Galaxy on Fire. Well folks, you knew it was coming…take Note (bad pun)… Samsung, not surprisingly, got hit with a defective products class action lawsuit this week, alleging its Galaxy Note 7 smartphone is prone to catching on fire and exploding. No kidding…
Specifically, the Samsung Galaxy lawsuit alleges that as a result of the defect, Samsung customers had to wait days or weeks for a replacement phone. In the meantime, they’re charged monthly fees by carriers for phones they can’t use.
The three plaintiffs from New Jersey who filed the suit allege users should be compensated for the money they paid for devices and plan charges to cellular operators while the South Korean phone maker took its time replacing and finally discontinuing the Note7’s.
The complaint alleges that many Note7 users were unable to use their devices due to the possibility they could overheat and burst into flames. When consumers who tried to exchange their phones during the initial recall period, they were often unable to because of limited stock.
Consequently, some customers were told that they would have to wait weeks until a replacement phone was available. “It was not until September 21 that Samsung announced that it would begin the Note7 exchanges nationwide. And even on that date, only an estimated 500,000 replacement devices had arrived in the United States,” the complaint states.
Further, the complaint alleges that users incurred monthly device and plan fees during that same period from their phone carriers.
The case is re: Waudby vs Samsung Electronics America, U.S. district court, district of New Jersey, Newark, No . 16-cv-07334-CCC-JBC.
Bed, Bath & Beyond has gone Beyond, according to the details of an unpaid overtime class action lawsuit filed by former department and assistant managers. They claim the retailer is in violation of the Fair Labor Standards Act (FLSA).
The allegations in the Bed, Bath & Beyond overtime lawsuit are that BB&B improperly denied the plaintiffs overtime by not meeting the FLSA requirements for a “fluctuating work week” model, which are that employees’ hours to change from week to week, they have a fixed salary that meets minimum wage requirements, and a 50 percent overtime premium for hours worked in excess of 50 hours. According to the lawsuit, the Bed Bath & Beyond department managers had relatively stable schedules and did not meet the fluctuating work week model.
“Upon information and belief, plaintiffs’ weekly work hours as [department managers] did not meaningfully fluctuate, their scheduled work hours and the actually hours they worked, including the numbers of overtime hours, were largely consistent from week to week,” according to the lawsuit. “Because the [department managers’] weekly work hours were substantially the same from week to week, defendant [unlawfully] applied the FWW model to avoid paying the [department managers] their overtime compensation under the regular 1.5 overtime premium.”
The plaintiffs also assert that assistant managers were unlawfully classified as exempt employees who did not receive any overtime pay, that the company violated labor laws by failing to provide a wage notice at the time of hire outlining terms and conditions, and that employees didn’t properly receive pay stub information.
“Consistent with defendant’s policy and pattern or practice, plaintiffs regularly worked in excess of 40 hours per workweek without being paid at premium overtime rate 1.5 times of their respective regular rate of compensation for the hours they worked in excess of 40 per workweek,” the complaint states.
The plaintiffs are claiming violations of the FLSA and state labor laws, and seek unpaid overtime wages, liquidated damages, prejudgment and post-judgment interest and attorneys’ fees. The complaint seeks to create a collective action for FLSA overtime compensation violations, consisting of those who are or were department managers or assistant managers from October 2013 through the present. Additionally, the lawsuit seeks to create a class of all non-exempt Bed Bath & Beyond employees within the past six years for failure to pay overtime and failure to provide proper wage notice at the time of hiring.
The case is Thomas et al. v. Bed Bath and Beyond Inc., case number 1:16-cv-08160, in the U.S. District Court for the Southern District of New York.
Poached Dreams? If this doesn’t prove it pays to stand up for yourself, what does? A $50 million settlement has been agreed in an antitrust anti-employee poaching class action lawsuit pending against Dreamworks Animation. The lawsuit, filed in 2014, alleged that the animation company perpetuated a “no poach” gentleman’s agreement with other studios over the hiring of animators. Gentlemen’s agreement?
