Another year, another Apple Lawsuit. Yup. This week, iPhone users in Miami filed a consumer fraud class action lawsuit against Apple Inc, alleging the Cupertino-based tech giant greatly overstated the storage capacity of devices that run its latest mobile operating system, iOS 8.
Lead plaintiffs filed the complaint in U.S. District Court in Northern California claiming operating system itself requires a significant percentage of the storage capacity on the iPhones, iPads and iPods that run it, thereby making a large portion of the advertised space unavailable to device owners.
According to the lawsuit, in some cases, the space used is 23.1 percent. Further, the complaint alleges, Apple entices customers in need of more space to pay for extra storage on iCloud.
“Using these sharp business tactics, [Apple] gives less storage capacity than advertised, only to offer to sell that capacity in a desperate moment, e.g., when a consumer is trying to record or take photos at a child or grandchild’s recital, basketball game or wedding,” the lawsuit states. “To put this in context, each gigabyte of storage Apple shortchanges its customers amounts to approximately 400-500 high resolution photographs.”
The plaintiffs allege Apple is violating California laws prohibiting unfair competition and false advertising. They claim that reasonable consumers do not expect the “marked discrepancy” between the advertised level of storage capacity and the available level of capacity on Apple devices running the OS.
GM’s Record Year? GM must be facing some kind of record for the number of defective automotive class action lawsuits filed against it in 2014. The latest GM lawsuit, filed in December, alleges a defect in the steering system of its Chevrolet Volts which causes the steering wheel to freeze intermittently while driving. Yes—that could certainly cause a few problems.
Filed in New Jersey federal court, by plaintiffs Christopher Johnson and Tara Follari-Johnson, the GM lawsuit claims that GM knew, or should have known, about the alleged defect, but continued to sell the cars. The lawsuit further claims that the alleged defect poses a hazardous safety risk to drivers and that even when GM agrees to fix the steering system, it only replaces the allegedly defective steering rack with the same or similarly defective components.
“When class members present to GM’s authorized dealerships complaining of the steering defect, the dealerships recommend repairs such as replacing the steering rack or steering gear assembly,” the plaintiffs said. “However, these repairs only temporarily mask the problem.”
The lawsuit alleges GM is in violation of the New Jersey Consumer Fraud Act and the Magnuson-Moss Warranty Act, and in breach of implied warranty of merchantability and express warranty and common law fraud.
The plaintiffs propose to represent a nationwide class of owners and lessees of 2011-2014 Chevrolet Volt bought or leased new in New Jersey and a subclass of national class members who live in New Jersey. There are at least 100 members of the proposed class, according to the plaintiffs, and their claims are more than $5 million.
“Complaints that consumers filed with National Highway Traffic Safety Administration and posted in discussion forums demonstrate that the defect is widespread and dangerous and that it manifests without warning,” the complaint states. “The complaints further indicate defendants’ knowledge of the defect and its danger.”
Wells Fargo Agreed to Pony Up $14.5 million as part of a preliminary settlement agreement reached in a Telephone Consumer Protection Act (TCPA) class action lawsuit. The lawsuit was brought on behalf of millions of customers who alleged Wells Fargo Bank NA called them on their cellphones to collect credit card debt.
Brought by lead plaintiff Lillian Franklin, the Wells Fargo settlement motion, if approved, will resolve her suit claiming the bank violated the Telephone Consumer Protection Act by making automated calls to alleged debtors without their consent. She filed suit in August, claiming the financial institution called her multiple times on her cellphone in 2010, to collect an alleged debt on her credit card. The calls featured a pre-recorded message and were made without Franklin’s consent, according to the lawsuit.
According to the settlement terms, a settlement fund will be shared evenly between class members who submit claims. Currently, the class consists of 4 million members. The fund will established after consideration of attorneys’ fees and administration costs, according to the motion.
The case is Franklin v. Wells Fargo Bank NA, case number 3:14-cv-02349, in the U.S. District Court for the Southern District of California.
Hokee Dokee—That’s a wrap folks…Time to adjourn for the week. Happy New Year!
Heads up all you Designers and Creatives out there…Adobe Creative Suite billing may just be a little too creative. Adobe got his with a consumer fraud class action lawsuit this week alleging the software maker charges an illegal termination penalty for cloud subscription access to its blockbuster applications such as Photoshop and Illustrator.
