Justia Class Action Opinion Summaries

Articles Posted in US Court of Appeals for the Tenth Circuit
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Plaintiff Sanofi-Aventis U.S., LLC (“Sanofi”) sued Defendants Mylan, Inc. and Mylan Specialty, LP (collectively “Mylan”) under Section 2 of the Sherman Antitrust Act. Sanofi, one of the world’s largest pharmaceutical companies, alleged Mylan, the distributor of EpiPen, monopolized the epinephrine auto-injector market effectively and illegally foreclosing Auvi-Q, Sanofi’s innovative epinephrine auto-injector, from the market. The parties cross-moved for summary judgment. The district court, holding no triable issue of exclusionary conduct, granted Mylan’s motion for summary judgment. After careful consideration, the Tenth Circuit agreed and affirmed the district court. View "Sanofi-Aventis U.S. v. Mylan, et al." on Justia Law

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This appeal stemmed from mass litigation between thousands of corn producers and an agricultural company (Syngenta). On one track, corn producers filed individual suits against Syngenta; on the second, other corn producers sued through class actions. The appellants were some of the corn producers who took the first track, filing individual actions. (the “Kellogg farmers.”) The Kellogg farmers alleged that their former attorneys had failed to disclose the benefits of participating as class members, resulting in excessive legal fees and exclusion from class proceedings. These allegations led the Kellogg farmers to sue the attorneys who had provided representation or otherwise assisted in these cases. The suit against the attorneys included claims of common-law fraud, violation of the Racketeer Influenced and Corrupt Practices Act (RICO) and Minnesota’s consumer-protection statutes, and breach of fiduciary duty. While this suit was pending in district court, Syngenta settled the class actions and thousands of individual suits, including those brought by the Kellogg farmers. The settlement led to the creation of two pools of payment by Syngenta: one pool for a newly created class consisting of all claimants, the other pool for those claimants’ attorneys. For this settlement, the district court allowed the Kellogg farmers to participate in the new class and to recover on an equal basis with all other claimants. The settlement eliminated any economic injury to the Kellogg farmers, so the district court dismissed the RICO and common-law fraud claims. The court not only dismissed these claims but also assessed monetary sanctions against the Kellogg farmers. The farmers appealed certain district court decisions, but finding that there was no reversible error or that it lacked jurisdiction to review certain decisions, the Tenth Circuit Court of Appeals affirmed. View "Kellogg, et al. v. Watts Guerra, et al." on Justia Law

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A group of pet owners brought a class action against Champion Petfoods USA, Inc., alleging representations on Champion’s packaging on its Acana and Orijen brands of dog food were false and misleading. Champion’s dog food packaging contained a number of claims about the product, advertising the food as “Biologically Appropriate,” “Trusted Everywhere,” using “Fresh and Regional Ingredients,” and containing “Ingredients We Love [From] People We Trust.” The district court dismissed the claims as either unactionable puffery or overly subjective and therefore not materially misleading to a reasonable consumer. To this, the Tenth Circuit Court of Appeals agreed, finding Plaintiffs’ claims failed to allege materially false or misleading statements on Champion’s packaging because the phrases failed to deceive or mislead reasonable consumers on any material fact. View "Renfro, et al. v. Champion Petfoods USA, et al." on Justia Law

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Alexander Hood, a Colorado resident, appealed the dismissal for lack of personal jurisdiction of his putative class-action claim against American Auto Care (AAC) in the United States District Court for the District of Colorado. AAC, a Florida limited liability company whose sole office was in Florida, sold vehicle service contracts that provided vehicle owners with extended warranties after the manufacturer’s warranty expires. Hood’s complaint alleged AAC violated the Telephone Consumer Protection Act (TCPA) and invaded Hood’s and the putative class members’ privacy by directing unwanted automated calls to their cell phones without consent. Although he was then residing in Colorado, the calls came from numbers with a Vermont area code. He had previously lived in Vermont, and his cell phone number had a Vermont area code. Hood was able to trace one such call to AAC. Although it determined that Hood had alleged sufficient facts to establish that AAC purposefully directs telemarketing at Colorado, the trial court held that the call to Hood’s Vermont phone number did not arise out of, or relate to, AAC’s calls to Colorado phone numbers. In light of Ford Motor Co. v. Montana Eighth Judicial District Court, 141 S. Ct. 1017 (2021), the Tenth Circuit determined the trial court's dismissal could not stand. "The argument regarding 'purposeful direction' ... is implicitly rejected by Ford, and the argument regarding 'arise out of or relate to' ... is explicitly rejected. ... We also determine that AAC has not shown a violation of traditional notions of fair play and substantial justice." View "Hood v. American Auto Care, et al." on Justia Law

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Plaintiff-Appellants were shareholders in a major mutual fund complex through their employer-sponsored retirement plans. They alleged the complex’s investment adviser, Great-West Capital Management LLC (“GWCM”), and affiliate recordkeeper, Great-West Life & Annuity Insurance Co. (“GWL&A”), breached their fiduciary duties by collecting excessive compensation from fund assets. After holding an eleven-day bench trial in January 2020, the district court adopted and incorporated by reference, with few changes, Defendants’ Proposed Findings of Fact and Conclusions of Law. It also found for Defendants on every element of every issue, concluding “even though they did not have the burden to do so, Defendants presented persuasive and credible evidence that overwhelmingly proved that their fees were reasonable and that they did not breach their fiduciary duties.” Plaintiffs appealed, but finding no reversible error, the Tenth Circuit affirmed. View "Obeslo, et al. v. Great-Western Life & Annuity, et al." on Justia Law

