Tag: WEN

Week Adjourned: 5.5.17 – Honda CR-V, WEN, FedEx

Honda CR-V, Honda.com

Top Class Action Lawsuits

Honda in trouble—again? The got hit with a defective automotive class action lawsuit this week, over allegations of noxious fumes entering into the cabins of its 2015, 2016 and 2017 models of its CR-V sport utility vehicles. Sounds unpleasant, on a number of fronts.

The lawsuit also alleges Honda is guilty of consumer fraud, as it states the automaker knowingly sells cars with a defect causing the passenger cabin to fill with gasoline fumes. Honda has so far refused to take the cars back, or offer to replace or repair the vehicles.

According to the Honda CR-V lawsuit, new Honda vehicles come with a three-year or 36,000-mile warranty that provides free repairs or replacement of the vehicle for problems arising from defects in its design or construction. However, the plaintiffs state that when they complained to Honda about the alleged fumes, the company declined to honor the warranty. The plaintiffs claim the fumes are bad enough to keep them from driving the car, causing them to suffer headaches and stomach pain. They describe the smell as “intermittent and pungent” and doesn’t seem to be affected by the speed or duration of driving. The majority of the plaintiffs claim they first noticed it within a year of purchasing or leasing their CR-Vs.

“Plaintiffs and class members have no confidence and peace of mind in a manufacturer that continues to sell vehicles it knows reek of gasoline yet refuses to repair or replace as required by its warranty,” the lawsuit states.

According to the lawsuit, Honda has received hundreds of complaints regarding the fumes, dating back to July 2015. While Honda has acknowledged the problem, it said it does not know how to fix it.

The proposed class seeks to represent anyone who purchased a 2015, 2016 or 2017 CR-V, who complained to Honda about the leaking vapors, and who did not receive a repair or replacement of the car.

The lawsuit states that Honda is in breach of its own warranty and in violation of several state consumer fraud statutes. It seeks compensatory damages for the class.

The putative class is represented by Alexander Loftus of Stoltmann Law Offices PC. The case is Carol Miles et al v. American Honda Motor Co. Inc., case number 2017-CH-06331, in the Circuit Court of Cook County.

Top Settlements

Heads up! —pardon the pun—if you purchased WEN hair products. This week, a $26.25 million settlement was reached in a consumer fraud class action lawsuit pending against WEN by Chaz Dean Inc. and manufacturer Guthy-Renker LLC. The lawsuit alleged that the celebrity stylist’s hair products caused consumers’ hair to fall out.

In addition to hair loss, the plaintiffs alleged the WEN products contained sulfates when they were marketed as “sulfate-free.” Further, WEN and Guthy-Renker were aware of the problems for at least four years due to tens of thousands of customer complaints, yet issued no recall, according to the lawsuit.

The litigation has been going on for three years and involves, potentially, millions of customers. If the proposed settlement receives final court approval, WEN will be required to place a warning label on its Cleansing Conditioner.

The proposed WEN settlement establishes two avenues of compensation for class members: the first, a flat $25 refund for those who bought the products, and the second would be awards of up to $20,000 for those who used the product and experienced hair loss or scalp pain.

The settlement class covers consumers who purchased WEN hair care products between November 1, 2007, and August 1, 2016.

Final court approval is required.

The case is Amy Friedman et al. v. Guthy-Renker LLC et al., case number 2:14-cv-06009, in the U.S. District Court for the Central District of California.

FedEx to deliver—on unpaid overtime. Yup. This week, a $227 million settlement agreement received final approval ending an unpaid overtime class action lawsuit between FedEx Corp and its drivers in 19 states. The plaintiffs alleged they were misclassified as independent contractors by FedEx, rather than full time workers, and were therefore undercompensated.

According to FedEx settlement documents, 12,627 drivers are named as plaintiffs in class-action lawsuits in the 19 states. They will receive payouts ranging from $250 to in excess of $116,000, under terms of the separate settlements in each state.

Settlement distributions and resolution of the lawsuits under the terms laid out, are as follows:

Indiana: 791 drivers will divide a settlement of $33.95 million. Average recovery per class member will be $29,520. Settlements per driver may range from $250 to $116,028.

