Asbestos Settlement

Week Adjourned: 1.24.14 – Apple, Truck Stop Fees, $27.5M for Asbestos

The week’s top class action lawsuits including Apple, Comdata truck stop fees, and asbestos mesothelioma hits a young victim.

Top Class Action Lawsuits

Bad Apple! Tech giant Apple Inc, got slapped with a class action lawsuit this week, you may have seen it, alleging the company illegally collected and sold its customers’ personal information. Filed in Boston by plaintiffs Adam Christensen, Jeffrey Scolnick, and William Farrell, the Apple lawsuit alleges “Apple compelled its customers to provide their zip codes when making credit card transactions at Apple stores.” Here’s hoping they don’t get hacked!

This type of data collection is prohibited by state law which makes it unnecessary for customers to submit any personal identification information (PIN) that’s not directly necessary to the transaction. Apple collected the zip codes of their customers in violation of this statute, the plaintiffs argue, then sold that data to third-party companies for marketing purposes.

According to the Apple lawsuit, plaintiffs Adam Christensen, Jeffrey Scolnick, and William Farrell shopped for and purchased items from Apple retail stores in Massachusetts between 2012 and 2013. “To consummate each purchase, plaintiffs elected to use their credit card as their chosen form of payment,” the lawsuit states. “As a condition of using their credit cards, plaintiffs were required by Apple to enter personal identification information associated with the credit card, including their full and complete zip codes. Apple would not allow plaintiff to complete their purchases without supplying such information.”

“Apple is not required by credit card issuers to require this information from consumers,” the lawsuit claims, which suggests that Apple is in violation of state law.

The lawsuit notes that Apple acknowledges openly on their website that they reserve the right to “make certain personal information available to strategic partners that work with Apple to provide products and services, or that help Apple market to customers.” “First, Plaintiffs and the Class have been injured because they have received unwanted marketing materials from Apple as a result of having provided their zip codes when using credit cards at Apple. Second, Plaintiffs and the Class have been injured by Apple’s sale of Plaintiffs’ and the Class’ PII to third-parties, which was collected by Apple in violation of Mass. Gen. Laws chapter. 93 § 105(c).And third, Plaintiffs and the Class have been injured because Apple misappropriated their economically valuable PII without consideration,” the lawsuit states.

If the court agrees, Apple would be deemed responsible for committing what the state of Massachusetts considers an “unfair and deceptive trade practice.” The plaintiffs are reportedly asking Apple to pay $75 per violation, as well as interest on those damages, litigation expenses, attorneys’ fees, and “such other and further relief as may be just and proper.” Apple would also be required to stop collecting PINs across the state.

So—one to watch…

Top Settlements

Relief at the Truck Stop? A massive $130 million antitrust settlement made the books this week, potentially affecting some 4,000 independent truck stops and other retail fueling merchants. (That’s alota dosh!) The antitrust lawsuit is against Comdata Inc., the leading trucker fleet payment card issuer, and three national truck stop chains for a combined amount of $130 million plus valuable prospective relief in the form of enforceable changes to certain of Comdata’s allegedly anticompetitive business practices.

This lawsuit has been in the works since 2007!

The back story—Comdata operates a payment card network used by over-the-road truckers and fleets to purchase fuel and other items at truck stops and other retail fueling merchants. The lawsuit alleged that Comdata imposed anticompetitive provisions in its agreements with class members that artificially inflated the fees these truck stops and other retail fueling merchants paid when accepting the card for payment. The lawsuit also challenged allegedly anticompetitive arrangements among Comdata, its parent company Ceridian LLC, and three national truck stop chains: defendants TravelCenters of America LLC and its wholly owned subsidiaries, Pilot Travel Centers LLC and its predecessor Pilot Corporation, and Love’s Travel Stops & Country Stores, Inc.

The Plaintiffs alleged that Comdata, with the assistance of its parent, Ceridian, engaged in anticompetitive behavior with the truck stop chains in which the chains agreed not to compete with Comdata in exchange for Comdata providing the chains with a transaction fee advantage versus their smaller, independent truck stop competitors. Plaintiffs alleged that this conduct insulated Comdata from competition, enhanced its market power, and led to independent truck stops’ paying artificially inflated transaction fees.

