Settlement - Part 10

Week Adjourned: 5.6.16 – Wendy’s Data Breach, Honeywell, More Talc Powder

Top Class Action Lawsuits

Drive Around to the First Window and… It’s been a while since we’ve reported a data breach class action. This week, one such lawsuit was filed against Ohio-based Wendy’s by First Choice Federal Credit Union, alleging a five-month long data breach could have been prevented if the company had acted faster.

From October 22, 2015 through to March 10, 2016, hackers accessed Wendy’s computer systems and stole what could be millions of consumer credit cards that had been used at certain Wendy’s locations. So someone besides was making change on your burger and fries. And let’s not get started on the issue of inconvenience!

“As a result of Wendy’s data breach, plaintiff and class members have been forced to cancel and reissue payment cards, change or close accounts, notify customers that their cards were compromised, investigate claims of fraudulent activity, refund fraudulent charges, increase fraudulent monitoring on potentially impacted accounts, and take other steps to protect themselves and their customers,” the Wendy’s data breach lawsuit claims.

Specifically, the plaintiffs claim that Wendy’s holds on to credit card information longer than necessary and failed to meet the October 2015 deadline for EMV cards and terminals.

“Despite the growing threat of computer system intrusion, Wendy’s systematically failed to comply with industry standards and protect payment card and customer data,” the lawsuit states, noting that as a consequence, financial institutions have borne the brunt of the data breach.

The complaint asserts that Wendy’s used outdated and easily hackable computer and credit card systems, and that the company failed to meet federal regulations and guidelines around computer and data security, stating that Wendy’s “refused to take steps to adequately protect its computer systems from intrusion.”

A Wendy’s spokesman has said that malware was discovered by third-party investigators, but the company has yet to confirm how many of its 6,000 stores had been hacked.

Honeywell Warranty Class Action Warranted… This is why you want your day in court: A proposed defective products class action brought by consumers against Honeywell International was given the green light this week, by a judge who just wasn’t buying the corporate line. US District Judge Berle M. Schiller of the Eastern District of Pennsylvania told the defendant, Honeywell International, that essentially they couldn’t make a case to have the suit tossed.

The Honeywell class action asserts that Honeywell TrueSTEAM humidifiers were defectively designed and inadequately covered by warranty. Feel the swamp waters rising? Yes, well, read on.

According to the complaint, the humidifiers are unreliable, difficult to maintain, and prone to malfunction and deterioration.

Judge Schiller wrote in his memorandum, “According to plaintiffs, Honeywell is aware of the problems with its humidifiers, but uses an ‘overly burdensome warranty claims process that is designed to, and does, deter customers from making claims under their warranties.” And, “Honeywell’s remedy to repair fails of its essential purpose because Honeywell simply replaces defective humidifiers with ‘the same defectively designed humidifiers that are prone to the problems complained of by plaintiffs and members of the classes.'” Thank you Judge Schiller.

The plaintiffs also allege they were told their defective units would not be serviced until technicians inspected them. They are seeking recovery for the related removal and repair costs, since they claim Honeywell promised that each unit would be free from defect, and if it wasn’t, the company would repair the unit. Oh yes, the fine print—but just wait…

“According to the amended complaint, however, that promise was false. Instead, plaintiffs were required to satisfy Honeywell, through an authorized technician and/or a contractor’s inspection, that the humidifier actually was defective,” Schiller wrote. “Thus, Honeywell placed an additional burden upon plaintiffs seeking to repair or replace their defective unit.”

The judge wrote that the plaintiffs have adequately alleged that the humidifiers were defective five years after the purchase date as the warranty promised, and that Honeywell failed to replace the units as it expressly warranted.

The plaintiffs asserted breach of express warranty, breach of implied warranty, unjust enrichment, and other claims.

I’ll bet those plaintiffs are happy campers this weekend.

Top Settlements

A Bittersweet Victory… This week, a $55 million settlement was leveled against Johnson & Johnson (J&J) by a jury hearing the case of a woman who alleges her use of the company’s talc-powder products for feminine hygiene caused her to develop ovarian cancer.

This is the second J&J talc powder verdict in a row against J&J in talc-cancer lawsuits J&J plans to appeal. The company is facing some 1200 such lawsuit all claiming the company failed to adequately warning consumers about its talc-based products’ cancer risks.

The trial took three weeks, and returned the verdict in favor of Gloria Ristesund in a day. She was awarded $5 million in compensatory damages and $50 million in punitive damages.

According to her suit, Ristesund used J&J’s talc-based powder products, which include the well-known Baby Powder and Shower to Shower Powder, on her genitals for decades. According to her lawyers, she was diagnosed with ovarian cancer and had to undergo a hysterectomy and related surgeries. Her cancer is now in remission.

The verdict in the first J&J talc-cancer lawsuit awarded $72 million to the family of a woman who died from ovarian cancer. She had also used the talc powder for feminine hygiene for years.

Ok, that’s a wrap folks…Have a good one. See you at the Bar!

