Week Adjourned: 8.25.17 – Goldman Sachs, Talc Powder, Sony

Top Class Action Lawsuits

Did they not get the memo? Goldman Sachs Group (GSG) Inc, got hit with a discrimination class action lawsuit filed by a black female banker working in GSG’s personal wealth management unit. Specifically, plaintiff Rebecca Allen alleges GSG steered top clients to her Caucasian colleagues and denied her promotions because of her race. Seriously?

Allen states in the Goldman Sachs discrimination lawsuit that Goldman’s senior leadership team is virtually all-white and favors white bankers for promotions and lucrative accounts, resulting in their earning more than their black colleagues.

“Simply put, Goldman Sachs does virtually nothing to hire, promote or develop black talent, instead focusing its efforts on retaining and promoting white employees to positions of leadership,” the complaint states.

Allen was hired by GSG in 2012. According to the complaint, in 2016 she was removed from an account she had worked on for three years by a Goldman partner, Christina Minnis, who is also named as a defendant in the lawsuit. Allen says her supervisor met with Minnis about the decision and said she made racist and anti-Semitic comments about Allen, who is also Jewish.

Well, that about covers all the bases. See you in court!

The case is Allen v. Goldman Sachs Group Inc, U.S. District Court for the Southern District of New York, No. 1:17-cv-06195. 

Top Settlements

Big award for talcum powder cancer lawsuit … California just handed down a $417 million verdict to the plaintiff who claimed she developed terminal ovarian cancer after using the company’s talc-based products such as Johnson’s Baby Powder. The talc cancer case is the first to be heard in California against Johnson & Johnson (J&J). It is brought by California resident Eva Echeverria who alleges the company failed to provide adequate warning about the risk for cancer linked to the use of its talc-based products.

The Los Angeles Superior Court jury found in favor of Echeverria, awarding $70 million in compensatory damages and $347 million in punitive damages. This is the sixth trial against J&J to go to court, following five previously heard in Missouri state court which resulted in more than $307 million in damages against J&J. Prior to the Echeverria verdict, the largest single award was $110 million.

During the trial, Echeverria’s attorney’s alleged that despite J&J’s knowledge of years of studies that show a link between ovarian cancer and death and the use of genital talcum powder products, the company continued to encourage women to use those products.

Talcum powders are made of talc, a mineral comprised of bits of magnesium, silicon and oxygen that absorbs moisture. Some talc contains asbestos, a known carcinogen, in its natural form. While J&J is likely using in court information that commercial products sold in the US have been asbestos-free since the 1970s, some women used talc before the 1970s. Echeverria is 63 years old, and claims she used J&J products all her life. Feasibly, she used talc containing asbestos for more than a decade.

The case, which J&J said it plans to appeals, is Echeverria et al v. Johnson & Johnson, Los Angeles Superior Court, No. BC628228.

A bit water-logged over at Sony? Sony has agreed a preliminary settlement potentially ending a class action lawsuit alleging the company designed, manufactured, distributed, advertised and sold certain Mobile Devices that were alleged to be misrepresented as “waterproof.” The consumer fraud lawsuit asserts that the phones are, in fact, “not waterproof and are not designed for or capable of ordinary underwater use.”

The class action also claimed that “Sony exploited certain international water resistance ratings in order to launch a deceptive marketing campaign promoting the Devices.”

The Plaintiffs seek certification of a nationwide class of all persons who purchased the devices as well as Illinois and California subclasses, excluding certain persons and entities who/which, by way of example, purchased the devices for resale.

The proposed Sony settlement has received preliminary approval and would settle class claims in the United States of US customers only. The final Fairness Hearing is scheduled for December, 2017.

Those included in the class purchased, own(ed), received as a gift or received as a customer service exchange the Mobile Devices manufactured, marketed, sold and/or distributed by Sony Mobile Communications (USA), Inc. in any of the 50 States, the District of Columbia and Puerto Rico.

The settlement provides for: (1) a warranty extension; (2) changes to packaging, labeling and advertising; and (3) a claim process relating to prior water-related warranty claim rejections.

