false advertising

Week Adjourned: 5.9.14 – CVS, Google, FiveFingers, Medtronic

The week’s top class action lawsuits and settlements. Top stories include CVS, Google, FiveFingersand Medtronic

Top Class Action Lawsuits

Caremark to get healthy over vitamin E advertising claims? That’s right folks, the pharmacy chain is facing a consumer fraud class action lawsuit filed by a customer who alleges the labeling on the pharmacy chain’s vitamin E pills state that they have heart health benefits.

Filed by plaintiff Ronda Kauffman, on behalf a proposed nationwide class of consumers who purchased vitamin E pills from the major pharmacy chain, and subclasses for customers in Rhode Island and New York, the CVS/Caremark complaint alleges that the CVS labels are misleading to customers, making them think the vitamins could reduce the risk of heart disease.

“The overwhelming majority of scientific studies find no ‘heart health’ benefit to taking vitamin E supplements,” the lawsuit states. Hey – what about the placebo effect?

7,600 CVS pharmacies nationwide carried the vitamins, which retail for approximately $8 to $20 per bottle, the lawsuit states. Kaufman alleges she bought vitamin E tablets from a CVS store in New York after reading the label and lost money on the purchase, which she wouldn’t have made if not for the heart health claims.

The CVS lawsuit mentions several studies that allegedly show vitamin E provides no heart health benefits. Further, it cites data from the US Centers for Disease Control and Prevention which show heart disease to be the leading cause of death in the US.

“Defendants have preyed upon these legitimate health concerns by misrepresenting to consumers that its vitamin E products have a ‘heart health’ benefit when they do not,” the complaint states.

The lawsuit claims CVS has violated deceptive business practice laws in New York and Rhode Island.

So, it’s back to eating your veggies.

Do no evil? Isn’t that it? Well, Google Inc. is facing a proposed antitrust class action lawsuit alleging the company is trying to monopolize the search engine feature on Android smartphones and tablets in violation of state and federal antitrust laws.

The Google lawsuit, Feitelson et al v. Google Inc., case number 5:14-cv-02007, in the U.S. District Court for the Northern District of California, claims that Google engages is anticompetitive behavior by allowing Android device manufacturers to preload its popular applications, such as Youtube and Google Maps, only if the companies agree to make Google’s search application the default search engine on their devices. Is that evil—or convenient?

The lawsuit states: “By way of Google’s coercive and exclusionary practice with Android OS device manufacturers … Google restrains and quashes competition for default search engine status before it even can begin. Google’s practice is a pure power play designed to maintain and extend its monopoly in handheld general search.”

Further, the plaintiffs claim that Google’s alleged conduct results in consumers overpaying for certain Android phones and tablets, as the price for the devices may have been lowered if rivals had been given a chance to compete for default search engine status, potentially by paying manufacturers.

“Such payments … would lower the bottom-line cost associated with production of the covered devices, which in turn would lead to lower consumer prices for smartphones and tablets,” the lawsuit states.

The class action seeks to represent all U.S. purchasers of Android phones and tablets made by manufacturers who have entered into an alleged agreements with Google requiring its search engine to be the default search tool on their devices. The suit seeks an injunction on these alleged practices, as well as monetary damages.

Could this end up like Microsoft?

Top Settlements

Can you sue for ugliness, too? Vibram’s set to fork over for false health claims about FiveFingers..Turns out reinventing the wheel may be costly afterall. Vibram, the maker of a glovelike running shoe that purported to have health benefits such as reducing foot injuries and strengthening foot muscles—has agreed to settle a consumer fraud class action lawsuit.

The FiveFingers lawsuit alleges the company’s health claims regarding its FiveFingers running shoes were false and misleading. Specifically, the lawsuit alleged that the claims were“deceptive” and stated “that FiveFingers may increase injury risk as compared to running in conventional running shoes, and even when compared to running barefoot.” The complaint also stated that the company misrepresented research on barefoot running, claiming “there are no well-designed scientific studies that support FiveFingers’ claims.”

Under the terms of the proposed settlement agreement, Vibram would pay $94 per pair of shoes bought. More than two dozen models of Vibram shoes will qualify for refund.

Further, Vibram has agreed to discontinue some aspects of its advertising and marketing campaigns and, in the absence of verifiable scientific evidence, will make no other statements about the health benefits of FiveFingers.

Medtronic, the maker of a spinal bone graft product called Infuse Bone Graft, has said it will pay $22 million to settle about 1,000 lawsuits stemming from claims of adverse health outcomes related to the product and claims that the manufacturer illegally promoted the Medtronic bone product for off-label uses. Medtronic is also reportedly preparing a further $140 million to settle an even larger number of anticipated claims.

Medtronic allegedly encouraged physicians to use its Infuse bone stimulator off-label in the cervical spine, which helped generate sales of more than $3 billion for the manufacturer. As of September of 2008, about 680,000 units of Infuse Bone Grafts had been used in the US, according to Medtronic. According to a report by the Senate committee investigating the product, the company’s undisclosed manipulation of information through the medical literature included overstating its benefits and downplaying concerns about serious complications. According to MedPage Today, during the past 15 years, Medtronic has paid $210 million in royalties and other payments to a group of 13 doctors and two corporations linked to doctors. Many of the lawsuits claim that it was by paying spinal surgeons the company was able to promote the off-label use of Infuse.

According to a press release Medtronic issued Tuesday, the $22 million will resolve the claims of some 950 people. A further 750 cases brought by 1,200 people are pending across the use, and there could be another 2,600 claims yet to be brought.

Ok—Folks—we’re done here—have a great weekend and we’ll see you at the bar!

Week Adjourned: 2.28.14 – Obamacare Staff, Home Depot, Eden Memorial

The week’s top class action lawsuits and settlements for the week ending February 28, 2014. Top class actions include Obamacare Staff, Home Depot, Eden Memorial

Top Class Action Lawsuits

Is Maximus Maximizing an Unpaid Wages Scam on the Back of Obamacare? A call center unpaid wages class action lawsuit has been filed by employees at an Obamacare call center in Idaho, alleging the contractor, Maximus Inc, miscategorized employees as exempt for overtime, and is in violation of the Fair Labor Standards Act (FLSA). So, they clearly think so.

Specifically, the putative Obamacare call center wage and hour class action lawsuit alleges that most employees worked between 50 and 60 hours a week beginning in the summer of 2013, without receiving compensation for the overtime, and that they were made to clock off before they had actually finished their shifts. Additionally, the lawsuit alleges the employees were unable to take mandatory breaks including lunch.