If its approved, these settlements would resolve all claims of the named Plaintiffs and the proposed class in exchange for aggregate payments from all defendants totaling $130 million plus a legally binding commitment from Comdata for prospective relief in the form of changes to certain allegedly anticompetitive contractual provisions in its merchant agreements. Plaintiffs and Co-Lead Class Counsel believe that this relief will promote competition among payment cards used by over-the-road fleets and truckers and lead to lower merchant fees for the independent truck stops.

FYI—the Comdata truck stop fee settlement approval process is expected to take several months. The named Plaintiffs and proposed Class representatives are Marchbanks Truck Service, Inc. d/b/a Bear Mountain Travel Stop, Gerald F. Krachey d/b/a Krachey’s BP South, and Walt Whitman Truck Stop, Inc.

Asbestos Settlement for Young Victim. This is sad, bittersweet Justice. Forty-year old John Panza, an English professor at Cuyahoga Community College and drummer with a popular Cleveland rock trio, Blaka Watra, has been awarded $27.5 million in settlement of his asbestos mesothelioma lawsuit. The settlement is reportedly the largest award of its kind ever in Ohio.

Panza was diagnosed with mesothelioma in 2012, resulting from prolonged second-hand or take home exposure to clothing worn by his father, who picked up the asbestos dust at his job at the Eaton Airflex brake company. John Panza Sr., 52, died of lung cancer in 1994. He had worked at Airflex for 31 years, and previously served as president of the company’s union.

The asbestos brake pads were manufactured by the former National Friction Products Corp. John Jr. and his wife Jane, filed suit against Kelsey-Hayes Co., the Michigan-based successor to National Friction Products, and the lone remaining defendant at the time of the verdict, returned December 18, 2013.

The verdict breaks down the settlement as economic damages of $515,000 and $12 million in non-economic damages. The jury also awarded Jane Panza, who is just 37, $15 million for her loss of consortium claim, or the deprivation of the benefits of a family relationship due to her husband’s asbestos mesothelioma.

The eight-member jury attributed 60 percent of the liability to Kelsey-Hayes, finding that the company’s brake products were defective and primarily responsible for causing Panza’s cancer.

The Panza’s testimony was emotional, according to the judge. The couple went to high school and attended college together They have a 6-year-old daughter.

Prior to the trial, Panza underwent four separate surgeries and almost died, said John Mismas, one of Panza’s lawyers. Panza’s right lung was removed, and the invasive cancer is almost certain to eventually spread to his left lung, he said. “He’s going to die,” Mismas said.

Ok Folks, That’s all for this week. See you at the bar.

Week Adjourned: 6.14.13 – Class Action against Obama?

Takes a set of you-know-what to sue the President, but… That’s the lead story in this week’s wrap of top class action lawsuits and settlements, for the week ending June 14, 2013.

Top Class Action Lawsuits

If You’re Gonna Sue, Sue Big. In the unlikely event any of us were napping last week—and missed this—it’s among the first of what’s likely to be an onslaught of wiretap class actions resulting from, well, surveillance activities undertaken by the federal government. First up to bat, these plaintiffs are certainly not shy about naming defendants: The wiretap class action names President Obama, US Attorney General Eric Holder, the director of the National Security Agency (NSA), the NSA, the CEO of Verizon, the US Department of Justice, and Judge Roger Vinson of the US Foreign Intelligence Surveillance Court as defendants. Judge Vinson is named as a defendant because he signed the secret order directing Verizon to turn over all phone records “on an ongoing daily basis.”

According to the wiretap class action lawsuit, this constituted an “outrageous breach of privacy” and a violation of Verizon users’ “reasonable expectation of privacy, free speech and association, right to be free of unreasonable searches and seizures, and due process rights.” The wiretap lawsuit challenges the legality of the NSA’s “secret and illegal government scheme to intercept and analyze vast quantities of domestic telephone communications.”

The potential class action lawsuit, entitled Klayman, et al. v. Barrack Hussein Obama II, et al., Case No. 13-cv-00851, U.S. District Court for the District of Columbia, seeks to represent a class of American citizens in the United States and overseas who are either curren or previous Verizon customers, including, but not limited to customers between April 25, 2013 and July 19, 2013.

The class is seeking a cease-and-desist order to prohibit the collection of Verizon customers’ phone records and more than $3 billion in damages and attorney fees. Plaintiffs are represented by Larry Klayman of Freedom Watch Inc.

