February 28, 2023 – Constitution
New Jersey Faces Suit Over ‘Public Nuisance’ Law Targeting Gun Companies
A gun industry trade association has filed a lawsuit in federal court in Trenton, N.J., seeking to block a recently passed state law authorizing the state’s attorney general to sue gun manufacturers and sellers over gun violence.
Plaintiff, the National Shooting Sports Foundation (NSSF), calls the law “breathtaking in scope” and says that it illegally “allows judges and juries to impose liability based on truthful, non-misleading speech about lawful products,” including on companies outside of New Jersey. According to the complaint, the law, passed in July 2022, allows the state attorney general to sue gun manufacturers and sellers that “recklessly” contribute to a “public nuisance” that threatens the health and safety of citizens of the state.
However, the complaint notes, lawsuits seeking to hold the gun industry liable for gun violence have been limited by a 2005 federal law called the Protection of Lawful Commerce in Arms Act, which largely shields companies from liability stemming from lawful gun sales. NSSF says in its suit that New Jersey’s law is an attempted end-run around that law and constitutes a violation of the U.S. Constitution’s 1st Amendment by potentially allowing liability for truthful advertisements and 2nd Amendment by burdening the right to bear arms.
February 27, 2023 – Consumer Fraud
Kimberly-Clark Sued Over ‘Greenwashed’ Huggies Baby Wipes
A proposed class action filed in Los Angeles federal court alleges that Kimberly-Clark Corp. promotes its Huggies baby wipes as “natural” and “plant-based,” when in fact they contain numerous artificial ingredients.
“Defendant has instead chosen to “greenwash” [make a false claim of environmental impact] the Products and market them through deceptive labeling and advertising to convince consumers the Products are natural and plant-based when, in reality, they contain numerous synthetic, artificial, and highly processed ingredients,” plaintiff contends.
Customers pay a premium for products labeled as “all-natural” and “plant-based,” as customers believe these products to be safer and healthier than those containing synthetic ingredients, according to the complaint. To allegedly tap into this market, the complaint says, Kimberly-Clark produces the Huggies natural care line, which includes the two wet wipes in question: Huggies Natural Care Baby Wipes (Refreshing) and (Sensitive).
February 25, 2023 – Intellectual Property
Boston Dynamics Alleges Lost Profits on ‘Robotic-Dog’ Patents
In federal court in Wilmington, Del., Boston Dynamics Inc. claims that two models of “robotic dogs” made by Ghost Robotics Corp. infringe as many as seven patents for “core technology” used in Boston Dynamics’ four- and two-legged robots such as “Spot,” designed for industrial and commercial uses.
According to the complaint, at the time of its introduction, the Spot robot was the “quietest and most capable robot Boston Dynamics had ever built,” and it was honored by numerous innovation awards.
The lawsuit, plaintiff says, focuses on Ghost Robotics’ quadrupedal unmanned ground vehicles, or Q-UGVs — specifically its Vision 60 and Spirit 40 products. Boston Dynamics claims the Q-UGVs infringe its patents, including ones related to systems and methods for robots to self-right and to negotiate stairs.
February 24, 2023 – Securities
SEC Accuses Crypto Promoters of $295M ‘Ponzi’ Scheme
The U.S. Securities & Exchange Commission has filed a civil action in Seattle federal court against four individuals for their role in Trade Coin Club, a “fraudulent crypto Ponzi scheme” that allegedly raised nearly $300 million in bitcoin from over 100,000 investors.
The SEC alleges in its lawsuit that defendants made numerous materially false and misleading statements to lure investors to send their bitcoin to Trade Coin Club, which defendants falsely said was earning profits from an automated crypto asset trading program or “bot.” Defendants claimed that the trading bot made “millions of microtransactions” every second and had a “stop loss” feature that would assure minimum daily trading profits for investors.
However, the SEC says, blockchain analysis reveals that, in reality, Trade Coin Club “operated in a manner consistent with a Ponzi scheme.” Specifically, the group had no external source of funding for investor withdrawals or redemptions, such as profits from trading. Instead, the SEC says, investor withdrawals were paid solely with new investor deposits.
February 23, 2023 – Antitrust
Spirit Customers Seek to Block Airline Merger With JetBlue
JetBlue’s proposed acquisition of Spirit Airlines would substantially lessen competition or “tend to create a monopoly” in the passenger airline industry, alleges a lawsuit filed in San Francisco federal court.
Spirit customers claim in their suit that JetBlue made an unsolicited tender offer to purchase Spirit in order to eliminate that competition. “JetBlue would gain a majority market share on more than a dozen routes where neither it nor Spirit previously dominated, and it would eliminate the price-cutting by Spirit,” plaintiffs argue.
Spirit’s board, according to the complaint, had initially recognized that a merger would “substantially raise fares” and “have lasting negative impacts on customers.” JetBlue, however, responded by choosing to “sweeten the deal” by offering to pay $400 million to shareholders, the complaint says. “In the face of Spirit’s assertions of numerous anti-competitive conduct and substantive and unequivocable lessening of, and probable destroying of, competition, JetBlue simply offered more money to Spirit.”
February 22, 2023 – Product Liability
Lawsuit Filed Over Benzene in Dove, Suave, TRESemmé and Other Dry Shampoo Products
Unilever Inc. has been hit with a proposed class action over dry shampoo recalled late in Oct 2022, indicating that multiple Dove, Nexxus, Suave, TIGI and TRESemmé dry shampoo aerosol products were sold with high levels of benzene, which is a cancer-causing chemical.
Plaintiff, in his suit filed in federal court in the District of New Jersey, alleges that Unilever knew or should have known its dry shampoo products contained benzene, yet it continued to market the aerosol spray cans as safe. Benzene, according to the complaint, is an industrial chemical that has long been linked to fatal forms of leukemia and other cancers.
Since the dry shampoo is applied directly to the hair and scalp, the complaint says, health officials warn that benzene could enter an individual’s bloodstream through inhalation, orally, and through the skin, which over time could result in adverse health effects from exposure to the chemical. Plaintiff says Unilever was made aware of the risk of benzene contamination in its aerosol dry shampoo products since Nov 2021, after the online pharmacy Valisure released a report finding elevated levels of benzene in Unilever’s Suave antiperspirant products, which resulted in a massive recall and multiple Suave deodorant lawsuits.
February 21, 2023 – Constitution
Electric Car Co. Challenges ‘Irrational ‘Texas Law That Prevents Direct Selling to Customers
Lucid Motors, a manufacturer of luxury electric cars, is suing the state of Texas in Austin federal court over a law that has barred the company from having dealerships in the state, the company claiming the law hurts competition and violates the Due Process and Equal Protection clauses of the Constitution.
As a new entrant into the automotive market, according to the complaint, Lucid recognized that the only feasible way to get its vehicles to consumers was by selling them directly — without a middleman. “And it knew,” the complaint says, “that the direct-sales model was the only way to stay true to its values of treating customers with respect and providing unsurpassed customer service, ruling out the kind of high-pressure, commission-driven sales tactics commonly associated with the traditional third-party-dealership model.”
While many states have welcomed Lucid, the complaint says, Texas has barred the company from obtaining a license to operate a dealership in the state. The state’s position is that the law protects traditional dealers against competition by the manufacturers whose vehicles they sell, but it also prohibits manufacturers without independent dealers from operating their own dealerships. “As applied to Lucid,” the complaint argues, “this prohibition is irrational in the extreme: it hurts competition, reduces consumer choice, and drives up costs and inconvenience, with no countervailing benefit whatsoever.”
February 20, 2023 – Product Liability
Mercedes-Benz Models 2010-2022 Plagued by Rear Subframe Rust Defect, Lawsuit Says
A proposed class action filed in Atlanta federal court alleges a number of 2010-2022 model year Mercedes-Benz vehicles have subframes that can prematurely rust or corrode “from the inside out,” leaving the subframe “structurally unstable and prone to failure.”
According to the complaint, the subframe attaches to a vehicle’s frame/chassis on the back undercarriage and provides stiff mounting points for the car’s suspension and driveline components. The rear subframe, the complaint says, must be “stiff and resilient” as it’s crucial to securing a vehicle’s rear suspension and rear wheels.
Plaintiffs in their suit say that a subframe defect allows water and salt to collect on the interior of the frame and corrode it from the inside out, making the damage difficult for a mechanic to detect during a routine inspection. The subframes, which should last the life of a vehicle without replacement, may have also been treated with an inadequate type or amount of rust coating, plaintiffs claim, adding that the defective subframes “pose a material safety risk, and therefore render the vehicles unfit for their intended purpose.”
February 17, 2023 – Intellectual Property
Apple Challenges Patent Office Rejection of ‘Smart Keyboard’ Trademark
Apple Inc. says it is entitled to a federal trademark for its “Smart Keyboard” iPad accessory and the U.S. Patent & Trademark Office (PTO) was wrong to deny Apple’s application.
In federal court in Alexandria, Va., Apple claims the PTO erred when it found that “Smart Keyboard” was a generic phrase rather than a distinctive name that customers would associate with Apple’s accessory. According to the complaint, Apple introduced the Smart Keyboard, an iPad cover that also functions as a keyboard and stand, in 2015. The company applied for a federal trademark that included the phrase “Smart Keyboard” later that year.
The PTO rejected Apple’s application in 2018, the complaint says, and the office’s Trademark Trial & Appeal Board upheld the decision last year, ruling that “Smart Keyboard” was a generic term for “technologically advanced keyboards” and could not be a registered trademark. But Apple says in its suit that the term “Smart Keyboard” had rarely been used to refer to anything other than Apple’s accessory. “This strongly indicates that consumers do not understand or use ‘smart keyboard’ as a generic ‘everyday’ term,” Apple argues. “If it did, it would be used widely in the industry.”
February 16, 2023 – Securities
Netflix Shareholder Says Company Failed to Warn About Revenue Decline
Netflix executives have been accused of failing to warn about declining revenue and slowing subscriber growth until after the executives sold their stock in the company, in a shareholder derivative suit filed in Santa Clara (Calif.) superior court.
According to the complaint, Netflix portrayed itself to investors as a growth stock similar to Google or Facebook — “a company that will add tens of millions of customers every year as people transition from pay TV to internet video.” For about a decade, the complaint says, Netflix had delivered on that promise, growing year after year in route to more than 200 million subscribers.
However, plaintiff says, by 2022 this growth had markedly declined, and investors were not informed of this decline and its adverse effect on Netflix’s financial condition. Netflix company executives knew that the company’s stock was trading at an artificially inflated price, plaintiff claims, and, “utilizing their knowledge of facts not publicly known, sold significant amounts of their personally held shares of Netflix stock,” thereby breaching their fiduciary duties to the company and its shareholders.
February 15, 2023 – Intellectual Property
Apple Challenges Patent Office Rejection of ‘Smart Keyboard’ Trademark
Apple Inc. says it is entitled to a federal trademark for its “Smart Keyboard” iPad accessory and the U.S. Patent & Trademark Office (PTO) was wrong to deny Apple’s application.
In federal court in Alexandria, Va., Apple claims the PTO erred when it found that “Smart Keyboard” was a generic phrase rather than a distinctive name that customers would associate with Apple’s accessory. According to the complaint, Apple introduced the Smart Keyboard, an iPad cover that also functions as a keyboard and stand, in 2015. The company applied for a federal trademark that included the phrase “Smart Keyboard” later that year.
The PTO rejected Apple’s application in 2018, the complaint says, and the office’s Trademark Trial & Appeal Board upheld the decision last year, ruling that “Smart Keyboard” was a generic term for “technologically advanced keyboards” and could not be a registered trademark. But Apple says in its suit that the term “Smart Keyboard” had rarely been used to refer to anything other than Apple’s accessory. “This strongly indicates that consumers do not understand or use ‘smart keyboard’ as a generic ‘everyday’ term,” Apple argues. “If it did, it would be used widely in the industry.”
February 14, 2023 – Consumer Fraud
Lidocaine Patch Lawsuit Against Rite Aid Alleges False Claims of ‘Maximum Strength’ Pain Relief
Rite-Aid Corp. has been hit with a proposed class action over Lidocaine pain relief patches that were allegedly falsely marketed as “Maximum Strength,” in San Francisco federal court.
In the suit, plaintiff is seeking damages on behalf of himself and all others who have paid a premium for Rite Aid Maximum Strength Pain Relief Lidocaine Patch products, when in fact there were stronger-dosed pain relief patches commercially available, plaintiff contends.
Lidocaine patches, according to the complaint, are a popular household pain management option, providing relief for individuals with nerve pain. It is estimated, the complaint says, that millions of Americans suffer from multiple types of neuropathic pain, and that they frequently seek over-the-counter remedies for relief. Rite Aid takes advantage of consumers’ lack of scientific knowledge on how to determine whether a Lidocaine pain patch actually contains the maximum strength, plaintiff says, noting that Rite Aid Lidocaine patches contain only 4% lidocaine, while other options contain 5% lidocaine.
February 13, 2023 – Product Liability
Clorox Faces Lawsuit Over Alleged Pine-Sol Infection Risks
A proposed class action has been filed against Clorox Corp. over its recent Pine-Sol cleaning products recall, seeking damages on behalf of consumers who were exposed to an alleged dangerous bacteria in the products, which may cause severe and potentially life-threatening infections.
The suit, filed in federal court in Brooklyn, N.Y., asks the court to establish a nationwide class for all consumers who purchased recalled Clorox Pine Sol products with the expectation they were safe and free from harmful bacteria. The recall, according to the complaint, was first announced on October 25, 2022, impacting approximately 37 million bottles of scented cleaners that may contain a harmful bacteria that can cause serious side effects, including infections in the blood and lungs and other parts of the body.
The recall, the complaint says, included Scented Muti-surface Cleaners in Lavender Clean, Sparkling Wave, and Lemon Fresh scents; CloroxPro Pine-Sol All Purpose Cleaners in Lavender Clean, Sparkling Wave, Lemon Fresh and Orange Energy scents, and Clorox Professional Pine-Sol Lemon fresh cleaners.
February 11, 2023 – Constitution
Lawsuit Challenges City’s Ban on Feeding Homeless People in Parks
A woman who was arrested for feeding homeless people in a city park is suing the city over its ordinance that regulates food-sharing events in public spaces.
Plaintiff, who is 78 years old, became the first person arrested under the Bullhead City (Ariz.) ordinance in March 2022 for distributing prepared food from a van at Bullhead Community Park, according to the complaint filed in federal court in Prescott, Ariz. Criminal charges against plaintiff were eventually dropped, the complaint says, but she is seeking an injunction to stop the city from enforcing the ordinance that took effect in May 2021.
Plaintiff claims in her lawsuit that the prohibition violates her right to engage in charitable acts and to share food with the needy, which, she says, is protected by the Due Process and Privileges and Immunities clauses of the Fourteenth Amendment to the U.S. Constitution. Further, plaintiff argues, the ordinance creates disparate treatment between people sharing food for charitable purposes and people sharing food for non-charitable purposes and this violates her right to equal protection as guaranteed by the Equal Protection Clause of the Fourteenth Amendment.
February 10, 2023 – Securities
SEC Sues Hydrogen Technology Corp. for Market Manipulation of Crypto Asset Securities
The U.S. Securities & Exchange Commission has announced charges against the Hydrogen Technology Corporation, its former CEO and the CEO of Moonwalkers Trading Limited, a self-described “market making” firm, for their roles in effectuating the unregistered offers and sales of crypto asset securities called “Hydro” and for perpetrating a scheme to manipulate the trading volume and price of those securities, which yielded more than $2 million for Hydrogen.
Filed in Manhattan federal court, the SEC’s complaint alleges that starting in January 2018, Hydrogen, a New York-based financial technology company, created its Hydro token and then publicly distributed the token through various methods: an “airdrop,” which is essentially giving away Hydro to the public; bounty programs, which paid the token to individuals in exchange for promoting it; employee compensation; and direct sales on crypto asset trading platforms.
The complaint further alleges that, after distributing the token in those ways, Hydrogen hired Moonwalkers, a South Africa-based firm, in October 2018 to create the false appearance of robust market activity for Hydro through the use of its customized trading software or “bot” and then selling Hydro into that artificially inflated market for profit on Hydrogen’s behalf. Hydrogen allegedly reaped profits of more than $2 million as a result of defendants’ conduct, in violation of the antifraud provisions of the Securities Exchange Act.
February 9, 2023 – Disability Act
Class Action Alleges Paula Deen Website Not Fully Accessible to Disabled Customers
Plaintiff, who is legally deaf, has filed a proposed class action in Manhattan federal court against Paula Deen Ventures — the owner and operator of multiple restaurants and cooking TV shows — alleging the company does not provide equal access to deaf and hard-of-hearing individuals on its websites, in violation of the Americans with Disability Act.
According to the complaint, defendant has chosen to post videos on its website, pauladeen.com, without closed captioning, or with limited closed captioning, that renders the videos inaccessible to deaf and hard-of-hearing individuals. “Without closed captioning, deaf and hard-of-hearing people cannot comprehend the audio portion of the videos on the Website,” the complaint states.
Plaintiff says in her lawsuit that she was interested in learning about the chef Paula Deen and her Southern style of cooking. However, despite visiting the Paula Deen website on numerous occasions to watch videos from defendant’s TV shows, plaintiff says she was unable to fully enjoy the content because of the lack of closed captioning. This lack, plaintiff contends, “means that deaf and hard-of-hearing people are excluded from the rapidly expanding Internet media industry and from independently accessing videos posted on the Website.”
February 8, 2023 – Antitrust
Technology Co. RealPage Accused of Operating Real Estate ‘Cartel’
RealPage Inc., a technology company specializing in property management software, permitted landlords to use its software to operate a cartel that artificially inflated the prices of multifamily residential real estate to above-competitive levels, according to a proposed class action filed in San Diego federal court.
The plaintiffs, five California residents, filed their lawsuit against RealPage and nine top rental management firms, alleging violations of the Sherman Act. Prior to 2016, plaintiffs say, the country’s largest lessors priced their apartments based on how best to compete with other lessors and to keep apartments full.
However, plaintiffs claim in their suit, beginning in 2016 and possibly earlier, RealPage and the apartment managers using its software have operated a cartel, setting prices using RealPage’s algorithm and leaving units vacant as needed to avoid oversupply. RealPage openly boasts that its services balance supply and demand to maximize property managers’ revenue growth, plaintiffs contend. “And that is precisely what RealPage has done, facilitating an agreement among participating Lessors not to compete on price and allowing Lessors to coordinate both pricing and supply through two mutually reinforcing mechanisms in furtherance of their agreed aim of suppressing price competition for multifamily residential real estate leases.”
February 7, 2023 – Defamation
Grandmaster Chess Player Sues Over Cheating Allegations
In St. Louis federal court, a 19-year-old chess grandmaster, Hans Niemann, alleges that a rival chess player and others destroyed his career with false accusations of cheating.
