Week Adjourned: 6.12.15 – US Airways, Almond Milk, First Tennessee Bank

US AirwaysTop Class Action Lawsuits

Been charged for tickets you couldn’t purchase? Schuyler Hoffman was. He was trying to book tickets online with US Airways, and it just wasn’t working. So, he’s filed a consumer fraud class action lawsuit alleging the airline doesn’t honor its online ticket prices for certain tickets. Filed in U.S. District Court for the Southern District of California, the complaint states that US Airways online ticket prices were made “incompletable” after he tried to purchase tickets. Now there’s a new word, but likely not a new experience.

Specifically, the US Airways complaint alleges that the US Airways website states consumers won’t be charged for the attempted purchase of a ticket. However, Hoffman’s card was charged by the airline and it held onto the funds. Hoffman states that he attempted to purchase two tickets on U.S. Airways’ website for $1,372 but an error message came up stating the transaction could not be completed. The lawsuit goes on to state that Hoffman attempted the transaction two other times, receiving the same message both times.

Hoffman then called US Airways and as told by a representative that his card wasn’t charged. However the representative couldn’t determine why the purchase hadn’t gone through, and when Hoffman later contacted his bank, he found he was charged for the first attempted purchase of the tickets, according to the complaint.

According to the lawsuit, Hoffman contacted the airline again and was told the price for the tickets had risen between when he selected the tickets and when he entered his payment information.

The lawsuit is U.S. District Court Southern District of California case number: 3:15-cv-01214

Almond milk… ever wondered how many almonds it takes to make a large container of say Almond Breeze of Silk brand almond milk? Not so much, as it happens. In fact, the two manufacturers of Almond Breeze and Silk almond milk are facing a consumer fraud class action lawsuit over the percentage of almond contained in its milk.

Filed by Tracy Albert and Dimitrios Malaxianis in US District Court in New York, the almond milk lawsuit names Blue Diamond Growers and WhiteWave Operating Co. as defendants, alleging that contrary to the companies’ advertising, which states that the milk is made mostly from almonds, in fact they only contains about two percent almond milk.

Blue Diamond’s brand is Almond Breeze brand and WhiteWave sells its organic milk under the Silk brand name. The two companies combined are the largest producers of almond milk in the United States, the lawsuit states.

In addition to seeking class action status to represent people who purchased Blue Diamond and WhiteWave products from May 27, 2009, up until the present, the plaintiffs are asking for over $5 million in damages plus court costs.

The lawsuit is seeking class status for those that purchased Blue Diamond and WhiteWave products from May 27, 2009, up until the present. The plaintiffs are also seeking more than $5 million in damages plus court costs.

The lawsuit is United States District Court for the Southern District New York case number 1:15-cv-04087

Top Settlements

Looks like the Feds won this one—and it’s a whopper. A $212.5M settlement has been reached ending a consumer banking fraud lawsuit brought by the US Attorney General against First Tennessee Bank NA, in which the federal government alleged the bank approved loans that failed to meet the government’s requirements. The lawsuit also alleged violation of the False Claims Act.

According to a statement by Benjamin Mizer, principal deputy assistant US attorney general, First Tennessee Bank N.A. was accused of originating and underwriting mortgage loans insured by the US Department of Housing and Urban Development’s Federal Housing Administration even though they didn’t meet the program requirements.

The settlement resolves allegations that First Tennessee failed to comply with First Horizon Home Loans Corporation origination, underwriting and quality control requirements.

Onwards! To the bar folks—that’s a wrap for this week.

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