Case Filings Alert™ reports on new cases filed in courts around the country, alerting you to significant new cases at the beginning of the litigation process, long before the case is settled or a decision handed down. For each case reported on, the full complaint and docket information are included, so you will be able to follow the case as it works its way through the litigation process and obtain documents filed in the case.
Case Filings Alert covers a wide range of civil litigation subjects including: antitrust/unfair trade, constitution, consumer fraud, cybersecurity, data privacy, environment, intellectual property, labor & employment, personal injury/product liability, securities, among others.
Editor: Robert S. Want (rwant@CaseFilingsAlert.com). Copyright © 2024 WANT Publishing Co. Other services include NationsCourts.com (comprehensive guide to the nation’s federal, state, and county courts), MDLCases.com (introduction to multidistrict litigation, and listing of pending MDL cases), and LegalEditor.com (editing, writing and proofreading services).
October 15, 2024 – Antitrust
Class Action Accuses Amazon of Audiobook Monopoly
Amazon.com faces a proposed class action filed in Seattle federal court claiming that, through its Audible unit, it has monopolized the retail market for audiobooks, leading authors to overpay for the distribution of their works.
Plaintiff in her lawsuit alleges Amazon is violating U.S. antitrust law by charging higher distribution fees for writers who do not exclusively use the company’s e-commerce platform. Amazon has used exclusivity agreements “to lock up content,” impairing the ability of rivals to compete and affecting billions of dollars in audiobook sales, plaintiff says.
According to the complaint, Audible is the world’s largest audiobook retailer, accounting for more than 60% of domestic purchasing compared with about 20% for Apple. The suit seeks more than $5 million in damages and class action status for thousands of authors who paid a distribution fee to Amazon of at least 60% on sales. That fee increases to 75% for “non-exclusive” audiobooks that are sold on Amazon and elsewhere, the complaint says.
October 14, 2024 – Product Liability
Lawsuit Alleges Infotainment System Defect in 2021-2024 Chrysler, Ram, Jeep, Dodge Vehicles
A proposed class action against FCA US alleges a defect in the automaker’s Uconnect infotainment system in certain model-year Chrysler, Ram, Jeep, and Dodge vehicles that can potentially cause driver problems.
According to the complaint filed in Detroit federal court, the widespread Uconnect system defect is the subject of numerous accusations from drivers who say they’ve experienced the malfunction of various safety, navigation, communication, and entertainment features while driving certain vehicle models, including 2021-2024 Chrysler Pacifica, 2022-2024 Ram 1500, 2500 and 3500, 2022-2024 Ram Chassis Cab, and others.
In particular, the complaint says, drivers have complained of the Uconnect system screens intermittently and inexplicably freezing, going black, glitching, rebooting, or otherwise becoming inoperable. These Uconnect failures can lead to issues with a vehicle’s GPS navigation system, radio and audio systems, Bluetooth connectivity, rearview backup camera, display screen, touchscreen buttons, hands-free cell phone functionality, and more.
October 10, 2024 – Constitution
Virginia NAACP Sues School Board for Restoring Confederate Names
The Virginia NAACP has sued a county school board over its reinstatement of Confederate military names to two schools, accusing the board of subjecting Black students to a racially discriminatory educational environment.
The school board in Shenandoah County voted 5-1 in May 2024 to revert the name of Mountain View High School back to Stonewall Jackson High School, and that of Honey Run Elementary to Ashby Lee Elementary, according to the complaint filed in federal court in Harrisonburg, Va. The school names refer to military leaders of the Confederacy.
The plaintiffs argue in their suit that the decision to restore the names endorses racial discrimination, violates students’ rights to an equal education, and subjects them to psychological harm. The plaintiffs also contend that the U.S. Constitution’s Equal Protection Clause prohibits racial discrimination in state-supported institutions. For example, the suit says, an incoming freshman who is Black would be forced to play sports as a member of the Stonewall Jackson “Generals” and would have to wear a uniform “adorned with a name and logo that symbolizes hatred, White supremacy, and Massive Resistance to integration.”
October 9, 2024 – Labor & Employment
Older Worker Says Defense Contractor Discriminates by Seeking Recent College Grads
A major defense contractor, RTX Corporation, has been sued in a proposed class action over allegations that it discriminates against older workers in job ads.
The lawsuit, filed in federal court in Boston, accuses RTX, formally known as Raytheon Technologies Corp., of posting ads that target younger workers at the expense of their older peers in violation of the federal Age Discrimination in Employment Act (ADEA). “Raytheon routinely publishes job postings for numerous jobs where the only basic qualification is being a recent college graduate and where Raytheon unlawfully indicates a preference for younger workers and deters older workers from applying,” the suit claims.
The plaintiff in the case, 67 years old, says he applied for several positions at the company since 2019. When denied employment, plaintiff says he filed a complaint with the EEOC alleging he wasn’t considered for these jobs, and the EEOC found he was denied due to his age. The EEOC also found Raytheon’s job advertisements violated the ADEA, according to the complaint.
October 8, 2024 – Antitrust
Equifax Accused of Antitrust Violations Over Work Verification Services
Data analytics giant Equifax has been accused by two home mortgage lenders of monopolizing the market for electronic income and employment verification services, resulting in higher prices.
In a proposed class action, plaintiffs Greystone Mortgage and First Financial Lending allege that Equifax had a “stranglehold” over a verification process that is a critical part of consumer finance. According to the complaint filed in Philadelphia federal court, lenders, property managers, and others rely on their quick ability to electronically verify an applicant’s income and employment for mortgages, car loans, and rental apartment agreements. Manually calling employers can be slow, the complaint says.
Plaintiffs say in their lawsuit that Equifax, which is best known for providing credit history reports, has violated antitrust law through exclusive contracts and buying up would-be competitors. This industry domination, plaintiffs argue, has allowed Equifax to charge for its services “far higher than a competitive market would bear.” The case was brought on behalf of at least tens of thousands of purchasers of Equifax’s income and employment services.
October 7, 2024 – Consumer Fraud
Jack Daniel’s Country Cocktails Contain No Whiskey, Lawsuit Alleges
A proposed class action filed in Manhattan federal court alleges that Jack Daniel’s Country Cocktail beverages are falsely advertised as they do not contain whiskey.
According to the complaint, defendant Brown-Forman Corp. has labeled the drinks in a way that leads consumers to expect the Country Cocktail that’s “Best Served Ice Cold” to contain the fundamental ingredients of a Lynchburg lemonade. However, the complaint says, the beverage contains only a negligible amount of whiskey, if any, and is actually a “malt beverage” rather than a drink made with distilled spirits.
Plaintiffs in their lawsuit contend that the labeling is misleading because the absence of whiskey is only disclosed in small-print statements found on the side and bottom of the can or bottle, which identify the drink as a “Flavored Beer” and a “Premium Malt Beverage With Natural Flavors and Certified Colors Added.” Further, plaintiffs argue, defendant’s use of the Jack Daniel’s brand name — along with its trademark colors, fonts and stylistic elements — also creates a false impression that the product contains whiskey.
October 3, 2024 – Cybersecurity
Nissan Data Breach Lawsuit Alleges Info of at Least 53K Employees Exposed in Cyberattack
Nissan North America has been hit with a proposed class action over a data breach in which it is alleged that the personal information of at least 53,000 current and former employees of the automaker was accessed by cybercriminals.
The Nissan data breach included Social Security numbers, dates of birth, and employee ID numbers, a virtual “gold mine for data thieves” claims the lawsuit filed in federal court in Nashville, Tenn. Nissan, the suit says, failed to notify data breach victims until nearly six months after it discovered the incident.
In their suit, plaintiffs say they and class members are at substantial risk of experiencing identity theft and various other forms of personal, social, and financial harm, and this risk “will remain for their respective lifetimes.” Nissan reportedly discovered a “data security incident” in November 2023, during which an unauthorized party gained access to the automaker’s network and files housed within its computer systems. The company, plaintiffs say, has given no assurance that the data accessed during the cyberattack has been recovered or destroyed or that it has properly bolstered its cybersecurity to avoid a similar data breach in the future.
October 2, 2024 – Environment
New York Sues JBS, the Brazilian Beef Giant, Over Its Climate Claims
New York State has sued JBS USA, the American arm of the world’s largest meatpacker, accusing the company of making misleading statements about its efforts to reduce greenhouse gas emissions.
The lawsuit, filed in N.Y. state court, alleges that JBS has made a series of deceptive statements about its record on climate change, including claims that it will achieve net-zero greenhouse gas emissions by 2040. As the global leader in beef production, the suit says, the JBS Group knows that if consumers perceive its products as unsustainable, it could reduce consumer demand for beef and harm the company’s share of the U.S. beef market.
Across its marketing materials, the state argues, the JBS Group has made sweeping representations to consumers about its commitment to reducing its greenhouse gas emissions, claiming that it will be “Net Zero by 2040, but defendant has had no viable plan to meet its commitment to be net zero by that date.
October 1, 2024 – Product Liability
Industry Groups Sue to Block ‘Forever Chemicals’ Drinking Water Rule
U.S. manufacturing and chemical industry groups have filed a lawsuit seeking to block a new federal rule setting the first-ever drinking water standard to protect people against toxic “forever chemicals.”
The rule is intended to reduce exposure to the group of 15,000 PFAS (forever chemicals) for approximately 100 million people, according to the complaint. PFAS, the complaint says, are called “forever chemicals” because they do not easily break down in the human body or environment and are found in hundreds of consumer and commercial products, including non-stick pans, cosmetics, firefighting foams, and stain-resistant clothing.
In a petition filed against the U.S. Environmental Protection Agency in the U.S. Court of Appeals for the D.C. Circuit, the National Association of Manufacturers and the American Chemistry Council say the rule is “arbitrary, capricious, and an abuse of discretion.” The rule, the groups say, exceeds the EPA’s authority under the federal Safe Drinking Water Act, a 1974 law empowering the agency to pass water-quality regulations.
September 30, 2024 – Securities
Fastly Faces Investor Suit After Lowered Revenue Estimates
Software provider Fastly Inc. has been sued in a proposed class action filed by a shareholder in federal court in Oakland, Calif., alleging the company misled investors by overstating its financial position.
Fastly operates an edge cloud platform for processing customers’ applications, according to the complaint. Fastly’s platform, the complaint says, includes a Content Delivery Network (CDN) that allows content owners, such as media companies and e-commerce vendors, to pay CDN operators to deliver their content to their end users.
Plaintiff in his lawsuit claims defendant made false and/or misleading statements by failing to disclose that: (i) contrary to its representations to investors, Fastly was, in fact, experiencing a significant deceleration in growth among its largest customers and was losing the increased market share it had gained as a result of a recent CDN consolidation trend, and (ii) these issues were likely to have a “material negative impact”
on the company’s revenue growth.
September 26, 2024 – Intellectual Property
Dyson Says SharkNinja Copies Cyclonic Vacuum Technology
SharkNinja Inc. copied groundbreaking cyclonic vacuum cleaner technology developed by rival appliance maker Dyson Inc. and should be permanently blocked from selling its patent-infringing bagless vacuums, according to a lawsuit filed by Dyson in federal court in Marshall, Texas.
Dyson states in its suit that it manufactures and sells patented household vacuum cleaners that use cyclonic separation technology to spin dust and dirt out of the air at incredibly high speeds. This leaves the airflow unobstructed and allows the vacuums to maintain a constant level of suction. As a result of 30+ years of innovation, Dyson says, it has a leading portfolio of patented floorcare solutions covering all aspects of its industry-leading vacuums.
Nearly a dozen low-cost models of SharkNinja’s cyclonic floor cleaners, Dyson alleges, have “striking similarities” with Dyson bagless vacuums, which let defendant steal Dyson’s market share. “The resemblance between SharkNinja’s products and Dyson’s patented products is undeniable. Nor is it accidental,” Dyson says.
September 25, 2024 – Constitution
Librarians Challenge Ban on Books Dealing With Gender and Sexuality
An Alabama public library’s policy that prevents anyone under the age of 17 from accessing current titles about gender and sexuality violates the children’s First Amendment rights, plaintiffs argue in a lawsuit filed in federal court in Montgomery, Ala.
