The Supreme Court has agreed to hear a landmark case regarding Section 11 liability for companies going public on the New York Stock Exchange through direct listings. In 2018, the New York Stock Exchange introduced a new rule, later approved by the SEC, that allowed companies to go public using a “Selling Shareholder Direct Floor Listing,” or a direct listing. Direct listing permits a company to go public for the first time just by filing a registration statement to allow existing shareholders to sell their shares on the exchange. Under the previous method, an initial public […]
In 2021, two plaintiffs filed separate class-action lawsuits against Coinbase, one of the largest cryptocurrency exchanges in the U.S. Coinbase moved to compel arbitration in each case because both plaintiffs signed Coinbase’s User Agreement directing any dispute to arbitration. The United States District Court for Northern California denied arbitration in both cases. Coinbase appealed the denial of arbitration and moved to stay the underlying class actions. The District Court again denied Coinbase’s motion and allowed both the arbitration appeal and the class action litigation to proceed concurrently.
The Ninth Circuit affirmed the District Court in both cases. […]
In May 2020, Plaintiff Keller J. Mellowitz, a student at Ball State University in Muncie, Indiana, filed a class-action complaint against the University for breach of contract and unjust enrichment. The student contended that the university failed to reimburse students for on-campus college activities interrupted by the COVID-19 pandemic during the Spring of 2020. The class action seeks to recover the cost of in-person tuition and other fees for a proposed class of approximately twenty-thousand affected students.
Initially, the suit was derailed because of a 2021 Indiana law retroactively prohibiting class-action lawsuits against state universities over COVID-19 […]
On September 12, 2022, Plaintiff and California resident Phillip White, brought a class lawsuit on behalf of himself and other similarly situated plaintiffs against Defendant T.W. Garner Food Company in the United States District Court of Central District of California. The Complaint asserts that although T.W. Garner brands its hot sauce products under its Texas Pete brand name, there is “surprisingly nothing Texas about them.” Plaintiff alleges that unknown to consumers, Texas Pete’s hot sauces are standard Louisiana-style, made with ingredients sourced outside the state of Texas, at a factory in North Carolina. Even though the […]
Recipients of Telemarketing Calls Made on Behalf of DirecTV Granted Class Certification in Class Action Lawsuit
On August 1, 2022, the United States District Court for the Northern District of West Virginia granted class certification to a group of about 114,000 individuals who, despite being on the national Do-Not-Call Registry, received at least two robocalls placed on behalf of DirecTV. The court concluded that this was “a model case for the application of the class action mechanism.”
In 1991, Congress enacted the Telephone Consumer Protection Act (“TCPA”), which, among other things, created a Do-Not-Call Registry that prohibited the initiation of telephone solicitations to residential telephone numbers listed on the registry. The TCPA provides […]
On June 28, 2022, the United States District Court for the Northern District of California certified four separate plaintiff classes in the nationwide JUUL electronic cigarette litigation. Certification of a plaintiff class is necessary for a class action lawsuit to proceed. The lawsuit alleges teen injury, fraud, and RICO violations against JUUL Labs and others, for the allegedly addictive and harmful effects of JUUL’s products.
In opposition to class certification, the JUUL Defendants argued that the proposed class lacked “commonality” because each potential plaintiff made an individual decision to purchase products containing nicotine or other addictive ingredients. […]
On May 23, 2022, the Supreme Court ruled, in a decision that will potentially have wide ranging impact on the arbitration of potential class action disputes, that a party’s right to try to send a case to arbitration after first litigating does not depend on whether the delay prejudiced the other party. As a result, workers seeking to keep their cases out of arbitration no longer need to show prejudice when fighting a delayed arbitration bid. They only need to show that the employer waived its right to arbitration by engaging in conduct inconsistent with the […]
On March 31, 2022, the United States District Court for the Southern District of New York ruled that Kellogg’s labeling for its Frosted Strawberry Pop-Tarts is not materially misleading and dismissed a putative class action against the breakfast giant.
To summarize, Plaintiff Kelvin Brown filed a class lawsuit against Kellogg Sales Co. on behalf of the putative class consisting of himself and “all purchasers of [Frosted Strawberry Pop-Tarts] who reside in New York during the applicable statute of limitations.” In the Class Action Complaint, Plaintiff alleged that Kellogg participated in deceptive business practices and false advertising by […]
State Farm Policy Holders Granted Class Certification for Second Time in COVID-19 Insurance Recovery Class Action
On February 11, 2022, the United States District Court for the Eastern District of Virginia granted class certification for a second time to a statewide class of Virginia businesses in a potentially precedent setting COVID-19 insurance recovery class action. The class includes at least 111 Virginia businesses who submitted insurance claims for pandemic-related losses to their insurer, State Farm—and whose claims State Farm denied under its policy’s virus exclusion. The court’s ruling comes months after a Fourth Circuit panel reversed the trial court’s ruling and remanded the case, ruling that the trial court improperly granted class […]
On Tuesday, February 1, 2022, former Miami Dolphins head coach Brian Flores filed a class-action lawsuit against the NFL and multiple NFL teams, including the New York Giants, the Denver Broncos, and the Miami Dolphins, alleging racial discrimination in the hiring process of African American coaches and general managers. Although not directly relevant to his race discrimination claims, Flores also alleged that Dolphins owner Stephen Ross offered to pay him $100,000.00 per loss for each loss during the 2019 season. Flores’ lawsuit comes just weeks after the Dolphins controversially fired him, despite back-to-back winning seasons as […]
Georgetown University, along with 15 other private universities, are now defendants in an antitrust lawsuit recently filed in Illinois federal court regarding their financial aid calculations. The plaintiffs are five former students who attended some of the defendant universities and allege they engaged in price fixing and unfairly limited financial aid by utilizing a shared calculation method for applicants’ financial needs.
The defendants are private, national universities that are members of an organization titled the “568 Presidents Group.” The group’s name is derived from a section of federal law permitting collaboration among universities on financial aid formulas […]
2021 was a busy year in class actions. State and federal courts across the country grappled with thousands of different class action lawsuits ranging from consumer protection, to employment discrimination, to COVID-19-related cases.
Within this influx of class action lawsuits, there were key developments in class action law that affected these lawsuits in 2021 and may continue to have an impact in years to come. This article addresses just a handful of these developments.
I. Article III Standing in Class Action Lawsuits
On June 25, 2021, the Supreme Court issued what may be a landmark decision in TransUnion v. […]