Alabama: 375 drivers will share a settlement of $3.2 million. Average recovery per class member will be $5,620. Settlements per driver may range from $250 to $20,100.

Arizona: 380 drivers will share a settlement of $4.95 million. Average recovery per class member will be $8,699. Settlements per driver may range from $250 to $28,149.

Georgia: 867 drivers will share a settlement of $4.94 million. Average recovery per class member will be $3,785. Settlements per driver may range from $250 to $13,711.

Louisiana: 315 drivers will share a settlement of $5.25 million. Average recovery per class member will be $11,061. Settlements per driver may range from $250 to $39,743.

Maryland: 533 drivers will share a settlement of $9.4 million. Average recovery per class member will be $12,047. Settlements per driver may range from $250 to $29,455.

Minnesota: 455 drivers will share a settlement of $8.3 million. The average recovery per class member will be $12,312. Settlements per driver may range from $250 to $44,701.

New Jersey: 901 drivers will share a settlement of $25.5 million. Average recovery per class member will be $19,301. Settlements per driver may range from $250 to $71,194.

New York: 1,602 drivers will share a settlement of $42.9 million. Average recovery per class member will be $18,421. Settlements per driver may range from $250 to $68,880.

North Carolina: 707 drivers will share a settlement of $20 million. Average recovery per class member will be $19,250. Settlements per driver may range from $250 to $53,440.

Ohio: 878 drivers will share a settlement of $8.35 million. Average recovery per class member will be $6,363. Settlements per driver may range from $250 to $20,611.

Pennsylvania: 1,265 drivers will share a settlement of $23 million. Average recovery per class member will be $12,442. Settlements per driver may range from $250 to $45,647.

Rhode Island: 125 drivers will share a settlement of $1.6 million. Average recovery per class member will be $7,352. Settlements per driver may range from $250 to $20,332.

South Carolina: 274 drivers will share a settlement of $3.1 million. Average recovery per class member will be $7,405. Settlements per driver may range from $250 to $19,682.

Tennessee: 762 drivers will share a settlement of $12.25 million. Average recovery per class member will be $10,863. Settlements per driver may range from $250 to $39,838.

Texas: 1,515 drivers will share a settlement of $8.9 million. Average recovery per class member will be $3,938. Settlements per driver may range from $250 to $13,880.

Utah: 171 drivers will share a settlement of $2.4 million. Average recovery per class member will be $9,130. Settlements per driver may range from $250 to $28,886.

West Virginia: 107 drivers will share a settlement of $3.75 million. Average recovery per class member will be $22,306. Settlements per driver may range from $250 to $76,456.

Wisconsin: 604 drivers will share a settlement of $5.5 million. Average recovery per class member will be $6,126. Settlements per driver may range from $250 to $21,842.

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

Week Adjourned: 8.19.16 – Wen Haircare, Bluegreen Vacations, Columbia U

Top Class Action Lawsuits

Your Dream Holiday? Or not. According to two women in California—it’s “or not.”. They filed a consumer fraud class action lawsuit against Bluegreen Vacations Unlimited Inc, alleging they sustained financial damages due to misleading information the defendant provided them on purchasing a time-share.

According to Kyle Miles and Jasmine Miles, Bluegreen Vacations made several false representations regarding a timeshare contract, including the total cost of the contract. Further, they assert the company promised that they would buy back the contract from the consumers if they were unhappy with the timeshare. I’m guessing that didn’t happen.

Kyle and Jasmine Miles seek a trial by jury, restitution, enhanced damages, legal fees and all relief the court deems just. They are represented by attorneys Todd M. Friedman and Adrian R. Bacon of the Law Offices of Todd M. Friedman in Beverly Hills, California.

The case is US District Court for the Eastern District of California Case number 1:16-cv-00937-LJO-JLT.

Here’s something we’re seeing a lot more of these days, an ERISA (Employee Retirement Income Security Act) class action lawsuit. This one has been filed against Columbia University alleging it breached its obligation under ERISA to prudently invest its employees’ retirement savings.

