Week Adjourned: 4.11.14 – Dog Treats, Hilton Hotels, Actos

The week’s top class action lawsuits and settlements. Top stories this week include deadly dog treats, Hilton hotels and Actos diabetes drug settlement.

Cadet Duck Jerky TreatsTop Class Action Lawsuits

Dog treats manufacturer to be treated to a little justice perhaps? IMS Trading Corp, aka IMS Pet Industries—maker of Cadet duck jerky treats, is facing a consumer fraud class action lawsuit alleging it sold products containing duck jerky imported from China that caused dogs to become sick or die. The dog treat lawsuit alleges the company, IMS Trading Corp, aka IMS Pet Industries, is in violation of the New Jersey Consumer Fraud Act, and is guilty of unjust enrichment as they falsely assured consumers through the product packaging that the treats were healthy for dogs. Several unnamed companies involved in the manufacture and sale of the dog treats are also named as defendants in the lawsuit.

Lead plaintiff, Marie Dopico, who owns several small dogs, alleges her dogs nearly died after she fed them Cadet duck jerky dog treats she bought in October from a ShopRite grocery store in New Jersey. She claims she had to pay veterinary expenses and other related costs to save her dogs’ lives.

The proposed lawsuit claims that there could be thousands of plaintiffs, as other consumers in New Jersey and across the US have suffered similar damages as a result of defendants’ conduct. The putative class and subclass includes consumers who, up to six years prior to the January filing of the lawsuit, purchased IMS dog treats and whose dogs got sick or died as a result of consuming the allegedly unhealthy and dangerous treats.

According to the lawsuit, the packaging for IMS’ dog treats allegedly states the products do not contain artificial colors, additives, fillers or by-products. The packaging also states that the treats are “healthy and natural treats with only the finest ingredients.” The same claims are found on the company’s website, the plaintiffs allege.

The lawsuit states that in November 2011, the US Food and Drug Administration issued warnings stating that dogs can become ill after eating treats containing duck jerky made in China. The agency has said that more than 3,600 dogs in the US have become ill after eating Chinese jerky treats. This information was not fully disclosed on the company’s website, plaintiffs allege, and they accuse the defendants of hiding the warnings to increase or maintain sales.

“No reasonable person would feed dog treats to their dogs knowing that there was a substantial risk of death or illness from doing so,” the lawsuit states. “Dog owners consider their pets to be members of the family, and become very distressed when their dogs pass away or become seriously ill.”

Hey—no reasonable manufacturer would consider producing food that makes animals ill.

Hilton not honoring wage & hour laws? Maybe. They got hit with a putative wage and hour class action lawsuit this week, alleging violations of the Fair Labor Standards Act (FLSA)  and the California labor law Act. In addition to Hilton Worldwide, named defendants include Doubletree LLC, and Crestline Hotels and Resorts LLC.

Filed by Nelson Chico, the Hilton wage & hour lawsuit, entitled Nelson Chico v. Hilton Worldwide Inc. et al., case number BC541043 in the Superior Court of the State of California, County of Los Angeles, alleges failure to pay overtime wages and failure to provide meal or rest breaks. Chico, a former employee, claims the defendants also allowed or required employees to work off the clock.

Further, the lawsuit states the defendants failed to provide itemized statements for each pay period, failed to keep accurate records and failed to compensate employees for necessary expenditures.

Heads up people—the potential employment class action seeks to represent aggrieved employees who worked for the defendants within the past four years.

Top Settlements

Actos maker ordered to pay up huge. Japanese drug maker Takeda Pharmaceutical Co Ltd, got hit with a heart-attack inducing jury award this week—they were ordered to pay $6 billion in punitive damages in settlement of allegations the company concealed information regarding the risk for cancer associated with its diabetes drug Actos. Eli Lilly and Co, a co-defendant in the case, was ordered to pay $3 billion in punitive damages and $1.45 in compensatory damages by the jury in Louisiana on Monday.

According to Lilly, 75 percent of the liability was allocated to Takeda and 25 percent to Lilly. Takeda plans to dispute the awards, stating that judgments were entered in its favor in all three previous Actos trials. This was the first federal case to be tried in a consolidated multidistrict litigation comprising more than 2,900 lawsuits. Germany and France suspended use of the drug in 2011 due to concerns of a possible link to cancer.

More to come on this? Very possibly. Stay tuned.

Ok Folks, That’s all for this week. See you at the bar!

Week Adjourned: 12.10.10

Top Lawsuits

Hilton’s in the news this week. This time it’s not Paris who’s behaving badly, but rather the hotel chain that is her family namesake. A former employee of Hilton Worldwide Inc, is suing the company over allegations of unlawful employment practices. No. Really? 

Yes. Specifically, the Hilton lawsuit contains facts related to nonpayment of wages, harassment, and sexual favoritism.

In a nutshell, Brian Marcus was employed by Hilton as the Director of Food & Beverages at the Hilton San Diego Bayfront Hotel (“Bayfront”) in San Diego and during his employment, Marcus alleges that he was subjected to harassment and then terminated so that Hilton could avoid having to pay him a bonus that he had already earned. Both of these actions are in violation of California law.

Mr. Marcus alleges that “just over a month before the end of 2009, Hilton terminated Mr. Marcus’s employment and refused to pay him any portion of his bonus for 2009 which he had earned under Hilton’s bonus program. The Complaint alleges that Mr. Marcus’s termination was part of a plan by his supervisor to eliminate him from the hotel so that the supervisor could continue to take additional control without intervention. Hilton created the system by which this supervisor was able to manipulate others for her financial gain and the financial detriment of people like Mr. Marcus.”

In addition, “Hilton subjected Mr. Marcus to a hostile, abusive and intimidating work environment in which sexually inappropriate behavior permeated the workplace. Mr. Marcus is seeking lost pay and benefits and damages associated with mental suffering.”

Bad behavior, it seems, is the Hilton Modus Operandi…                                  

Top Settlements

Just in time for Christmas—five years on. A jury in El Paso has awarded a $132 million settlement to the victims of a bus crash that killed two people and critically injured several Continue reading “Week Adjourned: 12.10.10”