According to a statement by a group of animators and visual effects employees who worked for the studios, “The Proposed Settlement Agreement was the product of a thorough assessment of the strengths and weaknesses of plaintiffs’ case.” And, “It reflects nearly two years of discovery, uncovering the intricacies of a multi-faceted conspiracy.”
The group has asked the court to grant preliminary approval of the Dreamworks settlement, calling it fair and reasonable. They stated that the money represented about 40 percent of the damages sustained by class members, who were previous employees of Dreamworks, as a result of the scheme.
The lawsuit targeted some major studios including The Walt Disney Co., Pixar Inc., DreamWorks Animation SKG Inc., Lucasfilm Ltd. and ImageMovers Digital LLC.
The allegations of colluding to stop poaching and driving up pay rates, resulted from a U.S. Department of Justice probe into the hiring practices of Silicon Valley businesses. Earlier this year, the animators, while pushing for class certification in their case, told the court that the studios’ collusion dates back several years and suppressed their pay by as much as 30 percent in some years.
The case is In re: Animation Workers Antitrust Litigation, case number 5:14-cv-04062, in the U.S. District Court for the Northern District of California.
Well, that’s a wrap for this week. See you at the Bar!
Stewing Over Pay at Stewart’s…It seems we just can’t get enough of the old employment class action lawsuit. This one, filed against Stewart’s Shops has been certified in New York. The complaint states that the Malta-based convenience store chain failed to properly compensate its employees for all the hours worked. There are so many instances of labor law violations, I wonder, does anyone actually get paid properly anymore?
The Stewart’s Shops lawsuit was filed by a former employee against the chain in January 2014, alleging she and other workers were not paid for all the hours they worked, and for mandatory call-in pay for store meetings and that they were deprived of an uninterrupted meal break.
The plaintiffs are seeking $20 million in damages on behalf of all non-exempt hourly employees who worked for Stewarts during the past three years.
Reportedly, a collective action has been certified under federal law for full-time employees who worked more than forty hours in any given week and were deprived of overtime compensation.
FYI—the Malta-based convenience store chain has 335 stores in upstate New York and Vermont, and $1.5 billion in sales. No comment.
Power Home Power Calling You? You gotta love it when you actually stick it to a spammer. This week, court approval has been given to a $5.2 million settlement of a Telephone Consumer protection Act (TCPA) class action lawsuit pending against Power Home Remodeling Group LLC. The lawsuit claimed the company had violated the TCPA because it made automated marketing calls to over a million consumers without their consent.
The judge certified a class of more than 1.1 million people, and granted final approval of the Power Home Remodeling settlement, ending the lawsuit brought by plaintiff Teofilo Vasco. The autodialed telemarketing calls or prerecorded, computer-generated voice messages were made between October 2013 and April 2016, approximately.
The judge also awarded a $3,000 award to the named plaintiff, Vasco, who filed the lawsuit in August 2015. He alleged he gave his cellphone number to a Home Depot salesperson and later received 21 unsolicited phone calls from Power seeking his business by way of an autodialer or prerecorded voice message.
The case is Teofilo Vasco v. Power Home Remodeling Group LLC, case number 2:15-cv-04623, in the U.S. District Court for the Eastern District of Pennsylvania.
Nissan got hit this week, with a preliminary settlement deal reached in three defective automotive class action lawsuits. The first Nissan lawsuit, brought in 2014, alleged that the transmissions in certain model-year certain Pathfinder and Infiniti QX60 vehicles were defective. You may remember this one.
Under the terms of the proposed Nissan agreement, Nissan North America Inc. has agreed to give all owners and lessees of nearly 200,000 Nissan Pathfinders and Infiniti JX35s/QX60s vehicles from model years 2013 and 2014 a free, two-year 24,000-mile extended warranty for their transmissions. Also, owners will be instructed on how to update their vehicles’ software to include detection of the transmission vibration problem referred to as “judder.” Oh great, there’s computer technology involved.
According to the settlement, owners of affected vehicles that underwent two or more repairs to their transmissions may be eligible for discounts on future purchases of a Nissan or Infiniti vehicle. The deal requires court approval.