Week Adjourned: 4.29.16 – Dometic, Mazda, Kodak

Top Class Action Lawsuits

Refrigerators that double as Barbeques? Not a hallmark moment in industrial design, apparently. Nor, it seems, a feature appreciated by consumers. This week, Dometic, maker of these particular refrigerators, got hit with a seemingly long overdue defective products class action lawsuit alleging the fridges can spontaneously ignite on boats and RVs. Gotta love that action. It could definitely put a damper on cocktail hour.

According to the Dometic refrigerator complaint, the refrigerators have caused or contributed to at least 3,000 fires since 1997, resulting in more than $100 million in property damage and personal injury claims. Further, the lawsuit states that Dometic tracked the claims but “failed and refused to eliminate the defects and/or provide consumers with adequate warnings.”

The class action, which includes five individual RV plaintiffs, states the plaintiffs believe that 1.5 million RVs and boats in the country are equipped with “defective gas absorption refrigerators.”

Here’s the skinny, according to the plaintiffs:

“In particular, defendants have concealed the true nature of the defects in the defective gas absorption refrigerators; have failed to properly repair the defective gas absorption refrigerators; and have instead initiated recall and retrofit campaigns which fail to address the underlying defects in the defective gas absorption refrigerators, fail to alleviate the risk of fire, and when engaged, require the defective gas absorption refrigerators to be replaced.”

According to the complaint, not only have the plaintiffs lost money on the cost of the refrigerators, they have also had to pay hundreds of dollars to repair or replace their gas absorption refrigerators after the defendants’ failed attempts to fix the defects.

“Plaintiffs have also lost money as a result of having to pay hundreds of dollars associated with loss of use of their RVs or boats,” the complaint states. “Finally, plaintiffs have lost money because they paid for a safe and useful gas absorption refrigerator for their RV or boat and the value of their RV or boat has decreased because of the installed defective gas absorption refrigerator.”

“Defendants have used and manipulated the recall process to conceal the true dangers and safety risks inherent in their defective gas absorption refrigerators from both federal regulators and consumers. As a result, United States highways and campgrounds are flush with RVs containing defective gas absorption refrigerators that can, and with alarming regularity do, spontaneously burst into flames,” the suit states, noting two recalls issued by Dometic.

The plaintiffs are seeking repair or replacement of their defective refrigerators and compensation by Dometic to consumers for the diminution of value of their RVs and boats.

From the sounds of it, they’re quite fortunate no one was killed.

Vroom, Vroom, er…or Not. Mazda did not escape the week unscathed, as it found itself on the receiving end of a defective automotive class action lawsuit alleging certain of its vehicles have defective clutches. Ok—I’m pretty sure those are meant to be in good working order at all times. According to the suit, the defect represents a significant safety risk to both drivers and passengers, the plaintiffs assert. Yup.

Filed by Megan Humphrey, Iris Gonzalez, Charles Bunch, Anne Stom, David Woodward, Greg Thomason, Lisa Massey and Dan Carney, individually and for all others similarly situated, against Mazda Motor Corporation and Mazda Motor of America Inc., the Mazda complaint alleges model year 2010-15 Mazda 3 vehicles with 5- or 6-speed manual transmissions contain defective clutch release levers, bearings and pins. Where do you start?

The plaintiffs state in their complaint that the defect causes premature wear to the vehicle’s manual transmission and related components, ultimately resulting in premature clutch system or transmission failure.

The lawsuit cites breach of express and implied warranties and violations of consumer protection statutes in California, Texas, Florida, Maryland, Washington, Pennsylvania and Connecticut.

FYI – The case is US District Court for the Northern District of California Case number 4:16-CV-02087-KAW

Top Settlements

Not a Kodak Moment? One for the little guy this week—who was accused Eastman Kodak of pawning off dodgy stock to their employees. The company reached a $9.7 million settlement in a securities lawsuit brought by former and current employees, who allege Kodak should be held liable for continuing to offer Kodak stock as an investment option even though the company was in extreme financial distress, and therefore making its stock a risky investment. Very nice.

The lawsuit stems from Kodak’s 2012 bankruptcy filing, involving participants in the company’s savings and investment plan for employees and the Kodak Employee Stock Ownership plan. The class action includes over 21,000 people.

The Kodak employee stock agreement is still subject to a fairness hearing scheduled to be held this August. The settlement includes costs and attorneys’ fees.

People affected by the settlement do not need to do anything in order to get whatever money is owed them.

Ok –That’s a wrap folks…Have a good one. See you at the Bar!

Week Adjourned: 4.22.16 – Xarelto, Natural Sunscreen, NFL Concussions

Top Class Action Lawsuits

Xarelto Lawsuits Head North. Bayer Inc, is facing a Xarelto class action lawsuit filed in Canada—in Calgary to be precise—alleging its blood thinner is linked to dozens of deaths. The lead plaintiff in this class action alleges that the anticoagulant drug caused her to suffer from an uncontrollable bleeding event which nearly led her to cardiac arrest. Sadly, this lawsuit has a familiar ring to it.

