Justia Class Action Opinion Summaries

Plaintiffs, participants in retirement plans offered by defendants and covered by the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001 et seq., appealed from a judgment dismissing their ERISA class action complaint. Plan documents required that a stock fund consisting primarily of Citigroup common stock be offered among the plan's investment options. Plaintiffs argued that because Citigroup stock became an imprudent investment, defendants should have limited plan participants' ability to invest in it. The court held that plan fiduciaries' decision to continue offering participants the opportunity to invest in Citigroup stock should be reviewed for an abuse of discretion and the court found that they did not abuse their discretion here. The court also held that defendants did not have an affirmative duty to disclose to plan participants nonpublic information regarding the expected performance of Citigroup stock and that the complaint did not sufficiently allege that defendants, in their fiduciary capacities, made any knowing misstatements regarding Citigroup stock. Accordingly, the court affirmed the judgment.

Plaintiff appealed from a judgment dismissing as time-barred a putative class action alleging violations of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227, arising from the transmission of an unsolicited advertisement to plaintiff by means of a telephone facsimile machine. At issue was whether a state statute of limitations was among the "laws" referenced in the TCPA's "otherwise permitted" provision, or whether the statute of limitations for TCPA actions was the federal catch-all four-year limitations period provided in 28 U.S.C. 1658(a). The court held that, in the circumstances of this case, where the relevant state law, Conn. Gen. Stat. 52-570c, specifically recognized a cause of action for statutory damages for the transmission of unsolicited commercial facsimile communications, but permitted such an action to be filed only within two years of the complained-of transmission, a TCPA action could be maintained only as permitted by that state statute of limitations. Accordingly, in this instance, plaintiff's complaint was untimely even if tolling were to be calculated.

This action arose out of the proposed open merger of OPENLANE with Riley, wholly-owned subsidiary of ADESA which in turn, was a wholly-owned subsidiary of KAR (KAR and, together with Riley and ADESA, collectively, the "Purchasing Entities" or "KAR"). Plaintiff brought a class action on behalf of himself and all other public shareholders of OPENLANE and sought to enjoin preliminarily the merger. The court held that a balancing of the equities did not tilt toward enjoining the transaction. Accordingly, the motion for a preliminary injunction was denied.

Plaintiff, a former shareholder of infoGroup, Inc., brought its Second Amended Class Action complaint asserting, on behalf of themselves and their fellow former shareholders, that the merger of infoGroup into a subsidiary of CCMP Capital Advisors, pursuant to an agreement entered on March 8, 2010, was the product of breaches by the then-directors of infoGroup of the fiduciary duty of loyalty. The court held that the claim which plaintiff sought to assert was individual in nature and that plaintiff had alleged sufficiently that the merger was not approved by a disinterested and independent majority of the directors. The court also held that, although plaintiff acknowledged that it was not asserting certain claims the dismissal of which had been sought by defendants, for purposes of avoiding confusion, those claims were dismissed. Accordingly, with that limited exception, the court denied defendants' motions to dismiss.

Plaintiff brought a class action against the Bank, alleging that the Bank breached its contract by charging interest in excess of the rate specified in the promissory note. The court affirmed the district court's grant of the Bank's motion to dismiss where the district court correctly concluded that the relevant provisions were clear, did not conflict with one another, and adequately disclosed the interest to be charged.

Plaintiffs, on behalf of themselves and all other similarly situated, filed a complaint alleging that defendants violated the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201-19, by requiring waiters to share tips with tip-ineligible employees. Plaintiffs also alleged that Park Avenue also violated various provisions of the New York Labor Law by requiring servers to share tips with tip-ineligible employees and by failing to pay waiters for an extra hour's work when their workdays lasted more than ten hours. Defendants appealed from the district court's order granting plaintiffs' motion for class certification. The court held that plaintiffs provided ample and sufficient evidence as to the elements of Rule 23(a)(1)-(4) and Rule 23(b)(3) for it to uphold the district court's findings and conclusions with respect to each of the Rule 23 requirements. Accordingly, the court affirmed the district court's order.

