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Consumer Fraud Archives

Institutional Investors Bring Suit Against Volkswagen in Midst of Emissions Scandal

The fallout from Volkswagen's emissions scandal was propelled to new heights when institutional investors filed a $3.6 billion suit against the company in Germany's Regional Court in Brunswick in mid-March. For months, Volkswagen has been responding to allegations and legal actions arising as a result of its "Clean Diesel" engines not performing as advertised. Volkswagen defrauded consumers by equipping some vehicles with technology designed to falsely represent the outcomes of emissions tests.

Super Bowl Ticket Suit Dies at 3rd Circuit

Any football fan knows that attending an NFL game can be a pricey experience. The most recent Super Bowl had an average ticket price somewhere between $2,500 and $3,000. A suit in New Jersey sought to challenge the high prices from the Super Bowl two years ago arguing that there were not enough tickets for public sale.

Apple slapped with class-action lawsuit by iPhone 4 users over iOS 9 update

Within the technology world, Apple, Inc. is among the most progressive and admired of all major tech corporations. In June of 2007, with the introduction of the first iPhone model, the company's innovative iPods were expanded and improved upon to include Smartphone capabilities. Since that time, the company has released a total of six iPhone versions with each including improvements in speed and additions in technological capabilities.

KT Tape False Advertising Class Action

Companies rely upon advertisements to attract customers. Catchy slogans and aesthetically pleasing posters have the potential power to convince people to buy a product. However, companies have an obligation to make sure their advertising is true and not misleading. If a company does not meet its duty, there are laws to protect consumers from false advertising. Last year, Red Bull settled a class action lawsuit that claimed its slogan, "Red Bull gives you wings," was false advertising. Unsurprisingly, Red Bull was unable to prove its energy drink could give its customers wings.

California Volkswagen owners accuse carmaker of fraud

With a name that translates into English as "the people's car company," since its formation in 1937, the German motor vehicle company Volkswagen eventually grew to become the biggest carmaker in the world. However, when news of the company's deceptive practices related to emissions-rigging software became public earlier this fall, Volkswagen’s reign at the top came to an abrupt end.

Government contractor settles qui tam lawsuit for $26.75M

For many private businesses, a service contract with the United States government is a highly-coveted prize. USAspending.gov notes that the U.S. government has paid out more than $8 billion dollars in contract deals. While many government contractors take care to ensure that they are accurate and ethical in their billing practices and dealings with the government agencies to which they provide goods and services, some regard a government contract as an opportunity to defraud the government and to essentially steal from U.S. taxpayers.

Microchips Are Not Enough for Card Security

Frequently, people's personal data is stolen through cyber hacking. Within this year alone, we have witnessed data breaches and cyberattacks against a variation of large organizations, including the Office of Policy Management, Anthem BlueCross BlueShield ("Anthem") and the Army National Guard. Consequently, people are reasonably becoming increasingly wary with respect to the security of their personal and financial information. Organizations that collect the personal information of their employees, clients, and customers have an obligation to guard it as well. In fact, there is a putative class action against Anthem for not taking measures to sufficiently protect its clients from a data breach that Anthem suffered in February.

Supreme Court Divided on Moot Case Criteria

A case that has been resolved by a court of law is called a "moot case." Cases can be resolved several ways, one of which includes two parties reaching an agreement through a settlement. The standards for a moot case sound simple enough, but a recent issue brought to the U.S. Supreme Court questions whether a settlement offer that would fulfill all of the plaintiff's demands should also constitute as making the case moot.

Government Agency Proposes Arbitration Rule

Do you take the time to read customer agreements before accepting them? Many, if not most, people do not. And those that do read them, do not likely understand the terms they're agreeing to. For example, many of these agreements have included arbitration clauses that eliminate the customer's right to join a class action suit. The effect of such a clause on consumers can be substantial. If a consumer purchases a faulty product or service and has signed such an agreement, instead of being able to seek relief with a bigger population of consumers with the same or similar grievances (a "class"), individual consumers would have to go through arbitration or file a suit themselves, and on behalf of only themselves. This thought is daunting enough to dissuade many consumers from seeking any recourse when they've been damaged and, even if they choose to push forward, according to a 2015 report by the Consumer Financial Protection Bureau ("CFPB"), consumers who went through individual arbitration or did not fare as well as members of class action lawsuits.

TCPA: UnitedHealthcare case revival and FCC's new ruling

Advances in technology have made communication easier and more efficient. We have come a long way from pigeon messengers through the evolution of "snail" mail, faxes, and emails. And the easier it is to pass along information, the easier it is for businesses to solicit. While some people may not mind receiving sales calls, others view solicitations as an intrusion on their time and privacy. Luckily for those in the latter population, the Telephone Consumer Protection Act of 1991 ("TCPA") restricts telemarketing and the use of automated telephone equipment (artificial voice messages, SMS text messages, and fax machines) in several ways, including sending unsolicited advertising faxes.