According to reports published in the Calgary Sun, as of March 2015, Health Canada had received an estimated 1,100 adverse event reports from patients taking Xarelto. The article indicates that, according to a lawyer from Toronto, if the class action is successful, “…it would be in the millions of dollars.” The Calgary Sun report also discussed the likely formation of another class action suit in Ontario at this time.

This Canadian Xarelto class action lawsuit closely follows the formation of Multidistrict Litigation number 2592 in the United States by the U.S. Judicial Panel on Multidistrict Litigation. This MDL consolidated and transferred over 2,800 lawsuits filed in reference to Xarelto by plaintiffs who allege much the same. These lawsuits are additionally joined by another group of 620 Xarelto lawsuits which have been formed into a mass tort program by the Court of Common Pleas in Philadelphia, Pennsylvania. Lawsuits in these groupings have been filed against defendant Bayer AG as well as Janssen Pharmaceuticals, a subdivision of Johnson & Johnson corporation.

Not in our Nature? Where would we be without our weekly dose of consumer fraud litigation? This week, it’s Sunology Natural Sun Protection who is facing a consumer fraud class action lawsuit. The allegations are that the advertising of its sunscreen products is misleading to the consumer.

Filed by Vivian Douek, individually and for all others similarly situated, the Sunology Natural Sun complaint alleges the defendant, McNabb LLC, doing business as Sunology Natural Sun Protection, markets and advertises certain of its SPF 50 sunscreens as containing “active ingredients derived from nature”, and therefore these products are “natural.”

However, the plaintiffs contend that these products in fact contain various artificial and synthetic ingredients. Consequently, consumers paid a premium for products the defendant misrepresented, according to the complaint.

Therefore, the lawsuit states that the defendant is in violation of New York General Business Law and consumer protection statutes in every state, violation of the Magnuson-Moss Warranty Act, breach of express and implied warranties, unjust enrichment and negligent misrepresentation.

Top Settlements

NFL Concussion Update… Heads up—and pardon the pun—this really isn’t a laughing matter. A $1 billion settlement has been upheld in the infamous concussion class action lawsuit brought by National Football League (NFL) players against the NFL.

Approved by the 3rd U.S. Circuit Court of Appeals, the revised settlement deal will resolve thousands of lawsuits brought against the league, as well as covering over 20,000 retired NFL players for the next 65 years. According to estimates by the NFL, 6,000 former players, or nearly three in 10, could develop Alzheimer’s disease or moderate dementia.

The original settlement was appealed as critics had argued that any settlement must include future payments for chronic traumatic encephalopathy (CTE), the brain decay found in dozens of former players after their deaths.

While the appellate judges acknowledge those points in the 69-page ruling, they found the settlement was for the greater good of all players.

According to the terms of the agreement, funds of up to $4 million could be paid for prior deaths involving CTE. However, a cut-off date of April 2015 has been set to avoid the encouraging suicides.

Ok –on that note – we’re done here. See you at the Bar!

Week Adjourned: 4.15.16 – 24-Hour Fitness, Cold FX, Goldman Sachs

Top Class Action Lawsuits

Fitness Flub…24 hour Fitness has its feet to the fire again, this time—well, as always—it’s a consumer fraud class action lawsuit alleging the national fitness chain raised its customers’ fees for use on lifetime memberships, in violation of various state laws in California, Texas, and Oregon.

Filed by Kevin O’Shea of California, Mark Vitcov of Oregon, and Rod Morris of Texas, individually and for all others similarly situated, the 24 Hour Fitness lawsuit claims sales representatives employ aggressive sales pitches to induce consumers into buying lifetime memberships to its gyms. Under the terms of these lifetime memberships, customers must prepay three years of membership fees, following which they pay only nominal renewal fees.

However, according to the lawsuit, while the annual renewal fees were supposed to remain constant for the rest of the member’s life, when the defendant came under new ownership it stopped honoring its lifetime fee guarantees and announced that it would raise lifetime members’ annual renewal fees beginning in 2016. Can you say “Scamorama?”

The lawsuit alleges fraud, violation of California’s Consumer Legal Remedies Act, its Unfair Competition Law, and its Health Studio Services Contract Law, violation of Oregon’s Unlawful Trade Practices Act, and violation of Texas’s Health Spa Act and its Deceptive Trade Practices Act. The case is US District Court for the Northern District of California San Francisco Division Case number 3:16-CV-01668-EDL.

Placebo FX? A Canadian consumer fraud class action lawsuit to report this week. It was filed against the makers of the popular over-the-counter cold treatment, Cold-FX, alleging the product is no more effective at preventing colds and flu than a placebo. Now there’s a thing.

The Cold FX lawsuit was originally filed by Vancouver Island resident Don Harrison in 2012, against Cold-FX, which is owned by Valeant Pharmaceuticals and its subsidiary, Afexa Life Sciences. The lawsuit cites advertising in which Cold-FX claims to provide “immediate relief of cold and flu” if taken over a three-day period at the first sign of symptoms.

Here’s the rub, according to the complaint, the defendants ignored their own research and misled consumers about the short-term effectiveness of the popular cold and flu remedy. Hey—if it’s true—they wouldn’t be the first.