According to the complaint, the library is no longer permitted to acquire any material (other than biology, anatomy, or religious texts) advertised for children aged 17 or younger that contains content including sexual conduct, sexual orientation, gender identity, or gender discordance.
Plaintiffs, including Read Free Alabama and the Alabama Library Assoc., say in their suit that these restrictions violate the First Amendment of the U.S. Constitution in that they are overbroad and discriminate on the basis of content. Plaintiffs are asking the court to declare the policies unconstitutional and void and to enjoin the library from implementing or enforcing them.
September 24, 2024 – Labor & Employment
Texas Sues to Block EEOC Guidance Protecting Gender Identity
Texas Attorney General Ken Paxton is suing the Equal Employment Opportunity Commission, opposing a 2024-released EEOC guidance on workplace harassment that shields LGBTQ+ employees who seek to use pronouns and bathrooms consistent with their gender identity, in a lawsuit filed in federal court in Amarillo, Texas.
In his suit, Paxton alleges that the EEOC is in violation of Title VII of the 1964 Civil Rights Act. He pointed to the similarity of the recently released document to a 2021 EEOC guidance on workplace bathrooms, dress codes, and locker rooms for LGBTQ+ workers, in which the district court vacated the guidance and issued a declaratory judgment that it was unlawful on several grounds — including on the basis that it was contrary to law because Title VII does not require employers to provide accommodations based on gender identity regarding bathrooms, dress codes, or pronoun usage.
The 2024 guidance, according to the complaint, declares that Title VII requires employees to use others’ preferred pronouns; allow transgender individuals to use the shower, locker room, or restroom that corresponds to their gender identity; and allow employees to adhere to the dress code that applies to the opposite biological sex. But this guidance, the complaint says, violates this court’s declaratory judgment on the 2021 guidance and the court should, therefore, issue: (1) further declaratory relief clarifying the scope of its judgment; (2) permanent injunctive relief against interpreting Title VII as including dress code, bathroom, or pronoun accommodations in the workplace based on gender identity; and (3) vacate and set aside the 2024 guidance on the basis that it violates the court’s previous judgment.
September 23, 2024 – Privacy
Target Accused of Secretly Embedding Spyware in Marketing Emails
Target Corp. has surreptitiously embedded tracking technology into its marketing emails to collect recipients’ personal data without their knowledge, alleges a proposed class action filed in federal court in the District of Arizona.
The lawsuit accuses the retailer of integrating tracking tools known as “spy pixels” into its promotional emails to secretly capture information about consumers as soon as they open the email. The suit alleges that Target has violated an Arizona privacy law by collecting residents’ email data without first obtaining their authorization.
According to the complaint, Target intercepts consumer data through its own spy pixels, as well as through trackers provided by Scene 7, a subsidiary of Adobe, that are hidden within email images. When a consumer opens a promotional email from Target, the complaint says, the tracking tools automatically record information about the device the recipient used, their IP address, when and where they opened the message, how long they spent reading it, to whom it may have been forwarded, and other sensitive data.
September 19, 2024 – Consumer Fraud
Toyota Vehicle Paint Coating Not as Rugged as Advertised, Lawsuit Says
A proposed class action filed in Los Angeles federal court alleges Toyota Motor North America has falsely advertised that certain of its vehicle models will be “free of clear coat and paint damage” for “many years, no matter the terrain, weather, and climate.
Plaintiff claims in his lawsuit that although Toyota represents that its vehicles are “rugged, built to last, and will hold up to the elements for years to come,” his Toyota Tacoma was covered with defective paint and clear coat damage.
The paint and clear coat were “of poor quality and/or not properly or adequately applied,” plaintiff says, that it caused the coat to weaken and/or deteriorate and the paint to “oxidize and turn dull.” Ultimately, according to the complaint, oxidation causes vehicle paint to turn dull, become faded and take on a “chalky/dusty appearance.” And when a vehicle’s clear coat deteriorates, it can permanently dissolve the paint and leave the car’s body more susceptible to rust, the complaint says.
September 18, 2024 – Intellectual Property
Shopify Sues Rival, Alleging Copyright Infringement of E-commerce Platform
E-commerce provider Shopify has sued rival Shopline in Manhattan federal court, accusing it of illegally copying Shopify’s software to build its own e-commerce platform.
In its lawsuit, Shopify alleges defendant created a “thinly disguised knockoff” of Shopify’s Dawn storefront-template technology to power competing e-commerce services. Dawn software, Shopify says “forms the backbone of the way an e-commerce site appears and functions,” adding that Shopline’s Seed software copies Shopify’s Dawn software “wholesale.”
“From the highest level of overarching organization to the smallest level of individual lines of code, the evidence of Shopline’s copying is overwhelming,” Shopify says, also claiming that the illegal copying includes “large swaths” of matching filenames and other elements.
September 17, 2024 – Product Liability
Lawsuit Claims Toyota Corolla Models Plagued by Coolant Bypass Valve Defect
A proposed class action filed in San Francisco federal court alleges 2019-2023 model year Toyota RAV4s and Toyota Corollas are equipped with defective coolant bypass valves prone to premature failure, potentially causing engine overheating and even catastrophic failure.
The alleged defect, according to the complaint, can cause coolant to leak out of a vehicle’s closed-loop coolant system, harming its ability to properly regulate engine temperature. This can cause overheating, stalling, increased emissions, and total engine failure, the complaint says, adding that it also allows coolant to leak into and damage surrounding engine components, including a vehicle’s electrical system.
In their lawsuit, plaintiffs also argue that a coolant leak can corrode the sensor on the RAV4 or Corolla coolant bypass valve, which can cause it to remain in the open or closed position and be unable to properly direct coolant throughout the engine. The suit accuses Toyota of actively concealing its knowledge of the defect from RAV4 and Corolla buyers and lessees and refusing to correct the problem without cost when it manifests outside of a vehicle’s warranty period.
September 16, 2024 – Antitrust
Pratt & Whitney Faces Used Aircraft Engine and Parts Lawsuit
Aerospace company Pratt & Whitney Canada has been hit with a $150 million lawsuit filed in Philadelphia federal court alleging Pratt is trying to stifle competition from companies selling used engines and parts for regional commercial aircraft, freight operations, and other applications
Pratt blocks rivals from obtaining its used PT6 and PW100 turboprop engines to sell to aircraft operators and other purchasers, according to plaintiff Universal Turbine Parts (UTP), a supplier of aftermarket aircraft engines and engine parts that competes with Pratt, the world’s largest turboprop aircraft engine maker. UTP in its suit accuses Pratt of violating antitrust laws by barring the company’s approved “overhaul facilities” from supplying UTP and others with engines and parts.
“Pratt’s multi-faceted scheme encompasses a veritable smorgasbord of antitrust offenses,” UTP contends, arguing that Pratt’s alleged anti-competitive actions mean “decreased choice for aircraft operators and other purchasers of aircraft engines, and higher prices as Pratt becomes the only remaining option.”
September 12, 2024 – Product Liability
Mercedes-Benz Accused of ‘Actively Concealing’ Defective AMG Rims and Tires on S580 Vehicles
A proposed class action alleges 2021-2024 Mercedes-Benz S580 vehicles are equipped with defective 21-inch AMG V-multispoke wheels prone to cause tire blowouts.
The lawsuit, filed in Atlanta federal court, accuses Mercedes-Benz of failing to disclose that the S580 sedans at issue are equipped with 21-inch wheels and tires that are unable to withstand the weight of the vehicle itself, which compromises the rims’ and tires’ structural integrity and inevitably causes blowouts, sidewall bubbling, deflation, cracked rims, and other problems for drivers.
The plaintiff alleges in his suit that Mercedes-Benz knew of the wheel configuration defect through pre-production testing and a noticeable uptick in customer service calls, warranty claims, and customer complaints to dealers. Despite its knowledge of the wheel and rim defect, the defendant “actively concealed” the safety issue from drivers, many of whom were told by the automaker that their wheel/tire problems were not due to a defect but instead that the blowouts were caused by potholes or “other driver error,” plaintiff says.
September 11, 2024 – Constitution
Lawsuit Challenges Tennessee Laws Targeting Crossover Voting in Primary Elections
A group of Tennesseans who say they were intimidated into not voting in a primary election or threatened with prosecution after they did vote has filed a legal challenge in Nashville federal court to state laws meant to prevent crossover voting.
A law passed last year, according to the complaint, requires polling places to post warning signs stating that it’s a crime for someone to vote in a political party’s primary if they are not a member of that party. Another law requires primary voters to be “bona fide” party members or to “declare allegiance” to the party they are voting for. Neither law, the complaint says, defines what it means to be a bona fide party member or defines how a voter should declare allegiance to a party.
In their lawsuit, plaintiffs claim the Tennessee voting laws violate their First Amendment rights to participate in the political process. They also contend the laws violate the due process clause of the U.S. Constitution because they are so vague that voters cannot know whether they will be prosecuted. In fact, plaintiffs argue, prosecutors in different judicial districts have offered very different interpretations of the laws and how they should be enforced.
September 10, 2024 – Privacy
Delta Air Lines Unlawfully Shares Website Visitors’ Data with Facebook, Lawsuit Alleges
A proposed class action accuses Delta Air Lines of secretly sharing website visitors’ private data with Facebook without visitors’ knowledge or consent.
The airline has intentionally embedded invisible web-tracking tools into website Delta.com that automatically capture and transmit users’ personal information to Facebook, which then uses the data for marketing purposes, according to the complaint filed in Los Angeles Superior Court.
Plaintiffs claim in their lawsuit that Delta utilizes pieces of back-end code provided by Facebook — namely, the Meta pixel and Conversions application programming interface — to secretly track and record a consumer’s every interaction on Delta.com. “This is the functional equivalent of placing a bug or listening device on a phone line because [Delta’s] website allows third parties to ‘listen in’ and receive communications in real time that [the plaintiffs] intended only for [Delta],” plaintiffs argue.
September 9, 2024 – Truth in Lending
Wells Fargo Accused of Illegally Seizing Deposit Accounts When Credit Loans Are Not Paid
A proposed class action filed in San Francisco federal court alleges that Wells Fargo illegally seizes funds from customers’ deposit accounts should they fail to pay an open-end credit loan in a timely manner.
The lawsuit claims that the bank unlawfully seizes the funds of consumers who have both a deposit account and open-end credit with the bank without regard to federal and state rules that govern bank liens and bank levies, and without court approval or notice to the customer.
According to the complaint, Wells Fargo’s conduct will sometimes leave a customer with no money left in their account to meet their basic needs and is outlawed under the federal Truth In Lending Act, among other laws. Specifically, the complaint says, the act decrees that, with limited exceptions, a card issuer may not take any action against a cardholder’s deposit accounts to offset indebtedness from a consumer credit transaction.
September 5, 2024 – Consumer Fraud
Prime Energy Sports Drink Lawsuit Filed Over Caffeine Levels, PFAS Exposure
Prime Hydration LLC, the maker of Prime Energy drinks, faces a proposed class action alleging that their products contain an excessive amount of caffeine and potentially toxic “forever chemicals.”
According to the complaint filed in Manhattan federal court, Prime Energy drinks contain high levels of caffeine and high amounts of PFAS, more commonly known as “forever chemicals” that can cause serious illness. The drinks, the complaint, says, are not tightly regulated in the U.S. because they are considered dietary supplements, and many manufacturers do not even disclose the ingredients or levels of caffeine contained in each bottle.
Plaintiff says in her lawsuit that high levels of caffeine have been linked to irregular heartbeats, resulting in increased blood pressure, heart arrhythmias, fainting, seizures, and sudden death, particularly in younger consumers. While Prime Energy’s label indicates that it contains 200 milligrams of caffeine, the equivalent of six cans of Coca-Cola or two cans of Red Bull, plaintiff claims the actual amount of caffeine can vary, up to 225 milligrams of caffeine.
September 4, 2024 – Antitrust
Boehringer Ingelheim Accused of Holding Monopoly on Asthma, COPD Inhaler Drugs
A proposed class action alleges Boehringer Ingelheim Pharmaceuticals holds an illegal monopoly on two drugs used in inhalation sprays to treat chronic obstructive pulmonary disease (COPD) and asthma, even though its patents on the underlying active ingredients expired roughly four years ago.
