Week Adjourned: 12.13.13 – Lumber Liquidators, Visiting Nurses, Wal-Mart

The week’s top class action lawsuits and settlements including Lumber Liquidators, Visiting Nurses and Wal-Mart gas can explosions.

Lumber LiquidatorsTop Class Action Lawsuits

Lumber Liquidators is in the woods over allegations it sold defective Chinese wood flooring that emits excessive levels of formaldehyde (raising memories of the Chinese Drywall debacle… )

Filed in the U.S. District Court for the Eastern District of Virginia, the lawsuit states, “Indeed, contrary to Lumber Liquidators’ repeated, detailed representations that its flooring complies with strict formaldehyde standards on its product labels, website, and elsewhere, the toxic formaldehyde emissions from the company’s Chinese flooring products are multiple times the maximum permissible limits set by those standards at the time of purchase.”

FYI—in 2011, formaldehyde was described as “known to be a human carcinogen,” by the US National Toxicology Program: a carcinogen is a substance or agent suspected to cause cancer. Terrific.

The plaintiffs in the Lumber Liquidators class action lawsuit, Donnie Williamson, Melissa Stini and Jennifer Hogencamp, further claim that the floor is illegally sourced through China from other countries, including Russia, threatening “critical habitat and endangered species.”

“Plaintiffs would have paid significantly less, if they purchased Chinese flooring at all, had they known that the products were sourced from endangered habitats and contained elevated levels of the toxin formaldehyde,” the lawsuit states.

The plaintiffs contend their flooring purchases—all of which were installed in their homes—are now “markedly less valuable.”

The plaintiffs are seeking damages for installation and removal costs, remediation costs, restocking fees, loss of use and diminished value, in addition to attorneys’ fees and costs, and pre-judgment and post-judgment interest “at the highest rates allowed by law” on the damages awarded.

Another Case of Overworked and Underpaid? You know, the week just wouldn’t be complete without an unpaid wages and overtime class action. This week, it’s Nurses at Baystate Visiting Nurse Association (VNA) and Hospice who filed a class action lawsuit against Baystate Health. The Nurses are seeking to recover unpaid overtime and wages that have allegedly been withheld illegally by the employer—for several years.

The VNA nurses are routinely required to make preparations before their first home care visits for the day and subsequently to complete lengthy documentation of their visits, but are frequently not paid for that work which can sometimes take several hours per day. Computerized documentation has become more lengthy and cumbersome in recent years, but no accommodation has been made to allow nurses time to complete the required documentation during the normal course of the workday. As a result nurses have been forced to work many hours of unpaid time each week.

Baystate has been locked in a two-year dispute with its nurses at Baystate Franklin Medical Center regarding its demand to limit those nurses the right to overtime pay, while at the same time the organization has been failing to pay its BVNA&H nurses for their hours of work. Baystate Visiting Nurse Association & Hospice is a wholly owned subsidiary of Baystate Health. While allegedly withholding wages illegally from the nurses, Baystate Health is one of the most profitable health care conglomerates in the state, and its. CEO, Mark Tolosky, is one of the highest paid hospital CEOs in New England with a salary and benefits package of nearly $2 million annually.

Top Settlements

Wal-Mart Settles Exploding Gas Cans. Wal-Mart, the nation’s largest retailer (and among the most frequently sued), will pay $25 million as a settlement contribution to resolve a raft of personal injury lawsuits filed by people who were injured or had someone they knew killed by exploding portable plastic gas cans, NBC News reports. Wal-Mart is the largest US retailed of plastic gas cans, and sold tens of millions of Blitz gas cans, which, the lawsuits allege, had a safety defect. Blitz, the manufacturer of the gas cans, is in bankruptcy, largely due to the litigation and settlements.

During the past decade more than 80 lawsuits have been filed by people who allege the exploding gas cans caused them burn injuries. Defendants include some retailers as well as the manufacturer. Wal-Mart told NBC News it’s been named as a defendant in 24 of the lawsuits.

In those lawsuits, Blitz and Wal-Mart are accused of knowingly selling a defective product that could explode and produce catastrophic and sometimes fatal injuries. The lawsuits further claim the defendant (Blitz) refused to add a safety device, known as a flame arrester, to make the cans safer.

Parties to the Wal-Mart gas can lawsuits, including Blitz USA’s estate, debtors, participating insurers and Walmart, have agreed to contribute $161 million to settle with many of the plaintiffs, while denying liability. Wal-Mart’s settlement contribution amounts to just over 15 percent of the proposed $161 million fund that would settle dozens of lawsuits. A hearing on the proposed settlement is set for early next year NBC News reports.

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

 

Week Adjourned: 12.6.13 – Fisher-Price, Starbucks, FalconStor Software

The week’s top class action lawsuits and settlements for the week ending December 6, 2013. Top class actions include Fisher Price, Starbucks and FalconStor Software.

Fisher Price Rock N PlayTop Class Action Lawsuits

Rock ‘N Mold? Heads-Up anyone who purchased a Fisher-Price Rock ‘N Play Bassinet or baby seat prior to January 2010:

Fisher Price and Mattel are facing a defective products class action lawsuit over allegations the Rock N Play baby seat has design flaws which results in it growing mold. Nice.

The Fisher-Price Rock ‘N Play Mold Growth Class Action Lawsuit, entitled  is Butler v. Mattel Inc., et al., Case No. 2:13-cv-00306, in the U.S. District Court for the Central District of California, alleges Mattel and Fisher-Price were aware of the Rock ‘N Play design flaw since 2010. Specifically, the lawsuit claims that the baby seat design does not allow for adequate ventilation around the seat, making the product conducive to dangerous mold growth. The lawsuit, states that mold “is linked with serious respiratory illnesses and inflammatory problems in infants and recent long-term studies have suggested that infants exposed to environmental mold are nearly three times as likely to develop asthma by age seven.”

