Archives: Class Certification

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The Supreme Court Will Review Whether Putative Class Actions Toll the Statute of Repose for Class Members’ Individual Securities Act Claims

On January 13, 2017, the Supreme Court granted certiorari in California Public Employees’ Retirement System v. ANZ Securities, Inc., No. 16-373 (ANZ Securities), to resolve whether the filing of a putative class action tolls the statute of repose for individual class members’ claims brought under Section 13 of the Securities Act. The California Public Employees’ … Continue Reading

“Administrative Feasibility” Rejected in the Ninth Circuit

On Jan. 3, in Briseno v. Conagra Foods, Inc., Case No. 15-55727, the Ninth Circuit Court of Appeals held that Fed. R. Civ. P. 23 does not require class representatives to demonstrate that there is an “administratively feasible” means of identifying absent class members in order to certify a class. In rejecting the “administrative feasibility” … Continue Reading

District Court Adopts “Weak” Test of Ascertainability, Certifies Class of Corn Producers in Suit Against Syngenta over Commercialization of Genetically Modified Corn Seed Products

A District Court in Kansas added to an increasing debate in the federal courts over class ascertainability when it certified a class of 440,000 U.S. corn producers in a suit against Swiss global agribusiness Syngenta AG (Syngenta) over the company’s commercialization of genetically modified corn seed products. In re: Syngenta Ag Mir 162 Corn Litig., … Continue Reading

Eighth Circuit Becomes First Appellate Court to Apply Halliburton II Price Impact Analysis

The Eighth Circuit has become the first federal circuit court to apply the Supreme Court’s Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (Halliburton II) decision. Relying on Halliburton II, the Eighth Circuit reversed the district court’s certification of a class of Best Buy shareholders in a Rule 10b-5 case. … Continue Reading

Notice to Unnamed Members of Putative Class After Plaintiff Accepts a Precertification Tender Under New York CPLR § 908

Under Federal Rule of Civil Procedure 23(e)(1), claims, issues, or defenses of a certified class may be settled, voluntarily dismissed, or compromised with the court’s approval. While many states look to the Federal Rules for guidance, there can be notable distinctions between Federal Rule 23 and its state counterparts. One such example is Vasquez v. … Continue Reading

Judge Scheindlin Approves Class Certification in Barclays High-Frequency Trading Securities Fraud Action

U.S. District Judge Shira Scheindlin of the Southern District of New York recently certified a class in Strougo v. Barclays PLC, 14 Civ. 5797 (SAS), (S.D.N.Y. Feb. 2, 2016), a high-profile securities class action based on the “price maintenance” theory. The plaintiffs alleged that Barclays made false or misleading statements by overstating the transparency and … Continue Reading

District Court Refuses to Enjoin State From Pursuing Claims That Fell Within Terms of Prior Class Settlement Agreement and Release

The court in In re Flonase Antitrust Litigation, No. 08-3301, 2015 WL 9273274 (E.D. Pa. Dec. 21, 2015) recently held that it could not enjoin the state of Louisiana from pursuing claims that, on their face, fell within the terms of an approved class settlement agreement and release. Even though Louisiana did not object or … Continue Reading

JCPenney Advertising Class Settlement Calls for $50 Million Payment for a California-Only Class

Retailers have been under siege, particularly in California, by putative class actions involving allegations of “false or misleading” advertising practices. Generally, the crux of the allegations is that retailers are inducing customers to make purchases by overstating or fabricating the amount that a customer will save by purchasing an item. In the past two years, … Continue Reading

Barclays Bids to Halt High-Frequency Trading Class Action in Its Tracks

A high-profile class action against Barclays over so-called high-frequency trading is heading into a key phase this month, with the court set to decide plaintiffs’ motion for class certification—a pivotal moment in the case’s trajectory. Strougo v. Barclays Plc, 14-cv-05797 (S.D.N.Y.) began in July 2014, when a Barclays purchaser of Barclays American Depositary Shares (“ADSs”) filed … Continue Reading

Banks Win Class Certification in Target Data Breach Case

A federal court recently granted class certification to a group of financial institutions (the “Banks”) in the data breach case against Target Corporation (“Target”) arising from the December 2013 hacking of its computer system, which exposed the financial information of millions of customers. In re: Target Corp. Customer Data Security Breach Litigation, MDL Case No. … Continue Reading

Plaintiffs Fold on Their Full Tilt Poker Actions Following Court’s Rejection of Class Certification and Proposed Settlement

Weeks after having their motion for class certification denied and a proposed global settlement rejected, the plaintiffs in three actions against entities and individuals involved in the Full Tilt Poker Internet gambling operation have dismissed their claims without prejudice. This case illustrates the importance of due process considerations in representative actions. Full Tilt, PokerStars, and … Continue Reading

Judge Easterbrook Holds Unaccepted Offer of Judgment Does Not Moot an Individual TCPA Claim

As we covered here, the U.S. Supreme Court accepted certiorari in Campbell-Eward Co. v. Gomez, 768 F.3d 871 (9th Cir. 2014), to decide the question of whether a full-relief offer of judgment under Federal Rule of Civil Procedure 68, made prior to the plaintiff’s moving for class certification, would moot a TCPA class action. The … Continue Reading

