Mealey's California Section 17200 : Mealey's : Legal News & Analysis

Mealey's California Section 17200

July 31, 2023
‘Virtually Certain’ Copyright Violations Keep AI Github Claims Alive, Class Says

OAKLAND, Calif. — Anonymous plaintiffs defended California unfair competition law (UCL) and other claims stemming from the alleged use of licensed software posted to the Github repository to train artificial intelligence from a motion to dismiss, saying their allegations were “plausible, highly likely and indeed, virtually certain.”
July 31, 2023
9th Circuit Vacates Denial Of Class Certification Of UCL Claim Against CVS

SAN FRANCISCO — A Ninth Circuit U.S. Court of Appeals panel on July 28 vacated a judge’s denial of class certification on claims that CVS Health and affiliates violated California’s unfair competition law (UCL) by selling a hand sanitizer product with a “kills 99% of germs” statement on the label and remanded for reconsideration of an expert witness’s report, while affirming the denial of certification for the plaintiff’s fraud and negligent misrepresentation claims.
July 28, 2023
UCL Suit For ‘Natural’ Fruit Chunks In Synthetic Syrup May Proceed, Judge Says

SAN FRANCISCO — A California federal judge granted in part and denied in part a fruit company’s motion to dismiss a consumer’s putative class complaint accusing it of violating California’s unfair competition law (UCL) and other states’ consumer protection laws by advertising its fruit chunk products as “natural” while they in fact contain synthetic ingredients, dismissing the plaintiff’s multistate consumer protection claims but allowing her UCL and Oregon state law claims to proceed.
July 28, 2023
California Appeals Court: Interactions Didn’t Create Provider-Insurer Contract

SAN DIEGO — There is no evidence that an insurer’s past payments or benefit discussions with a provider created a contract or promise to pay a specific level of reimbursement, a California appeals court said in affirming summary judgment on July 27.
July 28, 2023
‘Natural’ Skin Care Maker Accused Of Violating UCL With Greenwashed Labels

SAN FRANCISCO — Two consumers filed a putative class action in California federal court accusing a skin care manufacturer of using “greenwash” techniques that violate California’s unfair competition law (UCL) and other statutes by representing its skin care products as “natural” when they in fact contain synthetic ingredients.
July 27, 2023
Court To Hear Arguments On Medical Reimbursement Claim Splitting Ruling

LOS ANGELES — A California appeals court set oral arguments for September in a case challenging rulings granting a demurrer, staying a case and imposing sanctions for improper claim splitting in a medical reimbursement action involving claims under the California unfair competition law (UCL).
July 26, 2023
After Remand, 9th Circuit Affirms Arbitration Denial In Truck Driver’s Class Case

SEATTLE — The Ninth Circuit U.S. Court of Appeals in a case remanded by the U.S. Supreme Court found that Southwest Airlines Co. v. Saxon is not “clearly irreconcilable” with Rittman v. Amazon.com, Inc. and for the second time affirmed a trial court’s denial of arbitration in a class case by Domino’s Pizza LLC truck drivers (D&S drivers) alleging unreimbursed business expenses and violation of California’s unfair competition law.
July 26, 2023
Beverage Maker Accused In Class Suit Of Selling PFAS-Containing Smoothies

SAN DIEGO — Two consumers filed a putative class complaint in California federal court accusing a beverage maker of violating California’s unfair competition law (UCL) and other laws by concealing the presence of per- and polyfluoroalkyl substances (PFAS) in its fruit juice smoothie products.
July 25, 2023
Cigna Denies Claims In Bulk Through Algorithm, California Class Action Alleges

SACRAMENTO, Calif. — Health insurer Cigna Corp.’s algorithm instantly rejects hundreds of thousands of claims without ever reviewing them and with the company’s knowledge that only a miniscule percentage of claimants will ever challenge the decisions, insureds allege in a July 24 class action filed in the U.S. District Court for the Eastern District of California alleging violation of California regulations and the state’s unfair competition law (UCL).
July 25, 2023
Judge: Disputes Of Fact Remain In UCL Suit Alleging Trans Fats In Taco Shells

SAN FRANCISCO — A California federal judge on July 24 granted in part a motion for partial summary judgment filed by two plaintiffs accusing a taco shell maker of violating California’s unfair competition law (UCL) by concealing the presence of trans fats in its products and ordered the plaintiffs to clarify if they intend to plead reliance on materiality before deciding if the shell maker’s marketing expert should be excluded.
July 21, 2023
2 Facebook Users Oppose Final Approval Of $725M Profile-Sharing Suit

SAN FRANCISCO — Two class members in the consolidated class action over the sharing of Facebook users’ personally identifiable information (PII) with Cambridge Analytica filed an objection in California federal court to the preliminarily approved settlement, calling the proposed $725 million settlement amount “an unjustifiable 99.9% discount of available statutory damages” that “is neither fair, reasonable nor adequate.”
July 20, 2023
Judge Remands Putative Class Suit Against Apple For Restricting Consumer Repairs

SAN JOSE, Calif. — A California federal judge on July 19 remanded to state court a putative class lawsuit accusing Apple Inc. of violating consumer protection laws by restricting consumers’ ability to independently repair their Apple devices after finding that the court lacks jurisdiction over their claims for equitable relief and that refusal to remand the claims could result in “unnecessary parallel litigation.”
July 18, 2023
Fitness Company Seeks To Dismiss Gym Fee Dispute Stemming From COVID Lockdowns

