Justia Class Action Opinion Summaries

by
A class of end-payor purchasers sued (Clayton Act, 15 U.S.C. 26; Sherman Act, 15 U.S.C. 1) manufacturers and suppliers, alleging that they conspired to fix prices of automotive anti-vibration rubber parts. The district court certified a nationwide settlement class comprising persons and entities who indirectly purchased anti-vibration rubber parts that were manufactured or sold by the defendants, excluding persons or entities who purchased parts directly or for resale.Before the court entered final judgments approving the "indirect purchaser" settlement, Plaintiffs filed a separate suit against the same defendants, in the same court, seeking damages under the Clayton Act on behalf of a putative class of “direct purchasers” of anti-vibration rubber parts. They alleged that they purchased parts “from an entity (Firestone retail shop) of which one of the Defendants (Bridgestone) is the ultimate parent”; Firestone is not a defendant in either lawsuit. Bridgestone is a defendant in both. The court entered final judgments in the end-payor lawsuit, enjoining all settlement class members from “commencing, prosecuting, or continuing . . . any and all claims” arising out of or relating to the released claims.Defendants moved to enjoin Plaintiffs from litigating their direct-purchaser lawsuit. The district court denied the motion, citing “Illinois Brick.” Under federal antitrust law, a private plaintiff generally must be a “direct purchaser” to have suffered injury and have standing to sue a manufacturer or supplier. In Illinois Brick, the Supreme Court recognized an exception, holding that an “indirect purchaser” might have standing if it purchased from an intermediary that was “owned or controlled” by the ultimate seller.The Sixth Circuit reversed. Regardless of whether Illinois Brick applies to plaintiffs’ underlying claims, plaintiffs fit within the class definition under the plain meaning of the settlement agreements. Their suit is therefore barred. View "In re: Automotive Parts Antitrust Litigation" on Justia Law

by
The Court of Appeal affirmed the trial court's denial of plaintiff's motion to certify a class of employees of See's. Plaintiff alleges that See's did not provide required second meal breaks to shop employees who worked shifts longer than 10 hours.The court concluded that the trial court properly exercised its discretion in denying class certification where substantial evidence supports the trial court's conclusion that individual issues would predominate at trial. The court explained that the trial court carefully analyzed the evidence that plaintiff presented in support of her claim that she could establish liability through common proof. In light of evidence including time records showing that 24 percent of shifts longer than 10 hours actually included a second meal period, the trial court reasonably determined that at least some class members were offered a second meal period in accordance with the law. Therefore, the court explained that individual testimony would be necessary to show that See's consistently applied an unlawful practice. The court also concluded that the trial court did not abuse its discretion in deciding that plaintiff's trial plan was inadequate to manage individual issues. View "Salazar v. See's Candy Shops, Inc." on Justia Law

by
Plaintiffs filed a putative class action on behalf of themselves and “[a]ll consumers to whom [d]efendants, after November 17, 2013, provided an electronically printed receipt” listing the expiration date of the consumer’s credit or debit card in violation of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). Plaintiffs’ only alleged injury was exposure to an increased risk of identity theft and credit/debit card fraud. The complaint alleged that “there are, at a minimum, thousands (i.e., two thousand or more) of members that comprise the Class.” The trial court granted defendants’ motion to dismiss plaintiffs’ complaint based on its determination that plaintiffs could not satisfy Rule 4:32-1’s numerosity, predominance, or superiority requirements for class certification. The Appellate Division affirmed the dismissal as it pertained to the class action claims. The New Jersey Supreme Court reversed, finding plaintiffs sufficiently pled the class certification requirements to survive a motion to dismiss. The Supreme Court remanded the matter for class action discovery to be conducted pursuant to Rule 4:32-2(a), so that the trial court could determine whether to certify the class. View "Baskin v. P.C. Richard Son, LLC" on Justia Law