Here we go!

Top Settlements

USPS Workers Get Special Delivery? Looks like the US Postal Service was not delivering the goods for all its employees: the agency has agreed to a $17.3 million settlement in the discrimination class action brought by its employees with disabilities.

Some 41,000 past and current postal service employees are involved in the discrimination class action, which details complaints over restricted work hours from 2000 through to 2012. These reduced work hours are allegedly due to employees’ permanent disabilities. The lawsuit alleges the practice violated the 1973 Rehabilitation Act, which bars federal agencies from discriminating against disabled employees.

The USPS class action settlement has received preliminary approval from an Equal Employment Opportunity Commission (EEOC) administrative judge and is expected to receive final approval from the EEOC in July. If finalized, class members may be eligible to receive up to $300 per employee—but it depends on how many people file claims.

Although the settlement still needs final approval from the EEOC, members of the class are supposed to get formal notification of the agreement next week.

Second-Hand Asbestos Settlement. Good news bad news…as the asbestos debacle continues. On June 5, 2013, an Oakland jury completed its award to plaintiffs Rose-Marie and Martin Grigg of a total of $27,342,500 in damages stemming from Mrs. Grigg’s asbestos mesothelioma (Alameda County Superior Court Case No. RG12629580).

Mrs. Grigg, now 82, was exposed to asbestos in the course of shaking out and washing her husband’s work clothing. Mrs. Grigg’s then husband was an insulator for a company that used Owens-Illinois, Inc. Kaylo brand insulation products from 1950-1958.

Evidence introduced during trial showed that Owens-Illinois, Inc. knew that asbestos exposure could cause death as early as the 1930s and that test results on Kaylo showed that exposure to the asbestos in the product could cause fatal disease.

According to court documents, Owens-Illinois nonetheless advertised Kaylo as “non-toxic” and did not state that the product contained asbestos. Kaylo was packaged in boxes without warning about the health hazards associated with asbestos exposure.

The jury found that Owens-Illinois, Inc. manufactured a defective product, failed to adequately warn Mrs. Grigg, was negligent, and intentionally failed to disclose information about Kaylo-related health hazards to Mrs. Grigg. The jury also found that Owens-Illinois, Inc. acted with malice, oppression or fraud toward Mrs. Grigg. The jury awarded Mrs. Grigg $12,000,000 in damages for her pain and suffering, Mr. Grigg $4,000,000 in damages for his loss of consortium, and $342,500 in economic damages. The jury also levied an $11,000,000 punitive damages verdict against Owens-Illinois, Inc.

Okee dokee—that’s it for this week—happy Father’s Day and safe weekend to you all—see you at the bar!

(Image: northjersey.com)

Week Adjourned: 12.14.12 – NHL & MBL, Norcold, Asbestos

The weekly wrap of class action lawsuits and settlements for the week ending December 14, 2012. Top stories include NHL, MBL, Norcold and asbestos litigation.

Top Class Action Lawsuits

It’s face-off time! …for the NHL, MBL and broadcasters Comcast and DirecTV. This week, an antitrust class action lawsuit against the National Hockey League and company, got the green light to move forward.

What’s the beef? Well, the plaintiffs allege the defendants have created a monopoly over sports broadcasts that forces consumers to pay high prices to watch games. Brought on behalf of telecast subscribers, the NHL & MBL lawsuit claims the defendants used anti-competitive practices in order to control the broadcasting market, enabling them to charge inflated prices for sports telecasts. Doesn’t sound improbable.

Specifically, the lawsuit, entitled, Laumann et al. v. National Hockey League et al., Case No. 12-cv-01817 states “The defendants have accomplished this elimination of competition by agreeing to divide the live-game video presentation market into exclusive territories, which are protected by anti-competitive blackouts [that don’t allow certain games in certain markets to air].” Be interesting to see who scores in this one!

Own a Norcold refrigerator for your boat or RV? You might be interested to know that some very frustrated brethren in California and Florida have filed a defective products class action lawsuit against the company. The Norcold lawsuit alleges the manufacturers of Norcold brand gas absorption refrigerators, used in RVs and boats, knowingly sold defective refrigerators that posed a serious fire risk but hid that information from the public and federal regulators.

