Week Adjourned: 3.30.12 (Barefoot Running, LG Electronics, Deutsche Bank)

The weekly wrap-up of class action lawsuits and class action settlements for the week ending March 30, 2012.

Top Class Actions

Barefoot running benefits nothing more than barefaced lies? Well, it remains to be seen, but certainly there’s doubt over its merits—though no doubts re: its ugliness—and allegations of injury resulting from the barefoot running shoe. (Is it really a shoe?)  A consumer fraud class action lawsuit was filed this week against Vibram USA Inc and Vibram FiveFingers LLC, alleging the company used deceptive statements about the health benefits of barefoot running.

Filed on behalf of Florida resident Valerie Bezdek, the Barefoot Running Shoes lawsuit alleges that 1) health benefits claims Vibram FiveFingers has used to promote the shoes are deceptive; 2) that FiveFingers may increase injury risk as compared to running in conventional running shoes, and even when compared to running barefoot; 3) that there are no well-designed scientific studies that support FiveFingers claims.

“Given that Defendant’s advertising and marketing equates barefoot running with running in FiveFingers, Defendant’s uniform deceptive statements about barefoot running are also deceptive statements about Five Fingers,” the lawsuit claims.

The lawsuit also states that sales of the Vibram FiveFingers shoes have grown an average of 300 percent a year for the last five years and approached $70 million in 2011. That’s certainly not chump change. 

LG TV lifespans less than expected. You know, you could make the argument that defective products help the market economy—something breaks—you go buy a new one—right? Well, not according to some disgruntled LG consumers. They filed a federal class action lawsuit against LG Electronics USA, alleging that the electronics manufacturer’s plasma and LCD Television sets are defective, impacting the lifespan of the televisions. And they are not prepared to go out and buy new sets. Can you blame them?

The LG Electronics class action lawsuit seeks to represent anyone else who purchased certain defective LG televisions in the state of Nevada. Class televisions include but are not limited to models 32LC2D, 37LC2D, 42LC2D, 42PC3D, 42PC3DV, 47LC7DF and 50PC3D.

The lawsuit alleges that the televisions are defective in that they contain internal components called printed wiring boards (also known as printed circuit boards) that prematurely fail during normal operation of the televisions (the “defect”). The defect, which was present upon delivery and which manifests itself over time, ultimately results in the failure of the televisions themselves well before the end of their expected useful life, and rendering the televisions unsuitable for their principal and intended purpose. I’m guessing that’s watching TV… 

Top Settlements

Danke schön, Deutsche Bank (not). It’s the financial mess that never ends—though you have to admit, it’s given the document shredding industry cause for a few high-five’s… A preliminary settlement was announced this week in the lawsuit pending against Deutsche Bank—with the German financial house agreeing to pony up a paltry $32.5 million to settle claims that it lied about the quality of home loans underlying the securities it sold. (Well Hel-lo. And where in the settlements line-up is this one?) 

The investors that sued include the Massachusetts Bricklayers and Masons Trust Funds. They have filed a motion for preliminary approval of the Deutsche Bank settlement in federal court in Central Islip, New York.

“The proposed settlement will provide a substantial monetary benefit to the settlement class,” court papers state.

According to the lawsuit, and as reported by Bloomberg.com, in 2006, the plaintiffs bought from Deutsche Bank so-called pass-through certificates that gave them the right to the payments on the underlying home loans. The offering documents contained misstatements about loan underwriting standards, property appraisals, loan-to-value ratios and credit ratings on the certificates, according to the complaint. At the same time Deutsche Bank was selling the securities, it was profiting from credit-default swaps by wagering that loans like those underlying the certificates would decline in value, the investors claim.

The lawsuit also states “More than 49 percent of the loans underlying one certificate series were delinquent or foreclosed on,” the investors said. The tranche the Massachusetts Bricklayers and Masons Trust Funds, the lead plaintiff, bought “has already realized cumulative principal losses.”

