Settlement - Part 10

Week Adjourned: 11.4.11

Week Adjourned: the weekly wrap of class action lawsuits and settlements, November 4, 2011

Top Class Actions

Could this mean resolution for thalidomide victims?…New research suggests that thalidomide—a drug that caused thousands of horrific cases of deformities in children—caused far more deformities in the U.S. than were reported during the height of the pharmaceutical crisis of the early 1960s.

Invented by German drug company Grunenthal, thalidomide was widely used throughout Europe during the late 1950s and early 1960s, resulting in thousands of deaths and extreme, disfiguring birth defects when used by women during pregnancy. The drug was never approved in the United States, but the new lawsuit filed late October 2011 alleges that as many as 2.5 million doses of the drug were distributed by more than 1,200 doctors to more than 20,000 people, including pregnant women.

Newly discovered and translated documents reveal that Smith, Kline and French (SKF), now owned by GlaxoSmithKline (GSK)conducted a trial of the drug in 1956 and 1957, but buried the evidence, allegedly resulting in a missed opportunity to save thousands of lives.

Instead, according to the filed lawsuit, brought on behalf of 13 men and women with severe birth defects, SKF concealed the results of its trial from the public, allowing another company, Richardson-Merrell, now owned by Sanofi-Aventis to move ahead with large-scale “clinical trials” that involved more than 20,000 people, including pregnant women.

The lawsuit also claims that conclusions made in the early 1960s about the types of birth defects caused by the thalidomide were incorrect.

According to legal counsel, researchers concluded that thalidomide causes bilateral birth defects, such as two missing or shortened arms or hearing loss in both ears. As a result, babies born with unilateral defects, such as one deformed limb, or hearing loss in only one ear were not deemed thalidomide victims, even when their mothers were given the drug while pregnant.

However, new research involving thalidomide as part of a treatment regimen in cancer patients show that many of the assumptions used in the 1960s are incorrect. The thalidomide lawsuit alleges that this new understanding of the drug means that many individuals who experienced unilateral defects may have been misdiagnosed when their doctors told them thalidomide could not have been the cause.

“Among other things we intend to show in court that thalidomide does not work through a neural mechanism as previously thought, but affects the vascular system,” a lawyer for the plaintiffs said.

The complaint claims that the defendants are either guilty of or liable for a civil conspiracy, failing to report and covering up evidence that thalidomide was harmful, especially when taken during the early stages of pregnancy. The lawsuit also says that the defendants were negligent in continuing to manufacture, test and distribute the drug.

Top Settlements

Motrin SJS Verdict. This is one for the books. Let’s hope it makes a difference. On October 3, 2011, a Los Angeles jury returned a record-setting verdict against Johnson & Johnson and their fully owned subsidiary McNeil Consumer Healthcare for $48.2 million—with pre-interest and cost of judgment it’s expected to reach $60 million. The lawsuit alleged that Motrin caused SJS/TENS or Stevens Johnson Syndrome (SJS), also known as Erythema Multiforme, Leyll’s Syndrome, and in its later stages, Toxic Epidermal Necrolysis (TEN). SJS/TEN is a serious and potentially life-threatening disease that causes large areas of the skin to become detached and lesions to develop in the mucous membranes.

The verdict was based on findings of malice towards the consumers of the over-the-counter drug Motrin, specifically for not putting a warning label on the product that could have spared Trejo’s and others’ health. This is believed to be the first verdict of its kind involving punitive damages associated with this over-the-counter temporary pain reliever.

At age 16, Christopher Trejo, who is now 22 years old, took some Motrin as directed on the label for less than one week, but contracted TEN. It caused a severe inside-out exfoliating reaction affecting all of his mucosal membranes, which is equivalent to second- and third-degree burns over 100% of his body. The TEN reaction also caused severe pulmonary damage, near-blindness, infertility, whole-body scarring and a hypoxic brain injury. Trejo’s abilities to see, hear, smell, taste and touch have been severely diminished.

After hearing the evidence, the jury found that the labeling on Motrin was inadequate and should have been changed years earlier to properly educate and alert consumers to the developing signs of severe reactions, which include skin reddening, rash and blisters. Early detection and treatment of these symptoms can prevent TEN or SJS.

