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Archives for September 2014

Pennsylvania District Court Certifies Class Despite Defendant’s Attempt To “Pick-Off” Class Representatives

by Dean A. Morande and Gary M. Pappas

A group of registered nurses formerly employed by the Department of Veterans Affairs sued the United States Office of Personnel Management (“OPM”) in a putative class action seeking declaratory and injunctive relief in connection with a recalculation of their retirement annuities that OPM was obligated to perform under the retroactive application of the Veterans Affairs Health Care Programs Enhancement Act (the “Enhancement Act”).  Plaintiffs promptly moved to certify a ... Keep Reading »

Texas High Court Holds State’s Unclaimed Property Act Does Not Preclude Cy Pres Distribution Of Unclaimed Class Action Settlement Proceeds

by Carlton Fields

In a 5-4 decision, the Texas Supreme Court held that the cy pres provision of a class action settlement was not subject to the state’s Unclaimed Property Act.  After the trial court  certified a class of subcontractors whose pay allegedly had been improperly docked by the defendant contractor, the parties settled the case on a class-wide basis agreeing that the defendant would issue refund checks to the aggrieved class members.  The settlement contained a cy pres ... Keep Reading »

Security Guards Unable To Secure Certification Without Commonality

by Jacob R. Hathorn

A California federal district court recently denied a motion for class certification because the evidence presented in connection with the motion refuted plaintiffs’ attempted showing of commonality through uniform exposure to unlawful corporate policies. Paragon provides security services to hundreds of federal government sites throughout California under contracts with the U.S. Department of Homeland Security’s Federal Protective Services.  The company was sued by ... Keep Reading »

Third Circuit Affirms District Court’s Denial Of Certification Of Nationwide Class Of Plaintiffs Alleging Consumer Fraud And Unjust Enrichment

by Clifton R. Gruhn

Plaintiffs alleged in their putative nationwide class action complaint that Quest Diagnostics was liable for consumer fraud, unjust enrichment, and violations of the Fair Debt Collections Practices Act for overbilling putative class members and, in some instances, sending them improper written demands from debt collectors.  The district court denied certification, holding that the fraud claims implicated the various laws of numerous states, making a class action ... Keep Reading »

Ninth Circuit Approves Statistical Sampling And Affirms Certification Of Overtime Class

by Jaret J. Fuente and Gary M. Pappas

The Ninth Circuit recently affirmed certification of a class of an estimated 800 current and former California-based Allstate Insurance Company adjusters who allege that Allstate has a practice or unofficial policy of requiring its hourly claims adjusters to work unpaid off-the-clock overtime in violation of California law. In certifying the class, the district court found that the question of whether Allstate had an unofficial policy of denying overtime payments while ... Keep Reading »

Texas District Court Denies Class Certification for Hedge Fund Investors on Numerosity and Predominance Grounds

by Amanda Romfh Jesteadt and Gary M. Pappas

In 2008, investors in the Parkcentral hedge fund lost as much as $3 billion dollars when Parkcentral’s investment in commercial mortgage-backed securities (“CMBS”) was devalued. The investors, limited partners of Parkcentral, sued employees of Parkcentral’s general partner alleging that they breached fiduciary duties by making material misrepresentations and omissions regarding the nature of Parkcentral’s investments and hedging strategy.  In particular, the investors ... Keep Reading »

District Court Cleans Up Whirlpool Washing Machine Class Definition

by Jaret J. Fuente

Having requested and obtained certification of a class of consumers who had purchased a number of Whirlpool Duet model washers allegedly susceptible to serious mold problems, Plaintiffs later sought to limit the class so as to exclude certain models.  Whirlpool opposed the modification and, instead, sought decertification.  The Northern District of Ohio granted Plaintiffs’ motion in part, modifying the class, and denied Whirlpool’s motion to decertify. In setting ... Keep Reading »

Seventh Circuit Addresses Burden of Proof Under CAFA’s Home State Exception, Affirms Denial of Remand and Award of Costs to Defendant Insurer, and Admonishes Class Counsel

by Carlton Fields

The Seventh Circuit recently addressed the applicability of the home state exception under the Class Action Fairness Act (“CAFA”).  The case arose from health insurer Right Choice Insurance Company’s withdrawal from the Illinois market and cancellation of its insurance policies.  Former policyholders filed a putative class action lawsuit in the United States District Court for the Southern District of Illinois alleging that cancellation of their policies violated ... Keep Reading »

California District Court Denies Motion to Strike Rule 68 Offer of Judgment to Putative Class Representative, But Grants Motions to Strike Certain Affirmative Defenses For Failure to Comply with Twombly’s and Iqbal’s Heightened Pleading Standard

by Carlton Fields

In a recent case in the United States District Court for the Northern District of California, a plaintiff brought a putative class action alleging that defendants, a creditor and a debt collection firm, sent debt collection notices that failed to disclose the current creditor’s name in violation of the Fair Debt Collection Practices Act (“FDCPA”) and the California equivalent.  One defendant made an offer of judgment to the plaintiff pursuant to Federal Rule of Civil ... Keep Reading »

Fourth Circuit Vacates Certification of Five Classes as “Manifestly Improper”

by Paul G. Williams

Plaintiffs, alleged owners of an interest in coalbed methane gas (“CBM”), brought five related putative class actions against defendants, CBM producers, for alleged failure to pay royalties and for a declaration that owners of gas estates – not owners of coal estates – were the owners of CBM.  The district court granted plaintiffs’ class certification motions, and defendants appealed.  Finding that class certification was “manifestly improper,” the Fourth Circuit granted ... Keep Reading »

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