees overtime, or to allow meal and rest periods. Ms. Selvin notes that the class action lawsuit is "part of a wave of litigation that has produced multimillion-dollar settlements and verdicts in recent years." These class action suits typically allege that the employer has misclassified employees "giving them professional or managerial-like job titles to avoid paying overtime."

Molly Selvin's article, entitled "Newspaper Staff Wins Labor Suit," may be found in the Business Section of the January 13, 2007 edition of the Los Angeles Times.

Posted On: January 13, 2007 by Michael J. Hassen Email This Post

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Employment Class Action Filings Again Top List But Surge In Federal Fair And Accurate Credit Reporting Act (FACTA) Class Action Cases Run A Close Second In Weekly Class Action Filings In California State And Federal Courts

Class action defense attorneys in California will again confront more labor law class action cases than any other category, but the number of class action lawsuits alleging violations of the federal Fair and Accurate Credit Reporting Act (FACTA) have surged. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law class action cases routinely lead the list and usually do so by a wide margin, but this past week class actions alleging violations of FACTA ran a close second. This report covers the time period from January 4 – January 11, 2007. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 59 class action lawsuits were filed in these California state and federal courts during that time period, of which 19 (32%) involved employment-related claims. New FACTA class action lawsuits came in second with 18 new filings (31%). The third place category consists of 9 new unfair competition claims (15%), most of which involved alleged price fixing/antitrust violations.

Posted On: January 12, 2007 by Michael J. Hassen Email This Post

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San Francisco Federal Court Certifies Class Action Against Costco In Lawsuit Alleging Gender Discrimination In The Promotion Of Female Employees

On January 11, 2007, federal district court judge Marilyn Hall Patel granted class action status to a lawsuit brought against Costco Wholesale on behalf of female employees. The lawsuit alleges that Costco discriminates against women in its promotion practices, and alleges that less than 16% of Costco's general managers are women. The class representatives include two women who worked for Costco more than 20 years, one becoming a warehouse receiving manager and one an assistant manager, and who claim they were passed over for promotion to general manager because of their gender. The lawsuit, Ellis v. Costco Wholesale Corp., N.D. Cal. Case No. C04-3341, was filed in 2004.

Posted On: January 10, 2007 by Michael J. Hassen Email This Post

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MARK YOUR CALENDARS - CLASS ACTION DEFENSE CONFERENCE COMING TO SAN FRANCISCO

The American Conference Institute is sponsoring a two-day seminar on defending consumer fraud litigation. The conference will be held in San Francisco on May 21 and 22, 2007, and several class action topics will be on the agenda. The details are still being finalized so information on the conference is not yet available at ACI's website. We will periodically post reminders and updates on the conference, as it promises to be well worthwhile.


More information about the American Conference Institute may be found at its website: www.americanconference.com.

Posted On: January 5, 2007 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Regain Top Spot In Weekly Class Actions Facing California Defense Attorneys

To aid California class action defense attorneys in anticipating claims against which they may have to defend, each week we provide an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of from December 28, 2006 - January 4, 2007. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 39 class action lawsuits were filed in these California state and federal courts during that time period - excluding the eleven (11) antitrust class action cases involving British Airways et al. transferred into California by the Judicial Panel on Multidistrict Litigation (MDL). Eleven (11) of the weekly class action filings (28%) alleged violations of state and/or federal labor laws. Class action cases alleging violations of California's unfair competition law (UCL) came in second with 6 new class actions (15%). The only other category of cases to break the 10% threshold consisted of alleged violations of the federal Fair and Accurate Credit Transactions Act (FACTA) - class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 13% of the class actions filed during this time period.

Posted On: January 1, 2007 by Michael J. Hassen Email This Post

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Public Accommodation/ADA Class Action Lawsuits Surge To Top Spot In Weekly Class Action Filings In California State And Federal Courts As Labor Law Class Action Claims Take Christmas Break

Defense attorneys in California will face a new wave of public accommodation/ADA (Americans with Disabilities Act) class action cases, as employment law class actions – the usual frontrunner in weekly filings – fall to a distant third. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list and usually do so by a wide margin, but this past week class actions alleging public accommodation/Americans with Disabilities Act (ADA) claims easily claimed the top spot. This report covers the time period from December 21 – December 27, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 69 class action lawsuits were filed in these California state and federal courts during that time period, of which 25 (36%) involved public accommodation/ADA class action lawsuits. The area of law with the second most class action filings during that time period involved Fair Credit Reporting Act/Fair And Accurate Credit Transactions Act cases with nine (9) new filings (13%). Employment-related class action claims fell to a distant third, with only eight (8) new lawsuits during that time period (12%).

Posted On: December 30, 2006 by Michael J. Hassen Email This Post

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DaimlerChrysler Settles Nationwide Class Action Over Allegedly Defective Brakes for $14.5 Million

DaimlerChrysler ushered in the new year by settling for $14.5 million a class action filed in New Jersey state court. The settlement of the nationwide class action reportedly won court approval on December 26, 2006, bringing to a close Lubitz v. DaimlerChrysler Corp. The class action settlement covers the more than one million people who bought or leased a Jeep Grand Cherokee between 1999 and 2004. The class action complaint alleged that the brakes on Jeep Grand Cherokees were defective, causing them to sustain uneven wear and occasionally fail. In approving the settlement, the court noted that plaintiffs' counsel would have had to overcome substantial obstacles if the case proceeded to trial, particularly with respect to damages as the cause of any problems associated with a vehicle's brakes may be attributable to the individual driving habits of the class members.


The terms of the settlement reportedly call for DaimlerChrysler to repair or replace the brakes on Jeep Grand Cherokees that were purchased or leased between 1999 and 2002, and to inspect the brakes on Jeep Grand Cherokees manufactured in 2003 and 2004. Plaintiffs' counsel requested almost $3 million in attorney fees, but the judge found the request excessive and awarded approximately $2.1 million. Even so, this worked out to a 50% lodestar factor based on hours actually worked.


Several news reports provide greater details on the settlement. One such report, entitled "N.J. Judge OKs $14.5M Settlement in Class Action Over Bad Jeep Brakes," by Mary P. Gallagher of the New Jersey Law Journal, may be found in a December 29, 2006 posting on Law.com.

Posted On: December 29, 2006 by Michael J. Hassen Email This Post

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TiVo Defense Attorneys Reach Tentative Settlement Agreement Of Class Action And California State Court Issues Orders Permitting Proposed Settlement To Move Forward

On December 5, 2006, a California state court provisionally certified a nationwide class action against TiVo for purposes of settlement in Nolz v. TiVo, Inc., San Francisco Superior Court Case No. CGC-05-447918. Members of the class action consist of all persons "who purchased or held a Gift Subscription for TiVo services," Order, at 2; the class action complaint alleged, in part, that TiVo sold gift subscriptions that contained expiration dates, in violation of California state law. The trial court gave preliminary approval to the proposed settlement, and set March 16, 2007, as the date for the Fairness Hearing.

Posted On: December 28, 2006 by Michael J. Hassen Email This Post

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California Court of Appeal Decision In Miller v. Bank of America - Handing Class Action Defense Attorneys -Becomes Final

California Court of Appeal Reports that Decision Reversing in Full Trial Court Judgment Against Bank in Class Action Case has Become Final


The California Court of Appeal for the First Appellate District reported on December 26, 2006 that its decision in Miller v. Bank of America, 144 Cal.App.4th 1301 (Cal.App. 2006), has become final. Miller reversed a billion dollar class action judgment against Bank of America, holding that banks may apply funds from government benefit deposits to cover overdraft fees connected with the same bank account. The Miller decision is summarized in a separate article, and the full text of the opinion may be downloaded from that article.

Posted On: December 22, 2006 by Michael J. Hassen Email This Post

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Class Action Antitrust/Unfair Competition Law (UCL) Claims Tie Labor Law Class Action Cases Confronting California Defense Attorneys In Weekly Filings

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of from December 15 - December 21, 2006. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 41 class action lawsuits were filed in these California state and federal courts during that time period - excluding the 16 antitrust class action cases involving British Airways et al. transferred into California by the Judicial Panel on Multidistrict Litigation (MDL), In re International Air Transp. Surcharge Antitrust Litigation, MDL-1793. Eleven (11) of the weekly class action filings (27%) alleged violations of California's unfair competition law (UCL), many based on antitrust price-fixing claims . An identical number (11) of employment law class action claims were filed. The only other category of cases class action defense attorneys will face that met the 10% threshold consisted of class actions alleging violations of the federal Fair and Accurate Credit Transactions Act (FACTA), with 4 new cases (10%) during this time period.

Posted On: December 18, 2006 by Michael J. Hassen Email This Post

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California Defense Attorneys Confront Spike In Class Action Antitrust/Unfair Competition Law (UCL) Claims As New Employment Law Class Action Cases Fall To Second Place In Weekly Filings

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of from December 8 - December 14, 2006. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 43 class action lawsuits were filed in these California state and federal courts during that time period - excluding the dozen antitrust class action cases involving British Airways et al. transferred into California by the Judicial Panel on Multidistrict Litigation (MDL). Sixteen (16) of the weekly class action filings (37%) alleged antitrust price-fixing claims, many of which were filed as violations of California's unfair competition law (UCL). Labor law class action claims, which typically lead the list of new filings, came in second during this time period with 9 new class actions (21%). The only other category of cases to break the 10% threshold consisted of alleged violations of California's Song-Beverly Consumer Protection Act: class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 12% of the class actions filed during this time period.

Posted On: December 17, 2006 by Michael J. Hassen Email This Post

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Alabama State Court Jury Finds For Defense As Merck Wins Another Vioxx Lawsuit

The New York Times reports that Merck's defense team has won another Vioxx case, this time in Alabama state court. The lawsuit, filed by a 57-yearold man, blamed Vioxx for a mild heart attack the man suffered. The defense argued that plaintiff was a high risk for a heart attack because he suffered from "diabetes, high blood pressure, high cholesterol and was overweight." Jurors attributed the defense victory to the fact that the plaintiff "had too many health problems before his heart attack to blame Vioxx." Merck still faces more than 27,000 individual lawsuits involving Vioxx, and hundreds of putative class action lawsuits.


The article, entitled "Merck Wins Suit In Alabama Over The Painkiller Vioxx," may be found in Section C. of the December 16, 2006, edition of the New York Times.

Posted On: December 16, 2006 by Michael J. Hassen Email This Post

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Farmers Insurance Agrees To Settle California Class Action

John O'Dell of the Los Angeles Times reports that Farmers Insurance has settled a class action lawsuit filed in Southern California that alleged the company required the use of substandard metal replacement parts to repair vehicles damaged in a crash. The settlement reportedly requires Farmers Insurance to pay class members between $20 and $40 for each substandard part used in a vehicle repair, together with $17 million in legal fees.


Mr. O'Dell's article, entitled "Farmers Insurance To Settle Suit Over Repairs," may be found in the Business section of the December 16, 2006, edition of the Los Angeles Times.

Posted On: December 14, 2006 by Michael J. Hassen Email This Post

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Sutter Health Defense Against California Class Action Challenging Pricing And Collection Practices For Uninsured Patients Ends With Settlement

On December 12, 2006, the Sacramento Superior Court gave final approval to a proposed class action settlement, bringing to a close the defense of a statewide class action against Sutter Health. The class action, reportedly covering hundreds of thousands of uninsured patients over a six-year period, alleged that Sutter Health and its affiliated California hospitals charged excessive prices to uninsured patients – allegations that the defense vehemently denied. Under the settlement, uninsured patients may be entitled to receive 25% to 45% discounts off of their Sutter Health-affiliated hospital bills. The complete terms of the settlement are wide-ranging, covering items such as future discount billing through modified debt collection practices.

Download PDF file of Sutter Health Settlement Agreement

Posted On: December 10, 2006 by Michael J. Hassen Email This Post

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Cigna Defense Against Shareholder Class Action Reportedly Will End With $93 Million Settlement

A proposed settlement has been reached in a class action lawsuit against Cigna Corp., filed in 2002 and scheduled to go to trial in March 2007 in the United States District Court in Philadelphia. The lawsuit arose from a computer problem that allegedly cost the company one-third of its customers as a result of major problems in the handling of insurance claims. Cigna allegedly hid the problems from investors, and the stock plunged when word of the computer problems hit the street. Defense attorneys and lawyers for the lead plaintiffs – Pennsylvania State Employees’ Retirement System, the Public Employees’ Retirement System of Mississippi, and the City of Miami General Employees’ and Sanitation Employees’ Retirement Trust – agreed to settle the case for payment of $93 million. The proposed class action settlement requires court approval, and a hearing date has been set for next April before United States District Judge Michael Baylson.

Posted On: December 10, 2006 by Michael J. Hassen Email This Post

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Indicted Class Action Plaintiff Law Firm Milberg Weiss Loses Named Partner Schulman To "New Ventures" And To Preparation Of Criminal Defense

After 20 Years of Class Action Securities Litigation at Milberg Weiss, Indicted Named Partner Steve Schulman Resigns to Focus on Defense of Criminal Charges


Julie Creswell of the New York Times reported yesterday that class action plaintiff law firm Milberg Weiss Bershad & Schulman suffered a devastating blow last Friday: Steven G. Schulman, indicted in May 2006 for his part in the alleged payment of $11 million to three individuals who served as plaintiffs in more than 150 lawsuits, resigned from the law firm after 20 years of class action securities litigation. Ms. Creswell reports that the firm name now shall be Milberg Weiss & Bershad. David J. Bershad also was indicted in May 2006. A January 2008 trial date has been set.


According to Ms. Creswell, Schulman will continue to represent class action plaintiffs but will be seeking out "new ventures." Schulman reportedly has for some time considered leaving the firm - he has been on a leave of absence since his indictment - and that he plans to "devote time to defending himself against criminal charges."


Julie Creswell's article, entitled "Partner at Law Firm Resigns to Focus on Criminal Charges Against Him," may be round in Section C. of the December 9, 2006, edition of the New York Times.

Posted On: December 9, 2006 by Michael J. Hassen Email This Post

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United States Supreme Court Grants Defense Petitions For Writs Of Certiorari In Antitrust Class Action And Sherman Act Cases

Supreme Court to Address Investment Bank and Institutional Investor Liability in Underwriting IPOs, and Per Se Rule that Resale Price Maintenance Violates Sherman Act


Linda Greenhouse of the New York Times reports that the United States Supreme Court had accepted defense petitions for writs of certiorari in "two important antitrust cases" and that the opinions should clarify areas of law "that have increasingly become unsettled." One of the antitrust cases, Credit Suisse First Boston v. Billing, is closely watched on Wall Street: the class action named more than a dozen banks and investors that participated in underwriting Internet company IPOs in the 1990s. The district court had dismissed the class action on the grounds that the SEC expressly permitted the conduct objected to in the complaint. The Second Circuit Court of Appeals, however, reinstated the class action.


The second class action, Leegin Creative Leather Products v. PSKS, directly challenges a 1911 case that held manufacturers may not require retailers to charge minimum prices for their products without violating the Sherman Act. As Ms. Greenhouse reports, "The case asks the justices to re-evaluate the precedent in light of modern economic theory, and instead to make these arrangements subject to case-by-case analysis under which is known as the rule of reason." In seeking review of the Fifth Circuit Leegin opinion, defense attorneys argued that "the per se rule against resale price maintenance squarely conflicts with this court's modern antitrust jurisprudence" and "[has] no foundation in economic theory."


Linda Greenhouse's article, entitled "Antitrust Policy Ambiguity To Be On Justices' Docket," may be found in Section C. of the December 8, 2006, edition of the New York Times.

Posted On: December 8, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Lawyers Again Confront More Labor Law Claims In California Weekly Class Action Filings But Significant Number Of Antitrust And Unfair Business Practice Class Action Lawsuits Also Filed

To allow class action defense lawyers anticipate claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from December 1 – December 7, 2006. Employment law class action cases yet again hold the top spot on the list. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 44 class action lawsuits were filed in these California state and federal courts during that time period, of which 16 involved labor law claims (36%). Antitrust class action filings came in a strong second, with 10 new lawsuits (23%). Class action lawsuits alleging unfair competition, including unfair business practices and false advertising claims, came in third with 9 new class action filings (20%).

Posted On: December 6, 2006 by Michael J. Hassen Email This Post

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Huge Class Action Defense Victory As Second Circuit Court Of Appeals Reverses Federal District Court Order Certifying Class Action Against Wall Street Banks In Largest Securities Class Action Ever

Julie Creswell of the New York Times reports today on the decision of the United States Court of Appeals for the Second Circuit reversing a district court order certifying a class action against hundreds of Wall Street banks. The 51-page decision concerned a district court order in In re Initial Public Offering Securities Litig., ___ F.3d ___ (2nd Cir. December 6, 2006), granting a motion to certify a class action in "six focus cases out of 310 consolidated class actions, which themselves were consolidations of thousands of separate class actions alleging securities law violations in connection with public offerings." Slip Opn., at 2. Ms. Creswell reports that the class action had been described as "the largest consolidated securities class-action ever" and that "[n]early all firms on Wall Street were touched by the lawsuit." The lawsuit alleged that during the late 1990s, Wall Street banks artificially inflated the share prices of IPOs, realizing huge profits. Ms. Creswell notes that J.P. Morgan Chase recently agreed to pay $425 million to settle the claims against it, and that a proposed settlement awaiting court approval "guaranteed the plaintiffs at least $1 billion in recovery from all of the defendants in the case." Such settlements are generally conditioned on class certification, at least for purposes of settlement, so yesterday's decision could affect that billion-dollar proposal, as well as the J.P. Morgan Chase settlement.


Julie Creswell's article, entitled "Court Rejects Class Action Against Banks," may be found in Section C. of the December 6, 2006 edition of the New York Times. The Second Circuit opinion will be summarized in a separate article.

Posted On: December 6, 2006 by Michael J. Hassen Email This Post

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New Class Action-Kraft Mounts Defense Against California Class Action Alleging Fraud Based On Sale Of Guacamole Containing Small Percentage Of Avocado

Class Action Alleges Product is "Fake Guacamole" Because it Contains Less than 2% Avocado


Exactly what is "guacamole"? That question lies at the center of a new class action lawsuit filed in California last week against Kraft Foods. The lawsuit alleges that Kraft defrauded customers by marketing a dip as "guacamole" when it contained less than 2% avocado. The author predicts an uphill battle for plaintiff's lawyer, however, in obtaining certification of the lawsuit as a class action. In many ways, the putative class action is similar to the action against tobacco manufacturers for the sale of "light" cigarettes - particularly with respect to the individual questions of fact that will exist, such as whether people buy Kraft guacamole because they liked the way it tastes, not because they believe it contains some undefined "higher" amount of avocado. In a significant difference, the label on Kraft's product apparently discloses the fact at issue in the lawsuit, whereas the labels on "light" cigarettes did not, thereby creating a substantial hurdle as to reliance. According to Los Angeles Times reporter Jerry Hirsch, plaintiff admits that she read the label after tasting the dip "and found there was almost no avocado"; she does not explain why she did not read the label before purchasing the product. Another significant difference is that the lawsuit was filed in state court, and the requirements for class action certification under California law differ from those set forth in Rule 23 of the Federal Rules of Civil Procedure.


Mr. Hirsch reports that plaintiff's lawyer intends to soon file similar class actions against other makers of guacamole. Mr. Hirsch also reports that Kraft states customers knew that the dip is "guacamole-flavored." Jerry Hirsch's article, entitled "Lawsuit stirs up guacamole labeling controversy," may be found in the Business Section of the November 30, 2006 Los Angeles Times.

Posted On: December 4, 2006 by Michael J. Hassen Email This Post

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Yet Again Labor Law Class Action Filings Again Top Weekly Class Action Filings List But Public Accommodation/ADA Class Action Lawsuits Run Close Second In California State And Federal Courts

As has been a pattern, class action defense attorneys in California will continue to confront more labor law class action cases than any other category. However, the class action filings have seen another spike in public accommodation/ADA (Americans with Disabilities Act) cases these past two weeks. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list by a wide margin, but class action cases alleging public accommodation/Americans with Disabilities Act (ADA) claims have, with increased frequency, come in at a close second and even occasionally in first.


In light of the Thanksgiving holiday and court holidays, this report covers the time period from November 17 – November 30, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 91 class action lawsuits were filed in these California state and federal courts during that time period, of which 36 (40%) involved employment-related claims. New public accommodation/ADA class action lawsuits came in second with 31 new filings (34%). The third place category consists of 12 new unfair competition claims, which include unfair business practices and false advertising claims (13%).

Posted On: December 4, 2006 by Michael J. Hassen Email This Post

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Class Action Defense News-Class Action Law Firm Lerach Ordered To Pay Defense Attorney Fees For Maintaining Frivolous Lawsuit

Judge Grants Defense Motion for Attorney Fees Against Plaintiffs' Law Firm Following Successful Defense of Class Action Lawsuit


Floyd Norris of the New York Times reports that federal district court judge Melinda Harmon awarded the defense in an Enron-related class action attorney fees against plaintiff class-action law firm Lerach, Coughlin, Stoia, Geller, Rudman & Robbins for maintaining class action claims against Alliance Capital, a money management firm, after it was apparent that the claims had no merit. The district court awarded the attorney fees under Section 11(e) of the Securities Act of 1933, despite acknowledging the existence of Second Circuit authority that Section 11(e) "was not intended to authorize an award against the parties' attorney." Mr. Norris summarizes the court's reasoning as placing financial responsibility for the sanctions on the class action attorneys because "non-attorney clients more likely than not would not have the ability to determine at what point, based on what evidence, an action becomes legally 'frivolous,' while its licensed counsel should be and is held to such a standard." Defense attorneys are quoted as stating that the court's ruling punishes class action plaintiff lawyers for continuing to pursue "what was clearly an innocent party." The amount of the fees have not yet been set, and Lerach promises to appeal the ruling.