Apple Playing the Same Old tune? Apple, Inc., has agreed to settle a consumer fraud class action lawsuit that could amount to over $50 million dollars in payouts—but before you get all excited know this “Apple has agreed to provide an iTunes® Store credit in the amount of $3.25 to all settlement class members who qualify and submit a valid claim form. ” That’s the skinny.

The lawsuit claimed that Apple advertised and sold gift cards which stated that if one purchased and used the gift card, all songs purchased at Apple’s online iTunes® Store would cost 99¢ per song. The lawsuit further claimed that in April, 2009, Apple raised the price of certain songs at the iTunes® store, yet refused to honor the promised 99¢ price when the gift cards were redeemed. In addition, the company continued to sell iTunes® gift cards with the phrase, “Songs are 99¢” printed on them.

Consumers who were overcharged for iTunes songs while using iTunes® 99¢ gift cards are now eligible to receive an iTunes® Store credit in the amount of $3.25 after completing the simple iTunes® class action lawsuit online claim form. Millions of e-mails are currently being sent to persons who may have used affected gift cards to purchase songs from the iTunes® Store.

You can find out how to make an Apple iTunes lawsuit claim here.

Ok—That’s enough for this week. See you at the bar—don’t forget your iPod.

Week Adjourned: 10.28.11

Weekly wrap of class action lawsuits and settlements for the week of October 28, 2011.

Top Class Actions

Blackout at BlackBerry. Well—it took a while—but it’s finally here—BlackBerry maker Research In Motion (RIM) is facing a potential class action lawsuit over the major service interruption which occurred on October 11, 2011. The consumer fraud lawsuit was filed on behalf of all US consumers who are currently under an agreement and using a BlackBerry device.

According to the legal counsel, although the users’ contracts are through Sprint and not RIM, they pay the company fees through the carrier. The lawsuit estimates that RIM takes in roughly $3.4 million in revenue per day from the services paid through the wireless carriers. Better SMS this one.

Hey Oreck, when the Light is on the Germs are…where? If all I need to get rid of the common cold or flu viruses is a vacuum—I wonder what untapped potential lurks within my food processor? Oh, hold on a minute…Oreck is facing a class action lawsuit alleging that claims the company makes about its “flu-fighting” vacuum cleaners and air purifiers are false and misleading. Really?

The federal consumer fraud suit claims that Oreck, in its advertising, states its Halo vacuum and air purifier can “eliminate common viruses, germs and allergens, thereby helping to prevent the illnesses they cause.” The lawsuit claims that Oreck “represented to consumers that the products used scientifically proven technology to eliminate common viruses, germs and allergens, thereby helping to prevent the illnesses they cause.” And, Oreck claims its products can prevent colds, diarrhea, stomach upsets, asthma and allergies. “Unfortunately for plaintiffs and the class, defendants’ claims are not adequately supported by credible, scientific testing or other substantiation, and are not true.”

Thelaw suit goes on to state that “… these representations were false, deceptive and inaccurate. As such, Oreck’s actions violated the Magnum Moss Warranty Act (‘MMWA’), breached express warranties made by defendants, breached implied contractual warranties imposed by law, violated numerous California consumer protection statutes, and violated New York consumer protection statutes and common laws.

Top Settlements

Unpaid overtime to be paid – at last. A $4 million settlement has been reached in an unpaid overtime class action against Sutherland Global Servies Ltd.

The lawsuit, brought by call center telemarketers in 2005, (yes – 6 years ago – not kidding) alleged that Sutherland didn’t pay its call center employees the overtime owed.

The lawsuit was originally brought by two Rochester employees of the Perinton-based process outsourcing company, and grew to 10 named employees and hundreds of unnamed workers, all of whom claimed they regularly worked more than 40 hours a week but were not paid overtime.

Although Sutherland denied the allegations, it agreed to a $4 million settlement to be divided among members of the class and U.S. District Judge David G. Larimer gave final approval to the settlement last week, ending the litigation.

Ok—That’s enough for this week. See you at the bar.