Filed by Scotty Mahlum, in California Federal Court, the Adobe lawsuit alleges that Adobe’s early termination fee, which can add up to hundreds of dollars, violates California’s Unfair Competition Law and Consumers Legal Remedies Act. It sure seems to be a blatant cash grab—opinion here…
“[The fee] is designed to maintain recurring revenue by preventing subscribers from cancelling, rather than to compensate for any damages sustained by [Adobe],” Mahlum said. [If Adobe] “has suffered any damage upon early cancellation, the ETFs are not a reasonable measure or approximation of such damages.”
According to the complaint, a monthly subscription for access to Adobe’s complete cloud suite is $49.99 or $9.99 per month for access to individual programs. But if consumers end their contracts early, Adobe charges them 50 percent of the remaining value of the contract. “Because Adobe has no expenses after a subscriber downloads Creative Cloud Software to a computer, 50% of the remaining contract obligation is a windfall for Adobe,” the lawsuit states.
The Creative Cloud programs include Photoshop, Illustrator, InDesign, Premiere, After Effects, Audition, Dreamweaver and other programs.
The subscription contract is a take-it-or-leave-it proposition and gives consumers no opportunity for term negotiation, the Adobe lawsuit contends. Mahlum alleges Adobe phased out the option to buy copies of the software outright in the spring of 2013 and that he signed up for a complete plan in October but canceled it in March.
Mahlum seeks a permanent injunction against collection of the ETFs and wants the company to pay back all ETFs it has collected from the class, which he says should include all current or former subscribers in the U.S. who were charged the fee.
In a December earnings report, Adobe revealed it had ended the 2013 fiscal year with 1.4 million Creative Cloud paid subscriptions, an increase of 1.1 million over the course of the year. The lawsuit contends that Adobe’s revenue from the cloud model jumped from $160 million in the second quarter of 2012 to $255 million in the second quarter of 2013.
The case is Mahlum v. Adobe Systems Inc., case number 5:14-cv-02988, in the U.S. District Court for the Northern District of California.
It would appear there’s Nothing Fluid about this Crap… at least according to some very pissed off consumers who filed consumer fraud class-action lawsuit against Fluidmaster Inc., this week. The lawsuit claims that the plumbing product and toilet repair company knowingly sold defective toilet connectors that spontaneously broke, causing millions of dollars in property damage at homeowners’ expense. Nice!!!
The Fluidmaster complaint, filed April 24, 2014, in the US District Court for the Central District of California, states that Fluidmaster elected to sell faulty plastic toilet connectors even when it was mechanically and financially feasible for the company to sell an existing, safer alternative design. According to the lawsuit, more than a million defective toilet connectors were sold in the US. Ok—that’s a lot of folks. That’s a lot of damage.
Apparently, upon realizing that its plastic toilet connectors were routinely cracking, leaking and causing significant damage, Fluidmaster responded by lowering its 10-year warranty to five years, according to the lawsuit. The complaint’s two named plaintiffs experienced massive property damage after their Fluidmaster toilet connectors spontaneously failed. One of the plaintiffs, Brian Kirsch, received a call while on vacation from his garbage collector informing Kirsch that water was spilling from an upstairs window of his home and raining into his garage. Kirsch’s home had to be gutted and completely renovated while he and his family were displaced.
Due to the material and design of the toilet connector, the plastic was susceptible to bending with weight and pressure over time, according to the suit. The complaint also cites the company’s poor instructions and warnings that failed to provide the customer with sufficient information to safely and properly install the connectors.
After reducing the product’s warranty, Fluidmaster began to redesign the toilet connector in mid-2011, marketing and selling a new, reinforced connector. According to the complaint, the company never publicized that the product was redesigned and did not recall the defective products from its distribution networks. It also did not notify property owners that the defective products could spontaneously fail and should be replaced, keeping the defective products in use, according to the complaint. That’s just plain shitty (couldn’t resist!)
J. Crew to pony up for Illegal Zip Code Collection….Yup—a preliminary settlement has been approved in a zip code collection class action lawsuit pending against J. Crew Group Inc. The lawsuit alleged the retailer unlawfully collected customers’ ZIP codes during credit card purchases and used the information to send unsolicited marketing materials to those customers.
