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.”
December 19, 2023 – Environment
California Sues Fossil Fuel Companies Over Climate Change
The state of California accuses major gas and oil companies, including Exxon Mobil and Chevron, of contributing to the “devastating” effects of climate change.
In state court in San Francisco, California claims that decades of deliberate disinformation on the part of defendants have exacerbated climate change and caused major environmental, public health, and economic damage. The companies caused harm, the complaint says, by promoting their products and downplaying the negative effects of greenhouse gases on the environment.
The state alleges in its lawsuit that gas and oil companies had full knowledge of what greenhouse gases generated by their products would do to the environment and intentionally suppressed that information, to the detriment of the environment and the people. “Defendants’ campaign to obscure the science of climate change to protect and expand the use of fossil fuels greatly increased and continues to increase the injuries suffered by California and its residents,” the state contends. Had concerted action to reduce emissions begun earlier, “the subsequent impacts of climate change could have been avoided or mitigated.”
December 18, 2023 – Privacy
Meta Accused of Unlawfully Collecting Nevada Motor Vehicle Data
Browsing data that Nevada residents make on the Nevada Department of Motor Vehicles (DMV) website can be instantly transmitted to Meta Platforms Inc., the parent company of Facebook, violating the federal Driver’s Privacy Protection Act, a class action claims in federal court in Las Vegas, Nev.
According to the complaint, Meta surreptitiously tracks Nevadan drivers’ new car registrations, identification card renewals, driver’s license examination appointments, and other activity on the Nevada DMV website. Meta uses this information, the complaint says, to help it deliver targeted advertisements across its social networks, including facebook.com.
Plaintiff in his suit contends that because Meta never asked Nevadan drivers for their express written consent to obtain this highly sensitive information for advertising, it violated federal privacy law. When users visit facebook.com, plaintiff says, Meta surreptitiously installs a tracking code, called the Meta Tracking Pixel, onto their web browsers. This tracking code typically stays on Facebook users’ browsers for 90 days and allows Meta to collect information about what those users do when they are off the site.
December 14, 2023 – Constitution
Twitter Sues California Over Alleged Free Speech Violations
X Corp., formally known as Twitter, has sued the state of California, claiming a state law enacted last year violates its First Amendment rights.
Assembly Bill 587, passed in September 2022, requires large social media companies to submit semi-annual reports to the attorney general that include how the companies define and moderate hate speech, racism, or extremism, among other requirements, according to the complaint filed in federal court in Sacramento, Calif. Social media companies must also include, the complaint says, information about the actions they take to moderate those categories.
X Corp., headed by Elon Musk, says in its lawsuit that this violates the First Amendment and the California state constitution because it forces social media companies to engage in speech against their wishes. Also, the suit says, it interferes with constitutionally protected editorial judgments of social media companies, pressing them to take action against speech the state opposes. X Corp. argues that the true purpose of the bill is to “eliminate” certain constitutionally protected content the government decides is problematic.
December 13, 2023 – Civil Rights
Female Professors Sue Vassar College Over Alleged Gender Pay Gap
A proposed class action filed in Manhattan federal court alleges Vassar College deliberately underpays, underpromotes, and unfairly evaluates female professors.
The lawsuit was filed by five female professors at Vassar who claim the institution has for decades maintained a widening gender pay gap, systematically delayed their promotions, and consistently awarded them lower merit ranks than male professors during performance reviews.
The plaintiffs, according to the complaint, are leaders in their fields who are highly regarded by their contemporaries and by the student population. “For far too long,” the complaint states, “Vassar has failed to fairly and equitably value their contributions to the College.” A private liberal arts college founded in 1861 “to provide women an education equal to that once available only to men,” Vassar still proudly identifies as a “pioneer for women’s education” that strives for equity and inclusion, the complaint says.
December 12, 2023 – Breach of Contract
Apple iCloud Accused of Shortchanging Subscribers on Cloud Storage Capacity
Apple Inc. faces a proposed class action that claims the company “shortchanges” iCloud+ subscribers by providing five gigabytes (GB) less than the promised cloud storage capacity.
The lawsuit filed in San Francisco federal court says that despite Apple’s representations that an iCloud+ paid subscription plan would provide added storage up to a certain limit in addition to the five GB of storage capacity automatically allotted to each Apple device owner for free, the defendant delivers only the paid storage limit it promises minus the five GB a subscriber already receives free of charge.
Apple’s iCloud legal agreement and price list for paid subscription plans, the complaint says, represent that beyond the five GB of free storage offered to all device owners, users who pay for an iCloud+ plan will also receive additional storage capacity in exchange for monthly subscription payments — that is, $0.99 per month for 50 GB, $2.99 per month for 200 GB, and $9.99 per month for two terabytes of paid cloud storage. However, the complaint says, Apple violates its own contractual promises by failing to provide subscribers with the full iCloud storage limit as advertised.
December 11, 2023 – Product Liability
Sensio Pressure Cookers Said to Cause Serious Burns
A proposed class action filed in Manhattan federal court against Sensio Inc. follows nearly a month after the company recalled roughly 860,000 pressure cookers equipped with “dangerously defective” lid-locking assemblies.
According to the complaint, the faulty lid-locking mechanism on the Sensio pressure cookers at issue allows the product’s lid to open while its contents are still under pressure, causing the “super-heated” food to erupt from the cooker and potentially scald the user with second- and third-degree burns. “Given that Plaintiff and Class Members are unable to safely use the Recalled Pressure Cookers without risk of severe burns or injury,” the complaint says, the products are not fit for their particular purpose of safe cooking.”
Plaintiff says in her lawsuit that she purchased her Sensio Bella series eight-quart pressure cooker in late 2016 in the belief that the device was reliable, not to mention the defendant’s “strong reputation” for producing quality products. However, plaintiff claims that she has never been informed “by anyone affiliated with Sensio” of the recall or any defects related to her pressure cooker. She found out about the defects, plaintiff says, on social media.
December 7, 2023 – Consumer Fraud
NUK ‘Orthodontic’ Pacifiers Do Not Support Children’s Dental Development as Claimed, Lawsuit Alleges
The makers of NUK pacifiers have misled consumers by falsely representing that their “orthodontic” pacifiers promote healthy oral and orofacial development in children, according to a proposed class action filed in federal court in Albany, N.Y.
The lawsuit alleges that Newell Brands Inc. and Graco Children’s Products Inc. — which together sell NUK-brand pacifiers — have violated New York law by deceptively using the term “orthodontic” in advertising and on product packaging to convey that the items improve dental health by correcting improperly positioned teeth and jaws.
However, contrary to the products’ representations, NUK “orthodontic” pacifiers “cannot and do not” improve or support healthy oral and orofacial development and, in fact, put children at a greater risk of developing deviations from ideal teeth alignment, the complaint says, adding that marketing a pacifier as “orthodontic” is misleading because “no pacifier is capable of promoting oral development,” and prolonged pacifier use can cause substantial harm by impeding a child’s dental and orofacial structural growth.
December 6, 2023 – Environment
Environmental Groups Sue Over Proposed Oil Drilling in Gulf of Mexico
Environmental groups have filed a lawsuit against the U.S. Interior Department seeking to block a planned oil and gas lease sale that would make over 67 million acres in the Gulf of Mexico available to fossil fuel companies.
The suit, filed in D.C. federal court by Earthjustice on behalf of the Center for Biological Diversity, Natural Resources Defense Council, Friends of the Earth, and others, accuses the department of failing to take a “hard look” at the potential impacts of the sale, such as higher emissions, potential oil spills and higher risks to endangered species in the Gulf.
The complaint says that according to the agency’s own environmental reports, the sale would lead to an increase in greenhouse gas emissions equal to 360 million metric tons. The environment groups note in their suit that the decision comes off a summer of record-breaking heat across the country, where cities have faced grueling heatwaves — Phoenix endured 30 consecutive days over 110 degrees — and ocean temperatures off the coast of Florida exceeded 100 degrees, endangering marine life and causing widespread coral bleaching.
December 5, 2023 – Intellectual Property
Motorola Accused of Patent Infringement re Body-Cam Technology
Motorola Solutions Inc. has been sued on allegations its WatchGuard Video Inc. unit unlawfully infringed on patented technology that automatically triggers police dashboard and body cameras and prevents them from overwriting critical video footage.
Plaintiff Stellar LLC accused WatchGuard’s Vista WiFi Body cameras and in-car video systems of infringing designs that utilize circular buffers and write-protection features to let wearable and vehicle-mounted mobile cameras wirelessly upload video for storage automatically while continuing to record, according to the complaint filed in federal court in Sherman, Texas.
Stellar contends in its lawsuit that its hands-free system solves a problem with earlier body cameras that did not allow additional data to be recorded until the previously recorded data was transferred to an external medium or additional memory was added to the device. Plaintiff’s patents, the complaint says, describe methods for write-protecting previously recorded segments in a memory that can be subsequently transferred to an external storage media without interrupting any contemporaneous recording when the device reaches capacity.
December 4, 2023 – Cybersecurity
Progressive Faces Lawsuit Over ‘Lax Data Security Practices’
A proposed class action filed in Cleveland federal court claims lax data security practices on the part of Progressive Casualty Insurance Co. resulted in a years-long data breach that compromised the personal information of roughly 347,100 individuals.
On May 19, 2023, according to the complaint, Progressive was notified that certain call center representatives employed by a third-party service provider had improperly shared their Progressive access credentials with unauthorized individuals. The unauthorized actors, the complaint says, were then able to access the defendant’s network and view the private data of certain customers.
In his suit, the plaintiff argues that the cyberattack was a direct result of the insurance company’s failure to take the necessary precautions to safeguard the personal information stored in its network. The defendant should have ensured that any third-party vendors it hired had adequate cybersecurity procedures in place to prevent the unauthorized disclosure of sensitive data, plaintiff contends, saying that due to Progressive’s negligence “unauthorized individuals obtained everything they needed to commit identity theft and fraud and wreak havoc on the financial and personal lives of hundreds of thousands of individuals.”
November 30, 2023 – Constitution
Tennessee’s US House and State Senate Maps Said to Discriminate Against Communities of Color
A lawsuit filed in Nashville federal court says the U.S. House maps and those for the state Senate amount to unconstitutional racial gerrymandering under the 14th and 15th amendments.