Floyd Norris' article, entitled "In Unusual Ruling, Law Firm is Told to Pay Opponent's Legal Fees in Enron Case,” may be found in Section C. of the December 2, 2006 edition of the New York Times.

Posted On: December 1, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Issues--Fair and Accurate Credit Transactions Act

Class Action Defense Attorneys Urged to Advise Clients about FACTA Requirements

The Fair and Accurate Credit Transactions Act (FACTA), enacted by Congress to amend the Fair Credit Reporting Act, will become effective in only a matter of days. FACTA requires that credit card receipts provided to customers be modified so that the credit card number shown on the receipt is truncated and so that the expiration date is omitted. Defense attorneys and in-house counsel are encouraged to ensure compliance with FACTA; the author predicts class action lawsuits will be filed alleging FACTA violations within months of its effective date.

Posted On: November 29, 2006 by Michael J. Hassen Email This Post

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Federal Court Trial Date Of Class Action Law Firm Milberg Weiss Set

As previously reported, class action plaintiff law firm Milberg Weiss Bershad & Schulman LLP and two of the firm's top partners, David Bershad and Steven Schulman were indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs. Prosecutors allege that the class action firm paid people to serve as class representatives and recruited people to purchase stock in anticipation that share prices would fall, thereby positioning itself to play a lead role in any subsequent securities fraud class action lawsuits and, concomitantly, realize greater attorney fees. In today's New York Times, Cindy Chang provides additional details, reporting that "The law firm and the partners are accused of making $11.3 million in secret payments to entice people to serve as plaintiffs in more than 150 lawsuits. "


In July 2006, they entered pleas of not guilty in a California federal court. Ms. Chang reports that the trial date now has been set for January 2008, rejecting a request by prosecutors to set the trial for October 2007. While the late trial date permits defense attorneys additional time to prepare a defense for the class action firm, it also means another year of uncertainty for the firm. For example, Milberg Weiss' legal troubles have caused Illinois Cook County Circuit Judge Nancy Arnold to delay approval of a class action settlement involving Boeing until she completes a review of the testimony of the six plaintiffs in the case.


Cindy Chang's article, entitled "Trial of Class-Action Law Firm Is Set for 2008," may be found in Section C. of the November 28, 2006 edition of the New York Times.

Posted On: November 28, 2006 by Michael J. Hassen Email This Post

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Philip Morris Defense Team Solidifies Victory In Illinois Class Action Against Tobacco Giant

The New York Times reports on the decision of the United States Supreme Court to let stand the decision of the Illinois Supreme Court that reversed a $10 billion judgment against Philip Morris. The judgment against Philip Morris had been entered in a class action that alleged smokers "were misled about the health risks of 'light' cigarettes." The Illinois Supreme Court reversed the judgment, agreeing with defense attorneys that a statutory exemption for conduct authorized by a governmental regulatory agency applied because "the Federal Trade Commission had endorsed the 'light' and 'low tar' descriptions in settlements with other cigarette makers."


The article, entitled " Justices Let Stand a Decision to Void Big Award Against Philip Morris," may be found in Section C of the November 28, 2006 edition of the New York Times.

Posted On: November 26, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases-IBM Defense Attorneys Seeks Court Approval Of $65 Million Settlement In Federal Fair Labor Standards Act (FLSA) Overtime Class Action

The Los Angeles Times reports that IBM has reached a tentative agreement to pay $65 million in settlement of a class action lawsuit filed in California federal court that alleged it had improperly denied overtime pay to 32,000 workers. According to the article, "The case involved workers classified as 'technical services professional and information technology specialists.' IBM considered them professionals exempt from overtime laws detailed in the Fair Labor Standards Act and state labor laws." Plaintiff's lawyer argued that the employees at issue "were by no means the decision makers or creative types typically ineligible for overtime." IBM maintains that it seeks settlement of the lawsuit because litigation will be "lengthy, burdensome and expensive."


The article, entitled "IBM settles overtime class action," may be found in the Business Section of the November 23, 2006 Los Angeles Times.

Posted On: November 19, 2006 by Michael J. Hassen Email This Post

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Employment Class Action Filings Again Top List But Defense Attorneys Also Gear Up For New Public Accommodation/ADA Class Action Lawsuits Which Ran A Close Second In Weekly Class Action Filings In California

Class action defense attorneys in California will continue to confront more labor law class action cases than any other category, but public accommodation/ADA (Americans with Disabilities Act) cases made a strong showing this past week. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list and usually do so by a wide margin, but this past week class actions alleging public accommodation/Americans with Disabilities Act (ADA) claims ran a close second.


This report covers the time period from November 13 – November 16, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 44 class action lawsuits were filed in these California state and federal courts during that time period, of which 15 (34%) involved employment-related claims. New public accommodation/ADA class action lawsuits came in second with 11 new filings (25%). The third place category consists of 7 new unfair competition claims, which include unfair business practices and false advertising claims (16%).

Posted On: November 16, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Issues-Merck Defense Of Individual Federal Vioxx Action Improves Likelihood That Class Action Status Will Be Denied

Latest Defense Verdict Weighs Heavily Against Class Action Treatment of Vioxx Claims


The verdict is in on Merck's eleventh Vioxx trial, and a Louisiana federal jury agreed with defense attorneys that a Utah bank manager who suffered a heart attack after using Vioxx for almost a year had not established Vioxx caused his injury. Defense attorneys argued that the manager had used the drug for less than one year and had stopped using the drug four days before he suffered his heart attack. Importantly, the federal trial was before U.S. District Court Judge Eldon Fallon, who will ultimately rule on a pending motion to certify a Vioxx class action against Merck. Merck's defense attorneys wisely have argued that each case should be tried individually, and have pressed to have cases tried in advance of any class action determination. The outcome of those cases weighs heavily against class action treatment. The most recent verdict comes in Merck's fourth federal action - Merck's defense team is now ahead three to one in federal court. Judge Fallon has presided over all four federal trials. Merck has tried seven state court actions, winning three, losing three and facing a retrial in the remaining action.


The next federal trial against Merck is scheduled for November 27, 2006; Judge Fallon will again serve as presiding judge. The range of factual differences and the differing focus of the expert testimony across the federal cases may well persuade Judge Fallon that the lawsuits are not suitable for class action treatment.

Posted On: November 14, 2006 by Michael J. Hassen Email This Post

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More Fallout From Indictment Of Class Action Firm Milberg Weiss As Court Delays Approval Of Class Action Settlement Pending Review Of Class Action Plaintiffs' Testimony

Ameet Sachdev of the Chicago Tribune reports that Cook County Circuit Judge Nancy Arnold has delayed approval of a three-year-old stockholders class action against Boeing because of the federal court indictment handed down against lead plaintiffs' counsel Milberg Weiss Bershad & Schulman. After the settlement had been submitted for her approval, Judge Arnold required that the six named plaintiffs appear in court and testify as to how they became plaintiffs in the case, including when the became Boeing stockholders and the amount of stock that they owned. Sachdev explains that while there is nothing overtly improper about the plaintiffs' behavior, "the judge's suspicions were aroused this summer after one of the plaintiffs' law firms, Milberg Weiss Bershad & Schulman, was indicted on federal charges of paying kickbacks to people to serve as plaintiffs in class-action lawsuits, just weeks before a settlement was proposed in the Boeing case." While the firm and its indicted named partners, Bershad and Schulman, have denied any wrongdoing, one of its clients has pleaded guilty to receiving $2.4 million in kickbacks. Judge Arnold may reject the settlement if she concludes that such misconduct occurred in this case.


Sachdev reports that this is but one more blow to the once-powerful class action plaintiffs law firm. "The fallout from the indictment is being felt in courtrooms around the U.S. In Minnesota, a federal judge removed Milberg Weiss from a leadership role in cases accusing Medtronic Inc. of selling faulty heart devices. [¶] In New York, the state's comptroller fired the firm, which was representing New York's public employee pension fund as lead counsel in a case against pharmaceuticals giant Bayer AG. Ohio's public pension fund also axed Milberg Weiss."


Ameet Sachdev's article, entitled "Milberg case put on hold: Judge orders review of Boeing suit after law firm indicted," may be found in the Business Section of the November 13,. 2006 edition of the Chicago Tribune.

Posted On: November 12, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Lawsuits Again Dominate Claims Facing Class Action Defense Attorneys In California

Class action defense lawyers continue to face a greater number of labor law class action filings in California than any other category. As frequent visitors know, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from November 3 - November 9, with employment law class action cases retaining their firm grip on the top spot on the class action filings list. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 29 class action lawsuits were filed in these California state and federal courts during that time period, of which 10 (almost 35%) asserted labor law claims. Class action lawsuits alleging unfair competition, including unfair business practices and false advertising claims, again came in a second with 6 new class action filings (21%), with various Consumers Legal Remedies Act violations a close third with 5 new filings (17%). The only other group of class action claims that pass the 10% threshold involved 3 securities fraud filings (10%).

Posted On: November 12, 2006 by Michael J. Hassen Email This Post

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Defense Expected To Pay $30 Million To Settle Class Action Arising Out Of Martha Stewart Sale Of ImClone Stock In 2001

Martha Stewart and Martha Stewart Living Omnimedia Defense Attorneys Report $30 Million to Settle Class Action


Several news reports cite reliable sources that the class action against Martha Stewart Living Omnimedia and Martha Stewart has been settled pending court approval. Several lawsuits were filed apparently claiming that Stewart’s misrepresentations concerning her sale of ImClone stock artificially inflated the stock price of Martha Stewart Living. The separate lawsuits eventually were consolidated. News reports place the total settlement at $30 million, of which Martha Stewart personally will pay about $5 million. Insurers are expected to pay about $10 million, with the company – Martha Stewart Living – picking up the tab for the remaining $15 million.


News reports on the anticipated settlement may be found in an article entitled “Stewart Expected To Pay $5 Million To Settle Suit,” in the Business Section of the November 9, 2006 Los Angeles Times, and in an article entitled “Stewart To Pay $5 Million In Settlement Of ImClone Suit,” in the Business Section of the November 9, 2006 Chicago Tribune.

Posted On: November 4, 2006 by Michael J. Hassen Email This Post

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Class Action Employment Law Claims Continue To Predominate Categories Confronting Defense Attorneys As Labor Law Class Actions Hold Top Spot In California Weekly Class Action Filings

To allow class action defense lawyers anticipate claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from October 27 - November 2, 2006, and employment law cases yet again hold a firm grip on the top spot on the list. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 37 class action lawsuits were filed in these California state and federal courts during that time period, of which 17 involved labor law claims (46%). Class action lawsuits alleging unfair competition, including unfair business practices and false advertising claims, came in a distant second with 9 new class action filings (24%). The only other group of class action claims that pass the 10% threshold are four (4) cases alleging fraud (11%).

Posted On: October 28, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Again Lead Weekly California Filings Facing Defense Attorneys

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from October 20 - October 26, 2006. We include only those categories that boast 10% or more of the class action filings during the relevant timeframe. Approximately 33 class action lawsuits were filed in these California state and federal courts during that time period, of which 16 involved employment law claims (almost 50%). The category with the second highest number of class action filings involved California’s Unfair Competition Law (UCL) - which includes unfair business practices and false advertising claims - with 9 new filings (27%). The third category of class action cases with more than 10% of the new weekly filings concerned alleged violations of California's Consumers Legal Remedies Act (CLRA): class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 15% of the class actions filed this time period.

Posted On: October 24, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Issues--Fair and Accurate Credit Transactions Act (FACTA)

Class Action Defense Attorneys Urged to Advise Clients about FACTA Requirements

As we previously noted, the Fair and Accurate Credit Transactions Act (FACTA) is scheduled to take effect in December, 2006. Congress requires that credit card receipts provided to customers be modified so that the information contained on them no longer serves as a ready source for credit card fraud or identity theft. Under FACTA, the credit card number shown on the customer copy of the credit card receipt must be truncated and the expiration date must be omitted. Class action defense attorneys are encouraged to be proactive in warning their clients about the statute before the law becomes effective.

Posted On: October 20, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Lead Weekly California Filings Facing Defense Attorneys But Unfair Competition/Unfair Business Practice (UCL) Class Action Filings Run A Close Second

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from October 13 - October 19, 2006. We include only those categories that boast 10% or more of the class action filings during the relevant timeframe. Approximately 46 class action lawsuits were filed in these California state and federal courts during that time period, of which 18 involved employment law claims (almost 40%). Surprisingly, however, class action filings involving California’s Unfair Competition Law (UCL) - which includes unfair business practices and false advertising claims - came in a strong second, with 16 new filings (35%). Half of these UCL claims (8) involved the alleged SRAM price-fixing conspiracy against numerous defendants, including Samsung, Hynix, Micron Technology, IBM, Epson, Hitachi, Sharp, Sony, Fujitsu, Alliance Semiconductor, NEC, and many others.

During this time period, the only other significant group of class action filings involved various securities claims: class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 11% of the class actions filed this time period.

Posted On: October 17, 2006 by Michael J. Hassen Email This Post

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Pennsylvania Jury Finds Wal-Mart Liable In Employee Overtime/Rest Breaks Class Action Case And Awards $78 Million In Damages Plus Attorney Fees

Defense Attorneys Plan to Appeal Jury Verdict that Wal-Mart Failed to Provide Employees with Rest Breaks and Overtime, and that Wal-Mart Acted in Bad Faith

The jury is in on a labor law class action on behalf of 187,000 Wal-Mart and Sam’s Club employees brought in Pennsylvania state court. The lawsuit alleged that employees were not provided rest breaks and were required to work “off the clock,” depriving them of overtime pay. The jury awarded $78.5 million in damages, and that figure may be dramatically increased because the jury also found that Wal-Mart acted in bad faith, opening the door to an additional $62 million in damages, according to plaintiffs’ lawyers. The jury agreed with defense attorneys that Wal-Mart had not forced employees to work through meal breaks. Several news sources have reported on the verdict, including Steven Greenhouse of the New York Times and James Covert of the Wall Street Journal.

Continue reading "Pennsylvania Jury Finds Wal-Mart Liable In Employee Overtime/Rest Breaks Class Action Case And Awards $78 Million In Damages Plus Attorney Fees" »

Posted On: October 14, 2006 by Michael J. Hassen Email This Post

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Frustration Over Terms Of Class Action Settlements And Defense Practice Of Refusing To Admit Wrongdoing

Reporter Shines Light on Concerns Arising from Standard Defense Provision in Class Action Settlement Agreements that Defendant is not Admitting Liability

David Lazarus of the San Francisco Chronicle questions the standard defense provision in class action settlement agreements that the settlement does not constitute an admission of liability. He focuses on the recent settlement by Wells Fargo Bank in which he reports “it agreed to pay $12.8 million to settle a lawsuit claiming the bank unlawfully exempted as many as 4,500 workers from overtime pay by classifying them as analysts or consultants” but denied any wrongdoing. Mr. Lazarus identifies several other settlements that follow the same pattern. While understandable, any consumer frustration over this standard provision reflects in part unfamiliarity with the costs – financial and otherwise – associated with class action litigation, and fails to recognize that such provisions are standard clauses in virtually all settlement agreements, class action and non-class action.

Mr. Lazarus quoted this author’s observation that one reason defendants deny liability is so that the issue may be litigated in a future proceeding, if necessary. The concern is not that the settlement will “spark a flurry of lawsuits in other states,” but rather that the company will be precluded from obtaining a judicial determination on the merits in a future case. Very few companies blatantly violate the plain language of the law, and all attorneys recognize that the outcome of a trial can never be 100% guaranteed, no matter how strong the case. Rather, many of the legal issues presented in class action and other complex or high-liability cases fall into the “gray” areas of the law. For example, whether a grocery store manager is exempt from overtime often turns on the individual facts of the particular case, see, e.g., Dunbar v. Albertson’s, Inc., 141 Cal.App.4th 1422 (Cal.App. 2006) (refusing to certify class action on behalf of grocery store managers because of individual issues of liability and damages), whether employee commissions are subject to charge-backs or constitute wages turns on the specific facts of each case, see, e.g., Koehl v. Verio, Inc., ___ Cal.App.4th ___, 48 Cal.Rptr.3d 749 (Cal.App. 2006) (holding employer’s program did not violate California law, and awarding damages and attorney fees to employer).

If Albertson’s had settled the class action filed by Dunbar and if Verio had settled the class action filed by Koehl, those cases would have qualified for the list in Mr. Lazarus’s article. They represent concrete examples of why a company does not want to cut-off its right to litigate a future case involving the same issues.

The article by David Lazarus, entitled “They Pay But Deny Any Guilt,” may be found in the Business Section of the October 13, 2006 edition of the San Francisco Chronicle.

Posted On: October 13, 2006 by Michael J. Hassen Email This Post

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California Defense Attorneys Find That Public Accommodation/ADA Cases Bounce Back Above Employment Law Class Action Cases In Weekly Filings

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of from October 6 - October 12, 2006. We include only those categories that contain 10% or more of the class action filings during the relevant timeframe. Approximately 44 class action lawsuits were filed in these California state and federal courts during that time period, of which 14 (almost 32%) involved public accommodation actions under the federal Americans with Disabilities Act (ADA). Employment law claims came in second with 11 new filings (25%). The only other category of cases to break the 10% threshold consisted of unfair competition/unfair business practice claims: class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 11% of the class actions filed during this time period.

Posted On: October 6, 2006 by Michael J. Hassen Email This Post

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Public Accommodation/ADA Class Action Lawsuits Again Seize Top Spot Of Weekly Class Action Filings In California State And Federal Courts

The evidence suggests that the recent wave of public accommodation/ADA class action lawsuits will continue for the foreseeable future. In order to assist class action defense attorneys in California to anticipate the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. At one time, employment law cases routinely headed the list, but an increasing number of class actions alleging public accommodation/Americans with Disabilities Act (ADA) claims have been filed.

This report covers the time period from October 2 – October 5, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 55 class action lawsuits were filed in these California state and federal courts during that time period, of which 29 – almost 53% – involved public accommodation/ADA claims. Coming in at a distant second place, 8 new employment law class actions (15%) were filed during this time period.

Posted On: September 27, 2006 by Michael J. Hassen Email This Post

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Weekly California State And Federal Class Action Filings Predominantly Labor Law Cases

As a service to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. This report covers the time period from September 22 – September 26, 2006. Approximately 40 class action lawsuits were filed in these California state and federal courts during that time period, of which 19 (48%) involved employment law claims. Demonstrating the predominance of labor law class actions in California, not a single other category of cases satisfied the 10% threshold requirement to be listed in this report.

Posted On: September 26, 2006 by Michael J. Hassen Email This Post

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Certification Of Class Action Against Tobacco Companies Hits Newspapers

New York Federal Court Order Certifying Class Action Against Tobacco Companies for Misleading Smokers into Believing that "Light" Cigarettes were Less Harmful Becomes Hot Topic of Discussion

We reported yesterday on the order by United States District Court Judge Jack Weinstein of the Eastern District of New York that certified a massive class action against numerous tobacco companies based on the allegation that the companies intentionally mislead smokers into believing that "light" cigarettes were less harmful than regular cigarettes. As expected, that decision is headline news. While there are undoubtedly countless competent articles on the subject, we believe a few deserve to be singled out. For those interested in reading news articles on the subject rather than the 540-page court opinion, we recommend the following reports.

An article by Wall Street Journal reporter Vanessa O'Connell, entitled, "Tobacco Firms Exposed To New $200 Billion Claim," which may be found on page A3 of the September 26, 2006 edition of the Wall Street Journal.

An article by New York Times reporters David Cay Johnston and Melanie Warner, entitled "Tobacco Makers Lose Key Ruling on Latest Suits," which may be found in Section A of the September 26, 2006 edition of the New York Times, as well as the September 26, 2006 online edition of the New York Times at nytimes.com. The link is <http://www.nytimes.com/2006/09/26/business/26tobacco.html>.

Posted On: September 25, 2006 by Michael J. Hassen Email This Post

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Schwab v. Phillip Morris-Class Action Defense Cases: New York Federal Court Certifies Class Action Against Tobacco Companies For Selling "Light" Cigarettes

Smokers Duped Into Believing that “Light” Cigarettes were Less Harmful New York Court Holds

As anticipated, Judge Jack Weinstein of the United States District Court for the Eastern District of New York issued his ruling this morning on the plaintiffs’ motion to certify a class action against Philip Morris USA, R.J. Reynolds Tobacco Co., Brown & Williamson Tobacco Corp., Lorillard Tobacco Co., Ligget Group, American Tobacco Co., Altria Group, and British American Tobacco, in a case that alleged the tobacco companies duped smokers into believing that “light” cigarettes were less harmful to them. Schwab v. Phillip Morris USA, Inc., 449 F.Supp.2d 992 (E.D.N.Y. 2006). The court summarized the theory of the case at page 1018 as follows:

Continue reading "Schwab v. Phillip Morris-Class Action Defense Cases: New York Federal Court Certifies Class Action Against Tobacco Companies For Selling "Light" Cigarettes" »

Posted On: September 24, 2006 by Michael J. Hassen Email This Post

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Trial On Federal Charges Against Class Action Law Firm Milberg Weiss Delayed As Prosecutors Consider Additional Indictments

Speculation Mounts as to Whether Class Action Plaintiff Lawyer William Lerach Also will be Indicted

As the class action plaintiff firm Milberg Weiss Bershad & Schulman and two of its partners, David Bershad and Steven Schulman, moves forward, Molly Selvin of the Los Angeles Times reports that the setting of a trial date has been postponed because of the prospect of additional indictments. The federal court reportedly expressed frustration that the government’s 7-year investigation remains ongoing. Selvin also reports that “many observers believe [the additional indictments] could involve William S. Lerach.” The federal court is expected to set a trial date on November 27.