According to Harrison’s notice of claim, Valeant and Afexa continued to “knowingly or recklessly” promote Cold-FX despite evidence the natural-health product only had a possible positive impact after being taken daily for prolonged periods of two-to-six months. That’s a long lead time for any cold remedy—you would be on this stuff for life, effectively. Or not. Wonder if it’s publicly traded…

The lawsuit claims that people paid money for a worthless product. According to the attorney representing Harrison, Valeant and Afexa failed to release data from an internal study conducted in the early 2000s that contradicted the health claims around Cold-FX. The defendants knew at least as early as 2004, when they had a study done themselves, that Cold-FX might be even less effective than a placebo, the lawsuit alleges.

An identical lawsuit has been filed in Saskatchewan.

Top Settlements

Goldman Sachs hit with $41 Million Bill…stemming from allegations brought by Illinois Attorney General Lisa Madigan in yet another residential mortgage-backed (RMBS) securities lawsuit. Ka-Ching!

The charges specifically allege misconduct during the bank’s marketing and sale of RMBS prior to the 2008 economic collapse—remember that? Goldman Sachs allegedly failed to disclose the true risk associated with many of its RMBS investments.

According to the terms of the settlement, GS will pay $25 million to the Illinois’ pension system and $16 million will be given in relief to Illinois consumers.

This settlement is part of a larger, $5 billion national settlement resulting from legal action taken by the US Department of Justice and state attorneys general and other entities.

Ok—That’s a wrap folks…Have a good one. See you at the Bar!

Week Adjourned: 4.8.16 – Hyundai, Kia, Hertz, J&J Hip Implants

Top Class Action Lawsuits

New Month, New Defective Auto Lawsuit… This time, it’s a Hyundai and Kia defective automobile class action. The car companies are facing the wrath of consumers, who allege the paint on 2006-2016 Hyundai Santa Fe, Sonata, and Elantra vehicles contain an identical and inherent defect which causes the paint to bubble, peel and flake off the vehicle, which can lead to rusting and corrosion.

Filed by Michelle Resnick, Shelby Cramer, Lauren Freed, Paul Sandlin, Patricia Reynolds, Christopher Baker, and Tara Mulrey, individually and for all others similarly situated, the lawsuit claims vehicle owners must either live with these problems or spend significant amounts of money to repair and repaint the vehicles.

The plaintiffs allege breach of express and implied warranties, negligent misrepresentation, fraudulent concealment, unjust enrichment, violation of California’s Consumer Legal Remedies Act, violation of California’s Business and Professions Code, and violations of unfair and deceptive trade practices acts in several states. Go get’em.

The case is US District Court for the Central District of California Case number 8:16-CV-00593-BRO-PJW.

Some Hurtin’ for Hertz…Heads up Hertz customers…in yet another consumer fraud class action filing this week, America’s largest car rental company stands accused of not playing fair with its terms and conditions as stated on its website. The Hertz lawsuit, in fact, alleges violations of the New Jersey’s Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA). Read on.

The skinny is that named plaintiff, David Hecht, claims the terms and conditions states on the Hertz website violate TCCWNA because of a failure to state how they affect New Jersey residents.

Here’s what that looks like: Hecht’s allegations target Hertz’s website for enrolling in the car rental company’s Gold Plus Rewards Program. Hecht’s lawsuit specifically references a portion of the TCCWNA that states “No consumer contract, notice or sign shall state that any of its provisions is or may be void, unenforceable or inapplicable without specifying which provisions are or are not void, unenforceable or inapplicable within the State of New Jersey.”

Hecht seeks to represent two classes in his lawsuit. The first would be those New Jersey residents enrolled in Hertz Gold Plus Rewards when the case was filed. This class also would include New Jersey residents enrolled in the program six years prior to whenever the website’s Terms and Conditions stated “in words or substance, that Gold Plus Rewards offers are void where prohibited, without specifying whether these provisions are or are not void, unenforceable or inapplicable within the State of New Jersey.”

The second proposed class would include New Jersey residents who rented a Hertz vehicle for personal, household or family purposes via company’s website within six years of the date of the filing. That class would cover a period when Hertz’s Terms of Use said “that except as otherwise required by law, price, rate and availability of products or services are subject to change without notice and that the Hertz’ General Terms of Use are void where prohibited, without specifying whether these provisions are void, unenforceable, or inapplicable within the State of New Jersey.”

Top Settlements

J&J $502M Hip Award. This should cause some serious thinking at J&J. The company was ordered to pay a whopping $502 million settlement this week, which was awarded by a jury in Dallas hearing the consolidated lawsuits of five plaintiffs who all allege that DePuy Orthopedics and Johnson & Johnson (J&J) Ultamet hip implant is defective and caused them pain, injury and suffering.

The plaintiffs who accused the company of hiding flaws in its Pinnacle artificial hips that caused the devices to prematurely fail and left them facing surgeries and pain.

FYI—the DePuy Ultamet hip replacement devices are metal-on-metal. The problem with metal-on-metal devices is that metal debris can reportedly come loose, resulting in metals being absorbed by the patient’s surrounding tissue and causing excess levels of chromium and cobalt in the patient’s blood. Furthermore, patients may experience pain, inflammation and soft tissue damage in the area around the hip, making mobility difficult if not impossible.

