The Ninth Circuit reversed the dismissal of a class action and instructed the district court to remand the case to state court, based on the local controversy exception to the Class Action Fairness Act (CAFA). In doing so, it held that a post-removal amended complaint may be considered to determine whether remand is appropriate. A group of Nevada citizens sued six separate entities in Nevada state court for illegal debt collection practices. After removal, the ... Keep Reading »
A Message From the Eighth Circuit Regarding the TCPA
The purpose of a telephone solicitation, rather than its content, determines whether it is prohibited telemarketing under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227 et seq. That is what the Eighth Circuit determined in a case arising from unsolicited telephone calls with prerecorded messages initiated for the purpose of promoting the motion picture, Last Ounce of Courage. The Golan family, who were registered on federal and state "do not call" ... Keep Reading »
SCOTUS Accepts Certiorari to Address Article III Standing in “No-Injury” FCRA Class Action
On April 27, the Supreme Court accepted certiorari review in Spokeo, Inc. v. Robins, 13-1339, to address whether consumers can establish Article III standing without actual harm or injury, by alleging a violation of a federal statute. "Spokeo is a people search engine that organizes White Page listings, Public Records and Social Network information to help you safely find and learn about people." Robins filed a putative class action against Spokeo, alleging it is a ... Keep Reading »
Middle District of Florida Remands Insurance Coverage Class Action, Reasoning Amount In Controversy Is Determined From Value Of Claim, Not Policy
The value of the claim at issue, not the value of the policy limit, is considered for purposes of determining the amount in controversy in an insurance coverage class action. That, the Middle District of Florida found, is the law in the Eleventh Circuit. The plaintiff in Faust v. Maxum Casualty Insurance Company filed in state court a class action against his insurer on behalf of persons covered for Medical Payments coverage under a Florida property, casualty, surety, ... Keep Reading »
Court Declines to Certify Class Alleging Off-Label Marketing of Cancer Drug
Third party payors ("TPPs") responsible for paying the costs of prescriptions for their beneficiaries sued Cephalon, Inc., alleging that it engaged in unlawful off-label marketing of Actiq, a drug approved to manage breakthrough cancer pain in certain patients. Plaintiffs argued that Cephalon's conduct caused plaintiffs to make excessive off-label prescription payments for Actiq to treat conditions not approved by the FDA and for whom less expensive pain management drugs ... Keep Reading »
Fifth Circuit Affirms Certification of Electronic Funds Transfer Act Class
In a case similar to its late-2014 decision in Mabary v. Home Town Bank, N.A., 771 F.3d 820 (5th Cir. 2014), the Fifth Circuit recently affirmed certification of a class of consumers who were charged a fee for using an automated teller machine (“ATM “) that allegedly lacked a fee notice on its exterior, in violation of the Electronic Funds Transfer Act (“EFTA”), 15 U.S.C. § 1693b(d)(3) (2011). See Frey v. First Nat. Bank Southwest, No. 13–10375, --- F. App’x ---, 2015 ... 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 »
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 »
District of Colorado Declines To Certify Deceptive Practices Class
The District of Colorado declined to certify a class in a case against Dollar Rent A Car where the Plaintiff alleged Dollar tricked renters into buying Loss Damage Waiver ("LDW"), supplemental liability insurance ("SLI"), and roadside assistance ("Roadsafe") (collectively "Add-On Products") that they had declined, or charged them without proper consent or contrary to disclosure requirements. Plaintiff alleged Dollar violated the Colorado Consumer Protection Act and ... Keep Reading »
Dismissal With Prejudice Of Single Action In MDL Is Immediately Appealable, SCOTUS Holds
When a putative class action is transferred and consolidated with others for coordinated pretrial proceedings in multidistrict litigation (“MDL”) under 28 U.S.C. § 1407, it ordinarily remains an independent action for purposes of finality under 28 U.S.C. § 1291. Thus, when a district court handling an MDL dismisses without leave to amend a single-count antitrust class action pending therein, the dismissal order brings that action to a close, and it is final and ... Keep Reading »