Supreme Court Clarifies Standing and Reliance Rules for 17200 Consumer Class Action Claims

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On May 18, 2009, a split California Supreme Court handed down its long awaited decision of In Re Tobacco II Cases (S147345), clarifying the effect of Proposition 64 on the unfair competition law (“UCL”) (Bus. & Prof. Code, § 17200 et seq.) in consumer class actions.

The California Supreme Court’s decision has two critical holdings for any company facing a UCL class action....

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