The class action hoped to prove that Kohl's ran deceitful or misleading ads that claimed certain items were on sale or marked down. In reality, the plaintiffs said, the company was still selling its wares for the original amount. The plaintiffs argued that they would never have purchased these items if they had known that Kohl's was still charging its full markup.
]]> When this class action sought certification from the trial court, that judge said that the plaintiffs had suffered no injury because they had not lost money. They merely paid the price that Kohl's asked.According to the 9th Circuit, however, "[p]rice advertisements matter. When a consumer purchases merchandise on the basis of false price information and when the consumer alleges that he would not have made the purchase but for the misrepresentation, he has standing to sue."
Following this decision, the case will go back to the trial court for more proceedings to further explore the plaintiffs' consumer fraud charges.
Source: Los Angeles Times, "Kohl's can be sued over sale ads, court says," Maura Dolan, May 22, 2013
]]>This week, another $75 million settlement between Penguin Books and 33 states is highlighting another important angle of class action litigation. Lawsuits like these can have a big forward-looking benefit for consumers everywhere.
]]> In other words, now that e-book publishers have been hauled into court over illegal price-fixing schemes, these companies will be less likely to try the same tricks again in the future. This means that the e-book marketplace will remain fair and more affordable for future consumers.Consumer fraud and antitrust class action lawsuits are an essential mechanism that allows individuals to accomplish a lot of good for society-even against well-funded and powerful corporate defendants.
Source: Christian Science Monitor, "Penguin Books settles with 33 states, consumers in e-book price-fixing suit," Molly Driscoll, May 23, 2013
]]>According to a lawsuit filed recently against Apple by California consumers, many iPhones shipped with defective power buttons. The small button on the top right corner of the iPhone is a pretty important component - users need to use this to turn the screen off and on. This lawsuit claims that Apple is aware of this defect and knows that a "flex cable" is behind the problem, causing the button to become unresponsive after some amount of use.
]]> Conveniently, Apple's warranty on the iPhone ends after one year - leaving many consumers in the lurch with defective phones. Consumer fraud class actions allow purchasers to hold companies accountable for problems like this.Source: Ars Technica, "Class action lawsuit targets iPhones with defective power buttons," Casey Johnston, May 15, 2013
]]>Perhaps unsurprisingly, Skechers' sales pitch did not translate to any real-world fitness improvements for its customers. Instead, around 520,000 customers joined together to hold Skechers accountable for these "unfounded claims." The plaintiffs launched a consumer fraud class action lawsuit against the shoe manufacturer and this week agreed to settle the case.
]]> Skechers will pay $40 million to the class of plaintiffs-compensating them for a large portion of the price paid for products like the Resistance Runner and Tone-Up shoes.Although Skechers also had to settle a complaint with the Federal Trade Commission over its allegedly dishonest advertisements, none of these plaintiffs would have had the resources to pursue the company individually.
Source: Fresno Bee, "Judge OKs class-action settlement over Skechers," Brett Barrouquere, May 13, 2013
]]>Californians should be aware of Proposition 65 and the benefits that it provides. Without a law like this, the burden is primarily on government agencies to determine whether a business's activities pose a chemical danger to the public. Unfortunately, the burden of this role is enormous and even usually effective agencies like the EPA cannot police and prevent all of the situations in which toxic chemical products can be harmful.
]]> Thus far, it appears that Governor Brown's proposals recognize the importance of this law. In addition to limiting the amount of attorneys fees that plaintiffs' lawyers can recover, the Governor wants to revisit and reevaluate chemical ratings with the benefit of more current research. The proposal also includes more detailed information about specific chemical exposure.While some critics would like to see more far-reaching attempts to make it easier for a few unscrupulous businesses to get around Proposition 65, the current plan appears to value the law's consumer protection role.
Source: Los Angeles Times, "Brown seeks to rewrite toxins law," Marc Lifsher, May 8, 2013
]]>Proposition 65 requires various businesses like manufacturers and retailers to place warning signs when consumers or other members of the public might encounter certain toxic chemicals such as known carcinogens. Private citizens are empowered under the statute to sue these businesses for any violations.
]]> This private enforcement mechanism is one component that has attracted a lot of frustration over the years. Some critics claim that the private lawsuits attract abuse, allowing private citizens to enrich themselves based on relatively minor violations.Governor Brown's proposed changes deal with exactly this situation. Check back later for more on this story.
Source: Los Angeles Times, "Brown seeks to rewrite toxins law," Marc Lifsher, May 8, 2013
]]>Why?
Under FDA regulations, the manufacturers of generic drugs must create labels that are identical to those used by brand-name manufacturers. In other words, generic manufacturers are unable to change warnings and other important information on their labels. Thus, if consumers are injured because of inadequate warnings on generic drug labels, it is ultimately the brand-name manufacturer that is responsible.
