The Eleventh Circuit has doubled down on its prior holding that a pending class action will not toll the statute of limitations for a later class action seeking to represent the same class. Plaintiff brought a class action alleging violations of the Telephone Consumer Protection Act, which carries a four-year statute of limitations. The state court granted summary judgment against plaintiff for lack of standing. A new plaintiff then sought to represent the class in ... Keep Reading »
Nevada Federal District Court Follows National Trend, Dismisses Data Breach Class Action for Lack of Standing
In granting a motion to dismiss a data breach putative class action lawsuit, the District of Nevada joined the majority of federal district courts in holding that plaintiffs whose personal information was stolen lack Article III standing to sue in federal court. The case derived from a 2012 breach of Zappos.com, Inc.’s servers in which hackers stole 24 million customers' personal information. Zappos moved to dismiss the case for lack of standing because, it alleged, ... Keep Reading »
Class Action Plaintiffs’ Failure to Appear at Deposition Deemed Not Prejudicial Enough for Dismissal
In a class action brought against Amtrak, two plaintiffs, Guerra and Whitesides, both of whom had submitted declarations in support of plaintiffs' motion for class certification, failed to appear at their scheduled depositions. Defendants sought an award of costs and fees and, in addition, the dismissal with prejudice of the legal claims of Guerra and Whitesides, arguing that only a dismissal would remedy the misconduct and prevent plaintiffs' counsel from picking and ... Keep Reading »
Regulatory Settlement Proves Major Obstacle for Certification of Minor Class of Google In-App Purchases
Google sells apps on its Play Store that allow users to make in-app purchases, typically the buying of “currency” for use in app-based games. This putative class action alleged that the games were aimed at minor children and allowed them to make in-app purchases unobstructed for a period of 30 minutes after a password was entered. As a result, minors were able to make one click, large-dollar-amount purchases without parental authorization. Prior to the filing of the ... Keep Reading »
Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions
In Conners v. Gusano's Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding arbitration policy on current employees that specifically prevented current employees from joining plaintiffs in the collective action. The district court enjoined defendant from enforcing the arbitration agreement as to any current employees who chose to ... Keep Reading »
Second Circuit Affirms Certification of Consumer Debt Collection Class, Distinguishing Comcast v. Behrend
These cases, on a consolidated appeal, involved three defendants: a company that purchased consumer debts, a debt collection law firm, and a process server. Plaintiffs had each been sued in various debt collection actions by defendants. Plaintiffs alleged that defendants obtained default judgments against them fraudulently by using a “default judgment mill,” whereby defendants would purchase the debt, issue summonses and complaints en masse, and automatically generate ... Keep Reading »
Insurance Balance Billing Class Fails Rule 23’s Requirements
Plaintiff filed a putative class action in Arkansas state court against his automobile insurer for alleged failure to pay the full amount it was contractually required to pay for his medical bills following a car accident. Specifically, the defendant insurer allegedly paid a reduced in-network rate comparable to that negotiated by health insurers, which plaintiff argued improperly left him – and a putative class of similarly situated policyholders – to pay the ... Keep Reading »
Ninth and Tenth Circuits Address Removal Under CAFA’s “Mass Action” and “State Action” Provisions
In Corber v. Xanodyne Pharmaceuticals, the Ninth Circuit – on rehearing en banc – examined the applicability of the “mass action” provision of CAFA, which provides federal jurisdiction for any civil action in which monetary relief claims of 100 or more persons are “proposed to be tried jointly.” Pursuant to California Code of Civil Procedure 404.1, plaintiffs moved for coordination of their cases alleging injuries relating to ingestion of a drug ingredient. Defendants ... Keep Reading »
Court Grants Motion to Strike Class Allegations
In granting a recent motion to strike class allegations, the Northern District of Illinois made two notable observations about such motions: first, they are not disfavored, but rather an appropriate device for determining whether a class action can proceed; and second, that in analyzing the putative class for conflicts, the court is not limited to the face of the complaint. In the case, plaintiff brought a putative class action alleging her employer withheld actual ... Keep Reading »
District Court Certifies Class Challenging ERISA Plan Amendment
The Eastern District of Michigan has certified a class of ERISA plan participants challenging an amendment which, in attempt to address the plan’s underfunded status, reduced their monthly disability payments. The Court certified a class of recipients of disability retirement benefits under the plan, rejecting challenges to numerosity, adequacy, and commonality. Under the numerosity analysis, the Court did not agree with defendants that joinder was practicable simply ... Keep Reading »