The case is Kenai Batista v. Nissan North America Inc., case number 1:14-cv-24728, in the U.S. District Court for the Southern District of Florida.
Well, that’s a wrap for this week. See you at the Bar!
Travel Insurance Woes…A consumer fraud complaint against American Airlines took off this week, alleging the airline markets travel insurance as a pass-through charge paid to a third party but doesn’t disclose its profits.
Filed by Kristian Zamber, the multi-million dollar complaint asserts American Airlines misled its customers about its interests in selling the insurance policies and that it aggressively marketed travel insurance sold through its website.
The American Airlines lawsuit is seeking class certification, a jury trial and injunctive and equitable relief for alleged unjust enrichment and violations of Florida’s consumer protection statutes prohibiting companies from posing as revenue conduits.
According to the complaint, Zamber paid roughly $24 to purchase travel insurance in April for a domestic flight from Tampa to Pennsylvania. American Airlines stated the policy had no affiliation with the airline, but instead came from Allianz Global Assistance, with plans underwritten by Jefferson Insurance Co. or BCS Insurance Co. But in reality, the policy sales contributed to a “hidden profit center” for the Fort Worth, Texas-based airline, the complaint states.
The complaint also claims the airline forces customers to choose whether or not to purchase trip insurance policies before allowing them to complete online ticket purchases. Yup—been to that destination….
Touch Disease has Spread North of the border. Apple is facing a defective products class action lawsuit in Canada over allegations that it’s iPhone 6 and 6 Plus models have a defect which effectively results in the smartphone freezing or not responding to touch commands.
Following on from a similar defective products lawsuit filed in the US, the Canadian lawsuit claims Apple was aware of the problem but failed to take action to remedy it.
Filed at the Court of Queen’s Bench for Saskatchewan, the Canadian iPhone complaint would include all Canadian iPhone 6 and 6 Plus customers. It alleges that Apple was negligent because it supplied a defective phone, “knowingly and intentionally concealed” from customers the defect and failed to provide a proper remedy.
According to attorneys who filed the Canadian complaint, Apple has so far only offered its customers around $300 as compensation.
Shortly after the product was launched in 2014, one of the plaintiffs in the class action alleges she bought the iPhone 6 for around $200, hundreds of dollars less than the regular price because she locked into a two-year phone plan contract. Then, a few months after the warranty had expired on her phone, it began to intermittently freeze up and failed to respond to touch commands.
The lawsuit alleges that that the underlying problem is the touchscreen controller chips in the phone’s motherboard, which are not properly secured and can malfunction with regular use.
Here’s a whopper—but then the size of the Volkswagen defeat device scandal is, likely, unprecedented. A $1.2 billion settlement has been reached between Volkswagen AG and 650 US VW franchise dealerships, ending litigation brought by the dealerships over the VW emissions scandal. Specifically, the dealerships alleged that the value of their businesses had decreased as a result of Volkswagen’s attempts to cheat on vehicle emissions tests through its so called “defeat devices.” According to documents filed Friday in California federal court, the deal will provide an average payout of $.185 million to each Volkswagen-branded franchise dealer in the US.
Additionally, the VW settlement provides for VW buying back from its franchisees, affected vehicles that can’t be put into emissions compliance, using the same terms granted to car owners as part of the tentative consumer settlement.
“This recovery to the franchise dealer class is outstanding, particularly given the immediate need for cooperation among Volkswagen and its franchise dealers to effectuate the terms of the $10 billion-plus consumer class action settlement that is presently pending approval before this court,” the motion states. “Without any obvious deficiencies, the settlement agreement readily meets the standards for preliminary approval.”
Further, there will be no claims process, as dealerships that don’t opt out of the settlement will automatically receive a cash payment based on a formula of 71 times the monthly support payment VW made to dealers in November 2015. Take it or leave it? Almost.
The MDL is In re: Volkswagen “Clean Diesel” Marketing, Sales Practices and Products Liability Litigation, case number 3:15-md-02672, in the U.S. District Court for the Northern District of California.