Plaintiffs in the suit include the Tennessee State Conference of the NAACP, the African American Clergy Collective of Tennessee, the Equity Alliance, and the League of Women Voters of Tennessee.
According to the complaint, the 112th Tennessee Legislature’s redistricting plans for the state’s Congressional and State Senate districts make unlawful use of race and subordinate traditional redistricting principles to race, thus violating the Fourteenth and Fifteenth Amendment rights of Black voters and other voters of color. In particular, the complaint says, the newly drawn districts in Davidson and Shelby counties dilute the votes of Black voters and other voters of color by “cracking” and “packing” these communities to minimize their electoral voices.
November 29, 2023 – Product Liability
Medtronic Sued in Alleged Wrongful Death from Insulin Pump Overdose
The brother-in-law of a man who died of a massive insulin overdose has filed a lawsuit against Medtronic over the failure of a MiniMed insulin pump, alleging the pump malfunctioned and delivered a week’s worth of insulin all at once into the diabetic man, causing his wrongful death.
The Medtronic MiniMed insulin pumps are small, computerized devices that deliver insulin to diabetic patients throughout the day via a catheter implanted under the skin, according to the complaint filed in federal court in Jefferson City, Mo. The insulin pumps, the complaint says, are wirelessly connected to both a monitoring system to track glucose levels, as well as a remote controller designed to communicate with the pump and deliver a specific amount of insulin.
Due to a series of design problems, plaintiff says in his suit, Medtronic’s MiniMed 600 series models and the MiniMed 780G models have been subject to numerous recalls, most recently in October 2021. The pump problems involve devices with retainer ring defects, which fail to lock the insulin cartridge in place, plaintiff says.
November 28, 2023 – Labor & Employment
SpaceX Accused of Labor Law Violations in California
A proposed class action filed by a former SpaceX employee names the company in a number of labor law violations, including failing to pay hourly workers proper minimum, straight time, and overtime wages.
The lawsuit, filed in Los Angeles Superior Court, alleges that despite requirements under state law, Space Exploration Technologies, Corp. — which does business as SpaceX — has also failed to give hourly employees meal and rest periods, timely pay for final wages after employment is terminated, and reimbursement for expenditures paid out of pocket.
According to the suit, the spacecraft manufacturer, which was co-founded by Elon Musk in 2002, has regularly required hourly employees to work off-the-clock by, for instance, compelling them to perform tasks before clocking in for the day. Additionally, though hourly employees are entitled to a 30-minute, uninterrupted meal period for every five hours of work, SpaceX has often required its employees to work in excess of five consecutive hours without providing legally compliant meal periods, the complaint claims.
November 27, 2023 – Consumer Fraud
Lawsuit Against Taco Bell Asks, ‘Where’s the Beef’?
In a proposed class action filed in Brooklyn federal court, plaintiff accuses Taco Bell of deceiving consumers by falsely advertising a number of its menu items — including its Mexican Pizza, Veggie Mexican Pizza, and Crunchwrap Supreme — as containing “at least double” their actual beef content.
Plaintiff claims in his lawsuit that a Mexican pizza he purchased contained approximately half of the seasoned beef and bean filling that he expected from the company’s advertisements and marketing. “Taco Bell advertises larger portions of food to steer consumers to their restaurants for their meals and away from competitors that more fairly advertise the size of their menu items, unfairly diverting millions of dollars in sales that would have gone to competitors,” plaintiff says.
“Taco Bell’s actions are especially concerning now that inflation, food, and meat prices are very high and many consumers, especially lower-income consumers, are struggling financially,” the complaint states. The suit seeks at least $5 million in damages from Taco Ball, which is headquartered in Irvine in Orange County, Calif.
November 22, 2023 – Intellectual Property
Facebook’s Meta Platforms Faces Trademark Lawsuit From Company Metabyte
Meta Platforms, parent company of Facebook and Instagram, has been sued in San Francisco federal court by staffing and tech-services company Metabyte, which accused Meta of violating its trademark rights.
Metabyte says in its suit that defendant’s use of the name Meta causes confusion among consumers, arguing that Meta and Metabyte offer related services and cover overlapping geographic areas.
According to the complaint, plaintiff Metabyte has been doing business under its name since 1993 and has owned federal trademarks covering it since 2014. The complaint notes that Metabyte offers services including consulting, website design and software development, adding that the companies had been in talks about coexisting with their respective names, but that the talks recently broke down.
November 21, 2023 – Product Liability
Black & Decker String Trimmers Said to Pose Laceration Hazard
A proposed class action filed in Los Angeles federal court alleges that certain Black & Decker string trimmers/edgers with automatic feed spools are defective and pose a significant laceration hazard to consumers.
According to the complaint, there is a “design defect” plaguing the Black & Decker products, including those with model numbers BESTA510 and GH900, which can cause too much spool to advance from the automatic feeder, and this in turn can cause pieces of trimmer string to come loose and become “airborne projectiles.”
The plaintiff claims in his lawsuit that the defect is “extremely dangerous” to users and bystanders and has rendered the string trimmers/edgers at issue “unsuitable for their principal and intended purpose. Many consumers, plaintiff says, have suffered physical injuries as a result of this defect, adding that he suffered a painful and deep laceration to his leg.
November 20, 2023 – Antitrust
EssilorLuxottica and Others Accused of Artificially Inflating Prices of Eyewear
A proposed class action filed in San Francisco federal court claims EssilorLuxottica and 48 other subsidiaries, manufacturers, retailers, and fashion houses have conspired to artificially inflate the price of eyewear products by as much as 1000 percent.
EssilorLuxottica — an Italian-French corporation and the world’s largest conglomerate in the eyewear industry — is the “instigator and primary enforcer” of a price-fixing conspiracy in the American eyewear market, according to the complaint. Also participating in the alleged scheme, the complaint says, are many of the country’s most popular eyewear brands, including co-defendants Costa Del Mar, Bulgari, Chanel, Dolce & Gabbana, Versace, Giorgio Armani, Michael Kors, Prada, Ralph Lauren, Tiffany & Co., and Christian Dior.
Plaintiff alleges in his lawsuit that defendants — who together control more than 80 percent of the prescription eyeglasses and sunglasses markets — have entered into anti-competitive agreements to “exercise strategic control over the price and supply of eyewear” in the American consumer market. To manipulate and inflate product prices to supra-competitive levels, plaintiff says, EssilorLuxottica relies on exclusive, multi-year licensing agreements with prominent fashion houses and sales agreements with competing manufacturers in the eyewear market.
November 16, 2023 – Intellectual Property
Unilever Sued for Trademark Infringement Over ‘Not Done Yet’ Slogan
A nonprofit foundation that advocates on behalf of teenage cancer patients has sued Unilever, claiming that the company’s use of the phrase “Not Done Yet” in ads for Degree deodorant and other products violates its trademark rights.
The I’m Not Done Yet Foundation claims in its lawsuit filed in federal court in Brooklyn, N.Y., that the Degree’s deodorant motivational ad campaign threatens to confuse consumers and damage the foundation’s ability to raise money. According to the complaint, the foundation has been using the name since 2018 and owns federal “I’m Not Done Yet” and “Not Done Yet” trademarks.
The lawsuit says that Unilever applied to register its own “Not Done Yet” trademark to use with products like deodorant, shampoo and body wash in 2021. The foundation argues that Unilever risks causing confusion by using the slogan in inspirational ads that convey the “same, strong, empowering message” as does the foundation.
November 15, 2023 – Privacy
Rite Aid Accused of Unlawfully Sharing Vistors’ Info With Third Parties
The pharmacy chain Rite Aid discloses website visitors’ personal and health information to Meta and other third parties without visitors’ knowledge or consent, alleges a proposed class action filed in federal court in Sacramento, Calif.
When customers visit RiteAid.com to fill a prescription, invisible tracking tools embedded into the website secretly transmit information about their medical history, mental and physical condition, and treatment to Meta, Google, TikTok, and other companies, according to the complaint. This data, the complaint says, is used by Rite Aid and the third parties it partners with to improve their targeted advertising capabilities.
Plaintiff claims in her lawsuit that Rite Aid’s data-sharing practices run contrary to its privacy policies, which explicitly state that the company must obtain written authorization from customers before using or disclosing their health information for marketing purposes. Rita Aid’s website, the plaintiff says, contains a snippet of programming code known as the Meta pixel that sends to the company data about each visitor as they interact with the page, and similar technologies transmit website users’ behavior to Google and other unauthorized third parties.
November 14, 2023 – Consumer Fraud
Class Action Says ‘Smoke Alarms’ Fail to Properly Warn of Common House Fires
A proposed class action filed in San Francisco federal court claims Walter Kidde Portable Equipment Inc. and First Alert have “placed profits over people” by falsely advertising their ionization-only devices as “smoke alarms.”
Defendants deceptively market devices that use ionization technology as “smoke alarms,” the complaint says, even though the technology demonstrably fails to timely detect and warn of smoldering fires, the most common and particularly dangerous type of home fire. “With deliberate disregard for the safety of the public,” the complaint says, the companies continue to falsely advertise and label the ionization-only devices as “smoke alarms” despite having known for decades that the products are unsuitable, by themselves, to reliably alert consumers to the presence of smoke from a smoldering fire.
Plaintiffs argue in their lawsuit that only a device that uses photoelectric technology — the alternative to ionization technology — should be called “smoke alarms,” as photoelectric products are capable of quickly detecting smoke from smoldering fires and sounding an alarm early enough to give people time to evacuate a building. Despite being labeled as “smoke alarms,” ionization-only devices like the ones sold by defendants “sound too late (or do not sound at all)” in response to fires that have not yet progressed to produce large, hot flames, plaintiffs contend.
November 13, 2023 – Product Liability
Amazon Accused of ‘Defective Design’ of LED Light Remote
A mother who alleges her 21-month-old child was seriously injured after ingesting a button battery that fell out of an LED light remote is suing Amazon, claiming the remote was defectively designed.
