Justia Class Action Opinion Summaries

Respondent, First Derivative Traders, representing a class of stockholders in petitioner Janus Capital Group, Inc. ("JCG"), filed a private action under the Securities and Exchange Commission ("SEC") Rule 10b-5, alleging that JCG and its wholly owned subsidiary, petitioner Janus Capital Management LLC ("JCM"), made false statements in mutual funds prospectuses filed by Janus Investment Fund, for which JCM was the investment adviser and administrator, and that those statements affected the price of JCG's stock. Although JCG created Janus Investment Fund, it was a separate legal entity owned entirely by mutual fund investors. At issue was whether JCM, a mutual fund investment adviser, could be held liable in a private action under Rule 10b-5 for false statements included in its client mutual funds' prospectuses. The Court held that, because the false statements included in the prospectuses were made by Janus Investment Fund, not by JCM, JCM and JCG could not be held liable in a private action under Rule 10b-5. The Court found that, although JCM could have been significantly involved in preparing the prospectuses, it did not itself "make" the statements at issue for Rule 10b-5 purposes where its assistance in crafting what was said was subject to Janus Investment Fund's ultimate control. Accordingly, respondent had not stated a claim against JCM under Rule 10b-5 and the judgment of the Fourth Circuit was reversed.

This case stemmed from a class action lawsuit brought by Appellants John Doe #53, John Doe #66, John Doe #66A, John Doe #67, Jane Doe 1, Jane Doe 2 and Rachel Roe. The plaintiffs in the underlying class action consisted of two classes: one for victims of childhood sexual abuse by agents of the Diocese and one for the spouses and parents of victims. A settlement in the class action was approved by the trial judge over Appellants' objections. Appellants moved to alter or amend the order approving the settlement. While Appellants' motion to alter or amend was pending, they reached a separate settlement agreement with the Diocese and class counsel. This agreement provided that the Diocese would pay Appellants $1.375 million to their settle claims, in exchange for Appellants' agreement to opt out of the class action, execute releases, and withdraw all pending motions and objections with prejudice. Appellants presented several issues for the Supreme Court's review, including some relating to the trial court's approval of the settlement agreements. Upon consideration of the arguments presented by the class, the Supreme Court found that due to the executed settlement agreement, there were no issues for further consideration. The Court dismissed the appeal as moot.

Saint Francis Medical Center ("St. Francis") brought a class action suit against C.R. Bard, Inc. ("Bard"), a supplier of medical supplies, alleging that Bard's contracts with Group Purchasing Organizations violated the Sherman Act, 15 U.S.C. 1, 2, section 3 of the Clayton Act, 15 U.S.C. 14, and Missouri antitrust law, Mo. Rev. Stat. 416.121.1. At issue was whether the district court properly granted summary judgment for Bard. The court held that, based on the precedent of Concord Boat Corp. v. Brunswick Corp., and specifically Saint Francis's failure to identify a relevant submarket, the judgment of the district court granting summary judgment to Bard was affirmed.

Appellants appealed from an order granting summary judgment to appellee on a claim arising under the Worker Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. 21202, and dismissing without prejudice supplemental state law claims. Appellants alleged that appellee hired them as temporary workers in the midst of a strike and then summarily dismissed them at the strike's conclusion without providing the notice required under the WARN Act. The court held that the district court properly weighed the evidence when determining how to classify the striking workers and did not err in determining that appellants had failed to provided a viable legal theory on which to base its calculations. Moreover, though appellants complained that it was unrealistic to think that 32 striking workers would depart voluntarily, they produced no evidence supporting an alternative scenario. Therefore, appellants' conclusory statements on these issues failed to create a genuine issue of material fact and did not preclude the grant of summary judgment. The court also rejected appellants' claim that the district court erred in considering and rejecting only two of the four theories it proffered where the district court may not have addressed each theory they put forth, but it clearly rejected them all by concluding that the reduction in force was insufficient to satisfy the numerosity threshold. Therefore, the court agreed with the district court that the various theories offered by appellants failed, as a matter of law, to establish that a mass layoff occurred that would trigger notice requirements of the WARN Act. Accordingly, the judgment was affirmed.

Plaintiff, an employee of defendant, filed this action on behalf of herself and similarly-situated employees to recover wages and liquidated damages under the Fair Labor Standards Act of 1938 ("FLSA"), 29 U.S.C. 201, et. seq., for time spent donning and doffing protective gear during the workday at defendant's poultry processing plants. At issue was whether the district court properly held that the activities identified by the employees were compensable as "work" under the FLSA and that defendant's failure to pay the employees for these activities constituted a violation of the FLSA. The court agreed with the district court in substantial part and held that the time spent donning and doffing protective gear at the beginning and end of each workday was compensable as "work" under the FLSA. The court held, however, that based on the court's decision in Sepulveda v. Allen Family Foods, Inc., decided after the district court entered judgment in the present case, the court was required to hold that the mid-shift donning and doffing of protective gear at the employees' meal break was not compensable. The court additionally affirmed the district court's holding that defendant's violations of the FLSA were not "willful" and, accordingly, a two-year statute of limitations was applicable to the employees' claims for "back pay." Lastly, the court affirmed the district court's holding that defendant acted in good faith and its resulting decision declining to award liquidated damages to the employees.