The jury awarded $142 million in actual damages and $360 million in punitive damages. You want to say congratulations, but “really?”

Ok, that’s a wrap folks…see you at the bar!

Week Adjourned: 4.2.16 – Facebook, Gun Safety, Corinthian College

Top Class Action Lawsuits

Facebook Data Mining for (Ad) Dollars? This is very disheartening, if the allegations are proved true. A privacy class action lawsuit has been filed against Facebook and several high profile cancer institutes, alleging FB mined private health data from websites of the cancer institutes to generate advertising campaigns.

The cancer institutes named as co-defendants in the proposed class action are: the American Cancer Society Inc., American Society of Clinical Oncology Inc., Melanoma Research Foundation, Adventist Health System, BJC Healthcare, the Cleveland Clinic, and the University of Texas-MD Anderson Cancer Center.

Filed by Winston Smith, a registered Facebook user and Missouri resident, the 88-page complaint claims the medical institutes’ websites include a secret “Facebook code” that allow users’ data to be transmitted to Facebook, which then creates targeted advertising campaigns.

“Without the knowledge, consent, or any action of the user, the entire process happens in milliseconds,” the complaint states.

According to Smith, he searched for lung cancer information on the American Cancer Society’s website, Cancer.org. The information he sought and any links he clicked then were sent to Facebook without his knowledge and without his consent.

“Despite Cancer.org’s Privacy Policy, the Plaintiff’s communications to and from Cancer.org were contemporaneously re-directed to, tracked, intercepted, and acquired by Facebook through the process described above,” Smith alleges. “Upon these and other communications, Plaintiff’s cancer-related communications were disclosed to, tracked, and intercepted by Facebook through cookies and other identifiers.”

In the complaint, Smith asserts that users of such websites “trust” that their personal details of their cancer-related searches and browsing with not be shared with third-parties. The complaint also notes that Facebook, itself, does not disclose in its data and privacy policies that it tracks and collects such “sensitive information.”

The lawsuit was filed in the US District Court for the Northern District of California.

Gun Safety Gone Wrong? This one kind of redefines defective products. A class action lawsuit has been filed against the gun manufacturer/importer Century Arms, alleging the safety levers on certain models are defective. Terrific.

Specifically, the Century rifles lawsuit contends that numerous Century-branded AK rifles and pistols are equipped with a safety selector lever that can be pushed above the “safe” position. In turn, a user can then unknowingly disengage the safety mechanism and accidentally discharge the gun without pulling the trigger.

According to the complaint, the problem is linked to the firearm’s “inadequate design, manufacturing, and testing,” and adds the feature “will not prevent and has not prevented accidental discharge of the guns.”

Further, the plaintiffs cite a YouTube video which shows the alleged defect as being the result of Century maintaining a full-auto safety selector rather than modifying it with a semi-auto safety selector, much like its competitors.

Based in Delray Beach, Florida, Century is a known importer of Russian surplus weapons including AK-47 rifles. According to federal law, the company must modify the firearms to comply with U.S. regulations before entering them in commerce.

The plaintiffs contend that Century is aware of the defect as it changed the safety selector on current models. However, the lawsuit notes, Century has never issued a warning to the public or recalled defective models.

“Century is aware that the Class AK-47 Rifles and Pistols have fired as result of the Safety Selector defect, and it is only a matter of time, if not already, before individuals are seriously injured or killed,” the lawsuit states. At a loss for words here.

The class consists of plaintiffs from across the US who have experienced an unintentional discharge with their Century firearm due to the safety lever. In most of the cases, the safety lever advanced beyond the safe position to cause the gun to fire without the pull of the trigger. In one case, a round discharged inside an apartment, ripping through the wall and entering the neighboring unit. None of the instances resulted in injury or death.

The class action suit accuses Century of violating 10 counts of state and federal laws that protect consumers.

Top Settlements

Corinthian College Takes a $1.1B Hit. And justice prevails…in the form of a $1.1 billion judgment handed down against the for-profit Corinthian Colleges Inc. (CCI), for its alleged predatory and unlawful business practices. It’s about time.

The lawsuit was filed by the office California Attorney General Kamala D. Harris.

The now defunct CCI allegedly misrepresented training programs and job placement rates, and pushed students into high interest loans. A lawsuit was also filed by Attorney General Martha Coakley, against the school.

According to Harris’ office, CCI intentionally targeted low-income, vulnerable Californians through false advertising and aggressive marketing campaigns. The organization purportedly misrepresented job placement rates and school programs. It conducted this false advertising via the Internet, telemarketing and television ad campaigns.

Ok, that’s a wrap folks…See you at the bar.

Week Adjourned: 3.25.16 – Old Spice, Tyson Foods, Dialysis Drug

Top Class Action Lawsuits

Heads up all Old Spice guys… And gals, too. Proctor & Gamble (P&G) got hit with a consumer fraud class action lawsuit alleging its Old Spice deodorant “ regularly and routinely causes rashes, irritation, burning and other injury to unsuspecting consumers.” How attrractive.

