Week Adjourned: 6.17.11

Top Class Actions

Logistical Error? Nothing like a lawsuit to improve your company’s standing—or attract quality employees—as FTDI West is about to find out. The company, located in California and Florida, got hit with an unpaid overtime class action lawsuit this week.

The gist of the lawsuit is labor code violations, well, that’s a no-brainer. Specifically, the lawsuit states that FTDI West Inc, violated: Sections 226.7 and 512 of the California Labor Code by failing to provide adequate meal breaks to employees involved, section 226.7 of the California Labor Code by failing to provide adequate rest breaks to employees involved, Section 510 of the California Labor Code by failing to pay proper overtime wages, Sections 203 and 226 (a) of the California Labor code by providing involved employees paystubs not in compliance with California law and not paying “waiting time” penalties, as well as two other causes of action as related to Business and Professions Code Section 17200 and the common law tort of unjust enrichment.

The overtime claims asserted deal with non-payment of “double time” wages. Double time wages are due for any work over 12 hours in a workday or any work beyond eight hours on any seventh consecutive day of a workweek.

The lawsuit defines its class members as “All current and former employees of Defendants who were employed as non-exempt employees at any of Defendants’ locations anywhere in California, at any time from four years prior to the initiation of this action until the present.” 

Top Settlements

Drywall Might Settle but the Dust Surely Hasn’t… Remember all the defective Chinese drywall lawsuits of not so very long ago? Well, they are slowly making their way through the courts to settlement land. Case in point—Banner Supply has agreed a $54.4 million settlement of a class action lawsuit brought by homeowners in the Orlando, FL area. In fact, the agreement covers 2,000 to 3,000 homes south of Orlando.

According to Builderonline something like 95 companies have been implicated as distributors of the sulfur-tainted drywall and named in subsequent lawsuits filed against the Chinese manufacturers. The defendants are accused of being the source of tainted drywall. While Banner Supply tops the list, others suppliers reportedly include ProSales L&W Supply, ProBuild, Stock Building Supply, and 84 Lumber.

While $54.5 million might seem a large settlement, it may only work out to between $18,000 and $24,000 per home, and estimates suggest the cost of repairing the affected properties could reach $100,000.

Defective Boat Injury leads to $31M Award. Ok. There’s bad design, and BAD DESIGN. In this case, I’m not talking about an infraction of the Home & Garden variety, but rather something that warranted a $31 million award. Two women brought a defective product and personal liability lawsuit against MasterCraft, after suffering some pretty horrendous injuries that good design likely would have prevented. 

Short version, in 2006 Nichollette Bell and Bethany Wallenburg were among 12 passengers riding in a MasterCraft X-45 wakeboarding craft. They were sitting on the bow of the boat when it was suddenly submerged as the driver of the boat went to retrieve a fallen wakeboarder. As a result the women were swept off the boat by the force of water and into the lake. The boat’s propeller struck Bell on the head, ripping out an eye and leaving her with brain damage. The propeller also slashed Wallenburg’s left elbow and lower back, resulting in muscle and nerve damage. In their lawsuit, the women alleged the boat was defectively designed. They also alleged the driver handled the boat negligently. Not surprisingly, the jury found MasterCraft 80 percent at fault and the driver 20 percent at fault. 

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

Week Adjourned: 5.13.11

Top Class Actions

Put your paycheck on a diet? These women don’t think it’s a such a good idea. Two Long Island women who worked for Jenny Craig filed a unpaid wages class action lawsuit, alleging that the well-known weight-loss chain put their paychecks on a diet.

The women, in a suit filed May 10 In New York State Supreme Court in Manhattan, claim that Jenny Craig Operations Inc., the Carlsbad, Calif.-based chain owned by multi-national food giant Nestlé’s, improperly shortchanged them by a 1/2 hour a day for every shift they worked, even though they worked during their 30-minute break times. The alleged underpayments violate New York’s labor laws, according to court papers.

The suit, which seeks class action status, was filed by Tammy Weinstein, of Bellmore, who has been a program director and weight loss consultant since November 2002 at Jenny Craig locations in Valley Stream and Massapequa, and by Melissa Pallini, of Holbrook, who was a weight loss consultant, program director, part time receptionist, and stocker from June 2008 until June 2010 at the chain’s East Patchogue location.

The suit seeks to represent all New York employees of Jenny Craig who worked as weight loss consultants, receptionists, stock persons, program directors and any other employee at Jenny Craig weight-loss centers. According to court papers, the class included more than 500 people who’ve worked at Jenny Craig since May 2005. The chain has 30 locations statewide, 10 of them on Long Island, in Centereach, E. Patchogue, Great Neck, Farmingdale, Freeport, Hicksville, Huntington Station, Massapequa and Valley Stream.