The lawsuit, which was filed in federal court in Fresno, Calif., says button batteries are small round batteries that power a variety of electronic devices and represent “tremendous swallowing hazards” to small children, who are particularly vulnerable because they put things in their mouth and button batteries can get stuck in their esophagus.
The product in question, according to the complaint, was a wireless remote for color-changing “fairy lights” sold under the Amazon “Homemory” brand. This product, the complaint claims, was unreasonably dangerous to consumers. “The injury in question did not need to happen, and it would not have happened if the product was manufactured, marketed, and sold in a manner that was safe.”
November 9, 2023 – Cybersecurity
Domino’s Pizza Franchisee Faces Lawsuit Over April 2023 Data Breach
Mac Pizza Management Inc. faces a proposed class action filed in Houston federal court that claims the company failed to protect the personal information of at least 39,000 employees of one of its Domino’s Pizza franchisees during an April 2023 cyberattack.
Mac Pizza, which operates nearly a hundred Domino’s Pizza locations around southeast Texas, the complaint says, discovered in mid-April that an unauthorized third party had gained access to its computer network from April 14 to April 22. Plaintiffs allege in their suit that the data breach compromised current and former employees’ private information, including Social Security and driver’s license numbers, among other personal data.
Plaintiffs argue that defendant failed to implement adequate cybersecurity measures to protect the confidential data stored in its systems, adding that had the company complied with industry standards and followed the recommendations of data security experts, it could have prevented the unauthorized disclosure of class members’ information. The complaint also takes issue with defendant’s alleged failure to notify data breach victims until almost three months after the breach occurred.
November 8, 2023 – Securities
SEC Charges Legendary Partners and Its President with Reality TV Offering Fraud
The SEC has charged California-based Legendary Partners LLC and its president, Scott L. Snyder, with conducting a nationwide offering fraud, targeting mostly elderly investors, that raised approximately $391,000 from April 2018 to December 2021.
According to the complaint filed in Los Angeles federal court, the offering was pitched as an opportunity to invest in a start-up company that purportedly would produce a reality television series about the refurbishment of damaged exotic and luxury vehicles. Legendary Partners and Snyder, the complaint says, solicited investors using “cold callers.” The SEC claims in its lawsuit that the cold callers would contact the mostly elderly investors by phone and routinely provide baseless and misleading profit projections.
The SEC alleges that Snyder also intentionally misdirected money to Legendary Partners from several other investors who intended to invest in different and unrelated offerings. Instead of investing the money as promised, the SEC says, Snyder tricked these investors into depositing their money into accounts controlled by Legendary Partners, and that this money was then misappropriated by Legendary Partners and Snyder.
November 7, 2023 – Intellectual Property
Pocket-bra Inventor Accuses Nike of Patent Infringement
Nike has been sued in Boston federal court by an inventor who claims the clothing company stole her technology for a line of sports bras with pockets.
Plaintiff claims in her lawsuit that she pitched her patented Pocket Bra to Nike starting in 2015, and that the company later used her inventions without permission in its “Swoosh” athletic bras with pockets for a wearer’s belongings.
The Pocket Bra, according to the complaint, “allows women to keep their most precious possessions close, convenient, and safe in a comfortable and fashionable manner.” Plaintiff says that she received patents for her product starting in 2016 and contacted several Nike employees to pitch her invention. But Nike declined to collaborate, plaintiff alleges, and soon after began applying for its own patents for bras with storage pockets.
November 6, 2023 – Constitution
Challenge to State Statute That Bans Abortion Care Assistance
A lawsuit filed in Idaho District Court challenges the recently enacted state statute that criminalizes adults who help minors travel to other states for abortion care.
Idaho, according to the complaint, has some of the most oppressive criminal abortion statutes in the United States. But this wasn’t enough, the complaint says. Specifically, the legislature criminalized adults who help minors travel for abortion care, if the adult has the intent to conceal the abortion from a parent or guardian. “Apparently aware that they can’t make abortions — or receipt of medications used in medical abortions — that occur in other states unlawful, they instead made it unlawful to provide travel assistance within Idaho, including helping minors reach or cross Idaho’s borders.”
The statute is unconstitutional, says Northwest Abortion Access Fund and other plaintiffs in the suit. It is poorly written and vague and unclear in the conduct it prohibits, plaintiffs argue, adding that it “infringes on First Amendment rights to speak about abortion and to associate and to engage in expressive conduct, including providing monies and transportation (and other support) for pregnant minors traveling within and outside of Idaho to access out-of-state legal abortion care.”
November 2, 2023 – Consumer Fraud
Walmart Sued Over Alleged Mislabeling of Its ‘Natural’ Fruit and Grain Cereal Bars
A proposed class action filed against Walmart Inc. contends that the labeling of its Great Value brand “Cherry” and “Apple Cinnamon” fruit & grain cereal bars is misleading, as the products’ packaging fails to include the artificial flavoring ingredients that partially provide the cherry and apple taste.
Walmart sells fruit and grain cereal bars with fruit flavors like mixed berry, cherry, apple, and cinnamon under its Great Value brand, according to the complaint filed in federal court in Tampa, Fla. This labeling is misleading, the complaint says, because it represents that the taste of the characterizing fruit filling ingredients, i.e., cherries and apples, is only from those fruit ingredients and does not include artificial flavoring that partially provides the cherry and apple taste.
Plaintiff claims in her lawsuit that a majority of consumers prefer foods with natural instead of artificial ingredients. Consumers believe that foods with artificial ingredients are less healthy compared to those with only natural ingredients, plaintiff says, adding that consumers want foods that are “closer to their original form, in the context of a packaged food, instead of having been highly processed.” Further, plaintiff says, consumers believe that foods with natural ingredients are better for the environment than those “laden with synthetic ingredients and made through artificial processes.”
November 1, 2023 – Product Liability
Ford Charged in Defective Transmission Class Action
Ford Motor Co. faces a proposed class action asserting that certain Ford Expeditions, Mustangs, Rangers, F-150s, and Lincoln Navigators have defective transmissions that cause the vehicles to operate erratically or lose power.
According to the complaint filed in Miami federal court, Ford knew or should have known that the vehicles contain defects that can cause them to jerk or slip between gears, with some consumers experiencing a sudden loss of power.
Ford’s warranty, the complaint says, states that dealers will, without charge, repair or replace all parts that malfunction or fail during normal use due to a manufacturing defect in factory-supplied materials. But, plaintiffs claim, Ford refuses to make such repairs, saying that the abrupt and harsh shifting is “normal.” At most, plaintiffs say, Ford recommends reprogramming the transmission to the default settings to address these concerns.
October 31, 2023 – Intellectual Property
Father of Selena Sues Cruise Company for Trademark Infringement
The father of deceased Mexican-American singer Selena has filed a lawsuit in Los Angeles federal court, accusing a cruise company of trademark infringement and right of publicity violations over its Selena tribute cruises.
Plaintiff claims in his suit that Catalina Classic Cruises Inc. illegally used Selena’s design plus word trademark to promote its “Cumbia Cruise” events. According to the complaint, the ferry and charter boat company, which advertises private charters around California’s Long Beach Harbor and Catalina Island, hosted two events that used the late singer’s likeness in flyers and promotional materials.
Since Selena’s death in 1995, when she was 23 years old, her father says he has selectively endorsed a variety of products and services, including clothing and fashion accessories. But defendant did not have his permission, plaintiff claims, to depict the likeness of Selena to promote a cruise event listed as “Cumbia Cruise L.A.”
October 30, 2023 – Cybersecurity
California Retirees Claim CalPERS Contractors Caused Data Theft
Pension Benefit Information (PBI) LLC and The Berwyn Group Inc. failed to protect the personal information of a million or more California retirees in connection with a May 2023 cyberattack upon Progress Software Inc.’s widely used MOVEit file transfer utility.
According to the proposed class action filed in San Francisco federal court, The MOVEit attack, allegedly carried out by a criminal hacking group known as Clop, has resulted in the theft of data from dozens of organizations and government agencies in the US and Europe. Notable victims, the complaint says, include oil giant Shell PLC and British Airways, along with banks, manufacturing firms, and universities.
PBI and Berwyn are contractors for the California Public Employees Retirement System, or “CalPERS,” the largest public pension fund in the United States. These contractors, plaintiffs say in their lawsuit, hold themselves out as data security fortresses, claiming that “protecting and securing your information is our highest priority.” But in May, plaintiffs claim, the contractors allowed an unauthorized user from a ransomware group to exploit an undetected security flaw in the MOVEit file transfer system, and the total number of pensioners who were affected, while extensive, is still unknown.
October 26, 2023 – Antitrust
Express Scripts Conspired to Overcharge Pharmacies, Lawsuit Alleges
A group of pharmacies has filed a proposed class action in Milwaukee federal court accusing Cigna Group’s pharmacy benefit manager unit Express Scripts Inc. of conspiring with another company to charge higher fees and reimburse pharmacies at lower rates.
A three-year collaboration agreement announced in 2019 between Express Scripts and benefits management company Prime Therapeutics was in fact a pretext for fixing reimbursement rates and fees, with no benefit for customers, according to the complaint. Express Scripts had the second largest market share of U.S. pharmacy benefit managers (PBMs) in 2022, while Prime Therapeutics had the fifth largest, the complaint says. PBMs act as intermediaries between drugmakers, health insurance plans, and pharmacies to negotiate drug prices and maintain the lists of drugs covered by insurance.
The pharmacies say in their suit that until the 2019 agreement, Express Script’s larger market share allowed it to collect higher transaction fees from retail pharmacies than Prime Therapeutics, while reimbursing them less. Under the agreement, the pharmacies contend, Prime began paying the same reimbursement rate and charging the same fees as Express Scripts.
October 25, 2023 – Labor & Employment
Baseball Scouts Sue Major League Baseball, Alleging Age Discrimination
A group of former MLB scouts alleges in a proposed class action that MLB and all 30 teams have uniformly denied reemployment to those over 40 years old in favor of “substantially younger” scouts.
According to the lawsuit filed in federal court in Denver, Colo., plaintiffs, 17 in number, worked as scouts for a number of MLB teams and sought reemployment at some point within the last three years after their contracts expired or they were otherwise terminated. The suit says that although each plaintiff has “substantial experience” in scouting, they and other older scouts were nevertheless denied reemployment by other major league clubs, in an apparent years-long pattern of age discrimination.