Eligible class members may submit claims for prior water-related warranty claim rejections by Sony for their in-warranty Mobile Devices. This is the only way to be reimbursed for 50% of the at-issue Manufacturer’s Suggested Retail Price (“MSRP”) for the applicable Mobile Device. 

Ok – That’s a wrap for this week. See you at the bar!

Week Adjourned: 10.28.16 – Farmers, VW, J&J Talc Powder

farmers-insTop Class Action Lawsuits

Getting Burned on Fire Damage Claims? Los Angeles resident, Ismael Frias, believes so. He filed a bad faith insurance class action lawsuit against a Farmers Insurance Co., unit alleging it illegally limited coverage of wildfire smoke damage by not providing adequate notice that it had changed its policies and stating that the damage was “not actual fire damage.”

Frias, who lives in the suburb of Sylmar, states in his Farmers lawsuit complaint that Mid-Century Insurance Co., applied a “Wildfire Smoke Sublimit” of $5,000 to his claim under his homeowner’s insurance policy, without clearly notifying him. Mid-Century allegedly added the sublimit to the policy when Frias renewed in March, but failed to clearly notify him of the change. Additionally, the suit states that the sublimit is in violation of California insurance law which standardizes fire damage policies.

“The purported $5,000.00 Wildfire Smoke Sublimit violates Insurance Code section 2071, is not reflected on the declarations Page, is not plain, clear and conspicuous, and is unenforceable,” the lawsuit states. According to the complaint, Frias claimed for damages he experienced as a result of a wildfire on July 23, 2016. On that date, the massive Sand Canyon Fire was raging through the mountains north of Sylmar. Ultimately, the fire scorched almost 65 square miles before fire crews were able to contain it in August, according to the National Wildfire Coordinating Group.

Frias received a letter from Mid-Century in September, stating the damage to his home wasn’t “actual fire damage” and thus was subject to the $5,000 sublimit, according to the lawsuit.

Frias is claiming breach of contract, breach of the implied covenant of good faith and fair dealing, and violation of California’s Unfair Competition Act.

The lawsuit seeks to establish a class of California homeowners who had policies containing the wildfire smoke sublimit and who had submitted claims for wildfire odor, soot, smoke, char or ash damage. He also seeks compensatory and punitive damages, along with attorney’s fees, according to the complaint.

“As a result of defendants’ conduct, plaintiff and members of the class and subclass have been damaged, including but not limited to, paying insurance premiums for coverage rendered illusory by the unlawful Wildfire Smoke Sublimit,” the complaint states.

Top Settlements

It’s VW Pay Up Time. It’s been a week of whoppers. Starting with a rather speedy settlement on the consumer end of the Volkswagen emissions scandal. Short version, a $14.75 billion settlement between consumers, the federal government and Volkswagen has been granted final approval. The deal includes an aggressive timeline for VW to begin buying back cars that have the infamous emissions cheating software, known as “defeat devices”.

Under the terms of the deal, VW will set aside $10 million to buy back its vehicles with the defeat devices from consumers.

Additionally, VW must spend $2.7 billion to mitigate the effects of the emissions from cars equipped the so-called defeat devices, and $2 billion over the next 10 years in projects that support the increased use of zero emission vehicles.

Starting in mid-November, Some 475,000 owners of affected VW and Audi 2.0L diesel vehicles will be able to seek buybacks of their cars or have them fixed. Additionally, most plaintiffs who bought their cars before last September, will receive payments of $5,100 to $10,000. About 336,000 car owners have registered for benefits under the settlement and only 3,300 have opted out, according to court papers signed by the judge.

Of note, 3.0 liter six-cylinder diesel vehicles equipped with the defeat devices are not included in this settlement. VW said it is still working toward a resolution with owners of those vehicles.

The multidistrict litigation is In re: Volkswagen “Clean Diesel” Marketing, Sales Practices and Products Liability Litigation, case number 3:15-md-02672, in the U.S. District Court for the Northern District of California.

Big Talc Powder Settlement. A $70 million award has been granted court approval for a woman in California who sued Johnson & Johnson (J&J) alleging J&J Talc Powder caused her cancer. The suit alleged “negligent conduct” in making and marketing its baby powder.

