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.
In his suit, plaintiff 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.
April 30, 2024 – Negligence
Lyft Accused of Failure to Prevent Predators from Attacking Women
Lyft Inc. faces a sexual assault lawsuit brought by a passenger who indicates she was raped repeatedly by one of the rideshare service’s drivers.
In her lawsuit filed in San Francisco federal court, plaintiff claims that Lyft failed to take basic measures to protect its passengers, such as background checks for its drivers. Plaintiff says she requested a ride through the Lyft app while intoxicated. She told the driver she was not feeling well and needed to get home.
However, when the Lyft driver pulled up to the plaintiff’s destination, according to the complaint, he began trying to grope and kiss her and followed her inside her residence, despite her asking him not to do so. Once inside, the complaint says, the Lyft driver raped her repeatedly by force, resulting in allegations by plaintiff that the company should be held responsible for exposing riders to sexual predators.
April 29, 2024 – Intellectual Property
Levi Strauss Sues Over Alleged Violation of Trademarked Tab
Levi Strauss has sued luxury fashion house Brunello Cucinelli in San Francisco federal court, accusing the Italian brand of infringing its trademarked rectangular pocket tab.
In its lawsuit, Levi provided 14 photos of Brunello Cucinelli clothing containing “nearly identical” copies of Levi’s tab, which the retailer said it trademarked in 1938.
Levi says that consumers will likely be confused, and it will likely lose sales and suffer “incalculable and irreparable damage” to its goodwill and reputation unless Brunello Cucinelli stops selling its infringing clothing. Levi notes that its repeated attempts to resolve the dispute without litigation were unsuccessful.
April 25, 2024 – Product Liability
Lawsuit Filed Over Alleged Toxic Metals in Baby Food Products
Walmart, Beech-Nut, and Gerber face a lawsuit filed in federal court in Las Vegas, Nev., alleging that a child’s autism diagnosis was caused by mercury, lead, and arsenic in defendants’ baby food products.
Plaintiff in the suit is a child who ingested defendants’ baby food products and as a result allegedly suffered toxic heavy metal exposures that caused or substantially contributed to plaintiff developing lifelong brain damage and other neurodevelopmental disorders.
In 2021, according to the complaint, a U.S. Congressional report documented that dangerous levels of lead, arsenic, cadmium, and mercury were found in a number of popular baby foods; and nearly two years later, reports suggest that toxic metals in baby food remain a “pervasive problem.” Plaintiff seeks to hold defendant manufacturers accountable for their “reprehensible conduct” and ensure they are punished for permanently affecting plaintiff’s ability to live a fulfilling life.
April 24, 2024 – Cybersecurity
New York Accuses Citibank of Failing to Prevent Fraud
The New York State Attorney General’s Office claims Citibank has systematically failed to protect its customers from fraud and to reimburse victims of scammers and hackers.
In a civil complaint filed in Manhattan federal court, the AG’s office says Citibank, the nation’s third largest, has not met the Electronic Fund Transfer Act’s (EFTA) requirements that banks make efforts to limit theft and reimburse customers for stolen funds.
The lawsuit focuses on Citi’s alleged failures to defend customers from wire-transfer scams. The bank, according to the complaint, specifically instructs consumers to waive EFTA protections before it investigates fraud claims. “In fact, under cover of these coerced affidavits,” the complaint says, “Citi treats consumers’ claims as subject to narrow commercial laws governing wire transfers rather than the EFTA’s robust protections for unauthorized electronic payments. Citi then summarily rejects claims for reimbursement and instead blames consumers.”
April 23, 2024 – Securities
SEC Charges Convertible Note Dealer for Failure to Register
The U.S. Securities & Exchange Commission has filed a lawsuit targeting defendants for allegedly entering into stock purchase agreements with penny stock companies as unregistered dealers.
The suit, filed in Miami federal court, contends that Adar Bays LLC and other defendants loaned cash to penny stock companies in order to convert large sums of “deeply discounted” stock and sell it on the market at a profit.
Defendants failed to register as securities dealers in connection with their convertible note financing business that involved obtaining and selling securities of over 100 microcap companies, according to the complaint. (Micro-cap stocks are defined as having a market capitalization between $50 and $300 million.) Defendants’ convertible note financing business, the complaint says, allowed the defendants to obtain a large number of shares of these microcap companies, which defendants then sold into the securities marketplace under circumstances that required the defendants to register with the SEC as securities dealers.
April 22, 2024 – Constitution
Parents of Mississippi Football Player Who Died Sue School District
The parents of a Mississippi high school football player have filed a lawsuit against the Rankin County (Miss.) School District after the teenager died following a collapse during football practice in 2022.
The teenager died from a cardiac arrhythmia after collapsing during an afternoon football practice, according to the complaint filed in federal court in Jackson, Miss. The parents accuse the school district of negligence and violation of their son’s due process rights under the 14th Amendment.
The complaint states that because it was the first day of practice, the football players had not gone through a two-week acclimatization to the heat, and the teenager, a 6-foot-1, 328-pound lineman, was at higher risk for heat exhaustion and heat stroke. “On the first day of practice,” the parents contend their suit, their son was required to do wind sprints for a lengthy period of time without any breaks. “[The school district] did not modify their practices in light of the conditions and did not suspend all conditioning during this period. [Their son] should not have been subjected to any conditioning on the first day of practice let alone at a time when the heat index was over 103 … [the school district’s] deliberate failures led to [the boy’s] preventable death.”
April 18, 2024 – Product Liability
Target Faces Lawsuit Over Bacterial Contamination that Allegedly Led to Vision Loss
A New York couple has filed a lawsuit against Target Corp. in Manhatton federal court, claiming that the company left on its store shelves eye drops that were known to be contaminated with bacteria, resulting in a severe eye infection.
According to the complaint, plaintiffs purchased UP & UP High-Performance Lubricant Eye Drops in April 2023, which were manufactured at the same factories in India linked to a massive eye drops recall first announced by the U.S. Food & Drug Administration in February 2023, after at least 55 reports were confirmed involving users who had suffered eye infections after exposure to bacteria in the eye drops, with several infections resulting in permanent blindness and at least one death from a severe bloodstream infection.
Plaintiffs say in their suit that Target continued to sell its eye drops manufactured in India for months after learning about the problems and did not warn consumers about the risk of bacterial contamination until at least November 2023, months after several other major retailers, including CVS, Walmart, and Rite Aid, had recalled their eye drops.
April 17, 2024 – Consumer Fraud
Bloody Mary Cocktail Mix Said to Be Not as ‘Preservative-Free’ as Advertised
A proposed class action filed in San Diego federal court claims the companies behind Mr & Mrs T Original Bloody Mary cocktail mix have misled consumers by advertising the product as preservative-free when, in fact, it contains the additive citric acid.
Although defendants “unequivocally and boldly” claim the bloody mary mix contains “No Added Preservatives,” the complaint says, the product’s ingredients list reveals the presence of citric acid — an additive commonly used as a preservative in foods and beverages.
Plaintiff argues in her lawsuit that the product’s label claim is misleading because citric acid functions as a preservative regardless of whether it is added for a separate purpose. Plaintiff further states that the alleged misrepresentation is meant to attract health-conscious consumers seeking products free from artificial or chemical additives like preservatives — consumers who are willing to pay premium prices for “clean” products that are perceived to be healthier than others.
April 16, 2024 – Labor & Employment
Twitter ‘Forced Out’ Female, Older Employees After Musk’s Acquisition, Lawsuit Claims
A former Twitter employee alleges in a proposed class filed in San Francisco federal court that new working conditions following Elon Musk’s acquisition of the company in October 2022 were designed to “force out” women and older workers.
After Musk completed his purchase of Twitter Inc. — now known as X Corp. — he quickly slashed about half of the company’s workforce, according to the complaint. Twitter’s first round of mass layoffs, the complaint says, disproportionately impacted female and older employees “to a statistically significant degree.”
