On May 15, 2017, the United States District Court for the Southern District of New York denied class treatment to a proposed class action alleging violations of Section 10(b) of the Securities Exchange Act of 1934. In its opinion, the district court held that the plaintiffs failed to satisfy Rule 23(b)(3)’s predominance requirement because their “omission” claims were actually alleged misrepresentations not subject to a presumption of class-wide reliance. Continue reading “Plaintiffs’ Securities Claims Denied Class Treatment for Failure to Satisfy Predominance Requirement”
On March 6, 2017, the Seventh Circuit Court of Appeals vacated a district court’s certification of eight separate classes against Allergan and other defendants under an Illinois and Missouri statute. Eike v. Allergan, Inc., No. 16-3334 (7th Cir. March 6, 2017). Equating the plaintiffs’ allegations to that of cat breeders and Fancy Feast, Judge Posner and the Seventh Circuit held that the plaintiffs’ case amounted to mere buyer dissatisfaction and they failed to allege a cognizable misrepresentation. Continue reading “Cat Breeders, Fancy Feast, and Gravity: Seventh Circuit Vacates Certification of Classes of Dissatisfied Buyers”
In one of our previous posts, we highlighted that the United States Supreme Court granted review to address the legality of class action waivers in arbitration agreements among employers and employees. The case, NLRB v. Murphy Oil USA, Inc., U.S., No. 16-307, was consolidated for oral argument purposes with two other similar cases that were granted review, Ernst & Young, LLP v. Morris, No. 16-300 and Epic Systems Corp. v. Lewis, No. 16-285. Continue reading “Supreme Court Postpones Consideration of Class Action Waivers Until 2017 Term”
On January 19, 2017, the Ninth Circuit affirmed the dismissal of a shareholder class action lawsuit alleging securities fraud violations, arising out of Hewlett-Packard’s former CEO’s alleged misrepresentations about HP’s ethical compliance. In a case of first impression, the Ninth Circuit held that there was no actionable securities fraud claim where a CEO violates the corporation’s corporate code of ethics, even after publicly touting the corporation’s high standards for ethics and compliance. Continue reading “Ninth Circuit Holds That Securities Class Action Based on Violations of Ethics Code Properly Dismissed”
On January 13, 2017, the United States Supreme Court granted review to address the legality of class action waivers in arbitration agreements among employers and employees. The case, NLRB v. Murphy Oil USA, Inc., U.S., No. 16-307, comes after the Fifth Circuit’s rejection of the NLRB’s position that class action waivers in arbitration agreements are unlawful. Continue reading “Supreme Court to Address Class Action Waivers Amid Circuit Split”
On December 13, 2016, the Seventh Circuit Court of Appeals dismissed a plaintiff’s claims under the Fair and Accurate Credit Transactions Act (“FACTA”) for lack of jurisdiction. In the first federal appellate decision involving FACTA following the Supreme Court’s decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016), the Seventh Circuit held that the plaintiff failed to establish that he suffered an injury-in-fact for purposes of Article III standing.
On November 16, 2016, the Sixth Circuit held that a state law professional negligence class action against civil engineering companies arising out of the Flint, Michigan water crisis must be litigated in Michigan state court. Because the plaintiffs’ proposed class contained more than two-thirds Michigan citizens, a local defendant, and injuries limited to those arising from Flint’s water system, the case was “truly local in nature” and thus belonged in state court. Continue reading “Sixth Circuit Sends Flint Water Class Action to State Court Under CAFA’s Local Controversy Exception”