Molly Selvin’s article, entitled “Judge Delays Trial Date for Milberg Weiss Case,” may be found in the Business Section of the September 21, 2006 edition of the Los Angeles Times.

Posted On: September 23, 2006 by Michael J. Hassen Email This Post

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Public Accommodation/ADA Class Action Lawsuits Surge To Top Of Weekly Class Action Filings In California State And Federal Courts

Class action defense attorneys in California will be confronting a new wave of public accommodation/ADA (Americans with Disabilities Act) cases, supplanting new labor law class actions by a substantial margin. In an effort to assist class action defense attorneys in anticipating the claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for new class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases routinely lead the list, but this past week showed a startling increase in the overall number of class action filings and the number of class actions alleging public accommodation/Americans with Disabilities Act (ADA) claims.

This report covers the time period from September 15 - September 21, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 71 class action lawsuits were filed in these California state and federal courts during that time period, of which 42 – almost 60% – involved public accommodation/ADA claims. The second place category consists of 14 new employment law class action filings (20%).

Posted On: September 15, 2006 by Michael J. Hassen Email This Post

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Public Accommodation/ADA Claims Regain First Place In California Class Action Filings

California class action defense attorneys once again confront more public accommodation lawsuits than employment law claims. In an effort to assist class action defense attorneys to anticipate claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Thus far, employment law cases have led the list each week since we began making these reports. This week, however, class action complaints involving public accommodation/Americans with Disabilities Act (ADA) cases lead the list. This report covers the time period from September 8 - September 14, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 47 class action lawsuits were filed in these California state and federal courts during that time period, of which 15 involved public accommodation/ADA claims (32%). The second place category consists of 14 new employment law class action filings (30%).

Posted On: September 14, 2006 by Michael J. Hassen Email This Post

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New York Federal Court Considers Defense Arguments Against Certification Of Class Action Against Tobacco Companies

Melanie Warner and Colin Moynihan report a New York federal court is considering whether to certify as a class action a federal RICO (Racketeer Influenced Corrupt Organizations Act) lawsuit that alleges tobacco companies “deceived smokers for years about the safety of light cigarettes” by making smokers think that they were “safer or less addicting.” Defense attorneys strenuously opposed the motion, reportedly arguing differences in the reasons people smoke - such as “that many people smoked light cigarettes because they liked the taste, not for health reasons or as part of an attempt to quit smoking” - and differences in the ways people smoked rendered the case unsuitable for treatment as a class action. Warner and Moynihan state that the federal court questioned plaintiffs’ attorneys about the size of the class (which plaintiffs’ lawyers estimate to be in the tens of millions given that the sale of light cigarettes accounts for 45% of the market) and the method by which they estimated damages to be in excess of $20 billion.

While many similar cases have proved unsuccessful, the New York federal judge will be considering the motion in the wake of the detailed 1,600-page opinion last month by District of Columbia federal judge Gladys Kessler, “who found that cigarette companies engaged in decades of fraud and racketeering, including misleading smokers and concealing information about the health risks of light cigarettes.” The article describes Judge Kessler’s opinion as “a searing indictment of conduct by tobacco companies over the last 40 years.”

The article by Melanie Warner and Colin Moynihan, entitled “Judge Weighs New Trial Against Tobacco Companies,” may be found in Section C of the September 14, 2006 edition of the New York Times.

Posted On: September 13, 2006 by Michael J. Hassen Email This Post

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Allstate Katrina Class Action Defense Case-Vaz v. Allstate: Mississippi Federal Court Denies Motion For Certification Of Class Action Against Allstate Based On Hurricane Katrina Claims

Becky Yerak of the Chicago Tribune reports that a federal district court has denied a request to certify a class action of Mississippi policyholders against Allstate Insurance Company arising out of the handling of Hurricane Katrina claims, agreeing with defense attorneys that "each contract is a separate transaction" and that "[t]he storm was vastly different in its effect depending on the specific geographic location of each particular home." Yerak notes that less than a month ago another Mississippi federal court denies a motion for class-action certification in a lawsuit against State Farm Fire & Casualty Company by its policyholders arising out of the Hurricane Katrina claims. Plaintiffs' lawyer in the Allstate case told Yerak that he will seek rehearing of the ruling and then file an appeal.

Becky Yerak's article, entitled "Katrina ruling favors Allstate: No class-action status for Mississippi claims," may be found in the Business section of the September 12, 2006 edition of the Chicago Tribune.

Posted On: September 11, 2006 by Michael J. Hassen Email This Post

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Class Action Law Firm Milberg Weiss Opens Checkbook To Keep Attorneys

As Defections Mount, Class Action Firm Offers Financial Incentives to Retain Lawyers

We have devoted several articles to the trials facing class action plaintiff firm Milberg Weiss Bershad & Schulman, from its federal indictment for allegedly paying millions in kickbacks to clients to serve as class representatives to the continual loss of top attorneys. Now Nathan Koppel of the Wall Street Journal reports that Milberg Weiss has decided to fight defections with a different kind of kickback - bonuses and higher salaries for attorneys who stay with the firm. Koppel reports that almost half of the Milberg Weiss partners have abandoned ship in the wake of the firm’s federal indictment on fraud charges. In addition to the 20 partners who have left (or soon will leave) the firm, about 20 more lawyers have left as well.

Koppel reports that the firm that once had about 110 lawyers and now has about 70 “has promised special bonuses and fatter paychecks for people who stay.” Koppel further reports Weiss has offered partners “a greater share of the firm’s equity or higher salaries” and that the salaries of some partners may double.

Nathan Koppel’s article, entitled “At Milberg Weiss, A Move to Stanch Loss of Top Talent,” may be found on page B1 of the September 9, 2006 online edition of the Wall Street Journal.

Posted On: September 9, 2006 by Michael J. Hassen Email This Post

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Class Action Labor Law Cases Again Lead Weekly Filings In California

As a service to class action defense attorneys, we recently began providing unofficial summaries of the categories of new class action lawsuits filed in California. It is our hope that this will permit defense attorneys to anticipate claims against which they may have to defend. This weekly, unofficial summary covers class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from September 1 - September 7, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe.

Approximately 22 class action lawsuits were filed in these California state and federal courts during that time period, and employment law cases once again head up the list. Of the weekly filings, more than half involved employment law claims. In all, a dozen of the new class action cases (55%) alleged labor law violations. The only other category of cases to crack the 10% threshold involved unfair business practice/unfair competition (UCL) claims. During the reported time period, five (5) UCL class action lawsuits, accounting for 23% of the new cases, were filed.

Posted On: September 8, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases-Federal District Court Grants Motion To Dismiss Putative Class Action Alleging 180Solutions Was A Spyware Company

Illinois Federal Court Gives Defense Latest Victory in Spyware Class Action Lawsuits

Eric Benderoff of the Chicago Tribune reports today that a federal district court has granted a motion to dismiss a putative class action against 180solutions (now known as Zango), and quotes the company’s Chief Compliance Officer as stating, “[Plaintiffs] claimed we were a spyware company and that we trespass on people’s computers. We don’t do that; we are invited on the customer’s computer.” This is but the latest defense victory against such class actions: Benderoff states, “So far, there has not been a successful class-action suit against software firms that are accused of planting unwanted and irritating spyware programs on computers.” However, the article identifies at least one lawsuit where plaintiff’s lawyer “successfully argued that spyware companies were trespassing on personal property” which Benderoff describes as “a tactic lifted from environmental law.” Recent governmental efforts to attack the spyware problem may prove more successful, and Benderoff notes that the Federal Trade Commission “has brought six cases to date under its unfair and deceptive practices authority while the Justice Department has pursued spyware cases using the Wiretap Act.”

Continue reading "Class Action Defense Cases-Federal District Court Grants Motion To Dismiss Putative Class Action Alleging 180Solutions Was A Spyware Company" »

Posted On: September 7, 2006 by Michael J. Hassen Email This Post

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New Study Estimates Shareholder Risk For Options Backdating At $500 Million

Hot on the heels of Julie Creswell’s New York Times article on options backdating comes a report on the costs to shareholders as estimated by a new study expected to be published in the Michigan Law Review next year. That study, according to Eric Dash of the New York Times, was prepared by three University of Michigan researchers and reportedly concludes that while the backdating of stock options increased executive pay by an average of slightly more than 1%, the average decrease in market value was 8%. Put in terms of dollars, Dash reports that the study concludes, “For about $600,000 a year to the executives, shareholders are being put at risk to the tune of $500 million.”

Care should be exercised in reviewing the statistics, however, as Dash reports that the study employs several assumptions and limitations that may not be valid. For example, Dash notes that the study assumes that the stock prices of affected companies “would not recover” - an assumption that appears contrary to information in Ms. Creswell’s article. The study also apparently assumes that the options “were backdated over a 90-day period,” when in fact - as Ms. Creswell’s article explains - many of the options were backdated so long ago that statutes of limitation have run.

Eric Dash’s article, entitled “Report Estimates the Costs Of a Stock Options Scandal,” may be found in Section C. of the September 6, 2006 edition of the New York Times.

Posted On: September 5, 2006 by Michael J. Hassen Email This Post

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Defense Attorneys Facing Fewer Class Action Lawsuits Challenging Backdated Stock Option Awards

Plaintiff Lawyers Focus on Derivative Actions Rather than Class Action Lawsuits to Attack Stock Option Backdating Programs

Defense attorneys have expressed surprise at the relatively limited number of class action lawsuits filed in the wake of options-backdating disclosures; Julie Creswell of the New York Times has noticed this, too. In today’s edition of the New York Times, Creswell provides a possible explanation for the dearth of class action filings: “Even when it is clear that options grant dates were manipulated, it is less clear how to calculate damage to specific shareholders. And in many cases, the statute of limitations has expired.”

As a result, plaintiff lawyers have turned to derivative actions to challenge options-backdating programs. Creswell reports that while only 15 securities class action lawsuits challenge stock-option plans, at least 57 derivative actions attacking options-backdating have been filed.

Julie Creswell’s article, entitled “One Route Seems Closed, So Lawyers Try Different Lawsuit in Stock-Option Scandal,” may be round in Section C. of the September 5, 2006, edition of the New York Times.

Posted On: September 2, 2006 by Michael J. Hassen Email This Post

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Class Action Labor Law/Overtime Claims Regain Top Spot In California Weekly Class Action Filings

To allow the class action defense lawyer to anticipate claims against which she or he may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from August 25 - August 31, 2006, and employment law cases regained sole possession of the top spot on the list. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 35 class action lawsuits were filed in these California state and federal courts during that time period, of which 16 involved labor law claims (46%). At least ten (10) of the employment law class action filings allege unpaid overtime (63% of the employment law class action filings and 29% overall). The only other group of class action claims that pass the 10% threshold are six (6) cases transferred by the Judicial Panel on Multidistrict Litigation (17%), MDL 06-1791, concerning the warrantless disclosure of customer telecommunications information.

Posted On: August 25, 2006 by Michael J. Hassen Email This Post

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Indicted Class Action Firm Continues To Lose Attorneys And Close Offices--Latest Lawyer Switches To Defense

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and two of the firm's top partners, David Bershad and Steven Schulman - indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs - continues to top-notch trial lawyers. The latest to leave, according to Julie Creswell of the New York Times, is Patricia Hynes, who joined Milberg Weiss in 1982. Ms. Hynes' decision is particularly intriguing because she moves from representing class action plaintiffs to defense work at Allen & Overy.

Creswell notes, "Milberg Weiss has struggled to keep lawyers, clients and crucial cases after a federal grand jury in Los Angeles indicted the firm and two of its name partners in May on criminal charges involving $11.3 million in illegal secret payments that were made to individuals who served as plaintiffs in more than 150 lawsuits over several years." The exodus has caused Milberg Weiss to close its offices in Boca Raton, Florida and in Washington, and Creswell reports that an office is Delaware will soon follow.

Julie Creswell's article, entitled "Another Prominent Lawyer Departs From Milberg Weiss," may be found in Section C. of today's edition of the New York Times.

Posted On: August 23, 2006 by Michael J. Hassen Email This Post

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California Action Targets Hiring Of Illegal Immigrants Under California’s Unfair Competition Statute

Peter Prengaman of The Associated Press last night reported that a lawsuit has been filed in California by a company, Global Horizons, claiming that another company, Munger Bros., breached an agreement to hire 600 blueberry pickers so that it could instead hire illegal immigrants from two competing temporary placement agencies, Ayala Agricultural Services and J & A Contractors. Prengaman reports that the complaint is premised on California's unfair competition laws, and quotes the President of Global Horizon as stating that "[the] hiring of illegal immigrants is hurting our business badly." In essence, the complaint seeks to enforce immigration laws. The lawsuit could be a harbinger of things to come, as at least one attorney believes additional lawsuits targeting illegal immigration, on the grounds that competitors realize an unfair advantage from using illegal immigrants, will soon follow.

Posted On: August 19, 2006 by Michael J. Hassen Email This Post

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California Defense Attorneys Face Slew Of New Public Accommodation/ADA Class Action Cases

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Thus far, employment law cases have led the list each week since we began making these reports. This week, however, class action complaints involving public accommodation/Americans with Disabilities Act (ADA) cases lead the list. This report covers the time period from August 11 - August 17, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 39 class action lawsuits were filed in these California state and federal courts during that time period, of which 19 involved public accommodation/ADA claims (49%). The second place category consists of eight (8) new employment law class action filings (21%).

Posted On: August 13, 2006 by Michael J. Hassen Email This Post

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Class Action ADA Claims Tie Employment Law Class Action Cases In California Weekly Filings

California class action defense attorneys will face a substantial number of new class action claims based on last weeks latest court filings. To allow the class action defense lawyer to anticipate claims against which she or he may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period from August 4 - August 10, 2006, and while labor law cases once again head up the list, an equal number of ADA (Americans with Disabilities Act) cases were filed. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 53 class action lawsuits were filed in these California state and federal courts during that time period, of which 12 involved employment law claims (23%). At least seven (7) of the labor law class action filings allege unpaid overtime (58% of the employment law class action filings and 13% overall). But class action claims under the Americans with Disabilities Act (ADA) tied for first place, also with 12 new lawsuits (23%). The third place category consists of five (5) fair debt collection practices lawsuits brought under state and/or federal law.

Posted On: August 11, 2006 by Michael J. Hassen Email This Post

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Federal Appeals Court Upholds IBM Defense To Class Action Judgment Against IBM Pension Plan

In a prior article, we summarized the Seventh Circuit opinion in Cooper v. IBM Personal Pension Plan and IBM Corp., ___ F.3d ___ (7th Cir. August 7, 2006). In Cooper, a district court entered judgment in favor of class action plaintiffs, concluding that IBM's pension plan violated ERISA's prohibition against age discrimination, but the Circuit Court agreed with defense attorneys that the plan was not age discriminatory and reversed. Mary Williams Walsh of the New York Times has written an excellent summary of Cooper without the minutia of the statutory language at issue. Ms. Walsh's article, entitled “Court Rules For I.B.M. On Pension,” may be found in Section C. of the August 8, 2006 edition of the New York Times.

Posted On: August 10, 2006 by Michael J. Hassen Email This Post

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Federal Court Sua Sponte Removes Milberg Weiss From Steering Committee Of Class Action Transferred To Minnesota District Court By Multidistrict Litigation (MDL) Panel—Class Action Defense Issues

Federal Court Holds Lawyer’s Failure to Disclose Investigation and Duty Court Owes Transferee Plaintiffs Requires Removal from Plaintiffs’ Steering Committee and Notice to, and Consent of, Lawyer’s Individual Clients

Product liability actions – filed against Medtronic, Inc., concerning its implantable defibrillator – were transferred to a Minnesota federal court by the Multidistrict Litigation (MDL) Panel. Mitchell Breit, a partner in the New York office of Milberg Weiss Bershad & Schulman, was selected to serve on the Plaintiffs’ Steering Committee. Following the indictment of Milberg Weiss, the district court judge sua sponte initiated a telephone conference to discuss Breit’s continued involvement on the committee. In re Medtronic, Inc. Implantable Defibrillator Prod. Liab. Litig., 434 F.Supp.2d 729 (D. Minn. 2006). Lead counsel and Breit requested that he be allowed to continue to serve; the court rejected their pleas “finding that it is in the best interest of the transferee plaintiffs that Mr. Breit and the Milberg Weiss firm be severed from the service” on the committee. Id., at 730.

The federal court reasoned a transferee judge “bears a particularly heavy burden to protect the transferee plaintiffs,” in addition to and separate from the duty attorneys owe their clients. Further, in selecting attorneys to serve on the steering committee, the Court directly investigated the ethics of every lawyer who offered to serve on it: “It asked each attorney seeking appointment to the [steering committee] to submit a letter touching his/her own ethics, and the ethical competence of his/her firm or professional association.” Id., at 730. The court noted with dissatisfaction that Briet’s December 2005 submittal failed to disclose the criminal investigation of the Milberg Weiss firm or its partners, and said nothing of the potential criminal charges until the federal criminal indictment issued. Id. Breit’s May 30, 2005 letter to the Court – sent in response to the Court’s sua sponte inquiry – failed to explain why the criminal investigation “was never disclosed to this Court until the indictment was handed up.” Id., at 731. The district court found this unacceptable, explaining at page 731:

Continue reading "Federal Court Sua Sponte Removes Milberg Weiss From Steering Committee Of Class Action Transferred To Minnesota District Court By Multidistrict Litigation (MDL) Panel—Class Action Defense Issues" »

Posted On: August 5, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Again Lead California Weekly Filings

Employment Law Class Action Cases Again Lead California Weekly Filings

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases once again head up the list. This report covers the time period from July 28 - August 3, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 35 class action lawsuits were filed in these California state and federal courts during that time period, of which 10 involved employment law claims (29%). The second place category consists of five (5) new antitrust class action filings (14%), all of which involve the British Airways case. The third group consists of four (4) securities laws class actions (11%).

Posted On: August 4, 2006 by Michael J. Hassen Email This Post

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Merck Defense Wins Another Individual Vioxx Case, Further Strengthening Its Defense Position Against Class Action Lawsuits

Merck's defense team has prevailed in another Vioxx case, this one in California, adding further support to Merck's claims that class action treatment of these cases would be inappropriate. Merck also must present a defense against a class action lawsuit brought by insurers that alleges Merck defrauded them. Alex Berenson of the New York Times reports today that Merck's aggressive stance and early successes have resulted in the voluntary dismissal of more than 300 federal lawsuits against the company, as plaintiffs' attorneys reevaluate the upside of pursuing weak claims, though that still leaves pending roughly 14,000 such lawsuits. The class action defense notes the case-specific nature of each claim; as Berenson explains, "plaintiffs in Vioxx cases are usually older and have other risk factors for heart disease," which makes it more difficult for the plaintiff's lawyer to establish the causal connection between the drug and the plaintiff's injury. Berenson also notes that several more cases are scheduled to go to trial this year, so it is still "far too early to declare a winner in the litigation."

Mr. Berenson's article, entitled "Legal Stance May Pay Off For Merck," may be found in the August 4, 2006 edition of the New York Times.

Posted On: July 28, 2006 by Michael J. Hassen Email This Post

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Weekly Filings of Class Action Cases No Surprise - Defense Attorneys To Face More Employment Law Class Actions Than Any Other Category

As a service to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Our hope is that the class action defense lawyer may better anticipate claims against which they must defend. This report covers the time period from July 21 - July 27, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 48 class action lawsuits were filed in these California state and federal courts during that time period, of which 16 involved employment law claims (33%) - again claiming the dubious honor of "first place." Antitrust class action filings were a distant second with 6 new lawsuits (13%) four of which were nothing more than new filings against British Airways et al. Five (5) new class action lawsuits (10%) alleged violations of the Auto Sales Finance Act.

Posted On: July 28, 2006 by Michael J. Hassen Email This Post

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Weekly Filings of Class Action Cases No Surprise - Defense Attorneys To Face More Employment Law Class Actions Than Any Other Category

As a service to California class action defense attorneys, we provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Our hope is that the class action defense lawyer may better anticipate claims against which they must defend. This report covers the time period from July 21 - July 27, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 48 class action lawsuits were filed in these California state and federal courts during that time period, of which 16 involved employment law claims (33%) - again claiming the dubious honor of "first place." Antitrust class action filings were a distant second with 6 new lawsuits (13%) four of which were nothing more than new filings against British Airways et al. Five (5) new class action lawsuits (10%) alleged violations of the Auto Sales Finance Act.

Posted On: July 28, 2006 by Michael J. Hassen Email This Post

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Court Approves Google $90 Million Class Action Settlement In Click-Fraud Case

The Los Angeles Times reports that yesterday an Arkansas judge approved the $90 million settlement of the click-fraud class action lawsuit against Google. While more than 70 objections to the proposed settlement had been filed, Google's class action defense attorneys noted that all but one of Google's 20 largest advertisers approved of the settlement. The court reportedly downplayed the concerns of small advertisers, and concluded that the terms of the settlement were "fair, reasonable and adequate." The article, entitled "Judge OKs Google's Click-Fraud Settlement," may be found in the Business Section of the July 28, 2006 edition of the Los Angeles Times.