Musk began implementing “unreasonable” policy changes that he knew would cause more female and older employees to leave than young, male workers, plaintiff argues in her suit. For example, plaintiff says, soon after the acquisition, Musk required employees to work 12-hour shifts seven days a week, and mandated that employees return to the office despite having been allowed to work remotely prior to the acquisition.
April 16, 2024 – Cybersecurity
23andMe Accused of Failing to Notify Customers About Data Breach
The genetic testing company 23andMe Inc. failed to notify customers of a data breach in which their personal information was compiled into “curated” lists that were sold on the dark web, alleges a proposed class action filed in San Francisco federal court.
The lawsuit states that the breach, which took place over the course of five months beginning in April 2023, affected nearly seven million profiles. The suit notes that customers with Chinese and Ashkenazi Jewish heritage appear to have been specifically targeted, and that their personal genetic information had been compiled into specially curated lists that were shared and sold on the dark web.
According to the complaint, a hacker who called himself “Golem” and used an image of Gollum from the “Lord of the Rings” films as an avatar, leaked the personal data of more than one million 23andMe users with Jewish ancestry and 350,000 profile records of Chinese customers on the website BreachForums, an online forum used by cybercriminals. The data included the users’ full names, home addresses, and birth dates.
April 11, 2024 – Antitrust
Sugar Producers Sued Over Alleged Price-Fixing Scheme
Major sugar producers, including United Sugar and Domino’s, were accused in a proposed class action filed in Manhattan federal court of artificially inflating the price of granulated sugar, forcing buyers to pay more for the sweetener.
Plaintiff in the lawsuit, KPH, a national provider of pharmaceutical and healthcare services, claims that defendants are violating antitrust law by sharing competitively sensitive non-public information about prices, volume, sales, and other metrics for granulated sugar. “There is no economically rational reason for [defendants] to share such information” other than to affect prices and avoid competition, plaintiff says.
The suit says victims of the alleged price-fixing conspiracy include food and beverage manufacturers, retailers, and food service companies. It seeks unspecified triple damages and an injunction against anticompetitive conduct.
April 10, 2024 – Consumer Fraud
J&J Accused of Fraud in Sale of ‘Preservative-Free’ Shampoo
Johnson & Johnson Consumer Inc. faces a proposed class action filed in Brooklyn federal court alleging that the company’s labeling and advertising of ‘preservative-free’ shampoo products is misleading because the products contain the preservative citric acid.
Citric acid is a well-known preservative commonly used in hair products, according to the complaint. Defendant’s “preservative-free” representation is featured on the products’ labeling in order to induce “health-conscious consumers to purchase hair care products that are free from preservatives,” the complaint says.
Plaintiff claims in her lawsuit that J&J markets its products in a “systematically misleading manner” by misrepresenting that they do not contain preservatives and has profited unjustly as a result of this deceptive conduct.
April 9, 2024 – Privacy
Lawsuit Claims Dating Site Unlawfully Retains Personal Information
Dating app Coffee Meets Bagel has been hit with a proposed class action filed in San Francisco federal court, claiming that the app retains subscriber photos in violation of Illinois Biometric Information Privacy Act (BIPA).
In his lawsuit, the plaintiff says that in accordance with the defendant’s account verification process, he submitted a “selfie,” which the defendant then used to create a biometric template of the user’s face. The defendant compares these biometrics to the photographs that users post on their online dating profiles to verify the identity of all Coffee Meets Bagel users.
The defendant then retains the selfies without proper notice or disclosure, in violation of the BIPA, according to the complaint. If the defendant’s database is hacked, the complaint says, users have no means to prevent identity theft or other unlawful or improper use of this “highly personal and private information.”
April 8, 2024 – Intellectual Property
George Carlin’s Estate Sues Creators of AI-Generated Comedy Special
The estate of comedian George Carlin has filed a copyright infringement lawsuit against Dudesy, the media company that used generative artificial intelligence to produce a fake hour-long comedy special that imitates the deceased star’s voice and comedic style.
According to the complaint filed in Los Angeles federal court, Carlin’s copyrighted materials and likeness were used without permission or appropriate licenses. The suit contends that the special is a “piece of computer-generated click-bait which detracts from the value of Carlin’s comedic works and harms his reputation.” The AI-generated special, George Carlin: I’m Glad I’m Dead, was released in January 2024 and has gained almost 500,000 views.
In the suit, Carlin’s estate is seeking the immediate removal and destruction of all copies of the comedy special, along with unspecified damages. The special, the complaint says, “is a bastardization of Carlin’s real work and his legacy.”
April 4, 2024 – Product Liability
HoMedics Massagers Said to Overheat While Charging, Posing Burn Risk
The maker of HoMedics Therapist Select Percussion Personal Massagers faces a proposed class action two weeks after recalling the devices due to concerns that their charging mechanism can overheat, posing a fire and burn risk.
The lawsuit, filed in federal court in Charleston, S.C., states that HoMedics and the U.S. Consumer Product Safety Commission recalled nearly 46,000 Therapist Select personal massagers nationwide in January 2024. The suit urges consumers to “immediately stop” using the product due to the risk that it could overheat while charging. HoMedics has received numerous reports of the “dangerously defective” product overheating, the suit says.
In her suit, plaintiff alleges that defendant defectively and negligently designed the recalled massagers and failed to ensure they functioned properly before releasing them to the public. “Thus, even when using the Massager as intended and instructed, Defendant put all consumers of the Massagers in danger by putting a defective product
into the stream of commerce,” plaintiff claims.
April 3, 2024 – Securities
ADP Accused of Fraud in Issuance of Simple IRAs
Human resources and payroll company Automated Data Processing Inc. and American Century Investments have been hit with a proposed class action alleging fraud in connection with the issuance of Simple IRA plans.
The lawsuit, filed in federal court in Fort Myers, Fla., contends that American Century Investments engaged in training unregistered and unlicensed workers to sell the plans, the funds for which were allegedly invested in the company’s mutual funds, which were sold at the Simple IRAs’ time of sale.
Along with its human resources and payroll services, ADP cross-sells retirement plans including SIMPLE IRAs, the funds for which are invested in American Century Investments’ mutual funds as selected and sold at the time of sale of the SIMPLE IRAs, according to the complaint. American Century Investments, the complaint says, “knew of and encouraged the use of unlicensed and unregistered personnel” to sell the plans and failed to provide their personnel with proper training and supervision.
April 2, 2024 – Consumer Fraud
Reynolds Wrap Aluminum Foil Not ‘Made in USA,’ Lawsuit Alleges
Reynolds Consumer Products LLC misleads consumers by saying the foil is “Made in USA” though much of the raw material and manufacturing comes from elsewhere, according to a proposed class action filed in Manhattan federal court.
Plaintiff claims in her suit that substantially all bauxite that Reynolds uses in its foil comes from outside the United States, adding that a substantial amount of this bauxite is transformed into aluminum outside the U.S.
This makes Reynolds’ “Foil Made in USA” claim on its packaging false and misleading to reasonable consumers because they “value buying products which are made in America” and therefore are willing to pay more, the complaint says. Plaintiff contends that she bought her foil at a Target because she trusted the Reynolds Wrap brand, calling it as familiar as Kleenex and Vaseline, and likes to “buy American.” She says she wouldn’t have done so had she known where her foil came from.
April 1, 2024 – Constitution
Freelancers Challenge Labor Dep’t Independent Contractor Rule
A group of freelance writers and editors has sued the U.S. Department of Labor, claiming that its new rule making it more difficult for companies to treat some workers as independent contractors is illegal and should be struck down.
According to a lawsuit filed in federal court in Gainesville, Ga, the rule is so vague that it violates the U.S. Constitution. In their suit, plaintiffs say the department failed to explain why it was abandoning a simpler rule favored by business groups.