According to the terms of the J. Crew settlement, J Crew will provide $20 vouchers to eligible class and a $3,000 award to the class representative, lead plaintiff Lauren Miller, who alleged the company began sending her unsolicited junk mail after she made two credit card purchases in 2011 and 2012. Prior to providing her ZIP code during those transactions, she hadn’t received any promotional materials, according to the complaint.
Miller had urged the judge to approve the settlement earlier in the month, telling the judge that the settlement sufficiently covered the damages stemming from J. Crew’s allegedly improper ZIP code collection.
“The action seeks to redress J. Crew’s alleged unlawful invasion of its customers’ privacy and its alleged violation of the laws of the commonwealth of Massachusetts designed to protect consumers’ rights to be free from intrusive corporate data collection and marketing. The settlement substantially achieves this goal,” Miller said in a memorandum.
The settlement will put to bed claims of the proposed class of Massachusetts customers who used a credit card at the retailer’s stores after June 20, 2009, and whose ZIP code was subsequently recorded. J. Crew denies any wrongdoing.
The class action is Miller et al v J. Crew Group, case number 1:13-cv-11487, in the U.S. District Court for the District of Massachusetts.
Ok Folks—Happy Fourth of July—Have a wonderful weekend—and we’ll see you at the bar!
Is your air conditioning unit blowing a little defective hot air? Well, according to a class action lawsuit filed against Goodman Global, Inc., and certain affiliated companies, their central air conditioning units and heat pumps sold under the Goodman® and Amana® brands since 2007 are—defective that is. The bit that’s causing the alleged problems is the evaporator coil(s).
For those of us not intimately acquainted with the working innards of an air conditioning unit (most of us, I’m guessing) evaporator coils are generally located inside a consumer’s home and are essential to the proper functioning of any central air conditioning system or heat pump.
So–according to the lawsuit, Goodman and Amana central air conditioning and heat pump systems contain defective evaporator coils that improperly and prematurely leak refrigerant (a.k.a. Freon®). Oh that’s good. Not. The defect allegedly renders the systems inoperable because the cooling cycle will not work without refrigerant.
Although Goodman sells these units with a warranty, that warranty is limited in a way that provides insignificant protection to owners of the units. In particular, the Goodman warranty, by its terms, covers replacement parts, but not the labor costs associated with the replacement. According to the lawsuit, the result is that, when a defective evaporator coil fails, Goodman provides the owner with a replacement coil, but does not pay to have the old coil removed or the replacement coil installed. As alleged in the lawsuit, those labor costs typically run in the hundreds of dollars, and in some cases, thousands of dollars. Thus, in at least some instances, the owner is forced to spend as much or more to replace the defective evaporator coil as the cost to purchase a new Goodman unit.
The complaint also alleges that Goodman has known that its units sold since 2007 contained defective evaporator coils, but the company failed to inform consumers about the problem or issue a recall. Indeed, according to the lawsuit, Goodman continued to tout the quality of its air conditioning systems, claiming they were durable, dependable, and long lasting, even though it was aware that the defective evaporator coils would cause the units to fail prematurely and at rates far above the industry average.
The lead plaintiff in the case acquired his Goodman unit when he purchased his new house in September 2011. According to the lawsuit, in or about July 2013, after only one summer of use, the unit stopped cooling the plaintiff’s home. A service technician allegedly found that the unit was low on refrigerant and added four pounds of refrigerant, which immediately leaked out of the system. After observing this, the technician determined that the evaporator coil was leaking and needed to be replaced. According to the complaint, the service technician returned the old defective evaporator and replaced it with a new one, charging plaintiff approximately $650 for this service.
The civil action was filed on behalf of all consumers in North Carolina that purchased a central air conditioning unit or heat pump bearing the trade names Goodman® and Amana® from 2007 to the present.
GM—AGAIN! GM just cannot seem to get it right these days. No, this time it’s not the auto recalls…this week their loan re-financing subsidiary got hit with a class action lawsuit alleging violations of the Telephone Consumer Protection Act (TCPA).
Brought by Monique Perez of California, the GM lawsuit claims that beginning in late 2013, General Motors Financial Co. Inc. made “virtually daily incessant calls” to Perez’s cellphone regarding a debt allegedly owed by another person named “Melanie.”