Niemann filed his lawsuit against chess world champion Magnus Carlsen who, according to the complaint, has suggested Niemann cheated during his upset win over Carlsen at the Sinquefield Cup tournament in St. Louis. Niemann is alleging defamation and seeking damages from Carlsen and online chess site Chess.com.
“Despite the falsity of the Defendants’ accusations,” the complaint says, “Defendants’ malicious defamation and unlawful collusion has, by design, destroyed Niemann’s remarkable career in its prime and ruined his life.” Niemann claims in his suit that tournaments have banned him, matches have been canceled and reputable chess schools won’t hire him over the false accusations.
February 6, 2023 – Constitution
Lawsuit Challenges Illinois Ban on Semiautomatic Weapons
Illinois’ recent ban on semiautomatic weapons outlaws “ubiquitous” firearms in defiance of the U.S. Constitution’s Second Amendment, according to a lawsuit filed in federal court in Benton, Ill.
The lead plaintiffs in the suit are joined by two southern Illinois gun dealers and shooting range operators, as well as a Connecticut-based shooting sports trade association. Plaintiffs argue that the U.S. Supreme Court’s landmark 2008 Heller decision refuses to let stand any restrictions on “weapons that are in common use” unless — another Court ruling last summer found — there is evidence of an “enduring American tradition” of restriction.
The Illinois law “takes the radical step of banning nearly every modern semiautomatic rifle — the single-most popular type of rifle in the country, possessed by Americans in the tens of millions,” the complaint says, noting that the 24 million AR-15 semiautomatic rifles in U.S. circulation far outnumber the 16 million Ford F-150 trucks, the nation’s top-selling vehicle.
February 3, 2023 – Product Liability
L’Oreal’s Hair Straighteners Said to Cause Woman’s Cancer
L’Oreal SA has been sued in Chicago federal court by a woman who alleges she developed uterine cancer as a result of using the cosmetic company’s hair-straightening products.
The plaintiff, who is Black, says in her lawsuit that she was diagnosed with uterine cancer in 2018, after using L’Oreal’s products since about 2000, when she was 10. She is asking the court to order L’Oreal to pay unspecified money damages and to pay for medical monitoring.
Under the regulatory framework in the United States, the complaint says, it is incumbent upon the manufacturers of cosmetic products to assess the safety of their products and to warn consumers anytime a health hazard is identified. “Here, a wealth of scientific information is available regarding long-term use of hair relaxers, straighteners, and hair dyes as containing certain endocrine-disrupting chemicals, which should have alerted manufacturers of these products to the specific and dangerous harms associated with their products when used as intended, particularly in women of color.”
February 2, 2023 – Privacy
Texas Accuses Google of Collecting Biometric Data Without Consent
The office of Texas State Attorney General Ken Paxton has filed a lawsuit against Google over the company’s alleged years-long practice of capturing and using biometric data from “millions of Texans without properly obtaining their informed consent to do so.”
In the lawsuit, the attorney general argues that Google used features in its Photos and Assistant apps, as well as through Nest Hub Max hardware, to scan and store facial and voice data without first acquiring user consent, in violation of the state’s Capture or Use of Biometric Identifier Act of 2009. Furthermore, the AG alleges, Google then leveraged that data for commercial gain by using it to train the company’s machine learning algorithms.
“Google has now spent years unlawfully capturing the faces and voices of both nonconsenting users and nonusers throughout Texas — including our children and grandparents — who simply have no idea that their biometric information is being mined for profit by a global corporation,” according to the complaint, which was filed in state district court in Midland County, Texas.
February 1, 2023 – Consumer Fraud
Evian Falsely Claims Bottles Are Carbon Neutral, Lawsuit Alleges
Danone Waters of America falsely labels the plastic bottles for its Evian brand of bottled water as carbon neutral, alleges a proposed class action filed in federal court in White Plains, N.Y.
In her suit, plaintiff claims that the Evian water bottles are not actually carbon neutral because carbon dioxide is released into the atmosphere during the manufacturing process for them.
Plaintiff also argues that defendant cannot say that it offsets the carbon emissions produced during the manufacturing process, since the organizations it works with for carbon credits allegedly “do not currently or actually” reduce CO2 emissions. “Accordingly, even under the ‘carbon offset’ definition of ‘carbon neutral,’ Defendant’s claim is still false,” plaintiff says.
January 31, 2023 – Intellectual Property
Skechers Claims Hermès Is Infringing on Its Shoe Soles Patents
In Manhattan federal court, Skechers U.S.A. Inc. has sued French luxury fashion house Hermès International, alleging two brands of Hermès sneakers infringe on Skechers’ design patents.
Hermès’ Eclair and Envol shoe designs violate Skechers’ patent rights for the “Massage Fit” soles in its “Go Walk” walking shoes, according to the complaint.
Skechers has earned its reputation as a world leader in designing cutting-edge footwear, the complaint says, with the company spending tens of millions of dollars in researching and developing its proprietary line of shoe designs. “These ornamental designs are embodied in the highly successful Skechers Go Walk series featuring the Massage Fit sole and various other Skechers styles.” Defendant has infringed plaintiff’s patents by offering for sale shoes that embody the inventions disclosed in these design patents, Skechers alleges.
January 30, 2023 – Antitrust
Justice Department Sues Google, Alleging Monopolizing of Digital Advertising
Through serial acquisitions and anticompetitive auction manipulation, Google subverted competition in internet advertising technologies, the U.S. Department of Justice (DOJ) claims in a civil action filed in federal court in Alexandria, VA.
In the lawsuit, DOJ — along with the attorneys general of California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia — claims that Google’s anticompetitive behavior in monopolizing multiple digital advertising technology products constitutes a violation of Sections 1 and 2 of the Sherman Act.
The DOJ complaint alleges that over the past 15 years, Google has engaged in a course of anticompetitive and exclusionary conduct that consisted of neutralizing or eliminating ad tech competitors through acquisitions; wielding its dominance across digital advertising markets to force more publishers and advertisers to use its products; and thwarting the ability to use competing products. In doing so, the complaint says, Google has cemented its dominance in tools relied on by website publishers and online advertisers, as well as the digital advertising exchange that runs ad auctions.
January 28, 2023 – Consumer Fraud
Amazon Fails to Deliver on Prime Membership Timeframes, Class Action Alleges
Amazon.com misrepresents the benefits of its Prime paid membership, advertising one-or-two-day delivery timeframes that it doesn’t adhere to, claims a proposed class action filed in San Diego federal court.
Plaintiffs contend in their lawsuit that when Amazon users become Amazon Prime members, they do so with the understanding that one of the main benefits of membership is faster shipping, with consumers promised to receive their products within two days. However, plaintiffs say, Amazon Prime members often don’t receive their orders within this schedule.
Amazon’s “deceptive marketing tactics” play out in two ways, according to the complaint. The first is when a package simply doesn’t arrive in time, even though it was advertised as being eligible for same-day or two-day shipping. The second is when Amazon switches the delivery date midway through the shipment, once the product is already on its way. Plaintiffs seek certification of the class action and restitution of their membership fees.
January 27, 2023 – Product Liability
Class Action Says Baby Food Containing Heavy Metals Sold at Grocery Chains
A proposed class action filed against Kroger, Harris Teeter and other major retailers alleges that parents were sold baby food containing heavy metals that may increase the risk of autism, ADHD and other developmental problems.
The lawsuit, filed in federal court in Cincinnati, Ohio, claims that defendants sold “Simple Truth Organic Rice Rusks Baby Teething Wafers,” which had “dangerous” levels of arsenic, lead, cadmium and mercury. In their suit, plaintiffs say that in purchasing the product they reasonably trusted defendants to sell baby food that is safe, nutritious and free from harmful toxins.
But in February 2021, according to the complaint, Congress released a report that exposed many of the largest name brand baby food manufacturers of “knowingly concealing dangerous levels of contamination in ingredients directly used in the production of their baby food products.” The report, the complaint says, establishes a causative relationship between exposure to heavy metals — including arsenic, lead, cadmium and mercury — and severe, lasting impacts on babies and young children, the impacts including “permanent decreases in IQ, diminished future economic productivity, and increased risk of future criminal and antisocial behavior.”
January 26, 2023 – Labor & Employment
Dating App ‘Snack’ Accused of Discriminating Against Singles Older Than 35
A proposed class action filed in federal court in Sacramento, Calif., accuses the owner of dating app “Snack” of age discrimination because it won’t allow singles older than 35 to sign up.
Plaintiff, 37 years old, alleges that Snack’s refusal to let him join violates the California Unruh Civil Rights Act (UCRA), which prohibits businesses from discriminating against customers based on their race, sex, religion, and other protected categories. When he tried to sign up after entering his age and other personal information, plaintiff says he got a screen that said “100% of snack are under 35” and “looks like you’re past our sell-by date.”
Snack, according to the complaint, has been described as the TikTok for dating, aimed at younger singles to connect by way of videos instead of the profiles with still pictures on more traditional dating sites. The company has stated, the complaint says, that the purpose of watching the videos on Snack forces users to be more intentional about the decisions they are making as opposed to the “low intent” of swiping on a photo as they would on Tinder or Match. Still, by refusing plaintiff access to the full advantages and services of the Snack application due to his age, defendant has violated the UCRA, the complaint argues.
January 25, 2023 – Securities
CFTC Files Suit Against Digitex Over Digital Asset Derivatives Trading Platform
The Commodity Futures Trading Commission has filed a lawsuit against Digitex LLC and related entities in Miami federal court, alleging that the company operated an illegal digital-asset-derivatives trading platform through a common enterprise of corporate entities, in violation of the Commodity Exchange Act and other commission regulations.
The web-based exchange platform, the complaint says, “accepted customer funds as margin and matched customer orders for digital asset derivatives such as bitcoin futures contracts and ether [cryptocurrency] futures contracts.” And due to the nature of these operations, the complaint argues, Digitex was required by CFTC regulations to register as either a designated contract market or a foreign board of trade.
The CFTC says in its suit that Digitex was also required to register as a futures commission merchant and comply with provisions of the Bank Secrecy Act (BSA). Despite all of these requirements, the CFTC says, the defendant remains unregistered with the commission and has yet to comply with the necessary provisions of the BSA. The complaint cites violations for fraud and manipulation by deceptive device or contrivance, execution of futures transactions on an unregistered board of trade, failure to register as a futures commission merchant, failure to implement customer information programs, and failure to implement know your customer and anti-money laundering procedures.
January 24, 2023 – Intellectual Property
Textile Designer Alleges Zulily Copied Plaintiff’s Artwork
In Los Angeles federal court, EKB Textiles accuses e-commerce company Zulily LLC of copyright infringement.
The artwork in question, the complaint says, involves a two-dimensional design that plaintiff has widely disseminated to multiple groups in the fashion and apparel industry.
The complaint also notes that this is not the first instance of the defendant’s copyright infringement; in November 2020, plaintiff sent a cease-and-desist letter to defendant regarding a similar case of illicit reproduction of plaintiff’s design. In his lawsuit, plaintiff seeks an injunction preventing further infringement and an award of damages and other relief.
January 23, 2023 – Cybersecurity
Samsung Accused of “Cavalier’ Security Measures Before Data Breach
Samsung Electronics of America Inc. faces a proposed class action over its “cavalier approach” to cybersecurity by allegedly failing to safeguard unencrypted servers, which resulted in hackers possibly stealing the information of hundreds of thousands of people in a data breach earlier this year.
According to the complaint filed in federal court in Tampa, Fla., plaintiff brings this action on behalf of those whose personal and non-public information, including name, contact and demographic information, date of birth, and product registration information were compromised in a “massive security breach” of defendant’s computer servers that was allegedly discovered on August 4, 2022, but not disclosed until a month later.
Plaintiff alleges in his lawsuit that Samsung “failed to take reasonable steps to employ adequate security measures or to properly protect sensitive Personally Identifiable Information” despite well-publicized data breaches at large national retail and restaurant chains in recent years, including Arby’s, Wendy’s, Target, Chipotle, Home Depot, P.F. Chang’s, and Kmart. In spite of these high-profile data breaches, plaintiff says, defendant failed to implement basic security measures such as a firewall, encryption, and other standard data management practices to prevent unauthorized access to personal information.
January 20, 2023 – Environment
Coal-fired Power Plants in Texas Exceeding Pollution Limits, Lawsuit Claims
The U.S. Environmental Protection Agency is allowing eight Texas coal-fired power plants to avoid pollution controls by failing to act on a request to amend the state’s plans for pollution reduction, environmental groups allege in a suit filed in federal court in the District of Columbia.
The environmental groups — the Sierra Club and the Environmental Integrity Project — say in their suit that EPA’s inaction is allowing the power plants to bypass controls for particulate matter emissions for hundreds or thousands of hours a year of operation during shutdown, startup, and maintenance procedures.
The groups are seeking to force the EPA to make a decision on a 2020 request submitted by Texas to amend its State Implementation Plan for the National Ambient Air Quality Standards that would allow pollution controls to not apply during shutdown, startup, and maintenance. By failing to approve or reject the request as required by the Clean Air Act, the groups say the EPA is in effect letting the coal plants operate under unsanctioned and less protective standards.
January 19, 2023 – Labor & Employment
Fired Female Associate at Major Law Firm Alleges Biased Treatment
Male associates in the intellectual property litigation group at Kirkland & Ellis, the largest law firm in the world by revenue, were allegedly treated better and paid more money than a fired female colleague, even though she did similar work and had similar experience, according to a lawsuit filed in San Francisco federal court.
In her suit, plaintiff alleges that two IP partners “led a discriminatory cadre of Kirkland’s IP litigation group” whose disparate treatment of female associates produced “an alarmingly high turnover of female associates relative to male associates.” Within her tenure of less than a year at the firm, plaintiff claims, seven female associates left her litigation group, compared with only one male associate who left during that time.
Plaintiff “experienced a clear discrepancy in treatment” with respect to “workload, support provided for assignments, access to partners, benefits and overall treatment,” the complaint says, adding that plaintiff was fired after complaining about disparate treatment. Negative evaluations of her work were defamatory and a pretext for her firing, plaintiff argues.
January 18, 2023 – Privacy
Chase Bank Faces Calif. Biometric Privacy Software Suit
JPMorgan Chase Bank has been accused in a proposed class action of using anti-fraud software to eavesdrop on private phone conversations and record and analyze customers’ voices without their consent.
Chase Bank utilizes a software technology that activates when the bank’s customers in California and across the nation call to receive support, according to the complaint filed in federal court in Oakland, Calif. This technology, the complaint says, authenticates customers without prompting them to enter passwords or PINs. Rather, the technology analyzes callers’ environments, their behavior, and other factors to passively authenticate them as they speak on the phone with the bank’s contact center.
Plaintiff alleges in his lawsuit that the Chase Bank contact center’s implementation of this technology records and examines customers’ voice prints and other voice stress patterns to ascertain the truth or falsity of statements that callers make, and that they are who they say they are. However, plaintiff says, defendant never procured the express consent — written or otherwise — of any person who interacted with the contact center, prior to recording and examining voice prints or other voice stress patterns, and thus have failed to comply with requirements of the California Invasion of Privacy Act.
January 17, 2023 – Trade Secrets
Cosmetics Company Sues Chinese Supplier for Theft of Trade Secrets
GeLab Cosmetics LLC has filed a lawsuit in Chicago federal court alleging that its Chinese supplier, Zhuhai Aobo Cosmetics Co., took advantage of a business relationship to create knockoff versions of plaintiff’s nail gel.
In its suit, plaintiff GeLab describes itself as “a cosmetic company that has “put both time and resources into developing cutting-edge, distinguished products.” According to the complaint, defendant Aobo became GeLab’s supplier through a purchase agreement that detailed contractual terms restricting the ways in which Aobo would be able to use and disclose information about plaintiff’s product.
Specifically, the complaint says, “Aobo promised not to use or permit anyone else to use GeLab’s proprietary work or information against GeLab’s interests, including by making a derivative product to compete with GeLab.” Instead of abiding by the contractual terms, plaintiff claims, defendant used GeLab’s confidential and proprietary trade secrets to develop and market competing products, including engaging in direct competition with plaintiff by marketing products identical to GeLab’s on Amazon.
January 13, 2023 – Consumer Fraud
Walmart Accused of Falsely Advertising Its Great Value Veggie Straws
Walmart falsely advertises its Great Value Veggie Straws as containing no artificial flavors or preservatives, claims a proposed class action filed in federal court in Ocala, Fla.
The label on the Great Value Veggie Straws prominently states “No Artificial Flavors or Preservatives,” according to the complaint, but in fact the product contains malic acid, an artificial flavor enhancer, and citric acid, a chemical preservative. Plaintiff in his lawsuit points to the U.S. Food & Drug Administration’s definition of a chemical preservative as a substance that “tends” to prevent or slow the deterioration of foods. The citric acid in the Great Value Veggie Straws functions as a chemical preservative, plaintiff argues.
Additionally, plaintiff says, the Great Value Veggie Straws contain malic acid, which “imparts and contributes to the tangy, sweet and sour ranch flavor.” The malic acid is manufactured in petrochemical plants from benzene or butane through “a series of chemical reactions involving highly toxic chemical precursors and byproducts,” plaintiff says.
January 12, 2023 – Product Liability
LG Class Action Says Company Sold Defective Ranges
A proposed class action filed in federal court in Newark, N.J., alleges that some ranges manufactured by LG Electronics Inc. have defective knobs that turn on unintentionally and can cause fires at peoples’ homes.
According to the complaint, LG makes electric ranges that on some models include dangerous defects in the design of their front-mounted burner control knobs, making them susceptible to unintentional activation.
On these ranges, the complaint says, the control knobs are prone to depress and rotate as a result of minor, inadvertent contact; and when the knobs on the ranges are inadvertently contacted, they activate without warning to the consumer. “This unintentional activation of the Ranges’ cooktops in turn creates a hazardous condition and serious risk of fire, property damage, and personal injury,” plaintiff claims in his lawsuit, adding that LG has known about the issue since 2021 but concealed it from consumers.
January 11, 2023 – Privacy
Charles Schwab Hit With Lawsuit Over Voice Print ID System
The Charles Schwab Corp. recorded, stored and used callers’ biometric voice prints without their consent in violation of the California Invasion of Privacy Act (CIPA), according to a proposed class action filed in federal court in San Diego, Calif.
Charles Schwab, the complaint says, has developed software that creates a biometric voice print of each caller, allowing it to analyze the callers’ voice prints to determine the truth or falsity of their statements. While defendant claims that consumers must enroll in the Schwab voice ID service, plaintiff alleges in his suit that defendant performs the same or similar voice examinations on anyone who calls it.
