National City Bank

Week Adjourned: 4.1.11

Top Class Actions

Rosetta Stone getting a lesson in securities litigation? The manufacturer of learning software—and apparent sure-fire way to win the girl (see ad above), got hit with a securities lawsuit this week, over allegations that they’re not playing straight, so to speak. The suit, which has not yet been certified, was filed on behalf of purchasers of the common stock of Rosetta Stone, Inc. (“Rosetta Stone” or the “Company”) (NYSE: RST) between February 25, 2010 and March 1, 2011, inclusive (the “Class Period”).

The specific allegations? Violations of federal securities laws—such as the free and lower-priced competitive product offerings, not a temporary reduction in advertising, was having a material adverse effect on the Company’s Class Period revenues, particularly U.S. consumer revenues; and that the favorable sales booking numbers Rosetta Stone reported during the Class Period was the result of key retail partners maintaining inventory of the Company’s products well above historic levels; and—oh yes—there’s more—that Rosetta Stone’s reported sales bookings and revenues during the Class Period were the product of manipulation.

However, on February 28, Rosetta Stone announced fourth quarter revenue of $74.3 million, a 5% decrease from the prior year, net income on a GAAP basis of $5.0 million, a decrease of 60% from the 2009 fourth quarter. On this news, RS’s shares fell $1.77 to $13.19 per share. Let’s hope it’s not just the shareholders who get an education from this.

Top Settlements

$17 million for workplace asbestos exposure. Sounds nice—but maybe not so much. As big Continue reading “Week Adjourned: 4.1.11”

Week Adjourned: 1.21.11

Top Lawsuits

Dilantin on the Defense. Pfizer, Parke Davis and Warner Lambert are facing a drug-related class action—this time over the alleged development of what can be a fatal skin disease—Stevens Johnson Syndrome (SJS) or Toxic Epidural Necrolysis (TEN)—associated with the use of drugs that contain Dilantin.

The defendants make drugs used to treat epilepsy that contain Dilantin. The plaintiffs claim that it caused them or their deceased relatives to develop SJS/TENS.

Just in case you’re wondering what SJS/TENS is—it is characterized by the discoloration or exfoliation of skin, the shedding of hair and nails, hives or burns to the body, loss of eyesight and/or damage to internal organs, according to the suit. And it turns out that certain racial groups can be more susceptible to SJS/TENs that others.

The suit claims that despite mounting evidence of Dilantin’s risks, especially to different populations, the defendants aggressively marketed their products and failed to report associated severe reactions. The plaintiffs allege they were unaware of how dangerous their prescriptions containing Dilantin could be. One plaintiff was originally prescribed a medication containing Dilantin over 10 years ago, but claims that the statute of limitations has not expired because he was not aware of the source of his injuries until within the last two years.

The list of allegations reads like a rap sheet—strict products liability, negligence, failure to warn, negligence in bringing Dilantin to market, negligent misrepresentation, misrepresentation by omission, negligence per se, fraud and misrepresentation, fraud by concealment, violation of the Illinois Consumer Fraud Act and wrongful death.

Top Settlements

Is the tide finally turning? With BP and the Gulf Oil Spill at front of mind—this possible Continue reading “Week Adjourned: 1.21.11”

Week Adjourned: 1.14.11

Top Lawsuits

Still Bugged by Similac…Remember the Similac recall in September? Well, a class action lawsuit was filed this week over the beetle-laden baby formula.

Plaintiffs, John L. and Jennifer M. O’Neil filed the suit against Abbott Laboratories Inc. (Delaware) and Abbott Laboratories, the makers of Similac baby formula, claiming that the Similac Isomil Sensitive formula they gave their two-month old baby in September made the child sick with diarrhea. So, they wisely switched formulas on the advice of their doctor, and low and behold their infant recovered.

At the end of September, Abbott issued a voluntary recall order after small common beetles were found at its Michigan manufacturing facility. The O’Neils claim that the products were contaminated to such an extent that their baby became ill, and consequently required medical treatment.

Heads-up—the proposed class includes consumers who purchased Similac Advanced, Similac Sensitive and Similac Go and Grow in 2010 and who fed the Similac product to infant children who then subsequently became sickened.

Top Settlements

National City Bank Overdrew on Overdrafts…It looks like 2011 is going to be all about going after financial fraudsters—including banks. This latest settlement of a class action filed against National City Bank is no exception. In fact, it’s a preliminary $12 million settlement brought by Continue reading “Week Adjourned: 1.14.11”