The investors also claim that had a sale been done in 2008 when the lawsuit was filed, they would have netted between 70 and 80 cents on the dollar. “The certificates are no longer marketable at prices anywhere near the price paid,” the lawsuit states. So I guess $32.5 million doesn’t look so bad now.

OK–That’s a wrap. Happy Friday everyone–Mickey Mouse says it’s Martini Time! (and may one of us hit #MegaMillions!)

Week Adjourned: 3.23.12 (GoDaddy, Yo-Plus Yogurt, Honda Hybrid)

Lots of consumer fraud class action lawsuits this week in our weekly wrap up of the top class action lawsuits and settlements, for the week ending March 23, 2012.

Top Class Actions

Bit of a theme here this week—consumer fraud.

And this one is for anyone who has ever registered at least 5 domain names, thinking they were getting a bargain. GoDaddy, the Internet domain registration giant, is facing a possible consumer fraud class action lawsuit over its allegedly illegal charges for private registration services it advertises as being free.

The GoDaddy lawsuit claims that while GoDaddy offers free private domain registration to customers who register five or more domain names at the same time, when those customers go to renew their domains they are charged at the regular price.

The lawsuit, filed by Florida company WineStyles, states “By suggesting that the value of ‘FREE’ Private Registration was $9.99/yr, and that the ‘FREE’ service had ‘NO LIMIT!’, GoDaddy represented that the ‘FREE’ Private Registration services would be for the lifetime of the domain name, and Plaintiff (and on information and belief, the Class) believed this to be the case.”

The GoDaddy lawsuit also states that renewal notices sent to customers do not indicate that the privacy services would no longer be free upon renewal. And, the plaintiffs allege “Throughout the class period, GoDaddy provided wholly inadequate disclaimers on GoDaddy.com, which reiterated the ‘FREE’ offer but never mentioned to Customers that the Private Registration service would be automatically renewed by GoDaddy at the full price applicable to single domain name purchases, instead of for ‘FREE.’”

The proposed consumer fraud lawsuit is brought on behalf of customers who registered 5 or more domains, received the “free” private registration, and then were charged a fee for the proxy services when they renewed between March 19, 2006 and the present.

Yo! – Yogurt-eaters of California! You may be affected by a consumer fraud class action lawsuit facing General Mills that alleges the company falsely advertised the digestive health benefits of its Yo-Plus® brand of yogurt.

The lawsuit is called Johnson v. General Mills, Inc., Case No. 10-00061-CJC(ANx), and is in the United States District Court for the Central District of California. The Court decided this lawsuit should be a class action on behalf of a “Class,” or group of people, that could include you.

The lawsuit claims that General Mills falsely advertised its Yo-Plus® brand of yogurt by claiming that Yo-Plus® yogurt provides digestive health benefits when General Mills didn’t have a scientific basis to make that claim. The Yo-Plus® lawsuit seeks the return of money to the purchasers and a court order prohibiting the advertising. General Mills denies it did anything wrong and says its Yo-Plus® advertising was truthful and always substantiated by scientific evidence.

The Court has not decided whether the Class or General Mills is right. The attorneys for the Class will have to prove their claims at a trial.

The Class, on whose behalf the lawsuit is brought, is defined as “All persons who purchased Yo-Plus® in the State of California from the date Yo-Plus® was first sold in California to the date notice is first provided to the Class.” You may be a Class Member and, if so, you have a choice of whether to stay in the Class or opt out–Yo-Plus® class action lawsuit claim information can be found here at the claims administrator’s site. 

If you are included, you have to decide whether to stay in the Class and be bound by whatever results, or ask to be excluded and keep your right to sue General Mills. There is no money available now and no guarantee that there will be. To find out more by reading about the Yo-Plus® lawsuit here

Top Settlements

Happy Honda–remember that slogan? No? Well, if you’re part of the Honda Hybrid class action lawsuit you may become a Happy Honda Owner. Maybe. This week, a proposed settlement was approved by a San Diego Superior Court judge in a consumer fraud class-action lawsuit brought by Honda car owners over allegations that Honda hybrid vehicles were not as fuel-efficient as advertised and had problems with battery life.