The class action contains two putative sub classes, one consisting of first level supervisors, and the second of call center employee trainers at the Boise, Idaho branch.

Are you Getting Hosed by Home Depot? Home Depot USA Inc is facing a consumer fraud class action lawsuit filed by a customer who alleges the do-it-yourself retail giant sells a line of defective expandable garden hoses that can rupture soon after purchase. An infomercial marketing firm, Telebrands, is also named as a defendant.

Specifically, the Home Depot lawsuit contends that the “Pocket Hose” and “Mini Max Hose” aren’t durable, and are not made of “heavy-duty fire hose construction,” as the companies advertise. Filed by plaintiff Micahel Klemballa, the Pocket Hose lawsuit states “In fact, the design of the Pocket Hose product is fundamentally defective and thus not suitable to be used as a garden hose as advertised.” “When used as instructed, the Pocket Hose will leak and/or burst, rendering the product useless.”

Klemballa alleges that he purchased a Pocket Hose in June which ruptured after he used it just a few times. He contends that thousands of similar complaints can be found on various product review websites and message boards.

The lawsuit, entitled Klemballa v. Telebrands Corp. et al., case number 2:14-cv-01245, in the U.S. District Court for the District of New Jersey goes on to states that in its online advertisements and infomercials, Telebrands misleadingly represents the Pocket Hose as “strong enough for any tough job,” backing the claim with a purported demonstration of the hose pulling a 5,000-pound sport utility vehicle.

However, according to the complaint, the hose, which retails for between $12.99 and $42.99, depending on length, is not even strong enough to withstand normal residential use. (Should I be surprised?) Klemballa states that Home Depot adopted many of Telebrands’ false and misleading claims about the product for in-store displays and ads on its website, and reviewed and approved advertising materials that included the retailer’s own logos and trademarks.

“Defendants’ false and misleading claims are in willful and wanton disregard of the interests of the consuming public, and constitute a knowing attempt by defendants to deceive consumers,” the complaint states.

The lawsuit seeks class certification to represent all consumers who have purchased the Pocket Hose in the US, along with a subclass of New York purchasers.

Top Settlements

Let’s hope this isn’t a trend. Service Corporation International (SCI) has reached settlement of a consumer fraud class action lawsuit involving allegations its employees desecrated graves at its Eden Memorial Park.

Specifically, the Eden Memorial class action, brought in 2009 on behalf of 25,000 Jewish families with loved ones buried at Eden Memorial, claimed that for 25 years, SCI employees routinely broke open outer burial containers and caskets and discarded human remains in a dump area on the cemetery grounds to make room for more graves.

SCI is a publicly traded company that runs the largest collection of the “death-care businesses” in the U.S. It has 1,644 funeral homes and 514 cemeteries in 43 states and the District of Columbia.

On February 27, the company announced it had reached a settlement of the lawsuit, four weeks into a trial in California state court. SCI said it would create a settlement fund of $35.25 million, of which $25.25 million will be contributed by insurance companies.

SCI denied any wrongdoing.

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

Week Adjourned: 1.31.14 – Amazon, OxyElite, Hyundai

The week’s top class action lawsuits and settlements including Amazon wag and hour lawsuit, OxyElite weight loss and Hyundai gas mileage.

Top Class Action Lawsuits

Discount Wages as Well as Products? Well, we’re about to find out. Amazon got hit with an employment class action lawsuit filed by Plaintiff Kelly Pavuk (“Pavuk”) (Case No. 2013-11565-0, in the Luzerne County Court of Common Pleas) who alleges Amazon failed to compensate her adequately for time working at the Amazon facility in Pennsylvania. Pavuk makes this claim on behalf of herself and other similarly situated.

Specifically, the Amazon lawsuit claims the defendants failed to comply with the requirements of the Pennsylvania Minimum Wage Act (“PMWA”), thereby violating the PMWA by not compensating all Warehouse Workers during the end-of-shift screening process that “approximately takes between 10 and 20 minutes, and, with delays … can last longer.”

Further, the lawsuit claims the defendants violated the PMWA by not compensating all Warehouse Workers for passing through the same screening process during meal breaks or for walking to that screening area. And, the lawsuit claims the defendants “automatically deduct 30 minutes from Warehouse Workers’ compensable time each shift for an unpaid meal break,” “require Warehouse Workers to remain at their work locations within the Facility until the start of the purported 30-minute meal break,” and that “[a]fter the start of the 30-minute meal break, Warehouse Workers walk to the [Facility’s] time clocks and clock-out.”

Okee dokee. One to watch.

OxyElite “light” on the Facts… including possible liver injury? A proposed defective products class action lawsuit has been filed against General Nutrition Center Holdings Inc., and USPLabs LLC, alleging OxyElite Pro energy and weight loss dietary supplements cause liver damage.

Filed by Sandeep Barot, the OxyElite lawsuit (U.S. District Court for the District of New Jersey at Camden case number: 1:14-cv-000562) claims that OxyElite Pro is intended to safely provide weight loss, energy and mental focus, however, it instead causes severe adverse health effects.

The OxyElite complaint alleges that USPLabs sells a variety of energy and weight loss and dietary supplements under the brand name of OxyElite Pro through GNC, which are dangerous, sold pursuant to deceptive and unfair practices and are not fit for their intended purpose.

Barot claims that he and all others similarly situated “did not bargain for a product that causes adverse health effects in exchange for their payment of purchase price,” according to the lawsuit. And the lawsuit goes on to state that several adverse reactions, including serious liver injury and wrongful death, have been reported from consumers who have purchased and ingested the product.

According to the complaint, USPLabs and GNC had actual knowledge of the product’s shortcomings, but both failed to timely act to adequately warn consumers of the unfitness of the product, the extreme adverse side effects associated with the product or provide adequate relief to the class of consumers who purchased the product.

Further, On October 11, the US Food and Drug Administration issued a warning letter to USPLabs regarding OxyElite Pro for its inclusion of aegeline or dimethylamylamine, known as DMAA, the lawsuit states.

Barot claims that he purchased the product based on claims made by the manufacturer that the products would safely produce energy, increase weight loss and increase mental focus so long as the consumer used the product as directed. However, Barot alleges he suffered economic damages as a result of purchasing and using the product. Further, he claims that neither himself nor any other reasonable consumer would have purchased the product had they known about the severe adverse effects the product can cause to humans, the lawsuit states.

