Week Adjourned: 6.19.09

Top class actions

Get a Whiff of Zicam. Oh wait, maybe you can’t. At least that’s what’s at the heart of the latest Zicam news. No, it’s not a class action yet—but it could be. And it wouldn’t be the first one. At issue are 3 Zicam cold remedies that cause a loss of sense of smell—a condition known as anosmia. As if the cold wasn’t enough of a problem.

In 2005 more than 300 people filed a class action lawsuit against Matrixx, the makers of cold remedies marketed under the name Zicam, alleging the zinc nasal spray caused a loss of sense of smell and taste. Matrixx settled the suit in 2006 for $12 million.

This week, on June 16, 2 years and 130 adverse event reports later, the FDA released a public health advisory urging consumers not to use the Zicam cold remedies, for the same reasons the lawsuit was brought in 2005.

The products named in the FDA’s advisory are Zicam Cold Remedy Nasal Gel, Zicam Cold Remedy Nasal Swabs and Zicam Cold Remedy Swabs, Kids Size (a discontinued product). What part of this didn’t Matrixx get the first time round?

Top settlements

MySpace Ain’t Your Space. What would you do if you were forced to give your employer your ID and password to an online group you had created with the express purpose of venting your frustrations about your employer? Well, 2 waiters in New Jersey who were faced with that very situation filed a class action lawsuit. And they won.

Restaurant managers who worked at Houston’s in Hackensack, NJ, were fined by a federal jury for surreptitiously monitoring employees’ postings in a MySpace gripe group. The jury ruled that the managers had violated state and federal laws designed to protect privacy of internet communications. The jury awarded the waiters a total of $3,400 in back pay and $13,600 in punitive damages.

BMW: Sheer Driving Pleasure? (if you excuse the faulty subframes). If you or someone you know owns a fourth-generation 3-series model BMW—say the E46—you will be happy to hear there is a settlement pending in the 2006 class action suit against the automaker. So far, BMW has agreed to begin inspections and repairs of potentially faulty subframes in these models.

Currently the settlement is only valid for US residents, and no recall is planned. BMW customers with questions can visit www.E46subframeclassactionsettlement.com.

That’s it for this week. See you at the Bar…



Week Adjourned: 5.22.09

Everyone must be busy getting ready for the Memorial Day weekend—I just hope everyone’s making sure those beef patties for the weekend barbeque aren’t part of the recent recall for E Coli…hmm. Well, while you’ve been doing party prep, here’s what’s been going on…

Top Class Action Suits

Bringing good things to life? General Electric and Samsung are now the focus of what could amount to a large class action lawsuit over defective microwave ovens. While the class is pending certification there doesn’t appear to be any uncertainty surrounding the defect. In a nutshell, the ovens can turn themselves on…good trick, just not very safe. I’m sure you could imagine some potential scenarios. The guy who filed the suit has smoke damage to his house—he was lucky.

Will that be on your Sears charge? And it seems Sears has been in the business of selling things it doesn’t own, specifically, its cardholders’ personal and private information. Who’s buying? Interested third parties—companies who want to sell you things that Sears isn’t selling you—like insurance. Shame on Sears! The retail giant is a founding member of American retail…

Continue reading “Week Adjourned: 5.22.09”

Week Adjourned: 5.15.09

Top Class Actions: The Week of the Biggies

Hotel Costco: You can clock in, but you can never leave? It appears to have been another busy week in law firms and courthouses across North America. Let’s start with Costco—last week Costco was in the news for having settled an unfair business practices class action and this week they’re in the news for “falsely imprisoning” employees in its California warehouses. Whaaat?

When I first read this my mind reeled, “what new business venture is this?”

Turns out it’s yet another unpaid overtime and wages class action centered in California. What is it about California?  (I’m referring to the endless labor law violations).

The class action centers on employees who were and are forced to remain in the warehouses after closing while store managers make goods secure and lock up. This has been going on for years, apparently. But now there is a lawsuit, of course, and the lawyers are seeking US $50 million in damages.

O Canada!—who was standing on guard at Guidant? Across the border in Canada, not a land well-known for class action lawsuits—something large is taking place. Earlier this month a national class action was certified against Guidant Corp, alleging that the company knowingly sold defective pacemakers. The class so far represents more than 28,000 people, and the lawyers are seeking CD$525 million in damages.

Highway Robbery? And a class action that’s been getting a lot of media this week is the Massachusetts Turnpike lawsuit, whose plaintiffs are being represented by a lawyer made famous in the 1998 film “A Civil Action“, Jan R. Schlichtmann.

Continue reading “Week Adjourned: 5.15.09”

Week Adjourned: 5.8.09

Top Class Actions: Hydroxycut, 3M

A Body Image to Die For? Last week we mentioned the Hydroxycut nightmare – people suffering permanent liver damage from using the product. Worse, so far one death has been associated with the use of this popular diet product. Sure enough, the class action lawsuits have started, filed in both the US and Canada by separate entities—this issue will be one to watch. Why? Because while drugs are very tightly regulated, over the counter supplements are not—the FDA in fact has very little control. Maybe these lawsuits will help change that. 

Surprise Retirement Parties at 3M. Seems 3M’s been planning some retirements that were real surprises—even to those retiring. It’s just been slapped with a class action alleging violations of the Age Discrimination and Employment Act (ADEA). This isn’t the first time 3M has been sued for unfair employment practices. However the suit centers on the allegation that “3M fires or forces these older employees into retirement or resignation. And, in an effort to protect itself, the company has forced departing employees to sign releases that misrepresent their rights and fail to give them required information necessary to determine whether they have been the victims of age discrimination.”

Nice.

The complaint was filed in California, a state that sees more than its fair share, if there is such a thing, of employment law violations, including unpaid overtime for IT personnel, test engineers and quality assurance engineers.

Top Settlements: Aerotek, Costco, Wal-Mart, and Anna Mae Ahern

“Hasta la vista baby.”  This week saw the ultimate pay day for disgruntled employees at Aerotek, as they announced the settlement of their employment class action for $1.25 million. This case involved more than 1,300 employees, past and present, who claimed that Aerotek had not reimbursed them for accrued leave when they were let go. That’s pretty good closure.

Big-Box Discounters…Big-Time Losers. A couple of big retailers were also in the news this week – Costco and Wal-Mart. Costco has agreed to provide up to 3 months free membership for people who had their renewed memberships unfairly backdated to the membership expiration date.

And remember that truly “Black Friday” last year – when a temporary clerk was trampled to death in a New York Wal-Mart when it opened its doors for the “sale event of the year”? Well, in order to avoid criminal charges, the retail giant has pledged $2 million to improve safety at its 92 outlets in the state. And it couldn’t have done this without the threat of criminal charges?

Talk about Betting the Farm. A pretty neat piece of justice took place this week.  A 101 year old lady who just happens to live on a 93-acre golf course in a Chicago suburb will receive $25 million for her property—at least that’s what the jury said the developer must pay if he wants the land. Anna Mae Ahern was born on the property—her family owned it. Then in 1921 they converted it from a restaurant and farm to a golf course. She’s been living there her entire life. Needless to say it’s worth a pretty penny to property developers today. To her credit, Anna knew that and so did her lawyers, who are no doubt celebrating with her. Question is, where to now?

More to come next week. We’re off to the bar again (yeah, that one)…see you there!