Perez claims that by calling from an automatic telephone dialing system (ATDS), which can store or produce telephone numbers to be called using a random or sequential number generator, GM Financial violated the TCPA. Don’t you love technology?
According to the lawsuit, “Plaintiff has never provided any personal information, including her cellular telephone number, to defendant for any purpose. As such, neither defendant nor its agents were provided with prior express consent to place calls via its ATDS to plaintiff’s cellular telephone.”
The plaintiff alleges members of the class not only suffered privacy violations but also suffered cellular telephone charges or saw a reduction in cellular telephone time that had already been paid for.
Perez is seeking to represent a putative class, made up of all US residents who received any telephone call from the company to a cellphone through the use of an ATDS within the past four years. She is seeking $500 per negligent violation and $1,500 per knowing or willful violation of the TCPA for each class member.
So it was all corn after all… Kellogg’s, the maker of Kashi products, has agreed to a $5 million settlement, potentially ending a consumer fraud class action lawsuit that claimed Kashi’s labeling was misleading and fraudulent. Wait—don’t tell me—this stuff is so natural it makes Mother Nature look fraudulent—right?
Right. The Kashi lawsuit alleged that labeling on certain products used labels stating “All Natural” or “Nothing Artificial,” when in fact the products contain a variety of synthetic and artificial ingredients, such as pyridoxine hydrochloride, calcium pantothenate, hexane-processed soy ingredients, ascorbic acid, glycerin and sodium phosphate.
Under the terms of the settlement, Kellogg’s has also agreed to stop using the labels “All Natural” and “Nothing Artificial”. In a statement, Kellogg Co. said it stood by its advertising and labeling practices but that it would change its formulas or labels on Kashi products, nationally by the end of the year.
The settlement was filed May 2 in U.S. District Court in California and is subject to court approval.
Ok Folks—we’re done here—have a great weekend and we’ll see you at the bar!
Caremark to get healthy over vitamin E advertising claims? That’s right folks, the pharmacy chain is facing a consumer fraud class action lawsuit filed by a customer who alleges the labeling on the pharmacy chain’s vitamin E pills state that they have heart health benefits.
Filed by plaintiff Ronda Kauffman, on behalf a proposed nationwide class of consumers who purchased vitamin E pills from the major pharmacy chain, and subclasses for customers in Rhode Island and New York, the CVS/Caremark complaint alleges that the CVS labels are misleading to customers, making them think the vitamins could reduce the risk of heart disease.
“The overwhelming majority of scientific studies find no ‘heart health’ benefit to taking vitamin E supplements,” the lawsuit states. Hey – what about the placebo effect?
7,600 CVS pharmacies nationwide carried the vitamins, which retail for approximately $8 to $20 per bottle, the lawsuit states. Kaufman alleges she bought vitamin E tablets from a CVS store in New York after reading the label and lost money on the purchase, which she wouldn’t have made if not for the heart health claims.
The CVS lawsuit mentions several studies that allegedly show vitamin E provides no heart health benefits. Further, it cites data from the US Centers for Disease Control and Prevention which show heart disease to be the leading cause of death in the US.
“Defendants have preyed upon these legitimate health concerns by misrepresenting to consumers that its vitamin E products have a ‘heart health’ benefit when they do not,” the complaint states.
The lawsuit claims CVS has violated deceptive business practice laws in New York and Rhode Island.
So, it’s back to eating your veggies.
Do no evil? Isn’t that it? Well, Google Inc. is facing a proposed antitrust class action lawsuit alleging the company is trying to monopolize the search engine feature on Android smartphones and tablets in violation of state and federal antitrust laws.
The Google lawsuit, Feitelson et al v. Google Inc., case number 5:14-cv-02007, in the U.S. District Court for the Northern District of California, claims that Google engages is anticompetitive behavior by allowing Android device manufacturers to preload its popular applications, such as Youtube and Google Maps, only if the companies agree to make Google’s search application the default search engine on their devices. Is that evil—or convenient?
The lawsuit states: “By way of Google’s coercive and exclusionary practice with Android OS device manufacturers … Google restrains and quashes competition for default search engine status before it even can begin. Google’s practice is a pure power play designed to maintain and extend its monopoly in handheld general search.”