Defendant does not obtain “express written consent” from any callers before examining and analyzing their voices, plaintiff contends, adding that even those who enroll in the voice ID service do it verbally over the phone, which does not satisfy the CIPA requirement of express written consent.
January 10, 2023 – Antitrust
FTC Accuses Pesticide Manufacturers Syngenta and Corteva of ‘Pay-to-Block Scheme’
The U.S. Federal Trade Commission and a coalition of 10 state attorneys general have filed a lawsuit against pesticide manufacturers Syngenta Crop Protection and Corteva Inc. for allegedly paying distributors to block competitors from selling their cheaper generic products to farmers.
The complaint alleges that Syngenta and Corteva, two of the largest pesticide manufactures in the U.S., run so-called “loyalty programs” in which distributors only get paid if they limit business with competing manufacturers. Cutting off competition has allowed the defendants to inflate their prices and force American farmers to spend millions of dollars more for their products, the FTC claims in its suit filed in federal court in Greensboro, N.C.
When a company creates a new pesticide, the complaint says, it can patent that invention, preventing anyone else from selling it for 20 years. Ordinarily, when the patent expires, generic versions of the product enter the market to compete with the original brand-name version, and the price typically comes down. However, the FTC argues, defendants take illegal steps to stop generic pesticides from eating into their monopoly profits by setting up “loyalty” programs in which they make payments to distributors — as long as the distributors keep their purchases of competing generic pesticides beneath a very low threshold.
January 9, 2023 – Labor & Employment
EEOC Sues Walgreens for Denying Leave to Pregnant Worker Who Miscarried
The Equal Employment Opportunity Commission has sued Walgreen Co. for allegedly refusing to allow a pregnant, diabetic retail worker in Louisiana to take emergency medical leave, forcing her to quit hours before she miscarried.
The EEOC filed its lawsuit in federal court in Alexandria, La., claiming a manager in December 2020 told the worker she had asked for “too many accommodations” and could not leave to see her doctor unless she found a replacement.
Walgreen’s action, the EEOC alleges, violated the federal Pregnancy Discrimination Act (PDA) and the Americans with Disabilities Act by refusing to grant plaintiff a reasonable accommodation related to her pregnancy and disability. According to the complaint, the U.S. Supreme Court in 2015 ruled that the PDA requires employers to grant pregnant workers the same accommodations that they give to employees who are injured or disabled.
January 6, 2023 – ERISA
Quanta Services Employees File Class Action Over 401(k) Funds
Electric power contractor Quanta Services Inc. has been sued in Houston federal court by two former employees who say their $1.2 billion 401(k) plan offers inappropriate and risky target date funds as the default investment option.
The lawsuit focuses on a suite of actively managed target date funds (where the balance of assets shifts over time) from Fidelity, which is not named as a defendant. These funds, the complaint says, are both too risky for the average retirement investor and “dramatically more expensive” than a similar suite of passively managed funds offered by the same company.
In his suit, plaintiff argues that in selecting the risky and expensive 401(k) plan, defendants have breached their fiduciary duties to participants in the plan, in violation of the Employee Retirement Income Security Act. Defendants selected high-cost and poorly performing investments instead of offering more prudent alternative investments that were readily available at the time, plaintiff alleges, adding that defendants’ breaches were the direct cause of the losses suffered by plaintiff and the proposed class.
January 5, 2023 – Consumer Fraud
Class Action Alleges Tesla Falsely Advertised Its ‘Autopilot’ Abilities
Plaintiff claims in a proposed class action that Tesla misled consumers by falsely advertising the abilities of its advanced driver assistance — “autopilot” — technologies.
Tesla has deceived consumers regarding the current abilities of its autopilot technology by representing that it was “perpetually on the cusp of perfecting that technology and finally fulfilling its promise of producing a fully self-driving car,” according to the complaint filed in federal court in Central Islip, N.Y. Although these promises have proven false time and time again, the complaint says, Tesla and its CEO Elon Musk “have continued making them to generate media attention, to deceive consumers into believing it has unrivaled cutting-edge technology, and to establish itself as a leading player in the fast-growing electric vehicle market.”
Plaintiff contends in his lawsuit that Tesla, despite portraying itself as a leader in autonomous vehicle technology, has in fact “been surpassed by numerous automaker competitors that have developed autonomous driving technology far more advanced than Tesla’s. Former Tesla employees and investigations have revealed “damning information that now makes clear that, contrary to Tesla’s repeated promises that it would have a fully self-driving car within months or a year, Tesla has never been remotely close to achieving that goal,” plaintiff says.
January 4, 2023 – Securities
Organ Transplant Company Accused in Investor Suit Following SEC Investigation
A shareholder suit filed in San Francisco federal court against CareDx Inc. and each member of its board of directors alleges that the medical diagnostics company violated securities laws by failing to disclose illegal schemes that had been used to inflate testing services revenue.
CareDx is a “diagnostics company that provides services and products to the organ transplant recipient community, offering diagnostic testing services, products, and digital healthcare software for transplant patients and care providers,” according to the complaint. Through their services, the complaint says, CareDx allows clinicians to determine effective treatments for organ transplant recipients.
In February 2021, the complaint says, CareDx reported a 51% year-over-year increase in total revenue, which the company attributed to their testing services sector. Plaintiff alleges in his suit that defendant board members “caused the company to issue materially false and misleading statements regarding testing services.” Specifically, plaintiff contends, the board of directors failed to disclose the improper and illegal schemes that had been used to inflate testing services revenue, including offering inducements or kickbacks to physicians and improperly billing certain testing services as part of others.
January 3, 2023 – Product Liability
Hershey’s Dark Chocolate Said to Contain Toxic Levels of Lead, Cadmium
A proposed class action filed in federal court in Brooklyn, N.Y., alleges Hershey’s failed to disclose the health risks associated with many of the company’s dark chocolate products that contained toxic levels of lead and cadmium.
According to the complaint, the Hershey Company knew or should have known — due to its exclusive knowledge of ingredient sourcing and quality control testing data — that its Hershey’s Special Dark Mildly Sweet Chocolate, Lily’s Extra Dark Chocolate 70% Cocoa, and Lily’s Extreme Dark Chocolate 85% Cocoa contained elevated levels of lead and cadmium. Even exposure to low levels of these toxic metals, the complaint says, can cause serious health issues.
Plaintiff claims in his lawsuit that rather than properly testing the products for excessive levels of potentially harmful and toxic heavy metals before offering the products to consumers, Hershey’s charged a premium for its products and put profits before consumer safety. In marketing its products, plaintiff says, defendant failed to provide adequate warnings or include lead and cadmium as ingredients on the products nutrition labels, which consumers rely on to make safe choices.
January 2, 2023 – Privacy
Facebook Unlawfully Monitors Private Browsing Activity, Lawsuit Claims
Meta Platforms Inc., the parent company of Facebook and Instagram, has been hit with a proposed class action alleging it intercepts, monitors and records users’ browsing activity and communications without their consent.
Plaintiffs filed their lawsuit in San Francisco federal court, claiming Meta tracked and intercepted their browsing activity and private communications with third-party websites without their knowledge or consent, in violation of the federal Wiretap Act and the California Invasion of Privacy Act. Plaintiffs claim in their suit that they believed their communications, which allegedly include text entries, passwords and other personally identifiable information, were private and would not be intercepted by Meta.
Meta’s business strategy, the complaint says, involves collecting ad revenue and engaging in data mining for profit. When a Facebook app user clicks on a link to an external website, Meta reroutes the user to an in-app web browser instead of the device’s default web browser, which enables Meta to monitor the user’s interactions while evading Apple iOS privacy controls. Meta does not notify Facebook users about this tracking activity, which it also allegedly imposes on users who have opted out of being tracked, plaintiffs say.
December 23, 2022 – Intellectual Property
Google Accused of Trademark Infringement by Analytics Platform Visier
HR analytics software company Visier Inc. has sued Google LLC for trademark infringement in San Francisco federal court, alleging Google’s Vizier machine-learning software is likely to confuse potential consumers.
In its lawsuit, Visier argues that the similarity of the companies’ names and products — Visier for plaintiff and Vizier for defendant — could mislead consumers into thinking that Google’s software uses Visier’s technology, or that Visier is “simply reselling or repackaging Google technology.”
According to the complaint, Visier’s “people analytics” platform takes data and “applies cutting-edge machine learning algorithms to deliver insightful predictions.” Visier asked the court for an unspecified amount of money damages and an order blocking Google from using the Vizier name.
December 22, 2022 – Consumer Fraud
Ovulation Test Kits Allegedly Marketed With Deceptive Claims
In Brooklyn federal court, manufacturers and sellers of several popular ovulation test kits are accused in a proposed class action of making false and misleading claims about the products, which allegedly fail to actually test whether a woman is ovulating.
The complaint asserts that multiple brands of ovulation test kits sold by Abbott Laboratories, Procter & Gamble, Target, Walmart, CVS and others are promoted with claims intended to deceive customers into purchasing the kits to determine when they are ovulating and most likely to become pregnant. However, the complaint says, defendants falsely claim that the kits test for ovulating, when they actually only test Luteinizing Hormone (LH) levels, which can spike at varying times during the menstrual cycle for a variety of reasons other than ovulation.
According to the complaint, ovulation test kits are falsely advertised with statements that suggest they provide “99% or greater accuracy,” with plaintiffs alleging that the “intentional misrepresentations” are made to capitalize on women trying to become pregnant. LH levels, the complaint says, generally rise quickly just before ovulation in women. However, these hormones are also present in varying levels for people of all genders and do not necessarily mean someone is ovulating.
December 21, 2022 – Defamation
Nicki Minaj Claims Defamation for Being Called a ‘Cokehead’
Rapper Nicki Minaj alleges in Manhattan federal court that she was defamed on social media by being called a “cokehead” who is “shoving all this cocaine up her nose.”
Defendant, a woman who goes by the Twitter name “Nosey Heaux,” has “falsely and maliciously” called plaintiff a cokehead, according to the complaint. In a different age, the complaint says, defendant’s lie would have been meaningless “because she is the ultimate ‘nobody’ but she is a nobody who has approximately 3,300 followers on Twitter.”
Minaj says in her lawsuit that in just a day following defendant’s September 12, 2022, publication of the cokehead claim, almost 2,000 people had “liked” it. More importantly, more than 260 people had retweeted it, “which led to a firestorm of social media attention which was undoubtedly caused by multiple levels of subsequent retweets.” While social media is an extraordinarily effective vehicle for spreading lies, Minaj says, it does not confer a license to do so.
December 20, 2022 – Product Liability
Class Action Says Mercedes-Benz Batteries Drain ‘Rapidly and Unexpectedly’
In a proposed class action filed in federal court in Newark, N.J., plaintiffs claim that a large number of Mercedes-Benz vehicles made between 2004 and 2022 have a “defect that causes the batteries in the vehicles to drain rapidly and unexpectedly.”
The defect causes the battery to suddenly drain, preventing the car from starting, potentially stranding the occupants and endangering their safety, according to the complaint. As a result of the defect, the complaint says, the cars are unsafe, unreliable and undesirable.
Based on customer complaints, repair data and other internal sources, Mercedes knew or should have known about the existence of the defect and its consequences, plaintiffs allege in their lawsuit. “Nevertheless, Mercedes has never offered to repair the Electrical Drain Defect or otherwise compensate Class Members for their injuries resulting from the defect which it has not repaired.”
December 19, 2022 – Privacy
CNN Accused of Unlawfully Sharing Digital Subscriber Data With Facebook
CNN.com shares its digital subscribers’ personal video viewing information with Facebook in violation of the Video Privacy Protection Act (VPPA), alleges a proposed class action filed in Chicago federal court.
Plaintiff claims in her suit that CNN’s parent company, Warner Bros. Discovery, violates VPPA by disclosing its digital subscribers’ identities and video viewing habits to Facebook without proper subscribers’ consent. The VPPA, according to the complaint, prohibits video providers such as CNN.com from knowingly disclosing consumers’ personally identifiable information to third parties without express consent.
Through a Facebook pixel code installed on CNN.com, the complaint says, the company has been tracking when digital subscribers enter CNN.com and view video media and sharing that information with Facebook. “Put simply,” plaintiff argues, “the pixel allows Facebook to know what Video Media one of its users viewed on CNN.com. Thus, without telling its digital subscribers, Defendant profits handsomely from its unauthorized disclosure of its digital subscribers’ Personal Viewing Information to Facebook.”
December 16, 2022 – Consumer Fraud
Pyrex Measuring Cups Falsely Advertised as ‘Dishwasher Safe,’ Lawsuit Claims
In Chicago federal court, a proposed class action alleges that Pyrex measuring cups are not worth the money consumers pay for them because the red measuring lines wash off easily in a dishwasher, rendering them useless.
Plaintiff filed her suit against Instant Brands, which manufactures and markets the product. The ads for the measuring cups, plaintiff says, inform consumers that the product is “dishwasher safe”— the ads appearing both on the company website and on the websites of the retailers who stock the product.
“However, the Product is not dishwasher safe because the measurement markings fade and disappear when the cups are washed in a dishwasher,” plaintiff claims in her suit, adding that “According to hundreds of customer complaints, the markings can often disappear in as little as one wash.”
December 15, 2022 – Constitution
Texas A&M Said to Engage in Illegal Affirmative Action
A finance professor at Texas A&M University claims in a proposed class action filed in Houston federal court that the university has an unconstitutional policy of hiring female and non-Asian minority professors over white and Asian men.
Federal law, the complaint says, prohibits universities that accept federal funds from discriminating on account of race or sex, and Texas A&M is “flouting these requirements by using race and sex preferences in faculty hiring and compensation — a practice that violates the clear and unequivocal text of Title VI and Title IX [of the civil rights laws], as well as the Equal Protection Clause of the Fourteenth Amendment.”
Plaintiff alleges in his lawsuit that Texas A&M, along with nearly every university in the United States, discriminates on account of race and sex when hiring its faculty, by giving discriminatory preferences to female or non-Asian minorities at the expense of white and Asian men. “This practice, popularly known as ‘affirmative action,’ has led universities to hire and promote inferior faculty candidates over individuals with better scholarship, better credentials, and better teaching ability,” plaintiff argues, saying that Texas A&M’s affirmative action policies bar him from getting a faculty job because he is white.
December 14, 2022 – Product Liability
Tracpatch Health Faces Lawsuit Over Alleged Defective Hip Replacement
Plaintiff alleges that Tracpatch Health Inc. developed and serviced him with a hip replacement device that was defective and unreasonably dangerous, in a suit filed in federal court in Jacksonville, Fla.
In his suit, plaintiff says he selected Tracpatch’s product, the Consensus Hip System, as replacement for his damaged natural hip. The consensus hip system, according to the complaint, was cleared by the Food & Drug Administration under Section 510(k) of the Food, Drug, & Cosmetic Act, meaning that it did not have to go through any clinical study to gain clearance — a pathway that “allows devices to avoid clinical study and any testing for safety or efficacy.”
Defendant should have known that this pathway did not adequately assess the efficacy and safety of its product, plaintiff argues. Once the hip system was implanted, it withered and fell apart, which resulted in heavy metal poisoning and “ultimately the total failure of the implant,” plaintiff claims.
December 13, 2022 – Disability Act
People With Disabilities Sue Over Homeless Use of Portland Sidewalks
People with disabilities in Portland, Ore., have sued the city in federal court there, saying they can’t navigate city sidewalks because of sprawling homeless encampments.
The proposed class action alleges the city has violated the Americans with Disabilities Act by allowing homeless peoples’ tents to block city sidewalks, making use of the pedestrian walkways difficult for people using wheelchairs, walkers or canes. A substantial number of the city’s sidewalks, the complaint says, are blocked by tent encampments and attendant debris, “rendering the sidewalks inaccessible, dangerous, and unsanitary for people with mobility disabilities.”
The lawsuit seeks to require the city to clear all sidewalks of tent encampments and debris, and to “construct, purchase, or otherwise provide for emergency shelters in which to house the unsheltered persons” who may be affected. About 13% of Portlanders live with a disability, according to the complaint, including 6% with mobility impairments and 2.4% with visual impairments.
December 12, 2022 – Cybersecurity
Samsung Hit With Lawsuit Over Consumer Data Breach
Samsung Electronics America Inc. failed to protect the private information of thousands of people whose information was stolen in an August 2022 cyberattack, alleges a proposed class action filed in federal court in Las Vegas, Nev.
Plaintiff says in his suit that the cyberattack occurred on or around August 4, and Samsung customers weren’t notified until nearly a month later. Personal information stolen in the attack, plaintiff claims, included names, contact and demographic information, date of birth, and product-registration data.
As a result of Samsung’s negligence, the complaint states, plaintiff and the proposed class members were harmed and forced to take remedial steps to protect themselves from future loss. “Indeed, Plaintiff and all of the Class Members are currently at a very high risk of misuse of their Private Information in the coming months and years, including but not limited to unauthorized credit card charges, unauthorized access to email accounts, identity theft, and other fraudulent use of their financial accounts,” according to the complaint.
December 9, 2022 – Intellectual Property
Meta Faces Trademark Infringement Suit by Investment Firm Metacapital
Investment firm Metacapital Management LP has sued Meta Platforms Inc., the parent company of Facebook, alleging Meta’s use of the Meta name to provide financial services would cause customer confusion and violate plaintiff’s trademarks.
According to the complaint filed in Manhattan federal court, Meta Platforms rebranded from Facebook in October 2021 to reflect its focus on the metaverse, a shared virtual realm. It applied to register Meta-related trademarks in January related to a range of financial services, including “investment management services.”
Defendant’s actions are likely to cause confusion among Metacapital’s current and potential customers, the complaint argues, adding that plaintiff sent Meta Platforms a cease-and-desist letter in May, and that the companies have been unable to resolve the dispute outside of court.
December 8, 2022 – Securities
Invisalign Maker’s Ex-Vice President Accused by SEC of Insider Trading
A former vice president at Align Technology Inc. has been accused by the Securities & Exchange Commission of trading on confidential information about the company’s Invisalign teeth straighteners.
Todd C. Doucette, 50, made nearly $349,000 in illegal profits by buying Align shares ahead of company earnings announcements in April 2018 and October 2020, the SEC says in a civil suit filed in federal court in New Hampshire. Align is a publicly traded company that designs and manufactures medical devices for orthodontic and restorative treatment, the complaint says, and Doucette worked at the company from March 2016 to July 2021, most recently serving as vice president of business transformation for the Americas.
In his role, the SEC says, Doucette obtained nonpublic information concerning the financial performance and business operations for Align’s Americas region in advance of the company’s earnings announcement for the first quarter of 2018 and the third quarter of 2020. He learned that Align had exceeded financial expectations for its Americas region. As a senior-level employee of Align, the SEC says, Doucette owed the company a duty of trust and confidence, which explicitly prohibited him from trading on the basis of material, nonpublic information.