Posted On: July 28, 2006 by Michael J. Hassen Email This Post

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Court Approves Google $90 Million Class Action Settlement In Click-Fraud Case

The Los Angeles Times reports that yesterday an Arkansas judge approved the $90 million settlement of the click-fraud class action lawsuit against Google. While more than 70 objections to the proposed settlement had been filed, Google's class action defense attorneys noted that all but one of Google's 20 largest advertisers approved of the settlement. The court reportedly downplayed the concerns of small advertisers, and concluded that the terms of the settlement were "fair, reasonable and adequate." The article, entitled "Judge OKs Google's Click-Fraud Settlement," may be found in the Business Section of the July 28, 2006 edition of the Los Angeles Times.

Posted On: July 26, 2006 by Michael J. Hassen Email This Post

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Chicago Federal Judge Dismisses Warrantless Surveillance Class Action Against AT&T Agreeing With Defense That State Secrets Privilege Applies: Class Action Defense News

On July 21st, we posted an article concerning Hepting v. AT&T Corp., ___ F.Supp.2d ___ (N.D. Cal. July 20, 2006), where a San Francisco federal district court refused to dismiss a putative class action against AT&T for its participation in the government's warrantless surveillance program. In part, the California federal court rejected a defense argument by AT&T and the federal government (which had intervened in the putative class action) that the claims were barred by the state secrets privilege. Adam Liptak of the New York Times reports today that on July 25th a Chicago federal court dismissed similar claim against AT&T believing that the two decisions were not necessarily inconsistent. Liptak summarizes the Illinois decision as explaining that "The Chicago case concerns records of phone calls, including when they are placed, how long they lasted and the phone numbers involved. The San Francisco case, by contrast, mainly concerns an N.S.A. program aimed not at a vast sweep of customers' records but at the contents of a more limited number of communications."

Mr. Liptak's article, entitled "Judge Rejects Customer Suit Over Records From AT&T," may be found in the July 26, 2006 edition of the New York Times.

Posted On: July 24, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Issues--Federal Fair and Accurate Credit Transactions Act (FACTA)

Class Action Defense Attorneys Urged to Advise Clients about FACTA Requirements

Congress has amended the Fair Credit Reporting Act to include the Fair and Accurate Credit Transactions Act. That statute requires that credit card receipts provided to customers be modified so that the credit card number shown on the receipt is truncated and so that the expiration date is omitted. Defense attorneys are encouraged to be proactive in warning their clients about the statute, which takes effect in December 2006. The author predicts that this will be a ripe area for class action litigation.

Posted On: July 24, 2006 by Michael J. Hassen Email This Post

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Mervyn's Class Action Defense Case-Californians for Disability Rights v. Mervyn's: California Supreme Court Holds Proposition 64 Applies "Retroactively" To Section 17200 Unfair Competition Law (UCL) Claims

California Supreme Court's Decision Adds "Standing" to Class Action Defense Arsenal Against UCL Claims Pending at Time of Proposition 64's Passage

California's Unfair Competition Law (UCL), California Bus. & Prof. Code, §§ 17200 et seq., was enacted "to protect consumers and competitors" alike from unfair competition in commercial markets for goods and services "by promoting fair competition," Kasky v. Nike, 27 Cal.4th 939, 949 (Cal. 2002). While government entities may enforce the provisions of the UCL, California law also permits private parties to enforce its terms. Generally, however, the UCL was not intended to provide a means of redressing a personal injury; rather, California's statutory scheme permits a party on behalf of the public (other consumers or competitors) to enjoin an unlawful or unfair business practice. These so-called "representative actions" are often filed as class actions. The California Supreme Court today resolved the issue of whether Proposition 64, approved in November 2004, applies to cases pending at the time of its passage. Californians for Disability Rights v. Mervyn's, ___ Cal.4th ___ (Cal. July 24, 2006).

The scope of the UCL is extremely broad. It defines "unfair competition" to "include any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code." The Supreme Court has referred to this as "sweeping language" and declared that it is intended to cover "'anything that can properly be called a business practice and that at the same time is forbidden by law.'" Bank of the West v. Superior Court, 2 Cal.4th 1254, 1266 (Cal. 1992) (citation omitted). As the court explained, "[i]n essence, an action based on Business and Professions Code section 17200 to redress an unlawful business practice 'borrows' violations of other laws and treats these violations, when committed pursuant to business activity, as unlawful practices independently actionable under section 17200 et seq. and subject to the distinct remedies provided thereunder." Farmers Ins. Exchange v. Superior Court, 2 Cal.4th 377, 383 (Cal. 1992) (citation omitted).

Continue reading "Mervyn's Class Action Defense Case-Californians for Disability Rights v. Mervyn's: California Supreme Court Holds Proposition 64 Applies "Retroactively" To Section 17200 Unfair Competition Law (UCL) Claims" »

Posted On: July 21, 2006 by Michael J. Hassen Email This Post

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Class Action Plaintiff Firm Indicted In California Becomes Target Of Lawsuits

Indiana Court Requires Class Action Firm Milberg Weiss and Its Class Representatives to Produce Financial Records Dating Back to 1998

David Cay Johnston of the New York Times reports today that an Indiana court has granted a motion by American United Life Insurance Class to compel class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and four of the firm's clients to produce financial records dating back to 1998. Federal prosecutors filed criminal charges in California against Milberg Weiss and two of its partners in mid-May 2006 alleging that the firm paid millions of dollars in kickbacks to clients to serve as plaintiffs; charges the firm and its partners deny. American United Life filed the motion in an effort to discover whether the firm paid four of its clients to serve as plaintiffs in an action against the company that alleged it had improperly sold "tax-deferred annuities wrapped in retirement accounts that were themselves tax-deferred." The results of the court's order could be far-reaching, especially if it is any indication of court rulings to come in the many other lawsuits that have been filed against Milberg Weiss.

Mr. Johnston's article, entitled "Judge's Wide Disclosure Order Could Tie Up Litigation Firm," may be found in Section C. of the July 21, 2006 edition of the New York Times.

Posted On: July 21, 2006 by Michael J. Hassen Email This Post

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Correy Stephenson's Article Proves True For California - Class Action Defense Attorneys Again Face More Employment Law Class Action Cases Than Any Other Category

In an article published on July 17, 2006, Correy Stephenson - a staff writer for Lawyers USA - reports on the increase in employment law class actions, particularly under the federal FLSA (Fair Labor Standards Act). Her article and findings are certainly consistent with the court filings seen in California state and federal courts. To aid California class action defense attorneys in anticipating claims against which they may have to defend, we recently began to provide weekly, unofficial summaries of the legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. Employment law cases have led the way in every report. This report covers the time period from July 14 - July 20, 2006. We include only those categories that include 10% or more of the class action filings during the relevant timeframe. Approximately 34 class action lawsuits were filed in these California state and federal courts during that time period, of which 12 involved employment law claims (more than 35%), and eight (8) of those 12 (24% of the total number of class action filings) alleged inter alia failure to pay overtime. Unfair business practice lawsuits were next, with six (6) new filings (18%), followed by five (5) antitrust class actions (15%) and four (4) securities laws class actions (12%). It may be of interest to note that almost all of the antitrust lawsuits - four of the five - were "me too" lawsuits against British Airways.

Ms. Stephenson's article, entitled "Wage and hour suits on the rise: Employees seek payment for overtime and minimum wage," is the article of the week for Lawyers Weekly USA, and may be found online at www.lawyersweeklyusa.com/feature.cfm.

Posted On: July 21, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases--Hepting v. AT&T Corp.: California Federal Court Rejects Defense Motion to Dismiss Class Action Challenging Warrantless Surveillance Program

San Francisco Federal Court Denies Motion by Class Action Defense and Federal Government to Dismiss Lawsuit on Grounds of "State Secrets" Privilege and Immunity, But Certifies Order for Interlocutory Appeal

After the federal government's warrantless surveillance program was revealed in the press, and after AT&T and President Bush admitted the existence of the program, a putative class action was filed in San Francisco federal court against AT&T alleging that its participation in the program violated numerous constitutional and federal laws, as well as California's unfair competition law (UCL), California Bus. & Prof. Code, §§ 17200 et seq. AT&T moved to dismiss the class action complaint on grounds of standing, failure to plead that AT&T did not have a government certification, and immunity; the federal government intervened and moved for dismissal or summary judgment based on the state secrets privilege. Yesterday, the California district court denied the defense motions, but certified its order for immediate appeal. Hepting v. AT&T Corp., ___ F.Supp.2d ___ (N.D. Cal. July 20, 2006). The court's order is exceptionally detailed; we provide but a brief summary of it below. The entire opinion may be downloaded from the link at the end of this article.

The district court first addressed the federal government's "state secrets" defense. "'The state secrets privilege is a common law evidentiary rule that protects information from discovery when disclosure would be inimical to the national security.'" Slip Opn., at 5 (citation omitted). Importantly, an inquiry into the state secrets privilege does not turn on "a balancing of ultimate interests at stake in the litigation," Halkin v. Helms, 690 F.2d 977, 990 (D.C. Cir. 1982). Rather, the question is whether the harm that may result from the disclosure at issue requires that the information be withheld as a matter of "absolute right," id. The district court in Hepting applied the standard set forth in the Ninth Circuit's "definitive opinion on the state secrets privilege," Kasza v. Browner, 133 F.3d 1159 (9th Cir. 1998). Slip Opn., at 12. The federal government asserted that Kasza required dismissal because "(1) the very subject matter of this case is a state secret, (2) plaintiffs cannot make a prima facie case for their claims without classified evidence and (3) the privilege effectively deprives AT&T of information necessary to raise valid defenses." Slip Opn., at 15 . The court rejected each of these arguments.

Continue reading "Class Action Defense Cases--Hepting v. AT&T Corp.: California Federal Court Rejects Defense Motion to Dismiss Class Action Challenging Warrantless Surveillance Program" »

Posted On: July 18, 2006 by Michael J. Hassen Email This Post

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Indicted Class Action Firm And Lawyers Enter Not Guilty Pleas In California Federal Court

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and two of the firm's top partners, David Bershad and Steven Schulman - indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs - entered pleas of not guilty in a California federal court yesterday. As explained by Molly Selvin of the Los Angeles Times, "Prosecutors said the 'paid plaintiffs' were recruited to buy stocks in anticipation that they would fall in value, positioning themselves and Milberg Weiss to take the lead in securities-fraud cases and collect extra fees." Selvin also reports that, according to federal prosecutors, more indictments are likely to follow.

A New York Times article by Cindy Chang notes that two others tied to the alleged scheme - Seymour M. Lazar, "accused of serving as a paid plaintiff," and Paul T. Selzer, a lawyer "accused of helping launder the payments" to the paid plaintiffs - also entered not guilty pleas. Chang notes that Milberg Weiss continues to lose lawyers "and has been removed as lead counsel by a handful of large institutional investors in high-profile cases."

But Selvin reports that the news is not all bad for Milberg Weiss, as the class action plaintiffs' law firm continues to secure appointments to serve as lead counsel in class action lawsuits, suggesting the firm "might survive its current legal troubles." Molly Selvin's article, entitled "Milberg Enters Not Guilty Plea," may be found in the Business section of the July 18, 2006 edition of the Los Angeles Times. Cindy Chang's article, entitled "Law Firm and 4 Figures in Payments Case Enter Pleas," may be found in Section C. of the July 18, 2006 edition of the New York Times.

Posted On: July 17, 2006 by Michael J. Hassen Email This Post

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Australian Antitrust Class Action Nears Settlement

"Vitamins Class Action" Defense Attorneys and Plaintiffs' Lawyer Present Proposed $30.5 Settlement to Court

On July 17, 2006, the parties involved in Amsterdam's first cartel class action appeared in court to seek approval of a $30.5 million settlement after a 7-year legal battle. The "vitamins class action' named Roche, BASF and Aventis and alleged unfair competition price fixing from 1989-1999 for vitamins A, B2, B5, C, E, and beta carotene. Reportedly the Australian Federal Court permitted the case to proceed as a class action in 2002. The victims of the price fixing scheme - which involved vitamins used for animal nutrition - allegedly lost market share or paid inflated prices.

The class action was precipitated by actions initiated by the European Commission alleging a worldwide antitrust conspiracy to fix prices that included not only Roche, BASF and Aventis, but Solvay Pharmaceuticals, Merck, Daiichi Pharmaceutical, Eisai, Takeda Chemical Industries, Lonza, Kongo Chemical, Sumitomo Chemical, Sumika Fine Chemicals and Tanabe Saiyaku as well. The EU began its investigation in May 1999, and concluded that 13 companies had participated in cartels aimed at eliminating competition in vitamin markets involving vitamin A, B1, B2, B5, B6, C, D3, E, Biotin (H), Folic Acid (M), beta carotene and carotinoids. On November 21, 2001, the EU ended its investigation into what its antitrust chief called the "most damaging series of cartels the commission has ever investigated" by fining eight (8) companies a combined total of more than 855 million euros. (It did not fine the last five companies listed because the statute of limitations had run.)

Note: The plaintiffs' lawyer reportedly believes that settlement of this class action - if approved - will impact an antitrust class action she has filed against Amcor alleging price fixing of cardboard boxes. Earlier this month, Amcor filed a cross-claim against rival Visy, seeking to bring it into the class action. News reports state that Visy intends to vigorously fight the charges.

Posted On: July 17, 2006 by Michael J. Hassen Email This Post

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Australian Antitrust Class Action Nears Settlement

"Vitamins Class Action" Defense Attorneys and Plaintiffs' Lawyer Present Proposed $30.5 Settlement to Court

On July 17, 2006, the parties involved in Amsterdam's first cartel class action appeared in court to seek approval of a $30.5 million settlement after a 7-year legal battle. The "vitamins class action' named Roche, BASF and Aventis and alleged unfair competition price fixing from 1989-1999 for vitamins A, B2, B5, C, E, and beta carotene. Reportedly the Australian Federal Court permitted the case to proceed as a class action in 2002. The victims of the price fixing scheme - which involved vitamins used for animal nutrition - allegedly lost market share or paid inflated prices.

The class action was precipitated by actions initiated by the European Commission alleging a worldwide antitrust conspiracy to fix prices that included not only Roche, BASF and Aventis, but Solvay Pharmaceuticals, Merck, Daiichi Pharmaceutical, Eisai, Takeda Chemical Industries, Lonza, Kongo Chemical, Sumitomo Chemical, Sumika Fine Chemicals and Tanabe Saiyaku as well. The EU began its investigation in May 1999, and concluded that 13 companies had participated in cartels aimed at eliminating competition in vitamin markets involving vitamin A, B1, B2, B5, B6, C, D3, E, Biotin (H), Folic Acid (M), beta carotene and carotinoids. On November 21, 2001, the EU ended its investigation into what its antitrust chief called the "most damaging series of cartels the commission has ever investigated" by fining eight (8) companies a combined total of more than 855 million euros. (It did not fine the last five companies listed because the statute of limitations had run.)

Note: The plaintiffs' lawyer reportedly believes that settlement of this class action - if approved - will impact an antitrust class action she has filed against Amcor alleging price fixing of cardboard boxes. Earlier this month, Amcor filed a cross-claim against rival Visy, seeking to bring it into the class action. News reports state that Visy intends to vigorously fight the charges.

Posted On: July 16, 2006 by Michael J. Hassen Email This Post

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Federal Court Sets Bail For Indicted Class Action Plaintiff Lawyers At First Defense Appearance In Court

Separate articles summarize news reports and the criminal complaint involving the federal indictment of class action law firm Milberg Weiss, Bershad & Schulman and two of its partners for allegedly paying people $11 million in kickbacks to serve as class representatives in shareholder lawsuits. According to Friday’s edition of the San Jose Mercury news, “Prosecutors allege that the secret kickback arrangement often allowed the firm to be among the first to file lawsuits against major corporations on behalf of shareholders. The indictment alleges that the lawsuits generated $216 million in attorneys' fees.” The criminal indictment includes charges of money laundering, filing false tax returns, racketeering and conspiracy.

The San Jose Mercury News reported Friday that bail had been set for class action plaintiff lawyer David J. Bershad at $3.5 million, and for his partner Steven G. Schulman at $2 million. It was reportedly their first appearance in federal court; they are scheduled to return to court on Monday to enter pleas. The Associated Press report, entitled “Million Dollars Bail Set for Lawyers Indicted in Kickback Case,” may be found in the July 14, 2006 edition of the San Jose Mercury News.

Posted On: July 16, 2006 by Michael J. Hassen Email This Post

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Tien v. Superior Court (Tenet Healthcare): Class Action Defense Prohibited From Discovering Names Of Putative Class Members in Employment Law Case Who Contacted Plaintiffs' Lawyer Due To Class Members' Privacy Rights California Court Holds

Identities of Putative Class Members in Wage and Hour/Overtime Pay Class Action Who Contact Plaintiffs' Lawyer in Response to Precertification Letter Protected from Disclosure to Class Action Defense Attorneys by Right to Privacy

On May 15, 2006, a California appellate court addressed a discovery issue arising out of a putative class action filed against Tenet Healthcare on behalf of hourly employees alleging failure to provide meal and rest breaks and failure to pay overtime. Tien v. Superior Court, 139 Cal.App.4th 528 (Cal.App. 2006). During the precertification discovery proceedings, plaintiffs' lawyer asked for the identity and contact information of every class member in the putative class action. In response to obvious privacy concerns, the parties eventually agreed to a procedure whereby a neutral letter was sent to a randomly selected group of approximately 6% of the class members, advising them of the lawsuit and inviting them to contact plaintiffs' lawyer if they wanted more information. Id., at 532-334. The letter expressly stated, "You are not required to call anyone regarding this lawsuit unless you personally wish to do so. If you do elect to call, please be assured that doing so will not have any negative effect on your employment with any Tenet-related facility." Id., at 533 (bold in original). Tenet's class action defense attorneys later sought to discover the names of the people who contacted plaintiffs' lawyer in response to the letter; plaintiffs sought a protective order on several grounds, including the class members' right to privacy. The trial court ordered the information provided to defense attorneys concluding that the privacy rights "were outweighed by Tenet's right to the discovery." Id., at 534.

Eventually, the matter ended up before the California Court of Appeal on a petition for writ of mandate. The appellate court held that the information sought by Tenet was relevant, Tien, at 535-36, and that it was not protected from disclosure by the attorney work product doctrine, id., at 536, or the attorney-client privilege, id., at 536-38. The Court held, however, that disclosure of the identities of the class members who contacted plaintiffs' lawyer would violate their right to privacy. Id., at 539.

Continue reading "Tien v. Superior Court (Tenet Healthcare): Class Action Defense Prohibited From Discovering Names Of Putative Class Members in Employment Law Case Who Contacted Plaintiffs' Lawyer Due To Class Members' Privacy Rights California Court Holds" »

Posted On: July 16, 2006 by Michael J. Hassen Email This Post

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In Advance Of Potential Class Action Trials, Merck’s Vioxx Defense Team Secures Another Victory

On July 13, 2006, Merck’s defense team convinced a New Jersey jury that it was not responsible for the 68-year-old plaintiff’s heart attack – securing an important victory in advance of potential trials in the class action cases that have been filed in Vioxx cases. By our count, Merck has taken 6 Vioxx cases to trial (all against individuals): it has prevailed in three (3), it has lost two (2), and it “split” the sixth (the case involved two plaintiffs; Merck won as to one of the plaintiffs and lost as to the other). Merck’s class action defense has focused on the unique factual questions presented by each individual claim – a defense strengthened by the wide range of jury verdicts and jury findings.

NOTE: Vioxx has been off the market since September of 2004, following a study that found a statistical connection between long-term use of Vioxx and increased incidence of strokes and heart attacks.

Posted On: July 15, 2006 by Michael J. Hassen Email This Post

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Court Certifies Class Action Against State of New York Arising From Recreational Water Illnesses Suffered At Water Park: Class Action Defense Cases

The State of New York must mount a class action defense to a lawsuit seeking damages for illnesses caused by contaminated water at a water park run by New York’s Department of Parks, Recreation, and Historical Preservation. New York’s Seneca Lake Park's Sprayground was closed in August 2005 after tests revealed that its water tanks were contaminated with cryptosporidiosis, one of many types of recreational water illnesses. The tests were run after the Health Department received more than 100 complaints from people who fell ill after visiting the water park. A lawsuit filed in response to the incident received court approval this week to proceed as a class action.

NOTE: In broad terms, recreational water illnesses – caused by germs such as cryptosporidiosis, E. coli and giardia – are contracted through contact with contaminated water. The National Center for Disease Control and Prevention reports that incidents of such illnesses have been steadily on the rise, and estimates that roughly 19,000 people suffered from such illnesses between 1984 and 2002. While diarrhea is the most common recreational water illness symptom, the responsible germs can also cause ear and eye infections, skin infections and respiratory problems. While cryptosporidiosis is highly contagious, the National Center for Disease Control and Prevention reports that healthy people generally recover without the necessity of medical treatment. No deaths have been attributed to the Sprayground outbreak.

Posted On: July 15, 2006 by Michael J. Hassen Email This Post

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California Court Certifies Employment Law Class Action Against Brinker International

Restaurants’ Class Action Defense Fails to Prevent Class Certification in Meal and Rest Breaks Lawsuit

The Los Angeles Times reports today that a California court has certified a class action against the operator of restaurant chains Chili’s and Romano’s Macaroni Grill alleging failure to provide employee meal and rest periods required by California state law. According to the report, Judge Patricia Cowett of the San Diego Superior Court certified the class action on behalf of both current and former employees. The article maintains that, according to the plaintiffs’ lawyer, the class action that may cover as many as 63,000 class members.

The article, entitled “Brinker Faces Class Action over Meal Breaks,” may be found in the Business Section of the July 15, 2006 Los Angeles Times.

Posted On: July 14, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Again Lead Weekly Filings Confronting California Defense Attorneys

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of July 7 - July 13, 2006. We include only those categories with 10% or more of the class action filings during the relevant timeframe. Approximately 24 class action lawsuits were filed in these California state and federal courts during that time period, of which 12 (50%) involved employment law claims. During this time period, the only other significant group of class action filings involved various claims of unfair business practices: class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 21% of the class actions filed this past week.