Week Adjourned: 10.21.11

The weekly wrap up of class action lawsuits and lawsuit settlements for October 21, 2011

Top Class Actions

Sex discrimination—still? Really? Yup—and this time the company doing the dirty was owned by a woman—Ruth U. Fertel. However, she passed away in 2002, and it looks like things have regressed since then. And the company is….Ruth’s Chris Steak House. Four former and current employees filed a sex discrimination class action alleging they were discriminated against for pay and promotions.

The women’s jobs ranged from national sales manager to bartender, and they brought the suit in October 2010. The United States District Court for the District of Columbia has now granted the Ruth’s Chris Steak House discrimination suit plaintiffs the right to add class action claims to the lawsuit.

The women also allege that they suffered sexual advances in the work environment at the steak house chain, including physical groping, sexual innuendo and retaliation against those who complained or reported sexual harassment. Hey—the meat’s on the plate boys…

Top Settlements

Who says the little guy can’t win? A $160k settlement has been awarded to a former employee of retail giant Target, ending his discrimination lawsuit against the company. Jeremy Schott, who filed the lawsuit, took medical leave in 2004 due to his experiencing a seizure. He was 29 years old at the time. In his lawsuit, he alleged that when he returned to work his weekly hours had been reduced from 17 to eight. The U.S. Equal Employment Opportunity Commission sued Target on Schott’s behalf, alleging a violation of the Americans with Disabilities Act (ADA).

Target’s counsel contended that Schott’s work hours were decreased because of poor performance and a lack of motivation. The parties agreed to settle for $160,000. As part of the settlement Target has agreed to designate an ADA coordinator and implement a policy regarding reasonable accommodations.

Defective Pool Slide Settlement. This is very sad… The widower and child of a young woman who died as a result of a defective inflatable pool slide purchased from Toys “R” Us have been awarded a $20.6 million settlement this week by the judge hearing the personal injury lawsuit.

The accident that took Robin Aleo’s life happened five years ago, when she was just 29 years old. She had an 18-month old daughter at the time. Aleo was at a pool party at a relative’s home when she decided to go down the six foot Banzai Falls slide head first. When she neared the bottom the slide suddenly bottomed out and Aleo hit her head on the edge of the pool, breaking her neck and sending her to hospital unable to breathe on her own and paralyzed. She died at the hospital the following day.

According to a report in the EagleTribune, Aleo is the second person to have allegedly been paralyzed by an incident involving the Banzai Falls slide. According to court records, more than 4,000 of the slides were sold nationwide, without having been tested to see if it met federal safety standards.

Ok – That’s it for this week. See you at the bar.

Week Adjourned: 10.15.11

Top Class Actions

Well, Hello…Something fruity is going on here—or not as the case may be… A proposed consumer fraud class action lawsuit has been filed against General Mills alleging the company misled consumers about the nutritional and health qualities of its fruit snacks, specifically Fruit Roll Ups, Fruit by the Foot, Fruit Gushers, as well as other similar products.

The lawsuit claims that between October 15, 2005 to the present (the “class period”) General Mills engaged in a widespread marketing campaign to mislead consumers about the nutritional and health qualities of its Fruit Snacks. Specifically, the suit states, “Defendant made misleading statements that its Products were nutritious, healthful to consume, and better than similar fruit snacks.”

The suit further states “In fact, Defendant’s Fruit Snacks contained trans fat, added sugars, and artificial food dyes; lacked significant amounts of real, natural fruit; and had no dietary fiber. Thus, although the Products were marketed as being healthful and nutritious for children and adults alike, selling these Fruit Snacks was little better than giving candy to children.” Umm…Maybe suitable for Halloween treats?

Top Settlements

Did your internal capacitor prematurely fail? No—I mean the one in your TV! On October 3, 2011, preliminary approval was granted to a proposed defective product class action settlement with Philips Electronics North America Corporation (“Philips”).

The settlement proposes to resolve lawsuits that allege certain Philips and Magnavox televisions suffer from a defect that causes internal components (called capacitors) to prematurely fail, resulting in the televisions becoming inoperable. The proposed settlement would entitle qualifying settlement class members, who purchased new or received as a gift new one of the Philips or Magnavox plasma televisions with the model numbers listed below, to monetary benefits or vouchers.

