July 29, 2022 – Constitution
Fulbright Scholarships Alleged to Discriminate Against Immigrant U.S. Citizens
Two applicants for the prestigious Fulbright Scholarship — one applicant a U.S. citizen born in Kuwait, the other a U.S. citizen born in Mexico — have filed suit against the U.S. Department of Education for failing to consider language proficiency of immigrant Americans who want to conduct doctoral research abroad.
The Fulbright Scholarship program was established to support U.S. students to conduct doctoral research in foreign countries using a foreign language, according to the complaint filed in federal court in El Paso, Texas. To be eligible, the complaint says, a U.S. student must have adequate language proficiency to conduct the research. The Education Department evaluates applicants on a 106-point scale, with language proficiency counting for 15 points.
Starting in 1998, plaintiffs claim, the department began to use the language-proficiency criterion to disadvantage U.S. students who have immigrant heritage by assigning them 0 out of 15 points for language proficiency if they acquired the relevant foreign language through their national heritage. The department imposes this 15-point penalty on U.S. students with immigrant heritage to tilt the scale against students it considers to be “non-native born” Americans, plaintiffs argue, and this discrimination is unconstitutional, as Americans with immigrant heritage “have a constitutional due process and equal-protection right” to be free from such “discriminatory animus.”
July 28, 2022 – Intellectual Property
Meta Hit With Trademark Lawsuit Over New Infinity-Symbol Logo
A nonprofit blockchain developer, Dfinity, has sued Meta Platforms Inc. — formerly known as Facebook — in San Francisco federal court, alleging the new infinity-symbol logo adopted by Meta will cause consumer confusion with its own similarly designed logo.
Dfinity says in its suit that being associated with Meta’s “sordid” history with user privacy could hurt the non-profit’s efforts to attract people to its blockchain platform, which it wants to use to “take on Big Tech and tech’s growing control over user data.” Founded in 2016, Dfinity says its Internet Computer is an “infinite” public blockchain network designed to host authenticated smart contracts. It registered a federal trademark for its infinity-symbol logo in 2018.
Meta has described its new logo as a “continuous loop” that resembles both the letter ‘M’ and an infinity sign, “symbolizing infinite horizons in the metaverse,” according to the complaint, which describes Meta’s logo as confusingly similar to that of plaintiff. Dfinity also contends that Meta’s announced plans to adopt blockchain technologies would only add to the likelihood of confusion between the companies.
July 27, 2022 – Securities
SEC Claims Attorney Defrauded Disabled Trust Clients
The Securities & Exchange Commission has sued a Florida attorney and his settlement management company, accusing them of lying to disabled plaintiffs to secretly reap fees from managing $46 million in settlement payouts.
Filed in federal court in Orlando, Fla., the SEC’s complaint alleges that the attorney, who served as chief executive of Synergy Settlement Services Inc., falsely said a non-profit foundation would manage pooled investment trusts to help disabled individuals retain their public benefits.
The SEC says in its civil suit that the foundation was in fact a shell company that funneled business to Synergy. The agency accuses Synergy of improperly spending the funds of deceased trust beneficiaries on business expenses and sponsoring beach parties and other events thrown by lawyers and legal groups to develop business. The SEC further claims the defendants failed to disclose mutual fund fees to trust clients. The agency seeks fines and disgorgement.
July 26, 2022 – Cybersecurity
Mortgage Lender Failed to Protect Client Information, Class Action Alleges
A proposed class action filed in federal court in Newark, N.J., claims mortgage lender American Financial Resources failed to adequately safeguard private information, leaving the sensitive data vulnerable to a breach that occurred in December 2021.
According to the complaint, American Financial failed in its obligation to keep customers’ private information confidential and to protect it from unauthorized access. The personal information compromised in the breach, the complaint says, included customers’ names, Social Security numbers and driver’s license numbers.
Plaintiff says in her lawsuit that defendant notified affected customers about the data breach in March even though the company allegedly completed its investigation into the breach on Feb. 4, 2022. “Defendant offered no explanation for the delay between the initial discovery of the Breach and the belated notification to affected customers, which resulted in Plaintiff and Class Members suffering harm they otherwise could have avoided had a timely disclosure been made,” plaintiff contends, noting that customers’ sensitive data is likely for sale on the dark web and that unauthorized individuals may have already accessed their unencrypted and unredacted personal information.
July 25, 2022 – Product Liability
Pressure Cooker Lawsuit Says Serious Burns Caused by Defective Safety Features
Plaintiff alleges in a lawsuit filed in federal court in Madison, Wisc., that defendant, National Presto Industries Inc., knew about defective safety features on its Presto Stovetop Pressure Cookers but sold the devices nonetheless to unsuspecting customers.
The defective safety features, according to the complaint, failed to prevent the pressure cooker lid from being removed while the contents were still cooking, which caused scalding hot food to explode out of the pressure cooker and burn large parts of plaintiff’s body.
In marketing the pressure cooker, plaintiff says, Presto touts that the product is equipped with advanced safety features such as a lock indicator that “shows at a glance if there is pressure inside the cooker” and a regulator that “maintains the proper cooking pressure automatically.” Despite Presto’s claims, the company manufactured and marketed a product that suffers from serious and dangerous defects — defects that can cause “significant risk of bodily harm and injury to its consumers,” plaintiff contends.
July 22, 2022 – Trade Secrets
Apple Accuses Startup Rivos of Poaching Engineers to Steal Secrets
Technology startup Rivos Inc stole Apple Inc’s computer-chip trade secrets after poaching its engineers, Apple claims in a lawsuit filed in federal court in San Jose, Calif.