That rule said the key factors in determining worker classification were the degree of control a company exercises over a worker and the worker’s opportunity for profit or loss. The new rule, the complaint says, looks at several additional factors including the permanence of a job, the degree of skill and initiative required, and whether work performed is integral to a company’s business. “Businesses are given no useful guidance on the scope of the [new rule] and cannot structure their conduct to comply with its demands,” plaintiffs argue.
March 28, 2024 – Environment
Environmentalists Seek to Block Proposed Trail Near Former Nuclear Facility
Environmental activists have filed a lawsuit against U.S. Fish & Wildlife and other federal agencies claiming they ignored potential health concerns when approving a public trail near the former Rocky Flats nuclear weapons production facility located outside Denver, Colorado.
The plaintiffs, including Physicians for Social Responsibility, the Rocky Mountain Peace & Justice Center, and other groups, seek to block the construction of an 8-mile trail through “the most heavily plutonium-contaminated portion” of the Rocky Flats National Wildlife Refuge.
In their suit filed in federal court in the District of Columbia, plaintiffs are challenging the agencies’ authorization of the trail, known as the Greenway Project, and their “fatally flawed” environmental and health assessments. According to the complaint, the assessments propelled the project forward despite evidence of plutonium five times higher than the regulatory limit found in the soil less than a year before Fish & Wildlife conducted their own analysis.
March 27, 2024 – Consumer Fraud
Health-Ade Faces Lawsuit That Claims Its Kombucha Contains PFAS
Beverage maker Health-Ade has been hit with a proposed class action alleging that several of its kombucha products contain toxic “forever chemicals,” also known as PFAS.
Plaintiff, in her lawsuit filed in federal court in White Plains, N.Y., claims that Health-Ade misleadingly markets its kombucha as a “health” product even though it tested positive for dangerously high levels of PFAS. According to the complaint, the PFAS were found in the company’s Ginger Pineapple Belly Reset, Mint Limeade, Cayenne Cleanse, Pomegranate Berry, and Strawberry Glow with bamboo extract and biotin products.
The suit contends that the company misleads consumers by not putting warnings on labels that the drinks contain PFAS, which are found in thousands of products and have been tied to many health issues, including cancer, hormonal dysfunction, and ulcerative colitis. Plaintiff says she would not have purchased the products had she known of the dangers they presented.
March 26, 2024 – Labor & Employment
Amazon.com Accused of ‘Retaliating’ Against Employees Who Take Sick Leave
Plaintiffs claim that they were wrongly terminated by Amazon.com during the time they were on approved medical leave, in a proposed class action filed in federal court in Newark, N.J.
Amazon maintains an electronic system that tracks the amount of medical leave an employee is entitled to under various state and federal laws, according to the complaint. When an employee requires use of approved medical leave, the complaint says, the employee would report the necessary time off on the Amazon app or call to report the time off.
Upon notification that an employee required time off for their approved medical leave, the system generates a confirmation email sent to the employee showing the amount of medical leave the employee has used and the employee’s remaining time left, plaintiffs say in their lawsuit. However, plaintiffs allege, Amazon has “repeatedly terminated employees for taking time off while on approved medical leave” despite receiving notification from defendant that they had time remaining for their approved medical leave, such conduct being a “blatant pretext for retaliation against these employees for requesting medical leave.”
March 25, 2024 – Intellectual Property
Chanel Claims Infringement of Its ‘World Famous’ Trademarks
Luxury fashion house Chanel alleges that defendants, which include various individuals and businesses, infringe on the company’s “multiple world-famous common law and federally registered trademarks.”
Defendants use e-commerce store names in tandem with electronic communication via private messaging applications and services to complete their offer and sale of counterfeit Chanel-branded products, according to the complaint filed in Miami federal court.
Specifically, the complaint says, consumers are able to browse listings of Chanel-branded products online via defendants’ e-commerce store names, ultimately directing customers to send inquiries, exchange data, and complete purchases via electronic communication with defendants. Like many other famous trademark owners, the company argues, “Chanel suffers ongoing daily and sustained violations of its trademark rights at the hands of counterfeiters and infringers” that wrongfully reproduce and counterfeit Chanel’s trademarks for the twin purposes of (i) duping and confusing the consuming public and (ii) earning substantial profits.
March 22, 2024 – Antitrust
Justice Dep’t Accuses Apple of Maintaining an iPhone Monopoly
The U.S. Department of Justice has joined 16 states and the District of Columbia in filing an antitrust lawsuit against Apple Inc., accusing the company of violating anti-monopoly laws with practices intended to keep customers reliant on their iPhones and less likely to switch to a competing device.
Apple prevented other companies from offering applications that compete with the company’s products, like its digital wallet, which could diminish the value of the iPhone and hurt consumers and smaller companies that compete with it, according to the complaint filed in federal court in the District of New Jersey.
“Each step in Apple’s course of conduct built and reinforced the moat around its smartphone monopoly,” the complaint alleges, adding that the company’s practices resulted in “higher prices and less innovation.” The Justice Department in its suit asks the court to stop Apple from engaging in current practices, including blocking cloud-streaming apps, undermining messaging across smartphone operating systems, and preventing the creation of digital wallet alternatives. The department also asks for Apple to pay an unspecified financial penalty.
March 21, 2024 – Constitution
Ohio Sued Over Social Media Parental Consent Law
NetChoice, a trade group representing TikTok, Snapchat, Meta and other major tech companies, has filed a lawsuit to block an Ohio law that would require parental consent for kids younger than 16 to join social media platforms.
The lawsuit, filed in federal court for the Southern District of Ohio, seeks to block the measure from going into effect, saying it violates the First Amendment. The suit argues that the law — which requires social media companies to obtain a parent’s permission for children under 16 to sign up for social media and gaming apps — unconstitutionally impedes free speech and is overbroad.
The law would also require social media companies to provide parents with company privacy guidelines so that families can know what content will be censored or moderated on their child’s profile.
March 20, 2024 – Product Liability
Defect in HALO BassiNest Flex Causes Infants to Roll While Sleeping, Lawsuit Alleges
A proposed class action filed in Manhattan federal court claims that the HALO BassiNest Flex is “dangerously defective” in that the infant sleeper can tilt when in use, which can cause a baby in the bassinet to roll from the center of the sleeping surface to the sidewall where their face can end up pressed against the mesh siding.
According to the complaint, defendant HALO promotes the bedside bassinet as a safe sleep space for babies up to five months old. Further, the complaint says, defendant emphasizes its purported commitment to safe sleeping with its trademarked “Back is Best” marketing slogan, indicating that it is safest for infants to sleep on their backs.
Plaintiffs argue in their suit that the defective design of the BassiNest Flex makes it impossible for buyers to follow these infant safe-sleeping precautions, which suggest that all babies sleep flat on their back on a clutter-free, flat and firm surface to prevent sudden infant death syndrome, suffocation, and strangulation.
March 19, 2024 – Antitrust
HP Faces Consumer Lawsuit Over Third-Party Ink Replacement
HP Inc. has been sued in a proposed class action filed in Chicago federal court claiming the company’s printers would not accept replacement ink cartridges made by other manufacturers, forcing consumers to pay artificially high prices for HP-branded cartridges.
HP’s actions violate U.S. and state antitrust laws in a bid to monopolize the market for replacement ink, plaintiffs say in their lawsuit that seeks an injunction barring the company from disabling printers unless they use HP-branded ink, and monetary damages of greater than $5 million.
Plaintiffs claim they were not told that automatic software updates from HP would disable some printers unless HP-branded ink was used. “Faced with non-functional printers, the plaintiffs were forced to purchase HP-branded ink that they would not otherwise have purchased,” the complaint says.
April 18, 2024 – Disability Act
Jewelry Store Website Said Not Accessible for Visually Impaired
Plaintiff, who says he is visually impaired and legally blind, is unable to access defendant’s website, in violation of the Americans with Disabilities Act (ADA), according to a proposed class action filed in Brooklyn federal court.
