Justia Class Action Opinion Summaries

Plaintiffs filed a malpractice suit against Milberg and others for failing to meet the discovery requirements in the Variable Annuity Life Insurance Company, Inc. (VALIC) class action. On appeal, Intervenor-plaintiff-appellant Lance Laber challenged the district court's denial of plaintiffs' motion for class certification. The court concluded that the district court properly applied the choice-of-law rules of Arizona, the forum state. However, the court vacated and remanded for further proceedings, concluding that the district court erred in holding that the law of each class member’s home state governed his or her individual claim, rather than the law of Arizona where the alleged malpractice occurred. View "Bobbitt v. Milberg LLP" on Justia Law

Plaintiffs, holders of BP securities, filed suit against BP and two of its executives, alleging that BP made two distinct series of misrepresentations in violation of federal securities law: one series regarding its pre-Deepwater Horizon spill safety procedures, and one regarding the flow rate of the oil after the spill occurred. The district court only certified the post-spill class. Both sides appealed. The court concluded that the district court did not abuse its discretion in certifying the Post-Spill class where the district court determined that plaintiffs had established a model of damages consistent with their liability case and capable of measurement across the class, as required by the Supreme Court’s recent decision in Comcast Corp. v. Behrend. Accordingly, the court affirmed as to that issue. The court also affirmed the district court's decision not to certify the Pre-Spill class where plaintiffs’ materialization-of-the-risk theory cannot support class certification. View "Ludlow v. BP" on Justia Law

Plaintiffs, seeking to represent a class of service technicians, filed suit against his employer, Hobart, and its parent company, ITW, alleging that Hobart did not compensate its technicians for the time they spent commuting in Hobart’s service vehicles from their homes to their job sites and from those job sites back home, and that Hobart failed to provide its technicians with meal and rest breaks. The district court denied the class certification and granted partial summary judgment to defendants. The district court also determined that plaintiff did not comply with the notice requirements of California’s Private Attorneys General Act (PAGA), Cal. Lab. Code 2698 et seq. The court concluded that the district court erred in denying class certification because it evaluated the merits rather than focusing on whether the questions presented - meritorious or not - were common to the class; the district court did not abuse its discretion in concluding that the proposed class failed to meet the requirements of Rule 23(b) because questions as to why service technicians missed their meal and rest breaks would predominate over questions common to the class; in regard to plaintiff's commute-time claim, the court concluded that there was a genuine dispute of material fact as to whether Hobart requires technicians to use its vehicles for their commute; and the district court properly dismissed the PAGA claim because plaintiff's letter is insufficient to allow the Labor and Workforce Development Agency to intelligently assess the seriousness of the alleged violations. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Alcantar v. Hobart Service" on Justia Law

The district court denied a motion to certify a class to sue Zions Bank and its payment-processor subsidiaries for alleged civil violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962(c), (d). The complaint that the defendants conspired to conduct a fraudulent telemarketing scheme that caused unauthorized debits from bank accounts owned by Reyes and members of the proposed class. The court concluded that there were no issues common to the class and Reyes could therefore satisfy neither the commonality requirement of Federal Rule of Civil Procedure 23(a), nor the predominance requirement of Rule 23(b)(3). The court recognized Reyes’ theory of a sham enterprise, but focused on the fact that different sales pitches were used and different products were pitched. The Third Circuit vacated, reasoning that the district court did not adequately consider evidence of the structure of each of the alleged fraudulent schemes and related FTC investigations. If absolute conformity of conduct and harm were required for class certification, unscrupulous businesses could victimize consumers with impunity merely by tweaking the language in a telemarketing script to get access to personal information such as account numbers. View "Reyes v. Netdeposit, LLC" on Justia Law

A class action filed against Dairy Farmers of America (DFA), a dairy marketing cooperative, Keller’s Creamery, a butter manufacturer, two DFA officers, and two Keller’s officers, alleged a conspiracy to purchase cheese traded on the Chicago Mercantile Exchange in order to help DFA and Keller’s manipulate the price of Class III milk futures. The parties named in the initial complaint reached a settlement (DFA Settlement), which the district court approved in 2014. In 2012, plaintiffs filed an amended class action complaint, adding Schreiber Foods as a defendant and alleging violations of sections 1 and 2 of the Sherman Act, the California Cartwright Act, the Commodity Exchange Act, and RICO. The district court dismissed the section 2 Sherman Act claims. In 2013, the court granted Schreiber summary judgment on the remaining claims. The Seventh Circuit affirmed, rejecting arguments that the district court abused its discretion by limiting discovery to only “high-level” employees and prohibiting the depositions of several employees and in including Schreiber in the DFA Settlement. View "Indriolo Distribs., Inc. v. Schreiber Food, Inc." on Justia Law

Bell alleged that her former employer, PNC Bank, failed to pay her overtime wages in violation of the Fair Labor Standards Act, 29 U.S.C. 201, and the Illinois Minimum Wage and Wage Payment and Collection Acts, and that the failure was not an isolated incident, but rather part of a PNC policy or practice that affected other employees. Bell claimed that she was evaluated, in part, based on how many new accounts she brought into the bank, and in order to generate new accounts she needed to spend “significant” time outside of her regular work hours visiting prospective clients. Some of the assignments to visit prospective clients came from a PNC vice president who did not work at the Bell’ branch. According to Bell, when she submitted time cards reflecting overtime work, her branch manager and a PNC regional manager told her that “PNC would not permit... overtime for the branch,” and “PNC expected its employees to handle their outside-the-branch work on their own time, without reporting any extra hours that they worked.” The Seventh Circuit affirmed certification of a class of plaintiffs. Many issues remain unanswered and the district court was correct to conclude that a class action would be an appropriate and efficient pathway to resolution. View "Bell v. PNC Bank" on Justia Law

