Week Adjourned: 4.17.15 – Source Naturals, Southwest Airlines, HAMP Mortgages

Source Naturals LogoTop Class Action Lawsuits

Source Naturals a little light on the content? According to a consumer fraud class action lawsuit filed this week, it is. The plaintiff alleges the amounts of vitamins and minerals in the vitamins are inaccurate.

In her Source Naturals complaint, Jennifer Dougherty alleges she purchased the products online for about $20 in November. According to the lawsuit, Source Naturals advertised that its multivitamins contained 12,500 IU per serving of vitamin A. Dougherty claims that the amounts of the of six vitamins and minerals in its multivitamins were off by as much as 90 percent, which was shown in tests. Those same tests also revealed that the vitamin B-3 contained in the product was about 19 percent less than represented; calcium per serving was about 22 percent less; zinc was under by about 24 percent; manganese was under by about 36 percent; and magnesium was under by about 12 percent than what Source Naturals claimed, according to the lawsuit.

The Source Naturals lawsuit is seeking class action status for those that purchased the multivitamins and seeks less than $5 million plus court costs. The $5 million figure represents a threshold for removal under the Class Action Fairness Act.

Southwest Early Bird Check-In a scam? At least one passenger thinks so. Teri Lowry filed a consumer fraud class action lawsuit over allegations the airline misleads customers into purchasing early flight check-ins, billed as “Early-Bird” priority boarding.

Specifically, the Southwest Airlines lawsuit contends that the airline deceived her into purchasing an “Early-Bird” priority boarding cost for a flight she took in March 2014 from Los Angeles to Indianapolis.

Lowry claims she purchased a “Wanna Get Away” ticket offered by Southwest, and then added on the “Early-Bird Check-in” feature for $25 roundtrip. She states in her lawsuit that she purchased the feature based on previous experience when she traveled with Southwest and received a “B” boarding group assignment.

The lawsuit states that when Lowry contacted others who had received a higher boarding position than she did for her trip to Indianapolis, none of them had purchased the “Early Bird Check-In.”

According to the complaint, Southwest Airlines allocates boarding in the order in which a customer checks in online, with boarding broken into three groups of about 60 board positions each. According to the lawsuit, Southwest Airlines’ website states customers can obtain an A boarding position by purchasing an “Early Bird Check-in.”

In her complaint, Lowry alleges Southwest’s website says customers who purchased “Anytime” fares receive priority over other fare types including “Early Bird Check-ins.” The lawsuit alleges that contradicts other areas of the website that say “Anytime” or “Wanna Get Away” fares don’t have priority over other fares.

Top Settlements

A $4.5 million settlement has been reached in a consumer banking deceptive practices violations class action lawsuit against a unit of Morgan Stanley (Saxon). The lawsuit was filed by homeowners who allege the finance company denied thousands of California homeowners new terms through the federal Home Affordable Modification Plan (HAMP), which they claim resulted in some people losing their homes.

The Morgan Stanley HAMP settlement is preliminary and requires final approval, which, if granted, would pay the approximate 2,705 class members an average of $1,663 each. According to court documents, the settlement represented about 15 percent of the roughly $30 million in total trial payments made by the class.

According to the lawsuit, plaintiff Marie Gaudin alleged Saxon delayed processing her loan while urging her to make trial payments as part of its Home Affordable Modification Program, meant for homeowners who were behind on loan payments. Saxon later pulled the offer of permanent loan modification without cause, according to the lawsuit.

If approved, 1,365 class members who lost their homes after Saxon denied them permanent loan modifications would be paid back. All class members would receive a base award of approximately $184, with tiered payments being made to those who lost their homes in foreclosures or short sales without being offered loan modifications, and to those who entered into alternative modifications elsewhere.

The class is defined as California borrowers who entered into HAMP TPPs with Saxon through October 1, 2009, and made at least three trial period payments but did not receive HAMP loan modifications.

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

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