Week Adjourned: 1.13.12

A wrap up of the week’s top class action lawsuits and settlements, for the week ending January 13, 2012.

Top Class Actions

Diagnosis: Discrimination? Following in the footsteps of the Novartis and Merck suits, one has to wonder if discrimination is standard practice in this industry…

A $100 million gender discrimination employment class action lawsuit has been filed against Quest Diagnostics Inc., and AmeriPath, Inc., (collectively known as “Quest”) in U.S. District Court for the District of New Jersey.

The complaint details the systemic discriminatory treatment of female sales representatives company-wide by the self-proclaimed “world leader in diagnostic testing, information and services.”

Indiana resident Erin Beery and Florida resident Heather Traeger, both of them current Quest employees in the AmeriPath division, filed the lawsuit on behalf of themselves and a class of similarly-situated sales reps employed from February 17, 2010 to the present. Beery is an Executive Territory Manager in Quest’s Anatomical Pathology Sales Division in Indianapolis; Traeger is Senior Executive Territory Manager in the Anatomical Pathology Sales Division in Bradenton.

The complaint details a wide range of discriminatory practices in the selection, promotion and advancement of sales reps at Quest Diagnostics and AmeriPath, including discrimination on the basis of pregnancy and caretaking responsibilities in violation of Title VII of the Civil Rights Act of 1964 and other federal statutes.

In addition, both of the named plaintiffs in the case have individual claims of disparate pay, differential treatment, gender hostility, the creation of a hostile work environment and retaliation in the workplace affecting them in violation of Title VII of the Civil Rights Act of 1964 and other federal statutes.

According to Beery and Traeger, high ranking company officials within Quest’s predominately-male management team foster an environment detrimental to the success and advancement of female employees. They describe “old boys’ club” attitudes that pervade the enterprise, including forcing women to work under less favorable circumstances than their male counterparts and denying them the educational and job advancement opportunities afforded men in similar positions.

The complaint asserts that Quest’s policies do not provide sufficient oversight or safety measures to protect women from intentional and overt discrimination of even facially-neutral policies, so that female employees discriminated against have no recourse within the company. It cites an absence of internal incentives or disciplinary measures to ensure company executives and managers comply with company discrimination policies and equal employment laws.

The lawsuit also asserts that a significant number of the women who work for Quest have been and are affected by the same discriminatory employment policies, practices and procedures to which Beery and Traeger were subjected, justifying the certification of the class.

Scanning Scam? And now for our weekly consumer fraud lawsuit. This one was filed against Symantec Corp alleging the software manufacturer attempts to convince consumers to buy its products by providing misleading information about the functionality of their computers.

Filed by James Gross, of Washington state, the lawsuit claims that Symantec distributes trial versions of its products that scan a consumer’s system, then report that harmful errors, privacy risks and other problems exists on the PC, regardless of the actual operating status of the computer.

The lawsuit also claims that Symantec uses that scanning software to market Norton Utilities, PC Tools Registry Mechanic and PC Tools Performance Toolkit software. Norton Utilities and PC Tools are products that Symantec claims help improve the performance of personal computers and keep online activities private. The lawsuit claims that Norton Utilities and PC Tools are forms of “scareware,” a common type of malicious software that causes pop-up messages to appear on computers telling users that they are infected with a virus.

“The truth, however, is that the scareware does not actually perform any meaningful evaluation of the user’s computer system, or of the supposed ‘errors’ detected by the software,” the complaint claims. What scareware does do, in my experience, is suck up your time and send your stress levels through the roof—like you’ve got nothing better to do!

“The scareware does not, and cannot, actually perform the valuable tasks represented by Symantec through its websites, advertising, and in-software display screens.” No comment.

Lawyers representing the plaintiffs state that the software is falsely informing the consumer that errors are high priority and in addition it is falsely informing the consumer that their overall system health and privacy health is low. Symantec makes Norton 360, Norton Internet Security and Norton AntiVirus software.