The brand-name drugs Combivent Respimat, for COPD, and Spiriva Respimat, for COPD and asthma, are the only inhaler sprays for their active ingredients available in the United States, according to the complaint filed in Connecticut federal court. The drugs were approved by the U.S. Food and Drug Administration in 2011 and 2014, respectively, the complaint says, and today both sprays are widely used to help asthma and COPD patients manage their diseases.
Plaintiffs say in their lawsuit that in exchange for developing the drugs, Boehringer received patents that allowed the company to earn more than $45 billion in profits. However, plaintiffs claim, Boehringer’s patents on the inhaler ingredients at issue, which gave the company a monopoly on the drugs, expired in 2020. Both drugs should now be available to millions of COPD and asthma patients nationwide in a lower-cost, generic variety, plaintiffs argue, “yet Boehringer, to this day, is the only company that produces and sells Combivent Respimat and Spiriva Respimat.”
September 3, 2024 – Intellectual Property
Google Named in Lawsuit by US Artists Over AI Image Generator
Google has been sued in San Francisco federal court by a group of visual artists who claim the company used their work without permission to train Imagen, its artificial-intelligence-powered image generator.
Photographer Jingna Zhang and cartoonists Sarah Andersen, Hope Larson, and Jessica Fink allege in their proposed class action that Google is liable for misusing “billions” of copyrighted images, including theirs, to teach Imagen how to respond to human text prompts.
Plaintiffs note in their lawsuit that this is one of many such suits brought by copyright owners against tech companies, including Microsoft, OpenAI, and Meta, over the data used to train their generative AI systems. Plaintiffs Zhang and Andersen, the complaint says, are also involved in similar ongoing suits against Stability AI, Midjourney, and others over the companies’ alleged misuse of plaintiffs’ work to train AI image generators.
September 2, 2024 – Antitrust
Gerber, Perrigo Sued Over Cost of ‘Store-Brand’ Infant Formula
Infant formula makers Gerber and Perrigo face a proposed class action filed in federal court in Alexandria, Va., accusing the companies of scheming to artificially drive up prices for “store-brand” formula sold at Walmart, Walgreens, and other retailers.
Perrigo violated antitrust law, according to the complaint, by illegally agreeing with Gerber to block competitors from cutting into the market for store-brand formula.
The complaint describes Perrigo as the country’s top supplier of store-brand formula, which is sold under various retailer labels. Gerber, the plaintiffs claim in their lawsuit, agreed to give Perrigo “first right of refusal” to Gerber’s excess formula supply, which a competitor otherwise might have used to sell to retailers at a lower price.
August 29, 2024 – Product Liability
Heavy Metals in Baby Food Led to Autism Diagnosis, Lawsuit Alleges
Baby food manufacturers, including Gerber, Nestle, Plum Organics, Campbell, and Sprout Foods, are accused in Manhattan federal court of “malicious recklessness” for selling toxic baby food loaded with heavy metals that increase the risk of autism among children.
In her lawsuit, the plaintiff says that her daughter was diagnosed with autism spectrum disorder at two years old after being fed baby food products manufactured by each of the defendants, noting that these products were all contaminated with high levels of lead, arsenic, and mercury that exceeded regulatory limits. Exposure to those toxic heavy metals led to plaintiff’s daughter suffering brain injuries that manifested as autism, the suit argues.
Plaintiff states that if she and other parents had been warned about the high levels of heavy metals and the possible impacts, they would not have purchased the products. However, she says, defendants decided to place profits over the welfare and safety of infants. “Defendants’ malicious recklessness and callous disregard for human life have wreaked havoc on the health of countless vulnerable children,” plaintiff contends, “all so that Defendants could maximize profits while deliberately misleading parents regarding the safety of their Baby Foods.”
August 28, 2024 – Consumer Fraud
Avis Faces Rental Car Lawsuit Over ‘Fuel Service Charge’
A proposed class action claims Avis forces certain rental car customers to pay for fuel twice by improperly imposing a fuel service charge on those who opt to fill a vehicle’s gas tank before returning it to the company.
Avis improperly levies the fuel service charge at issue on customers who select the company’s “Self-Service” fueling option, which purportedly allows a consumer to avoid paying fuel service charges by requiring the driver to fill the vehicle’s gas tank before returning it to Avis, according to the complaint filed in New Jersey federal court. Avis assesses the fuel service charge on “Self-Service” customers, the complaint says, despite acknowledging a full fuel tank upon the return of a vehicle and the customer’s selection of the self-service fuel option.
In their lawsuit, plaintiffs contend that “As a result, consumers who utilize the Self-Service option are ultimately forced to pay for fuel twice. First, they pay to fill the rental vehicle with fuel before dropping it off, as required by the Self-Service fuel option. Second, they are required to pay the fuel service charge after they return the vehicle.”
August 27, 2024 – Securities
SEC Accused of Unlawfully Tracking Those Who Invest in Stock Market
The U.S. Securities & Exchange Commission is illegally collecting data of every citizen who invests in the stock market, claims a lawsuit filed in federal court in Waco, Tex.
In its suit, the New Civil Liberties Alliance (NCLA) contends that the agency, through its “Consolidated Audit Trail” or “CAT” program, is collecting massive amounts of personally identifiable data by forcing brokers, exchanges, clearing agencies, and alternative trading systems to capture and send detailed information on every investor’s trades in U.S. markets to a centralized database.
The NCLA calls CAT “the greatest government-mandated mass collection of personal financial data” in United States history. “Historically, a government that wished to track its citizens had to devote large resources to having them followed. That is no longer the case: modern surveillance tools enable mass tracking of individuals’ every movement, every transaction, every purchase, sale, or transfer of securities at low cost while powerful computer algorithms can process that information to reveal personal and private details of each person’s financial life or investment strategy,” the NCLA argues.
August 26, 2024 – Intellectual Property
Shine TV Alleges Unlawful Sale of Goods Implying Association With ‘Master Chef’
Shine TV has filed a trademark infringement and cybersquatting lawsuit alleging sale of counterfeit goods associated with its show “Master Chef.”
Plaintiff Shine TV is a British media production company founded in March 2001 by Elisabeth Murdoch, daughter of News Corporation CEO Rupert Murdoch. In its complaint filed in Dallas federal court, Shine accuses defendant MasterChef LLC of operating a website that infringes plaintiff’s mark and logo to sell cooking-related products and implies a false association with the popular show. Plaintiff’s MasterChef show, the complaint says, is watched globally by over 300 million viewers and has transformed over one hundred (100) amateur chefs into professionals.
Shine TV says in its suit that defendant uses marks that are identical to or confusingly similar to plaintiff’s Master Chef marks. Further, plaintiff says, defendant has engaged in cybersquatting, with its website, www.masterchef.us, confusingly similar to that of plaintiff, www.masterchef.com.
August 22, 2024 – Labor & Employment
Convenience Store Chain Faces Employment Discrimination Lawsuit
The Sheetz convenience store chain has been hit with a civil action by the Equal Employment Opportunity Commission alleging the company discriminated against minority job applicants.
Sheetz Inc., which operates more than 700 stores in six states, discriminated against Black, Native American, and multiracial job seekers by automatically weeding out applicants whom the company deemed to have failed a criminal background check, according to the complaint filed in federal court in Baltimore, Md.
In its lawsuit under Title VII of the Civil Rights Act, the EEOC claims the chain’s longstanding practices have a disproportionate impact on minority applicants and thus violate federal civil rights law. The suit does not argue that Sheetz was motivated by racial animus but takes issue with the way the chain uses criminal background checks to screen job seekers.
August 21, 2024 – Consumer Fraud
J&J Band-Aids Alleged to Contain ‘Forever Chemicals’
Johnson & Johnson and its division Kenvue face a proposed class regarding the marketing and sale of defendants’ Band-Aid products, which allegedly contain PFAS “forever chemicals.”
The lawsuit, filed in federal court in Trenton, N.J., says that the packaging claims the products are “designed to wick away fluids and keep your wound clean” and “cushion painful wounds while you heal.”
But in fact, the suit contends, the products are unfit for their intended purpose because they contain PFAS “forever chemicals” that are dangerous to human health. PFAS, the suit says, are a group of synthetic chemicals that, because they persist and accumulate over time, are harmful even at very low levels.
August 20, 2024 – Securities
SentinelOne Sued for Over-Inflating Projected Revenue
SentinelOne Inc., a cybersecurity platform that employs AI in threat detection and response, faces a shareholder derivative lawsuit filed in federal court in the District of Delaware alleging that the company and senior executives concealed a lack of effective accounting controls, resulting in over-inflation of the company’s projected revenue.
SentinelOne, according to the complaint, pioneered the world’s first purpose-built artificial intelligence detection platform “intended to make cybersecurity defense truly autonomous.” The company and its top executives have repeatedly touted the financial success of the company. However, the complaint says, in June 2023 the company announced that its revenue projections were overstated and would be revised to reflect a less optimistic outlook. On this news, the company’s stock price fell more than thirty-five percent.
In his shareholder action, plaintiff argues that defendants breached their fiduciary duties by issuing materially false and misleading statements and causing the omission of certain material facts to the investing public. Specifically, plaintiff says, defendants failed to disclose to investors that SentinelOne lacked effective internal controls over accounting and financial reporting, and as a result of defendants’ positive statements about the company’s business operations, its prospects were materially misleading and lacked a reasonable basis.
August 19, 2024 – Disabilities Act
Under Armour Website Said to Discriminate Against Those With Disabilities
Footwear company Under Armour Inc. has been named in a proposed class action alleging that the company’s website denies full access to blind and visually impaired individuals.
According to the complaint filed in Minneapolis federal court, the defendant’s website — www.underarmour.com — because it lacks screen reader technology is not fully and equally accessible to people who are blind or who have low vision, in violation of the Americans With Disabilities Act. Plaintiff in her lawsuit seeks a permanent injunction requiring a change in defendant’s corporate policies to make its online store accessible to individuals with visual disabilities.
In many ways, the complaint says, individuals with disabilities rely on web content more so than their nondisabled peers because of inherent transportation, communication, and other barriers. “A blind person does not have the same autonomy to drive to a covered entity’s office as a sighted person.” A person with visual disabilities, the complaint says, relies on screen reader technology to navigate the internet. This technology translates the visual internet into an auditory equivalent, plaintiff argues.
August 15, 2024 – Product Liability
Ford Accused of Concealing Fusion, Escape Transmission Problems
A lawsuit filed in Detroit federal court alleges certain 2010-2020 Ford Fusion and 2009-2021 Ford Escape vehicles are equipped with defective transmissions that render the cars unsafe and unfit to drive.
Ford knew of the problems since at least 2009, prior to selling affected Fusion and Escape models, yet failed to warn buyers and lessees, according to the complaint. Ford has “repeatedly lied” to drivers with regard to the root cause of the Fusion and Escape transmission defect, the complaint says, leaving consumers stuck in “unsafe” vehicles with diminished values that have necessitated pricey repairs.
Plaintiffs contend in their suit that the Fusion and Escape transmission defect reflects “a fundamental design failure with respect to the software, hardware, and how they work together.” The inherent failure of the transmissions’ command-and-control hardware and software systems to operate harmoniously has produced “a wide array of symptoms” consistent with those complained of by Ford drivers nationwide to the National Highway Traffic Safety Administration, plaintiffs say.
August 14, 2024 – Environment
Conservation Groups File Lawsuit Seeking to Restore Wolf Protections in Rocky Mountain States
The Center for Biological Diversity and several other conservation groups have filed suit in federal court in Missoula, Mont., against the U.S. Fish and Wildlife Service over its denial of the groups’ petitions to protect gray wolves in the Rocky Mountains under the Endangered Species Act (ESA).
Plaintiffs, which also include the Humane Society of the United States and the Sierra Club, contend in their lawsuit that the service unreasonably denied two petitions from 2021 to restore federal protections for gray wolves in Idaho, Wyoming, Montana, north-central Utah and the eastern portions of Oregon and Washington state — protections that the service eliminated in 2011 and 2012.
Despite significant scientific evidence demonstrating the imperiled status of wolves in the region and the service’s own predictions of significant population declines over the next ten years, plaintiffs argue, the defendant denied plaintiffs’ petition, depriving wolves in the Northern Rocky Mountains of ESA protections. The service’s decision violates the ESA, plaintiffs say, because it failed to rely on the best available science – in some instances, the service completely ignored key research that conflicts with its conclusions.