Posted On: July 14, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Cases Again Lead Weekly Filings Confronting California Defense Attorneys

To aid California class action defense attorneys in anticipating claims against which they may have to defend, we provide weekly an unofficial summary of legal categories for class actions filed in California state and federal courts in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. This report covers the time period of July 7 - July 13, 2006. We include only those categories with 10% or more of the class action filings during the relevant timeframe. Approximately 24 class action lawsuits were filed in these California state and federal courts during that time period, of which 12 (50%) involved employment law claims. During this time period, the only other significant group of class action filings involved various claims of unfair business practices: class action defense attorneys will face 5 new cases involving that area of law, which represents approximately 21% of the class actions filed this past week.

Posted On: July 14, 2006 by Michael J. Hassen Email This Post

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Hurricane Katrina Lawsuit Textbook Example Of When Not To Use Class Action Device: Class Action Defense Issues

Class Action Defense Attorneys Agree With Plaintiffs’ Lawyer’s Assessment of Case

A lawsuit by Paul and Julie Leonard against Nationwide is the first lawsuit against a liability insurer for home damage caused by Hurricane Katrina to go to trial, according to today’s New York Times. The article by Joseph Treaster details the difference between insurance claims arising out of Katrina for wind damage (generally covered) and flood damage (generally excluded from coverage). Treaster also reports that many homeowners claim their insurance agent told them not to buy flood insurance because “it wasn’t necessary.” But while Hurricane Katrina affected tens of thousands of people, the plaintiffs’ lawyer, an experienced class action attorney, elected to bring the Leonards’ claim on their behalf only “because it could take years to receive court certification for a class action.” But plaintiffs’ lawyer is quoted as saying, “Time is of the essence. These people need the insurance money to rebuild.” Class action defense attorneys agree that the case would not have made it to trial this quickly if plaintiffs’ lawyer had pursued a class action. As one class action defense attorney opined, “The case most likely still would be winding its way through precertification discovery if it had been brought as a class action. Both the plaintiffs’ lawyer and the defense attorneys would be required in a class action to conduct broader discovery, looking into issues of numerosity, commonality, typicality and adequacy of the plaintiffs to serve as class representatives.”

By focusing on the issues surrounding the claims of the plaintiffs only, plaintiffs’ lawyer eliminated the risk of his case getting bogged down in precertification discovery, and the class certification hearing that would follow. Based on his experience with class actions, plaintiffs’ lawyer undoubtedly knew also that he avoided possible writ proceedings that would have further delayed the trial date. In short, plaintiffs’ counsel demonstrated that an experienced class action attorney knows when to avoid filing class actions.

Treaster’s article, entitled “Katrina Victims Say Agents Advised Against Flood Coverage,” may be found in Section C of the July 14, 2006 edition of the New York Times.

Posted On: July 13, 2006 by Michael J. Hassen Email This Post

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Class Action Defense And Employment Law Issues–Loving v. Johnson: Prison Inmates Are Not Employees Under Federal FLSA (Fair Labor Standards Act) For Working At Prison Fifth Circuit Holds

In Case of First Impression for Federal Courts in Fifth Circuit, Court Joins Sister Circuits in Holding that Fair Labor Standards Act (FLSA) Does not Cover Prisoners Working at Prison

On July 7, 2006, the Fifth Circuit Court of Appeals considered the appeal of a prison inmate from a federal district court judgment dismissing his action as frivolous. Loving v. Johnson, ___ F.3d ___, 2006 WL 1868320 (5th Cir. 2006). The prisoner filed suit claiming that under the federal Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (FLSA), he was entitled to receive minimum wage for working in the prison laundry. The federal appeals court noted that "until today, we have not expressly stated whether there is any FLSA employment relationship between the prison and its inmates working in and for the prison." Slip Opn., at 2. The Circuit Court adopted the reasoning of a recent opinion out of the Seventh Circuit and quickly disposed of Loving's claim, holding that "a prisoner doing work in or for the prison is not an 'employee' under the FLSA," id., at 3:

People are not imprisoned for the purpose of enabling them to earn a living. The prison pays for their keep. If it puts them to work, it is to offset some of the cost of keeping them, or to keep them out of mischief, or to ease their transition to the world outside, or to equip them with skills and habits that will make them less likely to return to crime outside. None of these goals is compatible with federal regulation of their wages and hours. The reason the FLSA contains no express exception for prisoners is probably that the idea was too outlandish to occur to anyone when the legislation was under consideration by Congress.

Slip Opn., at 3 (quoting Bennett v. Frank, 395 F.3d 409, 409-10 (7th Cir. 2005) (additional citations omitted).

NOTE: As Loving notes, prisoners have not uniformly lost these types of cases. The Fifth Circuit has held, for example, that prisoners who work outside the prison for private firms are "employees" within the meaning of FLSA (at least if they are not sentenced to hard labor), Watson v. Graves, 909 F.2d 1549, 1556 (5th Cir. 1990), but that prisoners who work inside the prison for private firms are not be covered by FLSA, Alexander v. Sara, Inc., 721 F.2d 149, 150 (5th Cir. 1983). The Fifth Circuit has also held "that a jailer was not the FLSA employer of an inmate working in a work-release program for a private employer outside the jail," Loving, at 2 (citing Reimonenq v. Foti, 72 F.3d 472, 475-76 (5th Cir. 1996).

Download PDF file of Loving v. Johnson

Posted On: July 13, 2006 by Michael J. Hassen Email This Post

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California Court Agrees With Defense: Holds Both Class Action Plaintiff And Class Members Must Have Suffered Injury In Fact, And Both Must Have Standing Which Requires Detrimental Reliance On Allegedly False Advertising, In Order To Warrant Certification

Pfizer v. Superior Court: Proposition 64 Requires Class Action Representatives and Class Members Satisfy Injury in Fact and District Court Exercise of Discretion to Select Class Action Attorneys Best Able to Represent Absent Class Members is Generally Not Subject to Appellate Review: Class Action Defense Issues

California’s Unfair Competition Law (UCL), Cal. Bus. & Prof. Code, §§ 17200 et seq., and false advertising statute, id., §§ 17500 et seq., were altered fundamentally by the passage of voter-initiate Proposition 64 in November 2004. In January 2005, a putative class action lawsuit was filed in California state court against Pfizer under California’s UCL and false advertising law (FAL) on the ground that it had “marketed Listerine in a misleading manner by indicating the use of Listerine can replace the use of dental floss in reducing plaque and gingivitis.” Pfizer, Inc. v. Superior Court, ___ Cal.App.4th ___ (Cal.App. July 11, 2006), Slip Opn., at 2. (Prior to Proposition 64, UCL claims were brought as “representative actions”; Proposition 64 amended the UCL and FAL so as to require plaintiffs in such actions to satisfy the requirements for class action lawsuits. See Bus. & Prof., Code, §§ 17203 [UCL], 17535 [FAL].) The trial court certified class action status, describing the class as “all persons who purchased Listerine, in California, from June 2004 through January 7, 2005.” Id. The defense filed a petition for writ of mandate, and the appellate court reversed.

In seeking class certification, plaintiff claimed inter alia that his claims were “typical” of the class; the defense disagreed. Pfizer argued that individual issues would predominate over common questions of fact (as detailed in the “Note” below). Slip Opn., at 7. Nonetheless, the trial court certified “a broad class, on an opt-opt basis,” though it noted that whether Proposition 64 amended the standing requirements for class members in UCL class actions is “an open issue.” Id., at 7-8. After carefully analyzing the issue, the California appellate court held that the standing requirements for UCL class actions had been amended by Proposition 64: “Proposition 64 now prohibits any person, other than the Attorney General or local public prosecutors from bringing a lawsuit under the UCL or the FAL unless the person has suffered injury and lost money or property as a result of such violations.” Slip Opn., at 11 (citation omitted).

Continue reading "California Court Agrees With Defense: Holds Both Class Action Plaintiff And Class Members Must Have Suffered Injury In Fact, And Both Must Have Standing Which Requires Detrimental Reliance On Allegedly False Advertising, In Order To Warrant Certification" »

Posted On: July 12, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases: D.C. Circuit Grants Federal Government's Defense Motion To Reassign Class Action

Class Action District Court Judge's Hostility to Interior Department Makes Him Incapable of Rendering Fair and Impartial Rulings

Federal and state courts are understandably loathe to recuse judges for claims of bias, but on July 11, 2006, in a class action that has been pending for a decade, the United States Court of Appeals for the District of Columbia "reluctantly" granted a federal defense motion to do just that. Cobell v. Kempthorne, ___ F.3d ___, 2006 WL 1889150 (D.C. Cir. 2006). The class action originated in 1996, when five Indians sued the federal government for breach of fiduciary duties in its capacity as trustee of Indian lands by "destroy[ing] critical records, fail[ing] to account to trust beneficiaries, and either los[ing] trust assets or convert[ing] them to government use." Slip Opn., at 2. By the lawsuit, plaintiffs sought "'to force the government to abide by its duty to render an accurate accounting' of the assets held in Individual Indian Money (IIM) trust accounts." Slip Opn., at 2-3 (quoting Cobell v. Babbitt, 91 F.Supp.2d 1, 6-7 (D.D.C. 1999) ("Cobell V")). The case was certified as a class action in 1997, plaintiffs prevailed at trial, and in 1999 the district court ordered the federal government to "come into compliance with their duties." Slip Opn., at 3 (quoting Cobell v. Norton, 240 F.3d 1081,1094 (D.C. Cir. 2001) ("Cobell VI")). The lower court retained jurisdiction over the action and required status reports from the federal government quarterly summarizing its progress. Id. In 2001, the D.C. Circuit "generally affirm[ed] the judgment, but cautioned the district court "'to be mindful of the limits of its jurisdiction' and therefore to refrain from unduly interfering with Interior’s 'conduct in preparing an accounting.'" Slip Opn., at 3 (quoting Cobell VI, at 1110).

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Posted On: July 12, 2006 by Michael J. Hassen Email This Post

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Frustration Mounts Over Settlement Of Verizon Class Action Lawsuit As Defense Pleads That It Is Merely Complying With Court Order

David Lazarus of the San Francisco Chronicle reports today on the confusion millions of Verizon customers are experiencing in deciphering precisely what the new disclosures are in their wireless phone contract after receiving "a voluminous - and optional - 'customer agreement pursuant to lawsuit settlement.'" But they are not alone: according to Lazarus, a Verizon spokeswoman "admit[s] that finding the revised language can be tough." Verizon is quoted as saying, "If it's confusing, this is what we were ordered to do by the court." The situation is not helped by the fact that there is "no indication as to what's new in the contract or what the ramifications of accepting it might be." The situation is further complicated by the fact that Verizon implemented many of the "new" changes in November of 2003, in anticipation of the approval of a settlement agreement that contained those terms. According to Verizon, then, the "vast majority" of Verizon's 53 million customers are "already under contracts that contain these [new] disclosures." Mr. Lazarus's article, "Verizon Contract Still Murky," may be found in today's business section of the San Francisco Chronicle.

Posted On: July 12, 2006 by Michael J. Hassen Email This Post

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California Supreme Court Denies Review of Decision Permitting Precertification Discovery To Identify Substitute Class Action Representatives

California Supreme Court Denies Petition for Review and Request to Depublish Appellate Court Opinion in Best Buy v. Superior Court

In a post dated April 11, 2006, we summarized a then-recent California appellate decision in a class action against Best Buy that permitted the plaintiff-lawyer to conduct discovery for the purpose of finding substitute plaintiffs to serve as class representatives. See Best Buy Stores, L.P. v. Superior Court, 137 Cal.App.4th 772 (Cal.App. 2006). Best Buy filed a petition for review with the California Supreme Court on April 21, 2006. On July 12, 2006, the California Supreme Court denied the petition for review and further denied Best Buy's request that the appellate opinion be depublished.

Posted On: July 12, 2006 by Michael J. Hassen Email This Post

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California Supreme Court Denies Review of Decision Permitting Precertification Discovery To Identify Substitute Class Action Representatives

California Supreme Court Denies Petition for Review and Request to Depublish Appellate Court Opinion in Best Buy v. Superior Court

In a post dated April 11, 2006, we summarized a then-recent California appellate decision in a class action against Best Buy that permitted the plaintiff-lawyer to conduct discovery for the purpose of finding substitute plaintiffs to serve as class representatives. See Best Buy Stores, L.P. v. Superior Court, 137 Cal.App.4th 772 (Cal.App. 2006). Best Buy filed a petition for review with the California Supreme Court on April 21, 2006. On July 12, 2006, the California Supreme Court denied the petition for review and further denied Best Buy's request that the appellate opinion be depublished.

Posted On: July 11, 2006 by Michael J. Hassen Email This Post

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Kronemeyer v. U.S. Bank: Class Action Alleging Bank Wrongfully Charged Fee To Negotiate Checks Preempted By Federal National Bank Act Illinois Court Holds

Illinois Appellate Court Holds Defense Motion to Dismiss Class Action Should Have Been Granted Because Plaintiffs Lack Standing To Allege Wrongful Dishonor Of Check and Because Federal National Bank Act Preempts Illinois State Law Regarding Fees Charged to Negotiate Checks for Non-Customers

On July 5, 2006, an Illinois appellate court issued a surprising opinion in favor of the defense in a class action case. Illinois follows the rule that courts with interlocutory appeal/certified question procedures usually follow: “Th[e] court’s examination of an interlocutory appeal is usually limited to the questions certified by the trial court and, as with all questions of law, is a de novo review.” Kronemeyer v. U.S. Bank Nat’l Ass’n, ___ Ill.App.3d __ (Ill.App. 2006) (citation omitted) [Slip Opn., at 2]. Rarely do courts deviate from this general rule but the Kronemeyer appellate court did just that, sidestepping one of the questions certified for appeal, addressing a question that had not been certified for appeal, and reversing the trial court’s order denying the defense motion to dismiss the class action.

Plaintiffs filed a putative nationwide class action alleging that U.S. Bank “regularly charges a fee of $10 to persons who do not have accounts at U.S. Bank and who present for payment checks drawn by its depositors,” and pleading state law causes of action. The defense filed a motion to dismiss the class action on the grounds, inter alia, that plaintiffs lacked standing to prosecute the “wrongful dishonor” claim, and that the claims were preempted by federal National Bank Act, 12 U.S.C. § 93a (2000), and the regulations and regulation interpretations issued by the Office of the Comptroller of the Currency (OCC). Slip Opn., at 2. The trial court denied the motion to dismiss, id., but certified for interlocutory appeal two questions: “(1) whether the plaintiffs’ claims are preempted under the National Bank Act . . . and the regulations and regulatory interpretations issued thereunder by the [OCC] and (2) whether the circuit court has jurisdiction to review whether the OCC correctly interpreted its own regulation or whether that review lies within the exclusive jurisdiction of the federal courts pursuant to the Administrative Procedures Act,” id., at 1 (citations omitted).

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Posted On: July 11, 2006 by Michael J. Hassen Email This Post

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WFS Financial v. Superior Court: Federal Home Owners' Loan Act (HOLA) Preempts California Automobile Sales Finance Act California Court Holds

California Appellate Court Agrees With Defense And Dismisses Lawsuit Against Lender Based on Federal Preemption: Class Action Defense Issues

WFS Financial and its subsidiary are federal savings associations that operate under the federal HOLA (Home Owners' Loan Act), 12 U.S.C. §§ 1461 et seq. A car dealer assigned WFS a motor vehicle loan and the borrower defaulted: "WFS repossessed the vehicle, gave notice of its intent to dispose of the vehicle by private sale, sold the vehicle, and filed suit against [the borrower]for the deficiency between the sale price and remaining balance due, including various costs and fees." WFS Financial, Inc. v. Superior Court, 140 Cal.App.4th 637, 44 Cal.Rptr.3d 561 (Cal.App. 2006). The borrower cross-complained, alleging that WFS failed to comply with California's Rees-Levering Automobile Sales Finance Act, California Civil Code, §§ 2981 et seq., and included an unfair business practice claim under California Unfair Competition Law (UCL), California Business & Professions Code, §§ 17200 et seq., based on the alleged violations of Rees-Levering. Id., at 563-64. In defense, WFS demurred, arguing that HOLA preempted Rees-Levering. The trial court disagree and overruled the demurrer, and WFS sought a petition for writ of mandate from the California Court of Appeal.. Id., at 564.

Before agreeing with the defense, the appellate court set forth a detailed summary of HOLA, the Federal Home Loan Bank Board (FHLBB) that originally regulated federal savings and loan associations, and FHLBB's replacement by the Office of Thrift Supervision (OTS). Id., at 565-68. The Court highlighted evidence from numerous sources that Congress intended HOLA to preempt state laws and regulations, concluding:

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Posted On: July 11, 2006 by Michael J. Hassen Email This Post

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UC Irvine Settles Lawsuit Under Willed Body Program: Class Action And Individual Actions Remain Pending For Defense

Defense Opts to Settle Rather Than Take First Case to Trial

Christian Berthelsen of the Los Angeles Times reports today that defense attorneys for the University of California at Irvine have settled what "would have been the first lawsuit to go to jury trial" arising out of its Willed Body Program: a class action defense must still be mounted, and dozens of individual lawsuits remain pending. The lawsuit alleged that rather than using bodies donated to the University for research, body parts were sold. Berthelsen reports that a University investigation into the Willed Body Program - precipitated by numerous complaints - revealed that 320 of the 441 cadavers researched "could not be identified or tracked." A defense lawyer is quoted as saying that the University is "happy to resolve the matter": whether this settlement presages settlement of the class action or other individual claims remains to be seen.

Berthelsen's article, entitled "Family Cadaver Lawsuit is Settled," may be found in the California Metro section of the July 11, 2006 Los Angeles Times.

Posted On: July 11, 2006 by Michael J. Hassen Email This Post

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UC Irvine Settles Lawsuit Under Willed Body Program: Class Action And Individual Actions Remain Pending For Defense

Defense Opts to Settle Rather Than Take First Case to Trial

Christian Berthelsen of the Los Angeles Times reports today that defense attorneys for the University of California at Irvine have settled what "would have been the first lawsuit to go to jury trial" arising out of its Willed Body Program: a class action defense must still be mounted, and dozens of individual lawsuits remain pending. The lawsuit alleged that rather than using bodies donated to the University for research, body parts were sold. Berthelsen reports that a University investigation into the Willed Body Program - precipitated by numerous complaints - revealed that 320 of the 441 cadavers researched "could not be identified or tracked." A defense lawyer is quoted as saying that the University is "happy to resolve the matter": whether this settlement presages settlement of the class action or other individual claims remains to be seen.

Berthelsen's article, entitled "Family Cadaver Lawsuit is Settled," may be found in the California Metro section of the July 11, 2006 Los Angeles Times.

Posted On: July 10, 2006 by Michael J. Hassen Email This Post

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Merck Must Prepare State And Federal Class Action Defense Against New Lawsuits Involving Fosamax

Plaintiff Class Action Lawyers Again Set Sights On Pharmaceutical Giant, Still in Defense Mode on Vioxx

Los Angeles Times reporter Molly Selvin believes pharmaceutical giant Merck & Co. is seeing the beginning of a new wave of class action litigation. Merck is already dealing with the near-daily filing of class action lawsuits involving pain reliever Vioxx. See, e.g., International Union of Operating Engineers Local #68 Welfare Fund v. Merck & Co., Inc., 894 A.2d 1136 (N.J.Super.A.D. 2006) (affirming certification of class action). Now, Molly Selvin reports, it is also "fielding the first of what could be another wave of lawsuits involving Fosamax, its second-biggest seller."

Fosamax is an osteoporosis drug. As Selvin explains, "Reports in the last few years have linked Fosamax and similar drugs, known as bisphosphonates, to a serious side effect in which the jawbone partially crumbles and dies." The actual rate of incidence of this side effect, known as "osteonecrosis," is quite small; in fact, according to Merck, clinical trials involving 17,000 patients revealed no evidence of osteonecrosis. Further, no one appears to dispute the substantial benefit the drug provides for the vast majority of its users. Selvin states "Fosamax is probably the best-known brand-name drug for preventing hip fractures and deteriorating bones that often destroy the quality of life for older women." But that hasn't dented the advertising campaign being waged by plaintiff class action attorneys. Merck's defense to these class action lawsuits will be interesting to follow, particularly since Merck reports that the Fosamax label was revised in July 2005 to warn about the risk of osteonecrosis.

Selvin's article, entitled "Lawyers Gear Up To Attack Fosamax," may be found in the July 10, 2006 edition of the Los Angeles Times.

Posted On: July 10, 2006 by Michael J. Hassen Email This Post

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Merck Must Prepare State And Federal Class Action Defense Against New Lawsuits Involving Fosamax

Plaintiff Class Action Lawyers Again Set Sights On Pharmaceutical Giant, Still in Defense Mode on Vioxx

Los Angeles Times reporter Molly Selvin believes pharmaceutical giant Merck & Co. is seeing the beginning of a new wave of class action litigation. Merck is already dealing with the near-daily filing of class action lawsuits involving pain reliever Vioxx. See, e.g., International Union of Operating Engineers Local #68 Welfare Fund v. Merck & Co., Inc., 894 A.2d 1136 (N.J.Super.A.D. 2006) (affirming certification of class action). Now, Molly Selvin reports, it is also "fielding the first of what could be another wave of lawsuits involving Fosamax, its second-biggest seller."

