Week Adjourned - Part 42

Week Adjourned: 1.15.10

Top Class Actions

New meaning to Baggage Claim? Delta Airlines and AirTran Airways got hit with a class action lawsuit this week, for nickel and diming passengers on baggage fees. You know—the extra money you have to pay to check your luggage that contains all the stuff you can no longer take on board in your carry-on luggage…

Bottom line—the suit alleges price fixing by the two airlines. “The suit accuses the two carriers of colluding to charge fliers a $15 first checked baggage fee. The complaint claims the two carriers agreed to charge the baggage fee in highly competitive markets because neither could risk losing business by charging the fee on their own.”

Given that there are tens of thousands of us who fly across the US every day—I think the potential class of plaintiffs submitting a claim could be huge on this one—makes you wonder if you’d actually get $15 back, which is what the lawsuit is seeking…

Sterling Performance? Employees at Sterling Savings Bank, a Spokane, Washington-based institution, got wise to their employers and filed a class-action lawsuit claiming that the bank and its holding company, Sterling Continue reading “Week Adjourned: 1.15.10”

Week Adjourned: 12.18.09

Top Class Actions

Coulda Used Employee Directory Assistance? Seems the masters of directory assistance could’ve used some help with their own employee directory—or at least with how they classified certain employees. So, they finally called “overtime” on unpaid overtime at AT&T and its subsidiaries BellSouth Telecommunications Co, and Pacific Bell Telephone Co. The telecom giant got hit with a couple of class action lawsuits this week, alleging that they withheld as much as $1 billion in overtime wages from 5,000 plus first level managers who worked for PacBell in the states where BellSouth does business.

Although most of us can likely guess what the charges are, just for the record AT&T allegedly violated the Federal Fair Labor Standards Act (FLSA), as well as California State Laws by deliberately misclassifying thousands (yes, thousands) of level one managers as being exempt from overtime wages. Yeah, that would probably save shareholders a bundle. Other allegations include not paying for meal and rest breaks—how predictable.

So, who’s eligible? There are two classes:

1) The “Off-the-clock” class consists of “All First Level (or Level One Managers) employed by BellSouth from December 2006 and thereafter who were assigned technicians as direct reports Continue reading “Week Adjourned: 12.18.09”

Week Adjourned: 12.11.09

Top Class Actions

You Know the Drill…? Apparently not if you’re one of the shareholders who allege, among other things that when Canadian Superior Energy drilled off the shores of Trinidad (the “Intrepid” Block 5(c)) their execs didn’t disclose that the discovered reserves were below the economic threshold for development. Canadian Superior Energy, Inc. got hit with a securities class action this week. The allegations? That certain of Canadian Superior’s former executives violated federal securities laws.

The lawsuit was filed in the United States District Court for the Southern District of New York on behalf of anyone who purchased the common stock of (NYSE Amex: SNG) between January 14, 2008 and February 17, 2009, inclusive. If you have this stock as part of an employee shareholder package—you may also be eligible for the class action under something known s ERISA…

Top Settlements

This Land is Your Land, but… The US government has announced that it will pay (or pay back?) Continue reading “Week Adjourned: 12.11.09”

Week Adjourned: 12.4.09

Top Class Actions

Amazon Rounds Out? A lawsuit seeking class action status was filed by a former employee of Amazon.com this week. He’s alleging that Amazon’s warehouse workers across the country have not been properly paid for overtime, including himself, obviously.

Richard Austin worked as a “warehouse associate” (why is everyone an associate today? Is that corporate code for no benefits, no overtime, no complaining…?) at Amazon’s Nevada Distribution Center between September 2008 and August 2009. He claims that warehouse “associates” were required to clock in and out before their scheduled start and end times, and the company then rounded their times to the nearest quarter hour—benefitting the company of course.

And, the lawsuit claims these practices took place in Amazon.com warehouses in Texas, Virginia, Arizona, Delaware, Indiana, Kansas, Kentucky, Pennsylvania, and Nevada. Wonder how long this one will take.

Top Settlements

Big Box Retailer Settles Big? This one made headlines all over the place. Wal-Mart agreed this Continue reading “Week Adjourned: 12.4.09”

Week Adjourned: 11.27.09

Top Class Actions

Well, it certainly didn’t take long—48 hours maybe—after a US/Canada recall of over 2 million Stork Craft drop side cribs was issued that a class action lawsuit was filed.

Filed on behalf of all US and Canadian consumers who purchased baby cribs manufactured by Stork Craft Manufacturing, the lawsuit is seeking financial compensation for the owners of those cribs.

The recall was big news, not simply because of the number of cribs recalled, but sadly, and more importantly because of the incidents reported to the CPSC and Health Canada that prompted the recall. Specifically, 4 deaths by suffocation in the US and numerous serious falls—110 incidents in total.

Important to note—the Stork Craft cribs may have been sold under various brand names such as Fisher-Price. Other defendants named in the suit include Sears Canada, and both the US and Canadian arms of Fisher-Price and Wal-Mart. Toys R Us is named as a defendant in Quebec.