]]> An injured plaintiff can bring a case against the brand-name manufacturer on the basis of fraud or misrepresentation if he or she can show that there was reasonable reliance on that fraud or misrepresentation.In the California case Conte v. Wyeth, Inc., 168 Cal. App. 4th 89 (2008), the California Court of Appeals held that Reglan, a brand-name manufacturer, could be held accountable for injuries caused by metoclopramide, a generic version of the drug. Since the brand-name manufacturer should have known that metoclopramide would be used instead of Reglan, Reglan had a duty to warn, through product labeling, of potential injuries caused by metoclopramide.
Source: The National Law Review, “Alabama Supreme Court: Brand-Name Pharmaceutical Manufacturer Can Be Sued for Injury Caused by Generic Product,” Beth S. Rose, May 1, 2013.
]]>Consumers who purchased Sega’s Aliens: Colonial Marines claim they did not get what was advertised at trade show demos of the game. They are seeking permission to file a California District Court class action lawsuit against Sega and Gearbox, the companies that manufacture Aliens.
]]> According to the plaintiffs, the demos were very different from the game itself: “Each of the ‘actual gameplay’ demonstrations purported to show consumers exactly what they would be buying: a cutting edge video game with very specific features and qualities. Unfortunately for their fans, Defendants never told anyone — consumers, industry critics, reviewers or reports — that their ‘actual gameplay’ demonstration advertising campaign bore little resemblance to the retail product that would eventually be sold to a large community of unwitting purchasers.”The federal magistrate judge hearing the case has recommended that the parties come to an agreement through arbitration, which is a form of alternative dispute resolution where a third-party neutral (the arbitrator) listens to both sides of the case and makes a binding decision. The plaintiffs, however, do not believe that is an effective forum when there are numerous consumers who were likely influenced by trade show demonstrations and trailers when they purchased the product.
The plaintiffs also question Sony’s policy that prevents publication of professional reviews of the company’s games before the release date. They claim the policy played a role in preventing consumers from knowing what they were purchasing when they bought Aliens: Colonial Marines. The plaintiffs believe reviews would have made it known to potential consumers that the demos did not properly reflect the actual game play.
Source: Digital Trends, “Sega, Gearbox Face Lawsuits Over Allegedly Misleading Aliens: Colonial Marines Demos,” Michael Rougeau, May 1, 2013
]]>Credit Card Traps: Did a credit card company advertise a card that unfairly presented its benefits and hide terms? For example, some cards will not advertise that they start with low interest rates but raise the rates when a consumer makes a late payment. Others will have large fees that are unknown to an applicant. While not all of these practices are illegal, some are and those companies can be held accountable.
]]>Credit Card Surcharges: Under California law, retailers may not add a surcharge to credit card transactions, though they may offer a discount to people paying in cash. Improper charges can be disputed.
Credit Card Chargebacks: If you believe a credit card company has incorrectly charged you for something, you can challenge those charges. Consumers have "credit card chargeback rights," or rights to ask that a billing error to be corrected, such as unauthorized charges, charges for undelivered goods and charges for goods that were not delivered in a timely manner. Consumers also have rights to dispute charges under what is called "claims and defenses chargeback rights." See the California government's website on chargeback rights for more information.
If you believe a credit card company has acted illegally, you are probably not alone. An attorney can help you alert the right authorities and band together with similarly injured plaintiffs to hold the credit card company responsible.
]]>The Justice Department brought an antitrust lawsuit to block the merger between Grupo Modelo and ABI, stating that the merger would create a block on the U.S. beer market and could drive up beer prices. Corona is among the top five beer companies in the U.S.
]]> Anheuser-Busch wanted the merger in order to expand into Latin America and claimed it was not attempting to usurp the market. The merger would, however, give ABI 46 percent of the U.S. beer market and would create a duoply environment where ABI would control 46 percent and MillerCoors would control 26 percent of the market. The other beer manufacturers account for less than 6 percent of the market.By giving Constellation Brands, which is a wine producer, the rights to sell Corona and related brands, beer prices will stay down and the market will stay, "competitive, dynamic and quite healthy," according to assistant attorney general William J. Baer.
The U.S. government attempts to protect consumers by watching for mergers that could create monopolies or otherwise impact the market. Large companies, however, are not the only businesses that are guilty of antitrust activities and consumers are frequently affected by overly competitive practices. If you have been affected by a company's unfair competition, price fixing or another form of antitrust, you are probably not alone. Speak with an attorney today.
