Justia Class Action Opinion Summaries

A class of noncitizens with final removal orders challenged new Department of Homeland Security (DHS) policies issued in March and July 2025, which authorized their removal to “third countries”—countries neither designated in their removal orders nor identified in writing during prior proceedings. The plaintiffs alleged that DHS’s policy failed to provide effective notice or a meaningful opportunity to contest removal to these third countries based on reasonable fear of persecution or torture. The policies also relied on diplomatic assurances from receiving countries, sometimes removing individuals without further protective procedures.The United States District Court for the District of Massachusetts issued a temporary restraining order, granted class certification, and later a preliminary injunction requiring DHS to provide written notice and an opportunity for class members to assert fear-based claims before any third-country removal. After DHS appealed, the U.S. Supreme Court granted a stay pending appellate review. On remand, the district court dissolved the preliminary injunction and issued a final judgment, concluding that DHS’s guidance violated statutory requirements for sequencing removal destinations, and failed to provide notice and hearing for fear-based claims, including those under the Convention Against Torture (CAT). The court ordered declaratory relief and vacated the guidance as unlawful under the Administrative Procedure Act (APA).On appeal, the United States Court of Appeals for the First Circuit held that the plaintiffs lacked Article III standing on the “sequencing” claim and vacated the related declarations. However, the court affirmed the district court’s judgment that DHS must provide effective notice and a meaningful opportunity to contest removal to a third country based on fear-based claims, and upheld the vacatur of DHS guidance as unlawful under the APA. The court rejected DHS’s jurisdictional and remedy arguments, clarifying that declaratory and vacatur relief were permissible and not barred by statute. View "D.V.D. v. Department of Homeland Security" on Justia Law

Several individuals filed a putative class action against two related corporate defendants, alleging that the defendants’ website terms and conditions violated a California statute known as section 1670.8, or the “Yelp Law.” The plaintiffs argued that certain provisions in the website’s terms—specifically, language related to trademark use and website access—prohibited or penalized negative statements about the defendants, their employees, or their goods and services. The plaintiffs claimed these provisions constituted unlawful non-disparagement clauses in consumer contracts.The Superior Court of Los Angeles County reviewed the case and sustained the defendants’ demurrer to the consolidated class action complaint, first with leave to amend and then, after an amended complaint was filed, without leave to amend. The court found that the challenged terms were limited to intellectual property protections and did not restrict consumer speech. It also determined that the statute did not create a private right of action for merely including a violative provision unless there was a threat to enforce that provision or penalize speech. The court concluded that neither the trademark nor the termination provisions in the defendants’ terms constituted actionable violations of section 1670.8 and entered judgment dismissing the case.Upon appeal, the Court of Appeal of the State of California, Second Appellate District, Division Five, affirmed the trial court’s judgment. The appellate court held that the website’s trademark language did not waive consumers’ rights to make critical statements about the defendants, and the website access termination clause was not a restriction on consumer speech. The court concluded that plaintiffs had not stated a cause of action under section 1670.8 and confirmed that the inclusion of these provisions, without a threat or attempt to enforce against protected speech, does not violate the statute. View "Scott v. Ulta Beauty, Inc." on Justia Law

Two inmates who identify as transgender women brought a class action against the Oregon Department of Corrections and related officials, alleging Eighth Amendment violations for purportedly exposing transgender women inmates to substantial risk of harm by housing them in men’s prisons. The plaintiffs sought a preliminary mandatory injunction on behalf of a class of all current and future transgender women in Oregon prison facilities, requesting that they be presumptively assigned to the state’s women’s prison and given additional protections.A magistrate judge in the United States District Court for the District of Oregon granted the motion for a preliminary injunction and provisionally certified the class. The injunction required Oregon to presumptively assign transgender women inmates to the women’s prison unless a specific security justification was documented, along with other measures for safety and privacy. Defendants moved for reconsideration, and the district court amended but largely maintained the injunction. Defendants appealed and obtained a stay of the injunction pending appeal.The United States Court of Appeals for the Ninth Circuit reviewed the district court’s order, applying an abuse-of-discretion standard to the injunction and de novo review to underlying legal issues. The Ninth Circuit found the district court committed clear error by basing its injunction on an unsupported finding that the defendants employed a default presumption of housing transgender women in men’s prisons. The appellate court determined that the record showed individualized assessments for inmate placement and that the plaintiffs failed to demonstrate a likelihood of success on the merits, irreparable harm, or commonality for class certification. The Ninth Circuit vacated the preliminary injunction, ordered the class to be decertified, and remanded the case. The mandate was issued forthwith. View "S.D. V. REESE" on Justia Law