Top Settlement

Nationwide Insurance Settlement. Well, it’s a start. This week, a federal court preliminarily approved a settlement with Nationwide Insurance that resolves allegations brought in a federal class action lawsuit, that the insurer improperly reduced or denied insurance benefits to residents in Delaware. Nice.

What’s the beef? The lawsuit claims that Nationwide improperly reduced or denied insurance benefits for medical services after submitting medical bills to a computer-based bill review audit. Specifically, the lawsuit challenges reductions in payment for those services based upon a reasonableness or usual and customary charge bill review administered by Mitchell Medical. Among other things, the lawsuit challenges Nationwide’s right to conduct such bill review under the applicable policies, the disclosure that such bill review would be conducted, and the manner in which the bill review was conducted. Nationwide denies any wrongdoing, and contends that review of medical bill pricing protects against excessive charges and helps to preserve insurance benefits.

Here’s the skinny on qualifying: “You are a member of the “Settlement Class” and a “Settlement Class Member” covered by the settlement if you fall within the following class definition adopted by the Court:

All persons, and their medical providers or other assignees, who (a) submitted first-party medical expense claims to Nationwide pursuant to Nationwide’s Delaware automobile insurance policy No-Fault coverage; (b) had their claim submitted by Nationwide to computer pricing review during the period from September 1, 2004 through December 31, 2007; (c) received or were tendered payment but in an amount less than the submitted medical charges based upon the pricing review of the charges; and (d) received or were tendered an amount less than the stated policy limits.”

You can find out more about the Nationwide insurance settlement here.

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

Week Adjourned: 10.21.11

The weekly wrap up of class action lawsuits and lawsuit settlements for October 21, 2011

Top Class Actions

Sex discrimination—still? Really? Yup—and this time the company doing the dirty was owned by a woman—Ruth U. Fertel. However, she passed away in 2002, and it looks like things have regressed since then. And the company is….Ruth’s Chris Steak House. Four former and current employees filed a sex discrimination class action alleging they were discriminated against for pay and promotions.

The women’s jobs ranged from national sales manager to bartender, and they brought the suit in October 2010. The United States District Court for the District of Columbia has now granted the Ruth’s Chris Steak House discrimination suit plaintiffs the right to add class action claims to the lawsuit.

The women also allege that they suffered sexual advances in the work environment at the steak house chain, including physical groping, sexual innuendo and retaliation against those who complained or reported sexual harassment. Hey—the meat’s on the plate boys…

Top Settlements

Who says the little guy can’t win? A $160k settlement has been awarded to a former employee of retail giant Target, ending his discrimination lawsuit against the company. Jeremy Schott, who filed the lawsuit, took medical leave in 2004 due to his experiencing a seizure. He was 29 years old at the time. In his lawsuit, he alleged that when he returned to work his weekly hours had been reduced from 17 to eight. The U.S. Equal Employment Opportunity Commission sued Target on Schott’s behalf, alleging a violation of the Americans with Disabilities Act (ADA).

Target’s counsel contended that Schott’s work hours were decreased because of poor performance and a lack of motivation. The parties agreed to settle for $160,000. As part of the settlement Target has agreed to designate an ADA coordinator and implement a policy regarding reasonable accommodations.

Defective Pool Slide Settlement. This is very sad… The widower and child of a young woman who died as a result of a defective inflatable pool slide purchased from Toys “R” Us have been awarded a $20.6 million settlement this week by the judge hearing the personal injury lawsuit.

The accident that took Robin Aleo’s life happened five years ago, when she was just 29 years old. She had an 18-month old daughter at the time. Aleo was at a pool party at a relative’s home when she decided to go down the six foot Banzai Falls slide head first. When she neared the bottom the slide suddenly bottomed out and Aleo hit her head on the edge of the pool, breaking her neck and sending her to hospital unable to breathe on her own and paralyzed. She died at the hospital the following day.

According to a report in the EagleTribune, Aleo is the second person to have allegedly been paralyzed by an incident involving the Banzai Falls slide. According to court records, more than 4,000 of the slides were sold nationwide, without having been tested to see if it met federal safety standards.

Ok – That’s it for this week. See you at the bar.