Eligibility? The class action lawsuit seeks relief on behalf of all persons who purchased or owned RVs or boats in California and Florida equipped with three models of Norcold-brand gas absorption refrigerators. The complaint names Norcold, Inc., Thetford Corporation and Dyson-Kissner-Moran Corporation (DKM) as defendants.

The lawsuit alleges that since 1999, Norcold’s refrigerators have caused at least 2,000 fires (2000!) resulting in millions of dollars in property damage, personal injury and death. The refrigerators contain flammable gases under high pressure, including hydrogen. The gases are heated by electricity or propane to circulate and provide the refrigeration effect. Fires are caused when defects in the refrigerator design release the flammable gases, which can then explosively ignite and spread quickly through the refrigerator compartment and into the passenger area of the RV.

The Norcold lawsuit alleges that the companies knew of the potential fire hazard associated with its refrigerators, but rather than eliminate the design and manufacturing defects or provide an adequate warning of the potential safety risks to users of the product they tried to conceal and minimize these dangers through a series of limited manufacturer-initiated product safety recalls through the National Highway Traffic Safety Administration (NHTSA), beginning in 2000.

In each product safety recall, Norcold represented that there was a single failure modality in a limited portion of their product population. They provided a retrofit that would fix that defect, rendering the refrigerators safe to use. But in truth, the lawsuit alleges, the refrigerators had a number of different failures that were common to all of the product lines, information that was never adequately disclosed to NHTSA or users of the product, nor remedied by the retrofit campaigns. Further it’s alleged that the devices provided by the companies to “fix” the defects were not only ineffective to remedy the propensity of the refrigerators to cause fires, but were designed, when triggered, to render the refrigerators inoperable and unrepairable, requiring users to purchase new refrigerators that contained the same design and manufacturing defects as the originals, and which had the same propensity to cause fires.

Top Settlements

Two asbestos settlements …to report this week. The first, involves a 68-year old man who worked as a painter and handyman from the early 1960s until his diagnosis of asbestos mesothelioma. He was been awarded $8,465,738 in settlement of his asbestos lawsuit.

In the lawsuit, the plaintiff alleged his exposure to asbestos resulted from working with asbestos-containing products manufactured and supplied by the defendants, Union Carbide and CalPortland. Specifically, the lawsuit claimed that the joint compound and the plastic cement the plaintiff worked with contained asbestos.

Recently diagnosed with pleural malignant asbestos mesothelioma, the plaintiff subsequently underwent an extrapleural pneumonectomy. He and his wife brought suit against the various defendants alleging that the defendants were negligent in failing to warn of the dangers of asbestos contained in their products or sold to others to place in their products.

At the conclusion of the 37-day trial the jury returned its verdict in favor of the plaintiffs and against the defendants. The jury determined that defendants CalPortland and Union Carbide were responsible.

The second asbestos lawsuit settlement involves the family of a former employee at the GM Powertrain facility in the town of Tonawanda. The husband and father died of asbestos disease, and his family, who brought the GM asbestos lawsuit, were awarded $3 million by the jury hearing the case.

Gerald Suttner, formerly of Tonawanda, worked at the GM facility repairing valves manufactured by Crane Co. The job involved removing asbestos gaskets, which created asbestos dust Suttner would have inhaled. He did this from 1964 to 1979, when he retired.

Diagnosed in October 2010, Mr. Suttner died just one year later, from pleural mesothelioma, a form of cancer that is caused by asbestos. He was 77.

During the trial, lawyers for the Suttner family called expert witnesses who testified that there is no such thing as safe asbestos exposure and assured the jury that Suttner’s exposure is what led to his diagnosis. The dangers of asbestos have been known since the early 1900s, and the lawyers made the case that Crane was aware of these dangers since the 1930s. “But the company continued to use asbestos well into the late 1980s without placing warnings on its products,” the law firm’s statement reads.

And on that note, I’ll see you at the bar.

Week Adjourned: 11.11.11

The weekly wrap up of Class Action Lawsuits and Settlements for the week ending November 11, 2011.

Top Class Actions

We’re Mad about Madoff! Still. Again. No kidding. Only this time someone’s naming a bank. Two former Bernard L. Madoff investors have filed a proposed consumer fraud class-action lawsuit against JP Morgan Chase & Co, claiming the banking giant was complicit in aiding Madoff in orchestrating the Ponzi scheme that robbed investors of more than $65 billion.