The Consumer Product Safety Commission has received in excess of 600 consumer complaints alleging mold growth between the Rock ‘N Play’s removable cushion and plastic frame, prior to the device recall in January 2013. At the time, 16 complaints included reports of infants becoming sick from the mold. Fisher-Price faced at least on lawsuit filed by a couple who alleged their son was hospitalized for respiratory problems after being exposed to mold that they claim developed on his Rock ‘N Play seat.

The Mattel and Fisher-Price marketed the Rock ‘N Play class action lawsuit claims the defendants failed to warn consumers that the sleeper was prone to mold growth. The plaintiffs further claim the defendants failed to test the product for mold growth or humidity resistance prior to releasing it on the market, even though they were aware that the seat would be regularly exposed to moisture and warmth—conditions conducive to mold growth.

According to the lawsuit, “Within seven months of the Rock ‘N Play’s release, concerned consumers began to call Defendants to complain that their Rock ‘N Plays were ‘moldy’ and, in many instances, that their infants were having respiratory problems they attributed to the mold.”

The lawsuit goes on to claim that tests for mold were only conducted on the product after hundreds of consumer complaints had been made detailing babies becoming ill from mold exposure. And, the lawsuit states that Mattel and Fisher-Price did not take timely action to either fix the defect or warn consumers about the risks, even though they were aware of the design defect.

While the defendants issued a recall of the Rock ‘N Play on January 8, 2013, the lawsuit claims that it was inadequate because it “consists solely of a 16 page booklet of cleaning instructions downloadable from the Internet, instructing owners to inspect the product for visible mold and, if mold is seen, undertake an onerous cleaning process that will cause damage to the product.”

The plaintiffs are seeking certification of a nationwide class of people who acquired a Fisher-Price Rock ‘N Play Sleeper that was sold prior to the January 8, 2013 recall. The plaintiffs also seek to certify three subclasses of California, Pennsylvania and Maryland residents who purchased the Rock ‘N Play prior to January 8, 2013.

Phantom of the Paycheck. Well, here’s a new take on an old theme….taxable phantom wages…? Yup. Three ex-Starbucks employees have filed a wage and hour class action lawsuit alleging the coffee company adds a taxable “phantom wage” of 50 cents an hour in tips to paychecks, which results in some employees receiving less than the minimum wage. The lawsuit claims that Starbucks in is violation of the Fair Labor Standards Act (FLSA), which prohibits employers making deductions in employees pay that would result in those employees making less than minimum wage.

Entitled, Fredrickson, et al. v. Starbucks Corp., Case No. 13-cv-02041, U.S. District Court Oregon, Portland Office, the lawsuit, filed by Hannah Fredrickson, lead plaintiff, states that Starbucks discourages employees from reporting their tips. Further, the lawsuit claims, “Starbucks just makes up that phantom number out of thin air.” Therefore, the lawsuit contends that Starbucks “willfully filed fraudulent information,” in violation of federal tax law, by reporting the made-up tips in W-2 returns.

According to the Starbucks class action, “Starbucks deducts amounts from its employees’ pay that reduce their paychecks below the minimum wage and/or overtime requirements. Its stated reason for the deduction is that the employees owe taxes on their tips, but that is false. Neither Oregon nor federal law require Starbucks to withhold taxes from unreported tips. The employees do not owe taxes on the tips, because their income is low enough that the withholdings from their regular wages are more than enough to meet their annual tax burden. Even if this were not the case, however, the employees would not have to pay any taxes on those unreported tips until the following April 15 (tax day). The FLSA requires employers to pay the minimum wage and overtime on payday, so the fact that the employees might receive a refund of these wrongfully deducted amounts (in many cases over a year later) does not eliminate the violation.”

Fredrickson is seeking class certification, an injunction, and damages for wage and hour violations and $5,000 or the sum of actual damages incurred, whichever is greater, for providing false information on tax returns.

Top Settlements

Securities Settlement News… FalconStor Software is going to pony up some cash, it looks like. A proposed $5 million settlement has been reached in the securities class action lawsuit its facing, which was filed by purchasers of FalconStor Software, Inc. (Nasdaq:FALC) common stock.

The FalconStor Software settlement would affect all persons who purchased the common stock of Falconstor Software Inc during the class period March 12, 2008 to September 29, 2010, inclusive.

Here’s the skinny: If you purchased FalconStor common stock during the period of March 12, 2008 through September 29, 2010, inclusive, you may be a member of the Class described above, and your rights may be affected by the Settlement of this Litigation.

If you have not received a detailed Notice of Pendency and Proposed Settlement of Class Action and a copy of the Proof of Claim and Release, you may obtain copies of these documents by contacting the Claims Administrator at: www.strategicclaims.net.

If you are a Class Member, in order to share in the distribution of the Net Settlement Fund, you must submit a Proof of Claim and Release postmarked no later than January 20, 2014, establishing that you are entitled to recovery, in the manner and form explained in the Notice. If you are a Class Member and do not submit a proper Proof of Claim Form, you will not be eligible to share in the distribution of the net proceeds of the Settlement, but you will be bound by any judgment or orders entered by the Court in the Litigation, whether or not you submit a claim.

If you desire to be excluded from the Settlement Class, you must submit a request for exclusion received no later than January 20, 2014, in the manner and form explained in the Notice. All members of the Settlement Class who do not request exclusion will be bound by any judgment entered in the Litigation.

For complete information on the proposed settlement and class action lawsuit, and to download forms, visit: www.strategicclaims.net.

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

 

Week Adjourned: 11.1.13 – iMac, Trump U, Verizon

The week’s top class action lawsuits and settlements. Top stories include iMac faulty screens, Trump University and Verizon overtime class actions.

