Inside Class Actions

The latest developments and trends affecting class actions

Latest from Inside Class Actions

In January 2021 Short Squeeze Trading Litigation (No. 22-11873), the Eleventh Circuit affirmed the dismissal of a case brought by retail investors alleging that Robinhood, a zero-fee stock brokerage platform, conspired with Citadel Securities, a high-frequency trading firm and short-seller, to block trading in “meme stocks” like GameStop, AMC Entertainment, and Bed Bath & Beyond. 

In a putative class action in the District of Delaware against Match Group, Inc., a magistrate judge has recommended that a motion to dismiss be granted based on finding that alleged misrepresentations were non-actionable puffery, opinion, and/or forward-looking statements.  The opinion offers a useful analysis, with examples, of how these concepts are appropriately applied.

Match

In Davidson v. Sprout Foods, Inc., — F.4th —, 2024 WL 3213277 (9th Cir. June 28, 2024), a divided Ninth Circuit panel held that private plaintiffs can bring claims for violations of California’s food labeling law that mirror federal law requirements, even though private plaintiffs lack a cause of action to enforce federal law directly. 

An Illinois federal court has dismissed a proposed class action alleging X Corp. violated the state’s Biometric Information Privacy Act (“BIPA”) through its use of PhotoDNA software to create “hashes” of images to scan for nudity and related content. The court held that Plaintiff failed to allege that the hashes identified photo subjects and therefore

In a case of first impression, the Ninth Circuit recently held that when there is ambiguity about the scope of a putative or certified class, American Pipe statute of limitations tolling should generally apply to potentially excluded class members.  This question is likely to arise where a proposed class definition is narrowed during the course

Last week, the Supreme Court granted certiorari in NVIDIA Corp. v. E. Ohman J:or Fonder AB to address two important questions on the standard for pleading securities fraud claims under the Private Securities Litigation Reform Act (“PSLRA”): (1) whether plaintiffs seeking to allege scienter under the PSLRA based on allegations about internal company documents must