Petitioner, the lead plaintiff in a putative securities fraud class action, filed suit against respondent alleging violations under section 10(b) of the Securities and Exchange Act of 1934, 15 U.S.C. 78a et seq., and Securities and Exchange Commission Rule 10b-5, and sought to have its proposed class certified pursuant to Federal Rule of Civil Procedure 23. The Court of Appeals affirmed the District Court's conclusion that the "loss causation" element of class certification was not satisfied and denied class certification. At issue was whether securities fraud plaintiffs must also prove loss causation in order to obtain class certification. The Court held that securities fraud plaintiffs need not prove loss causation in order to obtain class certification and that the Court of Appeals' rule contravened Basic Inc. v. Levinson's fundamental premise that an investor presumptively relied on a misrepresentation so long as it was reflected in the market price at the time of his transaction. The Court also distinguished that, where loss causation was a familiar and distinct concept in securities law, it was not price impact. Accordingly, the Court vacated the judgment and remanded for further proceedings.

Appellant, an African-American resident of Texas, sued appellees alleging that their credit-scoring systems employed several undisclosed factors which resulted in disparate impacts for minorities and violated the federal Fair Housing Act ("FHA"), 42 U.S.C. 3601, 3619. At issue, in a certified question, was whether Texas law permitted an insurance company to price insurance by using a credit-score factor that had a racially disparate impact that, were it not for the McCarran-Ferguson Act, 15 U.S.C. 1012(b), would violate the FHA, absent a legally sufficient nondiscriminatory reason, or would using such a credit-score factor violate Texas Insurance Code ("Code") sections 544.002(a), 559.051, 559.052, or some other provision of Texas law. The court answered the certified question by holding that Texas law did not prohibit an insurer from using race-neutral factors in credit-scoring to price insurance, even if doing so created a racially disparate impact.

Plaintiff, on behalf of a class of similarly situated plaintiffs who received Medicaid assistance and were subject to a Medicaid lien pursuant to 53-2-612, MCA, sued defendant alleging that defendant had collected a greater amount than it was entitled from plaintiffs' recoveries from other sources. The parties raised several issues on appeal. The court held that Ark. Dept. of Health & Human Servs. v. Ahlborn applied retroactively to all class members' claims and that defendant must raise affirmative defenses with respect to individual class members to avoid Ahlborn's effect. The court held that the applicable statute of limitations to be 27-2-231, MCA, which provided for a five-year limitations period. The court declined to disturb the district court's order requiring defendant to compile data on individual class members' claims. The court reversed the district court's determination as to interest assessed against defendant, and concluded that no interest could be assessed until two years after any judgment had been entered, under 2-9-317, MCA. The court concluded that the term "third party" in the Medicaid reimbursement statutes included all other sources of medical assistance available to Medicaid recipients, including private health or automobile insurance obtained by the Medicaid recipient. The court reversed the district court's grant of summary judgment to the class on its proffered distinction between "first party" and "third party" sources. The court affirmed the district court's conclusion that plaintiffs' "made whole" claim was immaterial in light of Ahlborn.

Plaintiff purchased a credit disability insurance policy from defendant in connection with credit union financing of an automobile. Following an injury on the job, he received benefits in the form of credit union payments on the auto loan for about three years. The defendant then notified plaintiff that it would not continue to pay because he no longer met the definition of Total Disability under the policy. The district court certified a class action, found the definition of the term âTotal Disabilityâ ambiguous and construed it in favor the insured, entered an injunction that set up a claims review process for class members, then decertified the class. The Third Circuit affirmed with respect to the definition. The court vacated and remanded the rest of the judgment, holding that the court abused its discretion in issuing an injunction in which it retained jurisdiction over the class members' claims throughout the claims procedure process after the class was decertified.

Defendants faxed unsolicited advertisements to plaintiff and others, violating the Telephone Consumer Protection Act, 47 U.S.C. 227. One of the recipients filed a proposed class action in Wisconsin, but dismissed its complaint after the four-year limitations period had run, but before the class was certified. Plaintiff's motion to intervene was denied. The district court denied a motion to dismiss plaintiff's subsequent complaint, reasoning that the limitations period was tolled by the state court filing. The Seventh Circuit affirmed on interlocutory appeal.