Top Settlements

Breast Cancer Victims win Big Against Hormone Replacement Therapy Maker

Two women who each filed a lawsuit against pharmaceutical companies that make hormone replacement therapy (HRT) have both won their cases with awards of $34 million to one and $78 million to the other.

On November 20, Donna Kendall was awarded over $6 million in compensatory damages Continue reading “Week Adjourned: 11.27.09”

Week Adjourned: 11.20.09

Hey—is it Revenge of the Geek week?

Top Class Actions

Microsoft Boxing Out Gamers? Microsoft got hit with a possible class action this week, over allegations that it unfairly banned Xbox Live Servicefrom subscribers with modified Xbox consoles.

The issues relate to modifications made to Xbox consoles by tens of thousands of Xbox owners, which are against the terms of use for Xbox/Xbox Live, and Microsoft’s decision to ban those consoles. The lawsuit—which is now seeking lead plaintiffs—alleges that the timing of the ban was designed to avoid revenue losses that would have resulted had Microsoft implemented the ban prior to the release of the blockbuster Call of Duty: Modern Warfare 2 game, or less than two months after the release of Halo 3: ODST.

The class action includes anyone who has had their Xbox console modified and banned from Xbox Live, and did not receive a refund for the prorated time left on the Xbox Live subscription.

YoCash is OurCash Now? Facebook and Zynga are also facing a class action, alleging that they Continue reading “Week Adjourned: 11.20.09”

Week Adjourned: 11.13.09

Top Class Actions

Sued for SUA? Toyota…Unintended Acceleration Fast-Tracked to Class Action. A national class action was filed this week against Toyota Motor Corporation on behalf of Toyota and Lexus owners, alleging that the cars are prone to ‘sudden unintended acceleration’ (SUA).

So what the heck is SUA? Well, in short, a situation where your car takes off or accelerates or gets stuck in ‘go’ mode—without intention—your intention.

As yet there’s no definitive explanation for SUA. Toyota has reportedly cited that it could be due to ill fitting floor mats getting stuck around the gas pedal…but the lawyers aren’t buying. Legal Continue reading “Week Adjourned: 11.13.09”

Week Adjourned: 11.06.09

Top Class Actions

Business Ethics 2009: “Conspiring to Manipulate”—it’s sort of the theme in this week’s class actions…read on…

Homeowners High-Jacked on Home Appraisals? A Central Florida homeowner forced into foreclosure has filed a class-action lawsuit against KB Home, Countrywide Financial and LandSafe Appraisal Services.

The allegations? Price-fixing, in a nutshell, or “conspiring to manipulate.” The suit claims that the three companies conspired to rig housing prices in Florida, South Carolina and North Carolina, costing home purchasers millions of dollars, and fueling the collapse of the region’s housing market. That’s no mean feat.

The companies managed this, allegedly, by using a well-planned scheme to control the typically independent appraisal process, jacking up home values, which, in turn, were used to determine the value of other homes sold by KB, affecting thousands of homeowners.

If you live in Florida, South Carolina or North Carolina and used Countrywide and LandSafe Continue reading “Week Adjourned: 11.06.09”

Week Adjourned: 10.30.09

Bit of irony, no? The Age of the Overtime Class Action…

Top Class Actions

Wells, It’s Official… Wells Fargo is now facing a wages and overtime class action filed by technical support staff who allege that they were not paid for time worked in excess of 40 hours per week.

The suit covers all network engineers, operating systems engineers, information security analysts, technical service specialists, systems support analysts, web engineers, web support engineers, web systems engineers, operating systems analysts (level 2), systems QA analysts (levels 2 or 3), computer operations analysts (levels 3 or 4), database administrators (levels 2 or 3), and applications systems engineers (level 3) who worked for Wells Fargo as exempt employees at any time during the past three years anywhere in the United States. It is estimated that about 3,000 employees are eligible to participate in the unpaid overtime class action.

Eligible employees have 75 days to join the lawsuit.

BOA Constricting Overtime Pay? And then there’s Bank of America: A lawsuit was filed this week on behalf of telephone-dedicated employees for unpaid wages and overtime worked at company call centers across the country. The lawsuit was filed as a collective action, which Continue reading “Week Adjourned: 10.30.09”

Week Adjourned: 10.23.09

Top Class Actions

Wynn Gambling with Employees Health? After all the noise about second hand smoke being a known risk factor for cancer, you would think the last thing an employer would want to do is wilfully expose its employees to the carcinogen. At the very least, why risk the lawsuit, right?

Wrong. The employees at Wynn Las Vegas Hotel and Casino filed a class action lawsuit this week, alleging that Wynn failed to provide a safe work environment for its employees and failed to protect them from the effects of second-hand smoke.

According to the suit, the risks are exacerbated for employees because not only is smoking permitted 24 hours a day, 7 days a week, but it is also encouraged. In some cases the casino gives cigarettes away to gamblers on the casino floor. What? That’s bad judgement no matter how you look at it.

The suit further claims employees that complain about the smoke risk losing their jobs. So, let’s see, you have to choose between risking your health or your livelihood. Or sue. Well—I’d choose the last option as well.

Top Settlements

New Math on Big Bank Fees: Big Banks = Big Fees = Big Lawsuits = Big Settlements. At Continue reading “Week Adjourned: 10.23.09”