The lawsuit alleges that the defendants are in violation of the New Jersey Consume Fraud Act and was unjustly enriched at the plaintiffs’ expense.

Um, back to diet and exercise, I guess…

Top Settlements

Hyundai Canada to Shell out Cash for False Mileage Claims. This week, the automaker announced that it has entered into an agreement with plaintiffs in Canada—representing current and former owners and lessees of vehicles affected by the auto company’s November 2012 restatement of fuel economy ratings. The adjustment affected approximately 130,000 Hyundai 2011-2013 model year vehicles, increasing their combined city/highway fuel consumption by 0.2-0.8 L/100km. While today’s agreement is valued at up to $46.65 million in cash compensation plus other available options, that number is dependent on how many customers elect to participate in the settlement’s one-time lump sum payment option or remain in the existing reimbursement program Hyundai introduced at the time of the restatement.

At the time of the restatement, Hyundai provided a reimbursement program to cover the additional fuel costs associated with the rating change—plus a 15 percent premium in acknowledgement of the inconvenience—to customers for as long as they owned or leased an affected vehicle. Affected owners and lessees are compensated based on their actual kilometers driven and the fuel costs for the region in which they live.

Under the terms of the proposed settlement, a single lump sum payment will be provided as an option to the original reimbursement program. The lump sum payments will vary by type of vehicle, and will be reduced for any amounts already received through Hyundai’s existing reimbursement program. For example, an individual owner who purchased a new 2012 Elantra would receive a lump sum payment of $361, minus any previous reimbursement payments. Affected Hyundai owners may elect the one-time lump sum cash payment or remain in the auto company’s ongoing reimbursement program for as long as they lease or own the affected vehicle; the choice is theirs. Consumers can also elect other options, such as a dealership credit of 150 percent of the lump sum cash payment amount, or a credit of 200 percent of the cash amount toward the purchase of a new Hyundai vehicle.

Courts in Ontario and Quebec are expected to review the agreement for approval in early 2014. Assuming approval is granted, notices will then be provided to all affected customers.

Hopefully the snow will have stopped by then—and the roads will be driveable!

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

Week Adjourned: 11.8.13 – Wacoal iPant, Lennox A/C, J&J Risperdal

The week’s top class action lawsuits! This week, highlights include Lennox air conditioners, Wacoal and Maidenform shapewear, and a blockbuster settlement for big-pharma drug Risperdal.

Top Class Action Lawsuits

Fat-Busting Shapewear…Busted? All I can say is DAMN! A federal consumer fraud class action lawsuit has been filed against Wacoal America Inc. and Maidenform Brands, Inc. over allegedly deceptive marketing claims the Defendants made regarding the purported slimming benefits of the Novarel Slim Fabric used in “Novarel Slim iPant” and “Flexees” brand shapewear. Hope on a hanger it’s allegedly not! Damn, damn, damn!

The Novarel and Flexees class action lawsuit, which was filed in US District Court for the Eastern District of New York on November 5, 2013, seeks class action status for all persons who paid, in whole or in part, for shapewear constructed with Novarel Slim fabric and manufactured, marketed or sold by Wacoal or Maidenform for personal, family or household uses. (Case No. 2:13-cv-06122).

According to the class action lawsuit, the Defendants claim that Novarel Slim Fabric, manufactured by Nurel SA, contains ingredients that can be absorbed by the body and permanently change the wearer’s skin tone and body shape. These ingredients include embedded microcapsules containing caffeine to promote fat destruction, vitamin E to prevent the effects of aging, ceramides to restore and maintain the skin’s smoothness, and retinol and aloe vera to moisturize and increase the firmness of the skin. Specifically, Wacoal American and Maidenform promise that use of Novarel Slim iPant and Flexees products will result in fat destruction and reduce the appearance of cellulite (see video below…). According to the complaint, the companies charge up to 50 percent more for shapewear products that contain the Noveral fabric compared to the cost of comparable shapewear that does not purport to contain these ingredients.

The Novarel and Flexees class action lawsuit alleges that the claims used by Wacoal and Maidenform to market Novarel Slim iPant and Flexees shapewear are deceptive and misleading. Among other things, Plaintiffs point to research from the Mayo Clinic, which found that cellulite cannot be “cured” with topical applications.

Bottom line—(pardon the pun)—I still have to diet… Damn!!

The lawsuit claims violations of the New Jersey Consumer Fraud Act, breach of express warranties and unjust enrichment. It seeks, among other things, restitution for the amount of money Class Members spent to purchase Novarel Slim iPant and Flexees garments.

What’s in your Air Conditioner? If it’s a Lennox Air Conditioning unit—you may not be surprised to learn there’s something defective in it. The company is facing a defective products class action lawsuit alleging its air conditioning units are susceptible to formicary corrosion as a result of the deficient materials used in the manufacture of its coils. The Lennox air conditioner lawsuit further alleges that Lennox has not informed its customers of the defect, even when it is called to replace failed coils in existing units. This conduct, the lawsuit claims, means that customers are unable to make informed decisions regarding the purchase of a Lennox Air Conditioner.

Formicary corrosion—in case you were wondering—is a particularly insidious defect in an evaporator coil because the resultant leakage is difficult to detect, and usually results in consumers being forced to repeatedly refill their air conditioners with Freon, often at significant cost, which only works to mask the defect for a period of time, until the leak is detected and the coil needs to be replaced.

Lennox Coils are allegedly defective because they are manufactured with materials that, within the industry, are well known to be prone to formicary corrosion, which makes the Lennox Coils unreasonably susceptible to premature rupture and refrigerant leaks under normal use and conditions.

The federal class action, filed by Plaintiff Robert Thomas, of Illinois, is brought on behalf of the following nationwide consumer classes (the “Classes”):

All persons residing in the United States who purchased a Lennox AC containing a Lennox Coil, primarily for personal, family, or household purposes.

All persons residing in the United States who purchased a Lennox AC containing a Lennox Coil, primarily for personal, family, or household purposes, and who paid to replace a Lennox AC evaporator coil. The lawsuit also seeks to represent a subclass defined as all members of the Classes who reside in Illinois.

Top Settlements

It’s a Blockbuster Drug! (of sorts…) Fitting though, considering the players. Global health care giant Johnson & Johnson (J&J) and its subsidiaries will pay more than $2.2 billion in a Qui Tam (whistleblower) investigation. The settlement will resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal, Invega and Natrecor, including promotion for uses not approved as safe and effective by the Food and Drug Administration (FDA) and payment of kickbacks to physicians and to the nation’s largest long-term care pharmacy provider. Got all that?

