Hear, hear. (In re Apollo Group, Inc. Securities Litigation (D. Ariz. 2008) via WSJ Law Blog; Bloomberg). Plaintiffs will appeal the trial court’s decision to throw out the $277 million verdict.
Posts Tagged ‘class actions’
Grand Theft Auto: Class Action – the denouement
Yesterday, Judge Shirley Wohl Kram filed a 58-page decision in the Grand Theft Auto class action. How did she decide?
Labaton Sucharow rebuffed again
“For the second time in less than a week, class action law firm Labaton Sucharow has been reprimanded for overreaching in its attempts to lead a major securities fraud action.” Having attained lead counsel status in one class action against American International Group, the firm sought to combine that case with others pending elsewhere that raised quite different claims against the much-sued insurer.
“As is readily apparent here, lead plaintiff’s Motion for Leave to Amend to add unrelated claims is a calculated attempt at judge shopping,” [Southern District of New York federal judge John] Sprizzo wrote. “It seems apparent that lead plaintiff is trying to usurp lead plaintiff status over claims which are properly in front of other judges.”
The decision came just three days after Southern District of New York Judge Jed S. Rakoff admonished Labaton Sucharow attorneys for perhaps not “fulfill[ing] their professional responsibilities” in their proposal of a co-lead plaintiff in In Re Monster Worldwide Securities Litigation, 07 Civ. 2237.
(Mark Fass, “Labaton’s Newest Bid to Lead Major Securities Fraud Action Rejected”, New York Law Journal, Jul. 22).
Google AdWords class action
It will come as no surprise to anyone who surfs the Web much that many parked domains and 404 error pages on otherwise active websites carry Google keyword ads. (If you don’t know what a parked domain is, this is one; if you don’t know what a 404 error page is, here’s ours.) It might also seem reasonable that ads in these locations would be glanced at and even clicked on by some non-trivial number of visitors, who will often be looking for information on the relevant topic (that’s the idea behind keywords) and, frustrated in their initial search for content, might be ready to check out an advertiser’s substitute content. However, Boston lawyer Hal K. Levitte professes great dismay and consternation that 15 percent of the $887.67 he spent on his ad campaign went toward placements in such inferior spots, resulting in 693 clickthroughs and no actual conversions to prospect or client status. So he’d like class action status to sue for fraud and unjust enrichment on behalf of all other Google ad customers (Legal Blog Watch, Jul. 16).
P.S. From comments, reader J.B.:
Not sure what’s fraudulent here, when Mr. Levitte set up his ad campaign in Google AdWords he was given the opportunity to specify whether he wanted his ads to appear only on Google search result pages, or also in other places such as these parked domains.
In addition, Google gives you the option to pay less for clicks from these “inferior” spots, because as he found out, they often result in less-desirable visitors.
We in the technology world have a saying for people like Mr. Levitte: “RTFM”
Mere “pawn of counsel”
Class actions of the lawyers, by the lawyers, for the lawyers? To quote the Law.com summary: “A federal judge has rejected a proposed co-lead plaintiff for the Monster Worldwide securities fraud class action because the representative knew nothing about the case. Southern District of New York Judge Jed Rakoff had some pointed words for lead plaintiffs counsel Labaton Sucharow, saying the Steamship Trade Association International Longshoremen’s Pension Fund was ‘simply the willing pawn of counsel’ because it ‘has no interest in, genuine knowledge of, and/or meaningful involvement in this case.'” Judge Rakoff noted that pension fund co-chairman Horace Alston had represented himself under oath as the fund’s most knowledgeable person about the suit. “However, Mr. Alston then testified that he did not know the name of the stock at issue in this case, did not know the name of either individual defendant, did not know whether STA-ILA ever owned Monster stock, did not know if an amended complaint had been filed, did not know whether he had ever seen any complaint in the action,” leading Judge Rakoff to declare that he would “not be party to a sham.” (Mark Hamblett, “Lead Plaintiff Pick Rejected as Merely ‘Pawn of Counsel'”, New York Law Journal, Jul. 17).
July 13 roundup
- Nothing new about lawyers stealing money from estates, but embarrassing when they used to head the bar association [Eagle-Tribune; Lawrence, Mass., Arthur Khoury]
- Unusual “reverse quota” case: black job applicant wins $30K after showing beauty supply company turned her down because it had a quota of whites to hire [SE Texas Record]
- Who knew? Per class action allegations, pet food contains ingredients “unfit for human consumption” [Daily Business Review]
- U.K.: “A divorcee who won a £1.4million payout from her multi-millionaire husband is suing her lawyers because she claims she should have got twice that amount.” [Telegraph]
- UW freshman falls from fourth-floor dorm window after drinking at “Trashed Tuesday”, now wants $ from Delta Upsilon International as well as construction firm that put in windows [Seattle P-I, KOMO]
- After giant $103 million payday, current and former partners at Minneapolis law firm are torn by feuds and dissension — wasn’t there a John Steinbeck novella about that? [ABA Journal and again, Heins Mills]
- Small firm that used to make Wal-Mart in-house videos sets up shop at AAJ/ATLA convention hawking those videos for use in suits against the retailer [Arkansas Democrat Gazette, earlier]
- When the judge’s kid gets busted [Eric Berlin; Alabama]
Indiana lottery class action certified
Hoosiers who bought losing Cash Blast tickets may be eligible to claim refunds… at least if they’ve held on to tickets in the now-defunct game from the period May 2005-July 2006. (Jeremy Herb, “$20M lawsuit against Hoosier Lottery gets class-action status”, Indianapolis Star, Jul. 10).
July 6 roundup
- Beck and Herrmann fisk a NEJM anti-preemption editorial. [Beck/Herrmann; NEJM]
- Lessons of the Grasso case. [Hodak]
- You think BigLaw has it bad? Plaintiffs’ attorney who invented the benefit-of-the-bargain theory for pharmaceutical class actions where no one has suffered any cognizable injury, has made his firm tens of millions, but still hasn’t made partner. “Zigler said he never meets most of the people he represents in these high-profile cases.” [St.L. Post-Dispatch; related analysis from Beck/Herrmann]
- Speaking of harmless lawsuits, “an atrocity in Arkansas,” as Arkansas Supreme Court ignores basic principles of due process and civil procedure to certify an extortionate pre-CAFA class action from MIller County. [Hmm, that’s Beck/Herrmann again; General Motors v. Bryant; related from Greve]
- Speedo competitor: unfair competition to say your innovative swimsuit has an advantage just because 38 out of the last 42 world records (as of June 30) were broken in the suit. [Am Law Daily]
- Background on bogus shower curtain scare story (earlier). [NYT; related AEI event]
- EMTALA-orama: don’t discuss payment in the emergency room if you don’t want to get sued. [ER Stories]
Grand Theft Auto: Class Action – in NY Times
The hearing is in a New York City courtroom this morning, and the NY Times is there, complete with a photo of me.
Chicken-catchers and chicken-pluckers, international securities edition
Plaintiffs firm Berman DeValerio sued attorneys Eran and Susan Boltz Rubenstein, former Coughlin Stoia attorneys, for breach of contract; in their counterclaim, the Rubensteins claim they were hired on a contingent fee basis to wrangle international clients to serve as plaintiffs in securities class actions. Lyle Roberts has the details, and the complaint and counterclaim. Alas, the case settled before details of this interesting arrangement came to light in discovery or other court filings, and it is perhaps too much to ask for questions to be asked in the nonexistent Congressional investigation of the practices of the securities class action bar.