The case was brought by Deborah Giannecchini of Modesto, California, who was diagnosed with ovarian cancer in 2012. She is one of nearly 2,000 women who have filed similar lawsuits, and thousands more are under review by lawyers.

Giannecchini’s win follows earlier awards against J&J for $72 million and $55 million. The $72 million award was granted in February to relatives of a woman who died of ovarian cancer, and the $55 million award to an ovarian cancer survivor.

Talc is a mineral often used to absorb moisture in cosmetic products. Since the 1970s, studies have suggested that talc could be linked to ovarian cancer, according to the lawsuit. Lawyers argued that Johnson & Johnson knew of those studies but put profits ahead of human life by continuing to market their talc products for feminine hygiene use.

Well, that’s a wrap for this week. See you at the Bar!

Week Adjourned: 6.3.16 – Baby Powder, Uber, Ticketmaster

Baby PowderTop Class Action Lawsuits

More Talc Powder Lawsuits…We’ve been seeing a lot about the Johnson & Johnson (J&J) talcum powder ovarian cancer lawsuits here in the US, but a class action lawsuit has now been filed in Canada against J&J alleging its Baby Powder product causes ovarian cancer.

The named plaintiffs in the Canadian J&J talc complaint all developed ovarian cancer following long-term use of J&J’s Baby Powder for feminine hygiene purposes. The representative plaintiffs in this case include, Marilyne Bernier who is the daughter of Thérèse Bernier, who died in March of this year following her battle with ovarian cancer, and Shaeda Farooqi of Mississauga.

According to the complaint, scientific researchers have established that over time, applying talcum powder to genitals, underwear, and sanitary napkins increases the risk of developing ovarian cancer by 33%. However, despite the evidence of a direct link, J&J has not acknowledged the connection and has kept its product on the shelves without warning.

The lawsuit aims to bring access to justice to the many women who have developed ovarian cancer due to long term use of Baby Powder and to modify behaviour of companies that place known carcinogens into the stream of the Canadian commerce without warning.

FYI—estimates suggest there are over 1,000 talc-powder induced ovarian cancer lawsuits pending in the US against J&J.

Uber Needs to Check the Definition of Stop? Wow—Uber just cannot stay out of trouble, it seems. It found itself on the end of another proposed class action recently, this one alleging violations of the Telephone Consumer Protection Act (TCPA).  The allegations? Uber sent text messages through an auto-dialer to people even after they had opted out of the messages by texting back “Stop”.

Filed by an Uber driver applicant, the lawsuit alleges the plaintiff provided his telephone number during the application process, which he did not complete. However, Uber then purportedly began sending him text messages asking him if he required help finishing his application.

According to the Uber lawsuit, the plaintiff replied to Uber, stating “stop” on numerous occasions because Uber’s automated system responded to these “stop” requests with a confirmation text stating “SMS from Uber is now disabled. To re-enable, reply START.”

Further, the lawsuit asserts after the plaintiff deleted his Uber rider account, Uber sent him another text message confirming he had deleted his account.

Top Settlements

Heads Up Ticketmaster Account Holders: The more than 10-year long consumer fraud class action lawsuit filed against Ticketmaster, Schlesinger v. Ticketmaster, has reached a $400 million settlement, which involves providing ticket vouchers as restitution to Class members —oh what a surprise.

Here’s the skinny: On or around June 18, 2016, class members should receive at least one Ticket Code by email redeemable for two tickets for General Admission seating at designated concert events at Live Nation owned or operated venues, subject to availability and limitations.

The Class includes all consumers who (1) purchased tickets on Ticketmaster’s website (“Website”) from October 21, 1999 through February 27, 2013; (2) paid money to Ticketmaster for an OPF that was not fully refunded; (3) did not and do not opt out of the Class; and (4) were residents of one of the fifty United States at the time of their purchase, including persons who placed, and then cancelled, a ticket order without obtaining a full refund of the OPF. If you also purchased UPS delivery for your tickets, then you are also a member of the “UPS Subclass.”

Certain people are excluded from the Class. They are (a) Ticketmaster, (b) any entities in which Ticketmaster has a controlling interest or which have a controlling interest in Ticketmaster, (c) the officers, directors, employees, affiliates, and attorneys of Ticketmaster, or (d) any employee or officer of the Court or their immediate family members.