Officially—the Risperdal settlement whose “…global resolution is one of the largest health care fraud settlements in U.S. history, including criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion.” (source: US Dept of Justice).

The resolution includes criminal fines and forfeiture for violations of the law and civil settlements based on the False Claims Act arising out of multiple investigations of the company and its subsidiaries.

Here’s the skinny from the DOJ:

J&J Subsidiary Janssen Pleads Guilty to Misbranding Antipsychotic Drug.

In a criminal information filed today in the Eastern District of Pennsylvania, the government charged that, from March 3, 2002, through December 31, 2003, Janssen Pharmaceuticals Inc., a J&J subsidiary, introduced the antipsychotic drug Risperdal into interstate commerce for an unapproved use, rendering the product misbranded. For most of this time period, Risperdal was approved only to treat schizophrenia. The information alleges that Janssen’s sales representatives promoted Risperdal to physicians and other prescribers who treated elderly dementia patients by urging the prescribers to use Risperdal to treat symptoms such as anxiety, agitation, depression, hostility and confusion.

The information alleges that the company created written sales aids for use by Janssen’s ElderCare sales force that emphasized symptoms and minimized any mention of the FDA-approved use, treatment of schizophrenia. The company also provided incentives for off-label promotion and intended use by basing sales representatives’ bonuses on total sales of Risperdal in their sales areas, not just sales for FDA-approved uses.

In a plea agreement resolving these charges, Janssen admitted that it promoted Risperdal to health care providers for treatment of psychotic symptoms and associated behavioral disturbances exhibited by elderly, non-schizophrenic dementia patients. Under the terms of the plea agreement, Janssen will pay a total of $400 million, including a criminal fine of $334 million and forfeiture of $66 million. Janssen’s guilty plea will not be final until accepted by the U.S. District Court.

So, enquiring minds want to know how many people were prescribed this drug when they didn’t actually need it…

Ok Folks, That’s all for this week. In advance of Monday—Here’s to our Veterans – THANK YOU. And have a good weekend!

Week Adjourned: 9.27.13 – GoGo Wifi, Reserveage, Truvia Sweetener

The week’s top class action lawsuits and settlements for the week ending 9.27.13. Top class actions include GoGo Wifi, Reserveage, Truvia Sweetener

Top Class Action Lawsuits

Internet Charges-A-GoGo! Hello! Gogo LLC, an inflight Internet service provider, is facing a consumer fraud class action lawsuit alleging the company misleads consumers about its charges. Gogo, for those of us not wireless wired at 41,000 feet, provides in-flight Internet and wireless in-cabin digital entertainment services.

The GoGo lawsuit, filed by Kerry Welsh, president of WelCom Products, which produces folding hand trucks, claims that on August 7, 2011 Welsh paid $39.95 for up to 30 days Internet usage on any airline. However, Welsh contends that after the 30 days term ended on September 7, he was charged $39.95 every month until at least December 2012, even though he did not use the service.

In the class action, Welsh alleges he “received no communications from Gogo on a monthly basis notifying him of the recurring charges.”

Welsh, filed the lawsuit on behalf of class members who were “were misled to believe they were purchasing only a one-month pass, but were in fact charged every month thereafter.”

The lawsuit states that “every other class member purchased in-flight Internet serve from Gogo prior to December 31, 2012, using a registration website that had representations about the monthly cost of the service but had no representations about the recurring nature of charges for the service.” While the Gogo website now states that monthly services charges will be recurring, “… it did not do so in 2011,” the lawsuit states.

Were you overcharged for inflight Internet access?

Anti-Aging? Um, not so much… Anti-honest? Very possibly, according to a consumer fraud class action filed against Reserve Life Organics LLC (d/b/a Reserveage Organics). According to the lawsuit, the company makes false and misleading statements regarding the health benefits of its anti-aging products. (No!)

The Reserveage lawsuit, entitled Kathleen Hold v. Reserve Life Organics, Case No. 3:13-cv-02206, in the U.S. District Court for the Southern District of California, claims that the Reserveage product made by Reserveage Organics does not contain resveratrol, an ingredient derived from French red wine grapes. Instead, the lawsuit asserts, the product actually contains Japanese Knotweed, a cheaper, more readily available source of resveratrol (couldn’t you just drink red wine instead?)

Filed by plaintiff Kathleen Holt, the lawsuit states that Reserveage deceives consumers into paying a premium for health supplements that contain very little of the advertised resveratrol, an ingredient that allegedly has anti-aging capabilities. Holt also claims Reserveage Organics does not admit that the products contain substantial amounts of magnesium stearate, an additive that is allegedly hazardous to human health by adversely affecting the immune system.

Specifically, the lawsuit states, “The main ingredient in resveratrol, and the main ingredient providing substantial resveratrol, is nonorganic Japanese Knotweed, not French red-wine grapes, (!) which is a much cheaper and more plentiful source of natural, as opposed to organic, grape-based resveratrol.” Further, “In addition, despite defendant’s claim of ‘From the Heart of France,’ plaintiff believes that defendant’s Japanese Knotweed is sourced from China.”

The consumer fraud class action lawsuit has been filed on behalf of the plaintiff and all California residents who purchased Reserveage resveratrol products within the last four years. The lawsuit contends that the company’s marketing violates California’s False Advertising Law and Unfair Competition law, among other claims.

I think direct application of red wine grapes—ingested in the form of wine—should be put to the test…

Top Settlements

A sweet deal for consumers? Maybe. A $5 million proposed settlement has been agreed by Cargill Inc, potentially ending a consumer fraud class action lawsuit alleging the food manufacturer misled consumers into believing its Truvia stevia sweetener is “natural.”

According to the consumer fraud lawsuit, entitled The Truvia False Advertising Class Action Lawsuit is Martin, et al. v. Cargill Inc., Case No. 13-cv-2563, U.S. District Court of Minnesota, the main ingredients in Cargill’s Truvia stevia sweetener are “highly processed” and/or derived from GMOs.

If approved, the Truvia settlement would distribute the $5 million in settlement funds among eligible class members as cash or vouchers. Class Members will be eligible to claim a cash refund or voucher based on the amount of money they spent on Truvia products during the Class Period.