Well, that’s a wrap for this week. See you at the Bar!
Ford Losing Its Touch? Ford Motor Co. got hit with a defective products class action lawsuit filed by customers who allege the automotive maker sold vehicles with faulty touchscreen systems. Great! The last thing you want to try and figure out while you’re driving…why the technology isn’t working as advertised.
The Ford class action lawsuit, which represents no less than nine classes, alleges the defect resulted in the failure of safety functions such as rear view cameras and functioning navigation systems.
U.S. District Judge Edward M. Chen has certified nine different classes of Ford owners, divided by state: California, Colorado, Massachusetts, New Jersey, North Carolina, Ohio, Texas, Virginia and Washington. Each class brings its own set of claims related to breach of warranty, unfair trade practices, fraudulent concealment and other various other allegations.
According to plaintiffs, the MyFord Touch infotainment touchscreen systems often crash or freeze while the vehicle is in motion. The systems were introduced into Ford vehicles in 2010 with the promise of touch screen operating of audio and navigation systems, the ability to make phone calls, manage climate systems and play music from their smartphones. However, the systems have encountered a lengthy list of problems. In 2010, according to the lawsuit, Ford reported roughly 400 problems for every 1000 vehicles, which was an improvement from earlier numbers. The systems add about $1,000 to the cost of a Ford vehicle, according to the plaintiffs.
The case is In re: MyFord Touch Consumer Litigation, case number 3:13-cv-03072, in the U.S. District Court for the Northern District of California.
New Meaning To ‘Loyalty’? LoyaltyOne is facing a consumer fraud class action in Canada, over “unfair and unilateral” changes to its airmiles program’s terms and conditions.
Here’s the skinny. According to the allegations, LoyaltyOne, which owns Airmiles—an airmiles rewards program—is accused of not giving adequate notice of the changes to its customers about the expiration of their airmiles, including miles earned before December 31, 2011 that expire at the end of this year. The AirMiles lawsuit also accuses LoyaltyOne of failure to give adequate notice that miles collected after that date will expire five years after they are earned. Got all that? Oh yes, the complaint also asserts that the company has made it difficult for miles to be redeemed before their expiration.
“The net result is that Air Miles’ conduct will result in a large number of the class members’ miles expiring, resulting in a significant loss to the class, and a corresponding large windfall for Air Miles,” the claim states.
According to the complaint, some 10 million Canadian households belong to the Air Miles program. The award miles are earned by shopping at participating retailers and are meant to be exchanged for flights and other rewards.
According to the claim, users wanting to redeem points before they expire have had problems doing so because of “unduly long” wait times on the phone. As well, it says the website displayed reward items users did not have enough miles to purchase, but not those that were within reach.
Need a vacation after reading all that!
Lifelock Locks Up $68 Million Settlement. The deal has received final approval, ending a consumer fraud class action lawsuit pending against it. The lawsuit alleged that LifeLock made false statements about its services and failed to follow through on promised that it would alert consumers of potential identify theft immediately.
Specifically, the class alleged that LifeLock would not pay any losses directly to the consumer and does not cover consequential or incidental damages to identity theft. It also alleged the guarantee is limited to fixing failures or defects in the LifeLock services and paying other professionals to attempt to restore losses. LifeLock illegally placed and renewed fraud alerts under consumers’ names with credit bureaus. However, under the federal Fair Credit Reporting Act, corporations such as LifeLock are not allowed to place fraud alerts on a consumers’ behalf, in fact, the law was written to specifically bar credit repair companies from improperly using fraud alerts.
In the LifeLock Settlement, U.S. District Judge Haywood Gilliam Jr. also approved attorneys’ fees of $10.2 million and a payment of $2,000 to each of four class representatives. Distribution of the remaining funds works out to $20 per class member, with members of a subclass receiving funds on a pro rata distribution of a cordoned off subclass fund. The class starts from September 2010 and the subclass period begins in January 2012.