.appleTop Class Action Lawsuits

More Bad Apples! It seems Apple just can’t stay out of the news – but is publicity really good publicity in this case? The tech Wunderstar is facing a defective products class action lawsuit over allegations that iMacs sold with 27 inch screens have faulty displays.

Filed by Corbin Rasmussen, the Apple lawsuit contends that half of Rasmussen’s iMac display failed after only 18 months. The lawsuit further claims that Apple wanted $500 to fix the problem.

Rasmussen alleges this is not an isolated incident, that the problem with the iMac screen is widespread, and that Apple refuses to address the problem. Rasmussen alleges Apple misled consumers by selling them iMacs with displays that failed prematurely.

The iMac screen lawsuit states that hundreds of consumers who purchased 27-inch iMac had half the display fail just months after their warranties expired. It also alleges that when Apple updated the iMac line in 2011 it failed to make any changes to the display or video card in order to prevent the issue from affecting future iMac buyers.

Rasmussen alleges Apple’s marketing led him to believe the iMac was “designed for a long productive life,” and that 18 months of usability he experienced fails to live up to that claim.

The class action seeks to represent Rasmussen and all those similarly situated who purchased 27-inch iMac in the US before December 2012. The suit targets iMacs that used LG’s LED backlit display.

And, Speaking of Bad Apples… Donald Trump is facing consumer fraud class action lawsuit brought by a California businessman who alleges he was duped into spending $35,000 on essentially bogus programs at Trump University.

Filed in the Southern District of California, Plaintiff Art Cohen seeks to represent other buyers of the programs in a class-action lawsuit against Trump.

According to the Trump University lawsuit, Cohen learned about Trump University in 2009 through a newspaper ad. He alleges he received a “special invitation” from Trump, by mail, to the school which included two VIP tickets to a free seminar. Cohen subsequently took programs which, he alleges he would not have paid for had known he wouldn’t have access to Trump’s real estate investing secrets. He further alleges that Trump had “no meaningful role” in selecting the instructors and that Trump University was not a “university.”

“Trump did not fulfill the promises he made to student-victims around the country — he did not teach students his coveted real estate investing ‘secrets’ at the Live Events, he did not contribute in any meaningful way to the curriculum for the Live Events, and he did not handpick the Live Event seminar instructors and mentors who ‘taught’ student-victims at three-day Live Events and Elite mentorship programs — both of which were upsells from the free introductory Live Event called the ‘Preview,’” the 34-page complaint claims.

Cohen is not alone in his complaints against Trump University. According to the lawsuit, nearly a dozen state attorneys general and the US Department of Justice have received “numerous” complaints about Trump’s institution. In August, New York Attorney General Eric Schneiderman filed a lawsuit against Trump and the Trump Entrepreneur Institute, formerly known as Trump University LLC, for allegedly engaging in deceptive and illegal conduct.

I wonder if The Donald should be teaching courses in “Dodging Consumer Fraud Lawsuits” instead…

Cohen is seeking damages and equitable relief on behalf of himself and the class, including, but not limited to, treble their monetary damages, restitution, injunctive relief, punitive damages, costs and expenses, including attorneys’ fees.

Top Settlements

Guess the Employees have been Heard Now! Verizon Communications has been ordered to pay $7.7 million to settle an unpaid overtime class action lawsuit brought by its retail employees.

The wage and hour class action alleged the wireless carrier was in violation the Fair Labor Standards Act and state wage laws, because it refused to its workers overtime and bonuses.

The Verizon settlement, approved by U.S. Magistrate Judge Maria Valdez, will end the Verizon unpaid overtime class action lawsuit which was filed over two years ago.

Ok Folks, That’s all for this week. Have a good one—see you at the bar !

Week Adjourned: 10.25.13 – Unpaid Overtime, Hershey’s, Honda

Top Class Action Lawsuits for the week: Honda Defect Settlement, Hershey’s workers and BJC Healthcare unpaid overtime.

Punch Time ClockTop Class Action Lawsuits

Paycheck Rounding Error? Seems unpaid overtime is a popular theme these days. This week, a new unpaid overtime class action lawsuit was filed in the City of St. Louis on behalf of current and former nurses and medical professionals employed by BJC Healthcare System for violations of Missouri’s wage and hour laws and other violations of Missouri law. The lawsuit seeks unpaid overtime and straight-time wages resulting from BJC’s wage and hour practices. The lawsuit is entitled Speraneo v. BJC Health System Inc., d/b/a BJC Healthcare.

The BJC class action lawsuit alleges that BJC failed to properly pay employees for all time worked through its time recording policies and failed to pay overtime compensation to employees working over forty hours per week.

BJC’s timekeeping rounds down the amount of time employees work to the nearest quarter hour, despite having the exact times employees clocked into work and having computerized documentation of exact work times. This practice deprived employees of pay for compensable work time in violation of established work time regulations.

BJC automatically deducts time for meal breaks resulting in employees, such as nurses, not being paid for time actually worked. The lawsuit alleges that BJC knew that its employees, such as nurses, worked during the automatically deducted break time and as a custom and practice failed to pay employees for such compensable work.

The lawsuit also alleges that BJC failed to properly compensate employees for shift differential bonuses and pay overtime compensation at statutorily required rates of pay.

Top Settlements

A sweet ending for Hershey employees? Seems that way—if a preliminary $500,000 settlement gets the green light. The preliminary settlement has just been approved in a California unpaid overtime and wage and hour class action lawsuit pending against Hershey.

The Hershey lawsuit alleges that the class members are owed wages including unpaid overtime and minimum wage pursuant to several sections of the California labor law and are owed premium pay for missed meal and rest periods also pursuant to various Labor Code sections. The lawsuit further claims that the class is entitled to “waiting time” penalties, and penalties for non-compliant wage statements and payroll records pursuant to various Labor Code sections, and that they are entitled to reimbursement for business expenses.