The Honda Hybrid settlement affects some 460,000 owners and lessees of Honda Civic Hybrids and includes model year vehicles from 2003 to 2009. This is the Honda lawsuit, if you recall, in which Heather Peters of California opted out of the Honda class action lawsuit in order to sue Honda on her own.

According to the terms of the settlement, each class member is entitled to a $100 cash payment and a rebate certificate valued at $500 or $1,000.

Folks who make up a subclass of the lawsuit, who experienced car problems caused by a software upgrade, could receive an additional $100 and an additional $500 rebate, according to reports. Software upgrades–aren’t they just the bane of modern day existence. I digress.

In any event, court documents would indicate the total settlement could reach $461.3 million, and includes a net award of attorney fees of more than $8.1 million.

OK –That’s a wrap. Happy Friday everyone – see you at the bar!

Week Adjourned: 3.17.12 (Apple Siri, Plumb-PEX, Blue Sky)

The weekly wrap-up of class action lawsuits and class action settlements, for the week ending March 17, 2012.

Top Class Actions

But Siriously Folks…Apple got hit with a potential consumer fraud class action lawsuit…Siri Siri Siriously…The lawsuit alleges the company’s voice assistant feature found on its latest iPhone, called Siri, doesn’t work as advertised. Oh dear. What is more frustrating than technology that doesn’t quite do what it’s supposed to do?

The Apple iPhone Siri lawsuit, filed in the Northern District of California, brought by iPhone 4S customer Frank Fazio, states “Promptly after the purchase of his iPhone 4S, [Fazio] realized that Siri was not performing as advertised,” the lawsuit says. “For instance, when [Fazio] asked Siri for directions to a certain place, or to locate a store, Siri either did not understand what Plaintiff was asking, or after a very long wait time, responded with the wrong answer.” Consequently, Fazio believes that Apple has overpromised on Siri’s capabilities.

“Notwithstanding Apple’s extensive multi-million dollar advertising campaign showcasing the Siri feature, and the fact that the iPhone 4S is more expensive than the iPhone 4, the iPhone 4S’s Siri feature does not perform as advertised, rendering the iPhone 4S merely a more expensive iPhone 4,” the lawsuit states.

The lawsuit alleges that Apple is in violation of the Consumers Legal Remedies Act, California’s Unfair Competition Law, is in breach of warranty, and has committed both intentional and negligent misrepresentation. The suit seeks class action for other iPhone 4S owners, with the end goal of an injunction against Apple selling the device, as well as damages.

Top Settlements

For all of you who were victim to some dodgy plumbing fixtures–Plumb-PEX plumbing system— you will no doubt have been relieved to hear this week that a proposed settlement has been reached in the Plumb-PEX class action lawsuit. In fact, a notification program has begun to inform people and entities who own or owned a home, building or other structure containing a Plumb-PEX plumbing system, about the proposed settlement in a defective products class action lawsuit.

The settlement aims to resolve claims about whether Radiant Technology, Inc. and Uponor, Inc. (“RTI” or the “Defendants”) sold Plumb-PEX plumbing systems containing ASTM standard F1807 brass insert fittings and stainless steel clamps that may leak and cause damage to property. The Defendants deny all of the claims in the lawsuit, but have agreed to settle the case to avoid the cost and uncertainty of a trial.

The settlement includes a group of people called a “Class” or “Class members” and consists of anyone who owns or owned a property containing an RTI Plumb-PEX plumbing system containing ASTM standard F1807 brass insert fittings and stainless steel clamps (“RTI Plumb-PEX Plumbing System”) installed on or after May 15, 1999. Owners of systems that have: (a) had a leak in one or more of the system’s components, or (b) a water flow differential of 50% between the hot and cold lines that supply one or more fixtures may receive benefits from the settlement. People and entities that paid for damages or repairs related to a qualifying leak in an RTI Plumb-PEX Plumbing System may also submit claims.