Rivos has hired over 40 of Apples former employees in the past year to work on competing “system-on-chip” (SoC) technology, according to the complaint, and that at least two former Apple engineers took gigabytes of confidential information with them to Rivos. SoCs, the complaint says, are integrated circuits that include several computer components in a single chip, including central processing units and graphic processing units.
Apple says it has spent billions of dollars and more than a decade of research on its SoC designs, which have “revolutionized the personal and mobile computing worlds.” Rivos purposely sought to hire Apple engineers with access to the company’s SoC trade secrets, Apple contends.
July 21, 2022 – Consumer Fraud
Infant Formula Lawsuit Says Similac, Enfamil Marketed With Misleading Information
Abbott Laboratories and Mead Johnson & Company have engaged in misleading and deceptive marketing for their infant formulas, which led many mothers to allow their prematurely born children to be fed Similac and Enfamil despite known health risks, alleges a lawsuit filed in federal court in Knoxville, Tenn.
The suit was filed by a parent on behalf of herself and her minor child who was, according to the complaint, diagnosed with necrotizing enterocolitis (NEC) shortly after being fed the cow-based milk product formula after birth. A growing body of research, the complaint says, has found that the risk of a premature newborn NEC diagnosis is substantially greater after being fed Similac or Enfamil, compared to babies who receive breast milk alone.
Plaintiff claims that the manufacturers knew of the dangers but failed to adequately warn families and medical providers about the risk, and purposefully provided false and misleading information about the infant formulas for premature infants, including making breast feeding look more difficult and unnecessary than it really is.
July 20, 2022 – Labor & Employment
Justice Dep’t Sues Over Alleged Job Denial Based on HIV Status
The U.S. Justice Department has filed a civil lawsuit against the town of Clarksville, Ind., claiming the town unlawfully revoked a job offer to a policeman based on his HIV diagnosis, in violation of the Americans with Disability Act.
The suit, filed in federal court in Indianapolis, Ind., says that at the conclusion of a state-mandated examination, the examiner noted that the job applicant was taking “anti-viral medications,” had “no long-term evidence of active disease” from his HIV, and had no other notable health issues. Notwithstanding these findings, according to the complaint, the examiner advised the Clarksville police chief that in his opinion the applicant did not meet statewide medical standards because his HIV was a “communicable disease” that posed a “significant risk of substantial harm to the health and safety” of his colleagues and the public.
However, the Justice Dep’t says, the medical examiner cited no objective scientific or medical evidence in support of his opinion that the applicant posed a risk to others because of his HIV, and the examiner made no individualized findings about how the applicant’s HIV status affected his ability to serve as a police officer. “The medical examiner’s determination was at odds with objective evidence showing that [applicant] was physically able to perform the job of police officer,” the department argues.
July 19, 2022 – Product Liability
FCA Accused of Selling ‘Dangerous’ Chrysler Pacifica Plug-In Minivans
Fiat Chrysler Automobiles (FCA) is facing a proposed class action accusing it of manufacturing and selling “dangerous” and “defective” 2017-2018 Chrysler Pacifica Plug-In Hybrid minivans prone to catching fire and exploding.
Plaintiffs allege in their lawsuit filed in federal court in Flint, Mich., that FCA sold the vehicles without disclosing their problems to consumers. “Defendant FCA’s actions have violated sacred obligations and duties of car manufacturers to both provide consumers with vehicles that are safe and to alert them to, or otherwise warn them of, vehicle defects that implicate serious safety issues,” according to the complaint.
FCA has thus far required Chrysler Pacifica owners to pay to repair the vehicles themselves and has at the same time failed to “timely and adequately warn lessees and purchasers or replace or repair said vehicles,” plaintiffs claim, adding that the only remedy FCA has offered vehicle owners so far is to “refrain from plugging in” the Chrysler Pacifica minivans and to park them away from structures and other vehicles.
July 18, 2022 – Intellectual Property
Justin Bieber’s ‘10,000 Hours’ Copied 1980 Ballard, Lawsuit Claims
Pop star Justin Bieber and country music duo Dan + Shay face a lawsuit filed in Los Angeles federal court accusing them of unlawfully copying a 1980 soul ballad for their Grammy-winning 2019 hit song “10,000 hours.”
Plaintiff Melomega Music claims in its suit that core portions of “10,000 hours” were lifted from “The First Time Baby Is a Holiday,” a song composed more than 40 years ago and most recently released in 2014. “One need only listen to ‘First Time’and the infringing ‘10,000 Hours’to discern the unmistakable similarities between the songs,” plaintiff contends.
“When the songs are viewed through the objective, empirical lens of musical science — as was done in this case by one of the top musicology experts in the industry — defendants’ infringement is unmistakable,” plaintiff alleges, adding that the hooks of the songs are exactly the same and that both end with the identical lyric, “for the rest of my life,” set to the same melody.
July 15, 2022 – Cybersecurity
Lawsuit Alleges PepsiCo Workers Lost Wages After Data Breach
A data breach affecting PepsiCo’s Kronos-brand timekeeping systems in 2021 has left the company unable to properly pay its workers or give them appropriate time off, alleges a proposed class action filed in Pittsburgh federal court.
Plaintiff claims in his suit that PepsiCo has not been able to correctly pay its staff or track its hourly employees since the breach. “As a result, PepsiCo’s workers who were not exempt from the overtime requirements under Pennsylvania law were not paid for all hours worked or were not paid their proper overtime premium after the onset of the Kronos hack,” according to the complaint.
Following the breach, plaintiff argues, PepsiCo could have created a temporary and alternative plan for keeping track of employee hours and pay but chose not to. “Instead, PepsiCo used prior pay periods or reduced payroll estimates to avoid paying wages and proper overtime to these non-exempt hourly and salaried employees.”
