Week Adjourned: 8.25.17 – Goldman Sachs, Talc Powder, Sony

Top Class Action Lawsuits

Did they not get the memo? Goldman Sachs Group (GSG) Inc, got hit with a discrimination class action lawsuit filed by a black female banker working in GSG’s personal wealth management unit. Specifically, plaintiff Rebecca Allen alleges GSG steered top clients to her Caucasian colleagues and denied her promotions because of her race. Seriously?

Allen states in the Goldman Sachs discrimination lawsuit that Goldman’s senior leadership team is virtually all-white and favors white bankers for promotions and lucrative accounts, resulting in their earning more than their black colleagues.

“Simply put, Goldman Sachs does virtually nothing to hire, promote or develop black talent, instead focusing its efforts on retaining and promoting white employees to positions of leadership,” the complaint states.

Allen was hired by GSG in 2012. According to the complaint, in 2016 she was removed from an account she had worked on for three years by a Goldman partner, Christina Minnis, who is also named as a defendant in the lawsuit. Allen says her supervisor met with Minnis about the decision and said she made racist and anti-Semitic comments about Allen, who is also Jewish.

Well, that about covers all the bases. See you in court!

The case is Allen v. Goldman Sachs Group Inc, U.S. District Court for the Southern District of New York, No. 1:17-cv-06195. 

Top Settlements

Big award for talcum powder cancer lawsuit … California just handed down a $417 million verdict to the plaintiff who claimed she developed terminal ovarian cancer after using the company’s talc-based products such as Johnson’s Baby Powder. The talc cancer case is the first to be heard in California against Johnson & Johnson (J&J). It is brought by California resident Eva Echeverria who alleges the company failed to provide adequate warning about the risk for cancer linked to the use of its talc-based products.

The Los Angeles Superior Court jury found in favor of Echeverria, awarding $70 million in compensatory damages and $347 million in punitive damages. This is the sixth trial against J&J to go to court, following five previously heard in Missouri state court which resulted in more than $307 million in damages against J&J. Prior to the Echeverria verdict, the largest single award was $110 million.

During the trial, Echeverria’s attorney’s alleged that despite J&J’s knowledge of years of studies that show a link between ovarian cancer and death and the use of genital talcum powder products, the company continued to encourage women to use those products.

Talcum powders are made of talc, a mineral comprised of bits of magnesium, silicon and oxygen that absorbs moisture. Some talc contains asbestos, a known carcinogen, in its natural form. While J&J is likely using in court information that commercial products sold in the US have been asbestos-free since the 1970s, some women used talc before the 1970s. Echeverria is 63 years old, and claims she used J&J products all her life. Feasibly, she used talc containing asbestos for more than a decade.

The case, which J&J said it plans to appeals, is Echeverria et al v. Johnson & Johnson, Los Angeles Superior Court, No. BC628228.

A bit water-logged over at Sony? Sony has agreed a preliminary settlement potentially ending a class action lawsuit alleging the company designed, manufactured, distributed, advertised and sold certain Mobile Devices that were alleged to be misrepresented as “waterproof.” The consumer fraud lawsuit asserts that the phones are, in fact, “not waterproof and are not designed for or capable of ordinary underwater use.”

The class action also claimed that “Sony exploited certain international water resistance ratings in order to launch a deceptive marketing campaign promoting the Devices.”

The Plaintiffs seek certification of a nationwide class of all persons who purchased the devices as well as Illinois and California subclasses, excluding certain persons and entities who/which, by way of example, purchased the devices for resale.

The proposed Sony settlement has received preliminary approval and would settle class claims in the United States of US customers only. The final Fairness Hearing is scheduled for December, 2017.

Those included in the class purchased, own(ed), received as a gift or received as a customer service exchange the Mobile Devices manufactured, marketed, sold and/or distributed by Sony Mobile Communications (USA), Inc. in any of the 50 States, the District of Columbia and Puerto Rico.

The settlement provides for: (1) a warranty extension; (2) changes to packaging, labeling and advertising; and (3) a claim process relating to prior water-related warranty claim rejections.

