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Posts tagged "Class Action"

Court Allows Defective Brake Class Action Against Hyundai to Continue

On Friday, September 29, 2017, U.S. District Judge Thomas P. Griesa of the Southern District of New York allowed a proposed class action over an alleged brake defect in certain Hyundai Sonata sedans against Hyundai Motor America ("Defendant") to move forward. The Court found that although some of the drivers' claims should be thrown out, others deserve to proceed.

Yahoo Battling off Class Action Lawsuits

On Friday, September 23, 2016, Yahoo Inc. ("Yahoo" or the "Company") was hit with three proposed class action lawsuits, two in California and one in Illinois, just one day after the Company announced it had been hacked in 2014. The Company revealed that over 500 million people had their personal information, including names, passwords, security questions and answers, dates of birth, email addresses, and telephone numbers stolen from Yahoo's online database. The Company believes that the hack was executed by a state-sponsored actor - in other words, an unidentified foreign government.

Uber Drivers Appeal Lower Court's Decision Requiring Them to Arbitrate Wage Claims

A proposed class of drivers appealed the lower court's decision requiring them to arbitrate their wage claims on an individual basis against the ride-hailing company, Uber Technologies Inc. ("Uber" or the "Company"). Specifically, U.S. District Court Judge James S. Moody Jr. rejected all three arguments made by the drivers, that: (1) the arbitration clause was unconscionable; (2) the provision requiring drivers to split the cost of arbitration was unlawful; and (3) the forum selection provision was unlawful. Coming before the Eleventh Circuit Court of Appeals, the drivers have now argued that the Federal Arbitration Act ("FAA") bars the arbitration clause in the user agreements.

Class Definition in SunTrust ERISA Lawsuit

Between mid-2007 and early 2011, SunTrust Banks ("SunTrust" or the "Company") was accused of improperly handling its employees' 401(k) plan by purchasing its own common stock with the employees' retirement funds. Given the large stake in the subprime housing market (one of the main contributors to the Great Recession), SunTrust's employees filed a lawsuit in mid-2008, alleging that the Company's actions were imprudent and that it breached its Employment Retirement Income Security Act ("ERISA") fiduciary duties, which require SunTrust to act solely in the interests of the 401(k) plan members. The employees further claimed that SunTrust breached its fiduciary duties by failing to disclose how it was using the employees' retirement savings.

Judge Rules Uber's Arbitration Agreements Unenforceable

In light of the Consumer Financial Protection Bureau's proposal to ban arbitration clauses, U.S. District Judge Jed Rakoff recently denied Uber Technologies Inc.'s ("Uber" or the "Company") push for customers to arbitrate their claims with the Company.

"Natural" Labeling Cost $4.5M for Seventh Generation

The connotation of the word "natural" may be followed by images of flowers growing in a large field or a glacial waterfall rushing down a forest mountainside. So, naturally, consumers may be surprised to see synthetic ingredients such as Methylisothiazolinone or Benzisothiazolinone on their natural-labeled products. In fact, a class action lawsuit against Seventh Generation Inc. ("Seventh Generation" or the "Company") accused the Company of illegally misleading consumers by labeling its cleaning products as "natural," despite its use of synthetic preservatives.

Sirius XM Settles for $35M to End TCPA Claims

Many consumers would be thrilled to find they get a free trial subscription for Sirius XM's ("Sirius") satellite radio with their car purchase. But once the free trial is over, many of those same customers who did not continue their subscription become less than pleased to receive phone calls from Sirius encouraging them to re-subscribe. At least, that is what happened to Francis W. Hooker Jr. ("Hooker"), who filed a class action on behalf of himself and others similarly-situated against Sirius for allegedly violating the Telephone Consumer Protection Act ("TCPA").

Boeing Under Fire with a Putative Class Action

An investor, Tribhuwan Bisht, slapped Boeing with a putative class action lawsuit after being tipped off that Boeing had utilized dishonest accounting practices. Bischt caught wind of the practices through a media report documenting the alleged misbehavior. The tip came from Bloomberg Media's coverage of a possible SEC investigation into the 787 Dreamliner and 747 Jumbo's account.

Supreme Court Increases Employers' Fiduciary Responsibilities in 401(k) Plans

In 2007, a lawsuit was filed against energy giant Edison International, alleging that the company violated the Employees Retirement Income Securities Act of 1974 (ERISA) by offering employees higher-priced retail class mutual funds as retirement plan investments when what were basically the same funds could be had under lower-cost institutional shares. The class action against Edison was brought on behalf of about 20,000 employees and retirees.

Universal Agrees to Pay $26 Million to Class of Movie Industry Professionals

For decades Hollywood studios have found creative and controversial ways of dividing profits among industry professionals. One specific area where actors, writers and directors have taken issue is in the division of profits from home video revenue.