The settlement will reimburse Class members for property damage caused by a qualifying leak in a system component. It will also provide repairs or possibly the replacement of an RTI Plumb-PEX Plumbing System in structures that have had two or more qualifying leaks. Eligible Class members will have at least 18 months to file a claim even if that time period expires after their warranty.

More information, and there is more information –including how to access a claim form, a picture of the RTI Plumb-PEX Plumbing System components and the Settlement Agreement–can be found here

Did you buy a bit of Blue Sky? –The soda that is. If so, you may be interested to know that a federal court in San Francisco has preliminarily approved a consumer fraud class action settlement that provides 50% cash refunds on purchases of Blue Sky brand beverages.

The settlement applies to purchasers in the United States of Blue Sky brand beverages between May 16, 2002 and June 30, 2006 (the “Class”). It excludes purchases by retailers, distributors, resellers, and the judge handling the case.

Class members can submit a claim for refund of fifty percent of the price they paid. Refunds are limited to $100 per household (if Proof of Purchase is submitted) or $6 per household (if no Proof of Purchase is submitted). Proof of Purchase means an itemized retail receipt that shows a purchase of a Blue Sky beverage, and the date, place and amount of purchase.

The Blue Sky settlement resolves a lawsuit against Monster Beverage Corporation (formerly known as Hansen Natural Corporation), Monster Energy Company (formerly known as Hansen Beverage Company) and Blue Sky Natural Beverage Co. (collectively, “Hansen”).

Class members also have the right to object to the settlement by filing papers in the U.S. District Court in San Francisco, California (Chavez v Blue Sky Natural Beverage Co., et al., N.D. Cal. 06-cv-06609-JSW) and serving those papers on the attorneys for Plaintiff and Defendants. Those who object may ask to appear at the hearing or hire their own attorney to appear.

To get the whole story, find out if you’re eligible o to download a claim form see our full post on the Blue Sky settlement.

OK –That’s a wrap. Happy St. Patrick’s Day everyone—see you at the bar!

Week Adjourned: 3.9.12 (Kardashians, Google & Brazilian Blowout)

A weekly wrap of the latest class action lawsuits and settlements, for the week ending March 9, 2012.

Top Class Actions

Call it Kardashian Klass…as in Klass Action. So does QuickTrim equal QuickBucks? Maybe. Consumers of QuickTrim diet supplement products filed a consumer fraud class action this week against the Kardashian sisters, Kim, Kourtney and Khloe, as well as the product manufacturer, Windmill Health Products, over allegations that the advertising claims are false and misleading. Filed in New York, the Kardashian QuickTrim lawsuit alleges the sisters made “unsubstantiated, false and misleading claims” in ads, interviews and tweets about the effectiveness of QuickTrim. According to the lawsuit, the FDA recently evaluated the product’s principal ingredient which was found to be caffeine. The lawsuit states “The FDA has in fact determined that ‘there are inadequate data to establish the general recognition of the safety and effectiveness’ of caffeine for the specified use of weight control.”

The lawsuit also claims that advertising for QuickTrim encourages people to purchase and use the entire product range or system which includes pills and cleanses, in order to experience increased effectiveness, but there is no evidence supporting the effectiveness of the products or that the entire range of products are more effective when used together. Damn!

Is Internet Privacy an Oxymoron? It’s certainly looking more like a ‘yes’ these days. The latest group to be outraged over tracking cookies has filed a class action against master of the Internet universe—Google—alleging the god of all things binary inserted code into its Google Ads. Surprised?

The internet privacy lawsuit claims that Google installed tracking cookies on iPhones, iPads and Mac computers, which, the federal class action alleges, is in violation of the Federal Wiretap Act, the Computer Fraud and Abuse Act and the Stored Electronics Communications Act.

Apparently, the tracking cookies on the Apple products were installed in order to harvest information about Internet searches, which, of course, it does without the consumer’s knowledge or authorization.

The lead plaintiff in lawsuit further claims that Google intentionally intercepted these electronic communications and then intentionally disclosed that information to his and other class members’ detriment.