August 13, 2024 – Intellectual Property
Shein Charged With Stealing Creators’ Work for Its Own Products
Clothing retailer Shein, a global and lifestyle brand based in China, has infringed upon countless copyrights by scouring the internet for popular works and then misappropriating the designs to make and sell as its own products, alleges a proposed class action filed in Manhattan federal court.
Shein combs the internet, according to the complaint, in search of popular works created by artists and then misappropriates those works to offer as its own products. Defendant has for years utilized algorithms, artificial intelligence, and related “computerized monitoring systems” to track consumer trends and catch trending and viral images and designs across the web and social media, the complaint says.
Shein then steals those images and designs from creators who support themselves through their creative work, plaintiff argues in his lawsuit. ”Though Shein purports to offer thousands of new products every day, plaintiff says, the company “does not create many of its products” and “certainly does not design thousands daily,” accusing defendant of running an “industrial-scale” digital copyright infringement scheme at the expense of countless designers, artists, and creators.
August 12, 2024 – Cybersecurity
AT&T Data Breach Lawsuit Alleges Over 70 Million People Impacted by Cyberattack
A proposed class action claims a March 2024 data breach that affected 73 million AT&T customers was a direct result of the company’s failure to implement industry-standard cybersecurity measures.
According to the complaint filed in Dallas federal court, the personal information of 7.6 million current customers and 65.4 million former customers was stolen by cybercriminals as a result of the company storing the data in a “reckless manner.”
AT&T customers’ full names, addresses, dates of birth, phone numbers, Social Security numbers, and AT&T account numbers and passcodes are now in the hands of hackers, the complaint says, and this stolen personal information is now available on the dark web. Plaintiff claims in his suit that because of the data breach, “Plaintiff and Class Members must now and in the future closely monitor their financial accounts to guard against identity theft.”
August 8, 2024 – Privacy
GM Accused of Unlawfully Collecting Data on Driver Behavior
In Detroit federal court, a proposed class action alleges that General Motors Corp. and its subsidiary OnStar Corp. (which provides subscription-based vehicle communication and security services) install systems in certain vehicles that collect information about driving behavior, then transmit the data to insurance companies that use it to increase premiums.
The data, according to the complaint, is transmitted through intermediary LexisNexis Risk Solutions, which is also named as a defendant. The lawsuit, the complaint says, is based on a recent New York Times article describing the practice.
Plaintiffs say in their lawsuit that the information collected included what LexisNexis calls “telematics data,” which itself includes acceleration events, hard brake events, high speed events, distance traveled, time of day traveled, and sometimes location data and GPS data.
August 7, 2024 – Consumer Fraud
Mimosa Hard Seltzers Misleadingly Advertised as Containing Sparkling Wine, Lawsuit Alleges
A proposed class action accuses Molson Coors Beverage Company of falsely advertising its ready-to-drink Vizzy Mimosa Hard Seltzers, given the beverages do not contain sparkling wine as the product label implies.
The drinks’ labeling leads consumers to expect that the “Mimosa Hard Seltzer” that’s “Made With Real Orange Juice” will contain the essential ingredients of a mimosa — sparkling wine and orange juice, according to the complaint filed in federal court in Orlando, Fla. However, the complaint contends, the canned cocktail contains no sparkling wine and is, in fact, made with sparkling water and an alcohol base derived from fermented sugar, rather than grapes.
Plaintiffs say in their lawsuit that the Vizzy product at issue has been the subject of other false advertising lawsuits that similarly argue that the beverage’s alcohol base makes it a beer, not a canned mimosa. This fact is not disclosed as part of the drink’s “statement of identity” on the front of product packaging, as required by labeling regulations, but rather in the fine print on the back of each can, plaintiffs say.
August 6, 2024 – Product Liability
Kia and Hyundai Vehicles Said to Be Equipped with Defective Headlights
Recent models of Kia Telluride and Hyundai Palisade SUVs are equipped with defective headlights prone to damage from moisture and condensation, alleges a proposed class action filed in Los Angeles federal court.
The headlights were manufactured such that they cannot sufficiently seal out moisture and humidity and thus become fogged and/or unfocused, according to the complaint. The headlights, the complaint says, were made with defective seals that allow moisture and condensation to intrude into the headlight assembly, which can cause high and low beams and daytime running lights to become progressively dimmer over time, with the headlight ultimately failing to illuminate entirely.
Plaintiff says in his lawsuit that the Telluride and Palisade headlight defect is a significant safety hazard as the issue can prevent drivers from seeing at a distance, particularly during inclement weather and while driving at night.
August 5, 2024 – Cybersecurity
Rite Aid Data Breach Suit Claims 2.2 Million People Impacted by Cyberattack
Rite Aid has been hit with a proposed class action over a 2024 data breach during which the sensitive personal information of roughly 2.2 million people was allegedly stolen.
The lawsuit, filed in Philadelphia federal court, says Rite Aid detected the cybersecurity incident on June 6, 2024, reportedly 12 hours after hackers had accessed its systems using employee credentials. Yet the company failed to notify those affected by the breach in a timely fashion. Plaintiff argues in her suit that the Aid data breach stemmed from the company’s failure to implement reasonable and appropriate cybersecurity measures to protect against “the foreseeable threat of a cyberattack.”
Plaintiff also asserts that Rite Aid’s internal investigation of the incident has not disclosed whether those responsible for the breach have been identified, whether the stolen data was held for ransom, how the breach was discovered, the mechanism of the attack, or what steps the company has taken to protect its systems in the wake of the incident.
August 2, 2024 – Constitution
Academics Challenge Florida Law Restricting Research Exchanges From China and Other Countries
Two graduate students from China whose studies were put on hold have sued Florida education officials, seeking to stop enforcement of a new state law that limits research exchanges between state universities and academics from China and six other prohibited countries.
According to the complaint filed in Miami federal court, the law was designed to stop the Chinese government and others from influencing the state’s public colleges and universities. The countries on the prohibited list are China, Russia, Iran, North Korea, Cuba, Syria, and Venezuela.
Plaintiffs contend in their lawsuit that the Florida law is unconstitutional under the Supremacy Clause of the U.S. Constitution, which grants the federal government exclusive authority over immigration and national security. Further, plaintiffs say, the law is discriminatory under Due Process of the 14th Amendment and is reminiscent of the Chinese Exclusion Act of 1882, which instituted a ban on Chinese laborers immigrating to the United States. This ban ended in 1943.
August 1, 2024 – Environment
Gov’t Sued for Allegedly Failing to Manage Nevada National Monuments
The Center for Biological Diversity claims in a lawsuit filed in Las Vegas federal court that the U.S. Bureau of Land Management’s lack of formal management plans for nearly a decade has left the Basin and Range and Gold Butte national monuments in Nevada vulnerable to neglect and degradation.
Basin and Range National Monument, according to the complaint, covers 704,000 acres 70 miles north of Las Vegas and features unique desert and high-elevation plant communities and wildlife species, along with Native American petroglyphs and archaeological sites. The nearby Gold Butte National Monument is notable for its unique geology and archaeological sites and was established to protect rock art, fossils, and the habitat of the threatened desert tortoise.
Both monuments were established under the Antiquities Act to protect diverse habitats, endangered species, and historical sites, the center says in its suit. It is seeking a court order enforcing the development of management plans as required by presidential proclamations that established the monuments. These plans, the center argues, are crucial for outlining strategies to protect the natural and cultural resources within the designated areas and ensuring their preservation for future generations.
July 31, 2024 – Privacy
Lawsuit Challenges Kohl’s ‘Incessant’ Debt Collection Robocalls
A proposed class action filed in federal court in Austin, Texas, claims that Kohl’s violated federal and state law by placing “incessant” debt collection robocalls to her cell phone without consent.
According to the complaint, the lawsuit was filed by plaintiff who allegedly failed to make timely payments for her Kohl’s credit card. As a result, the complaint says, defendant began placing “invasive” collection calls to her cell phone and leaving prerecorded voicemails.
Plaintiff says in her suit that she answered one of the calls and requested that the robocalls cease, but Kohl’s continued to contact her and placed 30 more calls to her cell phone. The complaint charges that defendant violated the federal Telephone Consumer Protection Act and Texas privacy laws by placing non-emergency calls using an artificial or prerecorded voice to plaintiff’s cell phone without her consent.
July 30, 2024 – Intellectual Property
Coach Sues Gap for Selling ‘Coach’ T-Shirts
Luxury handbag retailer Coach has sued Gap, accusing defendant’s Old Navy unit of illegally selling T-shirts emblazoned with the word “Coach.”
In a trademark infringement lawsuit filed in Los Angeles federal court, Coach and its parent Tapestry contend they never gave Gap permission to sell the T-shirts, and the sale was likely to confuse customers into believing Coach was involved.
Coach claims in its suit that the unauthorized sale has caused “irreparable harm” because its trademarks symbolized “a unique blend of fashion, craftsmanship, style, and function” reflected in the sale of “luxury lifestyle items,” not T-shirts. Coach is seeking unspecified damages for trademark infringement, counterfeiting, and violations of a California unfair competition law. It also asks for the destruction of unsold inventory of infringing clothing.
July 29, 2024 – Antitrust
American Express Faces Lawsuit by Merchants Over ‘Swipe’ Fees
American Express Co. faces a proposed class action filed in Rhode Island federal court accusing it of overcharging thousands of U.S. merchants for credit and debit card fees on consumer transactions.
The plaintiffs, which include a delicatessen, fine clothier, florist, and furniture store, are seeking a court order to block AmEx policies they say violate U.S. antitrust law. The defendant, according to the complaint, restricts competition through its use of “non-discrimination provisions” to bar merchants from encouraging customers to use payment cards with lower transaction fees.
Visa and Mastercard by the end of 2013 had abandoned their rules stopping merchants from steering customers to use lower-cost means of payment, the complaint says. “It is Amex’s rules alone that prohibit U.S. merchants from using discounts, surcharges, verbal prompting, signage, and other techniques to incentivize shoppers to use cheaper payment cards,” plaintiffs contend in their lawsuit.
July 26, 2024 – Labor & Employment
Dick’s Sporting Goods Sued Over Commissions Allegedly Owed to Salespeople
Plaintiffs — employees at Dick’s Sporting Goods — claim in a proposed class action filed in Milwaukee federal court that the company has wrongfully withheld commissions earned by them and other salespeople within the golf department of its Pro+ stores.
According to the complaint, Dick’s implemented its “premium equipment commission program” (PECP) in 2021, which purports to provide Pro+ golf department salespeople with a chance to earn three percent of any qualifying sale. However, the complaint says, Dick’s never informed plaintiffs or other salespeople about the program and has failed to pay the commissions they rightfully earned under its terms.
In their lawsuit, plaintiffs contend that approximately $400,000 in sales would have qualified for the commission program in 2023 had the PECP been properly implemented. But in fact, plaintiffs say the company “had not properly implemented the commission program” and, therefore, failed to pay salespeople the commissions they had rightfully earned.
July 25, 2024 –Product Liability
Chevy, GMC, Cadillac Trucks Plagued by Defective Paint, Lawsuit Claims
A proposed class action filed in Los Angeles federal court alleges certain 2015-2020 model year Chevrolet, GMC, and Cadillac vehicles are plagued by exterior paint prone to prematurely peel, crack, or become cloudy.
The lawsuit asserts that the paint on the affected Chevy, GMC, and Cadillac models suffers from a “serious latent defect” given that it can prematurely crack, peel, delaminate, or become cloudy with no external or environmental influence. The suit accuses GM of breaching its express warranty by continuing to sell the vehicles at issue without disclosing the apparent paint defect and refusing to remedy the problem while concealing it from consumers.
According to the complaint, the alleged paint defect stems from either a defect in the paint itself, a defect in the clear coat, or a defect in the application of the paint. “Any or all of these defects,” the complaint argues, “will cause the paint and clear coat to micro blister, crack, become cloudy, delaminate, peel, fade, and bubble.” And there is no shortcut to remedy the alleged paint problems with the vehicles, the complaint says, as they can only be fixed through total re-sanding and repainting.
July 24, 2024 –Breach of Contract
Citibank Said to Charge Unlawful Junk Fees When Checks Bounce
Citibank charges an unfair $12 “junk fee” to customers who, through no fault of their own, deposit checks that bounce, alleges a proposed class action filed in federal court in the District of South Dakota.