July 14, 2022 – Securities
Electric Aircraft Developer Faces Investor Lawsuit After Shares Fall
An investor has filed a proposed class action against Germany-based Lilium, developer of electric aircraft capable of taking off and landing vertically, following the release of a research report that questioned the company’s technology and sent its stock plummeting 34%.
According to the complaint filed in Los Angeles federal court, Lilium’s management misled investors about the capacity of the seven-seat jet the company is developing and about when the aircraft will be ready for commercial production. In fact, the complaint says, Lilium is well behind its competitors in bringing an electronic jet to market.
The complaint cites a report issued in March 2022 by Iceberg Research that claimed Lilium was losing the race in the development of electric-vertical takeoff and landing aircraft (eVTOL). Lilium’s aircraft, the complaint says, haven’t flown for more than three minutes in tests after seven years of development. By contrast, a competitor’s aircraft flew over 150 miles on the longest eVTOL test flight to date in July 2021. Further, the problem with Lilium’s “power-hungry” design, according to the Iceberg report cited in the complaint, is that it has 36 fan-like engines on its wing flaps, whereas most of its competitors use regular propellers that spin in the open air.
July 13, 2022 – Consumer Fraud
Ashley Furniture Engages in Deceptive Pricing, Lawsuit Claims
Ashley Furniture Industries LLC faces a proposed class action alleging the furniture chain misleads customers with fictitious “original” prices, leading them to falsely believe they are purchasing furniture at bargain prices.
Plaintiff contends she relied on Ashley Furniture’s deceptive pricing scheme when she purchased a metal twin bed and mattress from the company’s website. The twin bed was listed at a sale price of $96.99 with a reference price listed at $159.99, according to the complaint.
She decided to purchase the metal twin bed, plaintiff says, because she believed the discounted price would not last long, and she believed she received a significant bargain of nearly 40% off the regular price of the bed. “However, this product was never offered for sale at the original price listed on Ashley Furniture’s e-commerce website and certainly not within the 90 days preceding [plaintiff’s] purchase,” the suit alleges. “Nor was it listed for sale at the full price in an Ashley Furniture brick-and-mortar store.”
July 12, 2022 – Immigration
Recruiter of Mexican Labor Accused of Running Bait and Switch Scheme
A proposed class action accuses a Georgia-based labor recruiter of luring Mexican engineers to the United States with promises of engineering jobs and then putting them on production lines in an auto factory.
The lawsuit was filed in Atlanta federal court by civil rights advocates against AGWM United and agents, alleging a bait-and-switch immigration scam.
Defendant AGWM United obtained TN visas for Mexican migrants by telling U.S. authorities they would be employed as engineers, according to the complaint. The TN nonimmigrant classification permits qualified Canadian and Mexican citizens to seek temporary entry into the United States to engage in business activities at a professional level. However, the complaint says, the migrants were forced to function as production line workers for an auto parts manufacturer.
July 11, 2022 – Intellectual Property
Biltmore Estate Alleges Trademark Theft by Home Décor Company
The owner of Biltmore Estate, the largest private mansion in the U.S. and built by the descendants of railroad magnate Cornelius Vanderbilt, has filed a lawsuit against a home decor company for selling products and services under the Biltmore trademark without permission.
According to the complaint filed in Phoenix, Ariz., Biltmore’s online store — Biltmoreshop.com — includes apparel, bath and body products such as soaps, lotions, jewelry, wine, books, and home décor. The Biltmore Company, which owns the estate, claims in its lawsuit that Sleek Creations of Scottsdale LLC rebranded to Biltmore Interiors and Linens in 2018, infringing plaintiff’s rights to the Biltmore mark.
Biltmore Estates says defendant Sleek now uses the website Biltmoreinteriors.com and has a Facebook page that describes Biltmore Interiors and Linens as “Livable luxury for bed, bath, home and you. Fine linens, bedding, bath, designer pillows, rugs, furniture and décor.” Defendant’s use of Biltmore Interiors and Linens, plaintiff claims, is likely to cause confusion with plaintiff’s Biltmore mark, and that consumers may wrongly believe that plaintiff approves of defendant’s use of the Biltmore name.
July 8, 2022 – Voting Rights
Justice Dep’t Sues Arizona Over Voter Registration Requirements
The U.S. Department of Justice (DOJ) has sued Arizona in federal court in Phoenix, Ariz., over a new state law requiring proof of citizenship to vote in a presidential election, calling the restrictions a “textbook violation” of federal law.
The DOJ complaint challenges as unlawfully restrictive the voting requirements imposed by Arizona House Bill 2492 (2022), a recently enacted law set to take effect in January 2023. The challenge, according to the complaint, is based on the National Voter Registration Act of 1993 (NVRA) and the Civil Rights Act of 1964.
In its lawsuit, the DOJ contends that the law violates NVRA by requiring that applicants produce documentary proof of citizenship before they can vote in presidential elections or vote by mail in any federal election when they register to vote using the NVRA uniform federal registration form. DOJ also says the law violates Section 101 of the Civil Rights Act by requiring election officials to reject voter registration forms based on errors or omissions that are not material to establishing a voter’s eligibility to cast a ballot.
July 7, 2022 – Product Liability
Burger King Whopper Wrappers Said to Have Undisclosed PFAS
A proposed class action filed in San Francisco federal court alleges Burger King Corp. which markets its products as safe and sustainable, fails to disclose that its Whopper wrappers contain PFAS, a family of “forever chemicals” known to be harmful to humans and the environment.
Scientists are extremely concerned about how PFAS affect human health, the complaint says, noting that the Centers for Disease Control and Prevention has outlined “a host of health effects associated with PFAS exposure, including cancer, liver damage, decreased fertility, and increased risk of asthma and thyroid disease.”
