Justia Class Action Opinion Summaries

Plaintiffs, business entities owning recovery rights assigned by health insurers and other third-party Medicare payors, alleged that Defendants, including a drug manufacturer, a specialty pharmacy, and healthcare nonprofits, colluded to inflate the price and quantity of the drug Xenazine. This alleged scheme purportedly violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and various state laws, causing the Assignors to reimburse inflated Xenazine prescriptions at supra-competitive prices.The United States District Court for the Eastern District of Virginia dismissed the class-action complaint with prejudice, concluding that Plaintiffs failed to adequately allege that Defendants’ conduct proximately caused their injuries. The court emphasized that RICO’s proximate-causation requirement focuses on the directness of the harm, not its foreseeability. The court found the alleged causal chain too attenuated, involving numerous independent actors like physicians and pharmacists, and dismissed the state-law claims for similar reasons.The United States Court of Appeals for the Fourth Circuit affirmed the district court’s dismissal of the federal RICO claims, agreeing that Plaintiffs failed to establish proximate causation. The court noted that the alleged scheme had more direct victims, such as distributors and wholesalers, and that the volume of Xenazine prescriptions depended on the independent decisions of doctors. The court also affirmed the dismissal of the state-law consumer-protection and unjust-enrichment claims, finding them insufficiently pleaded.The Fourth Circuit reversed the district court’s conclusion that Plaintiffs had standing to bring claims on behalf of unidentified assignors, remanding those claims for dismissal without prejudice. The court upheld the district court’s denial of post-judgment relief and leave to amend the complaint, concluding that further amendment would be futile. View "MSP Recovery Claims, Series LLC v. Lundbeck LLC" on Justia Law

A cyberattack on California Pizza Kitchen, Inc. (CPK) in September 2021 compromised the personal information of over 100,000 former and current employees. This led to multiple class action lawsuits against CPK, alleging negligence and other claims. The consolidated plaintiffs reached a settlement with CPK, offering cash payments and credit monitoring services to class members, with CPK required to make payments only to those who submitted valid claims. The settlement's monetary value was estimated at around $950,000, while the attorneys sought $800,000 in fees.The United States District Court for the Central District of California approved the settlement but reserved judgment on the attorneys' fees until after the claims process concluded. The consolidated plaintiffs reported a final claims rate of 1.8%, with the maximum monetary value of the claims being around $950,000. Despite expressing concerns about the scope of attorneys' fees, the district court ultimately awarded the full $800,000 in fees and costs.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court's approval of the class settlement, finding that the district court had properly applied the heightened standard to review the settlement for collusion and had not abused its discretion in finding the settlement fair, reasonable, and adequate. However, the Ninth Circuit reversed the fee award, noting that the district court had not adequately assessed the actual value of the settlement and compared it to the fees requested. The case was remanded for the district court to determine the settlement's actual value to class members and award reasonable and proportionate attorneys' fees. View "IN RE: CALIFORNIA PIZZA KITCHEN DATA BREACH LITIGATION" on Justia Law

Lillian Vogt purchased a used van from a dealer and later discovered that the dealer had bought the van from a representative of Progressive Casualty Insurance Company. The van had been classified as a total loss by Progressive but was sold with a clean title instead of a salvage title. Vogt believed that Progressive had mistitled the van and filed claims of fraud, negligent misrepresentation, negligence, and negligence per se against the company. She also sought to certify two classes of individuals who purchased and owned vehicles that Progressive allegedly mistitled in the same manner.The United States District Court for the Eastern District of Missouri denied class certification for both classes. The court concluded that issues common to the putative class members would not predominate over member-specific issues of reliance or causation. Vogt was granted leave to appeal this decision.The United States Court of Appeals for the Eighth Circuit reviewed the district court’s denial of class certification for abuse of discretion. The appellate court agreed with the district court, affirming its decision. The court held that the fraud and negligent misrepresentation claims required proof of reliance, which was a member-specific question unsuitable for class treatment. Similarly, the negligence and negligence per se claims required proof of causation, which also entailed proof of reliance. The court concluded that individualized inquiries into each putative class member’s reasons for purchasing their vehicles would be necessary, making class certification inappropriate. The decision of the district court was affirmed. View "Vogt v. Progressive Casualty Insurance Company" on Justia Law