Citibank’s penalty for faulty checks is unfair because innocent customers have no reasonable way of knowing a check will bounce and lack any control over whether the deposit will be returned, according to the complaint, The bank, by charging customers even though they “did nothing wrong and could not have avoided the fee through reasonable diligence,” has acted in a manner that is “unfair, oppressive, and against public policy,” the complaint says.
Plaintiff argues in her lawsuit that Citibank’s so-called “deposited check returned unpaid fee” is not disclosed in accountholders’ contracts with the bank. “A consumer cannot reasonably expect to be charged a fee for a Return Deposit Item where that fee is not disclosed in the Deposit Agreement,” plaintiff says.
July 23, 2024 – Privacy
USNews.com Accused of Unlawfully Capturing Visitor Data via Web-Tracking
A proposed class action filed in Manhattan federal court alleges USNews.com uses web-tracking software to capture visitors’ personal information without their consent.
Defendant U.S. News & World Report has, according to the complaint, unlawfully incorporated “pen register” technology on its website that surreptitiously collects a visitor’s IP address, which is a unique identifier that can be used to learn the geographic location of their device.
When a user visits USNews.com, the complaint says, several tracking codes provided by third-party software companies are automatically installed on the consumer’s browser, and the web-tracking tools share the consumer’s IP address with the respective third parties each time the individual accesses the website. The software companies then use the personally identifiable data to provide targeted marketing and website analytics services to the defendant.
July 22, 2024 – Product Liability
Sunbeam Crock Pot Explosion Prompts Lawsuit for Allegedly Causing Severe Burn Injuries
A husband and wife have filed suit against Sunbeam Products, alleging they suffered severe burns when their Crock Pot exploded, spraying them with scalding hot contents.
According to the complaint filed in federal court in Takoma, Wash., the Sunbeam crockpot explosion was caused by an unreasonably dangerous and defective design, with the safety features failing to prevent the pressure cooker lid from being removed while steam was still built-up inside the device.
In their suit, plaintiffs say they were using a Sunbeam Crock Pot pressure cooker in November 2022, when the device allowed the lid to be opened while the contents were still pressurized, which is an occurrence the safety features and product advertisements claim should not be possible. The scalding hot contents forcefully erupted, causing plaintiffs’ “serious burn injuries,” the complaint says.
July 18, 2024 – Securities
SEC Levels Charges in Alleged $300 Million Crypto-Asset Ponzi Scheme Targeting Latino Community
The U.S. Securities & Exchange Commission has charged 17 individuals for their roles in an alleged $300 million Ponzi scheme that involved CryptoFX LLC and targeted more than 40,000 predominately Latino investors.
CryptoFX purported to trade in crypto assets and foreign exchange markets but was, in reality, a Ponzi scheme, according to the SEC’s complaint filed in Houston federal court. The complaint claims that, from May 2020 to October 2022, the 17 charged individuals acted as leaders of the CryptoFX network and solicited investors by variously promising that the company’s crypto asset and foreign exchange trading would generate returns of 15 to 100 percent.
CryptoFX raised $300 million from investors, the complaint says, but did not use most of the funds for its claimed trading purposes. Instead, the defendants allegedly used investor funds to pay supposed returns to other investors, to pay commissions and bonuses to themselves and investors, and to fund their own lifestyles.
July 17, 2024 – Consumer Fraud
Lawsuit Says Benzoyl Peroxide Acne Treatments Sold by L’Oréal Contain ‘Dangerous’ Benzene
A proposed class action filed in Honolulu federal court alleges that benzoyl peroxide acne treatments made by L’Oréal and others are illegal to sell since they contain benzene, “a known human carcinogen.”
According to the complaint, the benzoyl peroxide acne creams, washes, scrubs, and bars at issue contain “unsafe levels” of benzene and are prone to further degrading into the cancerous chemical, such that the items are “materially different than advertised.” If benzene is found in any product, the complaint says, the manufacturer must contact the U.S. Food and Drug Administration to initiate a voluntary recall. Plaintiff in her lawsuit says that L’Oréal failed to contact the FDA or to list the chemical among the ingredients on product packaging.
The specific benzoyl peroxide acne treatment products named in the suit include L’Oréal’s Effaclar Duo Dual Acne Treatment; Walgreens’ Daily Creamy Benzoyl Peroxide Acne Face Wash and Maximum Strength Acne Foaming Wash; Walmart’s Equate Beauty 10% Benzoyl Peroxide Acne Treatment, Equate Beauty Acne Facial Cleansing Wash and Equate Beauty Daily Acne Control Cleansing Cream; and Genomma’s Asepxia Acne Spot Treatment Cream.
July 16, 2024 – Antitrust
NCAA Sued Over Prize-Money Limits on Student Athletes
A top-ranked U.S. tennis player has sued the National Collegiate Athletic Association, accusing it of restricting prize money that tennis players, gymnasts, and other athletes can earn for competitive events away from their schools.
In a proposed class action filed in federal court in the Middle District of North Carolina, Reese Brantmeier, a star player at UNC, seeks damages and a court order blocking the collegiate athletic governing body’s restriction on compensation for athletic performance, which stipulates that college athletes are allowed to participate in non-NCAA events but they can only accept prize money that covers “actual and necessary expenses.”
The NCAA is violating U.S. antitrust law, according to the complaint, by restraining how much athletes can be paid at tournaments and other non-NCAA competitions, such as events hosted by the U.S. Tennis Association. Brantmeier claims in her lawsuit that the NCAA’s rules have cost her tens of thousands of dollars in prize money. The NCAA, she says, “should be working to support and encourage student-athletes in individual sports to compete in the highest and most prestigious competitions in their respective sports.
July 15, 2024 – Cybersecurity
American Vision Partners Lawsuit Says Data Breach Impacted 2.3M People
Medical Management Resource Group, which does business as American Vision Partners, has been sued over a November 2023 cyberattack that allegedly compromised the personal data of approximately 2,350,000 people.
In a proposed class action filed in federal court in Phoenix, Ariz., the complaint states that American Vision Partners, which provides administrative services to ophthalmology practices, discovered unauthorized access to parts of its network on November 14, 2023. A subsequent investigation, the complaint says, revealed that a third party had acquired private information that belonged to patients of defendant’s clients, potentially including names, dates of birth, contact details, and certain medical treatment and health insurance data.
Plaintiff in her suit contends that the cyberattack stemmed from American Vision Partners’ failure to implement reasonable data security practices to protect patient information, which was allegedly stored unencrypted and unredacted in the company’s network. Defendant could have prevented the incident, plaintiff argues, had it followed proper encryption protocols or simply deleted the data when it was no longer needed.
July 11, 2024 – Intellectual Property
Nvidia Faces Claims Over Alleged AI Copyright Violations
Three novelists have sued chipmaker Nvidia for alleged copyright infringement, arguing that the company’s NeMo Megatron AI model has used their work to train its chatbot and has, therefore, violated their books’ copyright protections.
The authors allege in their lawsuit filed in San Francisco federal court that NeMo, first released in September 2022, copies and draws from their books “without consent, without credit, and without compensation.” During training, plaintiffs claim, the model “copies and ingests each textual work in the training dataset and extracts protected expression from it.” Plaintiffs say their works were part of a dataset of about 196,640 books that helped train NeMo to simulate ordinary written language.
The plaintiffs — novelists Abdi Nazemian, Brian Keene, and Stewart O’Nan — are seeking damages and requesting class-action status so that all other authors whose work was included in the NeMo dataset can join the suit.
July 10, 2024 – Product Liability
Lawsuit Claims Nissan Pathfinder, Infiniti SUVs Contain Radiator Cooling Fan Defect
A proposed class action filed in Nashville federal court alleges 2013-2017 Nissan Pathfinder and 2014-2017 Infiniti QX60 vehicles contain a defect that can cause the SUVs’ radiator cooling fans to malfunction and fail.
According to the complaint, the cooling fan defect can cause affected Pathfinder and QX60 models to exhibit a loud rattling or clacking sound in the front of the engine, which can ultimately cause overheating and engine failure. The manufacturer Nissan North America, the complaint says, has known of the radiator cooling fan problem since at least 2013, yet concealed the defect from the public.
Plaintiffs in their lawsuit argue that the cooling fan defect renders the Pathfinder and QX60 models at issue unfit for their intended purpose, as the defect poses an unreasonable safety hazard. Nissan, plaintiffs say, has deprived affected drivers of the benefit of their bargain and exposed them to a dangerous safety issue in the process.
July 9, 2024 – Consumer Fraud
Cupkin Children’s Cups Contain ‘Unreasonably Dangerous’ Amounts of Lead, Lawsuit Alleges
The maker of Cupkin double-walled stainless steel children’s cups faces a proposed class action claiming the recalled products are defective as they contain unsafe amounts of lead.
The Cupkin children’s cups, which came in eight- and 12-ounce versions and 12 color combinations with matching straws, can “poison” the user given their lead content, according to the complaint filed in federal court in Aiken, S.C. The complaint notes that hundreds of thousands of Cupkin cups were voluntarily recalled by the company, in coordination with the Consumer Product Safety Commission in July 2023 over concerns that the products contained lead in levels in excess of federal regulations.
Cupkin manufacturer Soojimus LLC did not warn consumers of the risk of lead poisoning from using the cups, plaintiffs contend in their lawsuit, calling the products “worthless and dangerous,” as lead poisoning is particularly harmful to babies and young children where it can potentially harm the brain, nerves, and digestive organs and cause myriad other health problems.
July 8, 2024 – Environment
Conservation Groups Sue to Stop Mississippi River Transmission Line
A coalition of conservation groups has filed a lawsuit seeking to stop plans to build the high-voltage Cardinal-Hickory Creek transmission line across a Mississippi River wildlife refuge.
Defendants in the suit, filed in federal court in Madison, Wisc., seek to build a 102-mile, 345-kilovolt line linking Iowa’s Dubuque County and Wisconsin’s Dane County. The cost of the line, according to the complaint, is expected to top half a billion dollars.
A portion of the line, the complaint says, would run through the Upper Mississippi River National Wildlife & Fish Refuge near Cassville, Wisc. The federal wildlife refuge is a haven for fish, wildlife, and migratory birds that use it as their breeding grounds, the complaint says, noting that millions of birds fly through the refuge, and for many migratory birds it’s the only remaining stopping point. The conservation groups argue in their suit that the U.S. Fish & Wildlife Service issued final approvals for the refuge crossing in February without giving the public a chance to comment.
July 5, 2024 – Product Liability
LINX Lawsuit Claims Implanted Reflux Device Failed Due to Manufacturing Defects
Plaintiff has filed a lawsuit in Minneapolis federal court against the manufacturers of the LINX reflux device, alleging that the implant designed to help with management of his gastroesophageal reflux disease was defective and broke inside his body.
According to the complaint, the LINX device is a small ring of magnetic beads linked by titanium wires, designed to be surgically implanted around the lower esophageal sphincter (LES). Its function is to strengthen the LES to prevent the backward flow of stomach acid, which is the primary cause of acid reflux disease symptoms.
A LINX recall was issued in April 2018, the complaint says, after it was discovered that manufacturing problems may cause some of the devices to fail, allowing a bead component to separate from an adjacent wire link while it is inside the body. Defendants in the suit are Torax Medical Inc. and Ethicon Inc.
July 3, 2024 – Constitution
Lawsuit Citing Mental Health Issues Seeks to End Indefinite Solitary Confinement in Pennsylvania
Six people arguing that solitary confinement worsens mental health and violates constitutional rights have filed a proposed class action in Philadelphia federal court, seeking to end indefinite use of the practice.
The lawsuit, filed against the state Department of Corrections, contends that people incarcerated have suffered from increased mental health struggles as a result, some having been in solitary confinement for up to 12 years consecutively. Plaintiffs allege in their suit that defendant is violating the constitutional rights of those incarcerated by punishing people for symptoms of mental illness.
The complaint states that mental health visits are not private, are conducted through the food slot in the steel doors, and only last seconds. And many of the plaintiffs, the complaint says, have harmed themselves or attempted suicide while in solitary confinement.