Based on defendant’s representations, plaintiff argues, a reasonable consumer would expect that its products can be safely consumed while, in fact, they are not safe, posing a significant health risk to unsuspecting consumers. “Yet, neither before nor at the time of purchase does Defendant notify consumers like Plaintiff that their Product is unsafe and harmful to the environment, contains heightened levels of PFAS, or should otherwise be approached with caution,” plaintiff says.
July 6, 2022 – Privacy
Louis Vuitton Accused of Unlawfully Collecting Biometric Data Without Consent
Louis Vuitton North America unlawfully collects and stores the biometric data of consumers who use the company’s “Virtual Try-On” feature to sample glasses on its website, alleges a proposed class action filed in Manhattan federal court.
In her lawsuit, plaintiff claims that Louis Vuitton violates the Illinois Biometric Information Privacy Act (BIPA) by using its Virtual Try-On feature to collect consumers’ biometric facial data without informing them or being given consent. Consumers who use the feature are able to “view themselves in a pair of expensive designer sunglasses,” simply by uploading a photo of their face to Louis Vuitton’s website, according to the complaint.
Plaintiff argues that consumers are unaware Louis Vuitton uses their photo to collect “detailed” and “sensitive” biometric identifiers, including taking a complete facial scan. Defendant not only fails to get consent or inform consumers it is collecting their biometric data but also fails to provide a reason for why they are collecting the data or to inform consumers of how or when the company plans to destroy it, plaintiff claims, adding that the defendant violates BIPA every time a website visitor based in Illinois uses the Virtual Try-On tool.
July 5, 2022 – Constitution
Sikhs Sue Marine Corps Over Restrictions on Beards
Four members of the Sikh religion have sued the Marine Corps in the U.S. District Court for the District of Columbia, claiming that the corps’ refusal to allow them to wear a beard on combat deployment or during boot camp violated their constitutional right to free exercise of religion.
In their lawsuit, the Sikhs contend that the corps’ action is “arbitrary and capricious.” Plaintiffs note that the Marine Corps has recently relaxed other grooming standards, specifically to increase diversity in the military ranks. As of January 2022, for example, new recruits can now receive permanent beard accommodations for medical reasons, and can wear full-sleeve tattoos and various new hairstyles, including during recruit training. “It is perverse to claim that respecting the individual desires of Marines to have full-body tattoos (hands, face, and neck only excepted) … is consistent with the Marine Corps’ image, but that respecting Plaintiffs’ desires to be faithful to God is somehow antithetical to the idea of cohesiveness and uniformity within the service,” the Sikhs contend.
Plaintiffs further point out that the Marine Corps routinely deploys men to combat zones who have permission to wear beards because of medical conditions or because they are part of Special Operations units. The corps’ beard rules, plaintiffs say, would require Sikhs to shave even in countries where the risk of chemical attack is so low that Marines deployed there are not equipped with gas masks. And the Marine Corps routinely allows other recruits into boot camp who do not fit homogeneous appearance standards, plaintiffs add. Women, for example, are allowed to keep their long hair during training.
July 1, 2022 – Product Liability
Knix Wear Sued Over Toxic Chemicals in Menstrual Underwear
Knix Wear Inc. deceptively markets its absorbent menstrual underwear as free of toxic chemicals known as PFAS, a family of “forever chemicals” found to be harmful to humans and the environment, alleges a proposed class action filed in federal court in San Jose, Calif.
In their lawsuit, plaintiffs say they relied on the company’s marketing statements that the underwear, which collects menstrual fluid, is “PFAS free” and “designed to be both safe and effective.” PFASs can enter the body through multiple ways, including skin contact, according to the complaint, which adds that the Centers for Disease Control & Prevention has outlined a range of health effects associated with PFAS exposure, including cancer, liver damage, decreased fertility, and increased risk of asthma and thyroid disease.
Plaintiffs contend that because PFAS persist and accumulate over time, the chemicals are harmful even at very low levels. Independent testing found that Knix Wear underwear contains high levels of fluorine, indicating the presence of PFAS, plaintiffs say, noting that there is a growing public health concern about the chemicals used in feminine hygiene products.
June 30, 2022 – Intellectual Property
Showtime Faces Trademark Infringement Suit Over UFO Docu-Series
Showtime Network Inc. has been sued in Wyoming federal court over its 2021 documentary series called “UFO” that plaintiff UFO Magazine Inc. claims infringes on its trademarks.
The complaint says that UFO Magazine first registered the “UFO” mark in 2007 for “entertainment in the nature of a television series and motion picture film series,” adding that the UFO mark has been used in its magazine since 1998. Beginning in mid-2021, and without license or permission, the complaint says, defendant Showtime began airing a television series on its streaming service entitled “UFO” concerning extraterrestrial phenomena. Defendant’s use of “UFO” in connection with a television series infringes UFO Magazine’s trademark and intellectual property rights in its “UFO” marks, according to the complaint.
“UFO” trademarks are very valuable intellectual properties of the magazine, UFO Magazine says, and it has invested substantial resources in developing its mark and substantially more resources in using the mark to identify and promote its media products. Specifically, plaintiff says, UFO Magazine has been in discussions for development of a UFO motion picture and/or television series for many years. “As recently as September 2020, UFO Magazine, in a sponsorship role with the Virtual International UFO Congress, sought collaborators for development of a movie.”
June 29, 2022 – Securities
SEC Charges Individuals Involved in Alleged Investment Fraud Targeting Retirees
The Securities & Exchange Commission has charged four individuals with deceiving investors in defendants’ sales of high-yield promissory notes aimed at retirees.