December 7, 2022 – Privacy
California Hotel Alleged to Unlawfully Record Cellphone Calls
A Hilton hotel in Santa Monica, Calif., recorded thousands of people’s cellular telephone calls without warning or notification, in violation of California’s Invasion of Privacy Act (CIPA), alleges a proposed class action filed in Los Angeles federal court.
The California State Legislature passed the CIPA in 1967 to protect the right of privacy of the people of California, the complaint says, adding that the act was amended in 1992 due to specific privacy concerns over the increased use of cellular and cordless telephones. The amended act, according to the complaint, “prohibited intentionally recording all communications involving cellular and cordless telephones, not just confidential communications.”
In his suit, plaintiff claims the hotel routinely recorded his calls without providing the required notification. The actions of defendant, plaintiff argues, were “knowing, willful, and intentional, and Defendant did not maintain procedures reasonably adapted to avoid any such violation.”
December 6, 2022 – Product Liability
Tylenol Class Action Filed Over Titanium Dioxide Coloring Side Effects
Johnson & Johnson (J&J) has been accused in a proposed class action of failing to disclose that pain reliever Tylenol contains allegedly harmful food coloring additives, including titanium dioxide that has been linked to toxic side effects.
The complaint, filed in San Diego federal court, claims that J&J fraudulently conceals that Tylenol pills contain titanium dioxide, which can build up in the human body and cause DNA changes and organ damage.
Plaintiff says in her lawsuit that studies have shown titanium dioxide causes pathological lesions of the liver, spleen, kidneys and brain, as well as lung tumors, inflammation, and dysfunction in the kidneys. Yet despite knowledge about the potential toxic effects of titanium dioxide, plaintiff alleges, J&J continues to sell Tylenol Extra Strength, Tylenol Extended Release, Tylenol Cold + Flu Multi-Action, Tylenol Cold + Flu Severe, Tylenol PM, Tylenol Rapid Release Gels, and Tylenol Regular Strength Liquid Gels, without disclosing the health risks to consumers or even indicating that the products contain titanium dioxide.
December 5, 2022 – Consumer Fraud
Gerber Hit With Class Action Over Baby Food Nutrient Claims
Gerber Products Co. faces a proposed class action in San Francisco federal court, accusing the company of misbranding its baby and toddler food products by making overblown nutrient content claims that violate Food & Drug Administration (FDA) rules.
Those misstatements, according to the complaint, lead purchasers into believing Geber baby food provides physical health benefits that in fact it does not. “Intending to profit from parents’ increasing desire to purchase food for their young children that provides physical health benefits,” the complaint says, “Defendant misbrands its baby and toddler food products by making nutrient content claims on the product packages that are strictly prohibited by the FDA.”
“Moreover, the nutrient content claims on Defendant’s products mislead purchasers into believing that the products provide physical health benefits for children under two years of age in order to induce parents into purchasing Defendant’s products,” plaintiff alleges, adding that the products are “harmful both nutritionally and developmentally for children under two.”
December 2, 2022 – Civil Rights
Lawsuit Alleges Pfizer Fellowship Program Discriminates Against Whites, Asian-Americans
In Manhattan federal court, a group of medical professionals that advocates against “radical, divisive, and discriminatory ideology” in healthcare has sued Pfizer Inc., claiming the company runs a fellowship that illegally excludes white and Asian-American applicants.
In its suit, plaintiff Do No Harm characterizes Pfizer’s Breakthrough Fellowship Program as “discriminatory on its face” because only Blacks, Latinos and Native Americans can apply. The program, plaintiff argues, violates Title VI of the 1964 Civil Rights Act, which bans race discrimination in federally funded entities (Pfizer receives government assistance), and Section 1557 of the Affordable Care Act, which bans race discrimination in federally funded health care programs.
Do No Harm consists of two Ivy League students who, according to the complaint, meet the academic requirements for the fellowship but cannot apply because of their race. They are asking the court to block Pfizer from selecting fellows for the 2023 class and to force the fellowship to use race-blind criteria going forward. “Racial discrimination demeans us,” and Pfizer’s “open exclusion of white and Asian-American applicants is illegal,” the complaint says, citing opinions of two conservative Supreme Court justices, Clarence Thomas and the late Antonin Scalia.
December 1, 2022 – Securities
StrongBlock Bilked Crypto Investors Via ‘Lifetime’ Rewards, Lawsuit Claims
Crypto-asset seller StrongBlock promised “lifetime” rewards with the purchase of certain blockchain products but then capped those rewards in a bait and switch, a group of investors allege in a suit filed in Manhattan federal court.
The securities sold by defendant included Strongblock digital or crypto assets known as tokens and nodes, according to the complaint. Strongblock sold nodes to plaintiffs with the promise those nodes would provide daily, uncapped token rewards in perpetuity, the complaint says. However, defendant “pulled the rug out from under every node holder by arbitrarily and unilaterally capping in April 2022 the cumulative rewards that could be generated by an individual node, without notice and in contravention to their own express statements that node rewards would never go to zero”
Plaintiffs argue in their suit that StrongBlock’s blockchain crypto-assets, unlike decentralized commodities based on blockchain, “are similar to traditional securities in that they represent one’s investment in a project that is to be undertaken with the funds raised through the sale of the tokens and more specifically here, nodes.” But despite the fact that the Strongblock tokens and nodes are securities, plaintiffs say, none of them are registered with the Securities & Exchange Commission, with the result that purchasers did not have access to disclosures that accompany the issuances of traditional securities.
November 30, 2022 – Constitution
Transgender Medicaid Beneficiaries Sue Florida Over Treatment Limits
Plaintiffs, transgender beneficiaries of gender affirming care under Medicaid (including puberty blockers, cross–sex hormones and sex reassignment surgery), are suing Florida health officials, claiming a recent change in the rules that limits such care is unconstitutional.
The complaint filed in federal court in Tallahassee, Fla., alleges the rule change will have “dire emotional, physical and psychological consequences” for transgender Medicaid beneficiaries in Florida if it’s allowed to stand. The rule change, plaintiffs argue, violates the equal protection clause of the Fourteenth Amendment, the patient protection section of the Affordable Care Act and the Medicaid Act.
The new rule, the complaint says, denies coverage for gender–affirming care to treat gender dysphoria, while these same health care services are routinely covered by Medicaid when they are for medically necessary purposes other than the treatment of gender dysphoria. The purpose of Medicaid is to provide health care coverage to individuals who have low income and cannot otherwise afford the costs of necessary medical care, plaintiffs say, and by denying coverage for gender–affirming care, defendants “categorically deny access to medically necessary care to thousands of Floridians who lack other means to pay for such care.”
November 29, 2022 – Cybersecurity
Coinbase Accused of Failing to Prevent Account Hacks
Security failures on the part of cryptocurrency company Coinbase have repeatedly led to the theft of ordinary customer accounts, alleges a proposed class action filed in San Francisco federal court.
In his lawsuit, plaintiff argues that Coinbase is negligent in protecting its user accounts from “unlawful intrusion and thievery” and fails to take prompt action to mitigate those thefts after they occur. “Coinbase is acutely aware of these problems and has paid large fines to regulators,” plaintiff says. “Yet the problems persist and account holders like Plaintiff continue to be fleeced by hackers with access to Coinbase’s systems.”
Plaintiff claims hackers gained access to his Coinbase account — through no fault of his own — in April 2022 and drained it of more than $200,000 worth of funds. He seeks to represent a nationwide class of current and former Coinbase users who signed up for accounts since April 1, 2021, and who weren’t able to access or lost their funds.
November 28, 2022 – Labor & Employment
Lawsuit Claims Amazon Fulfillment Centers Favor Males Over Females
Amazon.com Inc. faces a proposed class action alleging gender discrimination in that its fulfillment centers are tailored for men, making it difficult for women to achieve, on average, production scores comparable to male employees.
Amazon’s primary concern at its large fulfillment centers is “productivity,” or moving as many packages of inventory as possible, according to the complaint filed in Santa Clara Superior Court (Calif.). Amazon enforces its productivity by imposing a quota system upon its warehouse employees, the complaint says, and these policies discriminate against female employees by inflicting significant adverse impacts upon them, when compared to Amazon’s male employees assigned to the same tasks and positions.
Plaintiff in her suit argues that Amazon in setting its production quotas fails to consider the demographic reality that, on average, adult men are significantly taller than adult women. This reality, plaintiff says, places female employees at its fulfillment centers at a significant disadvantage, “in effect, punishing them for their generally shorter stature,” which in turn subjects them to disproportionately more adverse employment actions and terminations than men on the basis of comparable male–female weekly productivity scores.
November 25, 2022 – Privacy
FTC Sues Broker for Selling Data That Could Track Health Clinic, Church Visits
The U.S. Federal Trade Commission (FTC) has sued data broker Kochava Inc. in federal court in the District of Idaho, alleging that the broker sells geolocation data from hundreds of millions of mobile devices that could be used to track consumers’ movements.
The FTC claims in its lawsuit that the consumer data could be used to trace people to and from sensitive locations including “reproductive health clinics, places of worship, homeless and domestic violence shelters, and addiction recovery facilities.” By selling this data, the agency says, “Kochava is enabling others to identify individuals and expose them to threats of stigma, stalking, discrimination, job loss, and even physical violence.”
According to the complaint, Kochava purchases vast troves of location information derived from hundreds of millions of mobile devices. The information, the complaint says, is then packaged into customized data feeds that match unique mobile device identification numbers with timestamped latitude and longitude locations, and these data feeds can be used to assist clients in advertising and analyzing foot traffic at their stores and other locations. People are often unaware that their location data is being purchased and shared by Kochava and have no control over its sale or use, the FTC says, adding that defendant’s actions violate Section 5(a) of the FTC Act that prohibits unfair or deceptive acts or practices.
November 23, 2022 – Product Liability
Apple Smart Watch SE Allegedly Not ‘Swim Proof’ as Advertised
Apple Inc. markets its Apple Watch SE as “swim-proof” even though the product, due to a defect in manufacturing, routinely fails in brief encounters with water, alleges a proposed class action filed in federal court in San Jose, Calif.
Plaintiff says in her lawsuit that she paid $279 for an Apple Watch SE based on Apple’s representations that it was swim-proof and water resistant. However, she says, after she jumped into the shallow end of a pool, she noticed that her Apple Watch began to malfunction. Plaintiff claims that she used her watch according to the device’s operating instructions and representations of its expected water-resistant capabilities.
A significant percentage of Apple Watch SE products become damaged and experience diminished functionality after being exposed to small amounts of water, the complaint says, adding that the swim-proof issue is caused by faulty sealing. Plaintiff filed her suit on behalf of all U.S. residents who purchased an Apple Watch swim-proof device since Aug. 25, 2018.
November 22, 2022 – Labor & Employment
EEOC Sues California Winery for Sexual Harassment and Retaliation
The U.S. Equal Employment Opportunity Commission alleges that Justin Vineyards & Winery LLC, a wine production company headquartered in Paso Robles, Calif., violated federal law by allowing a class of female employees to be subjected to sexual harassment.
According to the lawsuit filed in Los Angeles federal court, male managers at Justin Vineyards’ production and restaurant locations have been allowed to sexually harass female employees on a daily basis through unwanted and repeated sexual advances, sexual comments and sexually offensive conduct, including unwelcome physical contact.
Despite receiving complaints, the EEOC says, Justin Vineyards failed to properly investigate the matter or take adequate steps to prevent the ongoing sexual harassment. Instead, some female employees who complained faced retaliation or were forced to leave the workplace. In its suit, the EEOC claims such alleged conduct violates Title VII of the Civil Rights Act of 1964.
November 21, 2022 – Securities
FTX Investor Sues Cryptocurrency CEO and His Celebrity Endorsers After Bankruptcy
A proposed class action has been filed in Miami federal court against Sam Bankman-Fried, the CEO of one of the world’s largest cryptocurrency exchanges, along with many of his paid celebrity endorsers, including Tom Brady, Trevor Lawrence, Larry David and Shaquille O’Neal, among others.
The lawsuit accuses FTX of devising a fraudulent scheme to “take advantage of unsophisticated investors from across the country,” causing $11 billion in damages. Plaintiff further seeks to hold a number of the company’s famous athlete and entertainment endorsers accountable for convincing customers to purchase cryptocurrency through FTX.
“The Deceptive FTX Platform maintained by the FTX Entities was truly a house of cards, a Ponzi scheme where the FTX Entities shuffled customer funds between their opaque affiliated entities, using new investor funds obtained through investments in the yield-bearing accounts and loans to pay interest to the old ones and to attempt to maintain the appearance of liquidity,” according to the complaint. Plaintiff says in his suit that defendant Bankman-Fried violated federal securities laws, as did the celebrity endorsers who failed to perform any “due diligence” prior to their marketing of the company and by not disclosing the full amounts they were being paid in exchange for their promotions.
November 18, 2022 – Intellectual Property
Taylor Swift Accused in Copyright Suit Over ‘Lover’ Book
Author Teresa La Dart, whose book “Lover” was published in 2010, has filed a lawsuit in federal court in Memphis, Tenn., against Taylor Swift, alleging Swift stole the book’s title as well as several of its creative elements.
Swift’s “Lover” broke records, according to the complaint, becoming the top-selling album of 2019 in its first week. Plaintiff’s copyright suit targets the book that accompanied the Swift album.
La Dart claims in her suit that Swift’s book has substantially the same format and front and back covers as hers as well as a “similarly styled ‘Lover’ title” and a similar color scheme of pastel pinks and blues. Plaintiff is suing Swift for damages in excess of $1 million, claiming that she has been “irreparably harmed” and suffered both actual and statutory damages.
November 17, 2022 – Environment
Environmental Group Alleges ‘Inhumane’ Holding Pen Planned for Wild Horses
In federal court in Reno, Nev., a group advocating for wild horses is accusing federal land managers of illegally approving plans for the largest U.S. holding facility for thousands of mustangs captured on public rangeland in 10 Western states.
Friends of Animals claims in its suit that up to 4,000 horses would be held captive inhumanely for months or years at a time in dusty, manure-filled pens without shade or wind-breaks in Nevada’s high desert. “Inhumane treatment means any intentional or negligent action or failure to act that causes stress, injury, or undue suffering to a wild horse or burro and is not compatible with animal husbandry practices accepted in the veterinary community,” the complaint states, quoting federal regulations.
The proposed holding pen, plaintiff says, is part of the government’s misguided effort to appease ranchers by accelerating roundups of mustangs competing with their livestock for public forage across much of the drought-stricken West. The Interior Department’s Bureau of Land Management broke multiple environmental and animal protection laws when it “rushed through the approval process without considering the impacts of the unprecedented facility on wild horses and burros or the local community,” plaintiff argues.
November 16, 2022 – Consumer Fraud
Three Wish Cereal Faces Lawsuit Over ’More Protein’ Claims
A proposed class action has been filed in San Francisco federal court against Three Wishes Foods Inc., alleging its Three Wish Cereal products mislead customers as to the products’ protein content by failing to show protein count as a corrected daily value.
Defendant’s products are packaged in a way that leads consumers to believe that they contain elevated protein content through messages like “More protein,” according to the complaint. However, the products do not contain “the corrected amount of protein per serving, expressed as a % [daily value].” This failure, the complaint says, is contrary to Food & Drug Administration regulations and misleads consumers into buying the product at a premium price.
In her suit, plaintiff recounts the health benefits of protein, and the desire of customers to consume protein to obtain those benefits. Plaintiff contends that the defendant fails to use the FDA-required Protein Digestibility Corrected Amino Acid score, which compensates for the differing values of certain kinds of protein. “Because of the differences in benefits depending on the amino acid composition of a protein, the source of protein is important,” plaintiff argues, adding that defendant’s use of low-quality proteins means that they actually provide far less protein to humans than the product labels claim.
November 15, 2022 – ERISA
San Jose Neurospine Sues Cigna Health to Recover ERISA Claims
In San Francisco federal court, California Spine & Neurosurgery Institute — d/b/a San Jose Neurospine (SJN) — has sued Cigna Health & Life Insurance Company, alleging Cigna’s failure to pay insurance claims in accordance with the Employee Retirement Income Security Act (ERISA).
The complaint states that SJN specializes in sophisticated surgical procedures involving minimally invasive spinal procedures, and that Cigna is an administrator of health benefit plans covered by ERISA.
From April 1, 2015, to November 22, 2021, according to the complaint, SJN provided eight surgical services for seven different patients insured under Cigna health benefit plans. SJN alleges that, before each of these procedures, it contacted Cigna to verify patient coverage before performing the surgery, and Cigna confirmed coverage. Once SJN received verification that the specified procedures were covered by a Cigna ERISA plan, SJN provided the surgery services to the patients, the complaint states. However, SJN argues, Cigna has refused to pay the claims for the procedures and has failed to adequately provide an explanation.
November 14, 2022 – Products Liability
Class Action Alleges Kia Vehicles Contain Defective Power Window System
Certain Kia Optima and Sportage vehicles have a dangerous power window system defect that poses a safety hazard to drivers and occupants, claims a proposed class action filed in federal court in Santa Ana, Calif.
In their lawsuit, plaintiffs allege that 2016-2017 Optimas and 2017 Sportages have a defective power window system that may cause the automatic windows to malfunction or be non-operational over time. In some cases, plaintiffs say, the window may fall down into the car doors and cannot be rolled up again. Malfunctioning automatic windows can pose a number of risks for vehicle drivers and occupants, plaintiffs contend, noting that windows protect occupants from ejection during a crash and provide an emergency exit if the doors are damaged.
Additionally, according to the complaint, operable side windows are important for side airbag function, protection against theft, and to prevent health risks when a vehicle is parked in a hot climate. Kia knew of the defect, the complaint says, but failed to issue a recall or notify consumers.
November 11, 2022 – Constitution
University Professors Challenge Florida’s ‘Stop W.O.K.E. Act’
A group of college professors and students has filed a lawsuit in Tallahassee, Fla., challenging Florida’s “Stop WOKE Act,” which restricts how race and gender are discussed in class.
Plaintiffs, represented by the ACLU, bring this challenge to Florida House Bill 7, formally known as the Stop Wrongs Against Our Kids and Employees, which, according to the complaint, “prohibits instructors and students from expressing viewpoints disfavored by the Florida legislature on a range of topics, including systemic racism and sexism.” Rather than allow these important issues to be debated and explored in public discourse, the complaint says, the Florida legislature — spurred on by Governor Ronald DeSantis — has endeavored to impose its own viewpoints in public higher education.
In their suit, plaintiffs allege that not only does the law prohibit instructors from teaching the legislature’s disfavored viewpoints, but its vague terms generate uncertainty about when and how the law will apply, thus creating an even greater chilling effect on academic expression. The law, plaintiffs argue, abridges First Amendment freedoms by “imposing viewpoint-based restrictions on the speech of instructors and the receipt of information by students in college classrooms,” and it violates Due Process Clause prohibitions against vagueness because it is “difficult, if not impossible, for instructors to determine what is, and is not, prohibited by its terms.”