Fosamax is an osteoporosis drug. As Selvin explains, "Reports in the last few years have linked Fosamax and similar drugs, known as bisphosphonates, to a serious side effect in which the jawbone partially crumbles and dies." The actual rate of incidence of this side effect, known as "osteonecrosis," is quite small; in fact, according to Merck, clinical trials involving 17,000 patients revealed no evidence of osteonecrosis. Further, no one appears to dispute the substantial benefit the drug provides for the vast majority of its users. Selvin states "Fosamax is probably the best-known brand-name drug for preventing hip fractures and deteriorating bones that often destroy the quality of life for older women." But that hasn't dented the advertising campaign being waged by plaintiff class action attorneys. Merck's defense to these class action lawsuits will be interesting to follow, particularly since Merck reports that the Fosamax label was revised in July 2005 to warn about the risk of osteonecrosis.

Selvin's article, entitled "Lawyers Gear Up To Attack Fosamax," may be found in the July 10, 2006 edition of the Los Angeles Times.

Posted On: July 8, 2006 by Michael J. Hassen Email This Post

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Prediction Of A Class Action Defense Lawyer: Class Action Test Cases Alleging "Unlawful" Exposure To Secondhand Cigarette Smoke On The Horizon In California

On June 27, 2006, U.S. Surgeon General Richard H. Carmona released a mammoth report on secondhand cigarette smoke that is likely to benefit the class action plaintiff lawyers far more than the children the report seeks to protect. The report - entitled, "The Health Consequences of Involuntary Exposure to Tobacco Smoke" - spans more than 700 hundreds pages with exhibits, and provides a comprehensive analysis of the health risks associated with "passive" smoking, or in the words of the report, "involuntary smoking." Those risks are substantial, increasing the risk of developing heart disease and lung cancer by an estimated 25-30% and 20-30%, respectively. The risk to infants and children are even more substantial, and is now known to be a cause of SIDS (sudden infant death syndrome), respiratory problems, including asthma, and ear infections in that group. And the risks are unavoidable: the Surgeon General concludes that there is no "risk-free" level of exposure to secondhand smoke; even brief exposure immediately effects the cardiovascular system adversely.

California state and federal court class action defense attorneys should anticipate that the report is likely to lead to class action test cases, particularly in light of California's act of becoming the first state to declare secondhand smoke a "toxic air contaminant." On January 26, 2006, the California Environmental Protection Agency announced, "Today the California Air Resources Board (ARB) identified environmental tobacco smoke (ETS), or second-hand smoke, as a Toxic Air Contaminant (TAC). ETS is now formally identified as an airborne toxic substance that may cause and/or contribute to death or serious illness. ARB's action to list ETS as a TAC was based on a comprehensive report on exposure and health effects of ETS." Now that the U.S. Surgeon General has announced that there is no safe level for exposure to secondhand smoke, and has confirmed in a comprehensive report the health risks associated with exposure to secondhand smoke, class action plaintiff lawyers are likely to test the waters on new and novel theories.

In part this prediction is based on experience: California class action plaintiff lawyers have already threatened to sue banks, property managers and property owners for "wrongfully" exposing customers to the secondhand smoke of other customers while using or standing in line to use bank ATM machines, as well as near entrances to banks. The California Attorney General has weighed on that subject, warning at least one plaintiffs' lawyer to consider carefully before filing such a lawsuit. The author predicts that it will not be long before a plaintiffs' lawyer seeks to use the Surgeon General's report as the foundation in a class action lawsuit. As a class action defense attorney, the author sincerely hopes that he is wrong. Only time will tell.

Download California Attorney General Letter

Posted On: July 8, 2006 by Michael J. Hassen Email This Post

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Employment Law Class Action Filings Again Lead Cases Confronted By California Federal And State Defense Attorneys

For the California federal and state defense lawyer, we again provide an unofficial summary of recent class action filings in California, in the hope that it will assist California class action defense attorneys anticipate claims against which they may have to defend. The following is a summary of legal categories for class actions filed in California state and federal courts from June 30 - July 6, 2006, in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that boast 10% or more of the class action filings during the relevant timeframe. Approximately 32 class action lawsuits were filed in California during that time period, of which 8 involved employment law claims (25%). Class action defense attorneys also will face 6 new antitrust cases (19%), of which 4 are additional “dog pile” lawsuits against British Airways for alleged price fixing, and an additional 4 of the class action filings (13%) alleged unfair business practices.

Posted On: July 7, 2006 by Michael J. Hassen Email This Post

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Engle v. Liggett Group: Defense Persuades Florida Supreme Court To Decertify Class Action Against Tobacco Company And Set Aside $145 Billion Punitive Damage Award As Excessive

Successful Appellate Defense of Class Action Case Still Permits Individual Lawsuits to be Filed, and Florida Supreme Court Holds that Several Jury Findings Against the Tobacco Companies Still Stand

In a tremendous victory for the tobacco industry defense, the Florida Supreme Court decertified a class action and set aside a $145 billion punitive damage award as excessive. Engle v. Liggett Group, ___ So.2d ___, Case No. SC03-1856 (July 6, 2006). A nationwide class action had been certified almost a dozen years ago - on October 31, 1994 - on behalf of smokers and their survivors seeking compensatory and punitive damages for injuries allegedly caused by smoking. survivors, who have suffered, presently suffer or who have died from diseases and medical conditions caused by their addiction to cigarettes that contain nicotine." Slip Opn., at 7. Following an interlocutory appeal filed by the defense, the Florida Court of Appeal affirmed class certification but reduced the scope of the class action to "Florida citizens and residents." See R.J. Reynolds Tobacco Co. v. Engle, 672 So.2d 39, 42 (Fla.App. 1996). The ensuing trial resulted in a jury verdict awarding the named plaintiffs a total of $12.7 million dollars in compensatory damages, and the entire class $145 billion in punitive damages. Slip Opn., at 9.

With respect to the punitive damage award, the Supreme Court held that the trial court's procedure was fatally flawed. The trial proceeded as follows: Phase I - consisting of the trial on the class action claims for liability and entitlement to punitive damages; Phase II-A - consisting of the trial on the individual class representative's claims for compensatory damages; and Phase II-B - consisting of a jury trial on the total award of punitive damages payable to the class as a whole. Slip Opn., at 8-9. Phase III (not yet held) would involve the selection a new juries "to decide the individual liability and compensatory damages claims for each class member," following which "the trial court would divide the punitive damages previously determined equally among any successful class members." Id., at 10. The Supreme Court rejected this procedure, as well as the size of the award, explaining at page 19:

Continue reading "Engle v. Liggett Group: Defense Persuades Florida Supreme Court To Decertify Class Action Against Tobacco Company And Set Aside $145 Billion Punitive Damage Award As Excessive" »

Posted On: July 7, 2006 by Michael J. Hassen Email This Post

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Hapin v. Arrow Financial: Defense Motion to Dismiss FDCPA Class Action Granted Because Debt Collector Letter Not Misleading California Court Holds

California Federal Court Finds Letter Referring to Debtor as “Customer” and to Debt Collector as “Account Representative,” and Offering to “Help” Resolve Debt, Not Misleading Under Fair Debt Collection Practices Act, But Allegation That Debt Collector Sought to Recover Excess Interest Sufficient to Survive Motion to Dismiss

In January 2006, a putative class action was filed in California federal court against Arrow Financial Services alleging violations of the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. (FDCPA), and its California equivalent, California Civil Code, §§1788 et seq. Hapin v. Arrow Fin. Serv., 428 F.Supp.2d 1057, 1059 (N.D. Cal. 2006). Plaintiff’s lawyer asserted that the debt collector letter from Arrow was “false, deceptive, and misleading” in that it (1) described plaintiff as a “customer,” (2) characterized the debt collector as an “account representative,” and (3) offered to “‘help Plaintiff regain his financial future . . . [and] by the false . . . characterization of debt as helping “regain his financial future.”’” Id. The complaint also alleged that Arrow sought to collect excessive interest, id. Defense attorneys filed a motion to dismiss the class action complaint, which the California federal court granted in part and denied in part.

Continue reading "Hapin v. Arrow Financial: Defense Motion to Dismiss FDCPA Class Action Granted Because Debt Collector Letter Not Misleading California Court Holds" »

Posted On: July 6, 2006 by Michael J. Hassen Email This Post

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Class Action Filings: California Defense Attorneys Confront More Employment Class Actions

In an effort to assist California class action defense attorneys anticipate claims against which they may have to defend, we provide an unofficial summary of legal categories for class actions filed in California state and federal courts from June 22 - June 29, 2006, in the Los Angeles, San Francisco, San Jose, Sacramento, San Diego, San Mateo, Oakland/Alameda and Orange County areas. We include only those categories that boast 10% or more of the class action filings during the relevant timeframe. Approximately 52 class action lawsuits were filed in California during that time period, of which 16 involved employment law claims (more than 30%). Class action defense attorneys will face 9 “dog pile” lawsuits against British Airways (17%) for alleged price fixing, and an additional 6 of the class action filings (11%) alleged securities violations. Finally, 5 of the class action cases alleged violations of the Consumer Legal Remedies Act (CLRA), California Civil Code §§ 1750 et seq.

Posted On: July 4, 2006 by Michael J. Hassen Email This Post

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Senate Closer To Vote On Bill Further Expanding Federal Court Jurisdiction In Defense Of Class Action Cases

The Associated Press reports that the Senate is nearing a vote on legislation that would further expand federal court jurisdiction over class action lawsuits. Last year, Congress enacted CAFA, the Class Action Fairness Act of 2005, which in part significantly expanded access to federal courts in defense of class actions. The Senate bill would further expand such access. Because defense attorneys often remove class actions to federal court whenever possible, class action defense attorneys will be very interested in the progress of this pending legislation.

07-04 22:36

Posted On: July 3, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases: Federal Claims Court Certifies Class Action By Nurse Care Managers Against VHA For Failure To Pay Overtime: Defense of Class Actions Issues

Despite “Significant Differences” Between Rule 23 and RCFC 23 (Rules of the United States Court of Federal Claims), and Despite Rarity of Class Action Certification, Class Actions Are Not Disfavored in Court of Federal Claims

On March 31, 2006, a United States Court of Federal Claims certified a class action under Rules of the United States Court of Federal Claims (RCFC) 23. Filosa v. United States, 70 Fed.Cl. 609 (2006). Though RCFC 23 “is modeled largely” on class action certification under Rule 23, “‘there are significant differences.’” Id., at 610 (quoting RCFC 23, Rules Comm. Note). Though differences are outside the scope of this article. The ruling is noteworthy, however, because it represents only the second time that a class action has been certified by a Court of Federal Claims since RCFC 23 was “completely rewritten” in May 2002. Id. But while recognizing the rarity of the event, the court insisted, “class actions are not disfavored by the united States Court of Federal Claims.” Id., at 611 (citation omitted).

Filosa is a class action brought by nurse care managers employed by the United States Department of Veterans Affairs, Veterans Health Administration (VHA). Filosa, at 611. They provide services to veterans under the MHICM (Mental Health Intensive Case Management Service) Program, which requires that they “field calls that are received [from veterans] on weekends, holidays, evenings, or nights.” Id. at 612. The class action alleges that the nurses failed to receive overtime pay. The court’s opinion provides a detailed analysis of its consideration of numerosity, commonality, predominance, typicality, adequacy of representation, and superiority, and is well worth reading. Defense attorneys are reminded, however, that the discussion is under RCFC 23, not Rule 23. See Filosa, at 611 n.1 (summarizing some of the differences between the rules).

Download PDF file of Filosa v. United States

Posted On: June 29, 2006 by Michael J. Hassen Email This Post

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Verizon Implements New Policies In Face Of Defense Of California Class Action Regarding Cancellation Fees

Both the Los Angeles Times and Yuki Noguchi of the Washington Post report today on yesterday's announcement by Verizon that it will soon implement a fundamental change in its cancellation fee policy for cellular telephone subscribers. In the face of a California class action that the Times reports seeks "to recover early cancellation fees from Verizon Wireless and Sprint Nextel," the company will calculate the early termination fee based on the proportional amount of time remaining on the subscription agreement.

Verizon's defense against this California class action is not a lone event. Similar class actions are pending in several states, the Washington Post reports. In fact, the Post reports that early termination fees ranks third on the list of complaints against cellular telephone companies, and the Los Angeles Times quotes Verizon CEO Denny Strigl as identifying this issue as "the single largest [complaint] that our customers have." As Mr. Strigl candidly admitted, "It's a legitimate complaint: If they leave in month one or month 23, they pay the same charge."

Verizon also will reportedly begin offering to existing customers the same discount for new handsets that it offers to new subscribers.

Noguchi's article, entitled "Verizon to Reduce Contract Termination Fee," may be found in the June 29, 2006 edition of the Washington Post. The Los Angeles Times article, entitled "Verizon Wireless to Prorate Cancellation Fees," may be found in the business section of the June 29, 2006, edition of the Los Angeles Times.

Posted On: June 29, 2006 by Michael J. Hassen Email This Post

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Motions to Defeat Diversity Jurisdiction: Class Action Defense Issues

28 U.S.C. § 1447(e)

Once a class action has been removed to federal court based on diversity jurisdiction, a plaintiff may seek to destroy diversity by naming additional defendants. Any such attempt would fall squarely within the ambit of 28 U.S.C. § 1447(e), which provides as follows:

If after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction, the court may deny joinder, or permit joinder and remand the action to the State court.

The plain language of the statute addresses the two most obvious questions. First, must the district court allow a plaintiff to join additional party-defendants?The answer is clearly "no" - Section 1447(e) expressly states, "the court may deny joinder" (italics added).

Second, must the district court remand the case to state court if it grants leave to add non-diverse party-defendants? Again, the answer is clear - "yes."As the Third Circuit observed, "Hence, a district court can sometimes, after suit is filed, permit the destruction of subject matter jurisdiction."Kabakjian v. United States, 267 F.3d 208, 212 (3rd Cir. 2001).

The Ninth Circuit addressed a situation where the district court granted joinder of non-diverse parties but did not remand the matter.See Morris v. Princess Cruises, Inc., 236 F.3d 1061, 1068 (9th Cir. 2001). Based on the particular circumstances of that case - viz., the existence of original jurisdiction over the matter had it been filed initially in federal court - the Ninth Circuit affirmed. The language of the opinion is, however, instructive:

Once removal has occurred, the district court has two options in dealing with an attempt to join a non-diverse party. 28 U.S.C. § 1447(e) provides that "[i]f after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject matter jurisdiction, the court may deny joinder, or permit joinder and remand the action to the State court." Newcombe v. Adolf Coors Co., 157 F.3d 686, 691 (9th Cir. 1998). Here, the district court did neither, permitting joinder of the non-diverse parties while retaining jurisdiction over the action. If diversity were the only basis for the court's subject matter jurisdiction, joinder of the non-diverse Insurers would have divested the court of jurisdiction.Desert Empire Bank v. Ins. Co. of N. Am., 623 F.2d 1371, 1374, 1377 (9th Cir. 1980) (permissive joinder of nondiverse defendant following removal to federal court divested court of subject matter jurisdiction).

Morris v. Princess Cruises, at 1068 (italics added).

In sum, Section 1447(e) unambiguously gives the district court only two options when a plaintiff seeks to add a non-diverse party-defendant following removal of the case to federal court:"deny joinder, or permit joinder and remand the action to the State court" (italics added). The court is without discretion to act otherwise.If diversity is destroyed, the case must be remanded unless an independent basis for federal court jurisdiction still exists.

Posted On: June 28, 2006 by Michael J. Hassen Email This Post

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Federal Judge Attacks Thompson Memo Cut-Off Of Defense Lawyer Fees - Indicated Class Action Law Firm Applauds Ruling

In a prior article, we discussed defense lawyer concerns about federal government efforts to require companies to divulge communications with its attorneys. That effort arises from federal guidelines contained in what is known as the Thompson memorandum, written in 2003. Another guideline suggests that corporate payment of lawyer fees for the criminal defense of employees will constitute a "black mark" against the company and may lead to an indictment. Lynnley Browning of the New York Times reports that yesterday a federal judge issued "the first major criticism from the bench" against tactics used by prosecutors and the Thompson memo. As Browning concisely summarized the issue:

Prosecutors have argued that the Thompson memorandum guidelines are simply factors that prosecutors must consider in evaluating a company's cooperation and are not ironclad requirements. Defense lawyers and corporate lawyers, however, contend that the memorandum is being used as a club to bludgeon companies into disclosing legal secrets, cutting off legal fees and showing other signs of cooperation to avoid being indicted.

In a case concerning the criminal trial of former KPMG employees, a New York federal judge ruled that coercing a company into not paying lawyer fees for the defense of employees violates the employees' constitutional rights. KPMG initially capped attorneys fees at $400,000 and then stopped paying defense costs entirely "to avert an indictment," Browning reports. She adds, "KPMG is regarded as a textbook example of how firms can avoid indictment by cooperating with prosecutors, in part by firing employees suspected of wrongdoing - even before they are found guilty - and by cutting off legal fees." The article quotes indicted class action law firm Milberg Weiss as stating, "We hope that courts will continue to hold the Justice Department accountable for such overreaching use of the Thompson memorandum." Little is known of the class action firm's pre-indictment communications with federal investigators, but in its defense, its attorneys may reveal details of the length investigation that preceding the criminal charges.

The Browning article, entitled "U.S. Tactic On KPMG Questioned," may be found in the June 28, 2006, edition of the New York Times. It is well worth reading.

Posted On: June 28, 2006 by Michael J. Hassen Email This Post

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Experian v. Superior Court: Successful Defense of Class Certification Bars Letter to Potential Class Action Members Informing Them Of Their Possible Legal Rights California Court Holds

After a California state court denied a motion for class certification in a putative class action brought under the Consumer Credit Reporting Agencies Act (CCRAA), California Civil Code §§ 1785.1 et seq., plaintiff’s lawyer convinced the trial judge to allow communication by letter with potential class members that advised them of their potential legal rights against the defendant in the class action and sought their cooperation in pursuing the plaintiff’s damage claim in her lawsuit. Experian Information Solutions, Inc. v. Superior Court, 138 Cal.App.4th 122, 127-29 (Cal.App. 2006). Defendant thus succeeded in its defense of the class action, but the court order opened the floodgates to potential new lawsuits. A California appellate court granted defendant’s petition for writ of mandate and, in an opinion issued on March 30, 2006, held that it is improper for plaintiffs’ attorneys to advise putative class members in class actions that they may have individual claims against the defendant:

After a class-certification motion is denied, can a court order a plaintiff or a neutral third party to send a letter to former potential class members notifying them of possible claims against the defendant? No. There is no legal basis to permit such a communication.

Experian, at 131 (italics added). In so holding, the California appellate court observed, “In non-class action litigation, it is not the court’s role to order notification to third parties of their possible legal claims. . . . Thus, after class certification has been denied by a trial court, court-ordered notifications to former, potential class members that they might have legal claims against a defendant are impermissible.” Id., at 131-32 (citation omitted).

NOTE: The court did permit limited communication for the purpose of obtaining evidence relevant to plaintiff’s individual claim, but the basis for that communication falls outside the scope of this summary.

Download PDF file of Experian v. Superior Court

Posted On: June 27, 2006 by Michael J. Hassen Email This Post

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New York Times Reports Class Action Law Firm And Lawyer Paid “Serial Plaintiff” $1 Million To Serve As Plaintiff

The news continues to go from bad to worse for class action law firm Milberg Weiss and its lawyers indicted on May 18, 2006, on charges that it paid more than $11 million in kickbacks to clients to serve as plaintiffs. According to Julie Creswell and Jonathan Glater of the New York Times, one such plaintiff, Howard J. Vogel, admits in a plea bargain with federal prosecutors that “he and relatives were linchpins in [a] long-running arrangement” that helped class action law firm Milberg Weiss “reap hundreds of millions of dollars as counsel in securities lawsuits.” Vogel reportedly received $1.1 million from the class action firm to serve as plaintiff in a class action against Oxford Health Plans, and served as plaintiff for Milberg Weiss in many other class actions, often illegally receiving up to 14% of the attorney fees awarded to the law firm.

But the proverbial plot thickens with Mr. Vogel’s purported admission that he actually purchased shares of stock in Oxford Health “on the belief that [the company] was on the verge of collapse.” Because a class action plaintiff must have claims that satisfy the commonality and typicality requirements of Rule 23, “speculative investments” – that is, stock purchased in the hope that the share price will fall so that one can sue the company alleging violations of state and federal securities laws – if discovered by the defense would seriously undermine the plaintiff’s ability to obtain certification of a class action.

The article by Creswell and Glater, “For Law Firm, Plaintiff Had Golden Touch,” may be found in the June 6, 2006, New York Times.

Posted On: June 27, 2006 by Michael J. Hassen Email This Post

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Cingular Fails To Stop Three Class Actions From Proceeding In California State Court

The Los Angeles Times recently reported that the efforts of Cingular Wireless to stop three class actions from proceeding in California state court came to an end on June 5, 2006, when the United States Supreme Court refused to grant certiorari in cases involving California court rulings that rejected class action restrictions in arbitration agreements. The rulings permitted plaintiffs to “bypass” arbitration. According to the Los Angeles Times, “The central questions was how much room the federal law [Federal Arbitration Act] leave for states to apply neutral rules such as California’s prohibition on ‘unconscionable’ contracts. The California Supreme Court invoked that doctrine in 2005 to bar waivers of class-action rights in disputes that ‘predictably involve small amounts of damages’ and large numbers of customers.” See Discover Bank v. Superior Court, 36 Cal.4th 148, 162 (Cal. 2005).