Filed in San Diego federal court, the SEC’s complaint alleges that defendants, doing business as Golden Genesis Inc., engaged in the unregistered offer and sale of securities — typically high-yield promissory notes issued by corporate borrowers. The SEC says that defendants targeted investors’ retirement assets, vouching for the safety of the investments even though defendants knew that certain issuers of the notes were using new investor principal to pay returns due earlier investors.
Specifically, according to the complaint, defendants conducted an unregistered and fraudulent offering of securities, misappropriating investor funds to make Ponzi-like payments where they used new investor monies to make interest payments due to prior investors.
June 28, 2022 – Cybersecurity
Shopify and TaskUs Users Sue Over Crypto Wallet Breach
Shopify Inc. and TaskUs Inc. failed to take measures to prevent a data breach that compromised plaintiffs’ personal information and cryptocurrency portfolios, alleges a proposed class action filed in federal court in Wilmington, Del.
Plaintiffs say in their lawsuit that the 2020 data breach affected Leger SAS cryptocurrency hardware wallets, which had contracted with third-party vendors Shopify and TaskUs to process its customers’ personal information. The breach compromised the names, email addresses, postal addresses and phone numbers of more than 272,000 individuals, plaintiffs claim.
According to the complaint, Ledger sells Ledger Wallets through its e-commerce website, which is run on Shopify’s platform. Ledger Wallets were marketed as providing the best security for cryptocurrency because the wallets hold password information in a physical form and restrict transfer of crypto-assets in an individual’s account unless the physical device is mounted to a computer and a twenty-four-word passphrase is entered, the complaint says. “When hackers know the identity of a cryptocurrency owner and know what platform that consumer is storing their crypto-assets on, the hacker can work backwards to create a targeted attack aimed at luring hardware wallet owners into mounting their hardware device to a computer and entering their passphrase, allowing unfettered access and transfer authority over their crypto-assets.”
June 27, 2022 – Breach of Contract
Sherwin-Williams Accused of Illegal Hidden Surcharge Scheme
A proposed class action claims that Sherwin-Williams secretly adds a 4% surcharge on its products without giving customers any notice.
The complaint, filed in federal court in Buffalo, N.Y., alleges Sherwin-Williams runs a deceptive bait-and-switch scheme of covertly tacking on a hidden 4% “Supply Chain Surcharge” to every sale transaction at the cash register once it’s too late for customers to rescind their purchases. “Sherwin-Williams adds the Surcharge covertly, and customers are often entirely unaware of the Surcharge until after paying and checking out,” the complaint says.
Feeling the pressure of rapidly rising manufacturing costs, Sherwin-Williams decided to shift this cost onto customers, plaintiffs contend. “This deceptive practice allows Sherwin-Williams to hide the true prices of its products. Customers are induced to make purchases in reliance on the lower listed price and then are duped at the cash register into paying 4% more than the prices advertised by Defendant.” This practice is “deceptive and illegal,” plaintiffs argue, as it obstructs customers’ ability to engage in fair and accurate price comparisons in the marketplace and to shop around for the best value for their money.
June 24, 2022- Intellectual Property
Hailey Bieber Sued for Trademark Infringement Over Skincare Line
Hailey Bieber, the model who recently launched a skincare line under the name Rhode, is being sued for trademark infringement by a fashion brand, also called Rhode.
Plaintiffs Purna Khatau and Phoebe Vickers, co-founders of the Rhode fashion company, filed the lawsuit against Ms. Bieber in Manhattan federal court, claiming that her fame and following risks eclipsing plaintiffs’ brand recognition. The suit seeks to block Bieber from selling or marketing any products under the Rhode name. Plaintiffs note that Hailey Bieber is a celebrity with over 45 million Instagram followers and her husband, Justin Bieber, has promoted her business to his 243 million Instagram followers, generating 1.5 million likes with one posting.
According to the complaint, plaintiffs are seeking to protect the business they began in 2014 when they quit their day jobs to create a high-end clothing and accessories line. Since then, the complaint says, plaintiffs’ products have been featured in Vogue, carried in stores like Saks Fifth Avenue and Neiman Marcus worldwide, and worn by celebrities including Beyonce, Mindy Kaling, and Rihanna. Sales are projected to hit $14.5 million this year, plaintiffs claim.
June 23, 2022 – Constitution
ACLU, NAACP Challenge South Carolina Ban on ‘Srcraping’ Court Records
The American Civil Liberties Union and the NAACP have filed a lawsuit challenging the South Carolina judiciary’s ban on the “scraping” or automated collection of data from publicly accessible online repositories of filings in the state’s courts.
In a federal court suit filed in Columbia, S.C., the NAACP’s South Carolina chapter, represented by the ACLU, says the ban had impaired its ability to help tenants facing eviction by timely identifying them and providing resources and affordable housing opportunities. The NAACP says it is seeking to try to help address an eviction crisis in the state that disproportionately impacts Black renters by gathering and recording information from the court’s Public Index that is publicly available.
But the group claims the terms of service for the Public Index, a county-by-county repository of legal filings, expressly prohibits using software to harvest data, and the South Carolina Court Administration employed technical means to prevent such collection. In its suit, the ACLU argues that the ban violates the U.S. Constitution’s 1st Amendment by unreasonably restricting access to public information and judicial records.
June 22, 2022 – Product Liability
Lawsuit Alleges Toxic Chemicals in CoverGirl Pressed Powder Cosmetics
In San Diego federal court, CoverGirl TruBlend Pressed Powder cosmetic products face a proposed class action, alleging that the products expose consumers to toxic chemicals that have been linked to thyroid problems, cancer, and other harmful side effects.