Eligible class members may submit claims for prior water-related warranty claim rejections by Sony for their in-warranty Mobile Devices. This is the only way to be reimbursed for 50% of the at-issue Manufacturer’s Suggested Retail Price (“MSRP”) for the applicable Mobile Device. 

Ok – That’s a wrap for this week. See you at the bar!

Week Adjourned: 12.19.14 – Sony, Graco, Comcast

The week’s top class action lawsuits and settlements. Top class action lawsuits include Sony, Graco and Comcast.

SonyTop Class Action Lawsuits

So who’s NOT talking about Sony’s decisions this week…chief among them, an alleged decision to risk a data breach rather than upgrade their software to prevent hacking. At least that’s what past and present Sony employees are alleging in their proposed data breach class action lawsuit filed this week—the first of 3 such lawsuits.

The complaint, filed against Sony Pictures Entertainment Inc., claims the recent data breach which resulted in employee data theft, could have been prevented. Well, wouldn’t that have changed the course of history…

The data breach has resulted in a situation former employees claim is “better suited to a cinematic thriller than to real life.” Specifically, the class action lawsuit alleges Sony failed to take adequate precautions to prevent the massive data breach and protect the personal information of more than 15,000 employees, both past and present.

“Sony failed to secure its computer systems, servers and databases despite weaknesses it has known about for years” the complaint states. “Their most sensitive data, including over 47,000 Social Security numbers, employment files including salaries, medical information, and anything else that their employer Sony touched, has been leaked to the public, and may even be in the hands of criminals.” The lawsuit cites an email from Sony’s general counsel, among other internal documents obtained in the leak, that expresses concern that the company’s network security and email retention policies left it vulnerable to an attack, such as the one it has now suffered.

The lawsuit also claims that Sony had previously suffered cyberattacks, including a data breach in 2011 where hackers gained access to the company’s PlayStation Network and Qriocity systems, exposing up to 31 million user’s data. Remember those? They were consolidated and settled for $15 million in games, online currency and identity theft reimbursement. However, according to the current lawsuit, the security issues were not resolved. Way to go.

Here’s the stunner: according to the lawsuit, rather than remedying the ongoing security concerns fully, Sony executives “made a business decision to accept the risk of losses associated with being hacked” rather than pay for expensive system upgrades. “If only Sony had heeded its own advice in time,” the complaint says.

Initially, current Sony employees were offered identity theft monitoring, this was eventually extended to 12-month coverage by a third party to ex-employees. The lawsuit states the delay was unfair to ex-employees, some of whom, including the two class representatives, already purchased expensive identity theft monitoring packages.

According to the complaint, Sony’s ex-employees call the company’s deal inadequate, noting that the credit monitoring and insurance it provides cannot prevent identity fraud, only inform them when it happens. Additionally, the lawsuit alleges that federal agencies have acknowledged that hackers sometimes hold stolen data for over 12 months and that identity fraud can continue to be a threat for many years.

Consequently, the Sony data breach class action lawsuit seeks more substantial protections, including credit card and banking monitoring services for five years, as well as identity theft insurance and credit restoration services, also for five years. The suit asks the court to force Sony to do more to address the potential identity fraud that may follow those affected by the breach indefinitely.

The proposed class includes current and former employees whose personal information was compromised in the leak, including two subclasses in Virginia and California.

The case is Corona et al v. Sony Pictures Entertainment, Inc., case number 2:14-cv-09600, in the U.S. District Court for the Central District of California. 

Is Graco’s Child Seat a Child Trap? A proposed defective products class action lawsuit pending against Graco Children’s Products Inc, over allegations that their children’s car-seats have defective belt buckles, got greenlit this week.

Filed in March 2013 by plaintiff Seth Long, the Graco class action alleges violations and claims under the California Consumers Legal Remedies Act and Unfair Competition Law, and breach of implied warranty under the Song-Beverly Consumer Warranty Act and the federal Magnuson-Moss Warranty Act.