The lawsuit is brought by Shelley Rodrigues on behalf of herself and other similarly situated who were or are employed as retail sales merchandisers, as well as all other current and former hourly-paid or non-exempt merchandisers or person who held similar job titles and/or performed similar job duties in California.

The settlement class is defined as all current and former hourly part-time retail sales merchandisers employed by the Hershey Company in California at any time between July 23, 2008 and June 3, 2013, the Class Period.

Time for Honda to Feel the Burn? This is a biggie…Honda looks as if it’s ready to pony up some cash over a defective automobile class action lawsuit pending against it. The Japanese automaker was sued over allegations it made over 1.59 million vehicles that burn oil excessively and also require frequent spark plug replacements. That’s convenient.

The Honda lawsuit, filed in March 2012, alleges the Honda vehicles had a “systematic design defect that enables oil to enter into the engine’s combustion chamber.” The alleged defect led to “premature spark plug degradation and engine malfunction,” court documents state.

The lawsuit claims that Honda was aware of the problem but failed to notify consumers, allegations Honda denies, despite having issued a technical service bulletin notifying its technicians to check for the defect. The auto maker did not issue a recall because a safety issue was not discovered.

The preliminary Honda class action settlement includes all US purchasers and lessees of 2008-12 Accord, 2008-13 Odyssey, 2009-13 Pilot, 2010-11 Accord Crosstour and 2012 Crosstour vehicles equipped with six-cylinder engines that have variable cylinder management. Accord vehicles with four-cylinder engines are not included in the settlement.

Settlement terms include Honda extending the powertrain limited warranty for up to eight years after the original sale or lease of the vehicle. The preliminary settlement approval was given October 9, 2013, and the final fairness hearing is scheduled for March 21, 2014.

Ok Folks, That’s all for this week. Have a good one—see you at the bar!

 

Week Adjourned: 10.11.13 – Toyota Prius, United MileagePlus, Motel 6

The week’s top class action lawsuits and settlements…Top stories include Toyota Prius, United Airlines MileagePlus, and Motel 6.

toyota prius v wagonTop Class Action Lawsuits

Prius Brakedown? Toyota’s making headlines again this week, over a national consumer fraud class action lawsuit, alleging consumer fraud related to its Pre-Collision System (PCS) in its high-end Prius Five vehicles.

The Prius lawsuit states that Toyota represents in its marketing materials and owner’s manual that the PCS employs radar to sense an unavoidable frontal collision, and then if needed, automatically applies the brakes to prepare for the accident. The PCS is part of an advanced technology package option that usually sells for over $5,000. The PCS option is believed to make up approximately $1,000 of that cost. Whoa Nellie!

The lawsuit claims that purchasers did not receive what Toyota represented with the PCS. Specifically, in vehicle testing by the Insurance Institute of Highway Safety (IIHS), the Toyota Prius was one of only two models that failed to get any rating, leading the IIHS to state: “The Toyota Prius V wagon, which claims to have autobrake, had minimal braking in IIHS tests and currently fails to meet NHTSA criteria for forward collision warning. It doesn’t qualify for an IIHS front crash prevention rating.” Ok—now you have me.

The lawsuit is Lee v. Toyota Motor Sales, USA Inc, in the United States District Court of California, and is seeking to force Toyota to reimburse owners for the cost of the PCS and to force Toyota to discontinue marketing that the PCS provides automatic braking. Go get’em!

So That’s What MileagePlus Means… United Airlines got hit with a potential deceptive business practices class action lawsuit this week. Filed by two Jersey City, NJ residents, the lawsuit claims the airline uses an algorithm that modifies the number of miles needed for an award, depending on the number of frequent flyer miles the person has. Umm.

The federal United MileagePlus lawsuit was filed by Robert Gordon and Melissa Chan who claim United Airlines attempted to charge each of them different amounts of miles for the same hotel room last year when they were booking a trip together. Both are members of United’s MileagePlus rewards program. (who isn’t?)

According to the lawsuit, in August 2012, Gordon tried to use his miles to book a three-night stay at a hotel in Japan. Using United’s website, he was informed it would cost him 40,750 miles, which exceed the amount of points he had in his account, but was fewer than 41,733 miles in Chan’s MileagePlus account.

According to the lawsuit, Chan subsequently decided to book the same room for same dates using her miles instead. However, when she tried to do so only several minutes later, United’s website required her to use 44,500 miles, or 3,750 miles more than what it attempted to charge Gordon. To book the hotel room, Chan had to pay $26.10 to buy the additional miles that United charged her.

The lawsuit states that Gordon then called United, but was told the airline uses an algorithm that modifies the number miles needed for an award, depending on the number of miles the person has. They claim United was deceptive in not disclosing this alleged practice. Well, this ought to be interesting….

Top Settlements

Motel 6 Checking Out of Unpaid Overtime Class Action Lawsuit…Actually, they’ve settled, tentatively, for a reported $890,000. Announced this week, the proposed Motel 6 settlement could end the pending wage and hour class action lawsuit entitled Monica Gould et al v. Motel 6 Inc. et al, case No. 2:09-cv-08157 in the United States District Court for the Central District of California Central Division.

The lawsuit was brought by past and present Motel 6 employees who allege the company denied them meal and rest breaks, failed to pay wages upon termination and neglected to provide properly itemized wage statements.

Specifically, the wage and hour lawsuit, brought in 2009, claims Motel 6 is in violation of the California Labor Code, the Business & Professions Code, the Wage Order and the Private Attorneys General Act of 2004.