Lead plaintiffs Molly Martin and Lauren Barry asked the Court to preliminary approve the proposed settlement. Eligible class members include consumers who purchased 40-count and 80-count packages of Truvia Natural Sweetener packets, and any size of the Truvia Natural Sweetener spoonable jars and baking blends, from July 1, 2008 onwards.

A Preliminary Approval Hearing is set for October 23, 2013.

Ok Folks, That’s all for this week. Have a good one—see you at the bar !

Week Adjourned: 8.30.13 – Estee Lauder, HP, NFL

Top class action lawsuits for the week; top stories include Estee Lauder false advertising, HP defective products, and the NFL concussion settlement.

Top Class Action Lawsuits

Legal Wrinkle for Estee Lauder? Estee Lauder has come under fire this week, for claiming it’s Advanced Night Repair skin care products can make you look younger… Bottom line, Donna Tomasino of New York has filed a consumer fraud class action lawsuit against the cosmetics company, alleging Lauder practices misleading advertising regarding its Advanced Night Repair skin care products suggesting that the products promote DNA repair and other anti-aging effects.

The Estee Lauder class action, entitled Donna Tomasino v. The Estee Lauder Cos. Inc., et al., Case No. 1:13-cv-04692, in the U.S. District Court for the Eastern District of New York, claims that Tomasino purchased Estee Lauder’s Advanced Night Repair Synchronized Recovery Complex and Advanced Night Repair Eye Synchronized Complex because of claims made by the company’s advertisements. However, Tomasino claims, there is no product testing to back up the alleged anti-aging claims.

“The clinical studies and other data that Estee Lauder represents as supportive of the claimed efficacy results are nothing more than a continuation of defendants’ misleading practices—each of the studies is designed to be used in the marketing materials to support the claimed efficacy and defendants know that consumers will not see the results these studies purportedly represent,” the lawsuit states.

Tomasino also alleges Estee Lauder created the claims in its advertising campaign for the Advanced Night Repair products even though the company knows the advertising claims are false. And, because EL is allegedly motivated by profit, it deliberately misleads its customers into believing that the products have anti-aging effects so that they will spend a higher price for the Advanced Night Repair line of products.

“In sum, Estee Lauder dupes consumers with false and misleading promises of product results based on purported scientific discoveries that it knows it cannot deliver. Estee Lauder does so with one goal in mind, reaping enormous profits at the expense of consumers,” the Estee Lauder skin cream class action lawsuit states.

If your wrinkles haven’t disappeared with the use of these products, you may be interested in signing up.

HP Communication Breakdown? Also in consumer fraud spotlight this week—Hewlett Packard. Apparently their wireless printers are not good at communicating with computers. Filed in California federal court by plaintiff Vincent Ferranti, the HP defective products lawsuit, entitled Vincent Ferranti v. Hewlett Packard Co., Case No. 5:13-cv-03847, alleges that Ferranti purchased two HP wireless printers, both of which were found to contain faulty receivers, which negatively affected the printers in that they were unable to maintain consistent connections with the computers.

Ferranti further alleges users of HP wireless printers are forced to plug the printer into a computer in order to print something. “The HP printers’ wireless connectivity intermittently stops working for no reason,” the class action lawsuit states.

The HP printer lawsuit names HP’s Officejet Pro 8500 and 8600 Wireless All-in-One printers as defective, and states that HP either knew or should have been aware of the connectivity issue on or before April 2009. Ferranti further alleges HP “actively concealed” the defect from consumers and continues to sell these printers without warning consumers “that the printer’s wireless function was defective and would fail with normal use.”

The lawsuit seeks to represent a class of thousands of consumers who purchased or leased the HP Officejet Pro 8500 or 8600 Wireless All-in-One printers.

Top Settlements

Heads up NFL! (pardon the pun). A landmark settlement has been reached between 4,500 former football players, their families and the National Football League (NFL) this week, ending a deceptive business practices class action focusing on the impact of concussions on the brain.

“It’s been a struggle to get to this point, but today I will say I’m very proud that the NFL has decided to stand up for all the former players who are suffering from brain injuries,” Kevin Turner, a former NFL running back who has been diagnosed with ALS, said during a teleconference. “Today is so important for those who are…hurting. This will bring help for them today.”

The NFL concussion settlement, according to reports from CNN.com requires the NFL to pay $765 million to fund medical exams, concussion-related compensation, medical research for retired NFL players and their families, and litigation expenses.

The settlement, filed in US District Court in Philadelphia, is pending final court approval.

Former U.S. District Judge Layn Phillips, the mediator in the lawsuit, called the settlement “a historic agreement, one that will make sure that former NFL players who need and deserve compensation will receive it, and that will promote safety for players at all levels of football.”

“My hope is that any players or ex-players that are suffering, or begin to suffer, from symptoms of dementia, will be taken care of in a respectable manner through this settlement,” said Chris Dronett, one of the plaintiffs, whose husband Shane Dronett committed suicide in 2009 at age 38. Scientists found evidence of chronic traumatic encephalopathy, or CTE, in Shane’s brain after his death, CNN.com reported.

The lawsuit alleged that the NFL led a deliberate misinformation campaign—primarily through its Mild Traumatic Brain Injury Committee—to deny scientific data being presented in the medical community about health risks associated with concussion. And, the lawsuit claimed, that misinformation, trickled down to players so that they were unaware of the real nature of the risks they were taking while playing football.

Included in the settlement is the establishment of a $675 million fund to compensate players who have suffered brain injury, or their families; a maximum of $75 million for retired players’ medical exams, which could be used to diagnose future neurodegenerative disease; and $10 million devoted to research and education. The funds will be dispersed over the next 20 years.

Well done, and not a moment too soon.

Ok Folks, That’s all for this week. Enjoy that 3-day weekend and we’ll see you at the bar!

Week Adjourned: 7.5.13 – Kendra Wilkinson AbCuts, BofA, BP Bad Gas

The week’s top class action lawsuits and settlements. This week, top stories include Kendra Wilkinson and AbCuts diet supplements, Bank of America debt collection harassment, and BP contaminated gas.

Top Lawsuits

The Girls Next Door are in trouble—well—one of them at any rate. Kendra Wilkinson, the former star of “The Girls Next Door” and “Kendra,” is facing a consumer fraud class action lawsuit over allegations she advertised a fat loss supplement that is ineffective and possibly dangerous to people’s health. The other named defendants are marketer Corr-Jensen Inc, and nutritional supplement retailer GNC Corp.