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Phelps Gas & Oil brought a class action in Colorado state court against Noble Energy and DCP Midstream for underpayments on oil and gas royalties Noble allegedly owed Phelps and other owners of royalty interests. DCP Midstream removed the class action to federal district court. Phelps then moved to remand the case to state court, arguing the case failed to meet the federal $75,000 amount-in-controversy requirement. The district court denied the motion, and later entered summary judgment, dismissing all of Phelps’s claims. The Tenth Circuit concluded the district court erred in denying Phelps’s motion to remand, thus dismissing the appeal for lack of jurisdiction. "[N]either the value to Phelps nor the cost to either defendant in this case would result in more than $75,000 at controversy. Though the contracts between Noble and DCP are worth millions of dollars, we cannot base federal jurisdiction on potential future litigation involving the defendants." View "Phelps Oil and Gas v. Noble Energy" on Justia Law

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A class of employees who participated in Banner Health, Inc.’s 401(k) defined contribution savings plan accused Banner and other plan fiduciaries of breaching duties owed under the Employee Retirement Income Security Act (ERISA). A district court agreed in part, concluding that Banner had breached its fiduciary duty to plan participants by failing to monitor its recordkeeping service agreement with Fidelity Management Trust Company: this failure to monitor resulted in years of overpayment to Fidelity and corresponding losses to plan participants. During the bench trial, the employees’ expert witness testified the plan participants had incurred over $19 million in losses stemming from the breach. But having determined the expert evidence on losses was not reliable, the court fashioned its own measure of damages for the breach. Also, despite finding that Banner breached its fiduciary duty, the district court entered judgment for Banner on several of the class’s other claims: the court found that Banner’s breach of duty did not warrant injunctive relief and that Banner had not engaged in a “prohibited transaction” with Fidelity as defined by ERISA. The class appealed, arguing the district court adopted an improper method for calculating damages and prejudgment interest, abused its discretion by denying injunctive relief, and erred in entering judgment for Banner on the prohibited transaction claim. Finding no abuse of discretion or other reversible error, the Tenth Circuit affirmed the district court in each instance. View "Ramos v. Banner Health" on Justia Law

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Rex Sharp, the attorney for Plaintiff Duncan Frank in a putative class-action against Crawley Petroleum Corporation, appealed a district-court order granting Plaintiff’s motion for voluntary dismissal of his claim with prejudice but placing three restrictions on Sharp’s bringing similar putative class-action claims against Crawley on behalf of other plaintiffs. Plaintiff owned a royalty interest in an oil and gas well operated by Crawley in Oklahoma. He alleged that Crawley had been underpaying the royalties owed on natural-gas production. Sharp claimed two of the three conditions were improperly imposed because the dismissal caused no legal prejudice to Crawley. Crawley moved to dismiss the appeal for lack of jurisdiction. The Tenth Circuit denied the motion to dismiss because Sharp was expressly referenced in the order and was directly bound by it. And although a nonparty, he was a proper appellant, he had standing to appeal, and the order was a final, appealable order. The Tenth Circuit also agreed with Sharp on the merits of his appeal: Crawley would not be better off in regard to class certification than it was with the dismissal with prejudice of Plaintiff’s complaint. The matter was remanded to the district court with instructions to grant Plaintiff’s requested dismissal without the challenged conditions. View "Frank v. Crawley Petroleum Corp." on Justia Law

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Southern Furniture Leasing, Inc. filed a putative class action against a group of less-than-truckload (“LTL”) freight carriers, all predecessors to or current subsidiaries of YRC, Inc. Southern Furniture alleged YRC “carried out a widespread and systematic practice of overcharging its customers by intentionally using inflated shipment weights when determining shipment prices.” YRC asked the Tenth Circuit to affirm on the alternate ground that Southern Furniture failed to allege Article III standing. The district court rejected YRC’s standing argument, and the Tenth Circuit agreed with its analysis. The district court granted YRC’s motion to dismiss on the grounds that Southern Furniture had only 180 days to contest the alleged overcharges under 49 U.S.C. 13710(a)(3)(B). To this, the Tenth Circuit concurred and affirmed. View "Southern Furniture Leasing v. YRC" on Justia Law

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Plaintiff-appellant Terri Baker appealed the dismissal of this putative class action for lack of standing. She sued on behalf of herself and her son, S.F.B., to challenge Kansas laws and school district policies that: (1) required children to be vaccinated to attend school and participate in child care programs; and (2) provided a religious exemption from these requirements. She claimed these immunization laws and policies violated various federal and state constitutional provisions and statutes. Baker argued she and S.F.B. had standing because the immunization requirements and religious exemptions injured them in two ways: (1) the District misapplied Kansas law when it granted a religious exemption for S.F.B. to attend preschool despite being unvaccinated - her fear that the District would revoke S.F.B.'s religious exemption was an injury in fact that established standing; and (2) Baker "would like the option" of placing S.F.B. in a non-accredited private school (i.e., home school), school programs, or licensed child care - she contended Kansas law inhibited her from exercising these options and caused an injury in fact because she would be unable to secure a religious exemption for S.F.B. if she tried. Finding no reversible error in the district court's dismissal, the Tenth Circuit affirmed. View "Baker v. USD 229 Blue Valley" on Justia Law