Motel 6 and G6 Hospitality Inc, the two defendants in the class action, deny any and all liability, but have agreed to settle. The class includes all current and former nonexempt employees employed by Motel 6 between March 25, 2006, and July 17, 2013, an estimated 18,280 members. Previously, Motel 6 and G6 Hospitality, which were formerly known as Accor North America, settled another class action in March 2006, reducing the current class to its present size, court documents indicate.

The final settlement hearing is scheduled for November 4, 2013.

Good Night Irene!

Ok Folks, That’s all for this week. Have a good one—see you at the bar!

 

Week Adjourned: 8.2.13 – Apple Store, Pfizer, Chester Career College

The week’s top class action lawsuits and settlements for the week ending August 2, 2013. Top lawsuits include Apple employees claiming wage and hour violations, Pfizer Rapamune Off Label marketing fines and Chester Career College settling consumer fraud charges.

.appleTop Class Action Lawsuits

Bad Apple! It seems Apple may be entering the ever-growing list of wage and hour offenders. This week, a class action lawsuit was filed against the tech giant, alleging that Apple store staff are not paid for the time they spend undergoing bag searches, as required by the company’s policy.

Apple has a policy of requiring its retail store employees to undergo two mandatory bag searches per day. Two former Apple store employees from New York and Los Angeles filed a complaint in San Francisco federal court on Thursday regarding this policy. They allege they had to stand in lines up to 30 minutes long every day for store managers to check their bags and ensure they weren’t smuggling home stolen goods. The Apple unpaid wages lawsuit claims that the cumulative time employees spend having these bag searches done totals dozens of hours of unpaid wages, roughly $1,500 per year.

“Apple has engaged and continues to engage in illegal and improper wage practices that have deprived Apple Hourly Employees throughout the United States of millions of dollars in wages and overtime compensation,” the complaint reads.

“These practices include requiring Apple Hourly Employees to wait in line and undergo two off-the-clock security bag searches and clearance checks when they leave for their meal breaks and after they have clocked out at the end of their shifts.”

 

According to the complaint, Apple’s retail stores employ some 42,400 people in 13 countries. The retail outlets generated net sales of $156.5 billion in 2012. Most hourly workers make between minimum wage and $18.75 per hour and work 40 hours per week.

Amanda Frlekin and Dean Pelle, the two former employees who filed the wage and hour lawsuit, worked as “specialists,” essentially an in-store customer support position. The Apple lawsuit describes the bag searches as “required but uncompensated security checks,” claiming that Apple violated the Fair Labor Standards Act (FLSA), and New York labor law, and California labor law.

Top Settlements

Off-label Drug Marketing Saga Continues—this week, it’s news that Pfizer will have to pony up $491 million to settle criminal and civil charges relating to its off-label marketing of Rapamune. The US Justice Department had claimed the drug company marketed the kidney-transplant drug for patients who received non-kidney organ transplants.

The Justice Department began its investigation over four years ago, and Pfizer inherited the probe when it bought Wyeth in 2009.

According to the Justice Department, Wyeth trained sales reps to push Rapamune for unapproved uses and offered bonuses to persuade them to flog the drug for patients it wasn’t cleared to treat. “This was a systemic, corporate effort to seek profit over safety,” U.S. Attorney Sanford Coats said in a statement. “Companies that ignore compliance with FDA regulations will face criminal prosecution and stiff penalties.”

Under the Pfizer Rapamune settlement agreement, Pfizer’s Wyeth division pleaded guilty to a criminal misbranding violation under the Food, Drug and Cosmetics Act. The deal includes a criminal fine of $157.58 million and asset forfeiture amounting to $76 million, or $233.5 million total. Civil payments to the government and states add another $257.4 million, for a total of $490.9 million. Okee dokee…

Looks like Chester Career College hit the Learning Curve on this one—at a cost of $5 million. That’s the settlement that was just approved ending a financial consumer fraud class action lawsuit pending against the college, formerly known as Richmond School of Health and Technology. The lawsuit alleged that the for-profit college practices predatory lending practices affecting thousands of students, primarily African American students, while offering sub-par education.

The back story—Chester Career College purportedly offers classes leading to careers in nursing, massage therapy and other medical-related fields, and specifically targeted inner city students with ads on hip-hop stations and other media aimed at their demographic. According to the lawsuit, the college enrolled “almost exclusively” students who qualified for federal financial aid, primarily in the form of student loans.

The Chester Career College settlement, approved by US District Judge John A. Gibney, will also see the school reimburse more than 4,000 students and for attorneys’ fees and requires Chester Career College to institute changes that will provide prospective students with “much more transparency” before they enroll. Further, the settlement also provides for continued tracking of students and career placement “to strengthen the school” and its educational mission as it moves forward.

Here’s the skinny—the settlement covers students enrolled at the school from July 2004 through February 2013. Students who qualify for claims will receive settlement notices by mail. Any money left unclaimed from the remaining funds in the escrow account after one year will be donated to nonprofit organizations dedicated to assisting the economically disadvantaged.

Ok folks, have a good one—see you at the bar!

Week Adjourned: 5.3.13 – SoulCycle, Sega, eBooks

The top class action lawsuit stories for the week ending May 3, 2013. In class action news this week: SoulCycle, Sega and eBooks.

SoulCycleTop Class Action Lawsuits

SoulCycle not so full of Soul. Nick Oram, a former SoulCycle master instructor, has filed a California employment class action lawsuit alleging that he and other SoulCycle instructors were not paid consistent with New York and California laws. SoulCycle has built its reputation by providing what it describes as the “best instructors and staff, trained to deliver unique services and personal attention to all levels of riders.” However, as detailed in the SoulCycle class action lawsuit, SoulCycle only compensates these instructors for the time spent teaching their classes, and has failed to compensate them for numerous hours spent in training, preparing for classes, developing routines, compiling playlists, communicating with customers, attending meetings, leading special event classes and engaging in marketing.

