Week Adjourned: 5.11.12 – Overtime Pay, Smoking Dishwasher, Ormat

A wrap up of the week’s top class action lawsuits and settlements for the week ending May 11, 2012. Top stories include unpaid overtime, smoking dishwashers and Ormat green energy.

Top Class Actions

Holy Catfish Batman!—what’s that smoking thing in the kitchen? A defective dishwasher, perhaps? We’ll find out, as a defective products class action lawsuit has been filed against Whirlpool, the manufacturer of Kitchenaid, Sears Kenmore, Maytag and Whirlpool dishwashers, alleging that certain models of dishwashers have a design flaw that can cause the control circuit board to fail. Greg Adams, who filed the defective dishwasher lawsuit, alleges this happened to him.

Adams claims that on December 8, 2011, he started his dishwasher only to smell burning plastic and see smoke coming from his dishwasher, sometime shortly afterward. To stop the dishwasher, he tried to pull on the door handle, but said he burned his hand on the front panel, which had become extremely hot. In the end, Adams was forced to shut the power off, to prevent further catastrophe, and protect his family. (You know this puts a whole new spin on the benefits of take out.)

According to NBCnews.com, research suggests more than 600 people across the country have come forward on kitchenaid.com. Their products were manufactured by whirlpool, which produces Kitchenaid, Sears Kenmore, Maytag and Whirlpool dishwashers. So why no recall? Well, a recall is one of the things the lawsuit seeks to achieve. Why is this so hard?

Unpaid, unhappy and unafraid… drug sales reps from Medimmune Biologics filed an employment class action lawsuit this week, against the drug company alleging unpaid overtime wage and hour violations. Sound familiar? Novo Nordisk,  and Merck are also facing unpaid overtime suits by their sales reps. An industry-wide practice perhaps? Possibly. That is the $65 million question—and hinges on the definitions of ‘exempt’ and ‘non-exempt’.

According to the Medimmune wage and hour class action lawsuit, Medimmune Biologics violated California overtime laws by failing to pay drug sales representatives for overtime hours worked. Under California law, companies are required to pay all non-exempt employees overtime compensation whenever the employees work more than eight hours in a day or forty hours in a week.

The primary requirement to satisfy the outside salesperson exemption and thus not pay overtime under California law and the Fair Labor Standards Act is that the sales representatives are actually making sales. In the Medimmune Biologics overtime class action lawsuit, the drug sales representatives allege that they were not actually involved in making sales but rather promoting prescription drugs to physicians, doctors and other specialists. At most, the physicians the sales representatives promote the drugs to can agree to prescribe the medicine to patients as needed, but cannot actually buy the prescription medicine from the sales representatives directly.

Notably, all the pharma sales rep unpaid overtime class action lawsuits allege that the pharmaceutical sales representatives should be paid overtime compensation for working more than eight hour days under the California Labor Code and/or forty hour weeks under the Fair Labor Standards Act based on the contention that the drug sales representatives do not qualify for the outside salesperson exemption because they are not actually making sales. Incidentally, sales reps who filed unpaid overtime class actions against Schering Plough won.

Top Settlements

Green Energy Co. about to Hand Over Some Green? We have a potential settlement in the Ormat Technologies securities class action this week.

So here’s the not-so-skinny skinny:

To anyone who purchased or otherwise acquired Ormat Technologies Inc securities between May 7 2008 and February 24, 2010, inclusive, who incurred damages (the “class”):

You are hereby notified that this Class Action is pending and that a Settlement of it for Three Million One Hundred Thousand Dollars ($3,100,000) has been proposed. A hearing will be held on October 1, 2012, to determine: (i) whether the Settlement and Plan of Allocation should be approved by the Court as fair, reasonable, adequate, and in the best interests of the Class; (ii) whether Co-Lead Counsel’s application for an award of attorneys’ fees and the reimbursement of expenses should be approved; (iii) whether the Court should grant Lead Plaintiffs reimbursement of their reasonable costs and expenses (including lost wages) directly related to their representation of the Class; and (iv) whether the Court should approve the release of Released Claims against any and all Released Persons and dismiss the Litigation with prejudice.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND.

To participate in the Settlement, you must submit a Proof of Claim no later than September 24, 2012. As more fully described in the Notice, the deadline for submitting objections to the Settlement and requests for exclusions from the Class is September 10, 2012. Further information may be obtained by visiting gcginc.com/cases/ormat.

Got that?

Good. See you at the bar. And—Happy Mother’s Day!

 

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