The lawsuit comes after a similar suit filed by the trustee appointed to represent Madoff’s victims was dismissed. The court ruled that the case filed by Irving Picard lacked standing, holding those claims belonged exclusively by the victims of Madoff’s fraud.

Among the allegations leveled in the lawsuit, investors charge that JP Morgan operated as Bernard L. Madoff Investment Securities LLC’s (BLMIS) primary banker for more than 20 years, and were faced with many indications that the fund was nothing more than a Ponzi scheme.

The lawsuit details that since 1986, all the money BLMIS collected from unwitting investors passed through JP Morgan in an account known as the 703 Account, where BLMIS co-mingled funds from investors.

The lawsuit contends that JP Morgan should have known that BLMIS’s activities were grossly inconsistent with those of an investment firm through a number of signs of impropriety.

JP Morgan, for example, was required to review a filing submitted by BLMIS to the SEC known as the Financial and Operational Combined Uniform Single Reports or FOCUS. That report, the lawsuit states, contained glaring irregularities that JP Morgan should have reported to the SEC, including factual omissions and errors, such as failing to report any commission revenue.

Beginning in 2006 JP Morgan sold structured investment products related to BLMIS feeder funds to its clients, profiting on those transactions as well. In the course of structuring those products, JP Morgan performed due-diligence on BLMIS and became suspicious that the BLMIS was a fraud but did not report its findings, the lawsuit alleges, but did redeem $145 million from BLMIS and $276 million from BLMIS feeder funds in 2008.

The lawsuit has been filed on behalf of Stephen and Leyla Hill, investors who incurred losses in BLMIS. It claims JP Morgan had knowing participation in a breach of trust, aided and abetted fraud, aided and abetted a breach of fiduciary duty, aided and abetted conversion and received unjust enrichment. The suit seeks damages for the plaintiffs.

Top Settlements

Big Banks paying Big Bucks: But are the bucks big enough? A $410 million settlement was approved this week—you may have seen it splashed all over the news—by a federal judge in Miami, ending an overdraft fees class action lawsuit against Bank of America (BoFA) that claimed the bank charged excessive overdraft fees.

Only thing is there are reportedly more than 13 million current and former customers who will be affected by the decision, customers who used debit cards over the past 10 years. Some reports suggest that most of the plaintiffs will likely only receive a fraction of the overdraft fees they paid. Ummm.

The lawsuit alleged that BoFA processed its debit card and check payments in such a way as to incur more customer overdrafts and consequently more fees. BoFA insists that its system was proper, despite the settlement. The settlement includes an estimated $123 million in legal fees for plaintiff’s lawyers…

Another bittersweet asbestos settlement this week. The widow of a man who died from peritoneal mesothelioma cancer has been awarded a settlement—a “substantial” sum—amount not publicly disclosed as compensation for loss of her husband, to put it bluntly. The settlement, negotiated on behalf of Mrs. Veraldo, was obtained midway through trial.

Mrs. Veraldo sued as executrix of the estate of her late husband, Randy Veraldo. He was 52 when he died in 2009, seven months after being diagnosed with peritoneal mesothelioma cancer, court records show.

Mr. Veraldo was a parts handler at a Teterboro, N.J., warehouse from 1978-85. The job required him to unpack clutch plates delivered on a near-daily basis from various suppliers. The clutch plates were said to contain asbestos, a mineral once widely used in the U.S. as a cheap insulating material until it was found to cause mesothelioma cancer.

Ok—That’s enough for this week. See you at the bar. And on this Veterans Day, a toast to all veterans, living and gone, the world over.

Week Adjourned: 9.30.11

This week’s wrap on Class Action lawsuits and Settlements, September 30, 2011

Top Class Actions

NCAA Concussion Lawsuit Filed. Again. It’s about time! Two former college football players who suffer from the residual effects of head injuries filed an class-action lawsuit against the National Collegiate Athletic Association (NCAA), accusing the governing body of neglecting to protect student-athletes from concussions and their aftermath.

The class action lawsuit accuses the NCAA of turning a blind eye to coaches who teach players to use their heads for tackling, failing to establish a NCAA-wide system for screening head injuries and shirking its financial obligations to injured student-athletes who need medical treatment after they’ve left college.

