In an opinion yesterday, Judge Engelmayer dismissed a class action accusing Whole Foods of exaggerating the weights of certain pre-packaged foods, so as to overcharge customers. The genesis of the suit was an analysis by New York City’s Department of Consumer Affairs (DCA) finding that 89% of tested products had incorrect weights. The lead plaintiff, … Continue Reading
Yesterday, Judge Rakoff sanctioned an attorney for an objector to the $3 billion Petrobras securities litigation settlement (see our full coverage of the Petrobras litigation here). Judge Rakoff had approved the settlement over the objections, after which the objectors filed an appeal. According to the class plaintiff, the appeals were part of an “extortionist agenda” … Continue Reading
In an opinion today, Judge Stein denied a motion to decertify a class action against the dating service “It’s Just Lunch” (see our prior coverage here) and concluded that many of the objections to the class could be solved by modifying the previous class definition so that there was a firm end date for the … Continue Reading
Today, Judge Rakoff rejected an attempt by the parties in the Petrobras securities litigation (see our prior coverage here) to keep parts of the settlement agreement in that case out of the public record. Judge Rakoff had previously rebuffed the parties’ request to keep parts of the settlement agreement confidential, and the parties had renewed … Continue Reading
In an opinion Friday, Judge Oetken refused to dismiss a putative class action brought by Applebee’s patrons who allege that the tabletop computer tablets at the Broadway and Times Square locations force customers to leave a minimum tip of either 15% or 18%, and thereby deceive customers into believing tipping is mandatory, in violation of … Continue Reading
In an opinion Wednesday, Judge Pauley ruled that a securities class action plaintiff, Benjamin Gross, could serve in that role notwithstanding that co-lead counsel for the class, Jack Zwick, is his brother-in-law, and notwithstanding that neither promptly disclosed the relationship:… Continue Reading
In an opinion yesterday, Judge Preska refused to certify as a class action a case alleging price fixing in the digital music industry. Among other reasons, she found that widespread pirating would raise “unclean hand” defenses that could not be determined on a classwide basis: Defendants note that two of the Proposed Class Representatives admitted … Continue Reading
In an opinion yesterday, Judge Caproni warned Christopher Bandas, an attorney who serially files class action objections, about his apparent practice of attempting to use local counsel as a shield against sanctions, though she ultimately declined to sanction Mr. Bandas: Bandas’ failure to provide any legitimate support for [the class objection] would be enough to … Continue Reading
In an opinion last week concerning a class action fee award, Judge Pauley reduced the requested $360 hourly rate for temporary associates at the plaintiff’s law firm, because he concluded they were functionally contract attorneys, who are ordinarily paid less:… Continue Reading
This week, Judge Seibel dismissed a putative class action against the makers of Muscle Milk and other protein powder products. The plaintiff alleged that the products were mislabeled under the Food, Drug, and Cosmetic Act, as they contained unnecessary empty space (or “slack fill”) that represented up to 30% of the container’s volume. Judge Seibel found that these allegations alone … Continue Reading
In an opinion Friday, the Second Circuit affirmed Judge Forrest’s dismissal of a complaint (see our prior coverage here) accusing stock exchanges of improperly allowing high-frequency traders to pay to obtain and trade on market data faster than other investors — the conduct at issue in the Michael Lewis book “Flash Boys.” The Second Circuit agreed that … Continue Reading
This week, Mondelez Global moved to dismiss a putative class action led by a consumer who allegedly bought an under-filled container of Sour Patch Kids candy from a movie theater in Manhattan. The complaint alleges that the candy’s labeling is misleading, as consumers purchased far less candy than they believed due to large amounts of empty … Continue Reading
Last week, Judge Karas denied in part a motion to dismiss a putative class action against Nestle Purina, maker of the “Beggin’ Strips” line of dog treats. The suit, on behalf of New York consumers who purchased the treats, alleged that Nestle Purina’s advertisements created the impression that bacon was a key ingredient in the … Continue Reading
Last week, Judge Rakoff held that a class action of transgender individuals challenging the coverage of gender dysphoria treatments under New York’s Medicaid program will proceed to trial. Specifically, the class challenged the New York Department of Health (“DOH”)’s exclusion of coverage for gender reassignment and hormone therapy for individuals under 18, and a blanket ban on “cosmetic” procedures … Continue Reading
Last week, Judge Rakoff denied a request from the defendants in a group of Petrobras securities cases to stay a September trial date pending the Second Circuit’s consideration of an interlocutory appeal of class certification. The defendants argued that the Second Circuit appeal was on an expedited schedule, and that significant expense could be saved in the … Continue Reading
Today, the New York Taxi Workers Alliance filed a class action complaint on behalf roughly 5,000 New York City Uber drivers against Uber Technologies and its related entities. The complaint alleges that Uber’s drivers are misclassified as independent contractors and that Uber’s compensation scheme falls far below statutory minimum wage and overtime requirements.… Continue Reading
In an opinion today, Judge Furman largely denied a motion to dismiss the city of Perry, Iowa’s putative class action (first covered here) against the makers of so-called “flushable” wipes that allegedly are not flushable at all and allegedly damage the city’s sewer systems.… Continue Reading
A putative class action filed last week alleges that Starbucks’ espresso beverages contain fewer fluid ounces than advertised due to an alleged company-wide policy of under-filling beverage cups. According to the complaint, two representative beverages purchased at a Manhattan Starbucks included roughly 15% less volume than advertised. The proposed class includes all persons or entities … Continue Reading
The Second Circuit today held, in a shareholder class action accusing Pfizer of concealing the cardiovascular risks of two drugs, that Judge Swain should not have excluded entirely the testimony of the plaintiffs’ damages expert — a decision which had effectively ended the case (see our prior posts here and here). The Second Circuit agreed with Judge … Continue Reading
Yesterday, Judge Torres dismissed a putative class action of foreign models against Trump Model Management and two of its officers. The models brought claims under the FLSA, the Immigration and Nationality Act (INA), and RICO, alleging that Trump Model Management had recruited them to come to the United States on H-1B visas but then underpaid … Continue Reading
In an opinion today, Judge Oetken allowed portions of securities class action against the asset management firm Och-Ziff Capital Management to proceed past a motion to dismiss. Och-Ziff had said in a series of public filings: “We are not currently subject to any pending regulatory, administrative or arbitration proceedings that we expect to have a … Continue Reading
In an opinion Friday, Judge Koeltl dismissed a shareholder class action against the movie studio Lions Gate. The case concerned how the company disclosed an SEC enforcement action over how Lions Gate handled various transactions designed to ward off efforts by investor Carl Icahn for control. The SEC action was ultimately settled for $7.5 million, and the … Continue Reading
In an opinion yesterday, Judge Scheindlin denied class certification in a proposed class action accusing the New York City Housing Authority of systematically under-compensating employees based on their race. Among other reasons for the ruling, Judge Scheindlin found that class counsel was not up to the task:… Continue Reading
Yesterday, Judge Sweet granted in part a motion for sanctions against the City of New York and the NYPD for spoliation of evidence in a class action over the NYPD’s alleged quotas for issuing summonses even when the officers lacked probable cause. Judge Sweet found that the City failed to implement and maintain a litigation … Continue Reading