District Court Follows Supreme Court’s Lead in Halliburton, Allows Class Action to Proceed with Narrowed Factual Scope

Applying the Supreme Court’s landmark decision in Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (“Halliburton II”), which allowed companies facing securities fraud class actions to defeat certification by presenting evidence that their alleged false statements did not impact the company’s stock price, the district court on remand held that … Continue Reading

A Year Later: The Impact of Halliburton II Is Still Developing

In June 2014, the Supreme Court issued its decision in Halliburton Co. v. Erica P. John Fund Inc. (“Halliburton II”), a putative class action in which Halliburton investors alleged that the company made misrepresentations designed to inflate its stock price, in violation of section 10(b) of the Securities Exchange Act of 1934 and Securities and … Continue Reading

Class Certification of California Price Advertisement Case Gives Cause for Concern

Spann v. JCPenney and People of California v. Overstock.com By Rodger L. Eckelberry, Rand L. McClellan, and Jacqueline K. Matthews June 30, 2015 A recent class certification decision in California involving challenges to a retailer’s price comparison advertisements should prompt retailers to carefully evaluate their sale advertising practices. Whether comparing to “regular” or previous prices, or to the sale … Continue Reading

Third Circuit Clarifies Standard for Ascertainability

In a recent ruling vacating denial of class certification, the Third Circuit provided guidance on the scope of the implied “ascertainability” requirement under Rule 23. Byrd v. Aaron’s, Inc., 2015 U.S. App. LEXIS 6190 (3d Cir. April 16, 2015) involved a putative class action against Aaron’s, which leases, among other things, laptop computers to consumers. … Continue Reading

Court Takes Cue from Comcast v. Behrend, Certifies Class as to Liability but not Damages

Fort Worth Employees’ Retirement Fund v. J.P. Morgan Chase & Co. In what appears to be an increasingly common practice since the Supreme Court decided Comcast Corp. v. Behrend, 133 S.Ct. 1426 (2013), the Southern District of New York recently certified a class as to liability, but rejected certification as to damages.  Fort Worth Employees’ … Continue Reading

In “Zombie” Class Action, Seventh Circuit Requires Plaintiffs to Present Evidence to Prove Home-State Exception to CAFA Jurisdiction

On Tuesday, the Seventh Circuit decided Myrick v. Wellpoint, Inc., Nos. 12-3882, 13-2230, 2014 WL 4073065 (Aug. 19, 2014), which held that plaintiffs were required to produce evidence—and not merely assumptions—about the citizenship of class members to establish the “home-state exception” to CAFA jurisdiction under 28 U.S.C. § 1332(d)(4). The case arose when a health insurer … Continue Reading

Sixth Circuit Affirms Certification and Summary Judgment for TCPA Class, Despite State Law Class Action Prohibition

On July 9, 2014, the Sixth Circuit affirmed a district court ruling that a consumer TCPA class action could proceed against Lake City Industrial Products, rejecting Lake City’s argument that Michigan law prohibited TCPA class actions.  American Copper & Brass, Inc. v. Lake City Industrial Products, Inc., Case No. 13-2605, (6th Cir. 2014).  In addition, … Continue Reading

Low-Tech Proof In a High-Tech World: Northern District of California Denies Class Certification In Hulu Data Privacy Case

On June 16, the Northern District of California denied a motion for class certification in In re Hulu Privacy Litigation, No. C 11-03764 LB, ECF No. 111.  The plaintiffs in that action alleged that Hulu violated the Video Privacy Protection Act (“VPPA”) by disclosing personal identification information (“PII”) to third parties, including Facebook.  Hulu provides … Continue Reading

No Supreme Court Review of Moldy Washer Cases

Earlier today, the Supreme Court denied certiorari in two highly anticipated appeals of decisions by the Sixth and Seventh Circuit Courts of Appeals to grant class certification over breach of warranty claims involving allegedly defective washing machines.  The denial of cert in Butler v. Sears, Roebuck & Co., Nos. 11-8029, 12-8030 (7th Cir., Aug. 22, … Continue Reading

No Need To Try the Individual Claim After Class Cert Denial – Ninth Circuit Asserts Jurisdiction over Voluntary Stipulated Dismissal and Upholds Denial of Class Certification

The Ninth Circuit recently affirmed the United States District Court for the Central District of California’s denial of class certification of a Plaintiff’s California consumer law claims based primarily based on the predominance of individualized issues. Case No. 11-55592 (9th Cir. Feb. 3, 2014). Notably, the Ninth Circuit also determined that it had jurisdiction to … Continue Reading

Once Again, Clapper Defeats Data Breach Class Action

Article III standing has once again proved to be an insurmountable hurdle for data breach class action plaintiffs whose personal information hasn’t been misused.  In Galaria v. Nationwide Mutual Insurance Co., an Ohio federal court relied on the United States Supreme Court’s decision in Clapper v. Amnesty Intern. USA, 133 S.Ct. 1138 (2013), and held … Continue Reading
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