by
Edward Wrenn ("Edward") and David Wrenn ("David") petitioned the Alabama Supreme Court for a writ of mandamus to direct a circuit court to vacate an order requiring Edward and David to disclose their personal income-tax returns to plaintiff Jeffrey Wright, and to enter a protective order shielding the tax returns from production. Wright alleged he contracted with A-1 Exterminating Company, Inc. ("A-1 Exterminating"), for periodic termite treatments of his house. Over the course of several decades of treatments, Wright says, A-1 Exterminating used a "watered-down pesticide so weak that it may only kill ants and 'maybe' spiders." A-1 Exterminating allegedly concealed this practice from him. As a result, Wright contended his house was infected with and damaged by termites. Wright sued Edward, David, A-1 Exterminating, A-1 Insulating Company, Inc., and Wrenn Enterprises, Inc., alleging breach of warranty, breach of contract, negligence and wantonness. Wright sought to represent a class consisting of himself and other A-1 Exterminating customers allegedly harmed by defendants' actions. In support of his request to certify a class, Wright alleged that a "limited fund" existed that would support a class action under Rule 23(b)(1)(B), Ala. R. Civ. P. The Supreme Court held that for tax returns to be discoverable, they must be highly relevant, the litigant seeking their disclosure must show a compelling need for them, and their disclosure must be clearly required in the interests of justice, and that those standards have not been met in this case. Accordingly, the Court granted the petition and issued the writ to direct the trial court vacate its order requiring disclosure of the tax records. View "Ex parte Edward Wrenn & David Wrenn." on Justia Law

by
This case arose out of several days of street protests during the September 2017 riots that occurred following the acquittal of a former St. Louis police officer for the on-duty shooting of a black man. Plaintiffs are a protester who allegedly was maced, a person whose cell phone was seized and searched as he filmed arrests, and an observer who was allegedly exposed to chemical agents and arrested on September 17.The Amended Complaint alleged that the City (i) violated the First Amendment by retaliating against plaintiffs for engaging in protected expressive activity; (ii) violated the Fourth Amendment because its custom, practice, and failure to train and supervise caused unlawful seizures and the use of excessive force by police officers; and (iii) violated the Fourteenth Amendment when officers failed to warn before deploying chemical agents, failed to provide opportunities to disperse, and arbitrarily enforced two ordinances of the St. Louis Code. The City subsequently appealed the district court's order denying its motion to dissolve the preliminary injunction that included affirmative mandates pending a prompt trial on the merits of plaintiffs' claims for a permanent injunction, and the district court's order granting class certification.The Eighth Circuit affirmed the district court's denial of the City's motion to dissolve the temporary injunction and remanded with directions to vacate and dissolve the injunction no later than October 31, 2021, if it has not been replaced with a final order either granting a permanent injunction or denying injunctive relief. The court explained that, given the rigorous 42 U.S.C. 1983 burdens of proof, the evidence at the preliminary injunction hearing relating to the events of September 2017, while relevant and sufficient to persuade the court to grant a preliminary injunction pendente lite, will not be sufficient to warrant permanent injunctive relief imposing the same levels of indefinite federal court control over the City's law enforcement responsibilities.The court vacated the class certification order without prejudice to plaintiffs renewing their request after a final order has been entered on their claim for permanent injunctive relief, at which point the district court can better assess whether a Federal Rule of Civil Procedure 23(b)(2) class is appropriate and necessary to afford proper equitable relief. The court explained that, given the individualized inquiries plaintiffs' disparate claims require, the massive class action certified neither promotes the efficiency and economy underlying class actions nor pays sufficient heed to the federalism and separation of powers principles in Supreme Court and Eighth Circuit precedent. View "Ahmad v. City of St. Louis" on Justia Law

by
Guivini Gomez was a former employee of the Regents of the University of California (Regents) who sued the Regents, as the named plaintiff in a purported class action, claiming the Regents failed to pay her the required minimum wage for all hours she worked. However, she did not allege the Regents set her hourly wage below the minimum wage as established by California law. Instead, she contended the Regents’ time-keeping procedures of rounding hours and automatically deducting 30 minute meal breaks resulted in her not receiving the minimum wage for all hours she actually worked. In addition to claiming the Regents did not pay her the minimum wage, Gomez also sought penalties under the Private Attorneys General Act. The superior court sustained the Regents’ demurrer without leave to amend and entered judgment in their favor. Gomez appealed, but finding no reversible error in the trial court's decision, the Court of Appeal affirmed. View "Gomez v. Regents of the University of Cal." on Justia Law

by
A TD Ameritrade customer filed suit against the company and two other defendants for securities fraud in the District of New Jersey. The lead plaintiff was appointed for a group of investors who purchased and sold securities through TD Ameritrade between 2011 and 2014. Plaintiff alleges that TD Ameritrade's order routing practices violate the company's "duty of best execution" by systematically sending customer orders to trading venues that pay the company the most money, rather than to venues that provide the best outcome for customers.The Eighth Circuit reversed and remanded the district court's certification of a class under Federal Rule of Civil Procedure 23(b)(3), concluding that even with the proposed algorithm, determining economic loss in this case entails individualized inquiry inconsistent with the predominance requirement of Rule 23. Therefore, the prevalence of these individualized inquiries precludes class certification under Rule 23(b)(3). Furthermore, because economic loss cannot be presumed, ascertaining which class members have sustained injury means individual issues predominate over common ones. Finally, the court concluded that, by defining the class to include only those customers who were harmed by TD Ameritrade's alleged failure to seek best execution, the district court certified a class in which membership depends upon having a valid claim on the merits. Such a class is impermissible because it allows putative class members to seek a remedy but not be bound by an adverse judgment, and fail-safe classes are also unmanageable. View "Ford v. TD Ameritrade Holding Corp." on Justia Law

