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Posts published in “Class Actions”

Clas Actions

2nd Cir. Rules Successful Offer of Judgment Mooted TCPA Putative Class Action

The U.S. Court of Appeals for the Second Circuit recently held in a non-precedential opinion that a consumer, in the circumstances of this case, did not have standing to bring putative class action claims after entry of judgment in his favor on his individual claims pursuant to the defendants’ offer of judgment under Rule 68 of the Federal Rules of Civil Procedure. A copy of the opinion in Bank v. Alliance Health Networks, LLC is available at:  Link to Opinion. A consumer filed an individual and putative class action alleging that several companies violated the federal Telephone Consumer Protection Act…

CD Calif. Holds Non-Bank Not ‘True Lender’ on Allegedly Usurious Loans Extended in Name of Bank

The U.S. District Court of the Central District of California recently dismissed a borrower's putative class action complaint against a non-bank that supposedly was the "true lender" for allegedly usurious student loans that were extended in the name of a bank.

6th Cir. Reverses Dismissal of Data Breach Consolidated Class Actions

In an unpublished ruling, the U.S. Court of Appeals for the Sixth Circuit recently reversed the dismissal of consolidated class actions arising from a data breach, holding that the plaintiffs had Article III standing to pursue certain tort claims and that the district court had erred in dismissing a federal Fair Credit Reporting Act claim for lack of subject matter jurisdiction. A copy of the opinion in Galaria v. Nationwide Mutual Insurance Company is available at:  Link to Opinion. The plaintiffs brought class actions against an insurance company alleging violations of the FCRA and common law tort claims for invasion of…

3rd Cir. Holds No TCPA Coverage Under Businessowners Insurance Policy

The U.S. Court of Appeals for the Third Circuit recently held that a businessowners insurance policy did not cover a class action judgment that arose out of unsolicited advertisement communications in violation of the federal Telephone Consumer Protection Act. A copy of the opinion in Auto-Owners Insurance Company v. Stevens & Ricci Inc. is available at:  Link to Opinion. A business was solicited by an advertiser who claimed to have a fax advertising program that complied with the TCPA, 47 U.S.C. § 227. The business allowed the advertiser to fax thousands of advertisements to potential customers on its behalf. Six years later, a…

3rd Cir. Upholds Denial of Class Cert. on ‘Ascertainable Loss,’ Causation Deficiencies

The U.S. Court of Appeals for the Third Circuit recently affirmed a denial of class certification, holding that the plaintiffs’ theory was insufficiently supported by class-wide evidence to demonstrate the fact of damages whether on the issues of “ascertainable loss” or “causal relationship,” and failed to establish that common questions would predominate over individual questions. A copy of the opinion in Harnish v. Widener Univ. Sch. of Law is available at:  Link to Opinion. A group of former law students filed a class action against their law school, alleging that the school violated the New Jersey Consumer Fraud Act (NJCFA) and…

Minn. District Court Holds Even Complete Tender Does Not Moot Individual or Putative Class Claims

Interpreting the Supreme Court of the United States’s ruling in Campbell-Ewald Co. v. Gomez, the U.S. District Court for the District of Minnesota recently held that a defendant cannot moot a putative class action against it, even by tendering the full amount claimed to the named plaintiff and before a motion for class certification is filed. A copy of the opinion in Ung v. Universal Acceptance Corporation is available at:  Link to Opinion. Beginning in June 2014, an auto finance company allegedly repeatedly called the plaintiff’s cell phone in an attempt to reach an individual who allegedly listed the plaintiff as a…

3rd Cir. Rejects Attempt to Distinguish Campbell-Ewald, Holds Rule 68 Offer of Judgment Did Not Moot Claims

The U.S. Court of Appeals for the Third Circuit recently upheld a trial court’s ruling that an unaccepted offer of judgment under Fed. R. Civ. Pro. Rule 68, made before a plaintiff files a motion for class certification, does not make the case moot. The copy of the opinion in Weitzner v. Sanofi Pasteur, Inc. is available at:  Link to Opinion. The named plaintiff filed a putative class action against the defendants for alleged violation of the federal Telephone Consumer Protection Act (TCPA). The plaintiff alleged that the defendants transmitted more than 10,000 facsimiles to the plaintiff and other members of…

CFPB’s Proposed Arbitration Rule Designed to Protect Consumer Financial Services Class Actions

The Consumer Financial Protection Bureau has released a proposal to prohibit creditors from using arbitration clauses to block class action litigation. The Bureau’s proposed ban is not surprising. However, it will only impact arbitration agreements concerning covered consumer financial products or services entered into after its effective date. Arbitration Clauses and Class Action Waivers Arbitration is an effective means for consumers to vindicate their claims in an informal setting. Through the informal setting of arbitration, consumers are not restricted by court rules of evidence and procedure that could otherwise limit or even prevent the assertion of particular claims or the use…

6th Cir. Reverses Dismissal of Class Action That Overlapped With Earlier-Filed Class Action

The U.S. Court of Appeals for the Sixth Circuit recently reversed a district court’s dismissal of a putative class action lawsuit, holding that while the district court was correct that the first-to-file rule applied because of a previous class action involving substantially the same parties and claims, it was an abuse of discretion to dismiss the present case given the jurisdictional and procedural hurdles the plaintiffs would face if forced to become part of the earlier class action filed in another federal judicial district. A copy of the opinion in Baatz v. Columbia Gas Transmission, LLC is available at:  Link to Opinion.…

9th Cir. Affirms Denial of Class Cert. in TCPA Action on Ascertainability, Predominance Grounds

The U.S. Court of Appeals for the Ninth Circuit recently affirmed a district court’s order denying class certification in a lawsuit alleging violation of the federal Telephone Consumer Protection Act (TCPA), holding that the “district court did not abuse its discretion by finding the requirements of Rule 23(b)(3) unsatisfied,” and that the “district court appropriately determined that it would be extremely difficult to ascertain the identities of the individuals who had not consented to receive the messages.” A copy of the Ninth Circuit’s opinion in Gannon v. Network Telephone Services, Inc. is available at:  Link to Opinion.  A copy of the…

Credit Bureau Settles FCRA Class Action Alleging Reporting Errors

A credit reporting agency has settled a long-pending class action lawsuit in the U.S. District Court for the Eastern District of Virginia, agreeing to pay more than $3 million and remove from its consumer credit reports judgments entered in Virginia General District Court. The Fair Credit Reporting Act (FCRA) class action, Soutter v. Equifax Information Services LLC, was given the green light in April, with U.S. District Judge Robert E. Payne agreeing the standards for class certification had been met. In the class claim, plaintiff Donna K. Soutter contended Equifax willfully violated the FCRA when it failed to take reasonable…