November 10, 2022 – Consumer Fraud
Lawsuit Says Lozenges Do Not Contain ‘Honey and Lemon’ as Advertised
In a proposed class action against RB Health LLC, plaintiff alleges false and deceptive practices in the marketing and sale of the company’s sore throat lozenges, “Cepacol Extra Strength Sore Throat Honey Lemon Lozenges.”
According to the complaint filed in San Francisco federal court, the front label of the product — which contains the words “honey and lemon” along with a graphic of a lemon slice and a honey dipper — leads the consumer to believe the defendant’s product contains honey and lemon. However, the complaint says, contradictory to its labeling, the product doesn’t contain those ingredients..
Plaintiff claims in her suit that she and other consumers paid for the price of defendant’s product based on the deceptive representations about its ingredients, and if the product were portrayed accurately on its labeling, consumers either would not purchase it or would pay less for it. Defendant’s lozenges are, at best, honey and lemon flavored, unlike other lozenges products on the market which actually contain the ingredients, plaintiff says.
November 9, 2022 – Privacy
Bloomberg Accused of Sharing Subscribers’ Video Watch Histories With Facebook
A Bloomberg.com digital news subscriber has sued the company for allegedly disclosing his identity and video watch history to Facebook without proper consent under the federal Video Privacy Protection Act (VPPA).
In a proposed class action filed in Manhattan federal court, plaintiff says that defendant Bloomberg L.P., as a “video service provider,” has an obligation to keep such information confidential and now must answer to the thousands of subscribers who had their privacy rights violated. Blomberg benefits from its collection of users’ video watching histories by selling their information to advertisers, the complaint argues.
Plaintiff contends that while Bloomberg admits it collects and discloses certain digital subscriber personal information to third parties, such as postal address, email, geolocation, and internet browsing history, it does not tell users that it discloses personal viewing information, as required by the VPPA.
November 8, 2022 – Environment
California Commercial Fishing Said to Kill Endangered Whales
U.S. government authorization for commercial net fishing off the California coast is putting humpback whale populations at risk of extinction, alleges a lawsuit filed by an environmental group in San Francisco federal court.
The plaintiff, the Center for Biological Diversity, claims in its suit that the National Marine Fisheries Service (NMFS), an agency within the U.S. Commerce Department, has failed to properly limit California gillnet fishing in spite of evidence showing that the practice can injure and kill whales, populations of which migrate north every year from Mexican and Central American waters. California is the only state that permits large-scale drift gillnets, plaintiff says.
According to the complaint, NMFS in 2016 identified the Mexican whale population as threatened and the Central American population as endangered under the Endangered Species Act. During the whales’ migration and feeding, they can get caught in mile-long structures called gillnets, the complaint claims, saying that the nets also kill other unintended “bycatch,” such as dolphins, sea lions and sea turtles.
November 7, 2022 – Securities
Uber Faces Class Action Alleging Stock Prices Fell After Media Leak
Plaintiff claims that he and other shareholders in Uber Technologies Inc. were financially harmed after a cache of internal files disclosing company misconduct was leaked to The Guardian, causing the company’s stock price to drop.
In a complaint filed in federal court in Oakland, Calif., plaintiff alleges that the internal documents — dubbed the “Uber Files” — revealed troubling information about the company, including its attempts to “skirt laws and regulations around the world.”
The Uber Files, plaintiff contends, also showed that the company was willing to risk the safety of its drivers in order to advance its growth, and that Uber’s senior executives were aware of and encouraged the alleged misconduct. Uber’s stock price dropped 5.15% on July 11, 2022, after the Uber Files leaked a day prior, according to the complaint. In his lawsuit, plaintiff seeks to represent a nationwide class of consumers who purchased Uber common stock between May 31, 2019, and July 8, 2022, and who were damaged financially by the Uber Files leak.
November 4, 2022 – Product Liability
JetBlue Pilot Claims Toxic Fumes in Airbus Plane Caused His Illnesses
Toxic fumes that bled from the engine of an Airbus plane caused a JetBlue pilot to suffer a brain injury and neurological problems, alleges a lawsuit the pilot filed in Manhattan federal court.
According to the complaint, the plane in question, an Airbus model A320-232, uses an “air bleed” system involving a network of ducts and valves to conduct medium to high pressure air, “bled” from the compressor section of the engine, to various locations within the aircraft. It is well documented, the complaint says, that the interior air of an aircraft utilizing such a system can become contaminated by hydraulic fluid and other substances that are toxic to humans.
“The introduction of such toxins into the cabin, where they are then inhaled by both passengers and flight crew, is foreseeable and contemplated by manufacturers and those involved with the manufacture and sale of commercial airliners including the Defendants,” plaintiff contends, adding that the model A320 aircraft has “a long-documented history” of incidents where flight crews and passengers become ill. The Boeing 787 Dreamliner, the complaint notes, does not use bleed air systems and instead utilizes electrical compressors.
November 3, 2022 – Consumer Fraud
Coca-Cola’s Margarita Beverage Does Not Contain Tequila, Lawsuit Alleges
A proposed class action filed in federal court in White Plains, N.Y., claims Coca-Cola Co. deceives consumers by making it seem as if its Topo Chico Margarita–Hard Seltzer brand has tequila in it when in fact it does not.
The marketing on the product includes “4.5% ALC/VOL,” “Margarita Hard Seltzer” and a yellow backdrop of agave plants, the source crop for tequila, according to the complaint. The front of the cans state “Naturally Flavored With Other Natural Flavors,” but this does not tell consumers the drinks are flavored beers that purport to taste like a margarita, the complaint says.
Plaintiff in her suit argues that consumers expect to receive a cocktail containing tequila when they order a margarita as this ingredient defines what a margarita is. “Merriam-Webster dictionary defines a ‘margarita’ as ‘a cocktail consisting of tequila, lime or lemon juice and an orange-flavored liqueur,’” plaintiff says.
November 2, 2022 – Unfair Trade
Harley-Davidson Faces Lawsuit Challenging ‘Right to Repair’ Restrictions
In San Francisco federal court, plaintiff has filed a proposed class action alleging that Harley-Davidson Motor Co. sells motorcycles with warranties that condition the continued validity of the warranty on the use of “only an authorized repair service and/or authorized replacement parts.”
Requirements that condition a consumer product’s warranty on the use of a specific repair service or the use of authorized parts is, according to the complaint, a violation of the Magnuson-Moss Warranty Act. Harley Davidson’s authorized dealers provide service at a price-premium compared to the cost of independent service, and its authorized parts are also sold at a price-premium compared to the cost of non-Harley-Davidson parts and supplies, the complaint says.
The result is that consumers are forced to pay for the more expensive repairs, maintenance and parts for their motorcycle from authorized Harley-Davidson dealers, plaintiff says in his suit. “In other words, if a consumer repairs his or her own motorcycle or uses an independent dealer and/or installs unauthorized parts or accessories on his or her motorcycle, Harley-Davidson threatens that it will void the warranty.”
November 1, 2022 – Privacy
NFL Accused of Unlawfully Sharing Subscriber Info With Facebook
A group of National Football League website subscribers has filed a proposed class action against the league, alleging it tracked and stored their data and gave it to Facebook without their consent.
In their suit filed in Manhattan federal court, plaintiffs are claiming that in disclosing their private information, the NFL has violated the Video Privacy Protection Act (VPPA).
Plaintiffs allege that as NFL subscribers they were not advised that their personal identifying information would be captured by tracking methods used by the NFL and then transferred to Facebook. According to the complaint, this practice is in violation of the VPPA, which prohibits companies that provide videos from sharing personally identifiable information without valid consent.
October 31, 2022 – Environment
Environmental Groups Sue Over Feds’ Failure to Rule on Gray Wolf
A coalition of environmental groups has filed suit in federal court in Missoula, Mont., against the U.S. Fish & Wildlife Service, alleging failure on the part of the agency to take action under the Endangered Species Act (ESA) to issue its determination on the conservation status of the gray wolf.
Under the ESA, the complaint says, Fish & Wildlife is required to make a finding regarding the listing of a species as endangered within 12 months of a citizen petition being filed. On May 26, 2021, the plaintiffs — including the Center for Biological Diversity and the Sierra Club — filed a formal petition with the agency requesting that it list as endangered a specific population segment of gray wolves. Fish & Wildlife has failed to act on this petition, plaintiffs claim.
Plaintiffs assert in their suit that gray wolves in the U.S. have over the past two centuries been “driven to the brink of extinction.” While there have been some efforts to reintroduce the species into the Rocky Mountain area, plaintiffs say, the states of Idaho and Montana have recently changed their wolf hunting and trapping regulations, which has led to the species being placed in danger again. Thus, plaintiffs argue, action by Fish & Wildlife to protect the wolves is an urgent matter.
October 28, 2022 – Constitution
Transgender Student Sues Tennessee Over School Bathroom Law
A transgender child and her parents have sued the Tennessee Department of Education over a state law that prohibits transgender students and staff from using school bathrooms or locker rooms that match their gender identities.
The suit was filed in federal court in Nashville, Tenn., by a student identified only as D.H. According to the complaint, D.H. was assigned male at birth but identifies as female. D.H., who is now eight years old, began living as a girl at the age of six, the complaint says.
The school initially agreed to support D.H.’s social transition, the complaint says, but by January of 2022, the “administration could not provide D.H. with the support she needed to complete her social transition, because Tennessee law prevents her from using the girls’ bathroom at school. The school accommodates D.H. by letting her use one of four single-occupancy restrooms, which “reinforce the differential treatment” of D.H., the lawsuit argues, saying that this violates her constitutional rights under the Equal Protection Clause and also violates Title IX of the 1972 federal law that prohibits sex discrimination in education.
October 27, 2022 – Securities
SEC Charges Surgical Implant Manufacturer With Accounting and Disclosure Fraud
The U.S. Securities & Exchange Commission has charged Surgalign Holdings Inc. (formerly RTI Surgical Holdings Inc.) and two former executives with masking disappointing sales numbers by shipping future orders ahead of schedule to accelerate, or “pull forward,” revenue and then failing to disclose this practice to investors.
RTI’s reliance on pull-forwards cannibalized future revenue streams and damaged important customer relationships while the company reassured investors it was meeting revenue guidance, the SEC says in its lawsuit filed in federal court in the District of Columbia.
The SEC further alleges in its suit that RTI sometimes shipped orders early without customer approval and recognized revenue for those shipments prematurely, in violation of generally accepted accounting principles, and that RTI’s former executives named in the complaint permitted RTI to recognize revenue for such shipments. The agency accuses the executives of violating antifraud and other provisions of federal securities laws and seeks civil penalties and the return of bonuses and profits from sales of RTI stock, among other relief.
October 26, 2022 – Privacy
Rite Aid Accused of Unlawful Keystroke Monitoring on Its Website
Rite Aid Corp. secretly deploys keystroke monitoring software on its website to “surreptitiously intercept, monitor and record the communications” of its visitors, alleges a proposed class action filed in federal court in Riverside, Calif.
In her lawsuit, plaintiff claims that Rite Aid violates the California Invasion of Privacy Act by failing to inform website visitors or get their express or implied consent prior to surveilling them. “Without warning visitors or seeking their consent, Defendant has secretly deployed wiretapping software on its website,” according to the complaint.
Rite Aid’s conduct, plaintiff argues, is “both illegal and offensive” given how concerned consumers are today about their digital privacy. “Defendant’s actions amount to the digital trifecta of looking over its consumers’ shoulders, eavesdropping on consumers’ conversations, reading consumers’ journals,” plaintiff says. Further, plaintiff alleges that defendant deploys a “sophisticated chatbot” that “convincingly impersonates an actual human that encourages consumers to share their personal information.”
October 25, 2022 – Fair Credit Reporting Act
Equifax Said to Misrepresent Credit Scores for Potentially Millions of Customers
Credit-reporting company Equifax Inc. has been accused of knowingly allowing a glitch in its coding system to result in inaccurate credit scores for potentially millions of consumers.
In a proposed class action filed in Atlanta federal court, plaintiff claims she ended up paying more for an auto loan because of a 130-point discrepancy in her credit score. According to the complaint, reports from consumers and news media showed Equifax sent erroneous credit scores for individuals applying for lines of credit over a three-week period earlier this year.
Equifax officials acknowledged in May 2022 that “there had been a coding issue within a program slated for replacement,” the complaint says, citing an Aug 2 Wall Street Journal article that reported Equifax sent inaccurate scores on millions of consumers to lenders. Plaintiff in her lawsuit is claiming willful and negligent violations of the federal Fair Credit Reporting Act.
October 24, 2022 – Consumer Fraud
Class Action Says Target Charges More Than Shelf-Advertised Prices
arget Corp.‘s shelf-posted prices frequently misrepresent the amount customers are charged at checkout, causing many to overpay for the advertised merchandise, alleges a proposed class action filed in Chicago federal court.
The false and misleading shelf pricing affects various merchandise throughout Target’s stores, with consumers paying at least 5% to 20% more than the advertised prices, according to the complaint. “As a result,” the complaint says, “consumers fall victim to a classic ‘bait and switch,’ and unknowingly pay a higher price for the falsely-advertised merchandise at checkout.”
In his lawsuit, plaintiff claims that “Target is well aware that it is deceiving its consumers.” In fact, plaintiff says, Target has been fined for this practice in multiple states. But preventing the company from continuing its deceptive practices has thus far “been a game of whack-a-mole,” plaintiff says, because even when Target is fined, the fines are a drop in the bucket as compared with the hundreds of millions of dollars the company profits each year from selling overcharged goods.
October 21, 2022 – Intellectual Property
Roblox Sues Toymaker WowWee Over Avatar Figurines
A line of dolls produced by WowWee Group Ltd. are based on Roblox Corp’s online gaming avatars and violate its copyrights and trademarks, Roblox alleges in a lawsuit filed in San Francisco federal court.
Roblox, according to the complaint, is one of the world’s most popular online gaming sites and one of the first companies to focus on the metaverse. Its platform allows users to build “experiences” like games, events and virtual places, which they visit with character avatars. Defendant WowWee’s “My Avastars” dolls unlawfully copy the distinctive blocky designs of player avatars in Roblox’s popular game platform, the complaint claims.
“Observing the centrality of Roblox’s avatars to its success,” the complaint says, “WowWee saw a chance for a quick buck, and chose to exploit Roblox’s success — its brand, its reputation, its goodwill, and its intellectual property — without ever involving Roblox.” Roblox says it already has a deal with another company to make avatar dolls, and that WowWee never asked for a similar license.
October 20, 2022 – Labor & Employment
Amazon Fails to Allow Adequate Breaks for Workers to Pump Breast Milk, Lawsuit Alleges
Amazon.com Inc faces a proposed class action claiming it failed to provide breaks and appropriate facilities for warehouse workers to pump breast milk.
Plaintiff says in her lawsuit filed in Los Angeles federal court that the 640,000-square-foot warehouse in Beaumont, Calif., where she works only has one small room dedicated to nursing mothers who need to pump milk. Women often wait in long lines to use the single room dedicated to pumping, plaintiff says, and their paid breaks are not long enough to cover the time it takes to walk to the room, pump and clean up.
Further, workers must take unpaid breaks or forego pumping because of Amazon’s strict production quotas, plaintiff claims, saying the company is in violation of federal and California laws that require employers to provide nursing mothers with reasonable break times and appropriate places to express milk.
October 19, 2022 – Constitution
Challenge to Florida’s ‘Don’t Say Gay’ Law
A group of parents has sued four Florida school boards to stop their implementation of curriculum changes following the passage of a state law, HB 1557 — referred to in the media as the “Don’t Say Gay” law — prohibiting discussion of sexual orientation and gender identity from kindergarten through third grade.
In their complaint filed in federal court in Orlando, Fla., the parents claim the law is “profoundly vague” and requires schools to ban undefined broad categories of speech based on undefined standards such as “appropriateness.” This, the parents say, violates the free speech clause of the First Amendment to the U.S. Constitution and the due process clause of the Fourteenth Amendment.
The parents further allege in their lawsuit that HB 1557 inflicts harm not only on gays but also on transgender people and others who identify as members of the LGBTQ+ community. “The law, by design, chills speech and expression that have any connection, however remote, to sexual orientation or gender identity,” the parents contend.
October 18, 2022 – Product Liability
Walmart Accused of Failing to Warn Pregnant Women About Risks of Acetaminophen
A Minnesota mother claims in a lawsuit against Walmart Inc. that the company failed in its responsibility to warn expecting mothers about autism risks from the drug acetaminophen — the active ingredient in Tylenol — which she says caused her child to develop the disorder.
According to the complaint filed in the U.S. District Court for the District of Minnesota, plaintiff took acetaminophen purchased from a Walmart store in late 2016, through the birth of her child in 2017. During her pregnancy, plaintiff says she took the painkiller three to six times per week for back pain and body aches.
“Plaintiff Mother started noticing issues with [her child] when he was an infant, as he was delayed in achieving developmental milestones and in the ability to speak,” the lawsuit states. “[The child] remains non-verbal as of the filing of this complaint.” Plaintiff says her child was diagnosed with autism in January 2021, and he is now enrolled in special education classes.
October 17, 2022 – Consumer Fraud
FTC Says Companies Falsely Claimed Their Products Manufactured in U.S.
In a lawsuit filed in Cleveland federal court, the U.S. Federal Trade Commission alleges that defendants Axis LED Group LLC and ALG-Health LLC falsely marketed and sold lighting products and personal protective equipment, respectively, containing significant Chinese inputs, as being “Made in the United States (MUSA).”
Defendant Axis LED sells lights, tubes and fixtures, and defendant ALG-Health sells personal protective equipment (PPE) due to the demand resulting from the Covid-19 pandemic. According to the FTC complaint, Axis introduced an LED line called “Patriot Tubes” as being MUSA, when they were actually made in China and assembled in the United States. The company stated on its website that “advances in manufacturing processes and efficiency have finally allowed us to produce USA-made products at competitive prices.”
Defendant ALG marketed the PPE as being Made in the USA, and encouraged consumers to “purchase American-made PPE and masks so that our heroic frontline workers do not have their safety put at risk by relying on foreign-made products.” However, the FTC contends, the PPE came almost exclusively from China, and that the defendant’s employees peeled off Made in China labeling to replace it with MUSA labeling. The FTC is seeking an injunction preventing the defendants from further violations of the FTC Act and the MUSA Labeling Rule, along with monetary and other relief.