The model numbers of the Philips and Magnavox plasma televisions included in the proposed class action settlement are:

50PF9830A/37 42PF9630A/37

50PF9731D/37 42PF7321D/37

50PF9631D/37 42PF7320A/37

50PF9630A/37 42PF7220A/37

50PF9431D/37 42PF5321D/37

50PF7321D/37 50MF231D/37

50PF7320A/37 50PF7220A/37

In addition, only those television sets with a serial number reflecting a manufacturing date between November 1, 2005 through December 31, 2006 qualify for participation in this settlement.

The Court has scheduled a hearing in December to determine whether to grant final approval to the settlement.

To be eligible to receive the benefits made available pursuant to this settlement, class members must submit to the claims administrator a claim form that is postmarked by February 28, 2012.

To obtain additional information about the settlement, to determine whether your television qualifies, or to obtain a claim form, you can visit the settlement website at PhilipsPlasmaTVsettlement.com. You can also contact the settlement administrator by calling (855) 477-4407, or by writing to Philips Plasma TV Settlement, c/o Dahl, Inc., P.O. Box 2061, Faribault, MN 55021.

Service gratuity not quite included? This one’s for anyone who ever worked in the service industry and had their tips withheld—and I’m sure there’s no shortage of you out there… A $7 million settlement has been reached by current and past employees of the Cranwell Resort, Spa, & Golf Club in Lenox, ending an employee class-action lawsuit that alleged the resort’s management illegally withheld the workers tips.

If the settlement receives final court approval, approximately 700 food, beverage, and spa employees who worked at the upmarket Berkshire resort between 2001 and 2011 will share in the money. A final settlement hearing is scheduled for November 2011. This is the second of two lawsuits, filed over four years ago, claimed that the employees were not paid the full service charges that were added to hotel bills, which is against state law.

Ok—That’s it for this week. See you at the bar—where I will be repairing my personal, internal capacitor.

Week Adjourned: 10.7.11

Weekly wrap-up of new lawsuits and settlements as of October 7, 2011

Top Class Actions

Ok, this one’s not a Class Action, but it’s news you should know about…Actos (pioglitazone) made the news this week with the launch of a nationwide Actos lawsuit filed by people who have taken the diabetes medication and allege it is associated with the development of bladder cancer. Although the risk for bladder cancer isn’t exactly news, the filing of the lawsuit is—it is not a class action, rather each qualifying individual will seek damages consistent with the merits of his or her individual case.

If you have or are taking Actos and are interested in this suit, you must meet basic criteria including that you have actually taken the drug and developed bladder cancer, sadly.

Actos is one of the most popular diabetes drugs in the world. Recently, however, studies have shown that Actos use is linked to serious side effects, particularly bladder cancer. These studies show that the longer one takes Actos, the greater the risk of developing bladder cancer. As a result of this mounting scientific evidence, the FDA has issued warnings regarding Actos and bladder cancer. In France, the French Agency for Safety of Health Products recalled Actos from the market on June 9, 2011. Regulators in Germany recommended that physicians not prescribe it.

FYI—time limits exist that limit the amount of time you have to join the lawsuit, so if you think you may have a claim check it out now.

Top Settlements

Oh Happy Honda—or not—as the case may be. A federal court has approved a settlement of a defective product class action filed against American Honda Motor Co. Inc. The lawsuit alleges that Honda failed to fix or warn customers that the sun visors in its hugely popular Honda Civics were defective.

Specifically, the Honda Civic sun visor lawsuit claims that defects on the sun visors on some Honda Civics caused the visors to split apart, possibly impairing their function. The class action lawsuit also alleges that Honda should have corrected the defective sun visors or should have disclosed the defect at the time of sale. Yes, but that would have been the right thing to do.

You are eligible as a class members of the “Honda Civic sun visor class action” if you are a U.S. resident who are current or former owners or lessees of one of many Civic models, including but not limited to all 2006-08 Civic. There are MANY more models which you can check out here.

Here’s another relevant detail, as part of the settlement, Honda has agreed to extend the warranty on sun visors on Class Vehicles to seven years or 100,000 miles, whichever first occurs. Wait—there’s more—Honda has also agreed to reimburse Class Members for out-of-pocket expenses incurred prior to the Effective Date of the settlement for the repair or replacement of a sun visor or sun visors on Class Vehicles. If you are a class member, you are eligible for a cash reimbursement if:

The Class Member has paid out-of-pocket to repair or replace the sun visor or sun visors in his or her Class Vehicle prior to the Effective Date of the settlement;
The cost of repair or replacement was not previously reimbursed by insurance, warranty, or goodwill; and
The Class Member mails a claim form within two years from the date of the sun visor repair or replacement, or within 90 days of the Effective Date of the settlement, whichever period of time is longer.