In his suit, plaintiff says that he requires screen-reading software to read website content on his computer, and defendant has failed to design its website, greatamericanjewelers.com, to be “fully accessible and independently usable” by blind or visually-impaired people. Defendant’s denial of full and equal access to its website constitutes a denial of the goods and services it offers — a violation of plaintiff’s rights under the ADA.
Congress, the complaint says, provides a “clear and national mandate” for the elimination of discrimination against individuals with disabilities. Such discrimination includes barriers to full integration, independent living, and equal opportunity for persons with disabilities, including those barriers created by websites and other public accommodations that are inaccessible to blind and visually impaired persons, the complaint says.
March 15, 2024 – Debt Collection
Financial Services Accused of ‘Unlawful and Abusive’ Debt Collection Practices
In a proposed class action filed in Las Vegas, Nev., plaintiff accuses collection agency Financial Services of America (FSA) of violating the Fair Debt Collection Practices Act in attempts “to unlawfully and abusively” collect a debt said to be owed by plaintiff.
According to the complaint, plaintiff allegedly incurred financial obligations to an original creditor, Travel Winds Vacation Travel Club, and defendant claims plaintiff fell behind in payments allegedly owed on the debt.
FSA sent plaintiff a “harassing letter” attempting to collect the debt, the complaint says, adding that the letter also failed to meet the notice requirements specified in the debt collections act. Plaintiff sent FSA a letter asking for the proper legal documents proving the validity of the debt. Defendant never responded, the complaint claims, but continued to send harassing debt collection notices to plaintiff. Defendant’s collection activities violated the act by utilizing “unfair and unconscionable means” in its attempts to collect the alleged debt from plaintiff, the complaint says.
March 14, 2024 – Intellectual Property
Infringement Action Involving Casino Gaming ‘Pragmatic Play’ Mark
In a trademark and cybersquatting infringement lawsuit, plaintiff accuses operators of Pragmaticplay.app and other websites of misappropriating the casino gaming software “Pragmatic Play” and “PPGames” marks in order to dupe consumers into seeing pay-per-click advertisements or downloading malware, or to distribute unauthorized copies of the plaintiff’s intellectual property.
Recent government reports highlight the prevalence of cybersquatting, associated trademark infringement, and attendant harm to consumers and brands, according to the complaint filed in federal court in Phoenix, Ariz. Cybersquatting actors, the complaint says, have grown more and more sophisticated with misuse of protected marks, beyond simply seeking to gain internet traffic intended for the mark holder. The launch of new top-level domains — e.g., .tools, .website, .live, .xyz, etc., as alternatives to the traditional generic top-level domains .com, .net, and .org) — has provided new opportunities for cybersquatters to misuse and abuse protected marks for their own gain.
Plaintiff says in its suit that today’s cybersquatters engage in bad acts, including leveraging trademark recognition to distribute computer viruses or “malware,” to collect visitors’ personal information for inappropriate or illegal uses, to generate revenue by displaying pay-per-click advertisements related to the legitimate site or, in the case of many of defendant domain names, to display counterfeit versions of brand owners’ goods or services.
March 13, 2024 – Product Liability
Lawsuit Claims CooperSurgical IVF Solution Killed Embryos
A couple has sued fertility technology company CooperSurgical, claiming that a solution made by the company for growing embryos for in vitro fertilization was toxic and killed the embryos plaintiffs hoped to use to have children.
In a lawsuit filed in Superior Court in Los Angeles, plaintiffs say CooperSurgical, one of the largest fertility technology companies worldwide, belatedly recalled several lots of its so-called embryo culture medium late last year, after the embryos were lost. They say the company has not made any public statement about the recall, leaving fertility patients in the dark.
In vitro fertilization uses eggs and sperm to create embryos and then grows them in the culture medium until they are implanted in the uterus. The plaintiffs’ fertility doctors were “shocked,” according to the complaint, when embryos stopped growing soon after being placed in the culture medium. The suit accuses the company of defective design and manufacture, failure to warn and negligence, and seeks unspecified money damages.
March 12, 2024 – Consumer Fraud
AMC’s Online Ticket Convenience Fee ‘Swindles Substantial Sums’ From Consumers, Lawsuit Alleges
A proposed class action claims AMC Entertainment Holdings Inc. has unlawfully failed to include a “convenience fee” in the stated total cost of a movie ticket at the beginning of the online purchase process.
The lawsuit filed in Manhattan federal court alleges the owner of the AMC Theatres chain has violated the New York Arts and Cultural Affairs Law, which requires operators of places of entertainment to disclose the total price of a ticket, including any additional fees, before the ticket is selected for purchase. In addition, the suit says, the state law bars such companies from increasing ticket costs during the checkout process.
“Because New York is a busy place, and because these fees are only flashed after a movie-goer selects their seats, [AMC] can plausibly put its customers on a shot clock and tell them they need to decide quick, because [AMC] cannot hold their seats open forever,” plaintiff alleges in her suit. “This cheap trick has enabled [defendant] to swindle substantial sums of money from its customers.”
March 11, 2024 – Cybersecurity
Fidelity National Financial Accused in Data Breach Affecting ‘Millions of Customers’
Fidelity National Financial, one of the nation’s leading providers of title insurance, has been named in a proposed class action filed in federal court in Jacksonville, Fla., alleging that Fidelity was negligent in a cyberattack that exposed the personally identifying information (PII) of millions of consumers.
In November 2023, according to the complaint, Fidelity “lost control over its computer network and the highly sensitive personal information stored on the computer network in a data breach by cybercriminals.” The breach, the complaint says, exposed the PII of 1.3 million thousand consumers.
Plaintiff claims in his lawsuit that cybercriminals were able to breach Fidelity’s systems because the company failed to adequately train their employees on cybersecurity, failed to adequately monitor their agents, contractors, and suppliers in handling and securing the PII of plaintiff and class members, and failed to maintain reasonable security safeguards or protocols to protect PII — “rendering them easy targets for cybercriminals.”
March 8, 2024 – Securities
SEC Charges Florida Real Estate Developer With $93 Million Fraud Scheme
The Securities & Exchange Commission has obtained an asset freeze and other emergency relief concerning an alleged $93 million real estate investment fraud perpetrated by Miami-based developer Rishi Kapoor.
From approximately January 2018 until at least March 2023, according to the complaint filed in Miami federal court, defendants Kapoor and certain other entities solicited investors by misrepresenting Kapoor’s compensation, the corporate governance of defendant entities, the use of investor funds, and Kapoor’s background.
The SEC says its investigation uncovered that Kapoor allegedly misappropriated at least $4.3 million of investor funds and improperly commingled approximately $60 million of investor capital among other entities named in the complaint. The complaint also alleges that Kapoor caused some entities to pay excessive fees and to represent higher returns to investors by significantly understating cost estimates.
March 7, 2024 – Product Liability
Poland Spring Water Bottles Contain Harmful Microplastics, Lawsuit Alleges
A proposed class action filed in Brooklyn federal court claims Poland Spring bottled water is not “100% Natural Spring Water” as advertised since the bottles contain dangerous levels of synthetic phthalates and microplastics.
According to the complaint, there is no safe level of consumption for phthalates, a synthetic chemical used to increase the flexibility, durability, and longevity of plastics in foods and beverages. Further, the complaint says, every bottle of Poland Spring water is contaminated with microplastics, which are tiny fragments of plastic that studies have found may be toxic to human health and have become a pervasive problem in the bottled water industry.
Plaintiff alleges in her lawsuit that defendant BlueTriton Brands has profited by falsely claiming Poland Spring bottled water is “100% Natural Spring Water,” leading reasonable consumers to believe they are getting “a bottle of nothing but spring water from nature.” As a result, plaintiff argues, consumers are willing to pay more than they would pay for other comparable products that are not falsely labeled.
