Tag: Skechers

Week Adjourned: 4.12.13 – Apple, Skechers, Path, Fisker

This week, the top class actions in the news are Apple, Skechers, Path and Fisker. Week Adjourned is your weekly wrap of class action lawsuits and settlements for the week ending April 12, 2013.

Week Adjourned Apple Fisker Path SkechersTop Class Action Lawsuits

No, the Path to Profit is not through Spam…as Path social media can now attest to. The mobile social network got hit with a potential class-action lawsuit this week for allegedly sending unsolicited text ads to people’s cell phones, in violation of the Telephone Consumer Protection Act (TCPA).

Filed in Illinois, by Kevin Sterk, the Path lawsuit alleges that Sterk received an unsolicited SMS message in March from Path. The message stated that someone else wanted to show Sterk photos on the service, and contained a link to a site where he could register to join. Sterk claims he never authorized Path to contact him via SMS. Further, the lawsuit alleges the company has sent similar text messages to “thousands” of other cell phone users.

“By making these unauthorized text message calls, [Path] has caused consumers actual harm, not only because consumers were subjected to the aggravation that necessarily accompanies the receipt of unauthorized text message calls, but also because consumers frequently have to pay their cell phone service providers for the receipt of such unauthorized text message calls,” the TCPA lawsuit states.

The Path class action lawsuit contends that these unsolicited messages violate the TCPA, which prohibits companies from using automated dialing services to send SMS messages without the recipients’ consent. The law provides for damages of $500 per incident. Sterk, who is seeking class-action status, is asking for monetary damages and an order prohibiting Path from sending unsolicited text messages.

I wish someone would come up with an app that would enable the average Joe to spam the spammers. Now, that could be fun!

Forewarned isn’t Forearmed at Fisker? The folks at Fisker are facing an employment class action lawsuit filed over allegations it failed to provide 60 days notice to employees who were part of recent mass layoffs. Those layoffs are allegedly in violation of US and California labor laws.

FYI—the US Worker Adjustment and Retraining Notification (WARN) Act, a federal law, stipulates that companies with over 100 employees must provide 60 days notice prior to laying off their employees. There is also a similar requirement in place under California state law.

The employment lawsuit against Fisker alleges the company failed to pay the employees their 60 days pay and benefits that they would have been received had they been provided their duly entitled 60-day notice. Further, the lawsuit claims Fisker failed to notify California’s state Employment Development Department of its layoff plans, as well as the local workforce investment board, as well as the top elected officials in Anaheim and Orange County.

Top Settlements

A bit Sketchy on Skechers? Well, it’s official, but not approved. Confused? Don’t be. Last September we reported that Skechers has agreed to a preliminary $40 million settlement of a consumer fraud class action brought by disgruntled customers who claim the company misrepresented the benefits of the “toning shoes.”

Entitled Grabowski v. Skechers U.S.A., Inc., No. 3:12-cv-00204 (W.D. Ky.), the lawsuit concerns claims that Skechers violated certain state laws and consumer protection statutes in connection with the marketing and sale of its toning shoes. Not surprisingly, Skechers denies those allegations.

It looks as if final approval may be at hand, as the fairness hearing was scheduled for mid-March 2013. This matters to you purchased eligible Skechers toning shoes from August 1, 2008, up to and including August 13, 2012 in the United States.

To find out more information and to download claims forms, visit: http://www.skecherssettlement.com/

Bad Apples, eh? This one is all over the wires today…Apple—the faltering god of all things techno—has reportedly agreed to a $53 million settlement in the class action lawsuit pending over alleged defective iPhones and iPod Touch.

The unfair business practices class action was originally filed against Apple in 2010, and centered around claims that the company failed to honor its warranty obligations by fixing or replacing defective devices.

According to a report by CNET, thousands of owners of the original iPhone, iPhone 3G, iPhone 3GS, or the first three generations of the iPod Touch who were unsuccessful in getting Apple to honor its warranty related to repairs and replacements, can submit claims in the suit. These devices carried one-year standard and two-year extended warranties.

The settlement has yet to be approved, and full details have not been made public. Wired is reporting that depending on how many people submit claims, individual payouts could be approximately $200. Stay tuned for more on this one.

Ok—that’s a wrap. See you at that bar…

Week Adjourned: 5.18.12 – Tetley Tea, Skechers, Verizon

The weekly wrap on top class action lawsuits and settlements for the week ending May 18, 2012. This week’s top stories: Tetley Tea, Skechers and Verizon.

Top Class Actions

Actually, this week it’s Top Consumer Fraud Class Actions—because false advertising class action lawsuits seem to be the theme right now…

What’s Brewing at Tetley Tea? Let’s take Tetley Tea as an example—as of this week, the Tetley Tea is facing a federal consumer fraud  class action lawsuit over allegations it falsely advertises the health benefits of its tea products, specifically that they are an “excellent” or “natural” source of antioxidants.

