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Food Litigation Newsletter - July 2014

In This Issue: - Decisions ..Ninth Circuit Affirms Lodestar Attorneys’ Fees ..Court Dismisses for Lack of Standing But Applies Pom Wonderful to Avoid Primary Jurisdiction ..Court Finds Pre-Answer...more

No Revival Of Class Claims For Plaintiff Who Delayed Amending His Complaint In Bad Faith

An Illinois federal district court has ruled that a class plaintiff whose motion for class certification was denied may not avoid that outcome by amending his complaint to introduce a new legal theory and revised class...more

An Emboldened FTC: What Does It Mean for a Company’s Cybersecurity Team?

In April, Edith Ramirez, Chairwoman of the FTC, and Julie Brill, FTC Commissioner, tweeted: “Pleased the court recognized @FTC’s authority to hold biz accountable for safeguarding consumer data & look forward to trying this...more

CFPB, State AGs Weigh In On TILA Rescission

This week, the CFPB and 25 states filed amicus briefs in Jesinoski v. Countrywide Home Loans, Inc., No. 13-684, a case pending before the U.S. Supreme Court that may resolve a circuit split over whether a borrower seeking to...more

California Court of Appeal Rules Damages Are Unavailable To Plaintiff Patients Where Patient Information On Stolen Computer Was...

Until last week, Sutter Health was looking at a potential jury verdict in excess of $4 billion against several of its affiliated hospitals in a class action suit filed under the California Medical Information Act, California...more

Appellate Court Rules Medical Information Must Actually Have Been Viewed by an Unauthorized Person for a Plaintiff to Recover...

The California Court of Appeal recently held that in order to recover under California’s Confidentiality of Medical Information Act (CMIA), Civ. Code §§ 56 et seq., a plaintiff must plead and prove that the “stolen medical...more

Federal district court grants CFPB petition to enforce CIDs issued to tribal lenders

A California federal court recently issued an order granting the CFPB’s petition to enforce its civil investigative demands (CIDs) issued to three tribally-affiliated payday lenders. However, the court also granted the...more

Third Circuit Ascertainability Rulings Continue to Imperil Low-End Consumer Class Actions

It’s a pattern repeated in millions of households every day: you go to the grocery or the drug store, buy the items you need, and don’t bother to keep the receipt. You may throw the receipt away immediately, you may throw...more

California Court Dismisses Data Breach Class Action

Last week, the California Third District Court of Appeal dismissed what may have been the largest health data breach class action in history. Consistent with a trend of similar dismissals, the California state appellate court...more

California Appellate Court Requires Actual Viewing of Confidential Information in Data Breach Case Under the California Medical...

In a case against Sutter Health involving records from a stolen office computer, the California Court of Appeal recently issued a decision limiting plaintiffs’ ability to state a claim and obtain statutory damages under the...more

Sixth Circuit Affirms Class Certification in TCPA Case

The Sixth Circuit Court of Appeals affirmed class certification in a case brought under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227 et seq. Pennsylvania-based distributor Lake City Industrial Products...more

Update on Google Unauthorized Children’s In-App Purchase Class Action: THE SHOW MUST GO ON!

U.S. District Court Judge Ronald M. Whyte has issued an order granting in part and denying in part Google’s Motion to Dismiss the class action filed against the Company on ­March 7 in the U.S. District Court for the Northern...more

Defendants Granted Limitations-Based Summary Judgment In Captive Reinsurance Class Action

A putative class of mortgage consumers sued Flagstar Bank and its captive reinsurer alleging that they engaged in an illegal “kickback” scheme with private mortgage insurers, which scheme artificially inflated the price of...more

Ninth Circuit Defines Vicarious Liability Standard Under the TCPA

The US Court of Appeals for the Ninth Circuit recently affirmed a US District Court for the Central District of California decision dismissing a Telephone Consumer Protection Act (TCPA) claim. The Ninth Circuit agreed with...more

Delaware Adopts Law Requiring the Destruction of Consumers’ Personally Identifiable Information

On July 1, 2014, Delaware Governor Jack Markell signed into law Delaware House Bill 295, which amends Section 6 of the Delaware Code relating to trade and commerce. The new law, 6 Delaware Code §§50C-101 thru 50C-401, places...more

Third Circuit Holds Debtors Need Not Dispute Debt Before Filing Suit Under FDCPA

In McLaughlin v. Phelan Hallinan & Schmeig, LLP, the United States Court of Appeals for the Third Circuit recently held that debtors are not required to notify a debt collector in writing regarding a disputed debt as a...more

SawStop Dismissal Explained: Opinion Crosscutting SawStop’s Antitrust Lawsuit Released

Judge Claude M. Hilton of the Eastern District of Virginia recently issued a Memorandum Opinion following up on his June 27, 2014 order dismissing the complaint filed against the power tool industry by SawStop, LLC....more

Update on state AG/regulator lawsuits using Dodd-Frank authority

We have been following four lawsuits brought by state Attorneys General and a state regulator using their Dodd-Frank enforcement authority. Under Dodd-Frank Section 1042, a state AG or regulator is authorized to bring a civil...more

Labeling Laws for the Food and Beverage Industry – Unfair Competition and Mislabeled Products

In a recent unanimous U.S. Supreme Court ruling, the court opened the door for private parties, including competitors, to bring false advertising and misrepresentation claims under the Lanham Act even if the product labels...more

Zombie (Debt Collector) Beware: West Virginia Expands Prohibited Actions

America’s fascination with zombies infiltrated the West Virginia Legislature during the 2014 Regular Session, resulting in the introduction of a “zombie debt” bill, House Bill 4360. The bill, as introduced, was designed to...more

Third Circuit Holds that Consumers are Not Required to Seek Validation of a Debt before Filing Suit under the FDCPA

On June 26, 2014, in McLaughlin v. Phelan Hallinan & Schmieg, LLP, the Third Circuit held that a consumer is not required to seek validation of a debt he believes is inaccurately described in a debt collection communication...more

California Supreme Court Considers Component Parts Doctrine

Last week, the California Supreme Court granted review of Ramos v. Brenntag Specialties, Inc. to resolve a split in the Second Appellate District regarding the application of California’s component parts doctrine. The...more

Advertising Law - July 2014 #2

Ninth Circuit Finds No TCPA Vicarious Liability for Taco Bell for Texts Sent By Franchisee - On July 2, 2014, the Ninth Circuit issued an unpublished decision in Thomas v. Taco Bell Corp. that is certain to give heart...more

Disputing Debts under the FDCPA – The Effect of the Fourth Circuit’s Opinion in Clark v. Absolute Collection Service, Inc.

In January of this year, the United States Court of Appeals for the Fourth Circuit (“Fourth Circuit”) decided the case of Clark v. Absolute Collection Service, Inc. (741 F.3d 487, 4th Cir. 2014). The question of first...more

The High Costs and Consequences of a CFPB CID

Dodd-Frank gives the Consumer Financial Protection Bureau (CFPB) the power to enforce and implement federal consumer financial protection laws, including home mortgage and other consumer credit regulations, plus powerful...more

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