March 6, 2024 – Antitrust
NFL Teams Said to Conspire to Dominate Online Market for League-Licensed Merchandise
A proposed class action filed in Manhattan federal court alleges that the NFL, its 32 teams, and online retailer Fanatics have unlawfully colluded to prevent competition in the online retail marketplace for league-licensed merchandise.
In his lawsuit, plaintiff alleges that National Football League Properties Inc., the NFL subsidiary responsible for collectively licensing all 32 teams’ intellectual property, exists solely as a mechanism to keep each team from competing against one another in the licensing of their trademarks to manufacturers and retailers, causing consumers “to pay more than they otherwise would have for their purchases.”
According to the complaint, the NFL and its 32 teams, rather than compete individually, use National Football League Properties to set one price for licenses, choose who will be a licensee, and decide minimum guarantees and licensing terms. In a competitive market, the complaint says, each individual team “would make each of these decisions for itself.” Overall, the 32 teams have jointly formed “a cartel” to organize the licensing of their logos, names, trademarks, and other intellectual property, utilizing “collusive marketing agreements [to] disincentivize competition among themselves,” the complaint claims.
March 5, 2024 – Labor & Employment
Sun Country Deprived Pilots of 401(k) Contributions During Military Leave, Lawsuit Claims
Sun Country Airlines Inc. failed to contribute to plaintiffs’ retirement accounts when they were on military leave, as required by federal law, alleges a proposed class action filed in Minneapolis federal court.
The lawsuit states that under federal law and the terms of Sun Country’s 401(k) profit-sharing plan, employees on military leave are entitled to receive pension contributions equivalent to what they would have received had they not been serving in the armed forces. However, according to the complaint, Sun Country has been skirting this obligation since at least 2019.
In their suit, plaintiffs, who are based out of the Minneapolis-Saint Paul International Airport in Minnesota, claim they received zero 401(k) contributions from Sun Country each time they took their respective military leaves. “When an employee is absent for military service, they are unable to log hours that they would have logged had they not been absent,” the complaint says. “Sun Country’s policy or practice is to make no plan contributions based upon these ‘unlogged’ hours to the employee’s account.”
March 4, 2024 – Privacy
Zappos.com Accused of Illegally Tracking Website Visitors Using ‘Spyware’
Online retailer Zappos.com has illegally used “spyware” to surveil website visitors’ browsing habits without their knowledge or consent, alleges a proposed class action filed in Los Angeles Superior Court.
Zappos has deployed “pen register” software on its website to secretly capture users’ IP addresses, according to the complaint. The company’s alleged collection of IP addresses, the complaint says, allows it to determine users’ identities, obtain a significant amount of personal information about them, and compile a detailed picture of their online activities.
The complaint describes a pen register as a program that records outgoing “dialing, routing, addressing or signaling information” from a target phone or computer without revealing the actual contents of the communication. Pen registers, the complaint says, have been traditionally used by law enforcement to acquire lists of phone numbers dialed from a particular telephone for investigative purposes.
February 29, 2024 – Consumer Fraud
DreamBone Petfood Not Made Predominantly with Real Meat, Lawsuit Alleges
A proposed class action alleges that DreamBone Dream Kabobz pet food made by Spectrum Brands is not made predominantly with meat as advertised.
The lawsuit, filed in federal court in Sacramento, Calif., says that although DreamBone Dream Kabobz is labeled as “made with real chicken, pork & duck,” the product’s more prominent ingredients include glycerin and sorbitol, a sugar substitute, and “binding agents.” The pet food, the suit argues, “is a far cry from the quality product made predominantly with real meat and wholesome vegetables.”
Consumers have relied on Spectrum Brands’ deceptive product labeling to their detriment and would not have bought the rawhide-free chews, or would have paid much less for them, had they known real meat and vegetables were not the predominant ingredients, according to the complaint. The claim “made with real chicken, pork & duck” is accompanied on product packaging by images of the meats, leading reasonable consumers to believe they are buying a pet item made primarily from meat, the complaint says.
February 28, 2024 – Labor & Employment
Former Detroit Tigers Scouts Sue Over Alleged Age Discrimination
A pair of former Detroit Tigers scouts, in their late 60s, have sued the team in Detroit federal court, alleging age discrimination over their terminations after the 2020 season.
Plaintiffs claim in their lawsuit that a shift in baseball scouting toward data analytics was accompanied by a “false stereotype” that older scouts lacked acumen for newer scouting tools. In doing so, the team violated federal and state age discrimination laws, plaintiffs contend.
“Plaintiffs are among hundreds if not thousands of employees to be separated from employment with defendant in the last eight years as a result of a decision by the defendant and [Major League Baseball] to replace older employees with younger employees,” according to the complaint. MLB has begun heavily recruiting younger scouts, the complaint says, intentionally pushing out older scouts based on the “false stereotype that older scouts lacked the ability to use analytics and engage in video scouting with the same acumen as younger scouts.”
February 27, 2024 – Constitution
New York State Foreclosure Law Challenged as Unconstitutional
A New York resident alleges that the state unjustly took her property using its foreclosure law that she calls unconstitutional.
in a proposed class action filed in federal court in Buffalo, N.Y., plaintiff says that her home was foreclosed by Saratoga County due to unpaid taxes; and then the county sold her property to the state at auction for $112,100, producing a surplus plaintiff claims was “above and beyond the amount lawfully owed by plaintiff for delinquent taxes and charges.”
New York never returned the excess to her, plaintiff claims, which violates the Fifth Amendment of the U.S. Constitution’s taking clause. “The Constitution’s Taking Clause prohibits the ‘taking of property without just compensation,'” plaintiff says, adding that “The prohibition is not against states enacting laws to collect taxes and other obligations, which is permitted to satisfy the citizen’s taxes. It is against taking more than is owed, as is happening in this case.”
February 26, 2024 – Cybersecurity
Healthcare Software Provider Faces Lawsuit Over Cyberattack
ESO Solutions Inc. has been hit with a proposed class action over a cyberattack announced in December 2023 that allegedly impacted the personal data of approximately 2,700,000 individuals.
The lawsuit, filed in federal court in Austin, Texas, says the data breach experienced by the company — which provides data management software to emergency medical services, fire departments, and hospitals — has potentially compromised individuals’ names, dates of birth, Social Security numbers, and medical treatment information.
The suit alleges that the ransomware attack and resultant disclosure of confidential data stemmed from the company’s negligent cybersecurity protocols. “By implementing and maintaining reasonable safeguards and complying with standard data security practices, [ESO] could have prevented this Data Breach,” the complaint contends. And although the defendant purports to have detected the incident in late September 2023, it waited until mid-December — nearly three months later — to notify impacted individuals.
February 22, 2024 – Negligence
Uber Assault Lawsuit Says Company Endangers Women and Girls
Plaintiff claims in San Francisco federal court that she was sexually assaulted by her Uber driver, and the company could have prevented the assault through various precautions that would have been employed if it valued the safety of women and girls using the service.
According to the complaint, plaintiff was getting a ride home and having a conversation with the Uber driver, when he suggested she move to the front seat to continue talking. And when the vehicle entered plaintiff’s neighborhood, the complaint says, the driver then forced himself on her and raped her in his vehicle.
Plaintiff contends in her suit that although Uber implemented “Safe Ride Fees” in 2014, the company never used that money to actually make its passengers safer, providing only cursory background checks for Uber drivers. In addition, plaintiff says, the company also failed to provide surveillance cameras inside of cars, did not allow passengers to make requests regarding the gender of drivers, and failed to train drivers on issues of sexual assault and harassment.
February 21, 2024 – Intellectual Property
Nike Alleges Defendant ‘Brazenly’ Sells Counterfeit Nike Products
Nike Inc. has filed a trademark infringement lawsuit against Eben Fox, a social media influencer who allegedly promotes and sells counterfeit Nike products.