July 2, 2024 – Privacy
Walgreens Secretly Records Customer Service Calls, Lawsuit Alleges
Walgreens illegally records certain inbound calls made to its customer service number without consumers’ knowledge or consent, claims a proposed class action filed in San Diego Superior Court.
The lawsuit accuses Walgreens of violating California’s Invasion of Privacy Act, a law prohibiting the intentional recording of phone calls without permission from all parties involved. More specifically, the suit contends, Walgreens maintains a company-wide practice of secretly recording the conversations of callers who contact the pharmacy at one of its toll-free numbers, 1-877-250-5823.
Plaintiff says in her suit that she called the pharmacy’s customer service number in November 2023 to obtain information from a live representative about certain fragrance products and to make a purchase. “At no point during these inbound telephone communications was [the plaintiff] ever informed that her communications were being recorded,” according to the complaint. As a result, the woman “did not give, and could not have given consent” to having her conversation recorded because she was “entirely unaware” of this practice, the complaint says.
July 1, 2024 – Consumer Fraud
Campbell’s Faces Lawsuit Saying Its ‘Chunky Beef with Country Vegetables Soup’ Contains Less Beef Than Advertised
Campbell’s Chunky Beef with Country Vegetables soup contains less beef than consumers are led to believe, according to the complaint filed in federal court in Central Islip, N.Y.
The lawsuit claims that by including the word “beef” before “vegetables, and in a font twice as large, on the product’s front label, Campbell Soup Co. has indicated to consumers that the canned soup contains more beef than vegetables.
Plaintiff says in his suit that the U.S. Department of Agriculture has ruled that if a product is made with multiple ingredients, its name must reflect these ingredients in order of predominance. Campbell’s apparent failure to label its Chunky Beef with Country Vegetables soup in accordance with this rule renders the product misbranded under federal regulations, plaintiff argues. Further, by stating that the soup is made with “Country Vegetables,” Campbell has deceptively implied that the carrots and potatoes are prepared in the countryside, the complaint says.
June 27, 2024 – Product Liability
Lawsuit Alleges Jeep Wrangler Hybrids Can Catch Fire, Explode Due to Defect
A proposed class action claims that 2021-2023 model year Jeep Wrangler 4xe plug-in hybrids suffer from a defect that can cause their propulsion system to catch fire and explode, even when a vehicle is parked with the ignition off.
The lawsuit filed in Detroit federal court argues that the fire-and-explosion risk poses an unreasonable danger to drivers, passengers, pedestrians, and property, particularly if a 4xe hybrid suddenly ignites while parked at a proposed class member’s home, on a public street, or in a public parking lot.
Plaintiffs say in their suit that defendant manufacturer FCA failed to warn the public that the batteries found in the Wrangler plug-in hybrids were susceptible to fire, or that plaintiffs would be unable to park or charge their vehicles indoors due to the battery fire risk. “A plug-in electric hybrid that cannot be parked at its home or operated in electric mode is not fit for its ordinary purpose,” plaintiffs contend.
June 26, 2024 – Intellectual Property
AAA Sues Film Studio A24, Alleging Violation Over ‘AAA24’ Program
The American Automobile Association has filed a lawsuit in Manhattan federal court against movie and television studio A24 that accuses the studio’s “AAA24” film-buff discount program of violating plaintiff’s trademark rights.
A24, the entertainment company behind films including Academy Award winner “Everything Everywhere All at Once,” began offering its “AAA24” program in 2022 with member benefits including discounts, merchandise, and access to bonus content, according to the complaint. AAA, whose member services include roadside assistance and travel discounts, says in its lawsuit that A24 Film’s program would cause confusion with its own service, arguing that they offer similar membership services and benefits.
AAA contends that A24 intended to associate its program with that of AAA by using similar language in its promotions, for example A24 advertising that buyers can become “card-carrying” AAA24 members. Further, AAA says, A24 “elevated the possibility of confusion” by using AAA24 to promote a partnership with AMC Theaters, which also offers discounts on movie tickets to AAA members.
June 25, 2024 – Antitrust
Apple Faces Consumer Lawsuit Alleging Cloud Storage Monopoly
Apple is accused in a proposed class action of unlawfully monopolizing the market for cloud storage on its mobile devices, forcing iPhone customers to pay artificially high prices.
According to the complaint filed in federal court in San Jose, Calif., Apple “coerces” its customers into using the company’s iCloud service for storing and backing up certain “restricted” app data and device setting files. “Cloud Storage on Apple Mobile Devices is a billion-dollar industry that Apple completely dominates today,” the complaint says. and Apple’s restraints “can be coherently explained only as an attempt to stifle competition.”
Apple’s iCloud storage monthly subscription is free for up to 5 gigabytes of data and then ranges in price according to size. Plaintiff says in her lawsuit that she was paying $2.99 monthly for an iCloud storage plan and that Apple has unlawfully “tied” two distinct products, its mobile devices and cloud storage.
June 24, 2024 – Environment
Kimberly-Clark Kleenex Factory Said to Pollute Town With PFAS
Kimberly-Clark faces a proposed class action filed by Connecticut residents living near a facility where the company makes its popular Kleenex tissue, accusing it of contaminating their properties and drinking water with toxic “forever chemicals,” known as PFAS.
The lawsuit, filed in federal court for the District of Connecticut, alleges that the company has used PFAS to make tissues at its plant in New Milford, Conn., and these PFAS are then released into the air via smokestacks and may seep into the ground via paper sludge dumped at a nearby landfill. The residents state further in their complaint that PFAS emitted from the facility’s smokestacks attaches to air particles or rain before landing on their property and that these particles can seep through soil into groundwater. This contamination of their properties, plaintiffs claim, has led to a drop in property values and increased risk of disease from drinking polluted water.
Plaintiffs accuse Kimberly-Clark of being negligent, arguing that the company had a duty to take reasonable care not to expose the residents to toxic chemicals. The company violated that duty, plaintiffs say, because it failed to warn them that PFAS were being used and failed to take steps to stop dangerous PFAS releases.
June 20, 2024 – Cybersecurity
Data Breach Lawsuit Says Physicians Group Failed to Protect Patient Info from Cybercriminals
A proposed class action claims that healthcare group Physicians to Women Inc. is at fault for an April 2023 data breach.
The compromised files contained personal information from current and former patients, including names, Social Security numbers, dates of birth, and certain medical data, according to the complaint filed in federal court in Roanoke, Va.
In her lawsuit, plaintiff contends that Physicians to Women failed to maintain basic cybersecurity protocols to protect the highly confidential information in its care, such as encrypting the data or deleting it when it was no longer needed. Defendant could have prevented the incident had it implemented proper encryption practices, plaintiff argues, adding that in light of the frequency of cyberattacks in the healthcare industry in recent years, defendant should have understood the risks of a breach and taken commensurate measures to secure patients’ information.
June 19, 2024 – Product Liability
Video Games Alleged to Be Designed to Cause Addiction in Children
A teenager has filed a video game addiction lawsuit against the developers of Fortnite, Call of Duty, Minecraft, and other popular games, alleging that he suffered brain damage, behavioral problems, and mental health issues due to “intentionally addictive” game designs.
Plaintiff, in his lawsuit filed in Atlanta federal court, seeks damages from several major developers, including Activision, Rockstar, Take-Two Interactive Software Inc., and Ubisoft, as well as game platform manufacturers Microsoft and Nintendo.
The suit claims that video games are intentionally designed to cause addictions among teenagers and children by monitoring their online activity and using algorithms based on their behavior to keep them playing longer. Another frequently used tactic requires players to pay a set amount for randomly selected prizes. However, the suit says, the most useful or rewarding of those prizes are designed to “drop” extremely rarely, forcing players to buy again and again to get what they want.
June 18, 2024 – Antitrust
Luxury Hotels Face Price-Fixing Lawsuit
A group of luxury hotel operators and commercial real estate company CoStar have been accused of conspiring to keep room rental prices artificially high.
In addition to CoStar, defendants include Hilton, Hyatt, and Marriott. The lawsuit was filed in Seattle federal court by seven residents of California, Florida, Illinois, and other states, seeking damages under U.S. antitrust law for alleged room price overpayments.
Plaintiffs claim in their suit that defendants have been sharing competitively sensitive, commercial information through CoStar’s Smith Travel Research reports that show “performance benchmarking and comparative analytics” for the industry. The defendant hotels, plaintiffs say, shared prices and future plans, allowing participating companies to use rivals’ strategic information to inflate prices in Washington, D.C., San Francisco, New York, Nashville, Chicago, Boston, Austin, and other cities.
June 17, 2024 – Securities
Autonomous Driving Software Provider Accused of Securities Fraud
Mobileye, a developer of autonomous driving software and driver-assistance systems, and its top officers are defendants in a proposed class action filed in Manhattan federal court.
The lawsuit accuses the defendants of failing to disclose that customers had experienced inventory backlogs and planned to purchase fewer computer chips from Mobileye in 2024.
Supply chain shortages from 2021 through 2022, the suit says, incentivized customers to purchase large quantities of chips in 2023, but those customers overcompensated and purchased too many chips, leading to lower revenue projections for Mobileye in 2024.
June 14, 2024 – Product Liability
Lawsuit Alleges Presence of Lead in Stanley Quencher Tumbler Cups
The makers of the popular Stanley Quencher cups face a proposed class action filed in Los Angeles Superior Court, with plaintiffs alleging they were not warned the metal tumblers contained toxic levels of lead.
According to the complaint filed against Pacific Market International (PMI), lead exposure, can cause a number of serious health issues for adults and children, including nervous system injuries, brain damage, seizures, convulsions, coma, cognitive impairment, and even death. Further, the complaint says, health officials have established that there is no safe blood lead level for developing fetuses, and even exposure to small lead levels has been associated with poor or delayed mental development.
Plaintiffs in their lawsuit accuse PMI of intentionally failing to notify consumers about the presence of lead in its tumblers. “PMI has marketed its products to the public for years as a safe, practical item especially suitable for young women. But PMI did not disclose its use of lead in manufacturing until January 2024,” plaintiffs argue. The suit notes that lead is dangerous even in trace amounts; and even with a protective steel covering there is a risk that if the cups are damaged, adults and children drinking from them could be exposed to lead.
June 13, 2024 – Consumer Fraud
Cheerios Accused of Failing to Disclose Dangerous Levels of Chemical Pesticide
General Mills does not disclose to consumers that Cheerios contains “dangerous levels” of the harmful chemical pesticide chlormequat chloride, alleges a proposed class action filed in San Diego federal court.
The lawsuit says that the chlormequat chloride found in the famous cereal has been linked to fetal growth issues and nervous system issues, among other adverse health effects. The pesticide, the suit says, is used to control plant size by blocking growth hormones.
Independent lab analysis, according to the complaint, has revealed that the following General Mills cereals have tested positive for the presence of chlormequat: Cheerios, Honey Nut Cheerios, Frosted Cheerios, and Oat Crunch Oats N’ Honey Cheerios. Neither the Cheerios packaging nor product labels list chlormequat as an ingredient in the cereal, and consumers are not warned about the potential inclusion of the pesticide in the products at issue, the complaint says.
June 12, 2024 – Disability Act
Lowe’s Website Denies Full Accessibility to Visually Impaired, Lawsuit Alleges
A proposed class action filed in Minneapolis federal court claims that Lowe’s website — www.lowes.com — is not fully accessible to people who are blind or who have low vision, in violation of the Americans with Disabilities Act.
When digital content is properly formatted through screen readers, according to the complaint, it is universally accessible to everyone. When it’s not, the content provider fails to communicate effectively with individuals with a visual disability. In turn, the complaint says, these individuals must expend additional time and effort to overcome communication barriers not applicable to sighted users.
Plaintiff contends in her lawsuit that Lowes has several digital barriers that deny screen-reader users “full and equal access to important website content – content defendant makes available to its sighted website users.” For example, plaintiff says, the purpose of certain links and buttons on defendant’s website is not described adequately to screen-reader users. Further, the website does not provide sufficient screen-reader accessible text equivalent for important non-text images — people who are blind will not be able to understand the content and purpose of images, such as pictures, illustrations, and charts when no text alternative is provided.