A Delaware corporation specializing in data analytics software was acquired in December 2023 through a merger valued at $48.25 per share, totaling approximately $4.4 billion. The merger was orchestrated by funds affiliated with Insight Venture Management, LLC and Clearlake Capital Group, L.P. Prior to the merger, the company’s controlling stockholder held significant voting power through legacy Class B shares. The board formed a special committee to oversee the sales process, which involved multiple bidders and was influenced by disappointing financial results and market conditions. Ultimately, the merger was approved by a significant majority of stockholders, with the controlling stockholder not receiving any special consideration.The plaintiffs, representing a putative class, initiated litigation in the Delaware Court of Chancery, alleging breaches of fiduciary duty against the board, the controlling stockholder, the chief legal officer, and a claim for aiding and abetting against Insight Venture Management, LLC. The defendants moved to dismiss under Rule 12(b)(6), arguing that the merger was approved by a fully informed, uncoerced stockholder vote, invoking the protections of Corwin v. KKR Financial Holdings LLC, 125 A.3d 304 (Del. 2015).The Court of Chancery granted the motion to dismiss. It held that none of the alleged disclosure deficiencies raised by the plaintiffs were material, and the stockholder vote was both fully informed and uncoerced. Under Corwin, this vote cleansed the transaction, and the business judgment rule insulated the merger from attacks other than waste, which was not claimed. As a result, all counts—including breach of fiduciary duty and aiding and abetting—were dismissed. View "Wisconsin Laborers' Pension Fund v. Joshi" on Justia Law

Insurance companies paid claims to policyholders whose Hyundai or Kia vehicles were stolen or damaged due to a vulnerability stemming from the lack of an engine immobilizer in certain models from 2011 to 2022. These companies, as subrogees, filed a nationwide class action alleging that the Korean manufacturers, Hyundai Motor Company and Kia Corporation, defectively designed these vehicles, making them prone to theft. The complaint also asserted claims for breach of warranties, violations of consumer protection statutes, fraud, unjust enrichment, and negligent failure to warn.Multiple lawsuits arising from this issue were consolidated into multidistrict litigation before the United States District Court for the Central District of California. The district court dismissed the claims against the Korean entities for lack of personal jurisdiction, concluding that the evidence did not establish intentional targeting of California by the manufacturers and that the claims did not arise from California-related conduct. The district court also denied leave to amend and jurisdictional discovery, entering final judgment under Rule 54(b) dismissing the Korean entities from the subrogation track.On appeal, the United States Court of Appeals for the Ninth Circuit reviewed the district court’s dismissal de novo. The Ninth Circuit held that the Korean manufacturers were subject to specific personal jurisdiction in California. The panel found that the manufacturers purposefully directed their activities toward California by sending thousands of shipments of vehicles through California ports and designing vehicles specifically for the U.S. market. The court further held that the claims arose out of these California contacts, as the injuries were caused by vehicles shipped to California. The panel reversed the district court’s dismissal and remanded the case for further proceedings, leaving the question of reasonableness of jurisdiction for the district court to resolve. View "IN RE: KIA HYUNDAI VEHICLE THEFT MARKETING, SALES PRACTICES, AND PRODUCTS LIABILITY LITIGATION" on Justia Law

The case arose after the District of Columbia’s Child and Family Services Agency, facing a large budget shortfall in 2010, laid off 115 employees as part of a reduction in force. This included eliminating two support positions and creating a new, hybrid role with fewer positions and different qualification requirements. The agency also terminated additional employees across various divisions based on management assessments. A group of former employees, disproportionately Black, filed a class action lawsuit, alleging that these employment practices had a disparate racial impact in violation of Title VII and D.C. law.The United States District Court for the District of Columbia initially granted summary judgment to the District, finding that the plaintiffs failed to identify specific employment practices as required for a disparate impact claim. On appeal, the United States Court of Appeals for the District of Columbia Circuit revived the disparate impact claims, concluding that the plaintiffs had sufficiently challenged two discrete employment practices. On remand, the district court found the plaintiffs had established a prima facie case of disparate impact but again granted summary judgment to the District. The court found the agency’s employment practices were consistent with business necessity and that the plaintiffs failed to propose an adequate alternative practice with less disparate impact.The United States Court of Appeals for the District of Columbia Circuit reviewed the district court’s grant of summary judgment de novo. The court held that, under Title VII, an employer satisfies the business necessity defense if the challenged employment practice reasonably fits with its legitimate interests. Applying this standard, the court found both disputed practices fit legitimate governmental interests in reducing costs while maintaining services. Because the plaintiffs did not identify an equally effective alternative practice with less disparate impact, the appellate court affirmed summary judgment for the District. View "Davis v. DC" on Justia Law

Three individuals employed as customer service agents for a ground services provider and an airline at Denver International Airport brought a class action lawsuit asserting violations of Colorado’s wage laws. Their complaint alleged that the employers improperly deducted time for lunch breaks not taken, forced work during rest breaks, failed to pay overtime, and withheld commissions. Each employee’s contract contained a mandatory arbitration clause, which the employers sought to enforce under the Federal Arbitration Act (FAA) and Colorado law. The employees responded that, as transportation workers, their contracts were exempt from the FAA, and further argued that Colorado law voided such arbitration agreements for wage claims.The United States District Court for the District of Colorado denied the motions to compel arbitration. After an evidentiary hearing, the district court focused narrowly on the specific duties of the three employees, rather than considering the work typically performed by the broader class of customer service agents. It found that the employees “actually and routinely” handled passenger luggage and played a “gatekeeping” role with respect to cargo. On this basis, the court concluded they were transportation workers exempt from the FAA. The district court did not address the request to compel arbitration under Colorado law.On appeal, the United States Court of Appeals for the Tenth Circuit held that the district court erred by defining the relevant class of workers too narrowly—focusing only on the specific employees, rather than the typical duties of the class as a whole, as required by Supreme Court precedent (including Southwest Airlines Co. v. Saxon). The Tenth Circuit reversed the district court’s order denying the motions to compel arbitration and remanded for further proceedings to properly determine the attributes of the class of workers under the correct legal standard. View "Joyner v. Frontier Airlines" on Justia Law

