Federal District Courts Class Action Articles

The latest class action developments and trends in Federal District Courts, including news, key cases, and strategies.

Certification of Minor Class Could Have Major Impact on Facebook

Plaintiffs, two minors who used their parents' money to make purchases on Facebook without parental consent, brought a putative class action against the company, alleging its policy of representing purchases as non-refundable violates California law holding that contracts entered into by minors are void or voidable. Through their guardians, plaintiffs sought to certify a class of Facebook users who were minors during a four year period, along with a subclass of those who ... Keep Reading »

Target Reaches Preliminary Settlement in Consumer Data Breach Class Action

Last week, a Minnesota federal district court granted a motion for preliminary approval of a settlement of putative consumer class action claims against Target in the wake of a data breach at the retailer over the 2013 holiday shopping season.  The settlement will provide a fund of up to $10 million to be distributed through a claims process to class members who suffered identity theft as a result of the breach. The final approval hearing is set for November 10, ... Keep Reading »

Threat of Identity Theft is Not Enough: Another Data Breach Class Action Dismissed for Lack of Standing

Hewing to prior Third Circuit precedent in Reilly v. Ceridian and the Supreme Court's precedent in Clapper v. Amnesty International, the Middle District of Pennsylvania recently joined the majority of federal district courts in dismissing putative data breach class actions for lack of standing where the named plaintiffs fail to allege identity theft. Although standing is a requirement in any case, it is particularly relevant in the data breach context, where actual ... Keep Reading »

GCs facing more bet-the-company and higher exposure class actions

Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. This year, spending is expected to return to 2013 levels. Companies’ class action dockets increased on average by one new case in 2014, bringing the average number of class actions managed to five. This total is expected to remain constant in 2015, as the number of new matters is likely to be offset by those resolved. As before, ... Keep Reading »

Question Certified To Second Circuit: Does The Court Or The Arbitrator Decide Whether An Arbitration Agreement Permits Class Arbitration?

In the Second Circuit, as in other jurisdictions, only exceptional circumstances will justify a departure from the basic policy of postponing appellate review until after the entry of a final judgment. A New York federal district court recently encountered such circumstances in connection with a motion to certify an interlocutory appeal of an order compelling arbitration. Plaintiffs filed a demand for class arbitration and defendants filed a competing motion to compel ... Keep Reading »

Sweet Ending for Plaintiffs in Food Labeling Class Action Against Ghirardelli

A California district court certified a Rule 23(b)(3) food labeling class action against chocolatier Ghirardelli and approved a proposed settlement.  The genesis of Plaintiffs' claim is that defendant mislabeled its "White Chips" and other products in a way that would mislead consumers into believing that the products contained white chocolate. Plaintiffs also asserted a claim that the "all natural" label was improper because the products contained "genetically modified, ... Keep Reading »

Illinois District Court Denies Certification of Class in TCPA Claim for Lack of Typicality, Adequacy, Numerosity and Ascertainability

The Northern District of Illinois denied certification of a class in a claim brought pursuant to the Telephone Consumer Protection Act ("TCPA"), 47 U.S.C. Sec. 227. Plaintiff alleged that defendant violated the TCPA by sending it unsolicited faxes promoting defendant's catering services. In discovery, plaintiff obtained a fax log demonstrating that Defendant sent 3,000 faxes to 106 unique fax numbers. Plaintiff also obtained a template fax that defendant allegedly used ... Keep Reading »

District Court for the District of Columbia Finds CAFA Jurisdiction Exists; Denies Remand For Lack of Local Controversy

The U.S. District Court for the District of Columbia denied a motion to remand an action removed pursuant to the Class Action Fairness Act (CAFA), where the plaintiff failed to show CAFA’s local controversy exception applied.  Plaintiff sued a Washington, D.C. health club and several others for allegedly fraudulently taking out lines of credit against customers and billing against them without the customers’ knowledge or consent. The Plaintiff conceded minimal ... Keep Reading »

No Harm, No Standing: Texas Federal Court Dismisses Data Breach Class Action

Dismissing a class action based on a data breach, the Southern District of Texas added to the growing number of decisions that find an alleged risk of future identity theft due to a data breach is not an injury that creates standing to bring federal claims. The plaintiff, Beverly Peters, a former St. Joseph patient, brought a class action lawsuit against the medical provider after receiving notification that her personal information and protected health information had ... Keep Reading »

District Court Strikes Homeowners Policyholders’ Class Action Allegations

The United States District Court for the Southern District of Ohio granted defendant State Auto's motion to strike plaintiffs' class allegations, holding that the complaint itself demonstrated that the proposed class was not ascertainable and could not satisfy Rule 23(a)'s commonality and typicality requirements, nor the predominance and superiority requirements of Rule 23(b).  The complaint alleged that State Auto committed fraud, breached the duty of good faith and ... Keep Reading »