A New York district court granted certification in an ERISA class action brought by employees of Deutsche Bank alleging the individual fiduciaries of the company’s retirement plan engaged in self-dealing and mismanagement of its 401K plan. The court certified the class under Rule 23(b)(1)(B), which authorizes class actions when prosecuting separate actions would create a risk of decisions that would be dispositive of the interest of other members not parties to the ... Keep Reading »
Which Comes First Standing or Class Certification? Northern District of Illinois Weighs In
The Northern District of Illinois recently waded into the conflict between standing and class certification when it held that a putative class representative must demonstrate standing to assert each claim before the motion for class certification. In the case, plaintiff Michael Muir filed a putative class action against herbal supplement manufacturer Nature’s Bounty for claims related to an alleged misrepresentation regarding an ingredient’s prevalence in the supplement. ... Keep Reading »
Ninth Circuit Snubs Stolt-Nielsen, Holds Generic Employee Arbitration Agreement Permits Class-wide Arbitration
After an employer allegedly released personally identifiable information of its employees as the result of a phishing scam, plaintiff employee filed a putative class action lawsuit, alleging claims including negligence, breach of contract, invasion of privacy, and other claims. The employer moved to compel bilateral arbitration pursuant to the arbitration agreement plaintiff signed in connection with his employment. The district court found that the arbitration agreement ... Keep Reading »
No Treat for CFPB: Trump, Congress Override Rule on Class Action Waivers
On November 1, President Trump signed legislation disapproving a CFPB rule designed to prohibit class action waivers in certain consumer financial services contracts. In so doing, Trump rejected a last minute personal appeal from Obama-appointed CFPB head Richard Cordray to save the rule. The legislation had been awaiting the President’s signature since October 24, when Vice President Mike Pence cast the tie-breaking vote on a Senate-approved resolution under the ... Keep Reading »
Ninth Circuit Says Plaintiff Might Get Fooled Again
Last week the Ninth Circuit reopened a key avenue in consumer false advertising class actions – injunctive relief. A growing number of trial courts had dismissed those claims, reasoning that plaintiffs who know of the alleged fraud aren’t at risk of being fooled again. No more. In Davidson v. Kimberly-Clark Corporation, the Ninth Circuit held that a plaintiff who alleges that so-called “flushable wipes” are not actually flushable has standing to sue the seller of these ... Keep Reading »
Food for Thought: Liability-Only Class Certification Denied for Claims That “No Sugar Added” Juice Labels Misled Consumers Into Thinking the Juice Had Fewer Calories
Plaintiff’s putative class action alleged that defendant Mott’s violated FDA regulations and California’s Sherman Law and Unfair Competition Law when it labeled and sold its 100 percent apple juice with the label “No Sugar Added,” which plaintiff claimed misled consumers into thinking the juice had fewer calories than its competitors. For some reason, Plaintiff sought issue-specific class certification on liability only pursuant to Rule 23(c)(4). The district court ... Keep Reading »
The Continuing Saga of Standing in Data Breach Class Actions: The 8th Circuit Weighs In
We previously reported on the developing circuit split over Article III standing in data breach class action cases. In August, the D.C. Circuit Court joined the Sixth, Seventh, and Ninth Circuits in finding that the injury-in-fact requirement for Article III standing can be satisfied by fear of identity theft following a data breach. Now, the Eighth Circuit has weighed in with two new decisions that evidence a narrower, more nuanced approach to the standing issue. In ... Keep Reading »
Supreme Court Asked to Resolve Circuit Split Over Applicability of American Pipe Tolling to Successive Class Actions
We previously blogged on whether the Supreme Court’s ruling in American Pipe applies to toll the statute of limitations for successive putative class actions. In Resh v. China Agritech, Inc., the Ninth Circuit held that American Pipe tolled the limitations period for putative class actions by absent class members — thus theoretically permitting endless relitigation of certification denials. As we predicted, a defendant in Resh has filed a petition for writ of certiorari ... Keep Reading »
Ninth Circuit Tolls Rule 23(f) Deadline, Revives Aphrodisiac Class Action
Within 10 days after the district court decertified a Rule 23(b)(3) aphrodisiac dietary supplement class for failure to show a class wide method for calculating damages, plaintiff orally advised the court of his intention to seek reconsideration. The district court then set a 10-day deadline for filing a motion for reconsideration — in other words, 20 days after the decertification order. Plaintiff complied with the court’s schedule. The district court denied the motion ... Keep Reading »
Circuit Court Finds Putative Class Affidavits, Combined With Other Records, May Satisfy Ascertainability Requirement
Defendants BMW and Creditsmarts were parties to a marketing agreement through which BMW offered its direct automotive “up2drive” loans to borrowers at participating independent car dealers through Creditsmarts’ internet-based business-to-business lending platform. Creditsmarts used a third party, Westfax, to fax over 20,000 advertisements to independent car dealers during a 30-day period. Plaintiff City Select Auto Sales received one of these faxes and brought a putative ... Keep Reading »
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