Plaintiff claims in her suit that Cover Girl Cosmetics falsely marketed “TruBlend Pressed Powder” as safe for use, when in fact it contained highly toxic PFAS, also known as “forever” chemicals. Cover Girl intentionally concealed information that its TruBlend Pressed Powder cosmetic products contain PFAS, and deceptively marketed the products with claims such as “safe” and “sustainable,” plaintiff contends.
The complaint cites the results of a recent study performed by Toxin Free USA that found CoverGirl’s TruBlend Pressed Powder contained over 6,000 parts per million of organic fluorine, which is considered an environmental and industrial contaminant, as well as an indicator of the presence of PFAS. The study, the complaint says, warned that PFAS exposure may increase the risk of high cholesterol, thyroid disease, pregnancy complications, hypertension, ulcerative colitis, and kidney and testicular cancer, all of which are effects that have been linked to human exposure to PFAS.
June 21, 2022 – Consumer Fraud
Amazon Failed to Disclose Presence of Toxic Metals in Happy Belly Spices, Lawsuit Alleges
Spices sold by Amazon.com under its Happy Belly brand contain toxic heavy metals, including arsenic, cadmium, and lead, according to a proposed class action filed in federal court in Seattle, Wash.
Plaintiffs say in their suit that they purchased Happy Belly Ground Thyme from Amazon on multiple occasions between 2017 and 2022, and Amazon neither lists the toxic heavy metals in the spices’ ingredients list nor warns consumers that the metals may be present. Had they known that the product potentially contained toxic heavy metals, plaintiffs say, they would not have purchased nor consumed it.
The complaint states that the presence of toxic heavy metals in Amazon’s Happy Belly brand came to light following a Consumer Reports investigation that found a number of the products it tested contained “high enough levels of arsenic, lead and cadmium combined, on average, to pose a health concern.” Exposure to toxic heavy metals can cause a number of health concerns for both children and adults, the complaint says, including decreases in IQ, increased risk of antisocial behavior, skeletal deformities, and issues with the nervous system.
June 20, 2022 – Intellectual Property
‘Best Lawyers’ Accuses Magazine of Infringement re Lawyer Rankings
BL Rankings LLC, which does business as Best Lawyers, has sued Washingtonian Media Inc. in federal court in the District of Columbia, accusing defendant’s Washingtonian magazine of infringing BL Rankings’ trademarks when defendant published a directory and lawyer referral service entitled “Washington D.C.’s Best Lawyers” in December 2020.
Washingtonian magazine even offered featured lawyers the use of a “Best Lawyers” badge, despite allegedly knowing of BL Rankings’ trademark, according to the complaint.
BL Rankings says in its lawsuit that Washingtonian’s lawyer directory seems to have spurred confusion among lawyers and law firms that placed ads with the magazine “under the mistaken belief” that they were advertising in BL Rankings’ “Best Lawyers” publication, or that the Washingtonian directory was somehow related to plaintiff’s “Best Lawyers” publication.
June 17, 2022 – Securities
SEC Charges Dental Ultrasound Start-Up With Fraudulently Raising $2 Million from Investors
The U.S. Securities & Exchange Commission has filed charges against S-Ray Incorporated and its CEO for raising at least $2 million from dozens of investors since at least 2018 by making false claims about customers, orders for its products, and revenue potential.
According to the complaint filed in federal court in Takoma, Wash., S-Ray was founded in 2010 to develop ultrasound technology for use in dentistry. By 2018, the complaint says, the company had only developed a couple of prototypes and had not sold any products. But S-Ray shares continued to be sold to investors, many of whom were dentists and orthodontists, by misrepresenting that the company had booked $1 million worth of orders from customers and that it would soon be earning tens of millions of dollars in annual revenue.
The SEC’s complaint further alleges that S-Ray’s CEO told investors that additional investments in the company would be used for revenue-generating purposes and that he would forgo his salary and bonus, giving the false impression that he was not benefiting from S-Ray’s securities offering. However, the complaint says, from May 2019 through May 2021, the CEO used almost half of the proceeds from the securities offering to pay himself and his wife back for loans that he purportedly had made to S-Ray.
June 16, 2022 – Cybersecurity
IRA Financial, Gemini Accused of Negligence Over Data Hack
IRA Financial Trust Co. and Gemini Trust Co. face a proposed class action brought by a consumer who claims the companies were negligent in securing his retirement accounts, resulting in the theft of $36 million in cryptocurrency during a 2022 data breach.
Both IRA Financial, a trust company that offers self-directed retirement accounts, and Gemini, a cryptocurrency exchange that partners with IRA, blame the other company for the February breach, which — according to the lawsuit filed in San Francisco federal court — compromised the names, Social Security numbers, and financial accounts of the affected customers.
As a result of the data breach, the complaint states, plaintiff and the proposed class “suffered ascertainable losses in the form of actual monies, loss of the benefit of their contractual bargain, out-of-pocket expenses and the value of their time reasonably incurred to remedy or mitigate the effects of the attack.” Further, the complaint claims, plaintiff’s retirement savings — “the most sacred monies for any person” —were compromised, unlawfully accessed, and stolen” due to the breach.
June 15, 2022 – Constitution
Challenge to New York Prisons’ Ban of Attica Riot History Book
The author of a Pulitzer Prize-winning book, “Blood in the Water: The Attica Prison Uprising of 1971,” has filed a lawsuit in Manhattan federal court, alleging New York State has unlawfully blocked the book from being distributed to prison inmates in the state.
The author, Heather Ann Thompson, filed her suit jointly with the New York Civil Liberties Union Foundation and the Cardozo Civil Rights Clinic. She claims the state’s action is an attempt to obscure the history of the five-day prison rebellion that transpired in the fall of 1971 at the Attica prison in upstate New York, and this censorship of the book constitutes a violation of the First and Fourteenth Amendments.