Filed by Rodney Colley on behalf of himself and all others similarly situated, the Old Spice lawsuit contains a photo of Colley’s armpit areas, alleging that the severe rash depicted in the images was caused by Old Spice deodorant.

Further, the lawsuit alleges numerous complaints have been registered against the product online, citing adverse reactions to the Old Spice deodorant and no adequate warnings or safety notices on the products.

The lawsuit names the following Old Spice brands:

Old Spice After Hours Deodorant, Old Spice Champion Deodorant, Old Spice Pure Sport High Endurance Deodorant, Old Spice Artic Force High Endurance Deodorant, Old Spice Bearglove Deodorant, Old Spice Lion Pride Deodorant, Old Spice Swagger Deodorant, Old Spice Fresh High Endurance Deodorant, Old Spice Aqua Reef Deodorant, Old Spice Classic Fresh Deodorant, Old Spice Fiji Deodorant, Old Spice Wolfhorn Deodorant, Old Spice Champion Deodorant.

Top Settlements

Big news on the Employment Lawsuit front this week… Tyson Foods lost its challenge to a $5.8 million class action judgment in an unpaid overtime and wages class action brought by Tyson workers at an Iowa pork-processing facility. The U.S. Supreme Court in a 6-2 ruling written by conservative Justice Anthony Kennedy, upheld a 2014 appeals court decision in favor of the Tyson workers.

The court has been considering an objection to the use of statistics to determine liability and damages claimed by the workers.

The Tyson lawsuit was filed by workers in at the meat-processing facility in 2007. The plant employs around 1,300 people. The plaintiffs claim they were entitled to overtime pay and damages because they were not paid for time spent donning and donning off protective equipment and walking to work stations. More than 3,000 current and former employees are suing Tyson.

The case is Tyson Foods Inc v. Bouaphakeo, U.S. Supreme Court, No. 14-1146.

Fresenius Dialysis agreement… Here’s another biggie in the defective medical products arena. Fresenius Medical Care reached a $250 million agreement potentially settling claims alleging harm from their dialysis drugs, GranuFlo and NaturaLyte. The settlement amount will be $250 million, but they need 97% of the plaintiffs to buy in by July of 2016 or the deal dies. If everyone’s onboard, funding will be provided in August of 2016.

The lawsuits, combined into a multi-district litigation (MDL), centers upon Fresenius’ two dialysates Granuflo and Naturalyte, which have been blamed for heart problems, strokes and death in thousands of patients. Reportedly, there are more than 1,800 lawsuits consolidated into MDL under US District Judge Douglas P. Woodlock in the District of Massachusetts (In re: Fresenius GranuFlo/NaturaLyte Dialysate Litigation, MDL No. 2428).

The lawsuits allege that Fresenius Medical Care knew of the danger in their products and failed to adequately warn and inform the public. Further, there are allegations that claim the company neglected to warn health care providers as well as properly train them on how to use these dialysis products safely.

Additionally, the lawsuits claim Fresenius failed to warn dialysis clinics, outside its own Fresenius clinics, of potential Alkali Dosing Errors.

Both Fresenius Medical Care products—Naturalyte and GranuFlo—are used in the treatment of acute and chronic renal failure during hemodialysis. The concentrate is formulated to be used with a three-stream hemodialysis machine, which is calibrated for acid and bicarbonate concentrates, according to the FDA safety recall initiated in March 2012. The recalled Naturalyte Liquid Acid Concentrate and Naturalyte GranuFlo (powder) Acid Concentrate was manufactured and distributed from January 2008 through June 2012.

Claims against Fresenius Medical Care include patients who have suffered injury or death as a result of using GranuFlo and/or NaturaLyte products during hemodialysis.

Ok, that’s a wrap folks…Happy Easter and all the jazz!

Week Adjourned: 3.18.16 – ADT, Hip Replacements, Risperdal

Top Class Action Lawsuits

Questionable Security? Heads up all you folks that have residential ADT security systems. The company got hit with a consumer fraud class action lawsuit this week, over claims they overstate the safety of its systems. That’s comforting.

Filed by Santiago L. Hernandez, individually and for all others similarly situated, the ADT lawsuit contends that, despite claims by ADT—that its home security equipment and monitoring services use the most innovative and advanced technology on the market—ADT’s wireless signals are both unencrypted and unauthenticated, and unauthorized third parties can easily intercept and interfere with them.

According to the lawsuit, Hernandez and other ADT consumers in the class are more vulnerable and less safe than ADT leads them to believe. The suit claims violation of the Florida Deceptive and Unfair Trade Practices Act, negligent misrepresentation and unjust enrichment.

The case is US District Court for the Southern District of Florida Case number 9:16-cv-80335-WJZ.

Top Settlements

Hip-Hip-Hooray! Well, sort of–though it probably doesn’t go far enough to take away all that the victims have been through. But here’s a whopper. To the tune of $502 million. That’s the verdict awarded to five plaintiffs in a bellwether trial concerning Johnson & Johnson’s DePuy Pinnacle metal-on-metal hip replacement devices.