The MLB and its teams have over the last several years, the complaint says, systematically separated older scouts from teams in order to “build a workforce of Younger Scouts,” a violation, plaintiffs claim, of the Age Discrimination in Employment Act. The complaint notes that “inexplicably large numbers” of older scouts were fired in 2020, 2021 and 2022 and have since been unable to find new jobs as scouts amid a baseball landscape where analytics have come to the fore and teams look to save money wherever possible.
October 24, 2023 – Intellectual Property
Rapper Ye Accused of Unlicensed Sampling of Texas Pastor’s Sermon
The rapper Ye, a/k/a Kanye West, is facing a copyright infringement suit brought by a Texas pastor over the alleged unauthorized sampling of one of his sermons for a track on Ye’s 2021 album “Donda.”
Plaintiff bishop David Paul Moten claimed Ye used unlicensed samples of plaintiff’s 2011 sermon “Thank God for Saving Me” in the song “Come to Life” without his consent, according to a complaint filed in the Victoria division of federal court for the Southern District of Texas. UMG Recordings Inc., Def Jam Recordings, and G.O.O.D Music are also listed as defendants.
In his lawsuit, plaintiff says that defendant’s “Come to Life” is approximately five minutes and ten seconds in length, and approximately one minute and ten seconds of this sound recording is sampled directly from plaintiff’s sermon and appears to run on a loop underscoring the pre-chorus and chorus throughout the song in question. Consequently, plaintiff argues, twenty percent of the entire sound recording “Come to Life” is comprised of unauthorized, unlicensed samples of the sermon.
October 23, 2023 – Product Liability
Campbell’s ‘Pop Secret’ Popcorn Said to Contain Forever Chemicals
Plaintiffs allege in a proposed class action filed in San Francisco federal court that Campbell Soup Co.’s Pop Secret microwave popcorn products contain “extremely high levels” of forever chemicals, known as PFAS.
PFAS, according to the complaint, are described in this manner because they don’t degrade naturally in the environment, and are used in everything from firefighting foam to household items. They have been found in Pop Secret’s 10 flavored popcorn products, and have been linked to various health problems, including liver and immune-system damage and some cancers, the complaint says.
Plaintiffs argue in their lawsuit that Campbell Soup’s popcorn is unlike other microwave popcorn products on the market. “Other products do not contain PFAS,” plaintiffs say, adding that while other brands contain less than 10 parts-per-million of forever chemical fluorine content, federal regulations technically define anything containing more than 100 parts per million as “hazardous waste.” Defendant’s premium popcorn has over four times this amount,” plaintiffs claim.
October 20, 2023 – Consumer Fraud
CVS Pink Eye Drops Misbranded and Require FDA Approval, Lawsuit Alleges
CVS Pharmacy faces a proposed class action after it received an FDA warning letter about its over-the-counter CVS Health Pink Eye Relief Drops, which the agency said are labeled in a manner that requires regulatory approval.
The lawsuit, filed in federal court in Buffalo, N.Y., contends that certain efficacy claims on the packaging of CVS’ Pink Eye Drops lead consumers to believe that the product is a drug “intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.” As such, the FDA issued warnings to CVS — and seven other companies who sell similar products — that the CVS Pink Eye Drops are essentially an unapproved new drug not generally recognized as safe and effective for its promoted uses or evaluated by qualified experts, the complaint says.
In particular, the complaint says, the label claims that the Pink Eye Drops have “a homeopathic formula that stimulates the body’s ability to relieve redness, burning, watery discharge, and sensations of grittiness.” But plaintiff argues in her suit that the eye drops are misbranded given that they are unable to “relieve the identified symptoms.”
October 19, 2023 – Antitrust
Atlantic City Casino-Hotels Accused of Conspiracy to Fix Room Prices
A proposed class action claims that a number of large Atlantic City casino-and-hotels have illegally conspired to fix and raise hotel room prices.
Filed in federal court in New Jersey, the lawsuit alleges that the operators of Caesars, Harrah’s, Tropicana, Borgata, Bally’s, MGM Tower, Hard Rock, and other Atlantic City hotels have for years used a “shared pricing algorithm” platform to conspire on room prices, causing consumers to overpay for guest rooms rented directly from the companies.
Until recently, according to the complaint, casino-hotels set their room rates independently from each other as dictated by market forces. However, the complaint says, a seismic shift began when a platform was developed and released by The Rainmaker Group to help their clients “capture revenue they believed was being lost during the process of competing for guests.” This pricing algorithm is designed to “optimize” the room rates casino-hotels charge guests in order to “maximize” the corresponding revenue, plaintiffs argue in their suit.
October 18, 2023 – Consumer Fraud
Dove Advanced Care Antiperspirant Deodorant Said to Be Not as ‘Natural’ as Advertised
A proposed class action alleges that Unilever United States Inc. has falsely advertised that Dove Advanced Care antiperspirant deodorant contains only natural ingredients, including significant amounts of natural oil.
Filed in federal court in the Northern District of New York, the complaint argues that the product’s front-label statement “¼ moisturizers with natural oil” and images of fruits or vegetables lead consumers to believe that Dove Advanced Care antiperspirant deodorant is made exclusively with natural ingredients, a large portion of which are natural oils.
In truth, plaintiff claims in her lawsuit, the products contain “de minimis” amounts of oil made with synthetic chemical solvents. Despite the front label’s emphasis on natural oils, the most predominant ingredients in Dove Advanced Care antiperspirant deodorant, stearyl alcohol and C12-15 alkyl benzoate, are neither natural nor oils, plaintiff says.
October 17, 2023 – Environment
Challenge to National Forest Timber Sale in Colorado
Conservationists claim the U.S. Forest Service violated environmental laws by approving a nearly 23,000-acre timber sale in southwestern Colorado’s San Juan National Forest.
The lawsuit, filed in federal court in Colorado, seeks judicial review of Forest Service actions that authorize timber sales in an area of the San Juan National Forest in southwest Colorado bordered by the Dolores River and McPhee Reservoir on the west and the West Dolores and Dolores River on the east. The Dolores River watershed, according to the complaint, is known for a “diverse landscape that stretches from 14,000-foot peaks, through spectacular forests and into redrock canyons and mesas,” supporting unique wildlife habitat and recreational opportunities.
Plaintiffs argue in their suit that in authorizing the timber sales, the defendant deferred the gathering of specific data on mitigations, road networks, public input, and other matters regarding the logging project until preparation of specific terms of individual timber sale contracts. This approach, plaintiffs say, authorizes sale of private contracts to log the National Forest in a manner that violates federal laws, including the National Environmental Policy Act and the National Forest Management Act.
October 12, 2023 – Securities
Peloton Faces Investor Suit Over Bike Recall
Fitness company Peloton has been sued in an investor action alleging the company overstated the safety of its bikes prior to a U.S. Consumer Product Safety Commission (CPSC) recall of roughly 2.2 million Peloton products over a bike seat defect, an action that purportedly caused the company’s stock to decline by nearly 9% in May.
According to the complaint filed in Brooklyn federal court, Peloton, which manufactures and sells treadmill exercise bikes, has been mired in controversy after the CPSC issued an urgent warning to consumers on May 11 to stop using the company’s treadmill products because of risks of injury and death posed to children and pets in the vicinity of those products.
Prior to the CPSC recall, the complaint says, Peloton made “materially false and misleading statements” regarding the company’s business. Specifically, the company failed to disclose that the seat posts for certain of its bikes were prone to break or otherwise detach during use, and that a recall was likely. Further, Peloton overstated its efforts to enhance the safety of its products and understated its estimated future returns. As a result, plaintiff argues, the recall caused a “precipitous decline” in the market value of the company’s securities, causing investors to suffer significant losses and damages.
October 11, 2023 – Product Liability
Lawsuit Says Sunbeam Heating Pads Caused Third-Degree Burns That Required Skin Graft
Plaintiff alleges that her Sunbeam heating pad had a defective design that resulted in it overheating, causing her to suffer third-degree burns.
According to a complaint filed in Miami federal court, the Sunbeam Queen Size Heating Blanket that plaintiff was using to help with edema in her lower extremities was unreasonably dangerous, since it could unexpectedly overheat and catch fire, resulting in serious risks for consumers. This product, the complaint says, was recalled by the Consumer Product Safety Commission in March 2023, impacting about 43,000 units sold in the U.S.
Defendant “knew or should have known of these defects, but nevertheless put profits ahead of safety by continuing to sell its Heating pads to consumers, failing to warn said consumers of the serious risks posed by the defects, and failing to timely recall the dangerously defective Heating pads” despite the risk of significant injuries to plaintiff and other consumers, the lawsuit claims.
October 10, 2023 – Constitution
Gun Rights Advocate Sues Connecticut After Governor Signs Open Carry Ban
Idaho-based We the Patriots USA, a group that calls itself a protector of gun and other rights, has filed a lawsuit in federal court in New Haven, Conn., alleging that a new Connecticut law that bans open carry of firearms and imposes other restrictions on gun possession is unconstitutional.
Besides banning the open carrying of firearms, according to the complaint, the law would increase bail and toughen probation and parole for people with repeated gun offenses. It also would prohibit selling more than three handguns within 30 days to any one person, with some exceptions for instructors and others. Other provisions of the law, the complaint says, include expanding Connecticut’s current assault weapon ban to include other similar weapons; stiffening penalties for possession of large-capacity magazines; expanding safe-storage rules to more settings; and adding some domestic violence crimes to the list of disqualifications for having a gun.
We the Patriots argues in its suit that the new law violates 2nd Amendment gun rights, particularly the ban on open carrying and limiting purchases to no more than three guns within a 30-day period.
October 9, 2023 – Product Liability
Jeep Wrangler, Gladiator Windshields ‘Extremely Prone’ to Cracking, Lawsuit Alleges
A proposed class action claims that the front windshields of the 2016-to-present model year Jeep Wrangler and Gladiator vehicles are “extremely prone” to cracking due to a manufacturing defect.