October 14, 2022 – Cybersecurity
ACTS Retirement Sued Over Data Breach of Employee Personal Information
ACTS Retirement Services Inc., one of the nation’s largest not-for-profit operators of continuing care retirement communities, has been hit with a proposed class action filed in Philadelphia federal court over a data breach that allegedly compromised the sensitive personal information of thousands of its current and former employees.
Plaintiff claims in her suit that ACTS was negligent in securing employee information, which allowed cyber criminals to infiltrate the company’s network in April 2022, exposing employees’ names, Social Security numbers, financial account data, and other personal identifiable information (PII).
ACTS found out about the breach on May 2, the complaint says, but did not begin notifying plaintiff and other employees that their PII had been compromised until nearly two months later. “Defendant’s failure to timely detect and report the Data Breach made its current and former employees vulnerable to identity theft without any warnings to monitor their financial accounts or credit reports to prevent unauthorized use of their PII,” plaintiff alleges, adding that ACTS failed to properly use up-to-date security practices to prevent the breach.
October 13, 2022 – Privacy
L’Oreal’s Virtual Try-on Tool Violates Privacy, Lawsuit Alleges
L’Oreal USA Inc. faces a proposed class action filed in Chicago federal court, alleging the company’s virtual try-on tool collects users’ biometric facial information without their informed consent.
The case, according to the complaint, involves L’Oreal’s “Try It On” feature on the company’s websites that allows consumers to test a product virtually. To use this tool, the complaint says, customers can upload a photo of themselves or use their phone or computer camera to display such a photo. The virtual try-on tool is powered by ModiFace, an application that captures facial geometry from users’ photos to accurately overlay virtual makeup products onto the image.
The lawsuit argues that failure to notify consumers about collection of facial data violates the Illinois Biometric Information Privacy Act (BIPA). Under BIPA, the complaint says, companies that collect certain biometric data must first obtain consumers’ informed consent before collecting the data and take steps to protect it. Additionally, they must inform consumers about their policy regarding the use, retention and destruction of biometric data.
October 12, 2022 – Antitrust
Justice Dep’t Sues Poultry Producers, Alleging Unfair Worker Practices
The U.S. Department of Justice (DOJ) has filed a civil lawsuit against three of the largest poultry producers in the U.S., seeking to end what it claims have been longstanding deceptive and abusive restraint of trade practices that resulted in lower pay for workers.
The suit, filed in federal court in Baltimore, Md., names as defendants Cargill Inc., Sanderson Farms, and Wayne Farms, along with a data consulting company, accusing them of engaging in a multiyear conspiracy to exchange information about the wages and benefits of workers at poultry processing plants in order to drive down employee competition in the marketplace.
DOJ contends in its suit that the data consulting firm helped to share the information about the workers’ compensation with the defendant companies and their executives. By carrying out the scheme, DOJ alleges, the companies were able to compete less intensely for workers and reduce the amount of money and benefits they had to offer their employees, suppressing competition for poultry processing workers across the board. Generally, the complaint says, chicken producers enter long-term contracts with meat companies that farmers claim lock them into deals that fix their compensation at unprofitably low levels.
October 11, 2022 – Product Liability
Lawsuit Claims Meta’s Instagram Caused Eating Disorders
Facebook-owner Meta Platforms Inc. faces a lawsuit filed in San Francisco federal court, accusing it of fueling eating disorders and other mental health problems in teenage users of its Instagram photo sharing service.
According to the complaint, Instagram allows users to post pictures and uses an automated algorithm to show them other users’ pictures. This algorithm, the complaint says, encouraged eating disorders by showing the plaintiffs — two female teenagers — pictures of very thin models and content related to extreme exercise. The plaintiffs were hospitalized on multiple occasions, the complaint says.
Plaintiffs contend that Meta knew that some people became addicted to the service, and that teenagers were especially vulnerable. Plaintiffs also say that the company failed to verify users’ ages, allowing both plaintiffs to join when they were only 12 despite a nominal minimum age of 13, and failed to shield minors from sexual messages. Further, plaintiffs say, the algorithm recommended “‘friends’ who were, in fact, adult Instagram users either suffering from these mental health issues themselves or using the Instagram product to find and exploit young girls.
October 10, 2022 – Antitrust
Pet Owners Sue Veterinary Manufacturer, Claiming Inflated Prices
In a proposed class action filed in San Francisco federal court, pet owners claim veterinary products maker IDEXX Laboratories restrained competition for diagnostic testing, causing consumers to pay artificially high prices for animal health services.
The lawsuit, which was filed by pet owners in 14 states, alleges that IDEXX has abused its market power since 2018 through exclusive and long-term contracts with veterinary practices across the country. “Because IDEXX has prevented actual or potential rivals from gaining a foothold in the relevant market and submarkets, it has eliminated or impaired the price discipline that would come from free and fair competition,” the complaint says.
The pet owners claim in their suit that IDEXX implemented restrictive six-year contracts with veterinarian practices that include steep purchase requirements and ‘disloyalty’ penalty provisions. The suit focuses on “inhouse point-of-care” diagnostic testing devices that, according to the complaint, are used to treat family pets and other companion animal patients when fast test results are needed.
October 7, 2022 – Intellectual Property
SolarEdge Faces Patent Lawsuit Filed by Rival Solar-Power Company
Solar energy company Ampt LLC has sued SolarEdge Technologies Inc. for allegedly violating several of plaintiff’s patents related to solar power.
In its lawsuit filed in Delaware federal court, Ampt claims that SolarEdge’s systems infringe eight patents related to Ampt’s power optimizers for photovoltaic systems. The patents, the complaint says, cover improved methods for converting sunlight into usable energy, and SolarEdge’s optimizers and other components infringe these patents.
Ampt says its technology enhances efficiency and reduces costs for solar-power systems. The company is asking the court for an unspecified amount of money damages and a court order banning sales of the infringing systems.
October 6, 2022 – Consumer Fraud
H&M Accused of False and Misleading ‘Sustainability Profiles’ for Its Products
Fashion house H&M Hennes & Mauritz LP is alleged to mislead consumers about the sustainability and eco-friendliness of its products, in a proposed class action filed in federal court in White Plains, N.Y.
Plaintiff claims in her lawsuit that H&M’s fast-fashion business model has suffered in recent years as consumers become more inclined to purchase products marketed as sustainable. “The goal of H&M’s advertising scheme is to market and sell products that capitalize on the growing segment of consumers who care about the environment, but H&M does so in a misleading and deceptive way,” plaintiff contends.
In an effort to attract more customers, the complaint says, H&M prominently displays “Sustainability Profiles” on its website, which include product listings for hundreds of H&M products. However, the complaint argues, these profiles include falsified information that does not match the underlying data. “For example, one Sustainability Profile claimed that a dress was made with 20% less water on average when it was actually made with 20% more water,” the complaint alleges, adding that many so-called sustainable H&M products end up in landfills.
October 5, 2022 – Privacy
Class Action Alleges Spectrum Places Unsolicited Robocalls
Spectrum violates the law by contacting consumers with unsolicited marketing robocalls without receiving consent, alleges a proposed class action filed in federal court in Cincinnati, Ohio.
Plaintiff claims in his lawsuit that Spectrum uses third-party vendors to place unsolicited and automated sales calls to consumers like himself who have never entered into a contract with the telecommunications company or consented to be contacted on its behalf. Such sales calls, plaintiff argues, are in violation of the Telephone Consumer Protection Act.
“Frustrated and concerned with the escalation of Defendant’s invasive telemarketing practices, Plaintiff retained counsel to file this action to compel Defendant to cease its unlawful practices,” states the complaint, adding that plaintiff seeks to represent a nationwide class of consumers who are not customers of Spectrum, yet have received unsolicited and automated sales calls on its behalf without consent within the last four years.
October 4, 2022 – Disability Act
Delmonico’s Website Inaccessible to Blind, Visually Impaired, Lawsuit Alleges
Plaintiff claims in suit filed in federal court in Orlando, Fla., that Delmonico’s Italian Steakhouse of Florida does not provide a mobile website that is fully accessible to blind and visually impaired individuals, in violation of the Americans with Disabilities Act.
In her suit, plaintiff contends that Delmonico’s website does not interact properly with VoiceOver screen reader software technology used by blind and visually impaired individuals to access mobile websites. Thus, plaintiff argues, Delmonico’s is denying blind and visually impaired consumers equal access to the goods and services on its mobile website on account of the accessibility issues.
Plaintiff says that she will continue to be denied equal access to the goods and services offered on Delmonico’s website. “Defendant and alike restaurants are fully aware of the need to provide full access to all visitors to its mobile website as such barriers result in discriminatory and unequal treatment of individuals with disabilities who are visually impaired.”
October 3, 2022 – Product Liability
Skittles Candy Said to Be ‘Unfit for Human Consumption’ Due to Toxin Risks
A proposed class action filed in San Francisco federal court alleges that food product manufacturer Mars Corp. missed a self-imposed five-year deadline to remove titanium dioxide from its popular multi-colored Skittles candy.
According to the complaint, the lawsuit follows years of concerns about the side effects of food coloring additives as possibly being unfit for human consumption and posing cancer risks, due to the use of titanium dioxide. Plaintiff claims in her suit that Skittles are “unsafe for human consumption because they contain titanium dioxide, a known toxin,” which places consumers at an increased risk of serious health effects due to the ability of the chemical to cause DNA changes.
Defendant Mars, the complaint says, first made a commitment to begin removing titanium dioxide from its best-selling Skittles and many other food products in 2016, after a growing body of medical research identified artificial food coloring additives such as titanium dioxide as possibly causing the growth of cancerous tumors. But defendant, the complaint alleges, has refused to remove the toxic chemical from Skittles products due to its reliance on the food coloring additive to continue effectively marketing its products, which are built on the candy’s “rainbow” colors.
September 30, 2022 – Antitrust
Class Action Says Amazon’s Illegal Price-Fixing Inflates Consumer Prices
In a proposed class action filed in Seattle federal court, plaintiffs allege Amazon.com has anticompetitive minimum margin agreements with its suppliers that are in place to prevent other online retailers from offering the same product at a lower price.
Plaintiffs contend in their suit that Amazon is restraining competition from its rivals and, in doing so, artificially raising the online retail price for thousands of brands that it sells. “Instead of Amazon risking its own profit margins to compete with its retail rivals on price, Amazon contractually shifts that risk to its suppliers,” the complaint says. Plaintiffs seek to represent a class of consumers who purchased a product from Amazon that was subject to a minimum margin agreement since July 13, 2018.
The minimum margin agreements in place between Amazon and its suppliers guarantee that the defendant will “be able to price the supplier’s product competitively against other online competition at least 95% of the time,” plaintiffs argue. Further, they say, the agreement allows Amazon to receive a minimum margin for each sale that is made, regardless of the actual price the product is ultimately sold at for retail. “Amazon enforces this agreement by requiring its suppliers to compensate it monthly for any lost margins necessitated by lowering its retail price to match a competitor,” plaintiffs claim.
September 29, 2022 – Intellectual Property
Puma Accuses Brooks of Infringing ‘Nitro’ Running Shoe Trademark
Sportswear maker Puma SE, based in Germany, has sued Berkshire Hathaway’s Brooks Sports Inc. in federal court in Indianapolis, Ind., alleging Brooks’ advertising for sneakers with nitrogen-infused soles violates Puma’s “Nitro” trademark rights.
PUMA has been using its NITRO mark on footwear since at least March 2021, the complaint says, and its NITRO-branded running shoes are currently PUMA’s top-selling running shoes in the U.S. In its lawsuit, Puma also accuses Brooks of violating a design patent by copying the foam-molding technology Puma uses in its Nitro shoes for Brooks’ Aurora BL running shoes.
Puma says it has invested significant energy and resources in promoting its NITRO-branded products, and has developed “substantial and valuable goodwill in its NITRO mark and owns strong common law rights in the NITRO mark across the United States relating to footwear.”
September 28, 2022 – Labor & Employment
Dollar General Managers Misclassified as Salaried, Lawsuit Alleges
Managers at Dollar General stores, the largest discount retailer in the United States with more than 18,200 store locations, are misclassified as salaried workers, exempt from overtime pay, when they should really be hourly and entitled to such pay, two managers allege in a proposed class filed in federal court in Birmingham, Ala.
Plaintiffs claim in their suit that they are entitled to be paid at least one and one-half times their regular pay rates for each hour over forty hours they work during the workweek, as required by the Fair Labor Standards Act (FLSA). But, plaintiffs say, defendant Dollar General refused to pay overtime, saying plaintiffs were “managers” and thus defendant was exempt from the overtime requirement.
But, the complaint says, Dollar General’s store managers hold that position “only in name” and spend the “vast majority” of their work hours on manual labor such as stocking shelves, unloading trucks and cleaning store bathrooms. Thus, the complaint argues, plaintiffs were wrongly classified as salaried managerial workers exempt from FLSA overtime requirements.
September 27, 2022 – Product Liability
Lawsuit Says Anemia Drug Injectafer Caused ‘Dangerously’ Low Levels of Phosphate
Plaintiff claims in Philadelphia federal court that she was not warned by manufacturers of anemia drug Injectafer of the risk of abnormally low phosphate levels caused by the drug.
According to the complaint, Injectafer involves iron infusion treatment for adults with anemia, who are not able to be treated with an oral iron supplement and have non-dialysis dependent chronic kidney disease. Plaintiff alleges in her lawsuit that Injectafer caused her phosphate “to drop to dangerously low levels,” resulting in severe health complications.
Plaintiff says she was prescribed Injectafer in December 2019, after being diagnosed with iron deficiency anemia, and received two injections that month. However, she claims, the Injectafer injections caused her phosphate levels to drop suddenly, resulting in various symptoms including: muscle spasms, muscle fatigue, bone pain, weakness, headaches, lightheadedness, memory loss, and renal phosphate wasting. Defendants in the suit include: Luitpold Pharmaceuticals Inc., American Regent Inc., Daiichi Sankyo Inc., and Vifor International.
September 26, 2022 – Constitution
Gun-Rights Advocates Challenge California Ban on Firearms Marketing to Kids
In Los Angeles federal court, the publisher of a youth shooting magazine and several gun-rights groups have filed a lawsuit challenging a recently enacted California law banning the marketing of guns to minors by manufacturers and others in the firearms industry.
Plaintiffs — including the publisher Junior Sports Magazines Inc. and pro-gun groups including the Second Amendment Foundation — argue that the California law violates their free speech rights under the U.S. Constitution’s First Amendment. The legislation, according to the complaint, cleared the state’s legislature days after the U.S. Supreme Court on June 23, 2022, ruled that the Second Amendment protects a person’s right to carry a handgun in public for self-defense. In their suit, plaintiffs claim the California legislation went too far in abridging their speech rights.
They say it wrongly prohibits the promotion of lawful firearm-related events and impermissibly restricts pro-gun organizations from promoting membership in their groups in ways deemed “attractive to minors.”
September 23, 2022 – Breach of Contract
Meta Sues Company for Scraping Data From Facebook and Instagram
Meta has filed a lawsuit in San Francisco federal court against Octopus Data Inc., alleging that the company offers unlawful data scraping-for-hire services to individuals and companies.
The complaint describes Octopus, which claims to have over one million customers, as the U.S. subsidiary of a Chinese multinational tech firm. Octopus offers scraping services and access to software that customers can use to scrape any website. These activities, the complaint says, violate Meta’s terms of service and the Digital Millennium Copyright Act. For a fee, Octopus customers can launch scraping attacks from their cloud-based platform or hire Octopus to scrape websites directly.
After paying for access to the scraping software, the complaint says, customers self-compromise their Facebook and Instagram accounts by providing Octopus with their authentication information. Octopus designed its software, Meta says, to scrape data accessible to users when logged into their accounts, including data about their Facebook Friends such as email address, phone number, gender and date of birth, as well as Instagram followers and engagement information such as name, user profile, and number of likes and comments per post.
September 22, 2022 – Environment
Conservation Groups File Lawsuit on Behalf of Native Utah Tree Habitats
The Defenders of Wildlife and the Southern Utah Wilderness Alliance have filed a complaint in District of Columbia federal court against the Department of Interior and the Bureau of Land Management over their adoption of the “Pinyon-Juniper Categorical Exclusion Rule” that allegedly would allow for the destruction of native pinyon-juniper tree habitats in Utah without analysis mandated by the National Environmental Policy Act (NEPA).
According to the complaint, the defendants’ exclusion rule amends NEPA protocols by adopting a “categorical exclusion.” If a project falls under this category, the complaint says, no Environmental Impact Statement mandated by NEPA would be required in order to carry the project out. The project in question, plaintiffs say, could destroy up to 10,000 acres of “pinyon pine and juniper forests across habitat for the greater sage-grouse and mule deer.”
By adopting this rule, plaintiffs claim, the defendants are acting in an arbitrary and capricious manner because their rule is “riddled with errors and oversights, and is inconsistent with the best available scientific information.”
September 21, 2022 – Consumer Fraud
CVS Faces Allegation That It Deceives Consumers Over Proper Use of Cotton Swabs
A proposed class action filed in federal court in Ft. Lauderdale, Fla., claims pharmacy chain CVS sells cotton swabs — commonly known as Q-tips — without adequately warning customers that the product is not safe for cleaning ears.
Plaintiff says in his suit that decades of industry marketing has taught consumers to use cotton swabs to clean out ear wax. However, plaintiff adds, otolaryngologists agree that the practice of self-cleaning wax from the ear with a cotton swab is dangerous and not medically advised as it can perforate the eardrum. Most cotton swab brands, plaintiff notes, have added warnings to their products to caution against entering the ear canal with the swab.
However, according to the complaint, the widely sold cotton swabs marketed by CVS do not adequately warn consumers of the risks of using swabs to clean the ears. The warning on the box cautions to “use in outer ear only!” the complaint states, adding that this warning lacks the detail and specificity to keep consumers safe.
September 20, 2022 – Antitrust
Apple Accused of Antitrust Violations over Apple Pay
Apple Inc. has been sued in a proposed class action accusing the company of abusing its market power in mobile devices to limit competition for its Apple Pay mobile wallet.
According to the complaint, filed in federal court in San Jose, Calif., Apple “coerces” consumers who use its smartphones, smart watches, and tablets into using Apple’s own wallet for contactless payments, unlike makers of Android-based devices that let consumers choose wallets such as Google Pay and Samsung Pay.
The plaintiff, Iowa’s Affinity Credit Union, says in its suit that Apple’s anticompetitive conduct forces the more than 4,000 banks and credit unions that use Apple Pay to fork over at least $1 billion in excess fees annually for the privilege. Plaintiff further alleges that Apple’s conduct minimizes the incentive for the company to make Apple Pay work better and more resistant to security breaches. “Apple’s conduct harms not only issuers, but also consumers and competition as a whole,” the complaint says.
