Emerging Issues

Week Adjourned: 10.9.09

Top Class Actions

Giving new meaning to Renaissance architecture? Hundreds more people in Florida may be onboard with a new Chinese Drywall class action filed this week. The suit names Coastal Condominiums and Precision Drywall as defendants, and alleges that the toxic drywall used in the construction of Renaissance Commons (at right) is emitting toxic gases into people’s homes.

During the Florida building boom hundreds of millions of pounds of drywall was shipped to ports around the United States from China. While 25 states have reported issues, problems were first noted in Florida, likely because the defective drywall seems to react strongly in humid conditions.

Apparently, some 600 Floridians in 30 counties have reported symptoms such as irritated eyes, bloody noses, rashes and insomnia. This certainly puts a new twist on that old expression— ‘there’s no place like home…’

Mario Aliano is one pissed off beer drinker (bad pun, I know). In fact he’s so angry Continue reading “Week Adjourned: 10.9.09”

Week Adjourned: 7.31.09

orwells-paperback-1984 Another busy week…

Top Class Actions

“A startling view of life in…2009?” If only the Amazon Kindle had been around when I went to school! A 17-year old has filed a lawsuit against Amazon claiming the company rendered his homework useless when it went into this Kindle and deleted the digital version of George Orwell’s 1984 (gotta love the irony there).

Justin D. Gawronski , the 17-year old, alleges that Amazon never indicated to its customers that it had the ability to remotely delete content from Kindles and iPhones. The suit further alleges that this information is relevant to customers when making a decision about whether or not to purchase a Kindle. If this all sounds very familiar—well, that’s because it is. Amazon was hit with a similar class action 2 weeks ago when it originally deleted Orwell’s classics, alleging trespass.

Apparently Gawronski’s notes for his homework assignment on 1984 were not only stored in the Kindle, they were linked to specific passages in the book. When the book was deleted his notes became worthless. Uhmm. I wonder if this precedent could be applied to income tax documents…

“Wiiilllllmmmaa…!!!!” No, it wasn’t Fred Flintstone calling, but regardless, seems Hartford Insurance may not have heeded the call when policy holders’ filed claims after Hurricane Wilma. Hartford is being sued for not reimbursing its policy holders who made claims as a result of damage caused by the hurricane—unless those customers actually replaced the damaged item(s). Continue reading “Week Adjourned: 7.31.09”

Week Adjourned: 7.17.09

glasscracked So much for the lazy days of summer—it’s been a busy week!

Top Class Actions

Kindle cracking up? Unfortunately that’s not in a “ha-ha” kind of way. An unhappy customer in Seattle filed a federal class action lawsuit against online bookseller Amazon, this week, over his cracking Kindle.

A Kindle, for those of us technophobes, is an electronic book reader, and has proved tremendously popular for a variety of reasons. Mathew Giese is a convert, he bought a Kindle 2 in February, and a protective cover for it. After 3 months of use his Kindle started to crack in the areas where the cover was attached. The cracks grew worse until one day the screen froze and the Kindle seemingly stopped working.

When Geise contacted Amazon to make warranty claim, he was told by a company representative that Amazon would cover the cost of the frozen screen, but not the cracks, as the warranty apparently doesn’t include damage made by the protective cover. To make a long story short, Mr. Giese was told that the repairs would cost $200. Yes, you read that correctly. And did I mention that you can get a new Kindle 2 for $299? Continue reading “Week Adjourned: 7.17.09”

Week Adjourned: 7.10.09

Top Class Actions

Manulife meets its Waterloo? Ok, lousy play on words—and not everyone knows Manulife is based out of Waterloo, ON (city motto: stability). But, indeed, a class action lawsuit was filed this week on behalf investors who purchased the securities of Manulife Financial Corporation between March 28, 2008 and June 22, 2009. Manulife is considered a “safe bet” as an investment tool, and is among the top insurance companies in the world, largely due to its risk management strategies. But this time, they may not have followed their own investment guidelines.

The complaint alleges that contrary to the Company’s own risk management strategy, Manulife applied no material hedging strategy to manage risk particularly during an economic downturn (hmm, could the book at right have come in handy? just asking). The complaint further alleges that notwithstanding its risk management strategy Manulife built up a massive stock portfolio, which Continue reading “Week Adjourned: 7.10.09”

Week Adjourned: 7.3.09

Top Class Actions

Whiz-through security fizzes out? As if air travel wasn’t fraught with enough obstacles, delays, and frustrations frequent flyers last Monday found themselves SOL at Clear Airport Security Kiosks across the country. The problem? They’d closed their doors, gone out of business, shut down. See ya bye.

Clear operated the Registered Traveler program in 20 airports, serving a reported 260,000 customers. The company pre-screened frequent fliers taking fingerprints, iris scans and credit information, which it then gave to the US Transportation Security Administration, in order to fast track people through the security line-ups.

So, Verified Identity Pass, the parent company of airport security provider Clear, was hit with a class action lawsuit over reimbursement of its US$199 annual fee, by one very disgruntled customer. Continue reading “Week Adjourned: 7.3.09”

Week Adjourned: 6.26.09

Top Class Actions

Quiet Company…loud ex-employees? Seems some former Northwestern Mutual (NML) employees missed the “Shhhh!” memo when they worked there. The Milwaukee-based life insurance giant has been slapped with a $200 million class action lawsuit by former employees who allege NML violated the federal Fair Labor Standards Act and California’s overtime and minimum wage laws. Their complaint also states that NML “intentionally and repeatedly” misclassified sales employees as independent contractors: independent contractors are exempt from federal and state wage and hour laws, while full-time employees are not.