by
The Supreme Court affirmed the judgment of the circuit granting summary judgment for Defendants on all claims contained in Plaintiffs' second amended complaint seeking class certification, relief in mandamus, lost wages, and other monetary damages against six State Offices and their respective officeholders, holding that summary judgment was proper.In 2014, the Legislature amended W. Va. Code 6-7-1, changing the pay cycle for state employees from a semi-monthly to a bi-weekly basis. Plaintiffs, state employees who were paid one pay cycle in arrears pursuant to the provisions of section 6-7-1, claimed that when the statue was amended the result was a taking of five days of salary from every state employee in violation of W. Va. Const. Art. III, 10 or, alternatively, the imposition of a second arrearage beyond what is authorized by the statute. The circuit court granted summary judgment for Plaintiffs. The Supreme Court affirmed, holding that summary judgment was proper. View "Wilkinson v. W. Va. State Office of the Governor" on Justia Law

by
The three questions before the Oklahoma Supreme Court in this case were: (1) whether Oklahoma's class action attorney fee statute, 12 O.S.Supp.2017, section 2023(G), allowed for the percentage-of-common-fund method in calculating attorney fees; (2) whether the district court abused its discretion in awarding 40% of the common fund to class counsel, equaling over $19 million in attorney fees and a $2,500 hourly rate; and (3) whether the district court abused its discretion in awarding a $400,000 incentive award to the named class representatives. Objector Daniel McClure appealed a $19 million attorney fee award and a $400,000 incentive award in a class action suit. The district court calculated the attorney fee amount using the percentage-of-common-fund method pursuant to a contingency fee agreement between the class counsel and class representatives. The Court of Civil Appeals reversed the district court's awards, holding: (1) an attorney fee request in a common fund case was subject to the lodestar method; (2) the district court failed to properly calculate the attorney fee award under the lodestar method; and (3) the district court abused its discretion in awarding the incentive award to the class representatives. The Supreme Court held that although Oklahoma's class action attorney fee statute gave courts flexibility and discretion in calculating fee awards under the percentage-of-common-fund method, the district court abused its discretion when it awarded an unreasonable attorney fee award and an incentive award not supported by evidence. View "Strack v. Continental Resources" on Justia Law

by
Plaintiffs filed an antitrust class action against Actelion, alleging that Actelion extended its patent monopoly for its branded drug Tracleer — a drug to treat pulmonary artery hypertension — beyond the patent's expiration date. Plaintiffs claimed that Actelion did so "through illegitimate means" with the intent of precluding competition from generic drug manufacturers and charging supracompetitive prices for Tracleer, in violation of federal and state antitrust laws. Plaintiffs further claimed that, as a result of Actelion's illegal monopolization, they were injured by having to pay supracompetitive prices for Tracleer for some three years after Actelion's patent for Tracleer expired.The Fourth Circuit vacated the district court's limitations ruling and concluded that plaintiffs' antitrust claims did not accrue until they were injured by paying supracompetitive prices for Tracleer after the patent expired in November 2015. Therefore, plaintiffs action commenced in November 2018 was timely. The court also concluded that, even if the February 2014 date, when Actelion entered into agreements settling the generic manufacturers' antitrust claims, marked the last anticompetitive act, damages could not then have been recovered by plaintiffs because their claims would not have been ripe for judicial resolution in view of the speculative nature of future conduct that might have thereafter occurred. Therefore, limitations would not begin to run until the claims became ripe. In any event, the court explained that because plaintiffs alleged that Actelion continued with anticompetitive acts after November 2015 in selling Tracleer at supracompetitive prices, new limitations periods began to run from each sale that caused plaintiffs damages. The court largely agreed with the district court's standing, but concluded that the allegations asserting violations of the laws in states where plaintiffs did not purchase Tracleer may yet be considered when determining whether plaintiffs can, based on a Rule 23 analysis, represent class members who purchased Tracleer in those States, and if they can, then whether plaintiffs can include those claims. View "Mayor and City Council of Baltimore v. Actelion Pharmaceuticals Ltd." on Justia Law