For more information on the settlement and a list of guidelines regarding using your Ticket Code(s), please visit the official Settlement Website.

It would seem that Ticketmaster has mastered the class action settlement.  

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

Week Adjourned: 2.26.16 – Walmart, Mercedes, J&J Talc Powder

Walmart Parmesan CheeseTop Class Action Lawsuits

Pulp Reality at Walmart? If this is true, it has to be some kind of new low—even for Walmart. The discount retail behemoth got hit with a proposed consumer fraud class action this week, over claims its in-house brand of allegedly pure grated parmesan cheese contains a significant amount of fillers such as wood pulp. OMG.

So, in the spirit of, well, less is more—let’s cut through the filler and get to the allegations. Filed by Marc Moschetta of Dutchess County, New York, the Walmart parmesan cheese complaint states that the labels on Walmart’s Great Value brand grated parmesan cheese contains 100 percent parmesan cheese, and is false. The cheese is sold at Walmart stores across the US.

Are you sitting down? According to the suit, independent lab testing on the cheese product has shown it contains “significant quantities of adulterants and fillers” and between 7 percent to 10 percent of the cheese is made of cellulose, a filler and anti-clumping agent derived from wood pulp.

“Defendant makes only one marketing representation on the label: the product is ‘100%’ grated parmesan cheese [and] consumers, including plaintiff, reasonably rely on the label and believe defendant’s statement that the product consists of ‘100%’ parmesan cheese,” court documents state. “Because the product does in fact contain fillers and substitutes, the ‘100%’ parmesan claim is literally false and is also misleading to consumers.”

Moschetta stated that Walmart’s sale of the grated cheese was executed through deceptive marketing, labeling and advertising and the retailer has violated New York business laws, various consumer protection laws in a majority of the contiguous US, breached an implied warranty and benefited from unjust enrichment.

The complaint is seeking certification of both a nationwide class and a New York subclass of consumers and that Walmart be ordered to pay unspecified treble damages and punitive damages.

The case is Moschetta v. Wal-Mart Stores, Inc., number 7:16-cv-01377, in the U.S. District Court for the Southern District of New York. 

O Lord, won’t you Give me a Clean Diesel Car? Mercedes, seemingly the only automotive maker not be sued for defective airbags, ignition switches and/or uncontrolled acceleration—to name but a few issues among the litany of defective automotive class actions currently winding their way through the courts, found itself on the end of a consumer fraud class action lawsuit this week.

What for, you ask? Allegations the company knowingly programs its Clean Diesel vehicles to emit illegally high levels of nitrogen oxide. Specifically, the Mercedes emissions lawsuit claims that like Volkswagen defeat devices certain Mercedes models contain a device that causes the vehicles to violate US emissions standards when run at cooler temperatures, making them less environmentally friendly than advertised.

The lawsuit was filed by a Mercedes owner in Illinois, who claims the automaker uses the device in its BlueTec cars to turn off a system meant to reduce nitrogen oxide in its exhaust. The law firm representing the plaintiff said in a statement that on-road testing had shown Mercedes’s Clean Diesel cars produced average on-road NOx emissions that were 19 times above the U.S. standard, with some instantaneous readings as high as 65 times more than the US limit.

According to the complaint, the device in Mercedes’s diesel models turns off pollution controls at temperatures below 50 degrees Fahrenheit (10 Celsius), allowing the autos to violate emissions standards.

Further, according to a study done by independent testing agency TNO for the Dutch Ministry of Infrastructure and the Environment, in real-world testing, the Mercedes C-Class 220 emits more nitrogen oxide than measured in laboratory results.

“Mercedes never disclosed to consumers that Mercedes diesels with BlueTEC engines may be ‘clean’ diesels when it is warm, but are ‘dirty’ diesels when it is not,” according to the complaint. “Mercedes never disclosed that, when the temperature drops below 50 degrees, it prioritizes engine power and profits over people.”

The lawsuit also contends that even if Mercedes is able to make the cars compliant with emissions standards, those who drive them will suffer harm because the vehicles won’t perform as promised or advertised.