Defendant Fox “brazenly promotes and sells counterfeit Nike goods on his various social media channels,” according to the complaint filed in federal court in Tampa, Fla. Defendant “apparently believes he can engage in this illegal conduct with impunity,” the complaint says.
Nike says in its suit that defendant provides advice and step-by-step instructions on how to purchase counterfeit goods from overseas, and partners directly with overseas counterfeiters and service providers, such as the shipping agent platform, PandaBuy, to promote their counterfeit goods and related services.
February 20, 2024 – Labor & Employment
California Supermarket Chain Said to Unlawfully Ask Job-Seekers About Their Criminal Histories
The California Civil Rights Department has sued Ralphs supermarket chain in Los Angeles county court, alleging that the chain violated state law by asking job-seekers whether they had criminal records, and illegally rejecting hundreds of applicants.
The department contends in its lawsuit that Ralphs Grocery Co. “has ignored and continues to ignore” the California Fair Chance Act “by screening out otherwise qualified applicants on the basis of criminal histories that do not have any adverse relationship with the duties of the job for which they were applying.”
The law, which took effect in 2018, was designed to reduce the chance of ex-convicts reoffending by giving them opportunities to earn a living, according to the complaint. In general, the complaint says, employers with five or more workers can’t ask applicants about their criminal histories before making job offers, and must follow specific procedures for rejecting them. Further, the law says employers can’t rescind a job offer if the applicant’s conviction wouldn’t directly affect job responsibilities.
February 15, 2024 – Consumer Fraud
Coca Cola Alleged to Falsely Advertise Minute Maid as ‘Healthy’
Coca-Cola faces a proposed class action in Brooklyn federal court over the company’s marketing and sale of Minute Maid juice products.
The lawsuit accuses Coca-Cola of misleading customers with representations that Minute Maid juice is “Good for You” and “Part of a Healthy, Balanced Diet.”
These statements, according to the complaint, are false because consuming fruit juice has been shown to increase the risk of heart disease, type 2 diabetes and other chronic illnesses.
February 14, 2024 – Environment
Wildlife Groups Sue BNSF Railway Over Grizzly Bear Killings
Two wildlife conservation groups have filed a lawsuit against BNSF Railway over delays in finalizing a plan to reduce the number of federally protected grizzly bears that are killed by trains in northwestern Montana and northern Idaho.
WildEarth Guardians and the Western Environmental Law Center filed the lawsuit in federal court in Missoula, Mont., arguing that BNSF and other railroads that use their tracks, including Amtrak, have been killing grizzly bears without an incidental take permit for decades.
According to the complaint, such permits, required under the U.S. Endangered Species Act, allow a certain number of protected animals to be killed in exchange for efforts by a company to try to reduce the deaths. The railroad’s first efforts to obtain an incidental take permit began in 2004, the complaint says, and have still not been completed nearly 20 years later.
February 13, 2024 – Constitution
Wisconsin Lawyers’ Bar Sued Over Diversity Clerkship Program
A conservative legal advocacy group has sued the State Bar of Wisconsin, claiming its diversity fellowship program for law students violates the free speech rights of bar members whose dues are used to fund it.
The lawsuit was filed in Milwaukee federal court by the Wisconsin Institute for Law & Liberty on behalf of plaintiff, a Wisconsin attorney. Plaintiff contends that he should not have to pay for the state bar’s fellowship program because it is unconstitutional and not germane to the core functions of the bar.
Mandatory dues for what the plaintiff claims is an illegal program violates his First Amendment rights under the U.S. Constitution, according to the complaint. The State Bar has modified the program criteria with race-neutral language that invites applicants “with backgrounds that have been historically excluded from the legal field,” the complaint says, adding that the change did not make the program legal. The program “was founded with an intent to discriminate based on race,” plaintiff argues, “and that intent continues to shape and govern the program today, as is evident from the program enrollment.”
February 12, 2024 – Consumer Fraud
Ozempic ‘Serious Side Effects’ Concealed By Novo Nordisk, Lawsuit Claims
Novo Nordisk has engaged in a “massive campaign” to conceal information about the risk of gastroparesis (paralysis of the stomach) from Ozempic, by providing false and misleading information to consumers about side effects linked to the drug, alleges a lawsuit filed in Philadelphia federal court.
Ozempic was initially approved for the treatment of people with Type 2 diabetes, according to the complaint. However, amid “aggressive advertisements that promoted the weight loss benefits,” Ozempic has been increasingly prescribed as a diet drug, the complaint says, noting that the drug has become a “blockbuster treatment” now used by millions. In her suit, plaintiff claims that she developed severe nausea and vomiting, as well as difficulty swallowing and rectal bleeding while using Ozempic on a weekly basis.
Although advertisements promote the drug as safe and effective, with few long-term side effects, there have been rising concerns over long-term gastrointestinal issues linked to the medication, plaintiff contends. “Throughout the marketing, Defendants fail to disclose the true serious side effects of Ozempic. Defendants also fail to disclose on their label and patient brochure … that in order to maintain any weight loss, the patient must stay on the drug permanently or most patients will regain most of the weight within one year and virtually all weight will be regained within five years.”
February 8, 2024 – Privacy
Lawsuit Alleges ‘Relentless’ Telemarketing Calls from Timeshare Exchange Company
A proposed class action has been filed against timesharing company RCI LLC in which plaintiff claims to have received numerous unsolicited telemarketing calls from the company despite her phone number being listed on the National Do Not Call Registry.
The lawsuit, filed in federal court in Rome, Ga., alleges that RCI violated the federal Telephone Consumer Protection Act (TCPA) when it made repeated calls to plaintiff in spite of the fact that her cellphone has been on the National Do Not Call Registry since February 2007. Plaintiff says in her suit that during some of the unsolicited calls, she informed the representative that she was on the National Do Not Call list and asked them not to contact her again. However, plaintiff says, the unwanted calls continued despite her repeated requests.
The TCPA prohibits companies from making telemarketing calls to individuals whose phone numbers are listed on the National Do Not Call Registry, according to the complaint. The law also requires businesses to keep a written policy for maintaining an internal do-not-call list and bars companies from contacting consumers who request to be on it, the complaint says. Plaintiff contends that RCI’s “relentless marketing practices” prove the company had no internal do-not-call policies when it repeatedly contacted her.
February 7, 2024 – Securities
SEC Charges Titanium Capital With Ponzi Scheme
The U.S. Securities & Exchange Commission has charged Florida-based Titanium Capital LLC and its founder, Henry Abdo, with operating a Ponzi scheme that raised at least $5.3 million from more than 160 retail investors in the U.S. and abroad.
According to the complaint, since 2014 Abdo and Titanium falsely claimed that Titanium placed investor funds in a “Multi Currency Investment Fund” backed by a proprietary currency exchange and that the investment had never had a monthly loss and generated large returns for investors, including up to 102 percent compounded interest for a five-year investment.
In recruiting investors, defendants allegedly claimed that Titanium was registered with the SEC. However, the complaint says, neither Titanium nor the offer or sale of its securities was so registered, and there was no evidence that a proprietary currency exchange even existed. The SEC says in its lawsuit that defendants used virtually all investor funds to make Ponzi-style payments to earlier investors and divert funds for Aldo’s personal use.
February 6, 2024 – Product Liability
Instant Pot Lawsuit Filed Against Walmart After Pressure Cooker Explosion
Plaintiff alleges in her suit that she suffered “painful and disfiguring burns” when an Instant Pot exploded, after safety features failed and allowed the lid to be removed while the contents were still pressurized and cooking.
In her action filed in federal court in the Western District of Arkansas, plaintiff says that Walmark placed profits ahead of consumer safety by continuing to sell Instant Pot pressure cookers to consumers, despite knowing about dangerous design defects that may cause serious injuries.