Plaintiffs, who had donated funds to the Church of Jesus Christ of Latter-day Saints, alleged that the Church and its investment subsidiary, Ensign Peak Advisors, Inc., fraudulently induced donations by concealing the true use and accumulation of donated funds. They claimed that the Church misrepresented that tithing would be used for charitable and religious purposes, when instead large portions were invested and used for commercial ventures, such as the development of the City Creek Mall. A key event in the case was the publication of a whistleblower report in December 2019, which was widely reported in national and local media and described how the Church managed and concealed a large investment portfolio. The Church publicly responded, and three other lawsuits were filed by different donors based on similar allegations.After actions were filed in several federal district courts, the cases were consolidated in the United States District Court for the District of Utah. Plaintiffs brought claims for breach of fiduciary duty, fraud, fraudulent concealment, fraudulent misrepresentation, and unjust enrichment, seeking to represent a nationwide class of post-1997 donors. The district court dismissed the consolidated complaint with prejudice, ruling that the claims were untimely under Utah’s three-year statute of limitations for fraud. The court found that the widespread news coverage of the whistleblower report meant that plaintiffs, exercising reasonable diligence, should have discovered the alleged fraud more than three years before filing suit.On appeal, the United States Court of Appeals for the Tenth Circuit affirmed the district court’s dismissal. The Tenth Circuit held that the plaintiffs’ claims were time-barred because the whistleblower report and related media coverage provided sufficient public notice to trigger the statute of limitations, and that reasonable diligence would have led to earlier discovery. The court also found no error in the district court’s procedural rulings and denied the request for leave to amend. View "In re: Church of Jesus Christ of Latter-Day Saints" on Justia Law

Two individuals, who were patients of a regional healthcare provider, filed a class action lawsuit alleging that the provider’s website used tracking software to intercept and share users’ personally identifiable health information with a third-party technology company. This software, known as Meta Pixel, collected data such as IP addresses, device identifiers, and details about users’ interactions with the website, transmitting this information to the technology company, which then used it for commercial purposes, including targeted advertising. The healthcare provider also received data analysis from the technology company and was paid for allowing access to this information. The plaintiffs claimed they did not consent to this sharing of their health information.After the claims against the technology company were transferred to another district, the U.S. District Court for the Eastern District of Pennsylvania reviewed several amended complaints against the healthcare provider. The District Court dismissed the plaintiffs’ second amended complaint with prejudice, concluding that the allegations did not sufficiently specify what personal health information was actually shared and that further amendment would be futile. When the plaintiffs sought reconsideration and submitted a proposed third amended complaint, the District Court denied the motion, citing undue delay because the plaintiffs could have included the new details earlier and had been clearly informed of the deficiencies.The United States Court of Appeals for the Third Circuit reviewed the case and affirmed both orders of the District Court. The Third Circuit held that, although plaintiffs had Article III standing, the District Court did not abuse its discretion in dismissing the second amended complaint with prejudice or in denying the motion for reconsideration. The appellate court concluded that plaintiffs had sufficient notice of the complaint’s deficiencies after oral argument and did not act promptly to address them, justifying denial of further amendment. View "Santoro v. Tower Health" on Justia Law

A family group brought claims in Oklahoma state court against an energy company, alleging underpayment of oil and gas royalties over several decades. These claims overlapped with those in a separate class action brought by another party against the company and its related entities, also concerning underpayment of royalties. The class action was removed to federal court, where a settlement was reached and approved by the United States District Court for the Eastern District of Oklahoma. The settlement covered claims for a defined period, and included a permanent injunction barring class members from pursuing similar claims. The family did not opt out of the settlement and received compensation under its terms.Later, the energy company sought summary judgment in the family’s original state case, arguing that the federal settlement released the company from liability for claims during the covered period. When summary judgment was denied, the company returned to the federal district court, seeking enforcement of the settlement’s injunction against further pursuit of those claims by the family in state court. The federal court declined to issue a new injunction but found that the family’s ongoing litigation of released claims violated the original injunction. The court ordered the family to either show cause for their violation or agree to abide by the injunction and dismiss the released claims. The family appealed this order to the United States Court of Appeals for the Tenth Circuit.The Tenth Circuit determined that it lacked appellate jurisdiction over the order. The court held that a post-judgment civil contempt or enforcement order is not final and appealable unless the district court both finds contempt and imposes a specific, unavoidable sanction. Because the district court’s order did neither, and because no alternative grounds for appellate jurisdiction applied, the Tenth Circuit dismissed the appeal. View "Fischer v. XTO Energy" on Justia Law