LOS ANGELES — A fitness and health company and its wholly owned subsidiary moved to dismiss a putative class complaint brought by a gym member alleging breach of the implied duty of good faith and fair dealing, negligent representation and violations of California law in continuing to charge fees for gym memberships during COVID-19 lockdowns when the gyms could not be accessed, contending that the statute of limitations had run on most of the claims and that the claim of negligent misrepresentation was inadequately pleaded.
July 18, 2023
Calif. High Court Finds Litigation Of Nonindividual PAGA Claims May Proceed

SAN FRANCISCO — An individual who is an “aggrieved employee” and has been compelled to arbitrate his or her individual Private Attorneys General Act (PAGA) claims based on alleged California Labor Code violations may still litigate PAGA claims brought on behalf of other employees, the California Supreme Court ruled July 17.
July 17, 2023
California High Court Resurrects Medical Group’s UCL Suit Against Insurer

SAN FRANCISCO — The California Supreme Court on July 17 reversed a state appellate court’s affirmance of summary judgment in an insurer’s favor and said a physicians’ association had created a triable issue of fact as to whether it had standing to sue the insurer under the state’s unfair competition law (UCL) based on resources it spent responding to an insurer’s policy restricting physicians from making out-of-network referrals.
July 17, 2023
Judge Won’t Dismiss UCL Class Suit Against Nestlé For Child Labor

SAN DIEGO — A California federal judge denied Nestlé USA Inc.’s motion to dismiss a third amended putative class complaint, finding that the plaintiff has plausibly alleged that its marketing statements that its cocoa is “sustainably sourced” is deceptive and violates California’s unfair competition law (UCL) based on evidence of worsening labor and child labor conditions at Nestlé’s cocoa plantations.
July 17, 2023
Panel Reverses, Says Insurers Have Duty To Defend Seller Of Contaminated Land

LOS ANGELES — A California appellate panel ruled that a trial court erred by granting summary adjudication in favor of two insurers on the duty to defend a lawsuit against an insured for violation of California’s unfair competition law (UCL) and other laws due to ongoing groundwater contamination at an industrial property it sold in 1995.
July 17, 2023
9th Circuit Won’t Reconsider Whether COPPA Preempts Children’s Privacy Suit

SEATTLE — A Ninth Circuit U.S. Court of Appeals panel opted not to disturb its finding that the Children’s Online Privacy Protection Act (COPPA) does not expressly preempt state law privacy, unfair competition and consumer protection claims, denying a petition by Google LLC and several children’s YouTube channel operators to rehear an appeal of a dispute over the companies’ purported collection of children’s personally identifiable information (PII).
July 13, 2023
Google Accused Of Stealing Data From Gmail Accounts To Train AI Chatbot

SAN FRANCISCO — Eight anonymous plaintiffs filed a putative class action accusing Alphabet Inc., Google LLC and their AI subsidiary of violating California’s unfair competition law (UCL), copyright law and privacy laws by “stealing everything ever created and shared on the internet by hundreds of millions of Americans,” including the plaintiffs’ private data contained in their private Google email accounts, to train their AI chatbot.
July 12, 2023
‘WallStreetBets’ Creator’s UCL Suit Dismissed Due To Lack Of Trademark Rights

SAN FRANCISCO — A California federal judge on July 11 granted online forum host Reddit Inc.’s motion to dismiss a lawsuit filed against it by an investor and entrepreneur who claims that it violated California’s unfair competition law (UCL) and his trademark in part by banning him from the “WallStreetBets” forum on its platform, which he created, finding that he did not establish trademark rights and that Reddit was immune from his other claims as an online publisher.
July 12, 2023
Split Panel Affirms Dismissal Of Insured’s Suit For Unfair Claims Handling

SAN FRANCISCO — A split California appellate panel on July 11 affirmed the dismissal as time-barred of an insured’s putative class action accusing its insurer of violating California’s unfair competition law (UCL) by improperly denying her property insurance claim for replacement of a decayed staircase without investigation, although a dissenting judge said the insured’s UCL claim was not time-barred.
July 12, 2023
Tesla Increases Proposed Solar Roof Class Settlement To $6.08 Million

SAN FRANCISCO — Two homeowners who negotiated a proposed class settlement with Tesla Inc. in a case accusing the company of increasing the cost for solar roofs after customers sign contracts filed an addendum in a federal court in California stating that the approximate size and statuses of the settlement class had increased, so Tesla agreed to increase the settlement fund from $6 million to $6.08 million.
July 12, 2023
Insurers Seek Dismissal Of Suit For Payment Of Gym Fees During COVID-19 Lockdowns

LOS ANGELES — Two California health insurers moved to dismiss a putative class complaint brought by a gym member alleging breach of the implied duty of good faith and fair dealing, negligent representation and violations of California law in continuing to charge fees for gym memberships during COVID-19 lockdowns when the gyms could not be accessed, contending that there was no contractual relationship between the insurers and the gym members regarding their memberships.
July 11, 2023
Split Panel Reverses Denial Of Homeowner Class Certification In Anchors Defect Case

SAN FRANCISCO — A split Ninth Circuit U.S. Court of Appeals panel on July 10 reversed and remanded a federal court’s denial of class certification in a putative class action brought by homeowners alleging that a manufacturer sold them defective home connectors and anchors, with the majority holding that the court abused its discretion by excluding the homeowners’ expert witness.
July 11, 2023
Content Companies Say Artists Misunderstand How AI Apps Work

SAN FRANCISCO — Three companies engaged in artificial intelligence content generation told a federal judge in California that artists accusing them of stealing original works misstate copyright law and misunderstand how the programs in question work.