The complaint, filed in federal court in New Jersey, says that the vehicles’ windshields can crack, fracture, or chip “for no reason” and under circumstances that would not cause a non-defective windshield to become impaired and fail, such as when the defroster is in use or if the windshield comes into contact with a small pebble from the road. The Jeep windshield defect, the complaint says, poses an unreasonable safety hazard given that it can compromise a driver’s visibility and the structural integrity of a Wrangler or Gladiator vehicle.
“The Windshield Defect exposes drivers …, as well as others who share the road with them, to an increased risk of accident, injury, or death,” plaintiffs allege in their suit, adding that many Gladiator and Wrangler owners and lessees have complained about the alleged windshield defect in online forums and to Jeep dealers, as well as on the National Highway Traffic Safety Administration website.
October 5, 2023 – Environment
Delta Accused of False Claims of ‘Carbon-Neutrality’
A proposed class action filed in Los Angeles federal court alleges that Delta Airlines’ claim that it is carbon-neutral is “manifestly and provably false” given that the carbon offset market on which Delta bases its claim contains “foundational issues” that prevent any participating company from truly being “carbon-neutral.”
Delta’s carbon-neutral claim, according to the complaint, hinges upon “an underlying set of representations” that the airline has somehow entirely offset carbon dioxide emissions from its global operations such that the company has not been responsible for releasing additional carbon into the atmosphere since March 2020.
But these representations are false, the complaint says. Despite calling itself “the world’s first carbon-neutral airline,” scientists and government regulators have called out the airline specifically as one of many companies that have “grossly misstated” the actual carbon reduction produced by their carbon offset portfolio. “Accordingly, Defendant’s claims of ‘carbon neutrality’ are false and misleading,” plaintiff alleges in her lawsuit. “[T]he operation of Defendant’s airline is not carbon neutral, and consumers would not have purchased tickets on Defendant’s flights, or paid substantially less for them, had they known the claim of carbon neutrality was false.”
October 4, 2023 – Labor & Employment
Law Firm Wrongfully Fired Pregnant Employee, Lawsuit Claims
A former intellectual property associate at DLA Piper, one of the nation’s largest law firms, has filed a gender bias lawsuit in Manhattan federal court, alleging that the firm fired her because she sought maternity leave.
Plaintiff was fired in October 2022, less than a week after she submitted paperwork to take 18 to 20 weeks of maternity leave, according to the complaint. Plaintiff was told that the firing was because she was an underperformer, the complaint says, even though she had previously received only positive feedback. The prior year, plaintiff had received three raises and a six-figure bonus that amounted to 30% of her base salary.
At the time of plaintiff’s firing, the lawsuit says, DLA Piper was experiencing pressure to lower billing rates, and plaintiff’s intellectual property group was getting less billable work. “Caring only about its bottom line, DLA was unwilling to incur the costs of paying an experienced associate while on her maternity leave because the firm would not reap the benefit of her billable hours,” the suit alleges. Plaintiff claims violations of Title VII of the Civil Rights Act, the Pregnancy Discrimination Act, and New York state and city discrimination laws.
October 3, 2023 – Defamation
OpenAI Chatbot Accused of ‘Hallucinating’ in Spreading False Information
A libel lawsuit against OpenAI claims that its artificial intelligence platform, ChatGPT, provided false information to a journalist inquiring about a lawsuit pending in another district, with the A.I. chatbot falsely accusing plaintiff of embezzling money.
According to the suit, filed in Superior Court of Gwinnett County (Ga.), a journalist asked ChatGPT for information about a case pending in federal court in the Western District of Washington. The chatbot responded by saying the case involved plaintiff who was accused in that case of misappropriating funds for personal expenses.
Plaintiff says in his suit against OpenAI that every reference about him in ChatGPT’s summary of the federal case is false. He was not, plaintiff says, a party to that suit, and there are no accusations against him in that case or elsewhere of misappropriating funds or any other wrongdoing. Defendant is aware, plaintiff claims “that ChatGPT sometimes makes up facts, and refers to this phenomenon as a ‘hallucination.’” In its false accusations, plaintiff argues, the chatbot has acted in a “reckless” manner that resulted in libelous material being published about him.
October 2, 2023 – Negligence
Payments Network Zelle Caused Double Debits from Chase Customers’ Accounts, Lawsuit Alleges
A proposed class action claims negligence on the part of Chase Bank and digital payments network Zelle is to blame for a malfunction that caused payments to be debited twice from customers’ accounts.
Chase customers began to notice on June 1 of this year that payments they’d made via Zelle had been debited twice from their accounts, while others discovered they were doubly credited for funds transferred to them via Zelle by other accountholders, according to the complaint filed in Manhattan federal court. The complaint alleges that Chase failed to properly link to and operate with the Zelle platform, and that the bank neglected to implement procedures that would quickly detect technical glitches.
The suit says that plaintiff, a Chase customer, used Zelle to send his $2,000 monthly rent payment to his landlord’s account at another bank. Though the landlord only received one payment, the plaintiff was surprised to see that his Chase statement, in fact, indicated that two deductions of $2,000 had been made, resulting in an overdraft on plaintiff’s account.
September 28, 2023 – Environment
EPA Sued Over Pesticide-Coated Seeds
The U.S. Environmental Protection Agency has been sued by two nonprofit organizations claiming that the agency fails to regulate pesticide-coated seeds.
According to the complaint filed in San Francisco federal court, coated crop seeds are typically overlayed with a class of insecticides called neonicotinoids, which target the central nervous system of insects. They are believed to be harmful to bee colonies, as well as birds and butterflies. Though pesticide sprays are regulated by the EPA, pesticide-treated seeds are not, the complaint says, since they fall under the agency’s “treated article exemption.” That means that, unlike pesticide sprays, coated seeds do not have to be registered with EPA and have no label, a starting point for many state regulations requiring transparency, the complaint says.
“If EPA regulated coated seeds the way it does any other pesticide, it would be required to assess data specific to coated seeds’ impact, rather than merely the active ingredient in the liquid coating products,” allege plaintiffs Center for Food Safety and Pesticide Action Network. “It would have to weigh the harms of coated seeds, which are massive, and supported by substantial evidence, against their benefits (shown to be minimal or nonexistent) in support of any coated seed product registration.”
September 27, 2023 – Product Liability
Lawsuit Alleges Fungi-Nail Products Are Ineffective
Kramer Laboratories has misled consumers by marketing its Fungi-Nail products as a treatment for nail fungus, even though the medications are in fact ineffective against fungal infections, alleges a proposed class action filed in Sacramento federal court.
According to the complaint, defendant Arcadia Consumer Healthcare, which does business as Kramer Laboratories, advertises on its website and the items’ packaging that Fungi-Nail products contain “Maximum Strength Medicine” that is “Clinically Proven to Cure and Prevent Fungal Infections.” The front label, which features an image of an infected toenail, plainly states that the product is an “Antifungal Liquid,” the complaint says.
Plaintiff contends in his lawsuit that despite defendants’ claims, the “supposed medication” does not cure or prevent fungal infections, and even the name of the product is misleading, as consumers “will immediately assume [Fungi-Nail] is a nail fungus treatment.” Plaintiff says he would not have purchased the product, or paid as much for it, had he known it was misbranded and unable to fight nail fungus as he was led to believe.
September 26, 2023 – Privacy
Amazon Drivers Accuse Company of Illegal Face Scans
A proposed class action filed in Cook County Court (Chicago, Ill.) claims that Amazon requires its Flex drivers, who deliver packages using their own cars, to undergo facial scans without the consent required by the Illinois Biometric Information Privacy Act.
Amazon Flex mandates that its drivers undergo routine identity checks, according to the complaint. These checks, the complaint says, include a facial geometry analysis on the photos contained in drivers’ licenses, which defendant then collects and disseminates to, amongst other things, further enhance Amazon Flex and its online shopping and shipping business model.
Plaintiff says in her lawsuit that Amazon Flex’s allegedly unlawful use of its drivers’ biometric data exposes them to “serious and irreversible privacy risks.” For example, plaintiff says, if Amazon Flex’s database containing facial geometry scans is hacked or otherwise exposed, Amazon Flex drivers have “no means by which to prevent identity theft, unauthorized tracking or other unlawful or improper use of this highly personal and private information.”
September 25, 2023 – Consumer Fraud
Simmons Bedding Hit With Thread-count Lawsuit
Simmons Bedding Company LLC has been sued in a proposed class action accusing the company of selling bedding and linens that falsely inflated their “thread count,” misleading buyers over the purported higher quality and durability of the products.
Plaintiff in her suit, which was filed in San Francisco federal court, alleges that certain Simmons Beautyrest products were deceptively marketed as having a “1,000 thread count” when the number of strands per square inch was really 216. Plaintiff says she would not have purchased Beautyrest bed sheets, or would have paid less for them, had Simmons disclosed the alleged actual count.
The complaint states that misbranded thread counts deceive consumers into believing “they are purchasing a product which is of higher quality, durability, longevity, softness, or better for sleeping than products with a lower thread count.” An independent laboratory, the complaint says, was commissioned to examine the thread count.
September 21, 2023 – Intellectual Property
Showtime’s ‘Penny Dreadful’ Stole Online Character, Lawsuit Alleges
A writer is suing Showtime Networks Inc. and the makers of the show “Penny Dreadful” in Los Angeles federal court, accusing them of copying her Victorian protagonist and other characters from posts she made in the online role-playing community forum “Murders & Roses: Victorian London Crimes & Scandals.”
The television series Penny Dreadful began airing on Showtime and other platforms in 2014, according to the complaint. The series, the complaint says, wove together stories set in 19th Century London involving characters from Victorian Gothic fiction and was an immediate hit. The copyright infringement claim in this litigation focuses on the character of Vanessa Ives in the story told by Penny Dreadful.
Plaintiff claims in her lawsuit that the Vanessa Ives character was actually created by plaintiff in 2011, three years before Penny Dreadful first aired. Plaintiff’s character, like Showtime’s Vanessa Ives, was “a violent and mysterious woman.” Her name was Charlotte Benoit. Plaintiff depicted Charlotte as a woman in her early thirties who, like Vanessa Ives, typically dressed in a dark jacket and matching skirt, with a high-collared shirt and veiled top-hat, and “who would don extravagant gowns with low-cut décolletages for special evenings.”