June 11, 2024 – Labor & Employment
Valnet Accused of Misclassifying Content Creators as Independent Contractors
Valnet, a digital media publisher that owns popular brands like MovieWeb, Screen Rant, and HotCars, has unlawfully denied content creators proper wages by misclassifying them as independent contractors, alleges a proposed class action filed in Los Angeles Superior Court.
The lawsuit says that Valnet hires content creators to make and edit content on its websites and YouTube channels. However, the suit contends, these workers have been wrongfully classified as independent contractors given that defendant exercises “substantial control” over how they accomplish their work. Defendant’s actions are an attempt to avoid paying overtime and minimum wages as required by federal and state law, plaintiff argues.
For example, according to the complaint, the content creators are told how to craft headlines, order content, and upload pictures to attract the most viewers to each content post, and they are required to assign full rights to their content and intellectual property to Valnet. Ultimately, the complaint says, the company’s content creators “do not create and edit content for their own independent businesses, but create content solely for Valnet property websites and digital channels.”
June 10, 2024 – Intellectual Property
Plaintiff Claims It Does Not Infringe on Defendant’s Mark ‘Mutty Paws’
The lawsuit — filed in federal court in Ft. Lauderdale, Fla., by Mutty Paws Rescue Inc. versus Mutty Paws Inc. — seeks a declaration by the court of non-infringement concerning plaintiff’s use of “Mutty Paws.”
There is no confusion in how both parties use the trademarks, plaintiff contends in its suit. Defendant’s use of the mark, plaintiff says, refers to pet grooming and boarding, while plaintiff’s use refers to animal rescue services, namely, arranging for the adoption of rescued animals.
Plaintiff says that it has conducted its operations with “clear and distinct branding” that differentiates its services from those offered by defendant. Further, the plaintiff argues that “Mutty Paws Rescue” has been used in good faith, aimed at promoting animal welfare and rescue operations, and despite the coexistence of the plaintiff’s and defendant’s marks, there has been no evidence of actual confusion among consumers.
June 6, 2024 – Securities
FTX Investors Sue Law Firm, Alleging It Played a Role in Crypto Fraud
A group of FTX investors has filed a proposed class action in Miami federal court against law firm Sullivan & Cromwell, claiming it participated in the defunct cryptocurrency exchange’s multibillion-dollar fraud before further enriching itself as FTX’s bankruptcy counsel.
Sullivan & Cromwell, which did legal work for FTX during the company’s rise, had unique insight into the exchange’s “convoluted organizational structure, abject lack of internal controls, and dubious business practices,” according to the complaint. The firm, the complaint says, “was eager to craft not only creative but misleading strategies that furthered FTX’s misconduct.”
Plaintiffs in their lawsuit point to Sullivan & Cromwell’s work as court-appointed counsel advising FTX in its bankruptcy, arguing the firm knew FTX was in financial trouble but “realized it stood to gain hundreds of millions more from their work in bankruptcy.”
June 5, 2024 – Antitrust
‘Call of Duty’ Gamers Say Activision Monopolizes Games, Tournaments
Video game maker Activision Blizzard faces a lawsuit filed in Los Angeles federal court claiming it restricts competition for organized gaming involving its flagship franchise “Call of Duty.”
In their suit, plaintiffs claim that Activision is unlawfully monopolizing the lucrative market for Call of Duty leagues and tournaments. Call of Duty, a first-person-shooter game, is one of the industry’s all-time best sellers and has helped propel Activision to billions of dollars in annual revenue, according to the complaint.
Activision in 2016 paid $46 million to buy Major League Gaming, which plaintiffs contend was the leading Call of Duty competition organizer. League and tournament play for Call of Duty was a “vibrant, competitive product market” until 2019, when Activision moved to open its own league and eliminate competition, plaintiffs say, adding that Activision then imposed “draconian” contract provisions on teams and players.
June 4, 2024 – Constitution
Vanguard’s Terms of Use Alleged to Infringe on Consumers’ Free Speech Rights
A proposed class action claims investment advisor Vanguard Group has violated consumers’ right to free speech by including in its terms of use a provision that prohibits website visitors from posting negative statements about the company and its services.
Vanguard, in order to promote a positive public image, has attempted to “silence” its customers’ Terms of Service by imposing unlawful terms of use, to which consumers purportedly agree simply by using Investor.Vanguard.com, according to the complaint filed in superior court in San Diego, Calif.
Specifically, plaintiffs contend in their lawsuit that defendant forces users to agree not to make “derogatory” statements attacking the company or use any of its brand names in a way that “disparages or discredits Vanguard.” The defendant also warns that consumers who fail to comply will have their rights terminated immediately upon any violation of the company’s terms of use, plaintiffs say.
June 3, 2024 – Breach of Contract
Amazon Prime Video New Ad Tier Challenged in Class Action
An Amazon Prime customer has filed a proposed class action against the company, arguing that it breached its contract and engaged in false advertising when it added an additional charge for Prime customers to receive ad-free streaming of Prime Video.
The lawsuit, filed in federal in federal court in Seattle, Wash., deals with a recent change to how Amazon Prime deals with ad-free viewing on Prime Video. Formerly, Amazon Prime subscribers paid $14.99/month or $139/year for a number of Amazon-related benefits, including ad-free viewing of movies and TV shows available on Prime Video. However, according to the complaint, in January 2024 Amazon changed the terms. Prime subscribers must now pay an additional $2.99/month for ad-free viewing, with regular Prime subscribers able to continue watching their shows with ads attached.
Plaintiff in his suit contends that he and many others like him purchased a Prime subscription with an expectation of ad-free streaming, which has been available since Prime Video was launched in 2011. The complaint points out that people such as the plaintiff who purchased an annual subscription to the service in, say, June (before the change was rolled out) would have spent $139, only to have the terms of their purchase changed in the middle of their subscription period, effectively constituting a breach of contract.
May 30, 2024 – Intellectual Property
Samsung Named in Alleged Smartphone Patent Violation
Samsung Electronics has been hit with a patent violation lawsuit filed in federal court in Austin, Texas, relating to smartphones with two cameras.
Given today’s nearly universal adoption of smartphones with large displays and multiple cameras, according to the complaint, it is difficult to recall how cellular phones were in their infancy. Back then, the complaint says, device manufacturers and software companies were focused on making a cellular phone that mimicked a traditional phone.
The patent in question, the complaint says, involves a device having two cameras and two displays for providing interpretive communication on a network: an “Internet-capable cellular phone, or similar handheld device, capable of receiving, accessing, displaying, and broadcasting.” Defendant’s infringing products, the suit says, include the Galaxy Z Fold and Galaxy Z Flip, among other branded products.
May 29, 2024 – Privacy
MLB TV Subscribers’ Personal Data Secretly Given to Facebook, Lawsuit Alleges
A proposed class action filed in Manhattan federal court claims MLB.tv has unlawfully shared the personal data of hundreds of thousands of subscribers with Facebook without consent.
In unlawfully sharing subscriber information, according to the complaint, Major League Baseball Advanced Media L.P. has violated the Video Privacy Protection Act (VPPA), a federal law that bars “video tape service providers” from knowingly disclosing consumers’ personally identifiable information without express permission.
The complaint says that when a user accesses MLB.tv or the app, back-end tracking tools embedded into the platform automatically transmit to Facebook the title and URL of any videos they watch and their Facebook ID, a unique string of numbers that can be used to identify an individual’s social media account. By sharing this combination of data, the complaint says, the company makes it possible for Facebook to “quickly and easily” link a specific subscriber to their video-viewing preferences.
May 28, 2024 – Product Liability
Bosch Dishwasher Labels Said to Fade, Rendering Appliances Unusable
A proposed class action filed in San Francisco federal court alleges certain Bosch dishwashers are made with defective control panel labeling that fades soon after purchase, leaving the appliances “impossible, or at least unreasonably difficult,” to use.
According to the complaint, the Bosch Home Appliances’s 100-, 300-, 500- and 800-Series dishwashers are “defectively designed” given that their control panel labeling fades too quickly. The control panel labeling, the complaint says, includes numerous settings and buttons that “are not intuitive to use,” and the faded lettering leaves the appliances unfit for their intended purpose of washing dishes.
Plaintiffs allege in their lawsuit that Bosch is aware that the dishwasher label fading problem is “widespread” but has failed to provide repairs for the defect under warranty or to fix the issue. “Reasonable consumers expect that when they splurge on a high-priced Bosch dishwasher (which can easily cost over $1000), it not only looks good but can perform its basic functions as intended,” plaintiffs argue. “However, despite their high price, Bosch-brand dishwashers suffer from a common defect which renders them unfit for their intended purpose.”
May 27, 2024 – Antitrust
Gov’t Sues Live Nation, Alleging Practices That Result in Higher Concert Prices
The U.S. Justice Department has sued Live Nation Entertainment, the parent company of Ticketmaster, seeking to break up Live Nation over claims it illegally maintains a monopoly in the live entertainment industry.
In the lawsuit filed in Manhattan federal court, the government accuses Live Nation of dominating the industry by locking venues into exclusive ticketing contracts, pressuring artists to use its services, and threatening rivals with financial retribution. The suit was joined by 29 states and the District of Columbia. Live Nation’s tactics, the government argues, have resulted in higher ticket prices for consumers and have stifled innovation and competition throughout the industry.
Live Nation, according to the complaint, controls around 60 percent of concert promotions at major venues around the United States and, through Ticketmaster, roughly 80 percent of primary ticketing at major concert venues. The Justice Department in its suit refers to the many add-on fees as “essentially a ‘Ticketmaster Tax’ that ultimately raises the price fans pay.” The government further contends that Live Nation threatens venues with losing access to popular tours if they do not use Ticketmaster and also threatens to block from its venues artists who do not work with the company.
May 23, 2024 – Cybersecurity
Paycom Payroll Faces Lawsuit Claiming Data Breach by Unknown Hacker
HR software company Paycom Payroll has been hit with a proposed class action over a 2023 data breach during which an unknown party allegedly accessed the company’s systems and stole thousands from customers’ accounts by re-routing direct deposits to unknown accounts.
Plaintiffs allege in their lawsuit, filed in federal court in Oklahoma City, Okla., that those responsible for infiltrating the company’s systems “still have access to Paycom’s network” and thus access to customers’ personally identifiable information.
Paycom services thousands of employers nationwide and collects in the course of its business Social Security numbers, addresses, dates of birth, phone numbers, financial account numbers and more, according to the complaint. “As such, Defendant assumed the legal and equitable duties to those individuals to protect and safeguard that information from unauthorized access,” the complaint says, adding that defendant failed to notify plaintiffs of the data breach, leaving them to discover the intrusion on their own only after “it was too late and unknown persons had already stolen their hard-earned paychecks.”
May 22, 2024 – Consumer Fraud
Colgate-Palmolive’s Pet Food Unit Faces Lawsuit Over Health Marketing
Hill’s Pet Nutrition Inc., a subsidiary of Colgate-Palmolive, has been hit with a proposed class action accusing it of conspiring with veterinarians to disparage smaller competitors that sell “non-traditional” dog food.
The lawsuit was filed by startup brand KetoNatural in Kansas federal court against Hill’s Pet Nutrition, which is one of the largest pet-food manufacturers in the United States, and a group of veterinarians. The suit asserts violations of a federal law that prohibits false advertising.
Hill’s Pet Nutrition, according to the complaint, has conspired to make false statements linking “boutique, exotic and grain-free” diets to a greater risk of a deadly canine disease that causes an enlarged heart. These statements, the complaint says, “misrepresented the nature, qualities, and characteristics” of plaintiff’s product. “Defendants’ false claims about the dangers of pet food from smaller manufacturers have scared billions of dollars of business away from smaller manufacturers and into Hill’s coffers,” the suit contends.
May 21, 2024 – Antitrust
Tire Makers Sued Over Alleged Price Fixing
Major tire manufacturers, including Michelin, Bridgestone, and Goodyear, have been sued in Manhattan federal court for alleged price-fixing.
The defendants — consisting of six tire companies and a group of affiliated entities — are accused of artificially inflating the price of new replacement tires in the United States for vehicles including cars, trucks, and buses. The lawsuit seeks class-action status for U.S. purchasers of tires from the tire makers since January 2020.
The “U.S. tire industry for years has been highly concentrated,” according to the complaint, “and there is a history of antitrust violations by tire manufacturers.” The lawsuit seeks to recover unspecified punitive damages and an injunction against alleged anticompetitive practices.