“People incarcerated in multiple other states have had the opportunity to access ‘Blood in the Water,’ benefiting from the historical perspective it offers, as well as the book’s key insights into the importance of recognizing the humanity of incarcerated individuals and the consequences of an inhumane criminal justice system,” according to the complaint. “But not in New York, where defendants, state prison officials purporting to act under a media censorship program, have barred incarcerated people from accessing ‘Blood in the Water,’ blocking Professor Thompson herself from sharing the book with people in state prisons and denying her the opportunity to contest this censorship.”
June 14, 2022 – Consumer Fraud
Hellmann Lawsuit Alleges Mayo Dressing Label Overstates Olive Oil Content
Unilever Inc. is facing a proposed class action filed in federal court in White Plains, N.Y., alleging its Hellman’s brand mayonnaise dressing misrepresents that it is made “With Olive Oil,” when the actual olive oil content is minimal.
Unlike most vegetable oils, which are highly processed using chemicals, olive oil is made without additives or harsh processing, according to the complaint. Olive oil also has heart-healthy fats, antioxidants and oleic acid, which have health benefits, the complaint says, adding that sales of olive oil currently exceed the sales of all other vegetable oils combined.
Plaintiff claims in her lawsuit that Unilever markets its Hellmann’s Mayonnaise Dressing to the growing number of consumers seeking to consume foods that contain healthier ingredients like olive oil. The Hellmann’s Mayonnaise Dressing label prominently states that the product is made “With Olive Oil” and includes pictures of two olives on a branch with leaves, plaintiff says. However, the ingredients list shows that the most predominant oil in the product is soybean oil. The amount of olive oil contained in the Hellmann’s mayonnaise product is “insufficient to confer any of the health benefits associated with olive oil,” plaintiff contends.
June 13, 2022 – Labor & Employment
Google Accused of Systemic Bias Against Black Employees
A proposed class action accuses Google of systemic racial bias against black employees, alleging the company steers them to lower-level jobs, pays them less, and denies them opportunities to advance because of their race.
According to the complaint filed in federal court in San Jose, Calif., Google maintains a “racially biased corporate culture” that favors white men, where black people comprise only 4.4% of employees and about 3% of those in its technology workforce.
Plaintiff claims in her lawsuit that Google subjected black employees to a hostile work environment, including by often requiring that they show identification or be questioned by security at its Mountain View, California campus. Google hired her in 2014 to design an outreach program to historically black colleges, plaintiff says, adding that her hiring proved to be a “marketing ploy,” as supervisors began denigrating her work, stereotyping her as an “angry” black woman, and passing her over for promotions. Plaintiff says Google fired her in September 2020 after she and her colleagues began working on a list of desired reforms.
June 10, 2022 – Product Liability
Class Action Claims McDonald’s Fails to Disclose PFAS in Its Food Products
McDonald’s fails to disclose to its customers that its food products, including the popular Big Mac, contain unsafe PFAS (highly toxic chemicals), alleges a proposed class action filed in federal court in Benton, Ill.
In his lawsuit, plaintiff claims McDonald’s misleads consumers into believing its food is safe to eat by not disclosing that it contains PFAS which, plaintiff says, are harmful to both humans and the environment. “The use of PFAS in its Products stands in stark contrast to McDonald’s brand identity which espouses food safety,” plaintiff argues. “In almost every medium, McDonald’s Corporation tells consumers, investors, and the general public that the Products are safe.”
According to the complaint, exposure to PFAS can cause a number of adverse health effects, including liver damage, cancer and increased risk of asthma, among other things. “Because PFAS persist and accumulate over time, they are harmful even at very low levels,” the complaint says, adding that McDonald’s has the resources to ensure PFAS are not in its food products but chooses to intentionally include them as a way to cut costs.
June 9, 2022 – Trade Secrets
Qualcomm Says Former Employee Stole Trade Secrets
Chipmaker Qualcomm Technologies Inc. has sued one of its former engineers in San Diego federal court, alleging he breached a confidentiality agreement and stole company trade secrets before accepting a job offer from another unnamed “major technology company.”
In its lawsuit, Qualcomm asks the court to ban defendant from using its secrets, and it also petitions the court for an undisclosed amount of money damages. According to the complaint, defendant signed a confidentiality agreement when he was hired, and he also deliberately circumvented the company’s security measures by taking screenshots of confidential files and sending the images to himself.
The suit claims that defendant began taking confidential files in December 2021, that he falsely told the company he had deleted them, and that he took more secret information in January. In all, Qualcomm says, defendant had taken hundreds of files from its network without permission.
June 8, 2022 – Antitrust
S&P Global Accused of Conspiring to Eliminate Competition in Financial Instruments
A proposed class action filed in Manhattan federal court by two investment management firms say S&P Global and CUSIP Global conspired to eliminate competition for the Committee on Uniform Securities Identification Procedures (CUSIP), which are used to identify financial instruments.
Banks have used CUSIPs for years to identify and settle certain financial instruments and, prior to the 1980s, would historically work with S&P Global and CUSIP Global in doing so, according to the complaint. However, in the 1980s, plaintiffs say, competition for CUSIPs arose from data vendors such as Bloomberg LP, which began offering “rich sets” of value-added data services that included CUSIPs. “As a result, S&P and [CUSIP Global] lost their contractual relationships with Financial Case Institutions and therefore could no longer control the Financial Institutions’ use of the CUSIPs they received from their Data Vendors,” the complaint states.