As the complaint alleges, SoulCycle’s unlawful wage practices are consistent with its mistreatment of customers as SoulCycle does not provide any reimbursement to customers who are unable to attend classes they sign up for (unless they cancel the class by 5PM the night before), even when SoulCycle is able to re-sell the vacant bike spot. As a result, SoulCycle very often generates revenue from classes at a rate that exceeds the total number of bikes in a studio, to the detriment of its customers.

And, despite the dozens of hours per week SoulCycle instructors are required to work above and beyond the time instructing a class, SoulCycle only compensates these instructors for only the approximately 45 grueling minutes during which each class is taught. Mr. Oram stated that, “It is my goal in this lawsuit to ensure that SoulCycle pays all of the hard working and dedicated instructors what they deserve and compensates them fairly for all hours worked.” Go for it!

Heads up all you Sega Gamers out there… A consumer fraud class action lawsuit has been filed against Sega of America and Gearbox Software over allegations they misrepresented the quality of their new game “Aliens: Colonial Marines” prior to its release.

Damion Perrine, lead plaintiff in the Sega class action, alleges Sega and Gearbox induced consumers to buy “Aliens: Colonial Marines” through a “bait-and-switch” scheme that involved giving bogus gameplay demonstrations at video game expositions and trade shows leading up to the games’ February 2013 release.

Specifically, the class action lawsuit states: “Each of the ‘actual gameplay’ demonstrations purported to show customers exactly what they would be buying: a cutting edge video game with very specific features and qualities. Unfortunately for their fans, Defendants never told anyone, consumers, industry critics, reviewers or reporters, that their ‘actual gameplay’ demonstration advertising campaign bore little resemblance to the retail product that would eventually be sold to a large community of unwitting purchasers.”

And: “A major selling point of the ‘actual gameplay’ demonstrations were ‘iconic’ gameplay sections where consumers might essentially step into the role of a character from the ‘Aliens’ movie,” the lawsuit states. “Many of such sections previewed in the ‘actual gameplay’ demonstrations were either gutted beyond recognition or missing entirely from the final product.”

The Sega class action lawsuit is seeking class action status and damages and punitive damages, restitution, disgorgement of profit and an injunction for a proposed class of all US consumers who purchased “Aliens: Colonial Marines” on or before February 12, 2013.

Top Settlements

Worth a Read: eBook Lovers Get $20M Settlement… A $20 million settlement has been agreed in the consumer fraud class action lawsuit pending against Verlagsgruppe Georg von Holtzbrinck GmbH’s MacMillan unit, which alleged the publisher conspired with Apple Inc, and other US publishers to fix prices of electronic books, or eBooks.

The latest eBook settlement resolves the allegations brought in the consumer fraud lawsuit as well as a lawsuit brought by several US states. According to a report by Bloomberg, MacMillan will pay an additional $3 million in legal costs to the states that sued and $2.5 million to the lawyers for the consumers in the class-action case.

The case is In re Electronic Books Antitrust Litigation, 11-md-02293, U.S. District Court, Southern District of New York (Manhattan). The Justice Department and the other states led by Texas alleged publishers conspired with Apple in 2010 to undermine Amazon’s dominance in the eBooks market.

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

 

Week Adjourned: 2.8.13 – Hipster, YoPlus, Ritz-Carlton

Nemo’s coming and your top class action lawsuit & settlement wrap for the week is now live! Latest class action lawsuits for the week ending February 8, 2013 include Hipster, YoPlus and the Ritz-Carlton

hipster logoTop Class Action Lawsuits

Hipster ain’t so hip after all…at least according to the plaintiffs who have filed an in Internet privacy class action lawsuit against the photo-sharing App. The Hipster lawsuit alleges the company illegally obtained iPhone users’ personal information and contact lists without their permission.

The internet privacy lawsuit, entitled Francisco Espitia v. Hipster Inc., Case No. 13-cv-00432 in the U.S. District Court for the Northern District of California, alleges that a function of the Hipster App found and retrieved subscribers’ personal contacts and other highly sensitive information, including passwords and geo-location, and then transferred the data over unencrypted, publicly accessible data channels to Hipster’s third-party servers. (Maybe they should rename the App “Fetch”).

Specifically, the lawsuit states: “These actions involved the deliberate and intentional circumvention of technical measures within the mobile computing device in order to bypass the technical and code based barriers, including the plaintiffs’ and class members’ privacy settings which were intended to limit access by anyone other than the owner of the device.” Having transferred the users’ contact address data to its remote computing service, Hipster then allegedly proceeded to access and use such data without authorization or consent, according to the lawsuit.

The laundry list? Violations of the Electronic Communications Privacy Act, the Stored Communications Act, the California Computer Crime Law, and the California Invasion of Privacy Act, among other things.

The Hipster lawsuit seeks to represent all US residents that downloaded the Hipster App to their mobile phones from January 1, 2011 to the present.

Very uncool.

Top Settlements

Yo Dude! You may be eligible to share in the YoPlus $8.5 million settlement agreed this week by General Mills. If approved, the settlement would end a consumer fraud class action lawsuit alleging the food manufacturer misrepresented the digestive health benefits of its YoPlus probiotic yogurt. Well, they certainly wouldn’t be the first, and likely, they won’t be the last.

Filed in 2010, the consumer fraud class action lawsuit, entitled J Johnson v. General Mills Inc. et al., Case No. 10-cv-00061, U.S. District Court for the Central District of California, claims that consumers who purchased the YoPlus yogurt products were deceived into paying more for them as a result of General Mills misleading advertising.

In their motion to accept the settlement, the plaintiffs noted “Considering the strengths and weakness of this case, including the amount of potential damages available to the class after trial here and in other jurisdictions around the United States, the settlement represents an excellent result and includes relief for purchasers of YoPlus on a nationwide basis.”