Further, the plaintiffs claim that Google’s alleged conduct results in consumers overpaying for certain Android phones and tablets, as the price for the devices may have been lowered if rivals had been given a chance to compete for default search engine status, potentially by paying manufacturers.
“Such payments … would lower the bottom-line cost associated with production of the covered devices, which in turn would lead to lower consumer prices for smartphones and tablets,” the lawsuit states.
The class action seeks to represent all U.S. purchasers of Android phones and tablets made by manufacturers who have entered into an alleged agreements with Google requiring its search engine to be the default search tool on their devices. The suit seeks an injunction on these alleged practices, as well as monetary damages.
Could this end up like Microsoft?
Can you sue for ugliness, too? Vibram’s set to fork over for false health claims about FiveFingers..Turns out reinventing the wheel may be costly afterall. Vibram, the maker of a glovelike running shoe that purported to have health benefits such as reducing foot injuries and strengthening foot muscles—has agreed to settle a consumer fraud class action lawsuit.
The FiveFingers lawsuit alleges the company’s health claims regarding its FiveFingers running shoes were false and misleading. Specifically, the lawsuit alleged that the claims were“deceptive” and stated “that FiveFingers may increase injury risk as compared to running in conventional running shoes, and even when compared to running barefoot.” The complaint also stated that the company misrepresented research on barefoot running, claiming “there are no well-designed scientific studies that support FiveFingers’ claims.”
Under the terms of the proposed settlement agreement, Vibram would pay $94 per pair of shoes bought. More than two dozen models of Vibram shoes will qualify for refund.
Further, Vibram has agreed to discontinue some aspects of its advertising and marketing campaigns and, in the absence of verifiable scientific evidence, will make no other statements about the health benefits of FiveFingers.
Medtronic, the maker of a spinal bone graft product called Infuse Bone Graft, has said it will pay $22 million to settle about 1,000 lawsuits stemming from claims of adverse health outcomes related to the product and claims that the manufacturer illegally promoted the Medtronic bone product for off-label uses. Medtronic is also reportedly preparing a further $140 million to settle an even larger number of anticipated claims.
Medtronic allegedly encouraged physicians to use its Infuse bone stimulator off-label in the cervical spine, which helped generate sales of more than $3 billion for the manufacturer. As of September of 2008, about 680,000 units of Infuse Bone Grafts had been used in the US, according to Medtronic. According to a report by the Senate committee investigating the product, the company’s undisclosed manipulation of information through the medical literature included overstating its benefits and downplaying concerns about serious complications. According to MedPage Today, during the past 15 years, Medtronic has paid $210 million in royalties and other payments to a group of 13 doctors and two corporations linked to doctors. Many of the lawsuits claim that it was by paying spinal surgeons the company was able to promote the off-label use of Infuse.
According to a press release Medtronic issued Tuesday, the $22 million will resolve the claims of some 950 people. A further 750 cases brought by 1,200 people are pending across the use, and there could be another 2,600 claims yet to be brought.
Ok—Folks—we’re done here—have a great weekend and we’ll see you at the bar!
Toyota rejoins the automotive class action lawsuit alumni this week—with the filing of a new consumer fraud class action alleging it concealed information regarding oil consumption in the engines of some of its most popular models. The lawsuit claims that the engines in certain Toyota vehicles were prone to rapidly burning through oil just as they approached warranty expiration, causing owners thousands of dollars in repair costs. Now that’s convenient.
Filed in California federal court, the complaint alleges the defect can cause safety risk that can lead to catastrophic engine failure. The lawsuit claims the models affected include the Toyota Camry, Corolla, Matrix and RAV4.
According to the complaint, Toyota Motor Corp. was aware of the defect, and it notified authorized dealers of the problem in 2011, however, Toyota refused to pay to fix the vehicles when contacted by the plaintiffs. Really?
“Plaintiffs … bring this claim since the oil consumption defect typically manifests shortly outside of the warranty period for the class vehicles—and given defendants’ knowledge of this concealed, safety-related design defect—Toyota’s attempt to limit the warranty with respect to the oil consumption defect is unconscionable here,” the complaint states. The lawsuit states that the plaintiffs’ vehicles exhausted their oil supply in 3,440 to 4,300 miles ??” well before an oil change would typically be performed at 5,000 miles under Toyota’s recommended maintenance schedule. And, according to the lawsuit, once the plaintiffs contacted Toyota, it refused to repair the vehicles under the warranty, claiming it had either expired or failed to cover the defect.