September 19, 2022 – Product Liability
Lawsuit Alleges ‘Catastrophic’ Ford Powershift Transmission Defect
Ford concealed a defect in certain Ford Fiestas and Ford Focus vehicles that can cause jerking, difficulty stopping, and even engine failure, according to a proposed class action filed in federal court in Wilmington, Del.
In their suit, plaintiffs seek to represent anyone in who purchased or leased 2017-2019 Ford Fiesta and 2017-2018 Ford Focus vehicles equipped with dual clutch transmissions. Ford designed and marketed its “PowerShift Transmission” as a more advanced and fuel-efficient alternative to a traditional manual or automatic transmission, plaintiffs say, adding that an automated manual transmission should have the convenience of an automatic transmission without sacrificing the fuel efficiency and shift speed of a manually shifted vehicle.
“In practice, however, Ford’s PowerShift Transmission is plagued by numerous problems and safety concerns,” plaintiffs allege. The transmissions suffer from a defect that causes transmission slips, bucking, kicking, jerking, harsh engagement, premature internal wear, sudden acceleration, delay in downshifts, delayed acceleration, and difficulty stopping. This defect eventually causes “catastrophic transmission failure,” plaintiffs contend.
September 16, 2022 – Labor & Employment
EEOC Sues Company for Firing 2 Employees who Refused Christian Prayer Sessions
The Equal Employment Opportunity Commission has sued a North Carolina company which the agency says fired two employees who refused to participate in the firm’s Christian prayer meetings.
According to the complaint filed in federal court in Greensboro, N.C., the defendant, Aurora Pro Services, a residential home service and repair company, violated federal law when it required employees to participate in religious prayer sessions as a condition of employment and retaliated against employees who opposed the practice. Title VII of the Civil Rights Act of 1964, the complaint says, prohibits religious discrimination, harassment, and retaliation in the workplace.
The EEOC alleges in its lawsuit that Aurora Pro required all employees to attend daily employer-led Christian prayer meetings. Aurora’s owner took roll before some of the meetings and reprimanded employees who did not attend, the agency says. When a construction manager asked to be excused from the prayer portion of the meetings in the fall of 2020, the company refused to accommodate the employee’s religious beliefs (atheist) and fired him. A few months later, the agency says, defendant terminated a customer service representative who stopped attending the prayer meetings because the meetings conflicted with her religious beliefs (agnostic).
September 15, 2022 – Consumer Fraud
Olly Melatonin Sleep Aids Mislabeled, Lawsuit Claims
Olly Melatonin Sleep Aids contain more melatonin than stated on the label, potentially putting users at risk, alleges a proposed class action filed in San Francisco federal court.
The defendant, Olly Public Benefit Corp., manufactures and markets melatonin supplements, the complaint says, which are intended to treat sleep problems, anxiety and more. Each product is advertised to possess a specific amount of melatonin. Despite the labeling, which notes the supposed amount of melatonin in a given product, scientific testing has revealed that the defendant’s melatonin products contain “substantial and random overdoses of melatonin,” the complaint claims.
Plaintiffs say in their lawsuit that millions of consumers take over-the-counter melatonin supplements to help them sleep, and because the product alters brain chemistry, it is important that these supplements be accurately dosed and labelled. When purchasing a bottle of Olly Melatonin, plaintiffs say, they expect the product to contain the dosage of melatonin that it was advertised to contain, so consumers aren’t unknowingly ingesting more melatonin than they intend to take. Plaintiffs note that the defendant’s product packaging even states on its bottles that it does not recommend ingesting more melatonin than the suggested serving.
September 14, 2022 – Product Liability
Amazon Accused of Selling Defective PlayStation 5 Consoles
A proposed class action filed in Chicago federal court accuses Amazon.com Inc. of knowingly selling defective PlayStation 5 consoles that suddenly crash during gameplay.
The PS5, released in November 2020, is one of the products that Amazon sells on its online marketplace, Amazon.com, according to the complaint. The PS5 contains a defect, the complaint alleges, that causes the console to suddenly crash and power down while the user is playing video games — such games being the primary function of the product.
Plaintiff claims in his lawsuit that the console defect affects users’ ability to play video games, thus compromising the primary function and overall usage of the PS5. Amazon, which was in control of the advertising and sale of the PS5 on its own marketplace, was aware of the defect through online consumer complaints and the overall recognition of the defect in the gaming community, plaintiff contends, adding that despite its knowledge of the defect, defendant failed to disclose it to consumers prior to their purchasing the PS5, nor has the company taken any substantial action to remedy the problem.
September 13, 2022 – Environment
EPA Sued Over Ozone Levels in California and New Hampshire
The Center for Biological Diversity and the Center for Environmental Health have sued the Environmental Protection Agency in San Francisco federal court, seeking to address the ozone air pollution in certain areas of California and in the state of New Hampshire.
Ozone leaks in the environment can not only harm vegetation and ecosystems, the environmental groups claim in their suit, but can cause worsening respiratory and cardiovascular health, increased likelihood of early death, increased asthma-related hospital admissions, increased likelihood of children developing asthma as adolescents, and lower birthweights and decreased lung function in newborns. The complaint states that the Clean Air Act empowers the EPA to set National Ambient Air Quality Standards for critical pollutants in the air. But, plaintiffs say, the agency has failed to do so for
areas of Los Angeles-San Bernardino Counties, Sacramento Metro Area, and New Hampshire. Thus, plaintiffs argue, the EPA is not fulfilling its mandatory duty to safeguard public health in these regions. The plaintiffs are seeking a court order that the EPA is in violation of the Clean Air Act, and injunctive relief enjoining the EPA to perform its mandatory duties in a reasonable amount of time.
September 12, 2022 – Breach of Contract
Coca-Cola’s Rewards Program is Unlawful, Lawsuit Alleges
Plaintiff claims in a proposed class action filed in federal court in Buffalo, N.Y., that Coca-Cola’s rewards program is an “unlawful trading stamp.”
According to the complaint, a rewards program is similar to discount programs in which companies encourage consumer purchases with incentives. On the inside of Coke’s bottle caps are alphanumeric codes that allow for participation in its reward program to redeem the codes. In the defendant’s rewards program, however, plaintiff says that there is nothing to be redeemed or “rewarded” with. Whereas previously one could redeem items such as movie tickets, the current Coke Rewards program only allows for consumers to donate their accumulated rewards to charities.
The Coke Rewards program, plaintiff argues, is not in fact a rewards program but a Trading Stamp, the use of which is subject to regulation in a number of states, including New York. Under New York state law, plaintiff says, defendant’s rewards program is an illegal trading stamp because the bottle caps do not have a legible cash value printed on them that can be redeemed for that cash value from the defendant.
September 9, 2022 – Cybersecurity
Health Care Company Accused of Negligence in Data Breach
In a proposed class action filed in Boston federal court, plaintiff claims Shields Health Care Group Inc. acted negligently in handling plaintiff’s private health information, which led to a data breach and subsequent compromising of the information.
The defendant experienced a cyber-attack on its medical facilities in March 2022, according to the complaint. The attack resulted in the highly sensitive personal information and medical records of nearly 2 million people being exposed. Some of the confidential information compromised, the complaint says, included social security numbers, insurance information, medical record numbers, and other information that falls under protected health information as defined by the Hospital Insurance Portability & Accountability Act.
Plaintiff alleges in his lawsuit that defendant failed to adequately safeguard his private information and failed to notify him of the data breach in a timely manner despite having a duty to “implement and maintain reasonable and adequate security measures to secure, protect, and safeguard [customers’] private information against unauthorized access and disclosure.” The data breach was a known and foreseeable risk, plaintiff contends, but defendant failed to take the necessary steps to protect the private information, leaving it in a “dangerous and vulnerable condition.”
September 8, 2022 – Consumer Fraud
Safeway and Others Said to Misrepresent ‘Rapid Release’ Acetaminophen
A proposed class action filed in Manhattan federal court accuses Safeway Inc. and other companies of deceptive marketing practices of acetaminophen medicine.
In addition to Safeway, other companies named as defendants include: Albertsons Companies Inc., Acme Markets Inc., Better Living Brands LLC, and LNK International Inc. According to the complaint, the defendants cheated customers by “uniformly advertising, marketing, and selling generic versions of certain over-the-counter drugs, including analgesic or pain-relieving medicines using acetaminophen” under the misrepresentation of the medicines being “rapid release.”
Defendants’ principal product is called “Signature Care Rapid Release Gelcaps.” Plaintiff asserts in her lawsuit that despite defendants’ advertising of the medicine as being “rapidly releasing,” the product actually dissolves slower than non-rapid release acetaminophen products sold in the same form. Since the introduction of the gelcaps in 2008, plaintiff alleges, defendants have “misled, and continue to mislead, consumers about the nature, quality, and effectiveness of the products through their advertising and labeling.”
September 7, 2022 – Product Liability
Ford Accused of Failing to Fix Transmission Issues in Low-Emission Vehicles
Ford Motor Co. fails to properly identify and pay for the repair and replacement of the transmission in some of its low-emission vehicles, alleges a proposed class action filed in San Diego federal court.
Plaintiff claims in her lawsuit that Ford has failed to properly identify and pay for the diagnosis, repair, and replacement of the transmission for 15 years or 150,000 miles for partial zero emissions vehicles and super ultra-low emissions vehicles, for which Ford has received an Emissions Credit from the California Air Resources Board. According to the complaint, plaintiff’s claims relate specifically to all vehicles distributed by Ford that are zero or ultra-low emissions vehicles and for which Ford does not provide 15-year or 150,000-mile coverage relating to the transmission.
Under the California Emissions Warranty, the complaint states, defects which increase regulated emissions in low-emissions vehicles shall be covered under warranty for 15 years or 150,000 miles. Transmission defects in such vehicles increase regulated emissions, cause the Malfunction Indicator Lamp to illuminate, and cause the vehicle to fail a California smog check, and therefore the transmission should be covered by the California Emissions Warranty, plaintiff contends.
September 6, 2022 – Intellectual Property
Adidas Files Suit Against Nike Over Run-Tracking, Shoe-Adjusting Technologies
Adidas AG has sued Nike Inc. in federal court in Marshall, Texas, alleging Nike mobile applications and shoe-fitting technology infringe Adidas patents.
The Adidas lawsuit alleges Nike’s Run Club, Training Club and SNKRS mobile apps and Adapt system for adjusting sneaker fits violate nine Adidas patents for exercise monitoring and other technology. Adidas also accuses Nike’s Adapt system, which automatically loosens or tightens shoelaces based on the shape of the wearer’s foot, of violating Adidas patents for an “intelligent footwear” system that adjusts a shoe’s cushioning based on what the wearer is doing.
Further, Adidas accuses Nike’s exercise apps of infringing patents covering features that include location-based run tracking, audio feedback on performance, and a system for creating a training plan. In addition, Adidas claims Nike’s SNKRS app for selling limited-edition shoes infringes a patent related to confirming a potential buyer’s authenticity. In its complaint, Adidas says it has a history of developing mobile-fitness technology including the “world’s first intelligent running shoe” in 2004, the “first fully integrated training system combining sensors in shoes and wearable devices” in 2005, and personal training apps starting in 2008.
September 2, 2022 – Consumer Fraud
FTC Alleges Gravity Defyer Made False Claims Regarding Its Footwear
Gravity Defyer Corp. promotes its shoe line as being “clinically proven” for pain relief without providing any evidence, according to a lawsuit filed by the Federal Trade Commission in the U.S. district court for the District of Columbia.
In its suit, the FTC claims the company is in violation of a 2001 FTC order barring it from misleading consumers with scientifically unsubstantiated advertising. The company violated the FTC order, the agency says, by using misleading testimonials from Gravity Defyer customers promoting its shoes as a way to help relieve pain and discomfort.
“Defendants have represented that Gravity Defyer footwear will relieve pain, including knee, back, ankle and foot pain, and pain in people suffering from conditions such as plantar fasciitis, arthritis, joint pain and heel spurs,” the FTC says, noting that the allegedly misleading advertisements were targeted at the company’s customer base of consumers “aged 55 and older” and placed on the radio, in magazines and on Facebook.
September 1, 2022 – Labor & Employment
Anthem Failed to Pay Overtime to Nurses, Lawsuit Claims
Plaintiff, a nurse, has filed a proposed class action against The Anthem Companies Inc. in federal court in Richmond, Va., alleging that the companies failed to pay overtime in violation of the Fair Labor Standards Act.
Named as defendants in the suit are Anthem Health Plans of Virginia (d/b/a Blue Cross & Blue Shield of Virginia) and Amerigroup Corp. According to the complaint, defendants neglected to keep accurate records of employees’ overtime hours in order to deprive them of due compensation. Despite working well over their salaried 40-hour workweek, plaintiff says she and her coworkers were not paid overtime by the defendants.
Plaintiff alleges in her suit that many employees had to work overtime because defendants required them to stay at the job until they had fulfilled all their responsibilities and met productivity standards. Defendants should have been aware of the overtime hours their employees were working, the complaint states, because plaintiff and others complained about their working hours.
August 31, 2022 – Antitrust
Antitrust Lawsuit Accuses Pork Industry of Conspiracy to Raise Prices
A complaint filed in federal court in Charlotte, N.C., against Agri Stats Inc. and major pork processors alleges a decade-long conspiracy to artificially raise the price of pork by restricting supplies.
The companies named in the complaint included Clemens Food Group, Hormel Foods Corporation, JBS USA Food Company, Seaboard Corporation, Smithfield Foods Inc., Triumph Foods LLC, Tyson Foods Inc. and affiliated companies. From 2008 to 2018 or later, according to the complaint, Agri Stats provided “benchmarking reports” that gave “detailed financial and production data” from each of the pork-producer defendants.
These reports, the complaint alleges, were significantly more detailed than normal reports given in competitive markets, and they were used by the defendants to “monitor each other’s production, and therefore control supply and price in furtherance of their anticompetitive scheme.” This was possible, the complaint says, as the defendants are vertically integrated companies that “directly control the production and supply of pork through their wholly owned and operated farms where the hogs are raised, fed, and prepared for slaughter,” with the defendants accounting for over 80% of the domestic pork industry market.
August 30, 2022 – ERISA
Labor Department Sued Over Handling of Crypto in Retirement Plans
A 401(k) provider has sued the U.S. Department of Labor (DOL) in federal court in the District of Columbia, seeking to invalidate recent agency guidance that has the effect, plaintiff claims, of discouraging cryptocurrency investment by warning that retirement plans offering cryptocurrencies should expect to be investigated.
The lawsuit, filed by 401(k) provider ForUsAll Inc., “seeks to preserve the rights of American investors to choose how to invest money in their own retirement accounts.” The suit challenges DOL’s “arbitrary and capricious attempt” to restrict the use of cryptocurrency in defined contribution retirement plans, allegedly in excess of its authority under the Employee Retirement Income Security Act, and without following the notice and comment process required under the Administrative Procedure Act.
In addition to DOL’s unlawfully stating its intention to open investigations of plan fiduciaries that offer cryptocurrency, plaintiff also alleges in its suit that the agency’s guidance focused exclusively on the risks of cryptocurrency, without mention of its potential benefits, including diversification, even though the agency’s own educational materials list diversification as a basic principle of investing.
August 29, 2022 – Environment
Dunes Sagebrush Lizard Unlawfully Denied Protection, Lawsuit Claims
The Center for Biological Diversity has sued the U.S. Fish & Wildlife Service in federal court in Albuquerque, N.M., seeking to force endangered species protections for the dunes sagebrush lizard, allegedly threatened by oil and gas extraction in the Permian Basin.
The center brings this case challenging Fish & Wildlife’s failure to determine whether the dunes sagebrush lizard warrants protection as endangered or threatened, in violation of the Endangered Species Act (ESA). According to the complaint, widespread oil and gas development has fragmented and destroyed significant portions of the lizard’s habitat in New Mexico and Texas. In May 2018, the complaint says, the center submitted a petition to the service to extend the substantive protections of the ESA to the lizard by listing the species as “endangered” or “threatened.”
Defendants published a positive 90-day finding for the lizard in July 2020, but to date, the center says, have not published the mandated 12-month finding required by the ESA. “Defendants’ failure to comply with their nondiscretionary duty to issue the 12-month finding under the ESA deprives this lizard of the statutory protections that are necessary for its survival and recovery,” the center claims.
August 26, 2022 – Intellectual Property
Jack Daniel’s Alleges King’s Creek Whiskey Infringes Trademark
Jack Daniel’s Properties Inc. claims in federal court in San Jose, Calif., that the King’s Creek whiskey brand, made by United States Distilled Products Co., infringes the Jack Daniel trademarks and trade dress.
The Jack Daniel’s trademarks and the distinctive configuration of its bottles and labels have been used for over a century and a half in connection with Tennessee sour mash whiskey and have become “a part of American culture,” according to the complaint. This action arises, the complaint says, from defendant’s “deliberate efforts” to trade off of the goodwill embodied in plaintiff’s famous trademarks and trade dress.
Jack Daniel’s claims in its lawsuit that defendant designed a new label for its bottles that copies many of the elements of Jack Daniel’s label — including a black background with white lettering. The King’s Creek lettering, the complaint says, is displayed in tall, arched font and uses circular design elements, which are trade dress elements used in Jack Daniel’s label. Rather than compete fairly, plaintiff contends, defendant replaced the label it had used for years with one that copied the well-known and recognizable label for Jack Daniel’s Tennessee Whiskey — and by doing so, “deliberately mimicked the most famous Tennessee whiskey brand in the United States in order to gain the competitive advantage that this likely consumer confusion creates.”
August 25, 2022 – Consumer Fraud
General Mills Sued Over Nature Valley Honey Content
In a proposed class action, plaintiff alleges that General Mill’s product labeling and marketing for its Nature Valley brand granola bars misleads consumers by falsely representing that the granola bars contain two ingredients — oats and honey — and that honey is the primary ingredient in the product.
In fact, plaintiff claims in her suit filed in Chicago federal court, the granola bars are composed of ingredients other than oats and honey and contain a de minimis amount of honey relative to conventional sugars.” Consumers have become increasingly concerned about the ill effects of sugar upon health, plaintiff says, and this has led to a demand for foods with lower sugar content, with consumers’ preferring foods sweetened with honey.
With this consumer preference as background, the complaint argues, through false and misleading packaging and advertising, “Defendant sold more of the Product and at higher prices than it would have in the absence of this misconduct, resulting in additional profits at the expense of consumers.” Plaintiff includes as causes of action the Magnuson Moss Warranty Act, State Consumer Fraud Acts, and Unjust Enrichment.
August 24, 2022 – Privacy
J&J Accused of Illegal Neutrogena Skin360 Face Scans
Johnson & Johnson Consumer Inc. faces a proposed class action filed in federal court in Trenton, N.J., claiming that the company’s Neutrogena Skin360 technology collects face scans without a user’s consent, in violation of the Illinois Biometric Information Privacy Act (BIPA).