Daniel Garcia purchased cloth facemasks from several retail stores in late 2020. The retailers collected sales tax on these masks, which Garcia believed to be nontaxable. Garcia filed a class action complaint in the Court of Common Pleas of Allegheny County against the retailers, alleging that they collected sales tax on items they knew or should have known were nontaxable, violating the Unfair Trade Practices and Consumer Protection Law (UTPCPL).The Court of Common Pleas overruled the retailers' preliminary objections, which argued that the complaint was legally insufficient. The Superior Court granted the retailers permission to appeal and reversed the trial court's order. The Superior Court concluded that the collection of sales tax did not occur "in the conduct of any trade or commerce" as contemplated by the UTPCPL. The court reasoned that the collection of sales tax is a statutory obligation distinct from the conduct of trade or commerce and that merchants act as agents of the Commonwealth when collecting sales tax.The Supreme Court of Pennsylvania reviewed the case and affirmed the Superior Court's decision. The court held that a merchant’s collection of sales tax does not occur "in the conduct of any trade or commerce" under the UTPCPL. The court emphasized that the collection of sales tax is a statutory obligation imposed on merchants, who act as agents of the Commonwealth, and is distinct from their commercial activities. The court also noted that the Pennsylvania Code requires a clear separation between the advertising of a product’s price and the sales tax due, further supporting the conclusion that tax collection is not part of trade or commerce. View "Garcia v. Foot Locker" on Justia Law

A debt buyer, Velocity Investments, LLC, purchased consumer debt from Citibank, N.A., which had been charged off as a loss. Velocity sent a written communication to David Chai regarding the debt but failed to include the required notice of Chai’s right to request records, as mandated by the Fair Debt Buying Practices Act. Chai filed a lawsuit individually and on behalf of a putative class, seeking statutory damages under the Act, while disclaiming any concrete injury from the violation.The Santa Clara County Superior Court certified a class of individuals who received similar communications from Velocity. Velocity moved for judgment on the pleadings, arguing that Chai lacked standing because he admitted to no concrete injury. The trial court granted the motion, ruling that the Act requires a consumer to have suffered actual damage to sue. Chai appealed the decision.The California Court of Appeal, Sixth Appellate District, reviewed the case. The court held that the Fair Debt Buying Practices Act does not condition a consumer’s claim for statutory damages on the existence of actual damages. The court found that the Act allows consumers to seek statutory damages for violations of their rights under the Act, regardless of whether they suffered actual damages. The court reversed the trial court’s judgment, allowing Chai to pursue his claim for statutory damages. View "Chai v. Velocity Investments, LLC" on Justia Law

The Coachella Valley Water District (Water District) appealed a judgment finding that the rates it charged for Coachella Canal water violated Article XIII C of the California Constitution. The Water District argued that the rates were lawful and that no refund remedy was authorized. The court rejected both arguments, finding the rates unlawful and that a refund remedy was constitutionally mandated.In the lower court, the Superior Court of Riverside County ruled that the Water District's Canal Water rates and the Irrigation Water Availability Assessment (IWAA) violated Proposition 218. The court found that the Water District's historical priority argument was not persuasive and that the Water District had made no attempt to show that the rates complied with the California Constitution. The court deferred ruling on remedies and later awarded Class 2 customers approximately $17.5 million in refunds and interest for invalid charges from March 2018 through June 2022.The California Court of Appeal, Fourth Appellate District, Division Two, reviewed the case. The court held that Howard Jarvis Taxpayers Association (Howard Jarvis) had standing to challenge the Class 2 rates because domestic customers paid the rates indirectly. The court found that the Class 2 rates were taxes under Article XIII C and did not fall under any exceptions. The court rejected the Water District's arguments that the rates were justified based on historical priority and that they were expenditures of funds. The court also found that the IWAA was an assessment under Proposition 218 and that the Water District failed to show it was proportional to the benefits conferred on the properties.The court affirmed the lower court's ruling on liability and the amount of refund relief awarded. However, the court found that the injunction in the judgment was overbroad and modified the judgment to strike the paragraph enjoining the Water District from imposing any future Canal Water rates and charges that did not comply with Proposition 218. As modified, the judgment was affirmed, and Howard Jarvis was awarded its costs on appeal. View "Howard Jarvis Taxpayers Assn. v. Coachella Valley Water Dist." on Justia Law

John Doe filed a putative class action against SSM Health Care Corporation in Missouri state court, alleging that SSM shared private health information with third-party marketing services without authorization, violating Missouri law. Doe claimed that SSM's MyChart patient portal transmitted personal health data to third-party websites like Facebook. The lawsuit included nine state law claims, such as violations of the Missouri Wiretap Statute and the Computer Tampering Act.SSM removed the case to federal court, citing the federal officer removal statute and the Class Action Fairness Act (CAFA). Doe moved to remand the case to state court. The United States District Court for the Eastern District of Missouri rejected SSM's arguments, ruling that SSM was not "acting under" a federal officer and that Doe's proposed class was limited to Missouri citizens, thus lacking the minimal diversity required under CAFA. The district court remanded the case to state court.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo. The court affirmed the district court's decision, holding that SSM did not meet the criteria for federal officer removal because it was not acting under the direction of a federal officer. The court also held that the proposed class was limited to Missouri citizens, which destroyed the minimal diversity necessary for CAFA jurisdiction. Consequently, the Eighth Circuit affirmed the district court's remand order. View "Doe v. SSM Health Care Corporation" on Justia Law

