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Mealey's Class Actions

May 02, 2024
Split 2nd Circuit Affirms Effective Vindication Ruling In ERISA Arbitration Row

NEW YORK — In a 2-1 ruling on a high-profile Employee Retirement Income Security Act issue, a Second Circuit U.S. Court of Appeals panel on May 1 upheld denial of a motion for individual arbitration over an Employee Stock Ownership Plan (ESOP) deal, with the majority applying the effective vindication exception as three other circuits did “in closely analogous cases” and asserting that “this is not actually a class action.”
May 02, 2024
Borrowers’ Class Suit Alleging Lender Wrongfully Denied COVID Relief Dismissed

PHILADELPHIA — A federal judge in Pennsylvania on May 1 dismissed without prejudice borrowers’ putative class action alleging that their lender violated state and federal statutes when it denied some borrowers COVID-19 aid and approved only a portion of the aid for others, finding that the plaintiffs failed to state a claim under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL) or the Real Estate Settlement Procedures Act (RESPA).
May 02, 2024
Judge Dismisses Consumer’s UCL Suit Against Herbal Cough Drop Maker

SAN JOSE, Calif. — A California federal judge granted a cough drop maker’s motion for judgment on the pleadings and dismissed without prejudice a putative class action filed against it by a consumer who claimed that it deceptively advertises its cough drops as offering herbal and medicinal benefits in violation of California’s unfair competition law (UCL).
May 02, 2024
7th Circuit Vacates Class Certification Denial In Prisoner Dental Care Case

CHICAGO — A Seventh Circuit U.S. Court of Appeals panel vacated a trial court’s denial of class certification in a case against an Illinois county and sheriff by a former detainee who alleges that he and others were denied sufficient dental care, finding that the lower court erred in concluding that commonality, typicality and superiority were not met; the appellate panel also declined the county’s argument that class representatives cannot receive incentive awards and instead ruled that they are appropriate for named plaintiffs “so long as they comply with the requirements of” Federal Rule of Civil Procedure 23.
May 02, 2024
Washington Jury Awards Hospital Workers More Than $98M In Wage, Hour Damages

SEATTLE — A Washington jury returned a more than $98 million damages verdict for health care workers in a wage and hour class suit in which they alleged unlawful rounding practices and meal break denials.
May 02, 2024
9th Circuit Affirms Class Certification In Marketing Of Pet Health Product Suit

PASADENA, Calif. — A Ninth Circuit U.S. Court of Appeals panel upheld certification of a class of dog supplement purchasers who allege the products they bought were falsely marketed as improving joint health, finding that reliance on an unexecuted damages model to certify a class is permissible and that sufficient data was provided to support the certification ruling.
May 02, 2024
Texas Ranch Owner’s Class Suit Blames Utility Companies For Smokehouse Creek Fire

AMARILLO, Texas — A February 2024 fire in the Texas panhandle that burned more than 1 million acres was caused by an electrical line pole that snapped due to high winds, a Texas ranch owner alleges in his class complaint filed in a federal court in Texas against three utility companies that he alleges controlled or maintained the pole.
May 01, 2024
New York City’s $17.5M Head Covering Removal Settlement Given Preliminary OK

NEW YORK — A federal judge in New York granted preliminary approval of a $17.5 million settlement to be paid by New York City to end a class complaint by individuals who were forced to remove religious head coverings for post-arrest photos.
May 01, 2024
Individual Settlement Reached In Papa John’s Website Data Collection Class Suit

SAN DIEGO — A consumer who filed a putative class complaint accusing Papa John’s International Inc. of violating the California Invasion of Privacy Act (CIPA) through the interception and collection of users’ data on a pizza-ordering webpage filed a notice in a federal court in California stating that he reached an individual settlement.
May 01, 2024
Jewish Student’s Class Suit Alleges Protests Cause Unsafe Environment At Columbia

NEW YORK — Columbia University trustees have failed to ensure that students are safe and that their education has not been disrupted following the April 18 creation of a “Gaza Solidarity Encampment” on campus by protestors, a Jewish student referred to only by her initials alleges in a class complaint and motion for a temporary restraining order (TRO) filed in a federal court in New York.
May 01, 2024
Judge Awards $300,000 In Attorney Fees 3 Years After Retail Voucher Settlement

SAN DIEGO — A California federal judge on April 30 granted in part plaintiffs’ motion for attorney fees arising from a 2021 voucher class settlement agreed to by a children’s clothing retailer that was accused of advertising false “original” prices when discounting its merchandise in violation of California’s unfair competition law (UCL) and other state laws.
May 01, 2024
9th Circuit Panel Affirms Dismissal With Prejudice Of UCL Asbestos-Talc Claims

SACRAMENTO, Calif. — Plaintiffs in a class action “littered” a fifth amended complaint with descriptions of advertisements, but many appear unrelated to the asbestos-talc claims underpinning the California unfair competition law (UCL) allegations or lack the necessary evidence of reliance, the Ninth Circuit U.S. Court of Appeals said in an unpublished memorandum affirming summary judgment for the defendants.
May 01, 2024
California Chick-fil-A Delivery Price Class Suit Dismissed After Settlement In Ga.