In the Columbia University class complaint alleging one hundred million dollars in damages, Plaintiff Jane Doe, a faculty member at Columbia University and a participant of the University’s retirement plans, sued on behalf of herself and a class of 27,000 current and former Columbia University employees who participated in Columbia University’s retirement plans. The complaint alleges that the University breached its fiduciary duties under ERISA. Columbia University, as well as University Vice President of Human Resources Dianne Kenney, who administers the deficient plans, are named as Defendants.

According to the complaint, Columbia University retained expensive and poor-performing investment options that consistently underperformed their benchmarks. This caused its 401(k) plans and their participants to suffer hundreds of millions of dollars in losses of retirement savings. As a result, the University’s 401(k) plan included $4.6 billion of investment options that were primarily poor to mediocre performers. Among the plans’ poor-performers, the complaint points to the plans’ retention of the TIAA-CREF Stock Account R3, which, it alleges, has historically underperformed its benchmarks and other lower-cost investments that were available for inclusion in its retirement plans.

In addition to retaining poorly performing funds, the lawsuit charges that the University’s plans offer excessively duplicative investments to beneficiaries. According to the complaint, this selection of funds violates the industry principle that too many choices harm participants, and can lead plan participants to “decision paralysis” and selection of inferior investments. In addition, the plans charge excessive fees for recordkeeping, administrative, and investment services, and retain excessively expensive retail share class options despite the lower-cost options available to their plans.

wenTop Settlements

WEN is there a Settlement? Big news for people who suffered damages from WEN Hair Care Products. 

A proposed $26,250,000 settlement has finally been reached in the class action lawsuit pending against them.

Cast your mind back to December, 2015, when the class action lawsuit was actually filed, naming defendants Wen Hair Products and the manufacturer Guthy-Renker. The lawsuit resulted from thousands of complaints from women alleged severe and possibly permanent hair loss after using the products. Other Wen side effects include rash and burning eyes.

So here’s the skinny on the proposed WEN settlement: The settlement class is defined as All purchasers or users of WEN Hair Care Products in the United States or its territories between November 1, 2007 and August 1, 2016, excluding (a) any such person who purchased for resale and not for personal or household use, (b) any such person who signed a release of any Defendant in exchange for consideration, (c) any officers, directors or employees, or immediate family members of the officers, directors or employees, of any Defendant or any entity in which a Defendant has a controlling interest, (d) any legal counsel or employee of legal counsel for any Defendant, and (e) the presiding Judge in the Lawsuit, as well as the Judge’s staff and their immediate family members.

The settlement consideration consists of the $26,250,000 (the “Fund”) settlement fund which shall be used to pay for administration and court costs, legal fees, and other related costs, and to pay Class Member claims and provide Incentive Awards to the named plaintiffs.

There are two Settlement Classes, namely, Tier 1 and Tier 2.

Tier 1 Class-Wide Flat Rate Claims consists of any member of the Settlement Class who purchased Wen Hair Care products and does not timely request to opt-out of the settlement class. They shall be entitled to submit a claim against the Fund for a one-time flat payment of $25 per person as compensation for claims of misrepresentation regarding the qualities and attributes of WEN Hair Care Products, or undocumented claims of bodily injury, including but not limited to hair loss, hair damage, scalp pain or irritation, after using WEN Hair Care Products. Five Million Dollars ($5,000,000) of the Fund shall be set aside to pay Class Members making Tier 1 claims.

Tier 2 Documented Adverse Reaction Claims shall consist of any member of the Settlement Class who alleges to have suffered bodily injury, including but not limited to hair loss, hair damage, scalp pain or irritation,as a result of using WEN Hair Care Products, and does not timely request to opt out from the Settlement Class, may make a claim against the Fund for reimbursement of amounts spent to redress such alleged injuries, as well as an injury award designed to compensate the Class Member for any alleged injuries sustained, up to a maximum of $20,000 per Class Member, as set forth below. To make a claim under Tier 2, the Class Member must submit a valid Tier 2 Claim Form and supporting documentation, as set required by the Settlement Agreement.

The Defendant also agrees that all labels for WEN Cleansing Conditioner created after the Effective Date shall bear a common sense caution materially consistent with the following: “If you experience any adverse reaction after using this product, immediately cease use and consult a physician.”

The settlement remains to be approved – but watch this space for updates.

So folks, on that happy note—this week’s a wrap. See you at the bar!!