According to the complaint, plaintiff purchased an Instant Pot DUO 8-Quart Electric Pressure Cooker from a Las Vegas Walmart. The product, the complaint says, lacked safety features that should have prevented the lid from being removed until all internal pressure was released from the pot. And as a result of these defects, the pressure cooker lid exploded off the device, causing plaintiff to be sprayed with “scalding hot contents that were forcefully ejected from the Instant Pot.”
February 5, 2024 – Debt Collection
Lawsuit Accuses Debt Collector of Unlawful Practices
A proposed class action filed in federal court in White Plains, N.Y., claims debt collector the CBE Group Inc. “unconscionably” charges fees and interest on underlying debt without providing the pertinent information in collection communications.
The alleged debt in question, according to the complaint., is a Verizon Wireless bill that the company asked CBE to collect from plaintiff. CBE then sent plaintiff a letter informing him that the balance due was $141.88. But the letter, the complaint says, did not contain any statements regarding additional fees or interest that were accumulating on the balance.
Plaintiff argues in his lawsuit that “Continuing to add fees and interest to a balance without disclosing that information in a collection communication is a misrepresentation of the character, amount, and legal status of the debt,” Defendant violated the Fair Debt Collection Practices Act, plaintiff alleges, when it made misrepresentations regarding the amount and legal status of the Verizon debt by failing to disclose that the balance may increase because of fees and interest.
February 1, 2024 – Consumer Fraud
Target’s Apple Bars Falsely Labeled as “Naturally Flavored,” Lawsuit Alleges
Target’s Market Pantry brand apple cinnamon breakfast bars are misleadingly labeled as “naturally flavored” when in fact the source of the apple taste in the bars is actually malic acid, claims a proposed class action filed in federal court in Orlando, Fla.
According to the complaint, “Consumer desire for naturally flavored products is an emerging trend.” And to capture this trend, the complaint says, Target Corporation sells cereal bars under the Market Pantry brand that purport to be filled with apples, cinnamon and natural flavoring,
Plaintiff contends in her suit that this labeling is false and misleading because despite the statements of “Naturally Flavored Apple Cinnamon [Soft Baked Breakfast Bars]” and “Made With Real Fruit Filling” plus a green stripe at the bottom of the package and pictures of three fresh green apple slices and two cinnamon sticks, the product contains artificial flavoring ingredients to simulate its apple taste.
January 31, 2024 – Securities
GM Said to Mislead Investors and Public on Safety of Airbags
General Motors Co. and two of its top executives downplayed concerns about airbags in its vehicles and misled the public about the safety of its autonomous vehicle (AV) technology, alleges a shareholder class action filed in Detroit federal court.
GM allegedly misrepresented the safety issues for nearly two years, even in the wake of multiple recalls due to defective airbag components, according to the complaint. The company’s Cruise LLC unit, which focuses on driverless technology, has secured testing and driving permits on the false assumption that its AV technology, including its airbag components, were sufficiently safe for wider commercialization, the complaint says.
Plaintiffs states in his lawsuit that GM’s products have been the subject of multiple recalls because of defective airbag components in its vehicles, exposing the company to various global lawsuits. Nevertheless, plaintiff claims, GM has consistently “downplayed safety concerns related to its vehicles’ airbags,” while touting the company’s efforts to identify and address perceived defects with the airbag inflators, the result being that Cruise’s AVs technology was less safe and well developed than GM had led investors, regulators and the general public to believe.
January 30, 2024 – Privacy
Rumble Accused of Unlawfully Sharing Users’ Personal Information
Rumble, a video-sharing website, faces a proposed class action filed in Miami federal court, accusing the company of violating the Video Privacy Protection Act (VPPA).
The VPPA was enacted, according to the complaint, “to preserve personal privacy with respect to the rental, purchase, or delivery of video tapes or similar audio-visual materials.” Rumble embedded within its website a “Meta Pixel” that was provided by Facebook, the complaint says. This pixel tracked plaintiff’s and the class members’ video viewing history while on the Rumble website and reported the viewing history to Facebook.
Rumble shared this video viewing history without providing notification required by VPPA, plaintiff claims in his lawsuit, and in doing so caused plaintiff and class members “concrete harm and injuries, including violations of their substantive legal privacy rights under the VPPA and invasion of their privacy.”
January 29, 2024 – Product Liability
Nissan Vehicles Have ‘Seriously Defective’ Paint Job, Lawsuit Alleges
In a proposed class action filed in Nashville federal court, plaintiff alleges Nissan vehicles have a “serious defect” in the vehicles’ paint that causes discoloration and peeling.
This defect, according to the complaint, has resulted in “unsightly discoloration,” and as a result has caused a substantial decline in the resale value of the vehicles. Plaintiff alleges in her lawsuit that despite knowledge of this defect and previous litigation regarding the issue, Nissan has “failed to disclose the existence of the defect to purchasers of its vehicles and has also refused to provide repairs that it otherwise promises under its new vehicle warranty.”
Plaintiff says that purchasers of an automobile have a “reasonable expectation” that the paint on their vehicles will generally last throughout the vehicle’s lifetime. However, plaintiff contends, defendant has manufactured and sold vehicles with defective paint, resulting in the paint fading and peeling, which creates an unacceptable appearance. “Not only does the vehicle become unsightly, the defective paint/paint application also exposes the body of the vehicle and increases its susceptibility to corrosion and rust.”
January 25, 2024 – Constitution
Woman in Kentucky Sues for Right to Get an Abortion
A pregnant woman in Kentucky has filed a lawsuit demanding the right to an abortion, saying that the state’s near-total prohibition of abortion violates her rights to privacy and self-determination under the state constitution.
The plaintiff, identified in the suit as Jane Doe, at the time of the filing was about eight weeks pregnant. She wants to have an abortion in Kentucky but cannot legally do so because of the state’s ban, she says. The suit was filed in state court (Jefferson Circuit Court), and plaintiff is seeking class-action status to include other Kentuckians who are or will become pregnant and want to have an abortion.
“Kentucky women are suffering “medical, constitutional and irreparable harm” by being denied the right to obtain an abortion, according to the complaint. “Abortion is a critical component of reproductive healthcare and crucial to the ability of Kentuckians to control their lives,” the complaint says, adding that “Whether to take on the health risks and responsibilities of pregnancy and parenting is a personal and consequential decision that must be left to the individual to determine for herself without governmental interference.”
January 24, 2024 – Antitrust
NCAA Faces Lawsuit Challenging College Athlete Transfer Rule
A lawsuit filed by a group of states alleges that the National Collegiate Athletic Association’s “one-year delay” transfer rule for college athletes violates antitrust law.
The lawsuit, filed in federal court in Clarksburg, W.Va., challenges the NCAA’s authority to impose a one-year delay in the eligibility of certain athletes who transfer between schools. The rule “unjustifiably restrains the ability of these college athletes to engage in the market for their labor as NCAA Division I college athletes,” the suit claims.
According to the complaint, NCAA rules allow underclassmen to transfer once without having to sit out a year. But an additional transfer as an undergraduate generally requires the NCAA to grant a waiver allowing the athlete to compete immediately. Without it, the athlete would have to sit out for a year at the new school.
January 23, 2024 – Consumer Fraud
Balance of Nature Exaggerates Health Benefits of Dietary Supplements, Lawsuit Alleges
A proposed class action filed in Brooklyn federal court accuses Balance of Nature of being “purposely deceptive” regarding the efficacy and health benefits of its Fruits, Veggies and Fiber & Spice dietary supplements.
The lawsuit says that Balance of Nature makes “unsubstantiated, false, and/or misleading claims” with respect to the products’ health benefits, including representations that the supplements can mitigate, treat or cure symptoms of severe conditions like diabetes, arthritis, influenza, fibromyalgia, heart disease and cancer.
For example, according to the complaint, defendant states on the Fiber & Spice label that the supplement is proven safe and effective for diabetics” and can lead to improved insulin function. The product, the complaint says, is also advertised as containing certain chemicals that possess anti-inflammatory properties that can purportedly treat symptoms of arthritis.
