A Kentucky federal court recently ruled that a class plaintiff may not defeat removal by understating the aggregate amount in controversy alleged in her complaint. The defendants had assisted plaintiff in connection with her claim for Social Security Disability benefits after she was referred to them by her long-term disability insurance carrier. According to plaintiff, the nature of the fee arrangement between the defendants and the referring insurance carriers ... Keep Reading »
No Revival Of Class Claims For Plaintiff Who Delayed Amending His Complaint In Bad Faith
An Illinois federal district court has ruled that a class plaintiff whose motion for class certification was denied may not avoid that outcome by amending his complaint to introduce a new legal theory and revised class definition if the complaint could have been amended prior to moving for class certification. Chapman’s initial attempt to certify claims under the Telephone Consumer Protection Act failed because the Court found that individual issues would predominate ... Keep Reading »
Basic Survives, But Defendants Must Have Opportunity To Show Lack Of Price Impact To Rebut “Fraud-On-The-Market” Presumption Of Reliance Prior To Class Certification
Earlier this week the Supreme Court reaffirmed the validity of the “fraud-on-the-market” presumption of reliance that significantly eases the burden on investors in obtaining certification of private securities fraud class actions, but held that defendants must be permitted an opportunity at the class certification stage to rebut the presumption through direct or indirect evidence showing that the alleged misrepresentations did not impact the stock price. In the more ... Keep Reading »
Court Refuses to Apply California or Texas Law to Putative Nationwide Class and Denies Renewed Motion for Class Certification
A California federal district court denied a renewed motion for certification of a nationwide class, holding that the application of California negligence and conversion law would violate the due process rights of non-Californian class members. Ms. Marsh sought to represent a nationwide class of “payday loan” applicants who were allegedly victimized by unauthorized withdrawals from their bank accounts via “remotely created checks” processed by one Texas-based ... Keep Reading »
Court Strikes Class Action Allegations Citing Individualized Causation Issues
A Pennsylvania federal district court granted defendant CitiMortgage’s motion to strike class allegations under Rule 23(d)(1)(D), because it was clear from the complaint that plaintiffs could not meet the requirements for maintaining a class action and were unlikely to be able to substantiate their class allegations through discovery. Plaintiffs were homeowners who, after defaulting on their mortgage, commenced a class action against three defendants related to the ... Keep Reading »
Knowles Gives Employer Second Chance To Seek And Win Removal
The Ninth Circuit Court of Appeals held that neither a damages waiver nor the passage of more than 30 days after receipt of a complaint prevented an employer’s removal under CAFA. A putative class of California store managers suing for lost overtime successfully prevented the defendant-employer’s first attempt at removal by expressly disclaiming any right to recover damages over $4,999,999.99, thereby ensuring that CAFA’s $5 million amount in controversy requirement ... Keep Reading »