The Fourth Circuit recently clarified two points of law on which it had not previously spoken: (1) who bears the burden when a class member objects to a proposed settlement as unfair, unreasonable, and inadequate; and (2) whether an objecting class member can be required to release a valueless claim without compensation. 1988 Tr. for
Inside Class Actions
The latest developments and trends affecting class actions
Latest from Inside Class Actions - Page 39
9th Circuit Upholds Preliminary Injunction Against Prop. 65 Acrylamide Lawsuits
In a major victory for manufacturers of food and beverage products fighting acrylamide litigation under California’s Proposition 65 statute, the Ninth Circuit on March 17 upheld a preliminary injunction barring new lawsuits to enforce Prop. 65’s warning requirement for cancer as applied to acrylamide in food and beverage products, finding that the statute’s compulsory warnings…
Fintech Lawsuit Highlights True Lender Risk for Bank Partnership Lending Model
In the wake of rulings upholding federal regulators’ “valid when made” rules, a new lawsuit serves as a reminder that state regulators and class-action plaintiffs’ lawyers may continue to challenge the bank partnership lending model under the “true lender” doctrine.…
A Closer Look: D.C. Court of Appeals Endorses Broad Organizational Standing to Bring Consumer Protection Lawsuits
We previously reported on a surge of mislabeling suits filed in District of Columbia Superior Court, following lower court decisions that purported to grant “tester” plaintiffs—individuals and organizations that purchase products simply to test whether the representations about a product are true—a right to sue on behalf of the general public under the District of…
A Closer Look: New Law Ends Mandatory Arbitration for Sexual Assault and Sexual Harassment Claims
A new law signed by President Biden brings significant changes to employers’ ability to require arbitration of certain disputes with employees and could lead to an increase in sexual assault and sexual harassment claims against employers in court. On March 3, 2022, President Biden signed into law the “Ending Forced Arbitration of Sexual Assault…
Generic Title on Settlement Notice Email Prompts Court to Postpone Final Approval
A federal judge in Wisconsin recently underscored the importance of thoughtful email design when settling parties employ electronic notice. In Powers v. Filters Fast, LLC, No. 20-cv-982 (W.D. Wis. Feb. 24, 2022), ECF No. 65, the parties gave notice of a class action settlement through emails that used a generic subject line (“Legal Notice”) and…
Keurig Settles K-Cup Recycling Claims
Keurig has agreed to settle on a nationwide class basis a lawsuit alleging that the labeling of its K-Cup pods misleads consumers into believing that K-Cups are more widely recyclable than the coffee pods actually are.
The complaint, filed in 2018, alleged that Keurig marketed its products as recyclable, despite knowing that they “typically end[ed]…
A Closer Look: Avoiding a “Mass”-ive Arbitration Problem
Arbitration agreements have become a fixture of American contracts, and companies have turned to them as a strategy for reducing class action exposure. In recent years, plaintiffs have responded by initiating “mass arbitrations” – individual arbitrations filed on behalf of hundreds or thousands of customers or employees, which may immediately threaten companies with millions of…
9th Circuit Holds that Failure to Apply Correct Legal Standard is Fatal to Class Settlement Approval Even if Not Argued Before District Court
A recent Ninth Circuit decision emphasizes that it will vacate class settlement approvals whenever district courts fail to apply the proper legal standards to assess class settlements. In Saucillo v. Peck, 2022 WL 414692 (9th Cir. Feb. 11, 2022), the underlying dispute concerned allegations that a trucking company failed to follow a California labor law…
A Closer Look: Overdraft Fees Continue to Invite New Legal Challenges and Regulatory Scrutiny
Class-action litigation involving overdraft and nonsufficient funds charges is nothing new to many financial institutions. But in recent years, plaintiffs’ lawyers have shifted tactics and changed the types of practices they are targeting. Financial regulators have also signaled their intention to place increased focus on these charges. Financial institutions should therefore re-examine their account agreements…