The employees worked about 15 to 35 hours a week on shifts of five to eight hours one day to five days per week, according to court papers.

Jenny Craig, a commercial program that features portion-controlled, prepackaged meals supplemented by store-bought vegetables and fruit, received top marks this week from Consumer Reports for diet success. The chain offers support through weekly counseling sessions.

The diet chain’s celebrity spokespersons have included actress Kirstie Alley, Valerie Bertinelli, Queen Latifah, actresses Sara Rue and Nicole Sullivan, actor Jason Alexander and, since January, actress Carrie Fisher.

Top Settlements

Where there’s smoke, there’s gas… This is certainly an interesting twist on an old theme. A Flordia judge recently ruled in favor of the plaintiffs in litagation over defective Chinese drywall. The Hillsborough County judge, Robert Foster, ruled that homeowners’ insurance should Continue reading “Week Adjourned: 5.13.11”

Week Adjourned: 11.26.10

Top Class Actions

More Buzz on Google…only this time it’s not about Buzz. A potential class action lawsuit was filed this week against the company that claims the mantra ‘do no evil’. The lawsuit alleges that Google violated privacy laws by scanning Gmail accounts in order to sell and place advertisements on account holder’s user screens. Ummm. That doesn’t sound like something a good corporate citizen would do, at least to me.

Specifically, the lawsuit claims that Google violates The Electronic Communications Privacy Act (ECPA) of 1986 by scanning the content of all Gmail from any sender and uses the information to sell and place advertisements. (Kind of makes me think back to that old Rockwell song (above)—only Google wasn’t even around back then…) “As result of Google’s actions in intercepting non-Gmail account holders’ emails, Google obtains a monetary benefit without consent of the Class members and without compensation to them,” the lawsuit states.

I have to admit, I have often wondered how all those topic specific ads crop up on the side of my Gmail screen…

Top Settlements

Isn’t ‘Wholesale’ Supposed to Mean ‘Discount’? ‘AstraZeneca hit the news rather quietly this week, with the announcement that they have reached two settlements—one nationwide, one in Massachusetts—related to two different classes of purchases of the drug Zoladex.

FYI—Zoladex is used to treat prostate cancer, advanced breast cancer, endometriosis, and Continue reading “Week Adjourned: 11.26.10”

Week Adjourned: 10.15.10

Citigroup women coming up empty-handed?Top Class Actions 

Equality? What equality! Where’s Gloria? A gender discrimination lawsuit was filed against Citigroup this week, brought by five former directors and analysts and one current employee.

Interestingly, Bloomberg crunched the numbers and found out that Citigroup’s female finance managers, which include bank tellers as well as executives, earned 63.9 cents for every dollar of income men earned in 2000, based on median salaries. Bloomberg analyzed Government Accountability Office (GAO) statistics to produce its report. And, they also found that in 2007, the last year for which data are available, that figure was down—incredibly—58.8 cents. Not only is that number utterly depressing, but it’s going in the wrong direction! 

The suit, filed on behalf of women at job levels from analyst to managing director, alleges that Citigroup is an “outdated boys club” and claims “systematic and pervasive discrimination and retaliation” in decisions involving compensation, promotion and termination.

Top Settlements

Beat Finally Does Go On… Finally—unbelievably, a settlement of the lawsuits against Medtronic over defective Sprint Fidelis leads.

The leads were recalled three years ago in 2007, due to the alleged defect that made the Continue reading “Week Adjourned: 10.15.10”

Week Adjourned: 8.13.10

Top Class Actions

No Answer for No Answer Charges? A couple of major players in the telecommunications game got hit with class actions this week. First up—AT&T. The suit alleges violations of federal truth-in-billing laws, false advertising and deceptive trade practices under New York law, and breach of contract, among other things. 

Lead plaintiff, Los Angeles resident Kenneth Thelian, claims he was charged $12.90 partly for calls that he did not answer. He allegedly complained to AT&T who reversed $8 of the charges, but the company representative “did not adequately explain why these charges were incurred.”

Thelian faced a further $15.81 in roaming charges while traveling in Montreal, Canada in August 2005, again for calls he did not answer. Then, in February and March of 2007, Thelian was billed $92.72. “The bill did not indicate which of these charges were for calls that he did not answer while traveling abroad,” the suit alleges. 

So, maybe time to be checking those phone bills…

And, second up—T-Mobile. This class action alleges that the company puts limits on its unlimited data plan. Ummm. who would have thought…

The suit claims that advertisements for T-Mobile’s “Unlimited Web & E-mail” plans, offered for both Blackberry and other brands of smartphones, promise the consumer access to Continue reading “Week Adjourned: 8.13.10”

Week Adjourned: 6.26.10

Top Class Actions

Anadarko Petroleum. Who? Just know, if you don’t own shares in Anadarko Petroleum breathe easy. If you do own shares, you better strap yourself in.  A shareholder lawsuit seeking class action status was filed against the petroleum company this week, on behalf of anyone who purchased company common stock of between June 12, 2009 and June 9, 2010, inclusive—otherwise known as the “Class Period”. 