Toyota was made aware of the problem after receiving information from dealers and records from the National Highway Traffic Safety Administration. The company also knew the nature and extent of the problem from its internal record keeping and durability testing, and from warranty and post-warranty claims, the complaint alleges.
The claims, which seeks unspecified damages, were brought under various state consumer protection and business law statutes, on behalf of consumers in California, Florida, Washington, New York and New Jersey. Additionally, the lawsuit claims violations of express warranty, fraud, and breach of the duty of good faith and fair dealing.
The vehicles cited in the complaint are the 2007 to 2011 Toyota Camry HV, 2007 to 2009 Toyota Camry, 2009 Toyota Corolla, 2009 Toyota Matrix, 2006 to 2008 Toyota RAV4, 2007 to 2008 Toyota Solara, 2007 to 2009 Scion tC, and 2008 to 2009 Scion xB. The defect is found on 2AZ-FE engines.
Bicycles—that’s the answer… oh dear.
Walgreens may soon be dispensing settlement checks…the pharmacy chain reached a proposed $29 million settlement this week, which involves nine California wage and hour class action lawsuits, consolidated in federal court in California. The lawsuits had all alleged that Walgreens failed to provide its employees with adequate breaks, and pay them overtime for mandatory security checks.
Additionally, the wage and hour lawsuits claimed Walgreens failed to provide duty-free meal and/or rest periods, failed to pay all wages owed at termination, failed to reimburse employees for business expenses, failed to provide itemized wage statements.
The Walgreens settlement covers Walgreens nonexempt employees who worked at a California Walgreens store from May 13, 2007, including pharmacists and regular retail store employees.
A hearing will be held May 12, 2014, to determine whether to grant preliminary approval to the Walgreens unpaid overtime class action settlement.
Walgreens agreed to the settlement as a quick means for a resolution, despite its ongoing dispute of the claims. What – so it costs less to pay your employees than go to court? And the learning here would be?
Although the settlement was agreed in principal in August 2013, it has taken several months to finalize the details, consequently a preliminary settlement hearing will be held May 12, 2014. Here’s hoping…
Trader Joe’s trading a lawsuit for settlement? Heads up all you Trader Joe’s shoppers out there—a potential settlement is in the works regarding the consumer fraud class action lawsuit pending against Trader Joe’s. The class action claims certain food products carried and sold at the food retailers’ outlets are labeled as being “All natural”, when they contained synthetic ingredients. Yup. Heard that one before.
The lawsuit goes…certain Trader Joe’s food products were improperly labeled, marketed, supplied, and sold as “All Natural” and/or “100% Natural” even though they contained one or more of the following allegedly synthetic ingredients: ascorbic acid, cocoa processed with alkali, sodium acid pyrophosphate, xanthan gum, and vegetable mono- and diglycerides. The products at issue are: Trader Joe’s Chocolate Vanilla Creme Cookies; Trader Joe’s Chocolate Sandwich Creme Cookies; Trader Joe’s Jumbo Cinnamon Rolls; Trader Joe’s Buttermilk Biscuits; Trader Giotto’s 100% Natural Fat Free Ricotta Cheese; and Trader Joe’s Fresh Pressed Apple Juice.
The proposed Settlement Class (i.e., “Settlement Class Member”) covers a class of plaintiffs who purchased, on or after October 24, 2007 through February 6, 2014, the following Trader Joe’s food products: Trader Joe’s Chocolate Vanilla Creme Cookies; Trader Joe’s Chocolate Sandwich Creme Cookies; Trader Joe’s Jumbo Cinnamon Rolls; Trader Joe’s Buttermilk Biscuits; Trader Giotto’s 100% Natural Fat Free Ricotta Cheese; and Trader Joe’s Fresh Pressed Apple Juice (“Products”).
Trader Joe’s, being the latest in a long line of companies facing similar if not the same allegations, denies it did anything wrong or unlawful, of course. They claim, instead that the Products’ labels were truthful, not misleading, and consistent with the law.
For the complete skinny on the Trader Joe’s class action settlement and to download forms, visit: https://tjallnaturalclassaction.com/
Ok Folks, That’s all for this week. See you at the bar!