SACRAMENTO, Calif. — Chick-fil-A Inc. and a customer who brought a class complaint over the fast food company’s delivery prices filed a joint stipulation of dismissal with prejudice in a federal court in California after the claims were resolved as part of a settlement approved by a Georgia court in February; the California case had been stayed pending settlement since October 2022.
May 01, 2024
Government, Health Plans Brief Tolling Opt-In Class Cases In ACA Reinsurance Row

WASHINGTON, D.C. — In supplemental briefing in the U.S. Court of Federal Claims in consolidated cases over allegedly illegal exactions made under the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA), group health plans and the government agree that there’s a dearth of case law on American Pipe & Construction Co. v. Utah tolling for opt-in classes.
May 01, 2024
$42.1M Attorney Fees, Final Approval Sought In Class ACA Reinsurance Row

WASHINGTON, D.C. — None of the 357 class members has objected to a $169,022,397.28 settlement that would resolve part of a lawsuit over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA) or a request that class counsel get 25% of that amount for attorney fees, the class representative told the U.S. Court of Federal Claims in a reply brief.
April 30, 2024
Judge Reconsiders, Reverses Dismissal Of ECOA, FHA Claims In Reverse Redlining Suit

FLINT, Mich. — Ruling on the plaintiffs’ motion for reconsideration, a federal judge in Michigan reversed the dismissal of Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA) claims against lenders and agents in a putative class action alleging reverse redlining. The plaintiffs had argued that the court erred in dismissing the claims without addressing their disparate treatment claim.
April 30, 2024
5th Circuit Vacates Class Certification In Oil Company Securities Suit

NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel vacated a class certification order issued by a federal judge in Texas in a securities action brought by investors against a petroleum corporation and certain of its executives, finding that the judge erred by not allowing the petroleum company to file a sur-reply after the investors included evidence for the first time in a reply brief.
April 30, 2024
Compass, Douglas Elliman, Others Agree To Settle Commissions Conspiracy Claims

KANSAS CITY, Mo. — Home sellers accusing the National Association of Realtors (NAR) and a number of real estate franchisors and brokers of violating the Sherman Act by entering into an agreement to artificially inflate the cost of commissions in residential real estate transactions filed a motion in a federal court in Missouri on April 29 seeking preliminary approval of an up to $96 million settlement with five of the named defendants.
April 30, 2024
HomeServices To Settle Commissions Claims On Heels Of NAR $418M Agreement

KANSAS CITY, Mo. — The deadlines and proceedings in a real estate commission conspiracy class lawsuit in a federal court in Missouri that are related to HomeServices of America Inc., BHH Affiliates and HSF Affiliates LLC (together, HomeServices) were stayed in an April 29 docket entry, one business day after HomeServices filed a notice of pending settlement and joint motion to stay; HomeServices’ settlement announcement came three days after a $418 million settlement by the National Association of Realtors (NAR) was preliminarily approved.
April 30, 2024
Judge Gives Initial Nod To $9.4M White Castle Finger Scan Class Action Settlement

CHICAGO — A $9.4 million settlement between White Castle System Inc. and an employee who sued the fast food company for its finger scan policy received preliminary approval from an Illinois federal judge, who deemed the estimated $968 per class member payment to be “substantial relief” for the purported violations of Illinois’ Biometric Information Privacy Act (BIPA) by their employer.
April 30, 2024
Roblox Moves To Dismiss Or Arbitrate ‘Child Labor’ Claims In Class Action Suit

SAN FRANCISCO — The online gaming company Roblox Corp. filed motions in a California federal court to dismiss and compel arbitration of claims brought against it by parents of Roblox players who accuse it of violating California’s unfair competition law (UCL) by designing its game to addict kids and allegedly profiting off of a “child labor market” wherein minor users perform online tasks in return for Robux.
April 29, 2024
Class Counsel Motions Sealed As $185M Settlement Mulled In Mortgage Suits

COLUMBUS, Ohio — A federal magistrate judge in Ohio directed that two motions for appointment of class counsel filed in related suits accusing Wells Fargo Bank N.A. and Wells Fargo and Co. (together, Wells Fargo) of violating state and federal law by engaging in a scheme to place borrowers into a forbearance program during the COVID-19 pandemic be temporarily sealed pending resolution of the motions to seal; the order came just over a week after the plaintiffs in both cases filed a joint motion for preliminary approval of a $185 million settlement.
April 29, 2024
Plaintiffs Seek Approval Of $600M Settlement Of Train Derailment Lawsuit In Ohio

YOUNGSTOWN, Ohio — The co-lead counsel for plaintiffs filed a brief in Ohio federal court on April 26 supporting a motion for preliminary approval of a $600 million settlement to resolve the class action against Norfolk Southern Railway Co. and Norfolk Southern Corp. (Norfolk Southern, collectively) pertaining to alleged injuries from the release of toxic chemicals at the 2023 train derailment in East Palestine, Ohio; a third-party lawsuit among Norfolk Southern and railcar companies continues.
April 29, 2024
High Court Won’t Decide ‘Average’ Class Damages Issue In Chili’s Data Breach Suit

WASHINGTON, D.C. — A question about the propriety of using an “average” damages amount suggested by the plaintiffs’ damages expert to certify a class will go unheard by the U.S. Supreme Court, which in its April 29 order list denied a petition for certiorari by the owner of the Chili’s restaurant chain, which protested the possibility that customers who suffered no damages at all in a 2018 data breach would still receive these damages awards.
April 29, 2024
U.S. Supreme Court Takes Up Federal Jurisdiction Question In Pet Food Class Case

WASHINGTON, D.C. — The U.S. Supreme Court on April 29 granted a petition for a writ of certiorari filed by two pet food companies accused of misleading consumers on the quality and value of prescription pet food and seeking a ruling on whether federal question subject matter jurisdiction can be defeated with an amended complaint and if such an amendment “precludes a district court from exercising supplemental jurisdiction over the plaintiff’s remaining state-law claims.”