Anadarko, it seems, owns 25 percent of the Macondo/Deepwater Horizon well—you know—the gusher currently leaking millions of gallons of oil into the Gulf of Mexico with ramifications so far reaching it’s impossible to get your head around the scope of the disaster.

The suit alleges that Anadarko and certain of its officers, failed to disclose, “among other things:

1)    that there was no effective Exploration and Oil Spill Response Plan for Macondo/Deepwater Horizon;

2)    that BP implemented drilling procedures solely to cut costs at the expense of safety;

3)    that the Company lacked adequate systems of internal, operational or financial controls to maintain adequate insurance reserves or to meet the known or foreseeable risks associated with its deepwater drilling liabilities; and

4)    that defendants lacked any reasonable basis to claim that Anadarko was operating according to plan, or that Anadarko could achieve guidance sponsored and/or endorsed by defendants.”

And the allegations go on, mentioning false and misleading statements that were issued concerning the amount of the clean-up, and the company’s liability etc, all which culminated in massive drops in share prices. So it’s off to court they go. 

Only one problem, if the company is stripped of millions of dollars in lawsuits, and this goes for BP as well, who’s going to pay for the clean-up, and all the other costs we haven’t even begun to see yet?

And it’s on from Big Oil to Big Banks…those leading lights of the international Continue reading “Week Adjourned: 6.26.10”

Week Adjourned: 4.16.10

Next Batch of Census Recruits? (no, but when you hear "Hi Ho" well...)Top Class Actions 

Hi Ho, Hi Ho, it’s off to court we go….

Census Looking for a Few (Really) Good Men? The feds are in hot water this week, facing a lawsuit—the first of its kind—alleging that the Census Bureau screened out job applicants with arrest records, regardless of whether or not the arrest actually led to a criminal conviction.

This has adversely affected “thousands of African Americans, Latinos, and Native Americans,” the suit claims, as they have been “rejected for jobs by the US Census Bureau during the federal government’s massive hiring campaign for this year’s census because of systematic discrimination.” Personally, I wouldn’t have thought the government capable of that level of organization, but hey, it’s possible. And, if it’s true, it’s no laughing matter.

According to a related press release, “Government records show that more than 70 million people in the US have been arrested, but more than 35 percent of all arrests nationwide never lead to prosecutions or convictions,” a sobering statistic indeed. No wonder the police are so busy, busy generating paperwork.

Unfortunately, as the lawsuit points out, African Americans, Latinos, and Native Americans are far more likely to have arrest records and convictions than whites, and so Census’s hiring policies discriminate against people of color in violation of Title VII of the Civil Rights Act. Ummm. 

Top Settlements

The Chinese Drywall Homes…Homes Barely Livable…We Can Rebuild Them…Ok, so it’s not quite like the $6 Million Dollar Man, but… Remember all those stinky drywall stories? Well, a critical settlement Continue reading “Week Adjourned: 4.16.10”

Week Adjourned: 10.9.09

Villa Lago at Renaissance Commons...home sweet chinese drywall home?Top Class Actions

Giving new meaning to Renaissance architecture? Hundreds more people in Florida may be onboard with a new Chinese Drywall class action filed this week. The suit names Coastal Condominiums and Precision Drywall as defendants, and alleges that the toxic drywall used in the construction of Renaissance Commons (at right) is emitting toxic gases into people’s homes. 

During the Florida building boom hundreds of millions of pounds of drywall was shipped to ports around the United States from China. While 25 states have reported issues, problems were first noted in Florida, likely because the defective drywall seems to react strongly in humid conditions. 

Apparently, some 600 Floridians in 30 counties have reported symptoms such as irritated eyes, bloody noses, rashes and insomnia. This certainly puts a new twist on that old expression— ‘there’s no place like home…’

Mario Aliano is one pissed off beer drinker (bad pun, I know). In fact he’s so angry Continue reading “Week Adjourned: 10.9.09”

Week Adjourned 5.1.09

It’s been a busy week…

Top Class-Actions: Chinese Drywall, Park West Gallery, Mercedes-Benz

Oh, if these walls could talk. Some good news for homeowners who have found themselves victims of Chinese drywall. The Chinese drywall fiasco is generating a lot of activity, including a class action lawsuit filed on April 24th, by a couple in Florida against Georgia-Pacific Gypsum, and 84 Lumber. The suit alleges the companies sold sulphur-contaminated drywall and timber. Ironically, the products were touted as being ‘green’. Continue reading “Week Adjourned 5.1.09”