This appeal arose from two related class-action lawsuits that were first brought by Appellees almost fifteen years ago. Appellees sought damages from Appellants, Ganley Chevrolet and Ganley Management Company, as well as declaratory and injunctive relief, alleging violations of the Ohio Consumer Sales Practices Act (OCSPA). The trial court eventually certified a class of plaintiffs and ruled that all class members could recover damages. The trial court then ruled that Appellants violated the OCSPA and awarded damages to each class member. The appellate court affirmed the trial court’s order certifying the class without squarely addressing Appellants’ claim that there was no showing that all class members had suffered damages. The Supreme Court reversed the judgment of the court of appeals and vacated the trial court’s order certifying the class, holding (1) all members of a plaintiff class must have suffered injuries as a result of the conduct challenged in the suit; and (2) because the class certified in this case included plaintiffs whose damages were inchoate, the class as certified was inconsistent with the law. View "Felix v. Ganley Chevrolet, Inc." on Justia Law

In 2000 and 2002 the FDA issued warnings to Caraco, a Michigan pharmaceutical manufacturer, stating that failure to correct violations promptly could result in enforcement action without further notice. After follow-ups in 2005, the FDA sought a definitive timeline for corrective actions. The FDA issued notices of objectionable conditions in 2006, 2007, and 2008. A consultant audited Caraco’s facilities and stated that it was “likely that FDA will initiate some form of seizure action.” Caraco executives thought the consultant “alarmist.” Later, the FDA issued a formal warning, determining that Caraco products were adulterated and that its manufacturing, processing, and holding policies did not conform to regulations and noting its poor compliance history. The letter stated that failure to promptly correct the violations could result in legal action without further notice, including seizure. A new consultant warned of likely enforcement action. Caraco followed some of its suggestions. In 2009, Caraco issued a nationwide drug recall, constituting “a situation in which there is a reasonable probability that the use of, or exposure to, a violative product will cause serious adverse health consequences or death.” The FDA filed a complaint, served Caraco, and seized products. Days later, Caraco began a mass layoff, indicating that it did not “reasonably foresee" the FDA action. A certified class of former Caraco employees alleged that Caraco violated the Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C. 2101, by failing to provide 60 days notice. The Sixth Circuit affirmed that the FDA action was not an unforeseeable business circumstance that would excuse WARN Act compliance. View "Calloway v. Caraco Pharma. Lab., Ltd." on Justia Law

Plaintiff filed suit against First American, seeking to represent a class of similarly-situated home buyers and alleging that First American engaged in a national scheme of paying the title agencies things of value in exchange for the title agencies’ agreement to refer future title insurance business to First American, in violation of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2601–2617. The district court denied plaintiff's motion for class certification. The court concluded that section 2607(c)(2) cannot apply to First American’s transactions as a matter of law, so the district court erred in relying on section 2607(c)(2) to determine the propriety of class certification. The district court erred in concluding that the common issue does not predominate over individual issues for the proposed class members. Here, plaintiffs contends that First American utilized a nationwide scheme of buying minority interests in the title agencies in order to secure remittance streams from the agencies’ future referrals. This common scheme, if true, presents a significant aspect of First American’s transactions that warrant class adjudication: Whether First American paid a thing of value to get its agreement for exclusive referrals. Therefore, the court vacated the district court’s denial of class certification in part as to these transactions that involved the common scheme presented to First American’s board of directors. The court also concluded that, even if other service providers may have also influenced the home buyers’ decision to choose First American, there remains a predominant, common question of whether the title agencies’ contractual obligations affirmatively influenced the home buyer’s choice of First American. First American's transactions with the newly-formed agencies at issue do not share common questions of fact between First American and the transactions with the preexisting title agencies and thus do not require common proof to resolve the validity of each of the class members’ claims. The court affirmed the district court’s denial of class certification in part as to the newly-formed title agencies, vacated the district court’s denial of class certification in part as to the remaining title agencies, and remanded for further proceedings. View "Edwards v. The First American Corp." on Justia Law

In the underlying putative class action, counsel for the named plaintiffs obtained a collection of records owned by JPMorgan Chase Bank, N.A. (Chase). Plaintiffs sought to rely on the documents to pursue claims sounding in fraud, deceit, and conversion against Chase. A dispute arose as to whether portions of the Chase records were shielded from discovery and litigation under a provision of Bank Secrecy Act and related regulations. A magistrate judge reviewed all of the disputed documents in camera and concluded that the majority of the documents were not shielded by statute or regulation. Chase then initiated this mandamus proceeding, asking the First Circuit to intervene by declaring that the Act and related regulations shielded an additional fifty-five pages of Chase records from production or use in the putative class action. The First Circuit denied the petition for writ of mandamus, holding that, even assuming that the Act and regulations apply, the documents at dispute would not be shielded from discovery or use in litigation. View "In re JPMorgan Chase Bank, N.A." on Justia Law