The District of Columbia district court added to the growing collection of orders opining on whether and to what extent the Supreme Court’s decision in Bristol-Myers Squibb applies to class actions. This case involved a putative class of employees suing Whole Foods in an attempt to recover wages pursuant to the upscale grocer’s “Gainsharing” bonus program. The program seeks to incentivize departments in individual stores to perform under budget by distributing budget ... Keep Reading »
No Celebration For Yahoo!: Data Breach Claims Survive Motion to Dismiss
After Yahoo! Inc. suffered three data breaches in a span of four years, plaintiffs brought a putative class action lawsuit against the internet service provider and a subsidiary (collectively, “Yahoo”), alleging defendants failed to use appropriate safeguards to protect users’ personal information despite their representations that such information was secure. The breaches included a 2013 hack allegedly due to outdated encryption technology, which affected all three ... Keep Reading »
Student-Athletes Score Partial Win on Challenge to NCAA’s Scholarship Caps
A nationwide class action currently consolidated in multidistrict litigation filed by current and former student-athletes received a boost from a ruling on the parties’ cross motions for summary judgment. The athletes, from men’s Division I Football Bowl Subdivision and men’s and women’s Division I basketball, allege that the NCAA violated federal antitrust law by “conspiring to impose an artificial ceiling on the scholarships and benefits that student-athletes may ... Keep Reading »
Sorry, But Your Credit Card (Class Action) Has Been Declined
The Eastern District of New York recently declined to certify a putative class action filed by merchants against the four major credit card providers alleging antitrust violations. The complaint alleges that MasterCard, Visa, Discover, and American Express (“Amex”) conspired by adopting the same liability policy for fraudulent charges with chip-enabled credit cards by shifting liability from banks to merchants and implementing the policy on the same day to reduce ... Keep Reading »
District Courts Split on Whether Bristol-Myers Squibb‘s Specific Personal Jurisdiction Analysis Bars Nationwide Class Actions In Districts Beyond Defendant’s Home Venue
The ramifications of the Supreme Court’s decision in Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco Cty., 137 S. Ct. 1773 (2017), remain unsettled. In Bristol-Myers Squibb, the United States Supreme Court rejected California’s “sliding scale approach” to assertions of specific personal jurisdiction. California’s Supreme Court had addressed a nationwide mass action and held that California could assert specific jurisdiction over the claims of ... Keep Reading »
Cyan Makes SLUSA Removal Proponents Feel Blue: Supreme Court Holds That Securities Act of 1933 Class Actions Can Stay in State Court
On March 20, the Supreme Court reached two holdings important to securities litigators. First, the Court held that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) did not strip state courts of their ability to adjudicate class actions under the Securities Act of 1933 (“Securities Act”). Second, the Court held that SLUSA does not allow removal to federal court of class actions alleging claims only under the Securities Act. Petitioners were an issuer ... Keep Reading »
Careful What You Wish For – Additional Discovery Requested by TCPA Class Plaintiff Leads to Decertification Order in Northern District of Illinois
Federal courts have a continuing obligation to ensure that class action certification remains appropriate throughout the duration of a case. Accordingly, it is well established that if class certification is later deemed improvident, the district court may decertify a previously certified class. That is precisely what the Northern District of Illinois did in Johnson v. YAHOO! Inc., No. 14 CV 2028, 2018 WL 835339 (N.D. Ill. Feb. 13, 2018), in addressing a previously ... Keep Reading »
Ninth Circuit Gives Leg Up to Shoe Purchasers’ Data Breach Suit
On March 8, a Ninth Circuit panel held that fear of identity theft in the wake of a data breach satisfies the standing requirements of Article III of the United States Constitution. In so holding, the Ninth Circuit confirmed that its prior data breach standing precedent in Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir. 2010) remained good law despite the Supreme Court’s 2013 holding in Clapper v. Amnesty International USA, 133 S. Ct. 1138 (2013). As we previously ... Keep Reading »
Out of Proportion: Court Denies Discovery Requests in Putative TCPA Class Action Due to Burden On Defendant
This putative Telephone Consumer Protection Act (TCPA) class action arose from alleged marketing calls by Quicken Loans (Quicken) to potential mortgage customers. After the magistrate judge granted the plaintiff’s motion to compel production of “all documents of any type or kind or records of communications received by Defendant or any third party from a proposed class member requesting that Defendant not contact that consumer or customer,” Quicken objected to the ... Keep Reading »
Yahoo Enters $80 Million Securities Class Action Settlement After Data Breach
On March 2, Yahoo, Inc. (“Yahoo”) filed a proposed settlement in In re Yahoo Inc. Securities Litigation, which was filed in U.S. District Court in San Francisco. The $80 million proposed settlement relates to a securities class litigation stemming from Yahoo’s 2013 and 2014 data breaches. While many elements of the Yahoo securities class action may be factually unique, the settlement is a milestone because it is the first significant securities fraud settlement from a ... Keep Reading »
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