Another one for the books—the real estate trust Dynex Capital Inc, has agreed to pay $7.5 million to settle a New York class action lawsuit over securities in the sale of bonds backed by thousands of loans on manufactured homes.

In March 2011, U.S. District Judge Harold Baer issued one of the few decisions to ever have certified a class of investors pursuing federal fraud claims in connection with the sale of asset-backed bonds. The case is an important one for investors because it provides a road map for prosecuting fraud claims involving other asset backed bonds on a class-wide basis.

The lawsuit was filed in 2005 by Teamsters Local 445 Freight Division Pension Fund and Dynex lost multiple attempts to have the case thrown out of Court. The settlement still must be approved by Judge Baer of the U.S. District Court, Southern District of New York.

The Plaintiff charged that Dynex, its subsidiary Merit Securities Corp., and senior executives at both companies lied about the quality of mobile home loans that were collateral for bonds sold as Merit Series 12-1 and Merit Series 13 from Feb. 7, 2000 to May 13, 2004.

According to the lawsuit, Dynex and its representatives made misleading statements that artificially inflated the value of the bonds, understated the amount of delinquencies and repossessions affecting the bonds and violated its own publicly stated underwriting guidelines in making poor-quality loans. Defendants also made false statements about the deteriorating performance of the downgraded bonds because the company was scrambling to protect itself in the midst of a dramatic financial collapse, the lawsuit charged.

Ok—That’s it for this week. See you at the bar—that’s poolside baby.

Week Adjourned: 9.23.11

Weekly roundup of latest class action lawsuits and settlements, September 23, 2011

Top Class Actions

Engine Trouble for Mercedes-Benz? Well, last week we reported on a proposed settlement between Mercedes Benz and some unhappy customers who allege consumer fraud over Mercedes Benz USA failing to inform buyers of its luxury vehicles with analog Tele Aid communication systems that the company planned to phase out the analogue emergency communications systems altogether on its models from 2003-2006.

This week, Mercedes Benz is back on the books with a defective product class action. The allegations? Premature wear taking place with its M156 engines, specifically the cam shafts. The suit alleges that the premature wear in the M156 V8 (63 AMG) engine leads to engine problems and in some instances engine failure.

The lawsuit states that the camshafts used are made of cast nodular iron but the valve lifters used are made of 9310 grade steel, and that the combination of these metals as designed is contributing to premature wear of the M156 motors. The suit alleges that Mercedes and AMG (Aufrecht Melcher Grossaspach), a division of Mercedes that sells the high-end M156 have known about this issue since 2007. According to the lawsuit, the luxury vehicles sell for between $60K and $200K. OK, for that kind of money I would not be expecting engine problems – ever.

Top Settlements

Libby Montana Asbestos Settlement. This is a biggy and a long time in coming…long-suffering, potentially terminally ill residents of Libby, Montana, suffering from asbestos-related illnesses including asbestosis and mesothelioma have been awarded a $43 million settlement by a judge in that state. The people were made ill as a result of their exposure to asbestos from the infamous W.R. Grace asbestos mine in Libby, Montana. Reports indicate that a large part of the settlement will be paid by Warren Buffett’s Berkshire Hathaway.

The settlement resolves a lawsuit filed against the state and the mine by former miners and their families who accused the state of failing to properly oversee the mine or warn workers of dangers there. Miners had originally sued W.R. Grace but after the company filed for Chapter 11 bankruptcy in 2001, they sued the state for failing to adequately protect them, court documents state.

Some 1,400 people are expected to receive payouts from the settlement, which was approved September 8, by Montana District Court Judge Jeffrey M. Sherlock, ending ten years of legal wrangling. However, while the settlement ends numerous cases and claims against Montana it “expressly reserves their claims against all other responsible parties,” according to the agreement.

