The Ninth Circuit affirmed certification of putative class actions brought against ConAgra Foods, Inc. (“ConAgra”) by consumers who claimed that ConAgra’s “100% Natural” labels on Wesson cooking oils were false or misleading. The plaintiffs argued that the oils are “not natural” because they are made from bioengineered ingredients, and moved to certify eleven statewide classes of consumers who purchased the oils within the applicable statute of limitations periods. ... Keep Reading »
SCOTUS to Determine Enforceability of Class Action Waivers in Employment Contract Arbitration Clauses
Today the United States Supreme Court granted and consolidated three petitions for certiorari related to the validity of class action waiver clauses in employer/employee arbitration agreements. The Court has consolidated the petitions in Epic Systems Corp. v. Lewis (No. 16-285), Ernst & Young v. Morris (No. 16-300), and NLRB v. Murphy Oil USA, Inc. (No. 16-307). Classified previously blogged about the Ninth Circuit’s decision finding Ernst & Young’s class ... Keep Reading »
State Law Prohibiting Class Actions Does Not Preclude Court From Maintaining Certification and Approving Settlement Agreement
The Sixth Circuit recently affirmed approval of a class action settlement agreement, holding that “a post-settlement change in the law does not alter the binding nature of the parties' settlement agreement, nor does it violate Rule 23 . . . or the Rules Enabling Act.” The plaintiffs brought a class action against their former employers, alleging violations of the Kentucky Wage and Hour Act (KWHA). After the district court certified a class, the parties reached a ... Keep Reading »
Ninth Circuit Denies Rehearing En Banc, Requires Ex-Uber Drivers to Arbitrate Claims Individually
The Ninth Circuit denied rehearing en banc of its September order holding that the district court erred in deciding whether two drivers who sued Uber Technologies, Inc. (“Uber”) on behalf of themselves and a putative class over the use of background checks must arbitrate their claims individually. The consolidated cases concerned both 2013 and 2014 versions of agreements Uber drivers were required to sign. The agreements included mandatory arbitration clauses, and class ... 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 »
California Court Rejects Attempt to Overturn Judgment Based on Spokeo
A defendant who lost a bench trial in a certified class case alleging that it violated the Electronic Funds Transfer Act by forcing the plaintiff and class to use electronic funds transfer services to obtain loans sought to upend the verdict by arguing that the Supreme Court’s recent Spokeo decision made clear the plaintiff lacked Article III standing to sue. The court rejected that argument. In Spokeo, the Supreme Court ruled that for Article III standing to exist, a ... Keep Reading »
Divergent Views on Class Discovery
In two recent cases, California and Florida district courts reached divergent views on whether to permit wide-ranging class discovery prior to a certification decision. Interestingly, both decisions involved Ocwen companies. In Weiner, a RICO class action, the class plaintiffs sought discovery of defendants’ “internal communications relating to their decision to spin-off” a subsidiary because those communications ostensibly bore on “classwide intent to fraudulently ... Keep Reading »
Eleventh Circuit Clarifies CAFA Jurisdiction Continues After Dismissal of Class Claims
On November 22, the Eleventh Circuit clarified that Class Action Fairness Act (CAFA) jurisdiction is not eliminated when the class claims are dismissed before the class is certified. The plaintiff, an Alabama trucking company that had a fuel-discount with Pilot, filed a class action alleging that Pilot systematically shortchanged trucking companies with which it had discount arrangements by failing to give them the agreed-upon benefits. The class claims were ... Keep Reading »
Spokeo Gets Lyft Off
The Northern District of California dismissed a Fair Credit Reporting Act case against Lyft upon finding that plaintiff lacked Article III standing based on the Supreme Court's decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016). The court found that plaintiff did not suffer any actual injury, or a real threat of such injury, as a result of Lyft’s alleged FCRA violations. The court’s ruling was consistent with several recent district courts’ decisions based on ... Keep Reading »
Third Circuit Applies Presumption of Timeliness to Pre-Certification Motion to Intervene as Class Representative
This case concerned a federal antitrust class action involving a proposed class of Class 8 truck purchasers who alleged a conspiracy by several truck transmission suppliers and manufacturers to raise prices by eliminating competition among the manufacturers. At the class certification stage, defendants moved to dismiss the named plaintiff for lack of standing since it was not a direct purchaser of the truck transmissions at issue. Two months later, the named plaintiff’s ... Keep Reading »
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