The United States District Court for the Northern District of Texas recently denied certification of a putative securities law class after finding that plaintiff failed to put forth actual facts showing adequacy and predominance, as required to satisfy the “stringent standards” of Rule 23 pursuant to the Supreme Court’s decisions in Wal-Mart Stores, Inc. v. Dukes and Comcast Corp. v. Behrend, as well as the Fifth Circuit’s decision in the securities law context in Berger ... Keep Reading »
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Noodle This! The Yin and Yang of Two Courts, Two Antitrust Cases, Two Class Certification Motions, Two Daubert Challenges, Two Opposite Results, One Day Apart
Noodle this: Two significant orders on class certification in antitrust matters issued last week. Both were heavily influenced by the threshold determination of Daubert challenges to the plaintiffs’ expert evidence. In one court, the Daubert motions were denied and the classes were certified. In the other court, the expert evidence was excluded and the class certification requests were denied (and, indeed, two related classes were decertified). On January 19, 2017, ... Keep Reading »
The Future of Standing in Data Breach Class Actions
In today’s world, as technology costs decrease and personal information becomes more valuable on the black market, data breaches have seemingly joined the ranks of death and taxes as certainties. Add to that litigation: companies suffering data breaches face exposure to lawsuits by consumers, employees, and even financial institutions. One particular concern for companies is the possibility of costly consumer class actions. Though such lawsuits still account for fewer ... Keep Reading »
Third Circuit Creates Framework for Analyzing Numerosity
The Third Circuit recently vacated class certification, granted by the Eastern District of Pennsylvania after nearly a decade of litigation, in an antitrust case alleging that a pharmaceutical company entered into agreements with four generic drug makers that, acting together, delayed the sale of generic drugs and prevented the creation of a competitive market. In the second part of its panel opinion regarding predominance under Federal Rule of Civil Procedure 23(b)(3), ... Keep Reading »
The Future of Class Actions: The Impact of Justice Scalia’s Death on Upcoming Rulings
There is no doubt that the death of Supreme Court Justice Antonin Scalia will have major repercussions on Supreme Court jurisprudence. A 30-year veteran of the Court, Justice Scalia was known for his originalist positions and scathing dissents. He was also the fifth conservative vote on a court that now finds itself divided, which has not only set off a bitter political fight regarding his replacement, but could have significant implications for litigants. Class ... Keep Reading »
For Want of a Damages Model, Certification Was Lost
Khasin v. R. C. Bigelow, Inc., No. 12-CV-02204-WHO, 2016 WL 1213767 (N.D. Cal. Mar. 29, 2016), provides a recent example of a class-certification denial premised on the “damages model” rule expressed in Comcast Corp. v. Behrend, 133 S.Ct. 1426, 1433 (2013). As the Northern District of California expressed it: “To satisfy Rule 23(b)(3)’s predominance requirement, a plaintiff must demonstrate that ‘damages are capable of measurement on a classwide basis….’ At class ... Keep Reading »
Reverse Cycle! Eleventh Circuit Reverses “Smelly Washing Machine” Class Certification Due to Outmoded Standard
In the latest class action involving front-loading washing machines, the Eleventh Circuit reversed the certification of two statewide Texas and California classes of purchasers contending that the front door seal on early models of the appliances was defective and created a foul odor. In so ruling, the court bucked the trend of the Sixth and Seventh Circuits, which had affirmed certification of similar classes. See In re Whirlpool Corp. Front-Loading Washer Prods. Liab. ... Keep Reading »
Tablet Class Damages Model Doesn’t Tabulate … For Now
The Central District of California denied certification of a class that otherwise met the requirements of Rule 23 because the damages model proposed by plaintiff’s expert did not establish a reliable method for calculating classwide damages. Plaintiff sought to certify a class of purchasers of Fuhu’s “Nabi” line of rechargeable tablets for children. Plaintiff claimed that the tablets’ charging capabilities were defective and that Fuhu misrepresented the tablets’ ... Keep Reading »
Arbitration Awards Prove an Obstacle to Class Claims
Two recent decisions illustrate the impact arbitration provisions can have on the availability of classwide relief. In Kaspers v. Comcast Corp., plaintiff, a Comcast customer, refused to pay for certain billed services and had his debt referred to a collection agency. Plaintiff submitted the dispute to the American Arbitration Association (AAA) pursuant to a contractual arbitration provision. When the AAA refused to arbitrate due to an alleged defect in the ... Keep Reading »
Ninth Circuit Holds District Court Erred In Denying Certification To Class Of Google Advertisers
A Ninth Circuit panel reversed a district court’s order denying certification of a putative nationwide class of internet advertisers, holding that the district court erred in finding that plaintiff failed to satisfy Rule 23(b)(3)’s predominance requirement. Plaintiff’s class action complaint alleged that Google violated California’s Unfair Competition Law and Fair Advertising Law by failing to disclose that some of Google’s AdWords ads would appear on parked domains and ... Keep Reading »