In February 2014, Graco issued a recall of 3.7 million forward-facing toddler seats due to alleged defects with the buckles, which could become so plugged up with food, juice, formula or vomit that they won’t open, according to Long’s complaint. According to court documents, the defective buckles may become stuck in the latched position, making it harder to pull a child out of the car. In July, Graco added a further 1.9 million car seats to the recall.

The National Highway Transportation Safety Agency published a series of reports on the defective car seats at the time of the February recall, and stated that it had been investigating the belt buckles since 2012. Among the problems the Agency encountered during testing were that the buckles would become impenetrable and parents would have to pick up the child and the seat, which together could weigh over 70 pounds, to lift it out of the car in the event of an emergency.

Well, that’s certainly no selling point. FYI, Graco appears to be no stranger to defective product lawsuits—they’ve also faced class actions over allegedly defective cribs, strollers and highchairs…

This particular case is Seth Long v. Graco Children’s Products Inc., case number 3:13-cv-01257, in the U.S. District Court for the Northern District of California.  

Top Settlements

Comcast to cough up $50M to end a decade-long consumer antitrust class-action lawsuit brought by consumers who allege the cable-TV service provider engaged in anti-competitive behavior.

This week, a federal judge in Philadelphia has approved a preliminary US$50 million settlement that entitles about 800,000 current and former Comcast cable-TV subscribers in Bucks, Chester, Delaware, and Montgomery Counties and Philadelphia to US$15 in credits, or Comcast services valued at US$ 30-43.90, according to court documents.

FYI—those services include temporary internet upgrades, six free pay-per-view movies, or two free months of the Movie Channel. Comcast is required to notify its customers in monthly bills and to advertise the settlement in newspapers and magazines throughout the Philadelphia region. A Comcast spokesperson said that former Comcast cable-TV customers in the five counties could also participate in the settlement, if they were subscribed between 1 January 2003, and 31 December 2008. They will be eligible for US$ 15 in cash.

The suit, first filed in Philadelphia federal district court in December 2003, claimed that Comcast engaged in anti competitive behaviour by concentrating its cable systems in the broader Philadelphia area and making it difficult for RCN, a competitor, to expand telecommunications services here. Comcast could charge higher prices for its cable-TV service, the suit claimed. 

Hokee Dokee—That’s a wrap folks…Time to adjourn for the week.  Have a good one!

Week Adjourned: 4.26.13 – Vitamin Shoppe, Acer, Sony TV

The weekly top class action lawsuit & settlement wrap for the week ending April 26, 2013. Top class actions include Vitamin Shoppe, Acer and Sony.

vitamin shoppe logoTop Class Action Lawsuits

True Athlete Training Formula Making Some Untrue Claims? Em, maybe. At least the folks who filed a consumer fraud  class action lawsuit against Vitamin Shoppe Inc, who make and market a pre-workout muscle building and performance enhancing product called True Athlete Training Formula, believe so.

The True Athlete class action lawsuit, entitled Steven Hodges v. Vitamin Shoppe Inc., Case No. 13-cv-02849, U.S. District Court, Central District of California, contends that the Vitamin Shoppe “knowingly and/or recklessly ignored” all relevant scientific evidence which shows that L-Arginine Alpha Ketoglutarate, the main ingredient in True Athlete Training Formula, does not enhance athletic performance, build muscle, or improve cardiovascular function, as advertised. Well, it does sound a bit too good to be true. But hey—I’m an optimist.

However…the lawsuit also contends that the defendant “knowingly under-doses the remaining active ingredients to save money but still entice consumers by using efficacy claims for the compounds Creatine Monohydrate, Beta-Alanine (as Carnosyn), and AstraGin”, compounds well-known within the sports industry, according to the class action lawsuit. Specifically, the lawsuit states: “Defendant unapologetically, and with no remorse, boasts the inclusion of these popular ingredients in the Product, and then under doses them in the formula to make the Product useless.” And: “The inclusion of the ingredients at levels under the clinical dosage is nothing more than a new tactic at selling consumers ‘snake oil.’” Snake oil? I’ve had that stuff before!