Any of this sound familiar? It should. NML was sued on similar allegations in Pennsylvania in 2008. That time around NML won the lawsuit, which resulted in their being able to maintain their financial representatives as ‘independent contractors.’ According to media reports, NML has about 7,000 “financial representatives nationwide.” Be interesting to see if history does repeat itself here.

Fill ‘er kinda up? If you’ve been running out of gas sooner than expected—and I’m referring to propane here, check your cylinder. If it’s from Blue Rhino and AmeriGas, you might be interested to know that they are facing a class action lawsuit over allegations that they reduced the amount of propane provided in tanks sold as ‘full’ without telling their customers. Continue reading “Week Adjourned: 6.26.09”

Week Adjourned: 6.19.09

Top class actions

Get a Whiff of Zicam. Oh wait, maybe you can’t. At least that’s what’s at the heart of the latest Zicam news. No, it’s not a class action yet—but it could be. And it wouldn’t be the first one. At issue are 3 Zicam cold remedies that cause a loss of sense of smell—a condition known as anosmia. As if the cold wasn’t enough of a problem.

In 2005 more than 300 people filed a class action lawsuit against Matrixx, the makers of cold remedies marketed under the name Zicam, alleging the zinc nasal spray caused a loss of sense of smell and taste. Matrixx settled the suit in 2006 for $12 million.

This week, on June 16, 2 years and 130 adverse event reports later, the FDA released a public health advisory urging consumers not to use the Zicam cold remedies, for the same reasons the lawsuit was brought in 2005.

The products named in the FDA’s advisory are Zicam Cold Remedy Nasal Gel, Zicam Cold Remedy Nasal Swabs and Zicam Cold Remedy Swabs, Kids Size (a discontinued product). What part of this didn’t Matrixx get the first time round?

Top settlements

MySpace Ain’t Your Space. What would you do if you were forced to give your employer your ID and password to an online group you had created with the express purpose of venting your frustrations about your employer? Well, 2 waiters in New Jersey who were faced with that very situation filed a class action lawsuit. And they won.

Restaurant managers who worked at Houston’s in Hackensack, NJ, were fined by a federal jury for surreptitiously monitoring employees’ postings in a MySpace gripe group. The jury ruled that the managers had violated state and federal laws designed to protect privacy of internet communications. The jury awarded the waiters a total of $3,400 in back pay and $13,600 in punitive damages.

BMW: Sheer Driving Pleasure? (if you excuse the faulty subframes). If you or someone you know owns a fourth-generation 3-series model BMW—say the E46—you will be happy to hear there is a settlement pending in the 2006 class action suit against the automaker. So far, BMW has agreed to begin inspections and repairs of potentially faulty subframes in these models.

Currently the settlement is only valid for US residents, and no recall is planned. BMW customers with questions can visit www.E46subframeclassactionsettlement.com.

That’s it for this week. See you at the Bar…

Week Adjourned: 6.5.09

Top Class Actions

Ask for Generic? Mmmaybe not. Sometimes it’s best to skip the generic version—and such may be the case with Budeprion XL, a generic formulation of the antidepressant Wellbutrin XL; the makers of Budeprion XL are the subject of a class action lawsuit filed this week in California. The problem seems to be that the generic form of the drug is not as effective and possibly not as safe as the patented version, so the suit alleges. The FDA has so far said the drug is safe, but they could order a special clinical trial to better assess the safety and efficacy of the generic version.

Top Settlements

“Expedia-dot-CON?” Maybe that’s how the jingle should go after the recent judgement against the internet travel site. Unhappy customers who joined a class action lawsuit alleging breach of contract will see the travel giant fork over $184 million in settlement monies. What did they do? Expedia bundled the service-fee charges with taxes into a single line item, failing to disclose the separate amounts of each to consumers. Because Expedia only remits taxes based on the wholesale price—which it never disclosed to consumers—the taxes appear higher to consumers than they actually are, and Expedia is able to mask the considerable size of its service fees. Nice.

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Week Adjouned: 5.29.09

So, where to start this week?

Top Class Actions:

Wanna be a Hooters girl? Cough up $9.95 for those hot pants (they’re for sale at Hooters—seriously). That’s what eight ladies who used to work at Hooters, specifically 4 Hooters franchises in California, claim in a class action they filed over the working conditions and costs associated with the infamous waitressing positions. Their allegations claim almost Victorian conditions, including having to buy their own trademark uniforms from the restaurants; paying for cash shortages or customer walkouts, or face being disciplined (what could that mean?); and not being paid to work special events. One wonders how much of their earning the waitresses actually take home. You Go Girls!

Many happy returns at Wal-Mart? Wal-Mart’s also back in the news, and the courts, this time the class action complaint alleges that the world’s largest retailer is not living up to the terms of its own return policy. It seems they’re getting petty over sales tax, in that people returning goods to a Wal-Mart store location with a lower applicable sales tax rate than where the merchandise was originally purchased, get reimbursed the lesser sales tax rate. So what happens to the left-over sales tax that’s not reimbursed? Does that go to the government?

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