January 22, 2024 – Civil Rights
Female Athletes Accuse Univ, of Oregon of Sex Discrimination
Thirty-two female student-athletes have accused the University of Oregon of Title IX violations in women’s beach volleyball and club rowing.
Title IX of the Civil Rights Act requires equal athletic opportunities for male and female athletes. The Oregon athletic department failed to provide “equal treatment, equal athletic financial aid, and equal opportunities to participate in varsity athletics,” including inadequate scholarship money and practice facilities, according to the proposed class action filed in federal court in Eugene, Ore.
In their lawsuit, plaintiffs seek to hold Oregon accountable for discriminating against all of its female student-athletes and potential student-athletes, and make Oregon pay damages to the women it has deprived of equal opportunity.
January 18, 2024 – Intellectual Property
Lawsuit Challenges Major League Baseball Use of Bar Code Patent
Plaintiff who holds a patent on dynamic barcodes wants Major League Baseball (MLB) to pay for allegedly scalping his invention,
The MLB app in question, according to the complaint filed in Manhattan federal court, uses constantly changing codes to prevent digital ticket fraud. Prior to plaintiff’s invention, the complaint says, the most widely used technology was static barcoded tickets to provide access to a physical location or service. Frequently, these static barcoded tickets were screen shot and used fraudulently.
Plaintiff claims in his suit that his invention “solved this major problem and makes the digital ticket secure.” To eliminate the multiple use of the same ticket, plaintiff says, event organizers introduced his dynamic digital changing barcode technology so that, via a remote or connected scanner, in real-time no one can get in but the actual digital ticket holder.
January 17, 2024 – Cybersecurity
Dollar Tree Sued Over Alleged Negligence in Regard to Data Breach
Dollar Tree Corp. (which includes Dollar Tree and Family Dollar locations) and Zeroed-In, a data-management software company, have been sued over an August 2023 data breach that allegedly allowed an unauthorized third party to access private information of thousands of Dollar Tree and Family Dollar employees.
In a proposed class action filed in Baltimore federal court, plaintiffs claim that defendants failed to abide by industry best practices, and defendants should have known that their failure to take reasonable security measures would jeopardize plaintiffs’ private information. Further, plaintiffs say, defendants failed to notify plaintiffs and class members about the breach until four months after it occurred, and that this failure to provide timely notification put their private Information and interests at “serious, immediate, and ongoing risk.”
Additionally, according to the complaint, the breach caused costs and expenses associated with time spent and the loss of productivity from plaintiffs, as they were forced to take measures to address and attempt to deal with the “actual and future consequences” of the breach, including reviewing records for fraudulent charges, cancelling and reissuing payment cards, purchasing credit monitoring and identity theft protection services, imposition of withdrawal and purchase limits on compromised accounts, and initiating and monitoring credit freezes.
January 16, 2024 – Securities
Estee Lauder Accused of Supply Chain Misrepresentations
The Estee Lauder Companies Inc. misled investors about the company’s supply chain issues and mismanagement of inventory levels, alleges a shareholder class action filed in Manhattan federal court.
Estee Lauder allegedly hid the impact of these problems for nearly a year, providing “overwhelmingly positive” revenue and sales projections in disclosures that caused shareholders to purchase Estee Lauder stock at artificially inflated prices, according to the complaint. The lawsuit was filed on behalf of all investors who purchased Estee’s common stock between August 18, 2022, and May 2, 2023.
During this period, the complaint says, Estee provided investors with positive statements as to the company’s progress in improving cost structure, pricing power and cash generation. Defendant provided these statements to investors while, at the same time, disseminating “materially false and misleading statements and/or concealing material adverse facts concerning supply chain issues and mismanagement of inventory levels in the Asia and the United States.”
January 11, 2024 – Product Liability
Activision, Epic, Video Game Developers Charged in Addiction Lawsuit
Activision Blizzard Inc., Epic Games Inc., and a dozen other video game developers have been hit with a lawsuit alleging that a 9-year-old became addicted to the companies’ video games, including Fortnite, Call of Duty, Grand Theft Auto, and others.
According to the complaint filed in Chicago federal court, video game addiction is an “epidemic harming our nation’s youth” with feedback loops and reward systems that ensure maximal playing time by young users. Much of the addictive and compulsive behavior, the complaint says, is driven by a scheme used by many games where users can spend real money on in-game perks.
“The schemes use psychological mechanisms, behavioral psychology, and neuroscience to encourage repeated play and increased spending among users, especially among vulnerable populations like minors,” plaintiff alleges in her suit. The 9-year-old “experienced severe emotional distress, diminished social interactions, loss of friends, poor hygiene, and withdrawal symptoms such as rage, anger, and physical outbursts,” plaintiff says, adding that the 9-year-old spends six to eight hours a day playing video games across multiple platforms including the Xbox, PS4, iPhone, and Android devices.
January 10, 2024 – Labor & Employment
Lawsuit Says Female Amazon Employees Paid Less Due to Job Codes
Amazon.com Inc. systematically pays female employees less than male workers in comparable positions, according to a proposed class action filed in Seattle federal court.
The lawsuit was filed by three female employees who allege that Amazon violates federal and state laws by maintaining compensation policies that result in a gender pay disparity. Plaintiffs also claim that the company retaliated by demoting them shortly after they raised concerns about the alleged discrimination.
Plaintiffs say in their suit that Amazon assigns each employee a job code upon hire, with lowest-level workers receiving Level 4 status and top employees a Level 12 status. The job code system creates substantial pay discrepancies between male and female employees, plaintiffs claim, as Amazon regularly assigns women lower job codes than men for equivalent positions and fails to promote female employees to higher codes, resulting in women performing similar work as men in higher job codes, but for less pay.
January 9, 2024 – Antitrust
Apple Accused of Anticompetitive Agreements With Major Mobile Payment Apps to Inflate Transaction Fees
A proposed class action filed in federal court in San Jose, Calif., alleges that Apple Inc., which operates Apple Cash, has entered into anticompetitive agreements with Venmo, Cash App and Google Pay to prohibit the incorporation of decentralized cryptocurrency technology within iOS peer-to-peer payment apps.
The lawsuit claims that the agreements between Apple Cash and its competitors — including Venmo (owned by PayPal), Cash App (owned by Block) and Google Pay — have forced app users to pay inflated transaction fees and prevented the rollout of new crypto features in peer-to-peer payment apps.
Because the primary revenue source for these apps comes from transaction fees, the emergence of cryptocurrency — a form of digital payment that can be traded without a third-party intermediary — has presented a threat to this business model, according to the complaint. “Decentralized payments would allow iPhone users to send payments to each other without any intermediary at all — and with transaction costs far lower than what Venmo, Cash App, and Apple ultimately charge to move money to and from bank accounts and credit cards,” the complaint says. “Despite the obvious utility, there is no means to make decentralized payments on the iPhone.”
January 8, 2024 – Intellectual Property
New York Times Charges OpenAI and Microsoft With Copyright Infringement
The New York Times Co. alleges that the artificial intelligence technology of OpenAI and Microsoft illegally copied millions of Times articles to train ChatGPT and other services to provide people with instant access to information — information that now competes with the Times.
In a lawsuit filed in Manhattan federal court, the Times says that it has a duty to inform its subscribers that defendants’ “unlawful use of The Times’s work to create artificial intelligence products that compete with it threatens The Times’s ability to provide that service.” The Times contends in its suit that the defendant’s claim of “fair use,” which gives them the ability to use copyrighted material for a “transformative purpose,” was not a valid argument.
“There is nothing ‘transformative’ about using The Times’s content without payment to create products that substitute for The Times and steal audiences away from it,” according to the complaint. “Because the outputs of Defendants’ [AI] models compete with and closely mimic the inputs used to train them, copying Times works for that purpose is not fair use.”