Here’s the straight dope…the consumer fraud class action was filed on behalf of a proposed class of all California residents who purchased True Athlete Training Formula from the Vitamin Shoppe within the last four years.

Top Settlements

How’s your RAM these days? That would be Random Access Memory—the kind in your computer…(I don’t know about you, but the kind in my head is full and dates back to last century.) Well, it seems that Acer has decided to end a consumer fraud class action lawsuit alleging its RAM wasn’t up to the job either.

The official scoop on the Acer RAM class action— “The parties have reached a settlement in a nationwide class action lawsuit alleging that Acer America Corporation (“Acer”) advertised and sold Acer notebook computers that did not contain enough Random Access Memory (“RAM”) to support certain pre-installed versions of the Microsoft Windows Vista operating system. Acer denies the claims, but has agreed to the Settlement to avoid the costs and risks of a trial.“

And yes folks—you are a member of the class if you are a US resident who purchased a new Acer notebook computer that: (1) came pre-installed with a MicrosoftWindows Vista Home Premium, Business, or Ultimate operating system; (2) came with 1 gigabyte (“GB”) of RAM or less as shared memory for both the system and graphics; (3) was purchased from an authorized retailer; and (4) was not returned for a refund.

Class Members may claim either: (a) a 16GB USB Flash Drive with ReadyBoost technology; (b) a check for $10.00; (c) a check for up to $100.00 for reimbursement of any repair costs that were incurred before April 25, 2013 in an effort to resolve performance issues related to insufficient RAM; or (d) for Class Members who still own their computer, a 1GB or 2GB laptop memory DIMM that will allow the Acer notebook to operate with 2GB of RAM.

Any class member may seek to be excluded from the settlement by filing a notice of “opt out.” Class Members who remain in the settlement, either by submitting a claim or doing nothing, have the right to object to the settlement or ask to speak at the hearing. Opt out notices, objections, and any requests to appear are due by July 24, 2013. In order to get any benefits from the settlement, Class Members must submit a Claim Form by July 24, 2013. Claim forms will also be mailed and emailed to those class members for whom Acer has contact information. For more information about the settlement or to file a claim, visit www.AcerLawsuit.com.

Sony Display Resolution Class Action Resolved…And while we’re on the subject of technology—remember this one? The Sony Grand Wega SXRD rear-projection television defective products class action? (Sony Electronics, entitled Date v. Sony Electronics, Inc. & ABC Appliance, Inc., Case No. 07 CV 15474,United States District Court for the Eastern District of Michigan). Filed some time ago, granted, it does appear that a resolution may finally be in sight.

A proposed settlement has been granted preliminary approval, which includes all United States end user consumers who purchased, or received as a gift from the original retail purchaser, a KDS-R5OXBR1 or KDS-R6OXBR1 television.

The backstory—short version—allegations that Sony et al falsely advertised the display resolution of its Sony Grand Wega SXRD rear-projection television models KDS-R5OXBR1 and KDS-R6OXBR1, because the televisions were incapable of accepting input of 1080p signals and could not accept and display video content at 1080p resolution via the televisions’ PC and HDMI Input. Not good.

Here’s what you need to know if you are eligible for part of the settlement:

All class members who send in a valid claim form establishing that they own both (1) one of these televisions and (2) a 1080p output device like a Blu-ray player or 1080p-capable laptop computer or gaming device will be eligible to receive a $60.00 gift card that does not expire and is redeemable for the purchase of any item available on the store.sony.com website or at a Sony retail store.

If you do not own a 1080p output device, you will not be eligible to receive a benefit, but you will remain in the settlement class (and release your claims in this litigation, all of which relate to the 1080p capabilities of the televisions) unless you choose to opt out of the settlement.

All claim forms must be received by the claims administrator at the address provided in the claim form by no later than June 10, 2013 to be valid. To download claim forms, review your rights and find out more information on the settlement, visit http://esupport.sony.com.

Ok—that’s a wrap. See you at that bar…and Happy Friday Folks!