The math goes $142 million in compensatory and $360 million punitive damages. The verdict was reached following 37 days of testimony in the US District Court for the Northern District of Texas Dallas Division.

The trial consolidated cases involving five separate plaintiffs who are residents of Texas. The lawsuits, including those of more than 7,000 plaintiffs nationwide in the multidistrict litigation (MDL), claim that the DePuy implants were defective and caused metal debris to enter into patients’ bloodstreams, causing severe injuries and sometimes leading to revision surgery.

According to attorneys for the plaintiffs, the evidence in the testimony against J&J was ground breaking, particularly in relation to what, in effect, amounted to hundreds of millions of dollars in bribes to orthopedic surgeons to use and recommend this product.

Plaintiffs’ attorneys also discovered several instances in which physicians lied in medical clinical testing of the devices and forged consent forms for patients who were using the product to lie about the results the patients experienced with the product.

Risperdal Settlement… Ortho-McNeil-Janssen Pharmaceuticals also got hit with a large Risperdal settlement this week—$124 million to be precise, ending nine years of litigation dealing with allegations it illegally promoted the anti-psychotic prescription drug Risperdal for unapproved or “off-label” uses. Ah, that old chestnut.

The charges were brought by South Carolina Attorney General Alan Wilson. In February he announced that Ortho-McNeil-Janssen will pay $124,324,700 in satisfaction of the settlement to South Carolina.

According to the lawsuit, Ortho-McNeil-Janssen employed aggressive marketing techniques to persuade doctors to prescribe the drug to their patients, including children with disabilities and elderly dementia patients. The company sent more than 7,000 letters to doctors, allegedly overstating the efficacy of Risperdal without FDA approval.

Risperdal (generic name Risperidone) is an atypical antipsychotic that works by changing the activity of certain natural substances in the brain. Developed by Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, Risperdal was approved by the FDA in 1993 for the treatment of schizophrenia in adults. Risperdal side effects include gynecomastia (male breast growth), tardive dyskinesia, high blood sugar and diabetes, stroke, heart attack and even death. As of September 2012 more than 420 Risperdal lawsuits had been filed, 130 of which are gynecomastia claims.

Ok, that’s a wrap folks…Have a good one. See you at the Bar!

Week Adjourned: 3.11.16 – J Crew, Swedish Med Center, Wheelchair Scam

Top Class Action Lawsuits

It’s on Sale—or—Maaaybe Not? J Crew got hit with a consumer fraud class action lawsuit this week, alleging the clothing retailer set an arbitrary “valued at” price for every item offered for sale on the J. Crew Factory store website. BUT—of course there’s a “but” —prices depicted as “original” or “regular” are allegedly misleading because no items are ever sold at the “valued at” price, but rather always sold at a price lower than the “valued at” price. So that would make those prices the regular prices, no?

Filed by Joseph A. D’Aversa, individually and for all others similarly situated, the J Crew sale pricing lawsuit further claims the defendants state their advertised sale prices are only available for a limited time. However each sale is immediately followed by another, similar sale. Consequently, the prices on J. Crew’s factory website are not discounts at all, but in fact the regular prices of the items, the complaints states, in violation of federal regulations prohibiting the advertising of “phantom” price reductions.

The lawsuit claims violations of consumer protection statutes in several states, violations of the New York General Business Law, violations of the New Jersey Consumer Fraud Act, breach of contract, breach of good faith and fair dealing, breach of express warranty, unjust enrichment and negligent misrepresentation.

Nasty, Negligent, and Not the First Time, Apparently. The Swedish Medical Center, in Denver, is facing a class action lawsuit alleging negligence regarding the hiring of an employee who, the three named plaintiffs Angelica Porras, Catherine Pecha and Gary Wolter, claim exposed themselves and other patients at the center to HIV, hepatitis B or hepatitis C.

Specifically, the Swedish Medical Center lawsuit claims the hospital negligently hired Rocky Allen, who has been indicted on two federal counts alleging he was caught stealing a syringe filled with fentanyl from an operating room. According to court documents, by the time the hospital hired Allen, he had been fired from four other hospitals. Further, he was court-martialed in 2011, when he was serving with the Navy in Afghanistan, for the theft of fentanyl. Court testimony revealed that he is carrying an undisclosed blood borne pathogen.

“By the time Allen appeared on the doorstep of SMC in August 2015 looking for a job as a surgical technician, all the warning signs of what would later occur at SMC were present,” the lawsuit states. “Allen already had been terminated by numerous other hospitals for the exact conduct that has now exposed thousands of SMC patients at an increased risk of blood borne pathogens.”

According to the complaint, despite having received negative test results for the three viruses, the three named plaintiffs were told that they remain at risk and should pursue continued blood testing.

The lawsuit claims the hospital negligently inflicted emotional distress and failed to properly supervise Allen after hiring him. The plaintiffs are seeking class-action status for anyone who had surgery at Swedish between August 17 and January 22. The hospital has offered free blood tests to 2,900 patients.

