Week Adjourned: 1.3.14 – Facebook, Hyundai Kia, Royal Health

Top class action lawsuits and settlements for the week ending January 3, 2014. Top class actions include Facebook, Hyundai, Kia and Royal Health.

FB Dislike buttonTop Class Action Lawsuits

Hashtag Privacy Please! Naughty, naughty! Facebook’s allegedly been peeping into your privates—messages that is…which, a potential class action lawsuit claims, is in violation of federal and state laws.

Filed by two Facebook users against Facebook the lawsuit alleges the social media platform scans messages between users labeled “private” for links and other information that can be sold to third parties including advertisers, marketers and data aggregators. The Facebook lawsuit is seeking class action status, with a potential 166 million Facebook users in the US eligible to join the class, if it is certified.

Plaintiffs Matthew Campbell from Arkansas and Michael Hurley from Oregon filed the lawsuit in a US district court in Northern California, alleging Facebook data mines “private” messages without disclosing it does so, or seeking users’ consent. Specifically, the lawsuit alleges Facebook’s intercepting and using links in “private” messages between users is in violation of the Electronic Communications Privacy Act, and California privacy and unfair competition laws.

“Facebook’s desire to harness the myriad data points of its users has led to overreach and intrusion … as it mines its account holders’ private communications for monetary gain,” the lawsuit contends.

Great start to the New Year guys!

Top Settlements

Holy Hyundai! (ok, bad, I know) A preliminary $395 settlement has been reached in a consumer fraud class action pending against Hyundai Motor Corp. and Kia Motors alleging gas mileage rating were overstated by the automotive manufacturers. The settlement will affect some 600,000 of Hyundai’s 2011-13 models and about 300,000 of Kia‘s 2011-13 models in the US.

The back story? ….In November 2012, Hyundai and Kia Motors agreed to restate expected gas mileage for 1.1 million vehicles in North America, following an investigation by the Environmental Protection Agency. The automakers admitted they after overstated mileage claims on vehicle window stickers for 900,000 vehicles in the United States. The settlement impacts about 600,000 of Hyundai’s 2011-13 models and about 300,000 of Kia‘s 2011-13 models in the U.S. Hyundai’s settlement is valued at up to $210 million, while Kia’s is valued at $185 million.

The 2012 restatement reduced Hyundai-Kia’s fleetwide average fuel economy from 27 to 26 mpg for the 2012 model year. Individual ratings, depending on the car, will fall from 1 mpg to 6 mpg. Most vehicles saw combined city-highway efficiency drop by 1 mpg, the Detroit News reports. Exact figures will depend on how many customers elect to participate in the settlement’s one-time lump sum payment option or remain in the lifetime reimbursement program, the automakers said.

The Hyundai Kia settlement will resolve more than 50 lawsuits filed across the country to address the issue. Hyundai agreed to add the option of taking a lump sum payment. The proposed cash amount, which varies by vehicle model and ownership type, will result in an average payment of $353 to Hyundai owners and lessees. For example, an owner of a 2012 Elantra would receive a lump sum payment of $320 minus any previous reimbursement payments. For Kia owners, the proposed average cash lump-sum amount will be about $667.

A federal judge is expected to review the proposed settlement for preliminary approval in early 2014. If approved, settlement notices will be sent to individual class members. To get the full skinny on initial details of the settlement, you can visit hyundaimpginfo.com or www.kiampginfo.com.

Royal Health to Shell Out a Royal $1.94 Million …in unpaid overtime. Yup. A preliminary settlement has been reached in an unpaid overtime class action lawsuit pending against Royal Health Care of Long Island LLC. Employees who filed the class action alleged the company violated the Fair Labor Standards Act and New York state labor laws by not paying them overtime pay.

In their employment lawsuit, the 411 plaintiffs allege Royal Health misclassified their positions as Representative, which are exempt from the overtime provisions stipulated under the FLSA and NYLL, and thereby failed to pay Plaintiffs overtime when they worked in excess of 40 hours in a workweek.

Under the terms of the Royal Health settlement, the Royal Health will pay $1.94 million to plaintiffs who worked eight weeks or more, between May 2006 to May 2013. If approved, funds will be distributed proportionally among the Class Members based on number of weeks each worked at Royal Health Care. An incentive award of $10,000 each will also be given to the four original named plaintiffs.

A Fairness Hearing is scheduled for January 6, 2014. The Royal Health Care Unpaid Overtime Class Action Lawsuit is Chandrakalli Sukhnandan et al. v. Royal Health Care of Long Island LLC, Case No. 1:12-cv-04216, U.S. District Court for the Southern District of New York.

Ok Folks, That’s all for this week. Happy New Year! Here’s to a peaceful and prosperous 2014 for all.

Week Adjourned: 2.19.10

Top Class Actions Buzz off Google Buzz?

The Internet’s A-Buzz. Over Google Buzz—specifically a class action lawsuit filed by a Harvard Law student, Eva Hibnick, who is alleging that her contacts and contact information were made public by Google when it introduced Buzz, without her authorization.

Here, here I say. I also logged onto my email the morning Google Buzz was launched to find a list of my contacts displayed by the new social networking program. What? Who asked you to do that—was my first thought. It was completely inappropriate—not to mention unnecessary. 

As Ms. Hibnick so appropriately put it—she was “shocked to learn that my email contacts may have been shared with others without my knowledge or consent. I signed up for a private email service, not a social networking site.” 

The lawsuit seeks to enjoin Google from continuing to operate Buzz without appropriate internet privacy safeguards and it seeks damages, including statutory damages of $100 per day per user.

Enjoin, by the way—in legal terms—means to direct, require, command, or admonish. Personally, I favor command. 

Top Settlements

Apropos for Black History Month… History was made on Thursday—when a settlement over a long- Continue reading “Week Adjourned: 2.19.10”