“A retirement fund for police and firefighters in Florida is suing Lululemon Athletica Inc., taking issue with a decision by Lululemon’s compensation committee to boost the maximum payout of the executive bonus plan just before a $60 million recall of yoga pants.” [New York Post]
The cultural institution doesn’t make clear enough to visitors that its admission donation is only recommended, according to the lawyers [NY Daily News]
As I noted in this morning’s roundup, the Supreme Court spoke on Wednesday about class certification in an antitrust case from Philadelphia. Although a rather narrow and technical ruling it was not devoid of interest, or so I argue in a new post at Cato at Liberty.
Never mind the (alleged by former employee) lurid sex stuff, says Daniel Fisher, let’s talk about this law firm’s shortcomings in filing securities actions [Forbes]
Paul Karlsgodt at Class Action Blawg reports that the bill “sets forth some specific requirements for class certification that are much more exacting than those required under federal Rule 23 and most state class action rules” and summarizes the provisions as follows (quoting directly):
- clear and convincing evidence would be required to justify a grant of class certification
- orders granting class certification would have to be supported by a detailed written statement of the reasons and evidence justifying the decision
- in assessing superiority, the court would be required to consider, among other things, ”whether it is probable that the amount which may be recovered by individual class members will be large enough in relation to the expense and effort of administering the action to justify maintaining the case as a class action”
- there would be a rebuttable presumption against class certification in cases involving claims where individual knowledge, causation, and reliance are required elements
- certification of a case as a class action would not relieve any class member of the requirement of proving individual injury or damages
- class notice must include a statement of ”the possible financial consequences for the class”
- the law would expressly provide that the plaintiff would bear the initial cost of distributing notice to the class
- appeals from orders granting or denying class certification could be taken as a matter of right the same as a final judgment, and trial court proceedings would be automatically stayed pending the appeal.
11 inches is more like it, according to a bunch of lawyers who’ve filed class actions [ABC News, Chicago Tribune] Ron Miller is not too impressed.
P.S.: “I trust every member of the class will be able to prove that their foot is longer than their sandwich” [@eggs_over_easy]
Dan Brillman at Reuters recalls the Milli Vanilli affair, which set the standard and led to some silly but lucrative class-action suits.
Andrew Trask notices an article in The Economist on the economics of bargaining between shipowners and Somali pirates, and realizes that the insights carry over to the economics of bargaining between defendants and class action lawyers. No prizes for guessing which side in the negotiation parallels that of the lawyers [Class Strategist]
Class action lawyers have filed suit saying that contrary to its marketing, the popular beverage doesn’t actually “give you wings.” [Reuters, ABA Journal] Meanwhile, the same scientific observation that underlies the lawyers’ action — that pharmacologically, the drinks don’t seem to deliver effects readily distinguishable from those of a strong coffee — is hard to square with the oft-expressed fear that Red Bull et al pose unusual risks to consumers, although the New York Times does seem to manage to keep both ideas in its head at once. [Jacob Sullum]
More: Ron Miller, in comments (“this completely mischaracterizes the lawsuit”).
If you’re going to arrange a would-be class action on behalf of buyers dreadfully shocked that a ready-to-drink cocktail marketed as all-natural in fact included trace quantities of sodium benzoate, be sure your client does not lack “typicality.” [Alison Frankel, Reuters] Sodium benzoate is the sodium salt of benzoic acid, a spoilage retardant which occurs naturally in cranberries, plums, apples and other foodstuffs, but is typically synthesized for food use.
Roger Parloff at Fortune is out with a great piece on the Texarkana, Ark. shenanigans that led up to the Supreme Court’s decision to hear a case challenging evasion of the reformist Class Action Fairness Act (CAFA). I discuss at Cato at Liberty.
“Judges rejected a bid from unpaid bloggers at the Huffington Post to revive a lawsuit against AOL that contends the company should pay them a third of the $315 million it spent last year to buy the news site.” [Alexander Kaufman, The Wrap] “The problem with plaintiffs’ argument is that it has no basis,” observed the Second Circuit. [Politico, earlier here, here, etc.]
Better sort out the ethical issues first [Edward Siedle, Forbes]