The named defendants are Swedish and its parent companies, Hospital Corp. of America and HealthONE of Denver Inc. The lawsuit also notes that another HealthONE hospital, Rose Medical Center, has experienced a drug-theft scandal. Yes, seem to remember that one.

Top Settlements

Wheelin’ & Dealin’ in the Worst Way? This is seriously uncool—Michael Mann, owner of Seattle-based Wheelchairs Plus, Inc., has been ordered to pony up $2.7 million to the Washington State Attorney General Bob Ferguson, who brought charges of consumer fraud against the company for overbilling Medicaid for some dodgy wheelchairs.

The facts, as reported, are that Mann billed the Medicaid program for 119 new wheelchairs, when in fact used wheelchairs were delivered to the disabled and poor across the state of Washington.

According to the allegations, between 2009 and 2012 Mann purchased used wheelchair parts from places including Craigslist and nursing home “graveyards.” He then assembled the mismatched parts into wheelchairs, painted them and sold them as new.

Ferguson’s office claims that Mann billed Medicaid as if these wheelchairs were new, unlawfully receiving $550,000 from the Medicaid program.

Wonder if there will be any new wheelchairs to replace the “recycled” ones?

Ok…That’s a wrap folks! See you at the Bar!

Week Adjourned: 3.4.16 – Tampon Tax, Macy’s, HSBC

Top Class Action Lawsuits

They’re Taxing What?? Not that I have a bias or anything, but it’s about time! Yup—it’s time to end the tampon tax! And five women in New York are just the gals to do it. The filed a tampon tax class action against the New York State Department of Taxation and Finance, claiming that the 4% sales tax charged by the state on tampons and other feminine hygiene products violates the Equal Protection clauses of the United States and New York State Constitutions. The suit cites the fact that the same sales tax does not apply to “medical” items like Rogaine, adult diapers and dandruff shampoo. Seriously—Rogaine has a “medical” classification?

The ladies are seeking a permanent tax exemption for feminine hygiene products and a full tax refund for all women who have purchased tampons or pads in New York over the last two years.

According to the lawsuit, most women spend $70 on tampons and pads annually. The state of New York collects $14 million a year from taxes on tampons from 5 million New Yorkers. That’s a lot of dough, Joe.

Apparently, New York State exempts medical items from its sales tax, but excludes pads and tampons from the “medical” classification. According to the Department of Taxation’s guide for retailers, feminine hygiene products are “generally used to control a normal bodily function and to maintain personal cleanliness.” This differentiates them in the fine print from over-the-counter medication for a “vaginal infection,” which treats a “specific medical condition.” So, how do they define “treat” ? (Conveniently, it would seem. Pardon my bias).

However, the plaintiffs contend that pads and tampons are necessary for the preservation of health, especially when compared to medicated Chapstick for a coldsore, by way of example.

In February, legislation was introduced that would exempt feminine hygiene products like tampons and pads from state sales tax, calling the tax “a regressive tax on women and their bodies that harkens back to a time when the laws were written by men for women.”

Go get’em!!!

Wage & Hour Woes for Macy’s… Macy’s got hit with a proposed employment class action alleging unpaid wages and overtime and failure to pay minimum wage this week. Lost count of how many retailers have been slapped with these charges.

This suit is brought by former employee Yulie Narz, who alleged in the complaint that Macy’s Stores West Inc. has “systemic illegal employment practices” in place, enabling the retailer to not pay employees for mandatory security checks of their bags conducted before meal breaks and at the end of shifts.

Narez worked for Macy’s from November 2013 through July 2015, according to the lawsuit. She also alleges the retailer fails to pay employees, who work shifts of five hours or more, for a 30-minute meal break or 10-minute rest breaks for every 3.5 hours of work, as required by California labor law. This has resulted in a loss of overtime pay and generally improper wage statements, according to the complaint.

“Plaintiff is informed and believes … that defendants had a consistent and uniform policy, practice and procedure of willfully failing to comply with [labor laws],” Narez states. “Defendants … have acted intentionally and with deliberate indifference and conscious disregard to the rights of all employees in receiving minimum wages and overtime wages for all hours worked.”

The case is Narez v. Macy’s West Stores, Inc., number 5:16-cv-00936, in the U.S. District Court for the Northern District of California.

Top Settlements

Homeowners Win One. Here’s a win for the good guys. A force-place insurance settlement has been reached between HSBC and the office of the Massachusetts Attorney General Maura Healey for $4 million, ending allegations that HSBC took illegal commissions and kickbacks for forced-place insurance policies. Nice…and why not, right?

Reportedly, thousands of borrowers were allegedly improperly charged force-placed insurance premiums, however, the affiliate did not perform the traditional functions of an insurance company. HSBC allegedly received compensation tied to force-placed insurance premiums until 2012, which the AG’s office believes was a conflict of interest.

The settlement will provide $2.67 million in restitution to affected Massachusetts homeowners, and $1.4 million to the state of Massachusetts.

Ok, so that’s a wrap folks… The sun is over the yard-arm and cocktails are in order—see you at the Bar!