On September 17, the Seventh Circuit Court of Appeals denied a retailer’s petition for rehearing en banc of a three-judge panel opinion holding that plaintiffs whose credit card information was stolen in a data breach had standing to sue under Article III of the United States Constitution based on alleged fear of future identity theft. As we previously reported, the litigation arose from a cyberattack on luxury retailer Neiman Marcus over the 2013 holiday shopping season ... Keep Reading »
Eleventh Circuit Denies Petition For Rehearing In Lisk v. Lumber One
The Eleventh Circuit Court of Appeals denied a petition for rehearing en banc in the Lisk v. Lumber One Wood Preserving, LLC matter, where last month it held that the Alabama Deceptive Trade Practices Act’s restriction on private class actions does not apply in federal court; rather, federal rule 23 controls. See our prior post about that opinion. Lisk v. Lumber One Wood Preserving, LLC., No. 14-11714 (11th Cir. September 15, 2015). ... Keep Reading »
Third Circuit Reverses Denial of Class Certification in Complete Sham Telemarketing RICO Case
The United States Court of Appeals for the Third Circuit reversed the denial of class certification in a case brought against a bank and its payment processors that allegedly engaged in a fraudulent scheme to cause unauthorized debits from consumer bank accounts. Reynaldo Reyes, as class representative, filed suit in the Eastern District of Pennsylvania under the Racketeer Influenced and Corrupt Organizations Act (RICO) against Zions First National Bank (“Zions Bank”) ... Keep Reading »
New York Court Conditionally Certifies Class of Entry-Level Female Sales Representatives in Collective Action Under Equal Pay Act
A New York district court magistrate judge conditionally certified a class of past and current entry-level female sales representatives of Forest Laboratories, Inc. and Forest Pharmaceuticals, Inc. under the Equal Pay Act. The court found that the named plaintiffs had made a sufficient showing that they and the potential opt-ins plaintiffs “together were victims of a common policy or plan that violated the law.” Eleven named plaintiffs initially filed their lawsuit in ... Keep Reading »
First Circuit Holds an Unaccepted Rule 68 Offer Made Prior to Class Certification Won’t Moot Plaintiff’s Claims. Will Supreme Court Agree?
The First Circuit recently joined the Second, Fifth, Seventh, Ninth, and Eleventh Circuits in holding that a Rule 68 offer made prior to class certification and rejected by plaintiff does not moot the plaintiff’s claim. The plaintiff, a private high school, brought the action against the corporate developer of a college-entrance exam, alleging violations of the Telephone Consumer Protection Act and an analogous state statute related to unsolicited faxes it received. ... Keep Reading »
CAFA Jurisdiction: Cases Consolidated in California Cannot be Split by the Local Controversy Exception
Assuming its other requirements are satisfied, the local controversy exception to CAFA jurisdiction requires a district court to remand a class action if, during the three-year period preceding the filing of that action, another class action was filed asserting the same or similar factual allegations against any of the defendants on behalf of the same or other persons. But what happens when the class action, prior to its removal, was actually consolidated with the ... Keep Reading »
Fifth Circuit Holds Unaccepted Rule 68 Offer of Judgment Cannot Moot a Named Plaintiff’s Claim in a Putative Class Action
The defendant in a putative class action brought pursuant to the Electronic Funds Transfer Act (EFTA), 15 U.S.C. § 1693, et seq., tendered a Rule 68 offer of judgment to the named plaintiff before class certification briefing occurred. The defendant proposed to settle with the named plaintiff for the maximum allowable statutory damages for his individual claim, and to pay costs accrued and reasonable and necessary attorney fees, through the date of acceptance of the ... Keep Reading »
Seventh Circuit Affirms Approval of Class Action Coupon Settlement Despite “Clear Sailing” and “Kicker” Clauses and Potential Conflict of Interest
The Seventh Circuit affirmed a class action coupon settlement involving “clear sailing” and “kicker” clauses and a fee award based on the lodestar analysis rather than the value of the redeemed coupons, and notwithstanding a potential conflict of interest concerning the class, class counsel (Joseph Siprut), and one of the two representative plaintiffs (Adam Levitt, an attorney who served as co-counsel with Siprut in another class action). The plaintiffs asserted breach ... Keep Reading »
California District Court Finds CAFA’s Amount-in-Controversy Requirement Satisfied and No Local Controversy Alleged; Denies Motion to Remand
The Southern District of California denied a plaintiff’s motion to remand a putative class action removed pursuant to the Class Action Fairness Act (CAFA), where the plaintiff had alleged that the primary defendant’s product, Chobani yogurt, had become “the best-selling brand of Greek yogurt in the United States”; had annual revenues estimated at $1 billion in 2012; and had “collected tens of millions of dollars” in California alone (as the result of allegedly deceptive ... Keep Reading »
Internet Savvy Senior Lacks Standing to Bring Website Privacy Putative Class Claims Against AARP
The United States District Court for the District of Columbia recently dismissed a putative class action alleging that AARP violated its website privacy policy by allowing Facebook and Adobe to collect personal information about its users. The plaintiff alleged that AARP and its subsidiary AARP Services, Inc. (collectively, “AARP”), which advocate for individuals over the age of 50, breached their privacy policy by representing to users that certain third parties might ... Keep Reading »
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