The plaintiff is seeking to represent a nationwide class of includes all US-based residents and entities that bought or leased an affected vehicle as of this month, and a court order compelling Mercedes to recall the affected models or replace them for free, in addition to unspecified damages.

Among the enumerated models are Mercedes’s ML320 and 350 sport utility vehicles, its E- and S-Class cars, and GLE crossovers.

The lawsuit is Lynevych v. Mercedes-Benz USA, U.S. District Court, District of New Jersey. 

Top Settlements

Pyrrhic Victory for Talc Powder Ovarian Cancer Victim. Here’s a stunner—in more ways than one—and it’s just the beginning for J&J. This week saw $75 million in damages awarded against the company in a lawsuit suit alleging the talcum powder Jacqueline Fox used caused her to develop ovarian cancer.

Fox claimed that for over 35 years she had used baby powder made by J&J and another talc product for feminine hygiene until she was diagnosed with ovarian cancer. She passed away at the age of 62, on October 6, 2015.

Her case was heard by a jury in St. Louis, Missouri, and is just one of more than 60 cases consolidated into a single suit alleging cancer caused by talcum powder.

During the trial, Fox’s attorney presented a document which revealed J&J knew their talcum powder was causing cancer. The letter, dated from 1997, was by a former J&J consultant and it warned the responses by the company to findings from no less than nine scientific studies could result in the talc industry being compared to the cigarette industry.

While the jury found 10-2 against J&J on claims of failure to warn, negligence and conspiracy, it did not find talc manufacturer Imerys Talc America Inc, another defendant, liable.

Another woman is scheduled to go to trial on April 11, 2016. Attorneys for Fox said that J&J is currently facing hundreds of lawsuits over talcum powder use.

Lawsuits have been filed against some talc companies alleging talc powder contains asbestos and consumers were not adequately warned about the risk of asbestos in talc powder. Although home talcum products are supposed to be asbestos-free, there are concerns some talcum products still contain asbestos. Furthermore, it can take decades for exposure to asbestos products to result in mesothelioma and other illnesses, meaning people who were exposed in the 1970s may still be diagnosed with asbestos-related illnesses. 

Ok…So, that’s a wrap folks… Cocktails are in order—see you at the Bar!

 

 

Week Adjourned: 5.2.14 – Baby Powder, Aveda, Apple, Google, Intel, Adobe

The week’s top class action lawsuits and settlements. Top stories include Baby Powder cancer risk, Aveda interns, and the tech worker salary collusion settlement

Johnson Baby PowderTop Class Action Lawsuits

Talc Troubles? It’s one thing to file a consumer fraud class action lawsuit alleging mislabelling infractions regarding “all natural” and “ no preservatives”—for example, but a consumer fraud class action filed this week against Johnson & Johnson alleging its classic baby powder products are associated with a significant increase in the risk of ovarian cancer, well that’s just a whole different level of muckery. Why do I continue to be surprised by these things…

According to the baby powder lawsuit, filed by plaintiff Mona Estrada (Mona Estrada v. Johnson & Johnson et al., case number 2:14-cv-01051, in the U.S. District Court for the Eastern District of California) studies have shown a 33% increased risk for ovarian cancer associated with talcum powder among women who use it on their genitals. Yet the only warnings on the product labels tell users to keep the powder away from their eyes, avoid inhalation and to use externally. Estrada, who has used the product since 1950, claims she expected Johnson’s Baby Powder, made of scented talc, to be safe. Further, the lawsuit claims J&J has failed to disclose the information regarding ovarian cancer risk on its product labels.
“As a result of the defendants’ misrepresentations and omissions, plaintiff and the proposed class have purchased a product which is potentially lethal,” the complaint states. Estrada alleges she would not have purchased the powder had she been aware of the risk. You think? Thankfully, Estrada is not claiming any personal injury.

Estrada further alleges she has bought J&J’s powder since 1950 and believed all this time that the product was safe to use on any external part of her body, and that J&J encouraged women to use the product daily.