Adam Karhu filed the Kendra Wilkinson weight loss lawsuit, alleging the diet supplement “Ab Cuts” (Abdominal Cuts) fat loss supplement was advertised by Wilkinson as “a health supplement, not a diet pill,” which was false and misleading. Ok people, really? In what universe does the name Ab Cuts sound like a health supplement?

Entitled Karhu v. Corr-Jensen Labs Inc. et al., Case No. 13-cv-03583, in the U.S. District Court for the Eastern District of New York, the lawsuit specifically claims that Wilkinson promotes Ab Cuts on her website and through Facebook and Twitter, in addition to appearing on almost all product promotions, including appearances on talk show appearances and in celebrity magazines. According to the lawsuit, Wilkinson makes paid appearances at GNC stores across the country, claiming that Ab Cuts is her “I-Cheat-Every-Day Diet.” Note to Kendra: careful what you say…this lawsuit may give new meaning to “cheat”…)

The Ab Cuts product line has 11 different dietary supplement products all made with the same active ingredient, conjugated linoleic acid (“CLA”). According to the product advertising, CLA promotes fat and weight loss. But—according to the lawsuit, the science just ain’t there. In fact, the complaint alleges that CLA may actually increase the risk of type 2 diabetes, cardiovascular disease and hypertension. That sounds healthy!

Putative members of the Kendra Wilkinson diet lawsuit include anyone in the US who bought Ab Cuts, excluding people who purchased the products for resale. The AbCuts lawsuit alleges breach of express warranty, breach of the implied warranty of merchantability, unjust enrichment, violation of the Magnuson Moss Warranty Act, and for violation of New York’s consumer protection laws.

Bank of America (BoFA) got nailed this week, with a debt collection harassment class action lawsuit alleging America’s biggest bank is in violation of the federal Telephone Consumer Protection Act (TCPA) and the Florida Consumer Collection Practices Act. Add this to the list of possible legal digressions.

Filed by Broward County resident Marc Katz, the lawsuit, entitled, Marc Katz v. Bank of America NA, case number 0:13-cv-61372, U.S. District Court for the Southern District of Florid, alleges BoFA uses automated dialers to call the cell phones of people who have debt with the bank. That would certainly raise your blood pressure.

Specifically, Katz claims that in 2010 BoFA launched a mortgage foreclosure action against him in Florida state court. The bank then continued to call his cellphone using automated dialing systems in an effort to try and collect the purported debt. This occurred even after the bank was told to contact Katz’s attorney for anything related to the foreclosure action, according to the lawsuit.

“Despite receipt of a letter of representation, and its inherent cease communication directive, defendant’s continued collection efforts involved the placement of auto-dialed calls and/or recorded messages to the cellular telephones of allegedly delinquent consumers,” the debt collection harassment class action lawsuit states.

Further, Katz claims that when he answered the calls a machine-operated voice would advise him to “please hold for the next available representative,” forcing him to wait and listen to music or “dead air” before an actual person came on the line, the lawsuit states. “Defendant’s persistent and unlawful calling campaign was carried out with the intent to abuse and harass the plaintiff,” the lawsuit claims.

Heads up—the lawsuit has been filed on behalf of a putative class consisting of all individuals in Florida who were the subject of Bank of America’s debt collection activities related to their residential property in Florida and who were represented by counsel with respect to said debt and still received pre-recorded or auto-dialed calls on their cellphones from the bank over the past four years.

Top Settlements

Did you buy dodgy gas from BP? If so, you may be in line for some cash. The petrochemical giant (BP Products North America Inc), reached a $7 million defective product settlement concerning allegations it sold contaminated gasoline. Contaminated gasoline? Don’t get me started.

According to a statement issued on the settlement, the BP contaminated gas lawsuit was filed after BP recalled approximately 4.7 million gallons of contaminated gasoline, which it distributed from its Whiting, Indiana, refinery to more than 575 retail outlets in Indiana, Illinois, Wisconsin and Ohio.

Various problems, ranging from engine issues to damaged fuel systems, resulted from the use of the contaminated gasoline, affecting thousands of customers. According to the statement, people who are eligible for a portion of the settlement will be notified in the near future…

Ok folks, Happy July 4 Weekend! See you at the bar!

Week Adjourned: 4.26.13 – Vitamin Shoppe, Acer, Sony TV

The weekly top class action lawsuit & settlement wrap for the week ending April 26, 2013. Top class actions include Vitamin Shoppe, Acer and Sony.

Top Class Action Lawsuits

True Athlete Training Formula Making Some Untrue Claims? Em, maybe. At least the folks who filed a consumer fraud class action lawsuit against Vitamin Shoppe Inc, who make and market a pre-workout muscle building and performance enhancing product called True Athlete Training Formula, believe so.

The True Athlete class action lawsuit, entitled Steven Hodges v. Vitamin Shoppe Inc., Case No. 13-cv-02849, U.S. District Court, Central District of California, contends that the Vitamin Shoppe “knowingly and/or recklessly ignored” all relevant scientific evidence which shows that L-Arginine Alpha Ketoglutarate, the main ingredient in True Athlete Training Formula, does not enhance athletic performance, build muscle, or improve cardiovascular function, as advertised. Well, it does sound a bit too good to be true. But hey—I’m an optimist.

However…the lawsuit also contends that the defendant “knowingly under-doses the remaining active ingredients to save money but still entice consumers by using efficacy claims for the compounds Creatine Monohydrate, Beta-Alanine (as Carnosyn), and AstraGin”, compounds well-known within the sports industry, according to the class action lawsuit. Specifically, the lawsuit states: “Defendant unapologetically, and with no remorse, boasts the inclusion of these popular ingredients in the Product, and then under doses them in the formula to make the Product useless.” And: “The inclusion of the ingredients at levels under the clinical dosage is nothing more than a new tactic at selling consumers ‘snake oil.’” Snake oil? I’ve had that stuff before!

Here’s the straight dope…the consumer fraud class action was filed on behalf of a proposed class of all California residents who purchased True Athlete Training Formula from the Vitamin Shoppe within the last four years.

Top Settlements

How’s your RAM these days? That would be Random Access Memory—the kind in your computer…(I don’t know about you, but the kind in my head is full and dates back to last century.) Well, it seems that Acer has decided to end a consumer fraud class action lawsuit alleging its RAM wasn’t up to the job either.