The case alleges that despite a mounting body of scientific evidence linking concussions to depression, dementia and early-onset Alzheimer’s, among a host of other medical problems, the NCAA has failed to enforce the safety measures it introduced in the 1970s. The lawsuit further claims that NCAA football coaches continue to encourage players to use tackling methods that promote head trauma, including helmet-to-helmet hits. The harshest penalty ever imposed on coaches who teach this tactic was a letter of reprimand, according to the complaint.

The lead plaintiffs in the suit are former University of Central Arkansas wide receiver Derek K. Owens and former Northwestern University offensive lineman Alex Rucks, who say their lives have been fundamentally altered as the result of brain trauma that could have been prevented.

Owens, 22, was hit in the head from behind while taking part in a voluntary practice the summer before his freshman season. According to the complaint, Owens never received medical attention from the team despite feeling dizzy, having difficulty seeing and being unable to drive home. The 2008 incident was the first of numerous head injuries for Owens, who was named Arkansas’ Top Offensive Player and one of the state’s top Scholar-Athletes his senior year of high school.

The second week of his first season, a linebacker knocked Owens unconscious in practice, according to the lawsuit. UCA’s trainers told Owens’ roommates he had a “severe concussion” and to wake him up every couple of hours. He sat out for several weeks until he was cleared to return to the practice team. During a 2010 game, Owens was returning a punt when he was leveled by an opposing player, who later called the play “the highlight of his career,” according to a story in the Tulsa World. Owens experienced memory loss, headaches, an inability to concentrate, anxiety and depression. His grades plummeted despite his once-sterling academic record. In May of 2011, he dropped out of school and football as a result of the debilitating effects of repeated head trauma.

Rucks, who played at Northwestern from 2004 to 2008, was never formally diagnosed with a brain injury, but suffered numerous blows to his head that led to symptoms consistent with a concussion. The NCAA never tested or followed-up with Rucks to determine whether he’d been concussed, or if he was experiencing post-concussion syndrome, the lawsuit alleges.

Since his playing days, Owens has suffered from the symptoms of post-concussion syndrome, including the loss of concentration and memory, according to the complaint.

The lawsuit alleges the NCAA never encouraged football players to report or complain about their physical well-being, nor does it educate players about head-injury prevention or the telltale symptoms of a concussion.

The lawsuit, a class action, seeks to represent current or former NCAA football players who have medical or team records indicating they sustained a concussion(s) or suffered concussion-like symptoms while playing football at an NCAA school, and who have, since ending their NCAA careers, developed chronic headaches, dizziness, dementia, Alzheimer’s disease or other physical and mental problems as a result of the concussion and have incurred medical expenses from such injuries.

All class members would be notified that they may require frequent medical monitoring. NCAA-wide return-to-play guidelines would be established. The NCAA would mandate that team physicians learn to detect concussions and sub-concussions, as well as determining when a player is at an increased risk of harm. It also seeks to redress the intangible losses suffered by these class members.

Top Settlements

Asbestos Mesothelioma Lawsuit Settlement. Another asbestos settlement to report this week. A jury in Orleans Parish Civil District Court has ruled that three companies are liable for $7.55 million in damages for exposing former employee Thomas Kenney to asbestos. Kenny has been diagnosed with malignant asbestos mesothelioma.

Mr. Kenney sued Rexam Beverage Can Co., John Crane Inc and Haveg Inc, among others, claiming that he was exposed to asbestos while working in a canning factory and a refinery in the 60s and 70s. The jury hearing his case found John Crane, Rexam and Haveg liable for Kenny’s asbestos exposure and Rexam liable for the dangerous levels of asbestos, which was located in its canning factory in New Orleans’ Mid-City neighborhood. The old canning factory has since been refurbished and converted into an apartment complex.

Reebok to Atone for its Toning Shoes Claims: While the jury may be out on whether or not these shoes actually do tone your butt and abs, the Federal Trade Commission isn’t wasting time making up its mind. Reebok has agreed to pay $25M to settle charges brought by the Federal Trade Commission alleging that the athletic shoe manufacturer falsely advertised its “toning” shoes, making claims that the shoes could measurably strengthen the muscles in the legs, thighs and buttocks.