The U.S. Supreme Court's decision in this case is not surprising in light of the history of this class action. Plaintiffs' attorneys argued in the California trial court that the class action ban in the arbitration contracts were unconscionable and invalid. On May 18, 2005, the California Court of Appeal for the First District, Division 5, reversed, concluding "that under the facts in the present case the contractual ban on class-wide arbitration is not unduly one-sided, harsh, or in violation of public policy." Parrish v. Cingular Wireless, LLC, 28 Cal.Rptr.3d 802, 805 (Cal.App. 2005). The California Supreme Court granted review and transferred the matter back to the Court of Appeal for reconsideration in light of its then-recent opinion in Discover Bank. On remand, the California appellate court agreed with plaintiffs' attorneys, concluding "that the arbitration clause at issue here prohibiting class-wide arbitration is unconscionable and unenforceable." Parrish v. Cingular Wireless, LLC, 2005 WL 2420719 (Cal.App. 2005), but the opinion was not published. It is exceptionally difficult to persuade the California Supreme Court or the United States Supreme Court to review an appellate decision that is not published.

Nonetheless, the petition generated understandable interest: Though it denied review, the U.S. Supreme Court permitted the Pacific Legal Foundation, the American Bankers Association, the U.S. Chamber of Commerce, and Amazon.com leave to file amici curiae briefs. The scope of FAA is still the subject of considerable debate; Circuit Courts do not agree on whether the right to pursue class actions may be waived as part of an arbitration agreement and, if so, under what circumstances class action waivers are enforceable. While the U. S. Supreme Court refused to hear Cingular’s case, it is only a matter of time before the High Court will accept a case and address these thorny questions.

The article, “High Court Rebuffs Appeal By Cingular,” may be found in the Business Section of the June 6, 2006, Los Angeles Times.

Posted On: June 27, 2006 by Michael J. Hassen Email This Post

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Starbucks Faces California Employment Class Action

Former California Manager Seeks Class Action Status in Lawsuit Alleging Failure to Pay Overtime and Failure to Provide Meal and Rest Breaks

In prior articles, we have discussed the prevalence of class actions against employers alleging labor law violations. These are among the "favorites" of plaintiff class action attorneys. Henry Lee of the San Francisco Chronicle reports today that a putative class action has been filed against Starbucks in federal court by a former manager who worked in two California Starbucks shops. According to the article, this class action follows the settlement of an earlier class action against Starbucks that had alleged the company had misclassified its managers as exempt from overtime. The plaintiff's lawyer claims that the prior class action led to a change in company policy so that Starbucks' managers are now paid an hourly wage. The current class action seeks damages for allegedly unpaid overtime and unpaid meal and rest periods. Mr. Lee's article, "Starbucks faces suit over OT," may be found in today's business section of the San Francisco Chronicle.

Posted On: June 27, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases–Kristian v. Comcast: Class Action Waiver In Arbitration Clause Unenforceable

Arbitration Agreements Retroactive and Enforceable But Class Actions And Attorney Fees Waiver Unenforceable First Circuit Holds

Circuit Courts of Appeal continue to struggle with whether class action waivers in arbitration agreements are enforceable. On April 20, 2006, the First Circuit addressed that issue, and several others, in Kristian v. Comcast Corp., 446 F.3d 25 (1st Cir. 2006). Subscribers filed putative class actions against cable TV giant Comcast alleging violations of state and federal antitrust laws. Comcast moved to compel arbitration based on an arbitration clause first added to the subscription service agreements in 2001. This motion was critical to Comcast's defense of the class action for several reasons, chief among them that the arbitration agreements barred class action arbitration and barred recovery of attorney fees and costs. The district court concluded that the arbitration provisions did not apply retroactively and refused to compel arbitration. Id., at 29-30. The First Circuit Court of Appeals reversed, but severed the class action waiver provision, as well as the provision barring recovery of attorney fees and costs, holding that those provisions "prevent the vindication of statutory rights under state and federal law." Id., at 29. Kristian spans 40 pages in the Official Reports and so cannot be explored in detail here. It will be discussed at length in a separate article concerning the enforceability of class action waivers in arbitration agreements. We provide here but a brief overview of the highlights of Kristian.

* Comcast provided adequate notice of the arbitration agreements and the provision waiving class actions, provided as a "billing stuffer" with the subscribers' November 2001 invoices, Kristian, at 30, 36-37. The arbitration provision - including the waiver of class action claims - was set forth in bold face and capital letters, id., at 31-32.

* While none of the plaintiffs' initial service agreements contained arbitration clauses or the class action waivers, the arbitration agreements nonetheless applied retroactively. Id., at 30, 31-36.

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Posted On: June 26, 2006 by Michael J. Hassen Email This Post

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Verizon Pays Record Amount To Settle Pregnancy Discrimination Class Action

The defense of class actions can span several years, and generally class action complaints allege damages dating back many years. That combination played a part in the record settlement of a pregnancy discrimination class action lawsuit, according to Amy Joyce of the Washington Post. By way of background, Nynex Corporation was formed in 1984 to provide telephone service to the states of Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The company acquired Bell Atlantic in 1997 and adopted its name. Three years later, in 2000, Bell Atlantic acquired GTE and changed its name to Verizon Communications. Verizon’s predecessors, Nynex and Bell Atlantic, “were accused of violating federal law by denying women pension and other benefit accruals when they spent time on pregnancy or maternity leave,” Ms. Joyce reports. Verizon recently agreed to pay almost $49 million to more than 12,000 former and current female employees to settle the landmark case.

The Washington Post reports that the settlement was consummated in 2002, but that final figures were not available until the EEOC (Equal Employment Opportunity Commission) had “completed its projects of how much would be paid in future benefits.” The article by Amy Joyce, “Record $48.9 Million Set in Maternal Bias Suit Verizon Inherited,” may be found in the June 6, 2006, Washington Post.

Posted On: June 26, 2006 by Michael J. Hassen Email This Post

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Melena v. Anheuser-Busch -- Class Action Defense Issues

Employment Arbitration Agreement Under FAA (Federal Arbitration Act) Enforceable By Employer Illinois Supreme Court Holds

As discussed in a separate article, Circuit Courts of Appeal and state courts do not agree on the enforceability of arbitration agreements in employment contracts. This issue may be of critical importance in the defense of class actions, because a class action waiver in an employment arbitration agreement cannot possible be enforceable if the court would refuse to enforce the arbitral forum even without a class action restriction. On March 23, 2006, in an opinion that should have direct and positive impact in the defense of class action waivers in arbitration agreements in the state, the Illinois Supreme Court cast its vote on the issue, holding that under the FAA (Federal Arbitration Act, 9 U.S.C. § 1 et seq. (1994)), employment arbitration agreements are enforceable under “principles of fundamental contract law because we believe that approach is more faithful to the FAA.” Melena v. Anheuser-Busch, Inc., 847 N.E.2d 99, 107 (Ill. 2006).

In Melena, Anheuser-Busch hired plaintiff in February 1999. One year later, it mailed to employees a letter announcing a new “Dispute Resolution Program” that included a requirement for arbitration under the FAA. Employees were informed that “’by continuing or accepting an offer of employment’ with Anheuser-Busch, all employees to whom the policy was applicable ‘agree as a condition of employment to submit all covered claims to the dispute resolution program.’” 847 N.E.2d at 101. Plaintiff was injured in September 2002, and fired in March 2003. She filed suit against Anheuser-Busch in state court in May 2003. ANHEUSER-BUSCH moved to compel arbitration, but the trial court denied the motion without explanation. The appellate court affirmed, concluding that “’even if the plaintiff entered into the agreement knowingly, she did not do so voluntarily,’” and expressing doubt “about whether an agreement to arbitrate, offered as a condition of employment, ‘is ever voluntary.’” Id., at 102 (quoting appellate court opinion).

The Illinois Supreme Court reversed, holding: “In our view, the FAA’s plain language makes clear that arbitration agreements are enforceable except for state-law grounds for ordinary contract revocation.” 847 N.E.2d at 107 (italics added, citations omitted). Importantly, the Illinois Supreme Court did not make any distinction between arbitration agreements in an employment context or in a commercial setting, and did not suggest that a class action waiver provision would be interpreted under different contract principles.

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Posted On: June 25, 2006 by Michael J. Hassen Email This Post

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British Airways and Virgin Atlantic Hit With Class Action In New York Alleging "Price Fixing": Defense of Class Actions

Dominic O’Connell and Dominic Rushe of The Sunday Times reported today that a putative class action has been filed in New York against British Airways and Virgin Atlantic alleging a price-fixing conspiracy. The lawsuit reportedly was filed June 23 by Cohen, Milstein, Hausfeld & Toll, and alleges that "[British Airways and Virgin Atlantic] implemented their agreement by exchanging information in secret . . . communications."

The article states that British Airways revealed last week that the Office of Fair Trading and the American Department of Justice was investigating charges of price-fixing related to fuel surcharges on long-haul flights, and reports that BA placed two senior executives on leave during the investigation. O'Connell's and Rushe's article, "BA and Virgin hit by US class-action suit over ‘price fixing’," may be found in the June 25, 2006, edition of The Sunday Times.

Posted On: June 24, 2006 by Michael J. Hassen Email This Post

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Canadian Court Certifies Class Action Against Condominium Developer: Defense of Class Actions

Condo Buyers Allowed to Pursue Class Action Against Developer for Understating Common Expenses

The Toronto Star reports this morning that an Ontario judge has certified a class action brought by homeowners in a condominium development alleging that the developer "significantly understated" the "total funds required" to cover the project's common expenses for the first year to be $413,000. This amount proved woefully inadequate. In its second year of operation, the project approved a budget reflecting a 62% increase in common expenses, but still fell $48,000 short of meeting expenses. While Canadian law governing class actions differs from that in the United States, for our purposes the important point is that a putative class action was filed against the developer, alleging that the sales materials and disclosure statements were "inaccurate, false, deceptive and misleading."

Bob Aaron, a Toronto real estate lawyer, reports that "the developer was warned in writing by the property manger 'that unless drastic adjustments are made, the second-year budget will likely be doubled.'" Mr. Aaron's article is entitled, "Condo buyers' class-action suit bears watching" and may be found in the June 24, 2006 edition of the Toronto Star.

Note: Coincidentally, the leading condo hotel lawyer in the United States has worked on more than 60 condo hotel projects all over the world. He is Jim Butler of Jeffer, Mangels, Butler & Marmaro. Anyone developing or financing a condo hotel-whether ground up construction or conversion-should contact Jim Butler to discuss the project. The Global Hospitality Group chaired by Jim Butler has assisted clients with more than $40 billion of hotel transactions involving more than 1,000 properties around the globe.

Posted On: June 23, 2006 by Michael J. Hassen Email This Post

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Burlington Northern v. White -- Class Action Defense Issues

Supreme Court Expands Breadth of Potential Employee Claims for Alleged Retaliation

In a prior article on class actions and class action defense, we discussed the rise of employment law class actions. One area that had not yet been widely subject to class actions consists of alleged retaliation claims. Every employment law practioner knows that Title VII of the Civil Rights Act of 1964 prohibits discrimination based on "race, color, religion, sex, or national origin," 42 U.S.C. § 2000e-2(a). To protect employees who seek to establish such employment discrimination, Congress included an "anti-retaliation" provision in Title VII that prohibits discrimination against one who has "made a charge, testified, assisted, or participated" in a Title VII matter, 42 U.S.C. § 2000e-3(a). By their nature, such claims are "class action resistant" because they are based on the case-by-case treatment of the employee and the specific conduct against which the employer alleges seeks to retaliate. That may change.

On June 22, 2006, the United States Supreme Court fundamentally altered the landscape of employment law retaliation claims. See Burlington Northern & Santa Fe Railway Co. v. White, 548 U.S. ___, ___ S.Ct. ___ (2006). Title VII retaliation claims require proof of an "adverse employment action" but courts have disagreed on what satisfies this requirement. The Supreme Court summarized the issues presented and its answers as follows:

The Courts of Appeals have come to different conclusions about the scope of the Act’s anti-retaliation provision, particularly the reach of its phrase “discriminate against.” Does that provision confine actionable retaliation to activity that affects the terms and conditions of employment? And how harmful must the adverse actions be to fall within its scope?

We conclude that the anti-retaliation provision does not confine the actions and harms it forbids to those that are related to employment or occur at the workplace. We also conclude that the provision covers those (and only those)employer actions that would have been materially adverse to a reasonable employee or job applicant. In the present context that means that the employer’s actions must be harmful to the point that they could well dissuade a reasonable worker from making or supporting a charge of discrimination. Slip Opn., at 1-2.

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Posted On: June 23, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases--Lindsay v. GEICO: District Court Erred In Refusing To Exercise Supplemental Jurisdiction Over State Law Claimants Who Did Not Opt In to FLSA Class Action

Certification of Class Actions and Supplemental Jurisdiction - District Court Improperly Denied Class Certification of State Law Claimants Who Did Not Opt In to Federal Class Action Under FLSA (Fair Labor Standards Act) D.C. Circuit Holds

The FLSA (Fair Labor Standards Act) requires that potential class members affirmatively opt in to class actions based on the overtime pay provision. See 29 U.S.C. §§ 207, 216(b). Certain class actions under Federal Rules of Civil Procedure Rule 23, however, require that potential class members opt out of class action cases. See Fed.R.Civ.Proc., Rule 23(b)(3), (c)(2)(B). On May 26, 2006, the D.C. Circuit Court of Appeals held as a matter of first impression that the district court erred in refusing to exercise supplemental jurisdiction over the claim of, and in denying class action certification to, those state law class action claimants who did not also opt in to a FLSA overtime class action. Lindsay v. Government Employees Ins. Co., 448 F.3d 416 (D.C. Cir. 2006).

Plaintiffs filed a putative class action alleging that GEICO willfully misclassified certain employees as "administrative" in order to avoid paying them overtime in violation of FLSA, 29 U.S.C. § 207(a), and sought certification to pursue an opt in class action under FLSA. Lindsay, at 418. Plaintiffs also alleged that GEICO's conduct violated New York's Minimum Wage Act, N.Y. Labor Law, §§ 650 et seq., and sought certification to pursue an opt out class action pursuant to Rule 23. Id. As the D.C. Circuit summarized at page 418:

The district court denied certification of the state law class, concluding that the FLSA class certification procedure requiring all class members to affirmatively opt in precluded it from exercising supplemental jurisdiction over those state law claimants who did not affirmatively join the FLSA claim. We disagree and therefore reverse the order denying certification and remand to the district court.

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Posted On: June 21, 2006 by Michael J. Hassen Email This Post

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Mirfasihi v. Fleet Mortgage -- Defense of Class Action Cases

Class Action Settlement Approval of Nationwide Class Action Reversed and Remanded for District Court Failure to Analyze Value of Class Claims Under the State Laws of Each Applicable Jurisdiction Seventh Circuit Holds

On June 19, 2006, the Seventh Circuit Court of Appeals considered for the second time a proposed class action settlement of a nationwide class action against Fleet Mortgage brought under the Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA) and various state laws. Mirfasihi v. Fleet Mortgage Corp., ___ F.3d ___, 2006 WL 1667802 (7th Cir. 2006) (“Fleet II”). As explained below, the class action involved two classes: a “telemarketing class,” and an “information-sharing class.” The Seventh Circuit previously reversed district court approval of a proposed settlement of the class action claims because “the district court failed to consider adequately the value of the claims of the so-called ‘information-sharing class’ (a class of consumers whose privacy interests were purportedly intruded upon, but who did not suffer any out-of-pocket damages).” Slip Opn., at 1-2 (citing Mirfasihi v. Fleet Mortgage Corp., 356 F.3d 781 (7th Cir. 2004) (“Fleet I”).

The class action involved claims that Fleet sold mortgage information to third-party telemarketers, and that Fleet “was an active collaborator in drafting the script that the telemarketers used and allowed direct billing of the fees for the telemarketers’ products onto the mortgage bill of its customers, without obtaining pre-approval from customers.” Slip Opn., at 2. The “telemarketing class” consisted of 190,000 people who purchased financial products from the telemarketers; the “information-sharing class” consisted of 1.4 million Fleet borrowers whose information had been sent to telemarketers but who had not purchased any services from them. Id., at 2-3.

The class action settlement approved by the district court in Fleet I provided for payments to the telemarketing class, but the information-sharing class “was left out in the cold and received nothing.” Slip Opn., at 3. (The terms of the class action settlement are detailed in Fleet I and Fleet II; we focus here only on the monetary recovery for each class.) Fleet I reversed the district court’s approval of the class action settlement because “the district court failed to consider with adequate specificity the reasonableness of an entire class receiving a ‘big fat zero’ in the settlement.” Slip Opn., at 4 (citing Fleet I, at 785). “Specifically, the district court did not canvass all potential avenues of recovery to determine whether the information-sharing class’s claims were indeed essentially hopeless (and thus worthless) under the pertinent controlling law.” Slip Opn., at 4.

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Posted On: June 20, 2006 by Michael J. Hassen Email This Post

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Recent Developments In California Class Action Defense

A New Twist On Fair Debt Collection Practices Act Class Actions

California courts have been inundated with class actions alleging violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., and its California equivalent, the Rosenthal Fair Debt Collection Practices Act, California Civil Code § 1788 et seq. While California class action firms originally named the debt collection companies, the lawsuits were soon expanded to include California and out-of-state lawyers and law firms that assisted such debt collection companies in their efforts.

According to a June 20, 2006, press release prepared by the law firm of Brennan, Wiener & Associates of La Crescenta, California, a California putative class action was filed in the Los Angeles Superior Court on behalf of Kenneth Holtzclaw and Shane Satey against Great Seneca Financial Corporation, and against the Maryland law firm of Wolpoff & Abramson. Wolpoff & Abramson, LLP is a national law firm with approximately 850 employees. The firm is noted for its debt collection practice work and its representation of national retail and banking clients. According to the press release, “Wolpoff & Abramson set up Great Seneca just to try to insulate itself from unfair debt collection lawsuits.”

This is not the first time Wolpoff & Abramson has been sued. A computer search and cursory review of those lawsuits suggests that those actions have been less than successful. This does appear to be the first time, however, that an attempt has been made to eradicate the distinction between client and attorney. It will be interesting to see whether discovery turns up any evidence to support the plaintiffs’ bold claim.

Posted On: June 19, 2006 by Michael J. Hassen Email This Post

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Class Action Law Firm Milberg Weiss California Criminal Case Loses Fifth Federal Judge

California Federal Judges Recuse Themselves From Hearing Los Angeles Case

Prior articles have discussed the California criminal case involving the federal indictment leveled against class action law firm Milberg Weiss Bershad & Schulman. Molly Selvin of the Los Angeles Times recently reported that yet another federal judge, U.S. District Court Judge R. Gary Klausner, has recused himself from hearing the case, bringing to five the number of judges who have bowed out.

One immediate impact caused by the successive recusals is the delay in the arraignments of Howard J. Vogel, a retired real estate investor, and Richard Purtich, a California lawyer. Ms. Selvin reports that Howard Vogel will be arraigned on a criminal charge that he received more than $2.4 million in kickbacks from Milberg Weiss, and that Richard Purtich has “agreed to plead guilty to a felony tax charge related to allegations that he funneled money to a Milberg client.”

Ms. Selvin’s article, Milberg Case Hits Delays as Five Judges Withdraw,” may be found in the June 16, 2006, edition of the Los Angeles Times.

Posted On: June 19, 2006 by Michael J. Hassen Email This Post

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Stock Option Awards Scandals: Class Action Defense Issues

California Semiconductor Company In The News

By now, the accounting scandals that have torn apart Wall Street are well known. The litigation fallout has pitted company against accounting firm against law firm, in a never-ending circle of passing the blame. California companies have not been immune; on the contrary, several California companies have been in the throes of such litigation.

Eric Dash of the New York Times reported today on the continuing fight between Micrel Inc., a San Jose, California, company, and its former accounting firm, Deloitte & Touche. According to the article, in 1996 Micrel asked Deloitte & Touche for an opinion on a stock option award plan that would be more fair to new hires – a critical need at a time when high-tech firms were growing by leaps and bounds. Micrel claims that Deloitte approved the program.

Five years later, however, “Deloitte reversed its opinion and urged Micrel to restate its financial reports.” Today, Micrel and Deloitte are still battling in court. Mr. Dash insightfully observes, “The Micrel case and others raise troubling questions about how companies that were pushing the envelope of accounting and tax practice were able to get the blessings of auditors and lawyers. And the widening scandal reveals the extent to which boards of directors, especially the compensation committees that approve option grants, may have failed to do their jobs.”

The legacy of the accounting scandals will consume judicial resources for many years to come. The Micrel program, its well-intended origins and its nascent problems are discussed in Mr. Dash’s article, “Gilded Paychecks: Dating Games Inquiry Into Stock Option Pricing Casts A Wide Net,” printed June 19, 2006, in the New York Times.

Posted On: June 16, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases: Kircher v. Putnam Funds Trust : Remand Of SLUSA Class Action To State Court Not Appealable Supreme Court Holds

Remand to State Court of Case Removed Under SLUSA (Securities Litigation Uniform Standards Act of 1998) Not Appealable U.S. Supreme Court Holds

CAFA (Class Action Fairness Act of 2005) and SLUSA (Securities Litigation Uniform Standards Act of 1998) are discussed in various separate articles. Removal and remand issues also are discussed in various articles, which set forth the general rule recently reiterated by the United States Supreme Court: "28 U.S.C. § 1447(d) limits appellate review of a district court order remanding a case from federal to state court." Kircher v. Putnam Funds Trust, 547 U.S. ___, 126 S.Ct. 2145, 2150 (2006). The Supreme Court addressed the scope of appellate review of remand orders in Kircher. As the Supreme Court summarized, "The question here is whether an order remanding a case removed under [SLUSA] is appealable, notwithstanding § 1447(d). We hold it is not." Kircher, at 2150 (italics added).