In July, 2015 the FTC accused LifeLock of “failing to establish and maintain a comprehensive information security program to protect its users’ sensitive personal data, including credit card, social security, and bank account numbers [and of] falsely advertising that it protected consumers’ sensitive data with the same high-level safeguards as financial institutions.”
The case is Ebarle et al. v. LifeLock Inc., case number 3:15-cv-00258, in the U.S. District Court for the Northern District of California.
Well, that’s a wrap for this week. See you at the Bar!
Heads up—literally… for anyone who’s used SoftSheen-Carson Optimum Amla Legend No-Mix, No-Lye Relaxer. A defective products class action lawsuit has been filed by two women in the US against L’Oréal alleging the hair relaxer kits causes hair loss and scalp burns. Ouch!
While the advertising claims it helps Afro-Caribbean hair to feel fuller and silkier through the inclusion of amla oil from the Indian amla super fruit, the plaintiffs allege that thousands of women who bought and used the product have suffered distressing injuries including hair loss and breakage, and scalp irritation, blisters and burns.
According to the SoftSheen Relaxer complaint, despite not listing lye as an ingredient, the inclusion of lithium hydroxide can cause damaging effects like those experienced by the women who used the product. Further, it’s also not clear as to whether the product truly is a ‘no-lye’ relaxer as the retail lists sodium hydroxide in the products’ ingredients online.
Dorothy Riles, one of the key plaintiffs behind the lawsuit, claims that when she used the product she was left with bald patches, burns and scabs forcing her to wear a wig.
Another key plaintiff claims that when using the product she immediately experienced scalp irritation and, after washing it out, she saw “significant” hair loss.
The plaintiffs are demanding that L’Oréal is tried by jury and are seeking compensation on the grounds of false advertising, unfair competition, consumer fraud, deceptive business practices, breach of express warranty, breach of implied warranty of merchantability, unjust enrichment, fraud and negligence.
Shrinking Credibility at School? A $11.2 million settlement in a consumer fraud class action lawsuit pending against The Chicago School of Psychology has received final approval. The lawsuit was brought by students who alleged they were provided with misleading information regarding the school’s accreditation and their job prospects after completing their courses.
The Chicago School settlement will provide financial recovery for 87 students who are class members. The average payout will be $95,000 per student.
Plaintiff Miranda Joe Truitt and other students filed the complaint in November, 2012 claiming they invested in a worthless education. They wanted to study at the Chicago School of Professional Psychology and were encouraged to attend classes at the graduate university’s Los Angeles campus, which was falsely promoted to them as being prestigious and accredited by the American Psychological Association (APA).
According to the settlement documents, the plaintiffs were “either negligently lured” to enroll at the Los Angeles campus or were caused to stay “by a series of statements or omissions allegedly made, issued or approved by defendants.” In 2013, Tara Fischer filed a similar class action which was later consolidated with the Truitt’s complaint.
According to Truitt’s complaint, the administration of the Chicago School of Psychology led the Los Angeles campus students to believe that they would get APA approval before their graduation.
The case is Miranda Jo Truit et al v. The Chicago School of Professional Psychology, number BC495518, in the Superior Court of the State of California for the County of Los Angeles.
Domino’s Pizza drivers got a delivery this week …in the form of a $995,000 award in a wage and hour lawsuit in Georgia. The action was brought against Domino’s franchisees Cowabunga Inc. and Cowabunga Three LLC, by drivers who alleged the franchisees shorted their drivers on vehicle expenses, resulting in the drivers’ pay going below below minimum wage in violation of the Fair Labor Standards Act (FLSA).
The named plaintiff, Chadwick Hines, will receive a $7,500 service award. The final approval of the settlement ends the lawsuit filed against Cowabunga in 2015. Cowabunga, one of the largest singly owned Domino’s franchises in the U.S.
A total of 565 Cowabunga delivery drivers opted into to the case. The drivers will receive damages from the $995,000 settlement in exchange for waiving their wage and hour claims against Cowabunga. The average award per driver is $1,138.
Well, that’s a wrap for this week. See you at the Bar!