Source: The New York Times DealBook, "Antitrust Agreement in Merger of Brewers," Edward Wyatt, Apr. 19, 2013
Source: The New York Times DealBook, "Antitrust Agreement in Merger of Brewers," Edward Wyatt, Apr. 19, 2013
]]>Many experts doubt that the lull will remain. While there were fewer publicized scandals in the past year, it is hard to imagine that the number of securities fraud cases have diminished substantially. In fact, there have been more securities cases filed against the health industry than have been filed since 2003 (22 percent of all securities fraud cases were against the healthcare industry in 2012). Other numbers help paint the picture:
The smaller number of securities class action settlements does not signify a change in the court' perception of these cases. Securities class actions can be as effective as ever in holding companies accountable for misleading investors, mismanaging shares or making false promises. If you are the victim of securities fraud, chances are you are not alone. An attorney can help you evaluate your case and determine if there are others who have faced the same harm as you.
Learn more by visiting our page on securities class actions.
Source: Reuters, "Securities class action settlements hit decade low, PwC finds," Tom Hals, Apr. 16, 2013
]]>Multiple plaintiffs brought lawsuits against Apple for failing to honor its hardware warranties. According to the complaint, if an iPod or iPhone had been exposed to excess water (which Apple Stores determined by using a Liquid Contact Indicator), the warranty was void. Apple called this their "Liquid Damage Policy," which it has since rescinded.
]]> The settlement is not public, but individuals who submitted a claim through the class action lawsuit will receive, on average, $200 per person.When a company refuses to honor a consumer warranty, they can and should be held accountable. Unfortunately, individual plaintiffs will often shy away from bringing a lawsuit because the cost of litigation against a powerful company can easily outweigh the potential payout. That is why class action lawsuits are vital. In a class action, numerous plaintiffs with similar claims against the same company can band together to demand relief.
Source: Wired, "Apple Agrees to Pay $53M to Settle iPhone Warranty Lawsuit," David Kravets, Apr. 11, 2013
]]>Fisker may fit into an exception of the WARN Act, which allows for the immediate layoff of employees of companies who are faltering or face unforeseeable business circumstances. If Fisker Automotive is able to prove it falls into the exception, then the class action lawsuit will be unsuccessful on this count.
The lawsuit, however, also alleges that Fisker failed to notify the California Employment Development Department and the workforce enforcement board of the layoff.
]]> Fiskers is certainly not the first 100+ employee company to lay off employees without the required 60 days notice. Unfortunately, many employees do not know the law and believe "at will" means they can lose their job at any moment. The same problem occurs with other employment law violations; companies get away with breaking the law because employees do not know they have been the victims of an employment violation or feel it is not worth the money and effort to bring a lawsuit against their company.When multiple employees are harmed, however, they can band together to hold their employer accountable for its actions through a labor class action lawsuit. If you believe you have been harmed by your employer, whether through an improper lay off, violation of federal wage and hour laws or employment discrimination, speak up. You may be one of many individuals facing the same harm.
Source: Hybrid Cars, "Fiskar Faced With Class-Action Suit Over Mass Layoffs," Jeff Cobb, Apr. 8, 2013
]]>The evidence that class action plaintiffs present to a judge is crucial. With the right expert witnesses, it is possible to bring a case to trial -- and win.
]]> In a typical class action lawsuit, the plaintiff and defense attorneys will spend significant time developing their cases. Part of discovery will involve talking to experts and learning more about the product or company central to the dispute. When a side finds an expert that supports its side of the story, it will hire that expert to provide expert testimony, either on paper or as a witness in court.In some cases, expert testimony is so crucial that the case becomes a battle of the experts. So how do you ensure that you have the best experts for your class action case? Hire an experienced class action attorney. A law firm with experience handling class action cases may already have a network of experts at its disposal. If the right expert isn't among that network, the law firm would have the resources and know-how to find experts who could support the claim.
Source: Food Product Design, "Arizona Iced Tea Class-Action Lawsuit Crushed," Josh Long, Apr. 9, 2013
]]>Because the balls are so small in their original state, many children are tempted to put them in their mouths. If a child swallows one of the balls, it can expand quickly inside the body. One 8-month-old girl required emergency surgery when one of these balls expanded inside her small intestine. Doctors also warn that expanding balls could easily block a child's airway.
]]> Recognizing these dangers, the company responsible for this product recalled around 95,000 packages last December. In an unusual step, the CPSC has now stepped in to take an even closer look at these risks.In a case like this, a court could likely decide that the risk of children swallowing the balls is so obvious that the company should have anticipated the likelihood of injuries. If so, the company may have had a responsibility to change its design or take steps to keep the product out of the hands of small children. This means that the families of injured children could have strong product liability claims against this manufacturer.
Source: Consumer Reports, "Polymer balls raise alarm," May 2013
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