September 20, 2023 – Cybersecurity
Albertsons Companies Accused of ‘Preventable’ Employee Data Breach
Albertsons Companies Inc., one of the nation’s largest food and drug retailers, faces a proposed class action over a December 2022 data breach that allegedly impacted tens of thousands of current and former employees.
The lawsuit, filed in federal court in Boise, Idaho, contends that the breach, during which an unauthorized third party gained access to files containing employees’ personal information, was a direct result of defendant’s failure to implement reasonable cybersecurity measures.
In her suit, plaintiff argues that Albertsons had a legal duty under state and federal laws to protect consumers’ personal information from unauthorized exposure. Despite these obligations, plaintiff says, the company maintained its employees’ data in a “reckless manner” on a computer network that was “vulnerable to cyberattacks.” The complaint says that data thieves responsible for the hack were able to exfiltrate victims’ names, dates of birth, and Social Security numbers, all of which can be used by the hackers to commit various crimes. The affected individuals, the complaint says, must now spend significant amounts of time, money, and effort to guard against these threats.
September 19, 2023 – Securities
Shaquille O’Neal NFTs Challenged in Lawsuit
Basketball legend Shaquille O’Neal faces a federal class action filed in Miami federal court accusing him of selling unregistered securities in a business venture called the Astral Project involving digital tokens known as NFTs.
The Astral Project, according to the complaint, aimed to promote investment in a virtual world (the “Astralverse”) in which users could socialize with other users, including with O’Neal himself, through unique three-dimensional avatars that could be traded through the “Magic Eden” marketplace. Aside from minting and collecting avatar NFTs through the Astrals ecosystem, the complaint says, investors could purchase them on Magic Eden, the official marketplace for Astrals NFTs. In January 2023, the Astrals NFTs suffered a steep decline in value.
Plaintiff claims in his lawsuit that an investment contract is a form of security under federal securities laws when (1) the purchaser makes an investment of money or exchanges another item of value (2) in a common enterprise (3) with the reasonable expectation of profits to be derived from the efforts of others. Applying these criteria to the Astrals NFTs reveals they qualify as securities as an investment contract and O’Neal, in selling unregistered securities, is responsible for losses incurred, plaintiff contends.
September 18, 2023 – Labor & Employment
Interpreters for American Sign Language Say They Were Misclassified as Independent Contractors
In Manhattan federal court, a proposed class action alleges American Sign Language Inc. (ASLI) has misclassified its sign-language interpreters as independent contractors, in violation of the Fair Labor Standards Act.
ASLI employs and places sign-language interpreters where their services are needed, according to the complaint. This relationship between ASLI and its interpreters, the complaint says, reflects that of an employer and employee, given that the defendant “unilaterally” controls the workers’ schedules, pay rates, and duties.
Plaintiff contends in her lawsuit that the failure of ASLI to classify interpreters as employees deprives them of benefits to which they should be entitled under state and federal law, those benefits including overtime wages, participation in a retirement plan, Social Security contributions, state and federal income tax deductions, and proper wage notices or statements.
September 14, 2023 – Consumer Fraud
Lume Deodorant Sued Over Allegedly Deceptive ‘Clinically Proven’ Odor-Blocking Claim
A proposed class action filed in Brooklyn federal court says Lume Deodorant has misled consumers by advertising its products as aluminum-free and “clinically proven” to prevent body odor for up to 72 hours.
Despite the company’s claims that a clinical study proved that the product could “block body odor all day, and continue to control odor for 72 hours,” the complaint says, testing of the product determined only that Lume deodorant was superior to competitors, not that it could limit body odor for the represented amount of time.
According to the complaint, Lume’s statements are deceptive because the sample sizes in their study were “neither large nor diverse enough” to verify the claims of long-lasting odor control. Further, plaintiff argues in her lawsuit, defendant’s representation that the Lume items are aluminum-free is misleading because “aluminum is not found in any deodorant products.”
September 13, 2023 – Constitution
Penguin Random House Sues Florida School District Over Book Bans
Book publisher Penguin Random House has filed a lawsuit in federal court in Pensacola, Fla., challenging the removal by a Florida school district of 10 books related to race and the LGBTQ community after a high school teacher complained.
In addition to Penguin, other plaintiffs in the suit include PEN America, a nonprofit group that advocates for free expression in literature; five authors whose books have been removed from the school district; and two parents whose children go to school in the district.
Plaintiffs allege that the district violated the First Amendment by “depriving students of access to a wide range of viewpoints, and depriving the authors of the removed and restricted books of the opportunity to engage with readers and disseminate their ideas to their intended audiences.” Plaintiffs also argue that the removals violate the equal protection clause of the 14th Amendment “because the books being singled out for possible removal are disproportionately books by non-white and/or LGBTQ authors, or which address topics related to race or LGBTQ identity.” Removed books include “Uncle Bobby’s Wedding” by Sarah Brannen, “All Boys Aren’t Blue” by George M. Johnson, “Two Boys Kissing” by David Levithan, “When Aidan Became a Brother” by Kyle Lukoff, and “Out of Darkness” by Ashley Hope Pérez.
September 12, 2023 – Antitrust
Mobile Home Park Owners Accused of Rental Price-Fixing
A group of the country’s largest corporate managers of mobile home communities and a market data provider have been sued in Chicago federal court in a proposed class action alleging a conspiracy to inflate rental prices for older and low-income residents.
The plaintiffs, two Illinois residents who rented lots for their manufactured homes, filed the lawsuit against Datacomp Appraisal Systems and nine other companies that own or have controlling interests in more than 150 housing communities across the country. The suit alleges that the corporate owners shared competitively sensitive information about lot rentals and occupancy via industry reports from Datacomp. That information, according to the complaint, allowed the defendants to coordinate their prices in violation of U.S. antitrust law.
“The effect of defendants’ conspiracy has been devastating to manufactured home residents,” plaintiffs claim in their suit. “These individuals — whose median annual household income is approximately $35,000 — are being overcharged for what used to be affordable housing.”
September 11, 2023 – Product Liability
EzriCare Artificial Tears Eye Drops Caused Eye Infection, Lawsuit Claims
Plaintiff alleges that she developed sepsis and spent time in an intensive care unit (ICU), after experiencing a treatment-resistant eye infection from use of EzriCare Artificial Tears eye drops, according to a lawsuit filed in federal court in Covington, Ky.
The eye drops, the complaint says, were recalled earlier this year due to bacterial contamination. Defendants in the lawsuit include Ezricare LLC, Ezrirx LLC, Global Pharma Healthcare Private Ltd, and Aru Pharma Inc. Plaintiff says in her suit that she was falsely led to believe the medication was safe.
Plaintiff alleges the eye drops caused her to suffer eye pain, redness, and blurry vision, at which time she was diagnosed with necrotizing scleritis, likely due to an infection. She says she was admitted to an ICU and was diagnosed with sepsis. As a result of the eye infection, the complaint states, plaintiff has undergone multiple surgeries, hospitalizations, and prolonged antibiotic use.
September 7, 2023 – Privacy
DOJ Files Suit Against Telecommunications Service Provider for Facilitating Illegal Robocalls
The Department of Justice has filed a civil enforcement action against XCast Labs Inc. for allegedly violating the Telemarketing Sales Rule by assisting and facilitating illegal telemarketing campaigns.
According to a complaint filed in Los Angeles federal court, XCast Labs provided voice-over internet protocol (VoIP) services that transmitted billions of illegal robocalls to American consumers, including scam calls that fraudulently claimed to be from government agencies.
These robocalls, DOJ says, delivered prerecorded marketing messages, and many of them were delivered to numbers listed on the National Do Not Call Registry. Further, DOJ says, many of the calls failed to truthfully identify the seller of the services being marketed, falsely claimed affiliations with government entities, contained other false or misleading statements to induce purchases, or were transmitted with “spoofed” caller ID information.
September 6, 2023 – Consumer Fraud
Nike Accused of False Advertising Over ‘Sustainable’ Clothing
A Missouri woman has filed a proposed class action against Nike USA Inc., alleging the company misleads consumers by claiming to make its products in a sustainable way while in fact it is still using methods that bring harm to the environment.
Plaintiff says in her lawsuit filed in St. Louis federal court that Nike uses “deceptive and misleading” statements when marketing its sustainability collection. Specifically, plaintiff contends that Nike deceives consumers into believing that they are receiving products that are “sustainable, made with recycled fibers, and can reduce one’s carbon footprint in a move to zero carbon and zero waste.”
Nike is taking advantage of consumers increasingly interested in eco-friendly products while failing to deliver on its promises, the complaint alleges. “[Plaintiff] would not have purchased the products if she had known that they were not sustainable, not made from sustainable materials and not environmentally friendly,” the complaint says.
September 5, 2023 – Cybersecurity
One Million+ Patients Impacted by NextGen Healthcare Data Breach, Lawsuit Alleges
Electronic records software company NextGen Healthcare faces a proposed class action filed in Atlanta federal court in the wake of a data breach the company experienced in March 2023.
The lawsuit says highly sensitive data belonging to over one million people was compromised after the NextGen healthcare records were targeted in the cyberattack. The suit alleges NextGen stored consumer data, which it gathers through its doctor and medical professional clients, “in a negligent and/or reckless manner,” that made the data “vulnerable to cyberattacks.”
Plaintiff claims in his suit that the personal data exposed in the incident included consumers’ names, addresses, dates of birth, and Social Security numbers, this information being the “gold standard” of data for identity thieves. The exposed information, plaintiff says, “can, and likely will, be sold repeatedly on the dark web.”
September 4, 2023 – Constitution
Florida Sued for Barring Chinese Citizens from Home Ownership
A group of Chinese citizens living in Florida has sued the state to strike down a new law that bars citizens of China and several other countries from owning homes and land in the state.
The four plaintiffs, represented in the lawsuit by the American Civil Liberties Union (ACLU), claim in the suit filed in federal court in Tallahassee, Fla., that the law is unconstitutional and violates a federal statute banning housing discrimination. The law, according to the complaint, prohibits individuals who are “domiciled” in China and are not U.S. citizens or green card holders from owning buildings or land in Florida. It also bars most citizens of Cuba, Venezuela, Syria, Iran, Russia, and North Korea from owning property within 10 miles of any military installation or “critical infrastructure facility” such as a power plant, airport or refinery.