“Google admits that it used code designed to ascertain whether Apple Devices utilizing Safari were also signed into Google, and, as a result, tracking cookies could be and were placed on Safari web browser on Apple Devices,” the lawsuit states.

FYI—the lawsuit is looking for an award of actual damages, Google’s profits or the statutory minimum of $1,000 per person, punitive damages, plus coverage of all the usual costs.

Top Settlements

Brazilian Blowout Settlement…Ok ladies and gents, for all of you who have used the infamous hair straightener, Brazilian Blowout, and suffered some unexpected and unwanted side effects—like nosebleeds—you may be interested to know that a preliminary settlement has been reached in the class action against Brazilian Blowout. The manufacturer has agreed to pay $4.5 million in damages, with consumers harmed by the product tentatively scheduled to receive a $35 check for each treatment for a maximum of three, and $75 for each bottle of the product purchased.

The tentative Blowout settlement also reportedly stipulates that Brazilian Blowout can no longer claim to be “formaldehyde free”. In late January, the company agreed to warn consumers that its products may emit formaldehyde gas in a settlement requiring honest advertising over its products, according to California Attorney General Kamala D. Harris. And, the company must place “CAUTION” stickers on all its bottles to inform stylists of the need for precautionary measures, report the presence of formaldehyde in its products to the Safe Cosmetics Program at the Dept. of Public Health and fully disclose its refund policies to consumers before the products are purchased.

OK –That’s a wrap. Happy Friday everyone—see you at the bar!

Week Adjourned: 3.2.12 (DePuy Hip Impant, Skechers Toners, OC Register)

A weekly wrap of top class action lawsuits and lawsuit settlements for the week ending March 2, 2012.

Top Class Actions

Do you have—or know someone who has—a DePuy metal-on-metal hip replacement? You may be interested in this—a class action lawsuit—filed against DePuy Orthopaedics, Inc., the manufacturer of metal-on-metal hip replacement implants. The lawsuit claims the devices cause “irreparable harm from undiagnosed metal disease.” And the purpose of the DePuy class action lawsuit is to get DePuy to pay for patients’ ongoing medical monitoring, which involves yearly orthopedic examinations, MRIs and blood and urine tests, according to the lawsuit.

Medical monitoring, you ask? Well, the science isn’t pretty, but the facts speak for themselves. According to an investigative report published in BMJ, formerly known as British Medical Journal, thousands of hip implants made by DePuy Orthopaedics have leaked high levels of toxic cobalt and chromium ions. These toxic metals have destroyed patients’ muscle and bone, and will potentially leave some patients with long-term disability, the study says.

Metal-on-metal hip prostheses like the DePuy ASR XL can and do create three to five-fold increases in blood levels of the heavy metals chromium and cobalt,” the lawsuit states. “Toxicity from these metals causes metallosis, a disease that destroys the tissues surrounding the artificial joint. Left unresolved, metallosis creates irreparable harm to the patient from the progressive destruction of the joint tissues.”According to the court document, other health issues related to failure of the ASR XL hip implant include “immediate irreparable harm from undiagnosed metal disease and the effect it has on the joint, even after revision and on other targeted organs, such as the brain, heart, liver, and kidneys.”

Sadly, there’s more. In addition to risk of infection and blood clots in a second implant surgery, revisions will not last as long as the 20 to 30 years the original hip implants were expected to last.

The BMJ report cites longstanding “evidence of risk from metal-on-metal hips, the manufacturers’ inadequate response, and how regulatory bodies failed to give doctors and patients the information they need to make informed decisions.”

The US Food and Drug Administration (FDA) warned in 2011 about metal ions that shed minute particles of the metal implant that migrate into the bloodstream and damage bone or tissue surrounding the implant and joint.

BMJ quotes an internal DePuy memo from July 2005 that says, “In addition to inducing potential changes in immune function, there has been concern for some time that wear debris may be carcinogenic… One study suggested threefold risk of lymphoma and leukemia 10 years after joint replacement.”