Appellants appealed the dismissal of their class action complaint against Nextel, the law firm of Leeds, Morelli & Brown, P.C. (LMB), and seven of LMB's lawyers (also LMB). Appellants were former clients of LMB who retained the firm to bring discrimination claims against Nextel. The complaint asserted that, inter alia, LMB breached its fiduciary duty of loyalty to appellants and the class by entering into an agreement with Nextel in which Nextel agreed to pay: (i) $2 million to LMB to persuade en masse its approximately 587 clients to, inter alia, abandon ongoing legal and administrative proceedings against Nextel, waive their rights to a jury trial and punitive damages, and accept an expedited mediation/arbitration procedure; (ii) another $3.5 million to LMB on a sliding scale as the clients' claims were resolved through that procedure; and (iii) another $2 million to LMB to work directly for Nextel as a consultant for two years beginning when the clients' claims had been resolved. The court held that appellants have alleged facts sufficient to state a claim against LMB for, inter alia, breach of fiduciary duty and against Nextel for aiding and abetting breach of fiduciary duty. Therefore, the court vacated and remanded for further proceedings.

The Taranto Group contracted with two outside vendors to send out advertising via facsimile transmissions on its behalf. It was later calculated that at least 5,000 transmissions were made in violation of the Telephone Consumer Protection Act (TCPA). A doctor brought an action individually and as a class representative against the Taranto Group, seeking damages and injunction relief under the TCPA and tort damages for conversion. A professional corporation then sought to intervene as an additional class representative. The district court issued an order certifying the proposed class and, in an amended order, certified the order for interlocutory appeal. The Supreme Court affirmed the district court's determination that class certification was appropriate in this case, holding, among other things, that the district court (1) correctly found the plaintiffs met their burden of demonstrating that they met the statutory requirements for class certification, (2) properly determined that a class action in this case was superior to individual small claims actions, and (3) properly concluded that a class action would avoid inconsistent adjudications.

Students and former students of the University of Alabama, Auburn University, and the University of Alabama at Birmingham, filed three separate class-action lawsuits in the Jefferson Circuit Court challenging the legality of so-called "dining-dollars" programs implemented by the universities and pursuant to which all undergraduate students were required to pay a mandatory dining fee each semester, which was then credited back to the students in the form of "dining dollars" that could be spent only at on-campus dining outlets controlled exclusively by the food-service vendors for the universities - Aramark Educational Services, Inc., at UA; Compass Group, USA, Inc. (Chartwells) at Auburn; and Sodexo, Inc., at UAB. The trial court dismissed the three actions, and the students appealed. The Supreme Court consolidated the appeals for the purpose of writing one opinion and affirmed all three. The students sued the boards of trustees governing the universities and the food-service vendors, alleging that the dining-dollars programs violated: (1) state antitrust laws; (2) the Alabama Constitution inasmuch as it forbids the State from having an interest in a private enterprise; (3) the rule in 16-1-32(d) barring universities from charging excessive transaction fees to merchants that accept university-issued debit cards; and (4) the common-law prohibition on conversion. Because the boards of trustees are entitled to state immunity pursuant to section 14 of the Alabama Constitution, all claims against them were properly dismissed. The university administrators and foodservice vendors were entitled to immunity on the asserted antitrust claims as well, albeit state-action immunity as opposed to state immunity. Moreover, because the students lacked standing to pursue a cause of action for a violation of 16-1-32(d), and because the students did not and could not allege the necessary elements of a conversion claim, the trial court also properly dismissed the students' other claims.

Plaintiffs, representing a putative class of purchasers of contact lens solutions, appealed the district court's order granting summary judgment for defendant. Plaintiffs brought suit alleging that defendant violated California's Unfair Competition Law (UCL), Cal. Bus. & Prof. Code 17200 et seq., and False Advertising Law (FAL), Cal. Bus. & Prof. Code 17500 et seq., by marketing Complete MoisturePlus as a product that cleaned and disinfected lenses. The district court ruled that plaintiffs lacked standing. Defendant argued that the ruling was not in error and that even if it was, the suit was properly dismissed because the class' claims were preempted by 21 U.S.C. 360k(a) of the Medical Devices Amendments of 1976 (MDA), 21 U.S.C. 360(c) et seq. The court held that the district court was incorrect to conclude that this class of plaintiffs lacked standing where they had demonstrated economic harm, but the court held that it could affirm the district court's summary judgment on any ground supported by the record. Therefore, the court held that the record demonstrated that the class' claims were preempted, so the court affirmed the grant of summary judgment.