News & Analysis as of

Tenth Circuit Affirms Dismissal of Securities Class Action for Failing to Plead Scienter Under the PSLRA

The US Court of Appeals for the Tenth Circuit recently affirmed the dismissal of a class action by investors in Gold Resource Corp. (GRC) alleging that the company and four of its officers violated Section 10(b) of the...more

Eighth Circuit Reverses Class Certification of FDCPA Suit Against Debt Collector And Its In-House Attorneys

In Powers v. Credit Mgmt. Servs., Inc., No. 13-2831 (8th Cir. Jan. 13, 2015), the United States Court of Appeals for the Eighth Circuit reversed the District of Nebraska’s order granting class certification of an action...more

Client Alert: Hotel Service Charges Don't Always End Up in Employee's Tip Jar

In Audio Visual Services Group, Inc. v. Superior Court (Juan Solares), Los Angeles Superior Court Case No. B256266, Filed January 21, 2015, the Court of Appeal held that the Hotel Service Charge Reform Ordinance ("Ordinance")...more

Third Circuit: Strict Ascertainability Optional for Rule 23(B)(2) Class

Although not explicitly set forth in Rule 23, an essential prerequisite of any action under Rule 23 is that there must be an identifiable “class” at the moment of certification. The shorthand term commonly used to refer to...more

Cy Pres Distributions in Class Action Settlements Addressed By Eighth Circuit

Over the last several years, federal courts of appeals have been closely scrutinizing cy pres distributions to charitable organizations in class action settlements. This includes opinions by the First Circuit, Third Circuit...more

Eighth Circuit Sets Standard For Cy Pres Distributions

On January 8, 2015, the Eighth Circuit Court of Appeals established a five-factor test governing cy pres distributions in class action lawsuits. In Re: BankAmerica Corp. Sec. Litig., No. 13-2620 (8th Cir. Jan. 8, 2015). ...more

Insurance Recovery Law -- January 2015

Insured v. Insured Exclusion Ambiguous When Applied to FDIC, 11th Circuit Rules - Why it matters: In the continuing split among courts considering insured v. insured exclusions, the Eleventh U.S. Circuit Court...more

California Supreme Court Rules On-Duty Guards Entitled to Pay for On-Call and Sleep Time

On January 8, 2015, the California Supreme Court issued a decision holding that the on-call hours for security guards who work 24-hour shifts constituted compensable hours worked. Further, the court ruled that the guards’...more

California Court of Appeals Allows On-Call Rest Breaks

In a striking move, the California Court of Appeals issued an unpublished opinion wherein it held that California law does not require employers to relieve employees of all duty during rest breaks....more

Ninth Circuit Holds that Under Nevada Law, a Prior Stockholder’s Litigation of Demand Futility Precludes Another Stockholder From...

In Arduini v. Hart, 2014 WL 7156764 (9th Cir. Dec. 17, 2014), the United States Court of Appeals for the Ninth Circuit considered whether the doctrine of issue preclusion prevents a stockholder from relitigating a prior...more

The Neiman Marcus Group LLC Urges Seventh Circuit To Deny Appeal

Neiman Marcus Group LLC (“Neiman Marcus”) filed its response to plaintiffs’ appeal of the Illinois federal district court’s decision dismissing plaintiffs’ purported class action claims. Plaintiffs alleged that Neiman Marcus...more

NLRB Again Attempts to Invalidate Mandatory Arbitration Clauses for Employment Claims

In its Murphy Oil decision, the National Labor Relations Board affirmed its 2012 holding in D. R. Horton, which found an employer violates the NLRA when it requires employees “as condition of their employment, to sign an...more

Class Action Not Mooted by Unaccepted Rule 68 Offers of Judgment to Putative Class Representatives, 11th Circuit Holds

The U.S. Court of Appeals for the 11th Circuit recently held that a class action was not mooted by the unaccepted offers of judgment made by the defendant to each putative class representative in the full amount of his or her...more

Seventh Circuit Rejects Another Settlement With Disproportionate Attorney Fees Compared to Class Member Benefits

The Seventh Circuit Court of Appeals rejected a class action settlement because class counsel would have received generous attorney fees for conferring only meager benefits to the class. Writing for the Court, just as he did...more

Another Blow to Call Recording Class Actions

Back in February, the California Court of Appeal in Hataishi v. First American Home Buyers Protection Corp., 223 Cal. App. 4th 1454 (Feb. 21, 2014), dealt a significant blow to call recording class actions across California. ...more

November 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against...more

Joe’s Crab Shack Managers Move Forward with Class Action Wage and Hour Misclassification Suit Despite Plaintiffs’ Inability to...

Last week, the California Court of Appeal for the Second Appellate District reversed a trial court’s class certification denial in a proposed overtime class action brought by Joe’s Crab Shack managers against the restaurant...more

Business Litigation Report -- November 2014

In This Issue: - Main Article: ..Foreign Investor Protection v. National Sovereignty: The Pros and Cons of Investor-State Arbitration - Noted With Interest: ..Gelboim et al. v. Bank of America Corp. et...more

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the...more

Ohio’s Sixth District Reverses Order Granting Class Certification

In Gordon v. Erie Islands Resort & Marina, 6th Dist. No. OT-13-040, 2014-Ohio-4970, the Court of Appeals for the Sixth District of Ohio reversed an order granting class certification on the grounds that the trial court failed...more

Removing All Doubt: The First Circuit Clarifies the Conditions Triggering the 30-Day Removal Window When the Earlier, Initial...

In Romulus v. CVS Pharmacy, Inc., No. 14-1937, 2014 U.S. App. LEXIS 20548 (1st Cir. Oct. 24, 2014), the First Circuit Court of Appeals clarified the conditions triggering a defendant’s 30-day window to remove a case to...more

Missouri’s General Rule Of One Corporation Not Being Liable For Another’s Conduct Is Reaffirmed

In Blanks v. Fluor Corp., ____ S.W.3d ____ (Mo. App. E.D. 2014) WL 4589815, September 16, 2014), the Missouri Court of Appeals reversed a jury verdict against Fluor Corporation, because it was improperly based on the conduct...more

First Circuit Adopts Bright-Line Rule On CAFA Removal Trigger And Broadly Defines Other Paper

The First Circuit Court of Appeals recently held that the thirty-day time period for removal under CAFA is triggered when the plaintiffs’ complaint or plaintiffs’ subsequent other papers provide defendants with sufficient...more

The First Circuit Clarifies That A Defendant’s Deadline to Remove is Principally Influenced by the Actions of the Plaintiff

The first questions any defendant served with a complaint filed in state court should consider are whether removal of the action to federal court is preferable and, assuming the action is removable, when must a notice of...more

Suing the State: Class Action or "Mass Action"

Wisconsin’s court of appeals recently clarified the extent to which class-action lawsuits may be brought against Wisconsin governmental entities in Townsend v. Neenah Joint School District, No. 13AP2839 (Oct. 22, 2014)....more

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