Many of the people who suffered asbestos exposure from the Libby mine are now over the age of 65, and others have since died of asbestos-related diseases such as asbestosis and cancers such as mesothelioma, records show. It may be a good ending but it’s certainly not a good story.

Snap, Crackle…Pop! Goes the Immunity Claim… Ok—hands up—how many of you actually believe a breakfast cereal could boost your immune system? Really.

But no matter, as long as the claim is made…

Kellogg, finding itself in a position of having to defend such a claim, to a potential class of consumers who filed a consumer fraud lawsuit, has proposed a settlement… cheaper than going to court after all.

In a nutshell, the lawsuit claims the Kellogg Company falsely advertised that Rice Krispies cereal and Cocoa Krispies cereal supported a person’s immunity system despite not having competent clinical evidence to support the claim. Now there’s a surprise.

So—if you purchased Kellogg’s Rice Krispies Cereal or Cocoa Krispies Cereal between June 1, 2009 and March 1, 2010, you may be entitled to a cash refund from a class action settlement.

The only way to get a cash refund: Claim Forms must either be submitted online or postmarked by November 16, 2011. If you wish, you can get out of the lawsuits and the settlement. Get no cash refund. If you wanted to exclude yourself, you must have sent an request postmarked no later than July 30, 2011. The deadline to file an objection to the settlement was July 25, 2011. If you do nothing, you will get no cash refund. However, any leftover money will be donated to one or more charities.

OK. That’s it for this week. See you at the Bar. (I’ve been told a Bloody Mary is also good for the immune system…)

Week Adjourned: 9.16.11

Weekly wrap up for September 16, 2011 of the latest class action lawsuits and settlements

Top Class Actions

Destination Maternity could find itself rerouted—make that destination courthouse as they got hit with an employment class action lawsuit this week. Why, you ask? Sadly, nothing very original. The lawsuit claims that the international retail clothing store violated both federal labor laws and New York labor laws by routinely requiring its sales associates to undergo off-the-clock bag checks and security screenings for which they were not compensated.

The lawsuit also claims that Destination Maternity, A Pea in the Pod, Motherhood Maternity (what other kind is there?), and Edamame stores all require their sales associates to have their bags checked before they leave the stores to have lunch and before they go home for the evening. These checks occur off-the-clock, adding as much as 30 minutes to sales associates’ workdays for which they receive neither overtime nor straight time pay. Of course the point of the lawsuit is to recover the wages and overtime pay each sales associate is due under the law.

So, if you work or have worked as a sales associate at either a Destination Maternity, A Pea in the Pod, Motherhood Maternity, or Edamame store, you may request to be included in the proposed class. Check it out.

Top Settlements

The Best or Nothing? Guess it’s nothing… Mercedes Benz will be shelling over some cash shortly, following federal approval of a $15 million settlement of a recent consumer fraud class action lawsuit. It seems that Mercedes Benz USA failed to inform buyers of its luxury vehicles with analog Tele Aid communication systems that they planned to phase out the analogue emergency communications systems altogether on its models from 2003-2006. Yes—that could influence your decision to buy, no doubt.

Back to the good news. Well, sort of. Under the terms of the Mercedes-Benz settlement purchasers of 2003 to 2006 Mercedes-Benz models with the analog Tele Aid systems installed in their vehicles could receive either a certificate for up to $1,300 off a new vehicle or $650 in cash. Ummm.

You’re Forgiven! I love this one! Thousands of people have been forgiven their debts in a historical unfair business class action settlement reached last Friday in Maryland. The class action lawsuit was brought by Jason Hauk and Freddy Velazquez who led the class action lawsuit, against LVNV Funding LLC, a Greenville, SC-based company that buys consumer debt.

According to the terms of the settlement some 3,500 people in the class will receive about $2000 each, for a total of $7 million. The total settlement forgives about $10 million in debt, according to filings in U.S. District Court in Baltimore.

Further, LVNV will not pursue the 3,500 debtors in order to collect the debt, nor will they be able to sell those debts to other third party collection agencies. And LVNV have to remove information it gave to the major credit bureaus for each of those debtors, a step taken to improve their credit ratings. The settlement is being hailed as historic, and a major win for the class. You gotta love the system when it works!

OK. That’s it for this week. See you at the Bar—and safe travels getting home.