Under the terms of the settlement, consumers who purchased YoPlus will be entitled to $4 per person for each unit they purchased. Not bad, really.

Putting on the Ritz? Em, maybe not. More like this one’s on the Ritz…The Ritz-Carlton that is. This week, the famous hotel chain agreed to pay $2 million in settlement of the Ritz-Carlton overtime class action lawsuit filed by 1,500 (yup—that’s the right number of zeros) current and former employees in California who allege they were not paid overtime wages.

Bottom line—eligible plaintiffs in the California overtime employment class action are for those who either work or worked at Ritz-Carlton hotels in San Francisco, Half Moon Bay and Lake Tahoe at any time from November 2007 on.

And just in case you need the details—the settlement, when approved, will resolve Lambson v. Marriott International, Inc. et al, Case No. 11-cv-06669, U.S. District Court for the Northern District of California, and allegations the Ritz Carlton, a subsidiary of Marriott International, violated California state wage and hour laws.

So—see you at the bar—who’s buying?

 

Week Adjourned: 8.24.12 – Hotel Deals, Parkay, ACS

The weekly wrap of top class action lawsuits and settlements for the week ending August 24, 2012. Top stories include online hotel reservations, Parkay margarine and ACS overtime.

Top Class Actions

And you thought you were getting a hotel deal? Consumers (that would be you and me) have filed an antitrust class action lawsuit against several online travel sites including Expedia, Inc, Travelocity, Booking.com, a subsidiary of Priceline.com, and the nation’s largest hotel operators including Hilton Hotel, Sheraton Hotels and Resorts, a subsidiary of Starwood Hotels and Resorts Worldwide, and Marriott International, Inc, claiming the two groups conspired to use their market dominance to fix prices on hotel rooms across the country.

The hotel price fixing class action lawsuit, filed on behalf of hotel room purchasers nationally, alleges that the online hotel retailers conspired with major hotel defendants to secretly create and enforce Resale Price Maintenance (RPM) agreements to thwart competition on hotel room prices, especially from price-cutting online retailers.

The complaint contends that the defendants’ unlawful conduct caused plaintiffs and other class members to overpay for their purchases of room reservations and seeks to represent all consumers who have purchased hotel rooms from the online retailer defendants.

According to the complaint, online travel sites account for as much as 50 percent of hotel bookings in the United States and traditionally operate under one of two models. Under the agency model, online retailers charge a service fee to a hotel operator on a transaction basis for booking customers, and that customer pays the hotel directly at a rate set by the hotel.

Under the merchant model, online retailers purchase rooms outright at a negotiated rate from the hotel, and then resell the rooms to consumers at a higher price, increasing or decreasing margins depending on competitive influences.

More recently, a new model has emerged that has cut into the traditional online retailers’ profits, the complaint contends, and has led to the creation of the RPM agreements. In this model, known as the Wholesale Model, third-party companies buy up unsold blocks of rooms at the last-minute and resell them to smaller price-cutting online retailers, eroding the profits of the traditional online retailers.

Knowing hotels cannot afford to lose access to online distribution networks, online retailers allegedly devised an illegal scheme, extracting agreements from the hotels that online retailers may not sell rooms below the RPM rates—even through the wholesale model—on penalty of termination and as a condition of doing business through the online retailers, the lawsuit contends.

The complaint states that the online retailer defendants often use terms like “best price guarantee” to create the impression of a competitive market, but in truth these are nothing more than a cover for the price-fixing conspiracy. The suit alleges that the defendants’ activities violate both the federal antitrust laws, as well as California’s Cartwright Act.

What’s the fat content in Parkay Spray Butter advertising? Higher than indicated, apparently…ConAgra Foods got hit with a consumer fraud class action lawsuit over allegations they intentionally misrepresenting the contents of Parkay Spray butter substitute.

Nebraska resident Pamela Trewhitt filed the Parkay lawsuit claiming that ConAgra falsely marketed the butter substitute as “fat-free” and “calorie-free,” even though it contains 832 calories and 93 grams of fat per 8-oz bottle. The lawsuit also claims that the nutrition information on the label underestimates the amount of fat and calories in the products by using artificially small serving sizes of one to five sprays.

“Defendant knew or should have known that its product was mislabeled and engendered confusion among consumers,” the lawsuit states. It cites numerous Internet complaints about the spray by consumers who couldn’t figure out why they weren’t losing weight until they discovered that Parkay Spray was the culprit. “I was literally taking the top of the ‘fat and calorie free butter’ spray and pouring it on my carefully steamed veggies when I found out that a bottle of that stuff is 90 fat grams. I was going through two bottles a week, and working out and getting fat and unhealthy,” one plaintiff alleges.

The Parkay lawsuit accuses ConAgra Foods of violating the Nebraska Consumer Protection Act, intentional and negligent misrepresentation, reaping ill-gotten profits, and fraud. Plaintiffs are seeking more than $5 million in damages as well as an injunction barring ConAgra from labeling Parkay Spray as fat-free and calorie-free.

Top Settlements

Now here’s a happy ending…Workers employed at an Oregon call center by Affiliated Computer Services Inc, have won a $4.5 million settlement in a wage and hour class action lawsuit. The lawsuit alleged the employees were not properly paid all minimum and overtime wages for all the hours they worked.

Filed in 2009, the lawsuit, entitled Bell, et al. v. Affiliated Computer Services, claims that ACS violated federal and state wage and overtime laws by failing to pay employees for all hours worked, all overtime hours and failing to timely pay final wages to employees at the end of employment.

Eligible class members of the ACS settlement include all employees of ACS who worked as a phone agent or representative in an Oregon call center for the “Retail, Travel, and Insurance,” “BPS,” or “Telecommunication and technology” business groups from April 2, 2005 through April 25, 2012.