The official scoop on the Acer RAM class action— “The parties have reached a settlement in a nationwide class action lawsuit alleging that Acer America Corporation (“Acer”) advertised and sold Acer notebook computers that did not contain enough Random Access Memory (“RAM”) to support certain pre-installed versions of the Microsoft Windows Vista operating system. Acer denies the claims, but has agreed to the Settlement to avoid the costs and risks of a trial.“

And yes folks—you are a member of the class if you are a US resident who purchased a new Acer notebook computer that: (1) came pre-installed with a MicrosoftWindows Vista Home Premium, Business, or Ultimate operating system; (2) came with 1 gigabyte (“GB”) of RAM or less as shared memory for both the system and graphics; (3) was purchased from an authorized retailer; and (4) was not returned for a refund.

Class Members may claim either: (a) a 16GB USB Flash Drive with ReadyBoost technology; (b) a check for $10.00; (c) a check for up to $100.00 for reimbursement of any repair costs that were incurred before April 25, 2013 in an effort to resolve performance issues related to insufficient RAM; or (d) for Class Members who still own their computer, a 1GB or 2GB laptop memory DIMM that will allow the Acer notebook to operate with 2GB of RAM.

Any class member may seek to be excluded from the settlement by filing a notice of “opt out.” Class Members who remain in the settlement, either by submitting a claim or doing nothing, have the right to object to the settlement or ask to speak at the hearing. Opt out notices, objections, and any requests to appear are due by July 24, 2013. In order to get any benefits from the settlement, Class Members must submit a Claim Form by July 24, 2013. Claim forms will also be mailed and emailed to those class members for whom Acer has contact information. For more information about the settlement or to file a claim, visit www.AcerLawsuit.com.

Sony Display Resolution Class Action Resolved…And while we’re on the subject of technology—remember this one? The Sony Grand Wega SXRD rear-projection television defective products class action? (Sony Electronics, entitled Date v. Sony Electronics, Inc. & ABC Appliance, Inc., Case No. 07 CV 15474,United States District Court for the Eastern District of Michigan). Filed some time ago, granted, it does appear that a resolution may finally be in sight.

A proposed settlement has been granted preliminary approval, which includes all United States end user consumers who purchased, or received as a gift from the original retail purchaser, a KDS-R5OXBR1 or KDS-R6OXBR1 television.

The backstory—short version—allegations that Sony et al falsely advertised the display resolution of its Sony Grand Wega SXRD rear-projection television models KDS-R5OXBR1 and KDS-R6OXBR1, because the televisions were incapable of accepting input of 1080p signals and could not accept and display video content at 1080p resolution via the televisions’ PC and HDMI Input. Not good.

Here’s what you need to know if you are eligible for part of the settlement:

All class members who send in a valid claim form establishing that they own both (1) one of these televisions and (2) a 1080p output device like a Blu-ray player or 1080p-capable laptop computer or gaming device will be eligible to receive a $60.00 gift card that does not expire and is redeemable for the purchase of any item available on the store.sony.com website or at a Sony retail store.

If you do not own a 1080p output device, you will not be eligible to receive a benefit, but you will remain in the settlement class (and release your claims in this litigation, all of which relate to the 1080p capabilities of the televisions) unless you choose to opt out of the settlement.

All claim forms must be received by the claims administrator at the address provided in the claim form by no later than June 10, 2013 to be valid. To download claim forms, review your rights and find out more information on the settlement, visit http://esupport.sony.com.

Ok—that’s a wrap. See you at that bar…and Happy Friday Folks!

Week Adjourned: 1.18.13 – Clinique, Dell, Morgan Stanley, Goldman Sachs

The week’s top class action news–lawsuits and settlements that made the buzz this week. Top stories include Estee Lauder’s Clinique line, Dell computers, Morgan Stanley and Goldman Sachs.

Top Class Action Lawsuits

Speaking of wrinkles—it appears that Estée Lauder has hit one. The maker of Clinique cosmetic and skin care products is the latest to face a consumer fraud class action lawsuit over allegations of false and deceptive marketing practices.

In the Clinique false advertising lawsuit, entitled Margaret Ohayon et al. v. Estee Lauder Inc. et al., Case No. 2:33-av-00001, U.S. District Court for the District of New Jersey, plaintiff Margaret Ohayon alleges Estee Lauder uses deceptive advertising tactics to promote its Clinique Repairwear, Youth Surge and Turnaround collection as having the ability to make wrinkles “disappear,” rebuild firming collagen, and produce other anti-aging benefits.

The lawsuit alleges that if, in fact, the Clinique products could “rebuild stores of natural collagen” or “deliver 63% of the visible wrinkle-reducing power of a laser procedure,” the products would be regulated by the Food and Drug Administration. Not to mention your girlfriends would be all over it—like you could keep the effects a secret—I don’t think so.

The Clinique consumer fraud class action lawsuit is brought on behalf of a proposed class of all consumers who have purchased at least one Clinique product from the Repairwear, Youth Surge or Turnaround collection in the US.

The lawsuit seeks compensatory, treble and punitive damages; restitution; injunctive relief and more for alleged breach of express warranty, unjust enrichment, and violations of the New Jersey Consumer Fraud Act and consumer fraud laws of various states.

Top Settlements

Heads up: Taxing Situation at Dell… An unfair business practices class action lawsuit filed in California against Dell Computer Corp, has reached a tentative settlement totaling $275 million in potential refunds.

The class action lawsuit revolves around the payment of California sales tax on Dell service contracts…read on…

The lawsuit, entitled Mohan, et al. v. Dell, Inc. et al. alleged the Defendants (Dell Inc. f/k/a/ Dell Computer Corp.; Dell Marketing LP (“DMLP”), on its own behalf and as successor by merger to Dell Catalog Sales LP (“DCSLP”); BancTec, Inc.; and Worldwide Tech Services, LLC f/k/a/ QualxServ LLC) improperly charged California use tax on purchases of certain Optional Service Contracts and remitted these taxes to the California State Board of Equalization (“SBE”).

The parties have reached two distinct settlement agreements to resolve the legal action: the Dell Settlement and the SBE Settlement. Under the terms of the respective settlements, which cover purchases made between April 8, 1999 and June 30, 2008, funding for the settlements will be provided by Dell and the California State Board of Equalization. The settlements followed a 2006 trial court’s decision, later affirmed on appeal by the California Court of Appeals in 2008, ruling that optional service contracts sold by Dell were not subject to California sales or use tax, as they did not constitute tangible personal property and were readily separable from the computer hardware with which they were sold.