According to the complaint, the Neutrogena Skin360 program takes a 180-degree facial scan of a consumers’ face, then gives a personalized at-home skin assessment in real time by diagnosing skin health issues and recommending a skin care routine with Neutrogena products. The skin care regimen, the complaint says, is then monitored and supported with behavioral coaching.
The BIPA, the complaint says, prohibits companies from collecting Illinois residents’ biometric information without first informing them, in writing, of such activity and the specific purpose and length of term of the collection, and without first receiving a written release. Plaintiff claims that J&J fails to do this for its skin technology program, which utilizes sophisticated facial recognition and skin analysis. Defendant’s conduct, plaintiff alleges, violates BIPA in Illinois because it did not first inform plaintiff and class members in writing that their biometric information was being “generated, collected or stored.”
August 23, 2022 – Antitrust
GSK Sued for Monopoly on Ventolin, Arnuity Ellipta Inhalers
GlaxoSmithKline PLC is accused in a proposed class action filed in federal court in Kansas City, Mo., of misusing the federal drug-device approval process to maintain an unlawful monopoly on its asthma inhalers, leading to artificially inflated prices.
Glaxo schemed the FDA drug-device approval regimen to obtain patent protection and regulatory exclusivities on its brand-name inhalers Ventolin and Arnuity Ellipta with the goal of preventing generic inhalers from entering the market, plaintiff claims in his lawsuit. To accomplish this, plaintiff says, defendant employed a scheme known as “device hopping.”
Device hopping works by retiring a branded inhaler but placing the same active ingredients into a new “follow on” branded inhaler with new patent and regulatory protection periods, according to the complaint. A generic inhaler approved for an earlier version of a branded inhaler is not approved for the follow-on version of the branded inhaler. Thus, complaint states, device hopping prevents generics from ever having an unprotected brand name inhaler to reference for a generic. By device hopping, plaintiff argues, defendant manufactured over “60 years of uninterrupted patent and regulatory protection” for its Ventolin inhaler line, thus prohibiting competition from generics.
August 22, 2022 – Consumer Fraud
Lawsuit Alleges ‘Beyond Meat’ Makes False Ingredient Claims
Beyond Meat Inc. falsely advertises that its substitute meat products provide as much protein as real meat and that its products don’t contain synthetic ingredients, alleges a lawsuit filed in Los Angeles federal court.
Plaintiff Don Lee Farms, a meat and plant-based burger manufacturer, says in its suit that Beyond Meat “grossly overstates” the amount of protein in its products. “Defendants’ misleading claims harm consumers, harm competitors and harm fair competition,” plaintiff contends, adding that its “rigorous product testing” proves Beyond Meat overstates the amount of protein its products contain by up to 30%.
Beyond Meat’s “overstatement” of the protein content in its products is a focal point of its advertising campaigns, according to the complaint. Further, the complaint says, Beyond Meat’s products contain the synthetic ingredient methylcellulose despite company advertising that its products do not contain “synthetic” ingredients.
August 19, 2022 – Product Liability
Hyundai Faces Suit Over ‘Exploding’ Seatbelts
A proposed class action filed in federal court in Orlando, Fla., alleges Hyundai Motor Co. manufactured and sold vehicles with seat belts that could explode, causing serious injury to the vehicle’s occupants.
According to the complaint, in May 2022 Hyundai issued a safety recall for approximately 239,000 Hyundai cars in the United States equipped with seat belt pretensioners that could explode, projecting metal fragments through the vehicle that could strike and injure the vehicle’s occupants. The recall included Model Year 2019–2022 Hyundai Accents, Model Year 2021–2023 Hyundai Elantras, and 2021–2022 Hyundai Elantra Hybrids.
Despite having knowledge of the exploding seat belt pretensioners, the complaint says, Hyundai has concealed this information, and “still to this day has not sent notification letters to owners of the defective vehicles.” Because of Hyundai’s “fraudulent business practices” in failing to disclose the seat belt defect, owners and lessees of the recalled vehicles have suffered losses in money and property, plaintiff argues, adding that had prospective buyers known of the safety defect in the seat belts, they would not have purchased or leased those vehicles, or would have paid substantially less for them.
August 18, 2022 – Labor & Employment
FDIC Attorney Sues the Agency for Gender Pay Discrimination
An attorney formerly in private practice who now works at the Federal Deposit Insurance Corp (FDIC) in San Francisco has sued the agency for pay discrimination, alleging she is under-compensated compared to her male counterparts.
Plaintiff filed her lawsuit in federal court in Washington, D.C., saying she was offered a starting base salary of just over $120,000 in 2014, below the starting salaries of her male co-workers. Before starting her position at the FDIC, the complaint says, plaintiff was paid $265,000 while working as a labor and employment attorney at a private law firm. FDIC rules state that a new employee will receive a rate above the minimum basic pay if the employee “is or was receiving a higher rate of pay (highest previous rate) in a related field,” the complaint says.
Plaintiff says that the FDIC HR department initially used this pay-setting policy to recommend that she be paid a $150,000 base salary. But her supervisors did not offer her that salary, though they used the policy to determine male lawyers’ pay, plaintiff contends, noting that a male attorney with similar job duties as plaintiff made more than $185,000 at the FDIC after a $190,000 salary at his previous job.
August 17, 2022 – Affordable Care Act
Blue Cross Alleged to Discriminate Against LGBTQ in Fertility Coverage
A proposed class action claims Blue Cross & Blue Shield of Illinois discriminates against LGBTQ people by requiring those who cannot conceive due to sexual orientation or gender identity to pay out-of-pocket for one year of fertility treatments before they can get coverage.
The complaint, filed in Chicago federal court, says that Section 1557 of the Affordable Care Act (ACA) prohibits discrimination on the basis of sex, including discrimination on the basis of sexual orientation and gender identity, in any health program that receives federal financial assistance, such as Blue Cross and Blue Shield of Illinois. Blue Cross discriminates on the basis of sex under Section 1557, the complaint alleges. by requiring LGBTQ individuals who cannot conceive through sexual intercourse because of their gender identity or sexual orientation to incur substantial costs as a prerequisite to receiving coverage for fertility services.
Plaintiff says in her lawsuit that she and her partner want to have children but, like many LGBTQ individuals, cannot conceive through intercourse and are able to become pregnant only through fertility treatments such as intrauterine insemination and in vitro fertilization. Blue Cross’s insurance policy, plaintiff says, provides immediate coverage, without any out-of-pocket cost, to individuals based on their representation that they have not gotten pregnant after having unprotected sexual intercourse for 12 months, while the same policy requires individuals who cannot conceive through intercourse due to their sexual orientation or gender identity to pay out-of-pocket for one year of fertility treatment before the insurer will provide coverage.
August 16, 2022 – Consumer Fraud
Class Action Says Nestle’s ‘Boost Drinks’ Do Not Control Glucose
“Boost brand” Glucose Control over-the-counter drinks manufactured and sold by Nestle S.A. do not actually control glucose levels, alleges a proposed class action filed in federal court in Trenton, N.J.
Plaintiff claims in his lawsuit that Nestle misleads consumers by labeling the beverages with “Glucose Control” despite the fact that they only produce a “slightly favorable” response to glucose levels as compared to only one other product. Nestle breaks the law with the marketing and labeling of its “Glucose Control” drinks since it is “tantamount to express and/or implied disease claims relating to the prevention and control of diabetes,” plaintiff says.
“Such claims made on behalf of dietary supplements,” plaintiff argues, “are prohibited as a matter of law and further render the claims misleading and deceptive.” In addition to being labeled with “Glucose Control,” the beverages prominently state that they “Help Manage Blood Sugar,” and are “Designed for People with Diabetes,” according to the complaint. These representations are misleading and constitute false and deceptive advertising on behalf of Nestle, the complaint states.
August 15, 2022 – Environment
Gov’t Accused of Failing to Protect Threatened Whitetip Shark
The National Marine Fisheries Service has been accused of failing to complete its legally required review of the effects authorized fisheries in Hawaii and Samoa have on the threatened whitetip shark population.
The oceanic whitetip shark has suffered a precipitous population decline of up to 88% in recent decades, the Conservation Council for Hawaii says in its complaint filed in federal court in Honolulu. This decline, the complaint says, is due primarily to the sharks ending up as “bycatch” of longline fishing fleets in the Pacific Ocean that target tuna and swordfish.
Section 7 of the Endangered Species Act (ESA), the lawsuit states, requires every federal agency to ensure that any agency action that “may affect a threatened or endangered species will not jeopardize the species’ continued existence.” The conservation council says in its suit that the Fisheries Service has recognized the whitetip shark as a threatened species but so far has failed to complete the review it is required to conduct under the ESA to determine the impact that the authorized fisheries have on the sharks.
August 12, 2022 – Privacy
Snapchat Accused of Privacy Violations Over Photo Filters
Instant messaging app Snapchat has been accused in a proposed class action filed in Chicago federal court of using facial recognition of its filter-application feature that captures users’ biometric facial data in violation of their privacy rights under the Illinois Biometric Information Privacy Act (BIPA).
BIPA, the complaint states, prohibits companies from collecting a person’s biometric information without that person’s informed, written consent. In their lawsuit, plaintiffs say they utilized the Snapchat app to create and post photographic and video-based Snaps where the Snaps involved their unique facial features and their unique voices.
Plaintiffs allege that defendant violated their privacy rights under BIPA by failing to properly disclose that its Snapchat app would collect and monetize plaintiff’s “biometric identifiers” without their informed, written consent, citing as an example Snapchat’s Lenses Feature that allowed users to modify their facial features with special effects. Each time plaintiffs used the feature, the complaint says, the Snapchat app scanned their faces and stored the resulting images, thus collecting biometric identifiers without plaintiffs’ consent as required by BIPA.
August 11, 2022 – Product Liability
Toxic Metals in Gerber and Nurture Baby Food Said to Lead to Autism Diagnosis
A four-year-old child was diagnosed with autism after being fed contaminated baby food that was tainted with toxic metals, alleges a lawsuit filed in San Francisco federal court.
Plaintiff says in her suit that she unknowingly fed her child Nuture and Gerber baby food products, which contained high levels of toxic heavy metals that the manufacturers concealed from federal regulators and parents.
According to the complaint, the baby consumed “substantial quantities” of Nurture baby food products sold under the Happy Family labels, as well as Gerber baby food products, which ultimately led to an autism spectrum disorder (ASD) diagnosis in February 2021, when the child was only three years and two months old. “Based on prevailing scientific evidence, exposure to the Toxic Heavy Metals at the levels contained in Defendants’ Baby Foods can cause ASD in humans,” the complaint states. “Had any Defendant warned Plaintiff’s parents that Defendants’ Baby Foods could lead to exposure to Toxic Heavy Metals or, in turn, ASD, Plaintiff wound not have consumed the Baby Foods.”
August 10, 2022 – Labor & Employment
Anthem Accused of Misclassifying Salespeople to Avoid Paying Overtime
Anthem Insurance makes its salespeople work overtime to make sales quotas but misclassifies them so it does not have to pay them overtime, according to a proposed class action filed in federal court in Indianapolis, Ind.
In their complaint, two plaintiffs say they both worked from their home offices as salespeople for Anthem, selling the company’s insurance products. Plaintiffs claim that Anthem made its salespeople work overtime hours by implementing minimum productivity quotas that required overtime hours to meet. To avoid compensating employees like them for their overtime hours, the plaintiffs say, Anthem had a policy of misclassifying sales from home as “exempt outside salespersons,” in violation of the Fair Labor Standards Act.
An “exempt outside salesperson” is, according to the complaint, someone who is predominantly engaged away from the employer’s premises. However, in the plaintiffs’ case, they were only away from the office because of the pandemic, the complaint says, adding that “the improper classification of salespersons like Plaintiffs continued despite Anthem ordering outside salespersons nationwide to work solely from home for at least three months due to the Pandemic.”
August 9, 2022 – Consumer Fraud
Shortbread Cookies Alleged to Not Contain Butter, an ‘Essential Ingredient’
A proposed class action filed in federal court in Buffalo, N.Y., claims Lorna Doone shortbread cookies should not be labeled as shortbread because they do not contain butter, an essential ingredient for shortbread, and are instead made using less costly canola oil and palm oil.
Shortbread was invented in Scotland centuries ago, the complaint says, and derived its name from its short, or crumbly, structure, caused by the high proportion of fat, in the form of butter. Dictionary.com defines shortbread as a “a butter cookie commonly made in thick, pie-shaped wheels or rolled and cut infancy shapes,” according to the complaint.
In her lawsuit, plaintiff cites a food writer who said that “most experts have agreed that whether shortbread is made commercially or in one’s kitchen, the presence of butter is essential.” Plaintiff also refers to a popular recipe website that emphasizes the importance of butter to shortbread, “advising to use only butter and not vegetable oils, because this negatively affects not only the taste but the crumbly texture.”
August 8, 2022 – Intellectual Property
Maker of Nerds Gummies Says Defendant’s ‘THC-infused Candies’ Violate Trademark
Ferrara Candy Co. accuses Top Five Wholesale of copying the branding of plaintiff’s Nerds and Trolli candies with THC-infused edibles.
Defendant Top Five Wholesale’s THC candies use identical trademarks to Ferrara’s and will likely cause consumer confusion, plaintiff claims in its lawsuit filed in West Palm Beach, Fla. Ferrara, which distributes Germany-based Trolli GmbH’s candies in the United States, says Top Five sells counterfeit THC-infused Nerds Ropes and Trolli gummy candies.
The suit also says Top Five’s candies have “more than 60 adult servings” of THC, creating “a health hazard to the consuming public, especially children.” Plaintiff in its filing asks the court to block sales of the edibles and make Top Five destroy the allegedly infringing products. Plaintiff requests damages of $2 million per counterfeited trademark.
August 5, 2022 – Antitrust
Dating App Match Group Accuses Google of Payment Monopoly
Match Group, which runs the dating apps Match, OkCupid and Tinder, accuses Google of using its market power to force developers to run the Google Play billing system for in-app purchases “where it can charge supra-competitive prices and monetize the personal data of billions of digital app users.”
In its complaint filed in San Francisco federal court, Match alleges that Google is abusing its market power, seeking to block competitors and make its billing system the exclusive way for people to pay for apps on Android. “Google lured app developers to its platform with assurances that we could offer users a choice over how to pay for the services they want,” Match says. “But once it monopolized the market for Android app distribution with Google Play by riding the coattails of the most popular app developers, Google sought to ban alternative in-app payment processing services so it could take a cut of nearly every in-app transaction on Android.”
Match claims Google enticed billions of people to use its Android mobile operating system offering an “open ecosystem” with flexibility in how developers could distribute their apps to Android users, unlike Apple that prohibits developers from bypassing its App Store to reach customers. But once its Google Play Store became the most dominant store in the world for Android Apps, Match says, Google reneged on its promise to allow Match to offer its own payment system for purchases users make inside its apps, instead requiring developers to use Google Play Billing.
August 4, 2022 – Disability Act
PNC Website Not Available to Blind or Visually Impaired, Lawsuit Alleges
The website of PNC Financial Services Group is not accessible to blind people using a screen reader, denying them the ability to use the bank’s services, claims a proposed class action filed in Manhattan federal court.
According to the complaint, plaintiff is a visually impaired and legally blind person and requires screen-reading software to read website content using her computer. PNC has failed, the complaint says, to design and operate its website, www.pnc.com, in a way that is fully accessible to those using screen readers. This failure is a violation of the Americans with Disabilities Act, the complaint argues.
Plaintiff claims in her lawsuit that the website lacks alt-text that screen readers use and is full of empty links. She seeks a permanent injunction to cause a change in PNC’s corporate policies so its website will become accessible to blind and visually impaired consumers. Plaintiff looks to represent all legally blind people in the United States who tried to access the PNC website and were unable to use it with their screen readers.
August 3, 2022 – Environment
Lawsuit Says EPA Must Protect Manatees from Water Pollution
Three conservation groups have sued the U.S. Environmental Protection Agency (EPA) for failing to protect manatees from water pollution in Florida, saying hundreds starved to death in 2021 because unchecked pollution is killing seagrass, their major food source.
Over half of the more than 1,000 manatee deaths in Florida in 2021 were attributable to starvation, according to the complaint, which says the massive die-off is being caused by pollution-fueled algae blooms that have killed thousands of acres of seagrass in the Indian River Lagoon, highlighting the inadequacy of the state’s federally-approved water quality standards. The lawsuit was filed in federal court in Orlando, Fla., by Earth Justice on behalf of the Center for Biological Diversity, Save the Manatee Club, and Defenders of Wildlife.
The suit asks the court to require EPA to reinitiate consultation with the U.S. Fish & Wildlife Service and the National Marine Fisheries Service under the Endangered Species Act to reassess its approval of Florida’s water quality standards for the Indian River Lagoon. Plaintiffs say that the Florida manatee is currently experiencing an officially-declared “Unusual Mortality Event” along Florida’s east coast, which includes important manatee warm-water habitat like the Indian River Lagoon. The lagoon, plaintiffs say, supports more species of plants and animals than any other estuary in North America.
August 2, 2022 – Product Liability
J.M. Smucker Sued Over Salmonella in Peanut Butter
A proposed class action has been filed against J.M. Smucker Co. alleging salmonella contamination of Jif peanut butter products, in federal court in Lexington, Ky.
Smucker promoted the products as containing ingredients safe for human consumption, the complaint says, when in fact they cause bacterial infections, gastrointestinal illnesses and other illnesses resulting from Salmonella contamination. The defendant recalled Jif peanut butter products sold in the U.S., the complaint adds, the recall stating “Salmonella is an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems.”
Further, the complaint says, healthy persons infected with Salmonella often experience fever, diarrhea, nausea, vomiting and abdominal pain. Plaintiff contends in his lawsuit that consumers expect the food they purchase to be safe for consumption and not contaminated by an organism “which can cause serious and sometimes fatal infections.
August 1, 2022 – Securities
SEC Charges Former Indiana Congressman with Insider Trading
The Securities & Exchange Commission has filed insider trading charges against Stephen Buyer, a former U.S. Representative for Indiana’s 4th Congressional District.
According to the SEC’s complaint filed in Manhattan federal court, after leaving Congress in 2011, Buyer formed a consulting firm that provided services to, among other clients, T-Mobile. In March 2018, the complaint says, Buyer attended a golf outing with a T-Mobile executive from whom he learned about the company’s then nonpublic plan to acquire Sprint.
Buyer began purchasing Sprint securities the next day, the SEC says, and ahead of the merger announcement, he acquired a total of $568,000 of Sprint common stock in his own personal accounts, a joint account with his cousin, and an acquaintance’s account. After news of the merger leaked in April 2018, Buyer saw an immediate profit of more than $107,000, the SEC says.