“So-called ‘Silent Metal Disease,’ is found in upwards of 30% of patients with no symptoms. Cobalt and chromium poisoning can only be diagnosed promptly through a program of universal and comprehensive monitoring of the entire population of ASR XL patients,” according to the lawsuit.

BMJ says it’s likely there are more than 500,000 “at risk large diameter” metal-on-metal hips implanted in American patients since 2003 which require monitoring.

The lawsuit is asking that a class be certified and that DePuy be ordered to establish a fund to pay the costs of medical monitoring over the lifetime of all ASR XL Acetabular System hip implant patients. Those costs include annual blood and urine tests and medical imaging such as ultrasound and MRI examinations.

These shoes were made for walking–or not–according to this class action. This isn’t the first time we’ve seen complaints from consumers over reportedly false claims made by toning shoes manufacturers. This week, a consumer fraud class-action lawsuit was filed on behalf of consumers bought Skechers, alleging misleading advertising influenced people’s decision to buy the company’s “Shape-Ups” toning shoes.

The Skechers “Shape-Ups” toning sneaker class action lawsuit seeks money damages for consumers who paid a “premium price” for Skechers “Shape-Ups” based on TV, print and Internet ads that touted the toning shoes’ health benefits.

In reality, the complaint alleges, the shoes provide no additional health benefits. Instead, they pose a risk of injury due to their pronounced rocker bottom sole, according to the complaint.

The lawsuit seeks money damages and an order that would stop Skechers from “deceptive and unlawful advertising.”

According to the lawsuit, the shoes are marketed, sold and promoted by Skechers, U.S.A., Inc., and its subsidiaries.

The complaint states that Skechers is currently being investigated for its toning shoes marketing claims by the Federal Trade Commission. In September, the FTC reached a $25 million settlement with Reebok for making similar fitness claims about its own brand of toning shoes, the lawsuit states. Footwear News estimates that Skechers will face a fine of $75 million.

In particular, the lawsuit alleges that Skechers promoted that its “Shape-Ups” would provide health benefits “without setting foot in a gym.”

However, the plaintiffs claim, the company has produced no valid scientific proof that the toning shoes provide any greater benefit than regular athletic shoes.

The complaint cites an American Council on Exercise study that concluded, “There is simply no evidence to support the claims that these shoes will help wearers exercise more intensely, burn more calories or improve muscle strength and tone.”

However, the lawsuit alleges, the shoes do pose health risks. Because the rocker bottom soles create instability and change gait mechanics, they can trigger chronic injuries and cause wearers to fall and suffer injuries, the plaintiffs claim.

An attorney representing the plaintiffs notes a May 2011 Consumer Reports article stating that toning shoes had produced more injury reports than any other product in its database. The reported injuries included tendinitis and foot, leg and hip pain. The more severe reported injuries included broken bones. Looks like it’s back to the gym after all…

Top Settlements

Remember Mayberry RFD? “America’s Happiest Hamlet,” according to the trailer. Well, there’s something of that sentiment about this settlement. Maybe because the good guys won after all. Finally, after almost 10 years of litigation, a settlement in the Orange County Register unpaid wages class action lawsuit (Gonzalez, et al. v. Freedom Communications, Inc., et al., Orange County Superior Court, Case No. 03CC08756) has been reached.

In the settlement, the directors and officers of Freedom Communications, the parent of the OC Register, agreed to pay $15.5 million—in addition to an earlier $14.5 million paid in 2010—to resolve the paper carriers’ class action against the OC Register. The final $30 million settlement brings closure to litigation that had been ongoing for nearly a decade.

The California labor class action case was initially filed in the Orange County Superior Court in 2003 and then proceeded through the litigation process, culminating in seven weeks of jury trial before it was settled in January of 2009 for $38 million. While the plaintiff newspaper carriers won the battle, Freedom filed bankruptcy on September 1, 2009 and sought to eliminate this obligation through bankruptcy one week before the agreed payment date.

OK—Happy Friday everyone—See you at the bar!