The ACLU argues in its complaint that the law violates provisions of the U.S. Constitution that guarantee equal protection and due process. The group says the law also violates the federal Fair Housing Act, which prohibits housing discrimination based on race and national origin.
August 31, 2023 – Labor & Employment
EEOC Sues NC IHOP for Religious Discrimination
Restaurant chain IHOP violated federal law when it required an employee to work on Sundays despite a previously granted religious accommodation, and then fired him when he attempted to exercise his rights, the U.S. Equal Employment Opportunity Commission claims in a lawsuit filed in federal court in Charlotte, N.C.
The EEOC says in its suit that IHOP hired a cook at a location in Charlotte in January 2021. At the time of hire, the EEOC says, the employee requested and was granted a religious accommodation of not working on Sundays to honor his religious observances. But after a change in management in April 2021, the new general manager expressed hostility toward the accommodation and required the employee to work on Sundays. When the employee refused to do so, he was fired.
IHOP’s alleged conduct, the EEOC contends, violates Title VII of the Civil Rights Act of 1964, which provides for religious accommodations in the workplace and protects individuals from religious discrimination and retaliation. The agency’s suit, which seeks compensation and injunctive relief, was filed after first attempting to reach a pre-litigation settlement through its voluntary conciliation process.
August 30, 2023 – Environment
Fish & Wildlife Faces Lawsuit Over Pesticide Use in ‘Critical Habitats’
The Center for Biological Diversity has sued the U.S. Fish & Wildlife Service alleging the agency has engaged in over four years of foot-dragging on a petition to regulate the use of pesticides in protected habitats.
According to the complaint filed in federal court in Tucson, Ariz., the center sent the petition to Fish & Wildlife in January 2019, asking that it abide by the Endangered Species Act and prohibit all use of pesticides in critical habitats unless it has previously consulted with the Environmental Protection Agency to assess the pesticides’ impact on listed species, or if the pesticides are used to control invasive species or promote human health and safety. Four years later, the complaint says, the agency has not responded.
The center claims in its lawsuit that recovery plans for more than 250 threatened and endangered species are jeopardized by pesticides. In just the past six years, the center says, the rusty patched bumblebee and the California spotted owl were added to the endangered species list because of the effect of pesticides on their habitats. The center says that Fish & Wildlife has completed a biological evaluation for only one of the 12 active ingredients in pesticides that harm a majority of the roughly 800 critical habitats in the country.
August 29, 2023 – Antitrust
Energizer Holdings, Walmart Sued for Conspiracy to Raise Disposable Battery Prices
In San Francisco federal court, Energizer Holdings Inc. and Walmart Inc. face a proposed class action accusing them of conspiring to raise the prices of disposable batteries.
According to the complaint, Energizer agreed “under pressure from Walmart” to inflate wholesale battery prices for other retailers starting around January 2018, and require those retailers not to undercut Walmart on price.
Walmart rivals risked higher wholesale prices or being cut off by Energizer, the largest U.S. disposable battery maker, if they charged less at checkout than Walmart, the complaint alleges, adding that the scheme resulted in higher prices from Energizer and Duracell, which together control 85% of the disposable battery market.
August 28, 2028 – Securities
Investors Sue Adidas over Broken Partnership With Kanye West
Adidas has been accused by investors of knowing about offensive remarks and harmful behavior from Ye, the rapper formerly known as Kanye West, years before ending its partnership with him.
The proposed class action, filed in federal court in Portland, Ore., claims that Adidas was aware for some time of the potential harm that Ye’s problematic behavior could cause the company — pointing to earlier incidents, including 2018 comments where Ye suggested slavery was a “choice” and reports of Ye making antisemitic statements in front of Adidas staff.
The lawsuit — which represents people who bought Adidas securities between May 3, 2018, and February 21, 2023 — also alleges that the company failed to take precautionary measures to limit financial losses if the Ye partnership were to end. Ye is not listed as a defendant in the suit.
August 24, 2023 – Consumer Fraud
Lowe’s Accused of ‘Sneaking’ Additional ‘Required’ Items Into Online Carts
Lowe’s Companies Inc. has been hit with a proposed class action alleging that the company deceptively sneaks a purportedly “required” item into consumers’ online cart for certain purchases and forces them to affirmatively remove it.
According to the complaint filed in federal court in Alexandria, Va., Lowe’s utilizes this so-called “sneak into basket” tactic that plaintiff calls “an aggressive and deceptive form of cross-selling,” relying on either the inaction of a consumer to remove an additional item from their shopping cart or the buyer simply not noticing that another product has been added to their purchase before the transaction is complete.
As an example, the complaint says, a consumer who buys through Lowe’s website a General Electric-brand front-load washing machine will see the letter “i” within a circle, the universal “more information” symbol. Next to this symbol is stated, “These items are necessary for your appliance to function properly,” with the item at issue being a stainless-steel washing machine connector hose costing roughly $35. Plaintiff contends in her suit that not only does Lowe’s website force a customer to remove this purportedly required item, but the washing machine in fact already comes with this water hose, “such that it is not required to spend almost $35 extra beyond the roughly $1,000 washer.”
August 23, 2023 – Product Liability
Tesla Automatic Software Updates Said to Cut Battery Capacity, Driving Range
In San Francisco federal court, Tesla faces a proposed class action alleging that automatic software updates depleted vehicle battery life and slashed the driving range by at least 20 percent.
The complaint states that no reasonable consumer would expect Tesla itself to “deliberately and significantly” interfere with the performance of Model S and Model X vehicles by way of automated software updates. “The depletion of batteries following software updates is completely inconsistent with Tesla’s representations about battery life. In fact, Tesla represents that its batteries will outlast the vehicles themselves,” the complaint says.
Plaintiffs claim in their lawsuit that despite these assurances, many Tesla drivers have been compelled to pay a third party hundreds of dollars to reverse the software update so as to “continue to experience the battery performance they had” before the update. Other drivers, plaintiffs say, have had their Tesla batteries irreparably damaged from the software update and have had to purchase new batteries at a cost of up to $15,000 per battery.
August 22, 2023 – Privacy
L’Oréal Accused of Sending Spam Texts, Ignoring ‘Opt Out’ Requests
L’Oréal faces a proposed class action filed by a consumer who claims to have received texts from the company despite requesting “many times” to opt out of receiving messages
Filed in federal court in Phoenix, Ariz., the complaint alleges that by continuing to send promotional texts to the plaintiff and other individuals after they have opted out, L’Oréal has violated the Telephone Consumer Protection Act, which was established to protect consumers from unwanted sales calls or text messages.
L’Oréal, the complaint says, has failed to maintain an internal do-not-call list, establish a written policy with regard to telemarketing, and provide adequate training to staff in marketing positions. Plaintiff in her lawsuit claims that even after replying “stop” numerous times, defendant continued to send texts to her cell phone. This “illegal conduct,” plaintiff says, has caused the invasion of privacy and “disruption of the daily life of thousands of individuals.”
August 21, 2023 – Constitution
Tennessee Transgender Care Ban Challenged as Unconstitutional
LGBTQ rights advocates have sued the state of Tennessee in Nashville federal court, seeking to block the state’s new ban on gender-affirming care for transgender youth.
The recently enacted Tennessee law, according to the complaint, bans “medically necessary and potentially lifesaving healthcare” to transgender adolescents. The law was passed, the complaint says, “over the sustained and robust opposition of medical experts in Tennessee and across the country,” and if it is allowed to go into effect, will cause “severe and irreparable harm.”
In their suit, plaintiffs claim the transgender care ban violates the Equal Protection Clause of the Fourteenth Amendment because it discriminates on the basis of sex and transgender status by prohibiting certain medical treatments only for transgender patients, and it also infringes on the fundamental rights of parents guaranteed by the Due Process Clause of the Fourteenth Amendment by preventing parents from seeking appropriate medical care for their children.
August 17, 2023 – Environment
Lockheed Martin Accused of Improper Storage of Toxins at Weapons Plant
A lawsuit filed against Lockheed Martin in federal court in Orlando, Fla., claims that the company’s mismanagement of toxins at its Florida weapons manufacturing plant has caused people living or working in the area to suffer debilitating diseases caused by exposure to the contaminants.
Lockheed Martin’s “dangerous failures” at its Orlando weapons facility occurred over decades, according to the complaint. The facility, which manufactures weaponry and associated components, utilizes chemicals that are “among the most toxic to human health on earth,” and requires the utmost care and handling, the complaint says.
However, instead of carefully managing these toxins from the moment they arrived at the facility and ensuring they were properly disposed of, Lockheed Martin stored toxins in leaking storage tanks, collected and transported waste materials in leaking underground piping systems, and dumped thousands of tons of highly toxic waste sludges into trenches dug throughout the facility, plaintiffs allege in their suit, saying that “Lockheed Martin’s stunning indifference to environmental protection and human health resulted in staggering levels of contamination.”
August 16, 2023 – Securities
CFTC Accuses Fisher Capital of Investment Fraud Targeting Older Adults
The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action in Brooklyn federal court against Fisher Capital, alleging that it perpetrated a precious metals investment fraud targeting older adults.
The Los Angeles-based dealer of precious metals, the CFTC complaint says, defrauded “hundreds of elderly persons into investing more than $30 million in gold and silver coins worth far less than the defendants led victims to believe.”
The CFTC says in its suit that Fisher Capital used high-pressure sales pitches over the telephone to instill fear about the safety of traditional retirement and savings accounts, and deceived victims into purchasing grossly overpriced precious metals. The agency seeks the return of “ill-gotten gains” and permanent injunctions against further violations of CFTC regulations.
August 15, 2023 – Truth in Lending
Bank of America Faces Lawsuit Over Allegedly Illegal Interest Rate Charges
A lawsuit filed in San Francisco federal court claims Bank of America has since March 2022 unlawfully imposed excessive interest rates on cardholders.