Rebecca Petta filed a class-action complaint in the circuit court of Champaign County against Christie Business Holdings Company, P.C., doing business as Christie Clinic. Petta alleged that Christie negligently failed to prevent unauthorized access to its business email account, which potentially exposed patients' private personal data, including Social Security numbers and health insurance information. Christie moved to dismiss the complaint, and the trial court granted the motion.The trial court found that Petta had standing due to an inference of injury from unauthorized use of her phone number and city in a loan application. However, the court dismissed the complaint for failing to state a valid claim under existing law and due to the economic loss doctrine. The appellate court affirmed the dismissal but on the grounds that Petta lacked standing, as the alleged increased risk of identity theft was too speculative and the unauthorized loan application did not involve her private personal data.The Supreme Court of Illinois reviewed the case and agreed with the appellate court. The court held that Petta's allegations of increased risk of harm were insufficient to confer standing in a complaint seeking monetary damages. The court also found that the unauthorized loan application, which used only Petta's publicly available phone number and city, was not fairly traceable to Christie's alleged misconduct. Consequently, the court affirmed the appellate court's judgment, concluding that Petta lacked standing to bring her claims. View "Petta v. Christie Business Holding Co., P.C." on Justia Law

The plaintiffs, Carmen Mercado and Jorge Lopez, filed a class action complaint against their former employer, S&C Electric Company, in the circuit court of Cook County. They alleged that S&C underpaid their overtime wages by excluding certain performance bonuses from the "regular rate" of pay used to calculate overtime. S&C argued that the bonuses were statutorily excluded from the regular rate of pay and that they had made adjusted payments to cover any alleged unpaid wages.The circuit court granted S&C's motion to dismiss the complaint with prejudice, finding that the adjusted payments satisfied the alleged underpayment. The appellate court affirmed the circuit court's judgment, agreeing that the bonuses were properly excluded from the regular rate of pay and that the adjusted payments fully compensated the plaintiffs.The Supreme Court of Illinois reviewed the case and reversed the lower courts' judgments. The court held that the performance bonuses should have been included in the regular rate of pay for calculating overtime wages. The court found that the bonuses were not gifts but compensation for services performed, and thus did not fall under the exclusion in section 210.410(a) of the regulations. Additionally, the court held that the adjusted payments did not fully compensate the plaintiffs for their statutory damages, including treble damages, monthly interest, and attorney fees, as required by section 12(a) of the Minimum Wage Law.The Supreme Court of Illinois remanded the case to the circuit court for further proceedings consistent with its opinion. View "Mercado v. S&C Electric Co." on Justia Law

Phillip and Sara Alig, along with Daniel and Roxanne Shea, filed a class action lawsuit against Quicken Loans, Inc. (now Rocket Mortgage, LLC) and Title Source, Inc. (now Amrock, Inc.). They alleged that during the refinancing of their home mortgage loans, they paid for appraisals that were not independent because the defendants had provided appraisers with the homeowners' estimates of their homes' value. They claimed this made the appraisals worthless and asserted statutory, breach of contract, and conspiracy claims.The United States District Court for the Northern District of West Virginia certified a class of West Virginia citizens who refinanced mortgage loans with Quicken and received appraisals that included an estimate of the property's value. The court granted summary judgment to the plaintiffs, awarding over $10.6 million in damages. The court found that the plaintiffs had established a conspiracy between the defendants.The United States Court of Appeals for the Fourth Circuit affirmed the class certification and summary judgment on the statutory and conspiracy claims but vacated and remanded the breach of contract claim. The Supreme Court vacated the Fourth Circuit's judgment and remanded the case for reconsideration in light of TransUnion LLC v. Ramirez, which emphasized that every class member must have Article III standing to recover damages.On remand, the district court reinstated its original judgment, stating that TransUnion did not affect the class's standing. However, the Fourth Circuit concluded that the plaintiffs failed to establish that class members suffered concrete harm from the defendants' actions. The court reversed the district court's judgment certifying the class and awarding damages, affirming the judgment on the named plaintiffs' statutory and conspiracy claims, and vacating the judgment on the breach of contract claim, remanding it for further proceedings. View "Alig v. Rocket Mortgage, LLC" on Justia Law