May 20, 2024 – Civil Rights
Grant Program Said to Discriminate Against White Men
Hidden Star, a Texas-based nonprofit that awards grants to minority- and female-owned businesses, shouldn’t be allowed to discriminate against white men who want to apply for funding, the American Alliance for Equal Rights says.
The Civil Rights Act prohibits racial discrimination in the making and enforcement of contracts against whites as well as nonwhites, according to the complaint filed in federal court in Austin, Texas. Defendant is breaking the law by inking contracts with some races but not others, the complaint says.
Under Hidden Star’s Galaxy Grant Program, plaintiff says, Hidden Star awards $2,750 to several applicants. Eligibility for the contest depends on an applicant’s race, plaintiff says, noting that the grant program is “open only to persons” who are “a confirmable ethnic minority or female.” So between two male applicants — one black and one white — the latter cannot apply because he is the wrong race, plaintiff argues.
May 16, 2024 – Intellectual Property
Cigarette Company Sues Over Jewelry Company’s Use of ‘Kool’ Mark
ITG Brands, owner of the ‘Kool’ trademark and logo for cigarettes, has sued jewelry company Fremada Gold for infringement, seeking to enjoin defendant from using the mark “Kool Jewelry & Design.’
ITG in its lawsuit filed in Manhattan federal court is challenging defendant’s application to register the mark “Kool Jewelry & Design,” with a design element consisting of Interlocking “o’s” in the word Kool, for “online retail store services featuring gold and silver in the form of jewelry.”
Defendant’s conduct is likely to mislead the public into believing that defendant’s services and products sold using the “Kool Jewelry & Design” mark are affiliated with ITG and “its famous and well-known Kool marks.” What is exacerbating the likelihood of confusion, plaintiff argues, is the fact that defendant is using an interlocking OO design element that is nearly identical to the interlocking OO design element used by plaintiff.
May 15, 2024 – Labor & Employment
J&J Faces Lawsuit Over Employees’ Prescription Drug Costs
Johnson & Johnson has been charged in a proposed class action of failing to negotiate lower prices for prescription drugs for the company’s employee health plans, which allegedly cost workers millions of dollars in overpayments for generic drugs.
The lawsuit, filed in federal court in New Jersey by Ann Lewandowski, a healthcare policy and advocacy director, accuses J&J of breaching its duty under the federal Employee Retirement Income Security Act of 1974 to prudently manage employee benefit plans.
J&J’s self-funded health plans pay inflated prices to pharmacy benefit managers for many generic drugs, which in turn raises out-of-pocket costs for workers, according to the complaint. For example, the complaint says, the plans pay $1,629 for a 90-pill prescription of an HIV antiviral drug medication that costs pharmacies about $180. And while prescriptions of teriflunomide, used to treat multiple sclerosis, typically cost no more than $77 out of pocket, J&J’s health plans pay $10,200.
May 14, 2024 – Cybersecurity
ECSI Accused of Allowing Cybercriminals to Use Company Website Search Function to Steal Private Data
A proposed class action filed in Pittsburgh federal court accuses ECSI, which provides colleges and universities with financial services related to student loan servicing and tax document preparation, of failing to protect customers’ private data during a cyberattack in April 2024.
According to the complaint, “significant data security flaws” in an online search function on ECSI’s website allowed an unauthorized third party to gain access to personal information belonging to potentially hundreds of thousands of students and individuals affiliated with the company’s college and university clients.
The complaint says that the company first detected in February of this year an “unusually high volume of access attempts” on an online form that allowed students and borrowers to search and access tax and financial records without having to log into a user profile. Plaintiff contends in her lawsuit that cybercriminals, who had discovered the “security flaw,” manipulated the online “guest” search function to exfiltrate personal and financial data. Cybersecurity on ECSI’s part was, plaintiff argues, “recklessly negligent,” as the company’s online search function — now deactivated — created a “significant security risk” to consumers’ sensitive data because it allowed “anyone on the internet” to access confidential tax forms without logging in and verifying their identity.
May 13, 2024 – Consumer Fraud
Amazon Steers Customers to Higher-Priced Items, Lawsuit Alleges
Amazon.com has been sued in a proposed class action accusing the company of violating consumer protection laws by directing hundreds of millions of shoppers to higher-priced items in order to earn extra fees.
According to the complaint filed in Seattle federal court, Amazon’s algorithm for choosing what to display in its “Buy Box” when shoppers search for products often obscures lower-priced options with faster delivery times. For example, the complaint says, shoppers go with Amazon’s choices nearly 98% of the time by clicking its “Buy Now” or “Add to Cart” buttons, often falsely believing Amazon had found the best prices.
Plaintiffs in their lawsuit argue that Amazon created the algorithm to benefit third-party sellers that participate in its Fulfillment By Amazon program and pay “hefty fees” for inventory storage, packing and shipping, returns and other services. “While ostensibly identifying the selection that consumers would make if they considered all the available offers,” plaintiffs say, “Amazon’s Buy Box algorithm deceptively favors Amazon’s own profits over consumer well-being.”
May 10, 2024 – Breach of Contract
AAdvantage Lawsuit Says American Airlines Wrongfully Terminated Members’ Reward Miles
American Airlines improperly closed plaintiffs’ frequent flyer reward program accounts, resulting in the combined loss of more than one million validly earned miles and the cancelation of upcoming flights booked with miles, according to a proposed class action filed in San Jose federal court.
In their lawsuit, plaintiffs claim that AAdvantage members are allowed to earn miles — which can be redeemed when purchasing flights or for flight upgrades, car rentals and more — by using credit cards issued by the airline’s co-branding partners, including Citibank and Barclays. Further, plaintiffs say, members can rack up miles through enrollment bonuses when they open a Citi-AAdvantage or Barclays-AAdvantage credit card and when using their card to make everyday purchases.
Plaintiffs argue that American Airlines has no basis for shutting down members’ AAdvantage accounts. And further, plaintiffs say, the airline does not adequately disclose to AAdvantage members why their accounts have been terminated — when the airline shut down plaintiffs’ accounts, they were informed via email that the termination stemmed from alleged violations of the “General AAdvantage Program Conditions” and the accrual of miles and benefits through “fraud, misrepresentation and/or abuse of the AAdvantage Program
May 9, 2024 – Constitution
TikTok Sues Feds Over Potential Social Media App Ban
TikTok has filed a lawsuit seeking to block recently passed federal legislation that would force the social media app to be divested from Chinese parent-company ByteDance or be banned in the U.S.
In the suit, filed in the U.S. Court of Appeals for the District of Columbia against U.S. Attorney General Merrick Garland, TikTok says the legislation, called the Protecting Americans from Foreign Adversary Controlled Applications Act, is “obviously unconstitutional.”
“For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide,” TikTok argues in its complaint. The law requires TikTok to divest itself from ByteDance within nine months or the federal government will block cloud service providers and app stores from listing it in the U.S.
May 8, 2024 – Privacy
Teladoc Accused of Secretly Sharing Telehealth Website Users’ Data with Third Parties
A proposed class action alleges virtual healthcare company Teladoc Health has secretly shared website visitors’ private information with third parties, including Facebook, without consent.
The lawsuit, filed in federal court in White Plains, N.Y., claims that when users visit the company’s website, TeladocHealth.com, invisible web-tracking technology automatically intercepts and discloses their personal data and online communications to unauthorized third parties, which then use the information for targeted marketing purposes.
In their suit, plaintiffs say that Teladoc has “intentionally installed” into its website Facebook’s Meta pixel and Conversions application programming interface, which are tracking tools designed to capture and transmit back to the social media company a visitor’s every interaction with the website in real time. This practice, plaintiffs argue, is the equivalent of “bugging” or “wiretapping” a phone line, as Teladoc allows unrelated third parties to effectively “listen in” on communications that users intended only for the telehealth company.
May 7, 2024 – Securities
Rivian Accused of Overstating Product Demand for Its EVs
A proposed class action filed in Los Angeles federal court alleges that Rivian and certain executives unlawfully made materially false and misleading statements about demand for its sport utility and pickup truck electric vehicles.
According to the complaint, in February 2024 Rivian announced its fourth-quarter and full-year results for 2023 and stated it expected to produce 57,000 vehicles in 2024. This number was “significantly lower” than analysts’ projections of 80,000 Rivian pickup trucks and SUVs, the complaint says. Rivian is a competitor of Tesla.
In his Rivian lawsuit, plaintiff claims that the alleged false and misleading statements from the company include its overstatement of demand for its products and its ability to withstand “negative, near-term macroeconomic impacts.” Moreover, plaintiff says, Rivian failed to disclose that, as a result of these impacts, its business was experiencing lower demand and higher customer cancellations due to high interest rates.
May 6, 2024 – Consumer Fraud
StubHub Said to Hide Additional Ticket ‘Junk Fees’ Until Checkout
Ticket exchange company StubHub systematically misrepresents event ticket prices by concealing additional “junk fees” until checkout, alleges a proposed class action filed in San Francisco federal court.
Plaintiffs contend in their suit that a consumer, while searching for an event on StubHub.com, can apply a filter to view ticket prices that include “estimated fees.” However, plaintiffs say, when a user applies this filter, StubHub consistently understates the additional fees it charges until final checkout.
According to the complaint, when consumers turn on the “estimated fees” filter, they are led to believe that the stated price will be the total amount they will pay for a ticket. Nevertheless, the complaint says, StubHub “invariably understates the total cost (with estimated fees) of every single ticket quoted at or above $20 by an exact amount of $3 per ticket.” Tickets quoted below $20 are also regularly increased at checkout.
May 3, 2024 – Cybersecurity
HALO Branded Solutions Failed to Protect Employees’ Info During Cyberattack, Lawsuit Alleges
HALO Branded Solutions, which creates customized branded merchandise, faces a proposed class action in Chicago federal court over a 2023 cyberattack that allegedly compromised the personal data of current and former employees.
A criminal threat actor gained access to HALO’s computer systems and obtained files containing private information in November 2023, according to the complaint. The cyberattack exposed the names, dates of birth, and Social Security numbers of company employees, the complaint says.
In his lawsuit, plaintiff argues that despite HALO’s duty to safeguard the sensitive data in its care, the company failed to implement adequate cybersecurity protocols to prevent unauthorized intrusion into its network. As a result of the company’s negligence, plaintiff says, employees’ private information is now “in the hands of criminals” who can use it to target employees for cyber-crimes such as identity theft and fraud.
May 2, 2024 – Disability Act
Walmart Shoppers With Visual Disabilities Say They Were Denied Equal Access to Website
A proposed class action claims Walmart Inc. has violated the Americans With Disabilities Act (ADA) by failing to ensure that its website is “fully and equally accessible” to consumers who are blind or have vision-related disabilities.
The lawsuit was filed in federal court in Minneapolis, Minn., by two consumers who are legally blind and navigate the internet by relying on screen-reader technology, which reads the content of a webpage to users. The plaintiffs allege in their suit that Walmart.com, in violation of the ADA, contains numerous “digital barriers” that block users of screen-reader software from fully accessing important website content that is readily available to sighted consumers.
For example, according to the complaint, Walmart.com fails to alert screen-reader users to pop-up window content. “Instead, screen readers remain focused on the content of the website’s underlying page,” the complaint says, and as a result, pop-up content Walmart deems sufficiently important to convey to its sighted website visitors is “completely unavailable to screen reader users.” In addition, plaintiffs note, the website does not provide adequate text equivalents for images, with the result that individuals with visual impairments are not able to understand a featured picture’s content and purpose.
May 1, 2024 – Environment
Business Groups Sue Over California Emissions Reporting Law
A coalition of business groups, including the U.S. Chamber of Commerce, has filed a lawsuit seeking to block California’s new emissions reporting law.
In their suit filed in Los Angeles federal court, the groups argue that the “first-in-the-nation” law and another measure requiring companies to file reports on climate-related risks conflict with existing federal environmental laws and violate the First Amendment by compelling speech.
The emissions reporting law, according to the complaint, requires companies with more than $1 billion in revenue and doing business in California to disclose emissions annually starting in 2026. The suit also targets a new law requiring companies with more than $500 million in annual revenue and doing business in California to prepare a report on climate-related financial risks, the first report due on or before January 1, 2026, with further reports required every two years.
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