Plaintiff says in his suit that in direct violation of the federal Truth in Lending Act (TILA), Bank of America has repeatedly raised credit card interest rates without providing consumers 45 days’ notice and retroactively applied the increased rates to cardholders’ existing balances. According to the complaint, the TILA precludes credit card companies such as Bank of America from raising interest rates without advanced notice and only allows rate increases to be applied to future transactions rather than to consumers’ existing, or “protected,” balances.
The complaint says that the prime rate — which defendant uses to directly calculate the interest rates cardholders are charged — has “more than doubled since March 2022 and is now at 8.25%, the highest in more than a decade.” Plaintiff argues that defendant has used the rising prime rate as an excuse to illegally assess hefty interest rates on credit cards. “These unlawful interest rate increases,” plaintiff alleges, “has generated untold millions for Bank of America, which has so far imposed ten interest rate increases on its cardholders over the period.”
August 14, 2023 – Labor & Employment
EEOC Sues Pacific Culinary and CB Foods for Sexual Harassment
Pacific Culinary Group Inc. and CB Foods Inc., two companies involved in the production and sale of Asian food products, violated federal law when they failed to prevent and correct ongoing sexual harassment and retaliation, the U.S. Equal Employment Opportunity Commission alleges in a lawsuit filed in Los Angeles federal court.
Since at least 2020, the suit says, Pacific Culinary and CB Foods subjected both female and male workers at their Monterey Park, Calif., location to ongoing verbal and physical sexual harassment. This harassment allegedly included frequent and offensive unwanted groping and touching of their bodies, unwelcome sexual advances and comments about their appearance, and inappropriate questions about employees’ sexual preferences and sexual activities.
Despite having received multiple complaints of the sexual harassment, the companies failed to take prompt and effective action, and the sexual harassment continued, the EEOC says. The agency also claims that when employees reported the harassment, they were retaliated against with further harassment, including termination. The unlawful employment practices resulted in intolerable working conditions, compelling some of the workers to quit, the EEOC says, arguing that defendants’ actions are in violation Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of sex and retaliation.
August 10, 2023 – Environment
Feds Sued Over Lead Ammunition in West Virginia Wildlife Reserve
The National Wildlife Association and the Sierra Club have sued the Biden administration over its decision last year not to restrict the use of fishing tackle and lead ammunition at a national wildlife refuge in West Virginia.
In bringing their lawsuit in federal court in the District of Columbia, the groups cited risks to bald eagles and other vulnerable species. The groups claim in their suit that the U.S. Fish & Wildlife Service violated the National Wildlife Refuge System Improvement Act when it withdrew a plan that would have phased out certain hunting and fishing gear in the Canaan Valley National Wildlife Refuge.
The agency’s decision in September 2022, according to the complaint, followed objections to the plan from the state of West Virginia, which said the restrictions would be too costly for local hunters. The Fish & Wildlife agency “abdicated its statutory duty to safeguard wildlife” and granted an “unlawful state veto” over federal conservation policy, the complaint alleges.
August 9, 2023 – Securities
SEC Charges Crypto Asset Trading Platform Bittrex for Operating an Unregistered Exchange
The U.S. Securities & Exchange Commission has charged crypto asset trading platform Bittrex Inc. and its co-founder and former CEO William Shihara with operating an unregistered national securities exchange, broker, and clearing agency. The civil action was filed in Seattle federal court.
Since at least 2014, Bittrex has held itself out as a platform that facilitated buying and selling of crypto assets that the SEC’s complaint alleges were offered and sold as securities. From 2017 through 2022, the complaint says, Bittrex earned at least $1.3 billion in revenues from, among other things, transaction fees from investors, while servicing them as a broker, exchange, and clearing agency without registering any of these activities with the Commission.
The complaint further contends that Bittrex and Shihara, who was the company’s CEO from 2014 to 2019, coordinated with issuers who sought to have their crypto asset made available for trading on Bittrex’s platform to first delete from public channels certain “problematic statements” that Shihara believed would lead a regulator, such as the SEC, to investigate the crypto asset as the offering of a security. For example, the complaint says, in an effort to avoid regulatory scrutiny, before Bittrex would make an asset available on its platform, Bittrex and Shihara instructed issuer-applicants to delete statements related to “price prediction[s],” “expectation of profit,” and other “investment-related terms.”
August 8, 2023 – Cybersecurity
Yum! Brands Data Breach Said to Impact Scores of Employees, Job Applicants
Fast-food conglomerate Yum! Brands, which operates the brands KFC, Pizza Hut, Taco Bel, and The Habit Burger Grill, faces a proposed class action filed in federal court in Louisville, Ky, over a January 2023 data breach that allegedly compromised the sensitive information of potentially hundreds of thousands of current and former employees and job applicants.
Yum! Brands, the complaint says, is purportedly the world’s largest restaurant company, with roughly 1,500 franchisees running more than 55,000 restaurants across 155 countries and territories. According to the complaint, the incident, sparked by a ransomware attack, was a direct result of Yum! Brands’ failure to implement adequate cybersecurity measures and its storage of sensitive data “in a reckless manner.”
Plaintiff argues in her lawsuit that the threat of a data breach was a “known risk” to Yum! Brands. “Had Defendant properly monitored its computer networks, it would have discovered the intrusion promptly, and potentially been able to stop the intrusion or mitigate the injuries to Plaintiff(s) and the Class.”
August 7, 2023 – Product Liability
Mattel Accused in Rock ‘n Play Infant Sleeper Death
Toy company Mattel faces a wrongful death lawsuit from the family of a 5-month-old girl who died from positional asphyxia in an allegedly defective Fisher-Price Rock ‘n Play infant sleeper. (Fisher-Price is a wholly owned subsidiary of Mattel.)
According to the complaint filed in federal court in Pensacola, Fla., Mattel manufactured and marketed the Rock ‘n Play infant sleeper as a product that was suitable for safe infant sleep, including prolonged and overnight sleep. But in fact, the complaint says, the product is “unsuitable for infant sleep, dangerous, and deadly.”
Plaintiffs say in their suit that the Rock ‘n-Play was recalled twice by the Consumer Product Safety Commission and over 60 deaths were reported. However, despite knowing that babies were dying, defendant “engaged in a negligent, lackluster, and perfunctory effort to recall the products and notify the public of the danger,” plaintiffs claim. And because of the “negligent and reckless manner in which the recall was conducted,” additional deaths occurred, including that of the subject of this wrongful death action.
August 4, 2023 – Labor & Employment
Company Sued by Father Over ‘Baby Bonding’ Leave Policy
Steel products company Gerdau Macsteel Inc. treated its non-union employee birth fathers unequally by denying them the same paid parental leave provided to non-union birth mothers, alleges a proposed class action filed in Detroit federal court.
Plaintiff, a former non-union research and development technical specialist at the company’s mill in Monroe, Mich., says he requested parental leave in November 2021 when his wife gave birth to their baby, but he was only granted 30 days of unpaid paternity leave.
In his lawsuit, plaintiff says his 30-days unpaid leave contrasts with non-union birth mothers being awarded six weeks of paid parental leave. Defendant limited its entitlement to six weeks of paid parental leave “for such things as baby bonding and/or dealing with baby medical matters” to “the employee who gave birth,” plaintiff says. Accordingly, he was ineligible to take paid parental leave on the basis of his sex, a stereotype that violates Title VII of the Civil Rights Act of 1964, plaintiff argues.
August 3, 2023 – Environment
EPA Sued Over Alleged Pollution at Oil Refineries and Plastic Plants
Environmental groups have filed suit against the U.S. Environmental Protection Agency over pollution guidelines it issued earlier this year, claiming the agency failed to update limits on the release of toxic chemicals in wastewater from oil refineries, plastic manufacturing plants, and other industrial facilities.
In their petition to the 9th U.S. Circuit Court of Appeals in San Francisco, the groups allege that the EPA violated provisions of the Clean Water Act that require it to tighten pollution controls every five years if new technology is available. The petition was filed by a group that includes the Center for Biological Diversity, Clean Water Action, Food & Water Watch, and other environmental organizations.
In some instances, the groups say, technology requirements have not been updated for nearly 40 years for industrial plants that release chemicals like cyanide, benzene, mercury, and chlorides through billions of gallons of wastewater. Plaintiffs are seeking an order forcing the agency to revisit the regulations, including by analyzing whether new technologies are available that could cut pollution discharges at over 1,000 facilities across the country.
August 2, 2023 – Consumer Fraud
Best Buy ‘Price Match Guarantee’ Accused of Being Bait-and-Switch Tactic
A proposed class action filed in Manhattan federal court alleges Best Buy has failed to honor its “Price Match Guarantee” when a consumer requests that it match a certain competitor’s lower price.
Best Buy, the complaint claims, maintains an “unstated policy” of refusing to satisfy its price-match guarantee and instead uses the assurance as a way to bait and switch consumers into buying products from Best Buy. “In other words, [Best Buy] is not a magnanimous retail seller doing right by its customers as a result of matching designated online and/or local competitor’s prices; and instead, [Best Buy] is just trying to make the proverbial extra buck through specious trade practices,” the complaint says.
Plaintiff states in his lawsuit that in early February 2023 he saw an Apple iPad Pro listed by another retailer for $555.99 and that the same product was priced at $1,099 by Best Buy. But when he contacted Best Buy to initiate a price match under the company’s guarantee, plaintiff says he was told that Best Buy would not honor its “Price Match Guarantee” for the Apple product.
August 1, 2023 – Privacy
Tesla Faces Lawsuit Over Alleged Privacy Intrusion
In San Francisco federal court, a Tesla owner has filed a proposed class action against the company accusing it of violating the privacy of customers.
Plaintiff, who owns a Tesla Model Y, claims in his suit that groups of Tesla employees privately shared via an internal messaging system sometimes “highly invasive videos and images” recorded by customers’ car cameras between 2019 and 2022. Employees were able to access the images and videos for their “tasteless and tortious entertainment” and “the humiliation of those surreptitiously recorded,” plaintiff says.
The complaint says Tesla’s conduct is “particularly egregious” and “highly offensive” and asks the court to enjoin Tesla from engaging in its wrongful behavior. “That such videos and images were made available to Tesla employees to view and share, at will, and for improper purposes, affects each and every person with a Tesla vehicle, their families, passengers, and even guests in their homes,” the complaint says.