“Although the label has changed over time, the message is the same: that the product is safe for use on women as well as babies,” the lawsuit states. The lawsuit also states that J&J has known of studies showing that women who used talcum powder on their genital area had a higher risk of ovarian cancer, since at least 1982. Further, the author of a 1982 study was contacted by a J&J doctor who was told the company it should add a warning label to the bottle.

The talc lawsuit goes on to state that the American Cancer Society (ACS) allegedly said that a 2008 study, linking higher usage of talcum powder to increased risk of cancer, showed the powder “probably” increased the risk for cancer. The ACS compared talcum powder to asbestos, postmenopausal hormone therapy and radiation. Oh great.

The lawsuit claims J&J violated the California Consumer Legal Remedies Act and Unfair Competition Law, negligently misrepresented its powder and breached its implied warranty. This is going to be interesting. 

Beauty Blunder? Aveda Corp, and its parent company, Estee Lauder Inc, and are facing an employment lawsuit filed by a former beauty school student who alleges the beauty companies treat their trainees as unpaid employees in violation of state and federal labor law. There must be some law of physics that works something like—the larger the company the less they pay—or try to pay…

Filed by lead plaintiff Jazlyn Jennings, the lawsuit claims that Aveda uses students at its California cosmetology schools as unpaid workers, requiring them to provide full hair and beauty services to paying clients, while at the same time claiming to provide educational experience to those trainees. Yes—it’s an educational experience alright—just not the kind the students signed up for.

The nitty gritty—“The California defendants led plaintiff and others…to believe that they were paying tuition to learn the skills necessary to succeed in the glamorous profession of beauty and cosmetology. Instead, they converted students into student employees to profit from their free labor.”

According to Jennings, she trained at the Aveda Institute Los Angeles from April 2011 to June 2012, where she provided haircuts, makeup removal, manicures and other services to customers without being compensated for her labor.

Jennings alleges that the institute’s staff did not properly supervise students who shelled out “thousands or tens of thousands” to participate in its yearlong training program, providing just four supervisors for the 40 students working on the salon floor, in violation of state regulations.

In addition to the Aveda institute in Los Angeles, Jennings also names its San Francisco-based school, the Cinta Aveda Institute Inc., and its Southeast institute operator, Beauty Basics Inc., as co-defendants in the employment lawsuit. “[Defendants] could have hired employees who they would have had to have paid at least minimum wage but instead chose to displace such employees with the free labor they demanded of their student employees,” the lawsuit states.

Additionally, according to the allegations, students were compelled to sell Aveda products to the public, effectively transforming students into “non-commissioned salespeople.” And the litany of bad deeds goes on to include handing over of tips and insufficient or completely absent supervision—if that’s not a contradiction in terms… but you get the picture.

So—bottom line—by failing to pay its “student employees,” the complaint claims that Aveda violated the minimum wage requirements of both California labor law and the federal Fair Labor Standards Act (FLSA). Additionally, Jennings claims Aveda failed to pay overtime, did not provide proper meal and rest breaks, did not provide accurate wage statements and engaged in unfair business practices.

Heads up—Jennings is seeking to represent a class of individuals who provided beauty services or sold products to paying customers in the named Aveda institutes from April 22, 2010, to the present. The class may also include student employees who cleaned or provided support services to Aveda’s beauty institutes in California. 

Top Settlements

This settlement almost slipped under the radar this week—surprising given that the named defendants are Apple Inc, Google Inc, Intel Inc and Adobe Systems Inc. The tech worker settlement is, not surprisingly, pre-trial in the amount of $324 million—and it’s meant to end an antitrust class action lawsuit brought by by Silicon Valley tech engineers.

The lawsuit was filed in 2011, alleging that the four tech giants conspired to hold down salaries in Silicon Valley. You may remember some finger pointing at Steve Jobs over this one. In any event, the class action, filed in 2011 by Silicon Valley engineers, alleged that Apple Inc, Google Inc, Intel Inc and Adobe Systems conspired to refrain from soliciting one another’s employees in order to avert a salary war.

The trial, which will not be going ahead, surprise,surprise—was scheduled to begin at the end of May on behalf of roughly 64,000 workers who were seeking $3 billion in damages. Whoa Nelly—now that would have had an impact.
Ok—Folks—we’re done here—have a great weekend and we’ll see you at the bar!