Among the claims the FTC found offensive–and possibly downright misleading—are that the EasyTone footwear is proven to increase the strength and tone of your gluteus maximus muscles by 28% (really?) and give you 11% more strength in your hamstring and calf muscles—(really)—compared with regular walking shoes—whatever those are.

The FTC settlement is the first, and results from its investigation into the advertising claims made by Reebok. However, other companies such as New Balance and Sketchers have also aced lawsuits over their advertising claims.

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

Week Adjourned: 5.13.11

Top Class Actions

Put your paycheck on a diet? These women don’t think it’s a such a good idea. Two Long Island women who worked for Jenny Craig filed a unpaid wages class action lawsuit, alleging that the well-known weight-loss chain put their paychecks on a diet.

The women, in a suit filed May 10 In New York State Supreme Court in Manhattan, claim that Jenny Craig Operations Inc., the Carlsbad, Calif.-based chain owned by multi-national food giant Nestlé’s, improperly shortchanged them by a 1/2 hour a day for every shift they worked, even though they worked during their 30-minute break times. The alleged underpayments violate New York’s labor laws, according to court papers.

The suit, which seeks class action status, was filed by Tammy Weinstein, of Bellmore, who has been a program director and weight loss consultant since November 2002 at Jenny Craig locations in Valley Stream and Massapequa, and by Melissa Pallini, of Holbrook, who was a weight loss consultant, program director, part time receptionist, and stocker from June 2008 until June 2010 at the chain’s East Patchogue location.

The suit seeks to represent all New York employees of Jenny Craig who worked as weight loss consultants, receptionists, stock persons, program directors and any other employee at Jenny Craig weight-loss centers. According to court papers, the class included more than 500 people who’ve worked at Jenny Craig since May 2005. The chain has 30 locations statewide, 10 of them on Long Island, in Centereach, E. Patchogue, Great Neck, Farmingdale, Freeport, Hicksville, Huntington Station, Massapequa and Valley Stream.

The employees worked about 15 to 35 hours a week on shifts of five to eight hours one day to five days per week, according to court papers.

Jenny Craig, a commercial program that features portion-controlled, prepackaged meals supplemented by store-bought vegetables and fruit, received top marks this week from Consumer Reports for diet success. The chain offers support through weekly counseling sessions.

The diet chain’s celebrity spokespersons have included actress Kirstie Alley, Valerie Bertinelli, Queen Latifah, actresses Sara Rue and Nicole Sullivan, actor Jason Alexander and, since January, actress Carrie Fisher.

Top Settlements

Where there’s smoke, there’s gas… This is certainly an interesting twist on an old theme. A Flordia judge recently ruled in favor of the plaintiffs in litagation over defective Chinese drywall. The Hillsborough County judge, Robert Foster, ruled that homeowners’ insurance should Continue reading “Week Adjourned: 5.13.11”

Week Adjourned: 8.27.10

Top Class Actions

Care Doesn’t Discriminate? You would think that healthcare might be the one environment in which race would not be the priority. Not so, apparently. One of San Francisco’s biggest hospitals, Sutter Health’s California Pacific Medical Center (CPMC), which also operates St. Luke’s Hospital, is facing a class action over allegations that it is engaged in systematic discrimination against the hiring of Filipino registered nurses. The suit, brought by the California Nurses Association (CNA), alleges contract violations in a systematic policy of discrimination.

The CNA held a press conference over the matter during which former nursing supervisors and nurses of CPMC spoke out about the discrimination they themselves had faced. The CNA have also made public data from a review they conducted which show that in early 2008 there was a major demographic shift among the nurses being hired at St Luke’s. “Before February 2008, 65% of St Luke’s RNs were Filipino. After February 2008, only 10% of RNs hired were Filipino,” the press releases states.

“St. Luke’s and CPMC RNs, many of them Filipino, have been outspoken in defense of their patients, and in opposition to Sutter and CPMC’s plans to reduce services to the largely lower income, minority community depending on St. Luke’s from SOMA to the Excelsior,” said CNA Co-president Zenei Cortez, RN.

“Rather than respond to the concerns of the community, CPMC and Sutter have chosen instead to retaliate by carrying out a punitive, illegal, and immoral campaign of discrimination,” said Continue reading “Week Adjourned: 8.27.10”