Kircher involves eight separate putative class actions by investors against mutual funds, investment advisers and an insurance company that alleged state law claims for damages (such as damages for negligence and breach of fiduciary duty) arising out of the practice of "market timing." Kircher, at 2150 and n.4. The actions were removed to federal court on the grounds that they were "removable under and precluded by [SLUSA]." Id., at 2151. The investors moved to remand the lawsuits claiming the district court lacked subject matter jurisdiction; the district court agreed, and remanded the actions on the grounds that it lacked subject matter jurisdiction and that SLUSA did not preclude the claims asserted therein. Id.

The Seventh Circuit reversed, but only after concluding that it had appellate jurisdiction to hear the appeal. Kircher v. Putnam Funds Trust, 373 F.3de 847, 849-50 (7th Cir. 2004). In part, the Court concluded that the district court's orders were not actually founded on lack of jurisdiction but on the substantive issue of whether the state law claims were precluded by SLUSA: accordingly, the Seventh Circuit concluded that appellate review was not barred by § 1447(d). Id., at 849-51. Having concluded that it had appellate jurisdiction, the Seventh Circuit then held further that SLUSA precluded the investors' claims.

Continue reading "Class Action Defense Cases: Kircher v. Putnam Funds Trust : Remand Of SLUSA Class Action To State Court Not Appealable Supreme Court Holds" »

Posted On: June 15, 2006 by Michael J. Hassen Email This Post

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Marrone v. Philip Morris -- Defense of Class Action Cases

Ohio Supreme Court Rejection of Class Action Against Tobacco Company of Limited Value to Class Action Defendants

On June 14, 2006, the Ohio Supreme Court issued an opinion reversing certification of a class action against a tobacco company for the allegedly "unfair, deceptive, and unconscionable practice[]" of labeling certain cigarettes as "light." Marrone v. Philip Morris USA, Inc., ___ N.E.2d ___, 2006 WL 1584163 (Ohio 2006). While this victory has been widely reported in the press, it is of limited value to class action defendants.

Marrone turned entirely upon Ohio's Consumer Sales Practices Act (CSPA), which prohibits unfair, deceptive and unconscionable practices in consumer sales transactions. However, alleged violations of CSPA may be brought as class actions only "if the violation is an act or practice that was declared to be deceptive or unconscionable by a rule adopted by the Attorney General before the consumer transaction on which the action is based, or if the violation is an act or practice that was determined by a court to violate the CSPA and the court’s decision was available for public inspection in accordance with R.C. 1345.05(A)(3) before the consumer transaction," Slip Opn., ¶ 1.

The limited applicability of Marrone is evident from the following excerpt:

We must determine how similar the defendant’s conduct must be to the conduct that was previously determined to be deceptive in order for a consumer to qualify for class-action certification under R.C. 1345.09(B) for a violation of the CSPA. For the reasons that follow, we hold that a consumer may qualify for class-action certification under Ohio’s CSPA only if the defendant’s alleged violation of the Act is substantially similar to an act or practice previously declared to be deceptive by one of the methods identified in R.C. 1345.09(B). Because the plaintiffs’ claims in this case did not meet that standard, we reverse the judgment of the court of appeals.

Slip Opn., ¶ 2. Marrone is thus limited to a determination of what, under Ohio state law, satisfies the "substantially similar" requirement of R.C. 1345.09(B) so as to authorize a class action. In fact, the Court expressly stated that "plaintiffs may be entitled to pursue class-action relief," but that "they failed to identify any prior rule or court decision that would entitle them to pursue CSPA relief under R.C. 1345.09(B)." Slip Opn., ¶ 30 (itaclis added).

The opinion does have an excellent discussion of the history and purpose behind cigarette tar and nicotine tests, Slip Opn., ¶¶ 26 et seq., and that discussion may prove useful to tobacco defendants in state and federal courts outside of Ohio.

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Posted On: June 6, 2006 by Michael J. Hassen Email This Post

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Labor Law Class Action Claims On The Rise

In an article entitled, "Defending and Preventing Class Actions Alleging Labor Law Violations," I noted that labor law class actions are on the rise. This opinion was founded solely upon personal experience. A recent article by Kris Maher of the Wall Street Journal adds an objection basis supporting my subjective opinion.

Maher observes that "[w]orkers are filing more lawsuits against employers they accuse of violating fair-wage laws that govern overtime and minimum pay." She also notes that these actions "increasingly seek what is called collective action under federal wage laws as well as class action under similar state laws."

Maher investigation revealed that in 2005 more than twice as many lawsuits "alleging some violation of the Fair Labor Standards Act" were resolved than in 2000 - a startling increase over such a short period of time. Maher's article, "Workers Are Filing More Lawsuits Against Employers Over Wages," printed June 5, 2006, in The Wall Street Journal, is well worth reading.

Posted On: June 2, 2006 by Michael J. Hassen Email This Post

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Indictment of Class Action Firm Implicates Special Problems With Governmental Requests for Waiver of Attorney-Client Privilege

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP was indicted in mid-May 2006 by federal prosecutors in Los Angeles, together with two of the firm’s top partners, David Bershad and Steven Schulman. Leigh Jones of The National law Journal reported yesterday that the government practice of demanding waivers of attorney-client communications in white-collar criminal cases raises “an especially prickly problem” in the Milberg Weiss case.

Even before the class action firm’s indictment, some attorneys – defense and plaintiff – expressed concern about government prosecutors conditioning leniency on a corporate defendant’s willingness to waive the attorney-client privilege. Here, Leigh Jones notes, the corporate defendant is a law firm. The special problems presented by a government prosecutor’s demand for a waiver of the privilege are discussed in Ms. Jones’ article, “Milberg Weiss Case Highlights Waiver Controversy,” printed June 1, 2006, in The National Law Journal.

Posted On: June 2, 2006 by Michael J. Hassen Email This Post

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Class Action Law Firm Losing Lawyers As Well As Clients

Milberg Weiss has been in the news frequently as of late. Following the indictment of the class action law firm and two of its partners, some of the firm's clients elected to retain new counsel to prosecute their class actions. Now, Nathan Koppel and Peter Lattman report that partners are jumping ship as well. According to the article, "eight of the firm's 46 partners have announced their departure, along with some associates."

More surprisingly, the Wall Street Journal reports that the U.S. Attorney's Office has been investigating the law firm since at least 1999, and that it was served subpoenas in 2002. The articles quotes U.S. Attorney Debra Yang as saying that Milberg Weiss's last-minute remedial efforts were "almost a knee-jerk response to the notion that they're about to get indicted." The article by Koppel and Lattman, "Milberg Weiss Partners, Clients Defect as Firm's Woes Multiply," may be found in the June 3, 2006, Wall Street Journal.

Posted On: May 27, 2006 by Michael J. Hassen Email This Post

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Indictment of Class Action Law Firm and Lawyer Fuels Debate on Prosecution of Corporations

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and two of the firm’s top partners, David Bershad and Steven Schulman, were indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs. Brooke Masters of The Washington Post reports that the case breaks a familiar trend of corporate defendants cooperating with government prosecutors “such as Computer Associates International Inc., accounting firm KPMG LLP and drugmaker Bristol-Myers Squibb Co., agreeing not to press criminal charges in exchange for sweeping management changes, large financial penalties and help putting individual employees behind bars.”

Masters reports that simply indicted the firm could run it out of business, and explains why the indictment has reopened the debate on whether the Justice Department should indict companies and the basis for concerns that the indictment may have been politically motivated.

Regardless of the motivation for the indictment, if the allegations are true then the firm’s conduct was illegal and the practice had to be stopped. More details may be found in Brooke Masters’ article, “A Law Firm Under Pressure,” printed May 25, 2006, in The Washington Post.

Posted On: May 27, 2006 by Michael J. Hassen Email This Post

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New Allegations Surface Regarding Indicted Class Action Law Firm and Lawyer

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and two of the firm’s top partners, David Bershad and Steven Schulman, were indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs. Lynnley Browning of the New York Times reports that one of the lead plaintiffs in the class action against accounting firm KPMG claims “that he was offered a financial incentive to serve as plaintiff.”

Settlements in class action cases require court approval, and a proposed $153 million settlement in the KPMG action was to be heard by the federal judge on May 26, 2006. For more information, please see Lynnley Browning’s article, “Plaintiff Says Incentives Were Offered in KPMG Case,” printed May 26, 2006, in The New York Times.

Posted On: May 26, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases--Evans v. Walter Industries: Plaintiff Bears Burden Under Class Action Fairness Act of 2005 (CAFA) Of Establishing Local Controversy Exception To Removal of Class Action

CAFA (Class Action Fairness Act of 2005) Places Burden of Proof on Plaintiff to Establish Local Controversy Exception to Removal Eleventh Circuit Holds

CAFA contains several provisions that still require judicial interpretation. On May 22, 2006, the Eleventh Circuit considered as a matter of first impression for any Circuit Court of Appeals “the specific question of which party should bear the burden of proof on CAFA’s local controversy exception.” Evans v. Walter Industries, Inc., 449 F.3d 1159, 1164 (11th Cir. 2006). Evans "hold[s] that the plaintiffs bear the burden of proving the local controversy exception," id., at 1165 (italics added). The Court noted that this "places the burden on the party most capable of bearing it" because "plaintiffs have defined the class and have better access to information about the scope and composition of the plaintiff class." Id., at 1164 n.3.

The Eleventh Circuit analyzed the evidence presented to the district court and found it wholly inadequate to establish a local controversy. See Evans, at 1164-68. The court rejected the purported showing that two-thirds of the plaintiff class are Alabama citizens, and rejected further that the token Alabama corporation was a "significant defendant" within the meaning of CAFA. In so doing, Evans appears to have adopted (or at the least to have applied) the test "that a class seeks 'significant relief' against a defendant when the relief sought against that defendant is a significant portion of the entire relief sought by the class." Id., at 1167 (citations omitted).

NOTE: The Eleventh Circuit expressly noted that its opinion concerns only the local controversy exception in 28 U.S.C. § 1332(d)(4)(A), and does not reach the question of the local controversy exception in 28 U.S.C. § 1332(d)(4)(B). Evans, at 1163 n.2.

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Posted On: May 21, 2006 by Michael J. Hassen Email This Post

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Class Action Firm Indicted for Paying Kickbacks to Clients to Serve as Plaintiffs

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP learned on May 18, 2006, that it had been indicted by federal prosecutors in Los Angeles for paying more than $11 million in kickbacks to clients to serve as plaintiffs. The 102-page, 20-count criminal indictment also names two of the firm’s top partners, David Bershad and Steven Schulman. Nathan Koppel and Peter Lattman of the Wall Street Journal reported on the fallout from the indictment, including “the Ohio attorney general firing the powerhouse law firm as counsel in a class-action case.”

Koppel and Lattman report that the indictment alleges the firm “made the alleged kickbacks to gain a strategic edge in the pitched competition to be lead counsel in class actions.” The problem is simple, and concisely framed by the Wall Street Journal: “It is illegal for lead plaintiffs to receive more in compensation than other members of a class.”

The article explains that this could be just the beginning of the end: “Many legal experts say a torrent of challenges to the firm’s role as counsel in class-action cases could threaten the firm’s existence.” The potential fallout from the indictment is thoroughly discussed in Koppel’s and Lattman’s article, “Milberg Dealt Blow as Indictment Fallout Grows,” printed May 20, 2006, in The Wall Street Journal.

Posted On: May 16, 2006 by Michael J. Hassen Email This Post

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In re Briscoe: MDL (Multidistrict Litigation) And Class Action Defense Cases

District Court Denial of Motion to Remand MDL Actions Involving Opt-Out Class Members Following Class Action Settlement Agreement Does Not Warrant Writ of Mandamus (Mandate) Because Appellate Review Will Provide Adequate Relief, and District Court Ruling on Fraudulent Joinder Upheld Because Statute of Limitations Had Run on Non-diverse Defendants, Third Circuit Holds

Fraudulent joinder is discussed in separate articles which explain a plaintiff may not join a party-defendant for purposes of defeating federal court jurisdiction. MDL (Multidistrict Litigation) topics also are discussed in separate articles which explain that the Judicial Panel for Multidistrict Litigation may transfer litigation pending in multiple courts to a single district court for pretrial proceedings. The MDL cases must be remanded prior to trial, and it is incumbent upon a party to the MDL litigation to file a motion for such remand. On May 15, 2006, in a case brought by individuals who had opted out of a class action settlement agreement, the Third Circuit refused to grant a petition for writ of mandamus to review a district court order denying remand on the grounds that appellate review would be adequate, and the Third Circuit affirmed the district court's ruling that non-diverse parties had been fraudulently joined to defeat federal court jurisdiction. In re Briscoe, 448 F.3d 201 (3d Cir. 2006).

The underlying has a tortured background. In 1997, Wyeth withdrew two diet drugs from the market - and 18,000 lawsuits followed. The Judicial Panel for Multidistrict Litigation consolidated the actions and transferred them to the Eastern District of Pennsylvania (MDL-1203). After four separate trips to the Third Circuit that "set forth various facets of the background to MDL-1203 and its class action settlement agreement," the class action settlement was consummated. Briscoe, at 206. More than 14,000 additional lawsuits followed, brought by 30,000-35,000 individuals who had opted out of the class action settlement. The group of 127 lawsuits at issue in Briscoe had been filed in Texas state court between November 2002 and August 2003, had included as named defendants the individual doctors that had prescribed the diet drugs, and had not alleged any federal law claims. Id., at 208-09. Wyeth removed the cases to federal court and the MDL Judicial Panel transferred the cases to the docket of MDL-1203. Id., at 209.

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Posted On: May 15, 2006 by Michael J. Hassen Email This Post

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Class Action Defense Cases--Prime Care of Northeast Kansas v. Humana Insurance: Tenth Circuit Rules On Removal Of Class Action Under CAFA (Class Action Fairness Act)

CAFA (Class Action Fairness Act of 2005) Allows Removal of Suit Filed Prior to CAFA’s Effective Date by Defendant Added to Suit by Amendment After CAFA’s Effective Date Tenth Circuit Holds

On May 12, 2006, the Court of Appeals for the Tenth Circuit considered as a matter of first impression the question of “whether CAFA permits the removal of a class action filed before the Act’s effective date if the removing defendant was first added by amendment after the effective date.” Prime Care of Northeast Kansas, LLC v. Humana Ins. Co., 447 F.3d 1284, 1285 (10th Cir. 2006). The district court had concluded that CAFA did not apply in such cases and remanded the matter to state court. The Tenth Circuit reversed, vacating the district court’s remand order and remanding the action to federal court.

The Tenth Circuit recognized that courts that have considered post-CAFA amendments to the operative pleading have reached one of three competing conclusions. In brief, those courts “have held that such amendments either (1) do not affect the pre-CAFA commencement date of the case; (2) affect the commencement date only if they do not relate back; or (3) affect the commencement date if they do not relate back or if they add new defendants to the case.” Prime Care, at 1286. The Court “adopt[ed] the second position.” Id. Specifically, “whether a post-CAFA amendment triggers a substantive right to removal under CAFA by the affected parties depends on whether the amendment relates back to the pre-CAFA pleading that is being amended.” Id., at 1289

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Posted On: April 28, 2006 by Michael J. Hassen Email This Post

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California Class Action Cases--Supreme Court To Review Gentry v. Superior Court Which Enforced Class Action Waiver In Arbitration Clause

California Supreme Court Grants Review in Gentry Case

In a prior article, we discussed the California appellate court opinion enforcing a pre-employment arbitration agreement containing a class action waiver. Gentry v. Superior Court, 135 Cal.App.4th 944 (Cal.App. 2006).

On April 26, 2006, the California Supreme Court granted review of Gentry. Under California law, the decision cannot be cited during the pendency of the appeal.

Posted On: April 11, 2006 by Michael J. Hassen Email This Post

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Best Buy v. Superior Court: Class Action Lawyer Permitted, Over Defense Objection, Precertification Discovery To Identify Substitute Class Action Representative California Court Holds

Plaintiff Lawyer, not Allowed to be Class Counsel and Class Representative, Rewarded with Discovery to Find New Class Action Plaintiffs

Class action case law in California "prohibits a lawyer from serving both as class representative and as counsel for the class, " Best Buy Stores, L.P. v. Superior Court, 137 Cal.App.4th 772, 774 (Cal.App. 2006) (citing Apple Computer, Inc. v. Superior Court, 126 Cal.App.4th 1253 (Cal.App. 2005). On February 6, 2004, a plaintiff's lawyer sought to do just that, filing a putative class action to his own name against Best Buy for alleged violations of the CLRA (Consumer Legal Remedies Act, California Civil Code §§ 1750 et seq.), unfair competition, unjust enrichment based on the theory that the "restocking fee" Best Buy charged for returned merchandise was illegal. Best Buy, at 774. Defense attorneys moved to dismiss the case, and the trial court issued an order to show cause why the motion should not be granted. Id.

The plaintiff lawyer requested that the court compel Best Buy (through a third party) to send a letter to a sampling of members of the putative class so that he could find a new class representative: the trial court granted the motion. Best Buy, at 775. Best Buy filed a petition for writ of mandate in the California Court of Appeal. The defense opposed this class action discovery order as a form of "illegal solicitation"; the appellate court disagreed with this characterization. Id., at 777. The Court agreed, however, that the privacy rights of Best Buy customers needed additional protection. Accordingly, at page 778 it held as follows:

Continue reading "Best Buy v. Superior Court: Class Action Lawyer Permitted, Over Defense Objection, Precertification Discovery To Identify Substitute Class Action Representative California Court Holds" »

Posted On: April 3, 2006 by Michael J. Hassen Email This Post

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Merrill Lynch v. Dabit Class Action Defense Case

SLUSA (Securities Litigation Uniform Standards Act) and Pre-emption

SLUSA (Securities Litigation Uniform Standards Act) was enacted by Congress in 1998 to affect sweeping changes to federal securities laws class actions. SLUSA addresses numerous federal securities laws class actions issues including pleading, class representation, discovery, liability, attorney fee awards, expenses and more. SLUSA also sought to pre-empt state law securities class action litigation, but the Circuit Courts disagreed on the breadth of that pre-emption.

In Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit, __ U.S. ___, 126 S.Ct. 1503 (2006), the United States Supreme Court issued its opinion. This opinion addresses whether the Securities Litigation Uniform Standards Act (SLUSA) “only pre-empts state-law class-action claims brought by plaintiffs who have a private remedy under federal law,” as the Second Circuit held in Dabit v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 395 F.3d 25 (2005), or whether SLUSA “also pre-empts state-law class-action claims for which federal law provides no private remedy,” as the Seventh Circuit held in Kircher v. Putnam Funds Trust, 403 F.3d 478 (7th Cir. 2005). The Supreme Court agreed with the Seventh Circuit, holding that SLUSA's pre-emption provision was intended to be read broadly, and pre-empted state-law class-action claims brought not only by purchasers and sellers of securities, but also by holders of securities. As so read, SLUSA pre-empted state-law claims alleging the fraudulent manipulation of stock prices.

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Posted On: January 19, 2006 by Michael J. Hassen Email This Post

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California Class Action Defense Cases--Gentry v. Superior Court: Class Action Waiver In Employment Contract's Arbitration Provision Held Enforceable

California Court Upholds Arbitration Clause With Class Action Waiver In Employment Agreement

On January 19, 2006, the California Court of Appeal for the Second District, Division 5, addressed “the enforceability of a pre-employment arbitration agreement containing a class action waiver.” Gentry v. Superior Court, 135 Cal.App.4th 944, 37 Cal.Rptr.3d 790, 791 (Cal.App. 2006). In 1995, while employed by Circuit City, Gentry received an “Associate Issue Resolution Package” and a copy of the company’s “Dispute Resolution Rules and Procedures” setting forth various procedures for resolving employment-related disputes. The documents contained an arbitration agreement that included a class action waiver provision. The company provided each employee with 30 days to opt out of the arbitration agreement, but Gentry did not elect to do so. 37 Cal.Rptr.3d at 791-92.

In 2002, Gentry filed a putative class action against Circuit City in California state court alleging that Circuit City misclassified employees in order to avoid paying overtime. Id., at 791. Circuit City moved to compel arbitration. The trial court compelled arbitration with the class action waiver, and stayed the superior court action. The appellate court stated:

The issue in this case is a narrow one: whether the class action waiver in the Circuit City arbitration agreement is an unconscionable provision that renders the provision unenforceable. We conclude the provision is neither procedurally nor substantively unconscionable. Id., at 792.

Gentry recognized that the California Supreme Court “has found pre-employment arbitration agreements is to be adhesive where the agreement is made a condition of employment.” Id., at 793 (citations omitted). This case was different, however, because “Signing the arbitration agreement was not made a condition of Gentry’s employment; he was given 30 days to decide whether or not to opt out of the agreement, and chose not to do so.” Id. The Court also rejected Gentry’s claim that Circuit City “attempted to ‘sucker unsophisticated employees into opting out’ by touting the advantages of arbitration”; the court found that Circuit City had fairly presented both the advantages and disadvantages of arbitration. Id., at 794.

Finally, the court observed that Circuit City would not preclude litigation by means of the class action waiver: “Gentry has alleged statutory violations that could result in substantial damages and penalties should he prevail on his individual claims.” Id., at 795-96. For all of these reasons, the appellate court believed that Discover Bank v. Superior Court, 36 Cal.4th 148 (Cal. 2005), which invalidated a class action waiver provision in a consumer contract of adhesion involving a credit card company, “does not render the class action waiver in this case unenforceable.” Id., at 791.

The opinion is well worth reading. If the case remains viable, Gentry will prove extremely useful in preventing employment law class actions. Defense attorneys and in-house counsel are well advised to keep track of the status of Gentry.

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