Plaintiffs claim this new competition “threatened S&P’s monopoly power over the CUSIP Use Market.” In response to this threat, plaintiffs allege, S&P Global and CUSIP Global started putting clauses in their contract agreements with data vendors that “purported to give S&P and [CUSIP Global] control … over the use of CUSIPs by the financial institutions.” These clauses, plaintiffs say, had the effect of preventing data vendors from offering CUSIPs to any financial institution that did not sign a licensing agreement directly with S&P Global.
June 7, 2022 – Securities
Shareholder Action Says Netflix Failed to Warn About Subscription Loss
A Netflix shareholder has sued the company for violating securities laws after a decline in subscribers led to a sharp drop in the company’s stock price.
The lawsuit, filed San Francisco federal court, seeks class action status “on behalf of all others similarly situated” who lost money — specifically, whoever owned Netflix shares between Oct. 19, 2021, and April 19, 2022. The suit names Netflix, co-CEOs Reed Hastings and Ted Sarandos and CFO Spencer Neuman as defendants.
Plaintiff alleges that defendants “failed to disclose material adverse facts” in a timely manner, causing shareholders “significant losses and damages.” Specifically, plaintiff says, Netflix failed to disclose to investors that the company was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services, and that as a result the company’s financial results were being adversely affected. The company’s “positive statements about [its] business, operations, and prospects,” the suit claims, “were materially false and/or misleading and/or lacked a reasonable basis.”
June 6, 2022 – Intellectual Property
Walmart Patent Suit Challenges BJ’s Self-Checkout App Feature
Walmart Inc. has filed a lawsuit in federal court in Orlando, Fla., alleging the Express Pay function of BJ’s Wholesale Club Holdings Inc.’s mobile app infringes four Walmart patents for technology that allows shoppers to scan products while in a store and make payments without having to go through a checkout line.
The patents at issue in the suit cover Sam’s Club’s Scan & Go, a free feature launched in 2016 by Walmart’s Sam’s West Inc. and Walmart Apollo LLC units. In 2021, BJ’s, a membership-based big-box store that competes with Sam’s Club, released its Express Pay functionality included as part of the BJ’s Mobile App.
According to the complaint, BJ says its Express Pay enables BJ’s Wholesale Club members to scan items to BJ’s Mobile App as they shop to make checkout faster. “[BJ’s] Express Pay is an apparent copy of Sam’s Club’s Scan & Go, merely changing the in-app colors and changing the name from Scan & Go to Express Pay,” Walmart claims.
June 3, 2022 – Constitution
Lawsuit Says Connecticut’s Prison Debt Law Is Unconstitutional
Two former inmates have filed a civil suit that seeks to overturn a 25-year-old statute that allows the state government to charge inmates a daily fee for their imprisonment.
In a proposed class action filed in Connecticut federal court, plaintiffs are asking the court to declare their prison debt invalid and the statute permitting the collection of such debt to be null and void, in violation of the Eighth Amendment (Excessive Fines Clause) of the U.S. Constitution. The daily incarceration fee in Connecticut is $249, or $90,885 annually, according to the complaint. The statute says that this fee is meant to recoup the state’s expenditure in feeding and sheltering inmates, but the suit claims that it traps former inmates in an oppressive debt cycle — a second incarceration — from which there is no escape.
“For people in prison, Connecticut’s prison debt laws mean that the state can collect against nearly all their property at any time. Once a person is released, prison debt follows them for decades, decimating inheritances from deceased loved ones, proceeds from lawsuits (even for injuries sustained in prison), and, ultimately, anything a person leaves upon their death,” the complaint says. “Even after a person serves their designated sentence, the prison debt laws punitively and arbitrarily impose an additional sentence, just in a different form.”
June 2, 2022 – Product Liability
Fiat Chrysler Allegedly Failed to Disclose Vehicles Can Explode, Catch Fire
A proposed class action filed in San Diego federal court claims Fiat Chrysler Automobiles (FCA) failed to warn buyers about a defect in its 2017-2018 Chrysler Pacifica Plug-in Hybrid Electric Vehicles (PHEV) that causes them to explode and catch fire.
In his suit, plaintiff says that an FCA internal investigation revealed that 12 Chrysler Pacifica PHEV had caught fire due to a defect, and that the auto manufacturer doesn’t know the root cause of the issue. “The Class Vehicles are at risk of exploding or catching fire due to an unknown root cause, resulting in an immediate risk to the vehicles’ occupants or the property surrounding the vehicles,” plaintiff contends.
Plaintiff, who says he purchased a 2018 Chrysler Pacifica PHEV in February 2018, says FCA subsequently told drivers that a remedy was “under development” and to abstain from charging the vehicles or parking them near buildings for the time being. The restrictions have caused vehicle owners and lessees to be “burdened with vehicles that do not perform as advertised and cannot be safely parked like other cars,” according to the complaint.
June 1, 2022 – Consumer Fraud
Walgreens Accused of Overcharging Health Plans for Drugs
Blue Cross and Blue Shield and other health care plans allege that Walgreen Co. engaged in a fraudulent scheme to overcharge for prescription drugs by submitting claims for payment at inflated prices and made false statements to conceal the scheme.
Walgreens overcharged the plaintiffs hundreds of millions of dollars, according to the complaint filed in Chicago federal court. When patients covered by the plaintiffs fill prescriptions at a Walgreens pharmacy, Walgreens is required to accurately submit in those claims its “usual and customary” (U&C) prices that cash-paying customers pay, the complaint says, adding that the U&C price acts as a reimbursement ceiling ensuring that plaintiffs don’t pay more than cash-paying customers.
But Walgreens created a program under which it submitted U&C prices to plaintiffs that were “five, ten, or twenty times higher” than what cash customers paid, the complaint alleges, saying that “Walgreens knowingly and wrongfully overcharged the plaintiffs by submitting false and inflated U&C prices to the plaintiffs.”