Further, the terms of the two settlements stipulate that customers of Dell who purchased and paid tax on service contracts covering computer hardware during the class action period will be entitled to a full refund of all such taxes that they paid.

The settlement consists of more than $275 million in refunds. Notices will be mailed to customers informing them of the amounts of refunds available to them and instructions for the timely filing of claims. The Court will review the settlement agreements at the Final Hearing to be held in April, 2013.

Class members who are eligible to receive a refund under one or both of these settlement agreements must file a claim or claims to receive any refund(s). Each settlement agreement has different criteria for eligibility. For more information on eligibility and how to file a claim for the separate settlements, visit sctaxsett.com.

Welcome Home[Owner] News. This one’s a whopper…and some welcome news for home owners who suffered dodgy loan servicing and/or foreclosure at the hands of Morgan Stanley or Goldman Sachs. This week the Federal Reserve announced it has reached a settlement with the two financial institutions over alleged loan servicing and foreclosure abuses.

Under the terms of the settlement, reported by CNNMoney.com, Morgan Stanley will provide $97 million in direct cash payments to borrowers and $130 million worth of other relief, including loan modifications and the forgiveness of deficiency judgments. Goldman will pay $135 million to borrowers with a further $195 million provided as relief.

Here’s the skinny. The settlement provides for over 220,000 homeowners who held mortgages with the two banks’ former subsidiaries: Goldman’s Litton Loan Servicing and Morgan’s Saxon Mortgage Services, and subsequently faced foreclosure in 2009 and 2010. According to CNNMoney.com “over four million borrowers will split a total of $3.5 billion in cash compensation, with payments ranging from a few hundred dollars to potentially as much as $125,000 in a small percentage of cases. Those eligible are expected to be contacted by the end of March, regulators said.”

This settlement follows the $8.5 billion agreement announced last week by the Federal Reserve and the Office of the Comptroller of the Currency with 10 other banks over foreclosure issues.

Goldman Sachs was ordered to review its subsidiary’s foreclosure practices in September 2011, as was Morgan Stanley in April 2012. Those reviews were not initiated and will now be scrapped as a result of this settlement deal.

Well this news is worth a minor celebration—on top of the fact that it’s Friday. So—see you at the bar!

Week Adjourned: 9.21.12 – Arctic Zero, Payless Shoes, Citizens Bank, TD Bank

The weekly wrap on top class action lawsuits and settlements for the week ending September 21, 2012.

Top Class Action Lawsuits

Zero Truth? Before you take what you think may be a harmless mouthful of melt-in-your-mouth pleasure—namely Arctic Zero frozen desserts—WAIT—that ‘150 calorie per pint’ thing—may not be entirely accurate. At least that’s the claim in a consumer fraud class action lawsuit filed against Arctic Zero this week. The lawsuit claims the frozen desserts have 46% to 68% more calories than advertised. If this is true, it is seriously bad news for everyone.

The lawsuit, entitled Brenda Freeman v. Arctic Zero, Inc., Case No. 12-cv-2279 L BGS, US District, Southern District of California, alleges the company deceptively labels and markets its frozen treats as having only “150 calories per pint.” However, the frozen desserts contain up to 68% more calories than advertised based on findings from recent independent laboratory tests performed by EMSL Analytical, Inc. The deserts include Arctic Zero Chocolate Peanut Butter, and Arctic Zero Vanilla Maple which allegedly has 46% more calories than the 150 calories prominently advertised on the front of the product packaging as well as on its nutritional label, according to the class action lawsuit.

The Arctic Zero class action lawsuit is seeking to represent a proposed class of all U.S. persons who, since 2009, purchased any Arctic Zero frozen desserts advertised as containing 150 calories per pint or less. They’re seeking damages and restitution for Class Members as well as an injunction barring Arctic Zero from continuing to falsely advertise the calorie content of their products.

Top Settlements

Payless to PayMore? Payless shoes looks set to pay more to settle fraudulent advertising claims for its Champion toning shoes. A proposed settlement (the “Settlement Agreement”) has been reached in the consumer fraud class action lawsuit against Payless ShoeSource, Inc. (“Payless” or “Defendant”). The Payless toning shoe lawsuit has been brought on behalf of a nationwide class of persons who purchased any Champion-branded style of toning shoes.

The lawsuit alleges that Payless engaged in untrue and deceptive advertising promotion and marketing practices associated with its Champion-brand toning shoes. You may be a member of the Settlement Class and might be eligible to receive a merchandise certificate worth $8.00 if you are a person who purchased any Champion-branded toning shoes during the period January 21, 2006 through June 25, 2012.

If you are a Settlement Class member and the Court gives final approval to the Settlement Agreement:

You may be entitled to receive an $8.00 merchandise certificate (a “Settlement Payment”).
You will be giving up the right to bring certain legal claims in the future, as discussed more fully below.

To Submit a Payless Toning Shoe Settlement Claim Form

If you are a Settlement Class member and would like to receive your Settlement Payment, you must submit a Claim Form, either through the mail or by by clicking here. You will be giving up legal claims against the Defendant and other related entities. Your claim must be submitted or postmarked no later than January 5, 2013.

If you do nothing, you will not receive your Settlement Payment. You will, however, still be giving up legal claims against Defendant and other related entities.

To Exclude Yourself from the Payless Toning Shoe Settlement

You will receive no benefits, but you will not be giving up your right to sue Defendant or related entities.

If you believe you are a Settlement Class member and would like further information, go to paylesstoningshoeclassaction.com

More bang on your buck? Umm, maybe not. Hopefully not. It all depends on whether or not preliminary settlements are approved in two class actions brought against Citizens and TD Banks.

This week, a federal judge in Miami preliminary approved two settlements in the excessive overdraft fees class action lawsuits against Citizens Bank and TD Bank. If approved, Citizens and TD Banks would be the first two of 14 banks to settle their cases. The settlement agreement will see Citizens pay $137.5 million and TD $62 million. Cha ching!

The lawsuit alleged the banks charged excessive overdraft fees on checking account customers. Specifically, the banks’ internal computer system re-sequenced the actual order of its customers’ debit card and ATM transactions, by posting them in highest-to-lowest dollar amount rather than in the actual order in which they were initiated by customers and authorized by the bank. The plaintiffs alleged that this practice resulted in bank customers being charged substantially more in overdraft fees than if the debit card and ATM transactions had been posted in the order in which they were initiated and authorized.

A final hearing seeking approval of the settlements is scheduled for March 7, 2013.

Okee dokee. That’s it for this week—See you at the bar.