The Tetley Tea lawsuit states, “Tetley utilizes improper antioxidant, nutrient content, and health claims that have been expressly condemned by the FDA in numerous enforcement actions and warning letters” to other companies that made similar antioxidant claims, such as Unilever’s Lipton Tea.

The lawsuit is brought on behalf of all consumers in California who purchased Tetley Tea’s Classic Blend Black Tea, British Blend Black Tea, Pure Green Tea, Iced Tea Blend Tea, and/or Iced Tea Mix Tea within the last four years.

The lawsuit is seeking damages, restitution and other bits and pieces, for alleged claims of unlawful, unfair and fraudulent business acts and practices; misleading and deceptive advertising; untrue advertising; and violation of the Magnuson-Moss Act and Beverly-Song Act. That’s some laundry list.

Top Settlements

Couple of big preliminary settlements on—you guessed it—consumer fraud/false advertising class action lawsuits to tell you about this week…

Skechers Sketchy Health Claims. This one, all over the media, implies that Skechers may be guilty of sketchy health claims. At least the FTC thinks so. But not the shoe manufacturer, of course. Nevertheless, Skechers USA has agreed to pay $45M to resolve allegations brought by the US and state governments that it deceived customers about the health benefits of its Shape-ups athletic shoes.

The allegations center on claims that the shoe manufacturer’s athletic toning shoes help people lose weight and strengthen their buttocks and legs. Skechers aren’t the first athletic shoe maker to face penalties for their advertising claims—Reebok also got hit and settled for $25 million, but hey, according to news reports, these shoes are big business. Skechers reportedly made $1.4 billion in 2009.

According to a statement by the US Federal Trade Commission, Skechers, based in Manhattan Beach, California, also made false claims in advertising for its Resistance Runner, Tone-ups and Toners shoes.

According to a report by Bloomberg, the ads for Skechers that were challenged by the FTC include one for Shape-ups that told consumers they could “get in shape without setting foot in a gym,” according to the statement. The FTC alleges the company made unsupported claims that the shoes would provide more weight loss and muscle toning than regular fitness shoes.

You may be a class member if you purchased eligible Skechers toning shoes since August 1, 2008, with limited exclusions. The Court has not yet ruled on whether the settlement should be preliminarily approved. The Court may not grant preliminary approval or may require certain changes to the proposed settlement.

If the Court grants preliminary approval of the proposed settlement, you will have rights which you may wish to exercise, including rights to opt-out of the settlement or object.

Under the terms of the preliminary settlement, Skechers has agreed to provide refunds to consumers who bought the following Eligible Shoes as new since August 1, 2008:

Skechers Shape-ups rocker bottom shoes

Skechers Resistance Runner rocker bottom shoes

Skechers Shape-ups Toners/Trainers

Skechers Tone-ups with podded outsoles

Skechers Tone-ups non-podded sandals

Skechers boots

Skechers clogs

Skechers trainers (Tone-ups, non-podded sole)

The total refund you can receive from the Skechers shape-ups settlement will depend on how many Eligible Shoes you purchased from August 1, 2008, onwards, as well as the total number of valid claim forms submitted by other Class Members.

Possible reimbursements could be:

$40 – $80 for Shape-ups;

$27 – $50 for podded sole shoes;

$20 – $40 for Tone-ups (non-podded sole); and

$42 – $80 for Resistance Runners

To find out more about the Skechers settlement, whether or not you could qualify as a class member, and to download forms, visit http://www.skecherssettlement.com.

Verizon Calling —Verizon Land Lines that is. A preliminary settlement has been reached in a consumer fraud class action pending against Verizon. This time, it’s not health claims that are the issue—but third-party charges.

If you were billed for third-party charges on your Verizon landline telephone bill, you may be entitled to a payment from this class action settlement, if the settlement is approved.

The Settlement will provide for payments to all class members who properly submit Claim Forms by November 15, 2012. The payments will be either $40 in the case of approved Flat Payment Claims or the full amount (i.e., 100%) of unauthorized Third-Party Charges you paid in the case of approved Full Payment Claims. Some class members may have a claim for less than $40. Class counsel contends that some class members may have a claim for hundreds of dollars, or more.

You must submit a claim form in order to qualify for payment. This is the only way to get a payment. You may submit a Flat Payment Claim for $40 or a Full Payment Claim for 100% of all unauthorized charges you paid. To file a claim, you must complete a Claim Form either online or download a Claim Form, print it out and mail it to the Settlement Administrator by November 15, 2012. You can find the claims forms by visiting www.verizonthirdpartybillingsettlement.com.

The Court in charge of this case has given its preliminary approval to the Settlement but still has to decide whether to give final approval to the Settlement. Payments will be made if the Court gives final approval to the Settlement and after appeals, if any, are resolved.

OKee dokee. Enough business as usual—it’s the weekend! See you at the bar—where the health benefits are obvious and require no advertising…