The settlement has three classes, under which members may make a claim. They are:

Subclass A: Class Members who were employed by ACS in Oregon as of April 25, 2012 will receive a Settlement Award in the maximum amount of $125, not to exceed 2,000 individuals.

Subclass B: Class Members who were employed by ACS in Oregon and whose employment ended at any time between November 6, 2006 and April 24, 2012 will receive a Settlement Award in the maximum amount of $260, not to exceed 13,000 individuals.

Subclass C: Class Members who were employed by ACS and whose employment ended at any time between April 2, 2005 and November 5, 2006 will receive a Settlement Award in the maximum amount of $50, not to exceed 5,000 individuals.

In order to receive a Settlement Award from the ACS settlement class members must submit a valid Claim Form to the Settlement Administrator postmarked or faxed on or before September 1, 2012. Claim Forms have been mailed to Class Members.

A Final Approval Hearing for the Affiliated Computer Services Class Action Lawsuit Settlement will be held October 22, 2012.

Ok—that’s it for this week—see you at the pool bar!

Week Adjourned: 7.27.12 – Nurse Overtime Pay, Car Rentals, Wildfire Damage

The weekly wrap of top class action lawsuits and settlements for the week of July 27, 2012.

Top Class Action Lawsuits

Healthcare workers file overtime pay class action. Top of the list this week—one of the regulars—overtime, wage and hour violations—yes that old chestnut—again. This one’s a nationwide employment  class action lawsuit filed against one the nation’s largest home health care service providers. Filed in the U.S. District Court for the District of Connecticut, the lawsuit asserts that Amedisys, Inc. (“Amedisys”) violates the Fair Labor Standards Act (FLSA).

The class action lawsuit, entitled Cook, et al. v. Amedisys, Inc., asserts that Amedisys, which has more than 16,000 employees, treats visiting nurses and other home health care providers as exempt from the overtime requirements of the FLSA and refuses to pay these employees for all hours worked or time-and-a-half for hours worked over 40 per week. Amedisys pays nurses and other health care providers on a “per visit” basis for some work, with visit rates set based on estimated average visit durations, an hourly rate for other work, and fails to pay anything at all for other hours worked. Plaintiffs allege this compensation scheme does not meet the requirements of state or federal wage and hour law.

The national lawsuit, if certified, would allow all current and former Amedisys registered nurses, physical therapists, occupational therapists, and speech language pathologists who have not been paid for all hours worked to be eligible to participate in this legal action.

Top Settlements

Did you rent a car from a major car rental agency with a pick-up at a California airport? If so—head’s-up—you may be entitled to part of this settlement: A settlement has been reached in an antitrust class action lawsuit filed against nine major rental car companies over allegations they improperly charged certain fees to consumers who picked up their rental cars at a California airport in 2007.

The lawsuit, entitled Shames v. The Hertz Corporation, alleges the Defendants violated antitrust and other laws by raising rental car prices at California airports by conspiring with each other to pass on the Airport Concession Fee (ACF) and Tourism Commission Assessment (TCA) to customers for rentals at certain California airport locations.

Bottom line for the car rental settlement —if you rented a vehicle directly from corporate-owned locations of Alamo, Avis, Budget, Dollar, Enterprise, Fox Rent a Car, Hertz, National or Thrifty for pick up at a California airport location from January 1, 2007 through November 14, 2007, and were charged and paid an ACF and/or TCA as a separate line item on their invoice, you may be entitled to benefits under a class action settlement.

If you are entitled to benefits under this settlement, you can elect to receive one of the options below based on the total number of days you rented one or more vehicles:

$2 for each day the vehicles were rented ($5 minimum payment); or

If the vehicles were rented for less than 8 days, one voucher good for free time and mileage for one rental day; or

If the vehicles were rented for 8 or more days, either two vouchers good for free time and mileage for one rental day; or one voucher good for free time and mileage for two rental days.

To download forms or find more information on the settlement visit acftcasettlement.com .

Negligence with staggering consequences. And now they’re going to pay for it. A $122.5 million settlement has been reached in an environmental lawsuit brought against Sierra Pacific Industries by the United States Department of Justice. The lawsuit was filed over a 2007 wildfire that was among the most devastating in California history, according to the Department of Justice.

The fire, known as the Moonlight Fire, effectively destroyed 65,000 acres, 46,000 acres of which were national forests. Further, the fire killed more than 15 million trees on public land, some of which were more than 400 years old. It also destroyed thousands of acres inhabited by sensitive species including the California spotted owl, the Sacramento Bee reports. “The Moonlight Fire was a devastating blow to National Forest land here in California,” U.S. Attorney for the Eastern District of California Benjamin B. Wagner said in a statement. “What was lost was priceless and will not return for over a century.”

The fire was caused by Sierra Pacific employees and a contractor who struck a rock with a bulldozer, according to government prosecutors. This sent sparks into the dry ground on a day the National Weather Service had issued a red flag warning, indicating a high fire danger. The smoldering fire went unnoticed because the employees skipped a company-required fire patrol, prosecutors said.

“Instead, the designated fire watch left the work area and drove 30 minutes away to get a soda. When he returned over an hour later, there was a 100-foot wall of smoke billowing from the work area,” the Department of Justice said in a statement. Yes – sadly – that is what happened. Incredible.

The Moonlight Fire settlement is the largest ever received by the United States for damages caused by a wildfire. It includes a $55 million cash payment and 22,500 acres of land in California owned by Sierra Pacific. The U.S. Forest Service will choose the land, which prosecutors said is expected to bridge gaps between existing national forests and will support critical watersheds and sensitive species habitats.

Ok—That’s a wrap. Happy Friday! See you at the bar!