The Supreme Court has held that a notice of removal requires only a “plausible allegation that the amount in controversy exceeds the jurisdictional threshold,” and confirmed that a notice of removal need not include evidence establishing the amount in controversy. In Dart Cherokee Basin Operating Co. v. Owens, the plaintiff alleged that defendants, Dart Cherokee Basin Operating Co. and Cherokee Basin Pipeline, LLC, underpaid royalties owed to putative class members and ... Keep Reading »
Eleventh Circuit Holds Unaccepted Rule 68 Offer To Named Plaintiffs Does Not Moot A Class Action
The Eleventh Circuit recently held that a defendant may not moot a class action through an unaccepted Federal Rule of Civil Procedure 68 offer of complete relief to the named plaintiffs—but not to class members—before the named plaintiffs move to certify the class. In doing so, the Eleventh Circuit joined the majority of circuits that have addressed the same issue. Named plaintiffs filed a class action in state court against Buccaneers Limited Partnership (“BLP”) ... Keep Reading »
No Pay Required for Amazon’s Warehouse Workers During Post-Shift Security Screening
On December 9, the Supreme Court held that hourly workers in Amazon warehouses need not be compensated for the time they spent waiting to undergo security screening at the end of their shifts. The case, Integrity Staffing Solutions, Inc. v. Busk, is the Court’s most recent opinion on the issue of compensatory time under the federal Fair Labor Standards Act (FLSA). Integrity Staffing Solutions provides staffing for Amazon warehouses nationwide. Hourly warehouse workers ... Keep Reading »
Seventh Circuit Rejects Another Settlement With Disproportionate Attorney Fees Compared to Class Member Benefits
The Seventh Circuit Court of Appeals rejected a class action settlement because class counsel would have received generous attorney fees for conferring only meager benefits to the class. Writing for the Court, just as he did a few months earlier in Eubank v. Pella Corp., 753 F.3d 718 (7th Cir. 2014), Judge Posner described this settlement as “a selfish deal between class counsel and defendant” that “disserves the class.” Plaintiffs sued NBTY and Rexall Sundown for ... Keep Reading »
Ninth Circuit Holds California Can’t Double-Dip By Seeking Restitution for Citizens Bound By Class Settlement
In the wake of a nationwide class action settlement of litigation against a manufacturer of a test claimed to accurately predict the gender of a fetus, the State of California (“State”) brought an enforcement action against the manufacturer for restitution for California citizens who purchased the test, as well as for civil penalties and injunctive relief. The defendant manufacturer removed to federal court and sought an injunction under the Anti-Injunction Act, arguing ... 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 »
California District Court Denies Certification Where Putative Class Members Lack Standing and Plaintiff Fails to Conduct Extensive Choice of Law Analysis Necessary to Support Nationwide Class
The United States District Court for the Eastern District of California recently denied class certification in a case alleging wrongdoing by a loan servicer in connection with the Home Affordable Modification Program (“HAMP”). Plaintiff brought the putative class action after defendant foreclosed on his home, seeking to represent a nationwide class of homeowners who had received permanent modification agreements (“PMAs”) for loan modifications that defendant failed to ... Keep Reading »
Second Circuit Affirms District Court’s Denial of Certification of Class of Investors Alleging Common Law Fraud Under New York Law
The Second Circuit affirmed the district court’s denial of class certification of a class of investors based on the appellants’ failure to satisfy the numerosity and commonality requirements of Rule 23(a). Following the collapse of the Cheyne SIV in 2007, a structured investment vehicle structured by Morgan Stanley, the appellants sought to certify a class of sophisticated institutional investors that purchased notes from the SIV between 2004 and 2007. The class action ... Keep Reading »
Division I Athlete Commences Collective Action Seeking Pay For Play
A complaint recently filed in the Southern District of Indiana alleges that the NCAA and its Division I Member Schools have jointly agreed and conspired to engage in a widespread pattern, policy, and practice of failing to pay division I student athletes in violation of the wage-and-hour provisions of the Fair Labor Standards Act (FLSA). Samantha Sackos, a former division I collegiate soccer player who played at the University of Houston, claims that she, and all ... Keep Reading »
Court Denies Motion to Remand, Rejecting Application of Home State and Local Controversy Exceptions to CAFA
The plaintiff filed a putative class action in Pennsylvania state court against two Pennsylvania defendants and one Virginia defendant, claiming that the defendants preyed on non-English speakers, illegally coercing them to enter into franchise agreements that circumvented the obligations of what were properly classified as employment relationships. The defendants removed under CAFA, and the plaintiff sought remand pursuant to CAFA’s home-state and local-controversy ... Keep Reading »
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