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Motions to strike class allegations: Ninth Circuit vacates order striking class allegations, ruling class discovery must go...

Takeaway: In a prior post, we reported on a Central District of California decision granting an early motion to strike class allegations. Don’t miss the chance to strike out class actions (Feb. 27, 2019). But on appeal,...more

SCOTUS declines review of Second Circuit ruling endorsing class arbitration

Takeaway: The concept of class arbitration has endured stiff headwinds. In Lamps Plus, Inc. v. Varella, 139 S. Ct. 1407 (2019), the Supreme Court ruled that a party cannot be required to participate in a class arbitration...more

Third Circuit weakens ascertainability requirement by lowering evidentiary bar

Takeaway: The Circuits have split on the issue of whether a class representative must show the class is “ascertainable.” The Third Circuit has required a Rule 23(b)(3) class to be “currently and readily ascertainable.” ...more

Internet terms and conditions Second Circuit declines to enforce arbitration agreement

Takeaway: We have recently written about the challenges involved in enforcing “browsewrap” contracts. See Internet terms of use: Ninth Circuit enforces arbitration agreement accessible through browsewrap hyperlink (August...more

Ninth Circuit: two pro-defendant decisions clarify burdens regarding CAFA’s $5 million jurisdictional threshold

Takeaway: Class defendants prefer federal court. In any putative class action filed in state court, the first issue to analyze is whether the case can be removed to federal court, and any such analysis typically involves...more

9/14/2020  /  CAFA , Class Action , Jurisdiction , Remand , Removal

Internet terms of use: Ninth Circuit enforces arbitration agreement accessible through browsewrap hyperlink

Takeaway: Technology advances. Business processes evolve. Internet transactions become increasingly ubiquitous. Contract formation, however, remains an old-fashioned concept. An Internet consumer must, at a minimum, be...more

Consumer class actions – Ninth Circuit holds that federal and not state law controls the award of equitable restitution under...

Takeaway: Federal courts sitting in diversity are supposed to apply state law. There is a critical distinction, however, between substantive rights created by state law, on the one hand, and remedies (especially equitable...more

Fraud class actions: Ninth Circuit vacates $24 million class judgment on standing and predominance grounds

Takeaway: Class actions present significant risk, because a certified class exposes a class defendant to class-wide liability. Most defendants agree to settle rather than face the risk of a class verdict. But sometimes a...more

RICO class actions: District of New Jersey dismisses with prejudice federal RICO claims asserted by indirect purchasers

Takeaway: Class actions brought under federal RICO present significant risk, because they present the opportunity for certification of a nationwide class under a federal statute and the remedies provided under federal RICO –...more

Sixth Circuit: incorporation of AAA Rules delegates “gateway” issue of arbitrability to the arbitrator

Takeaway: We have written a number of articles about class arbitration. See, e.g., Fifth Circuit: arbitrator’s decision to conduct class arbitration cannot be vacated (May 11, 2020). A key issue is whether the parties’...more

Ninth Circuit: Lost interest of under $4 sufficient to confer standing in consumer class action

Takeaway: When a company discovers it has been imposing improper charges, it might proactively seek to remedy the situation by refunding the charges. To avoid litigation, however, the company must consider including...more

Design defect class actions: split Ninth Circuit panel affirms exclusion of common defect expert testimony

Takeaway: Federal appellate courts review a district court’s rulings on motions for class certification and to exclude expert testimony for an abuse of discretion. The Ninth Circuit’s recent decision in Grodzitsky v....more

Big pharma antitrust class actions: Third Circuit gives primer on predominance in vacating class certification

Takeaway: Class action litigation tends to be complicated, especially for trial courts resolving motions for class certification. These motions usually require courts to pour through dense briefing and evidentiary...more

Fifth Circuit: arbitrator’s decision to conduct class arbitration cannot be vacated

Takeaway: A lot of ink has been spilled on the issue of class arbitration, but this much is clear: If a federal court decides the class arbitration issue, then the proponent of class arbitration should lose, unless the...more

Data breach class actions: Illinois federal court dismisses negligence claims for lack of common law duty and based on the...

Takeaway: In a data breach class action, the typical panoply of claims asserted include tort claims (such as negligence and negligence per se), contractual claims (such as claims for breach of express and implied contracts),...more

Second Circuit rejects personal jurisdiction over claims by out-of-state class plaintiffs and again quashes claim of “reasonable...

The issue of personal jurisdiction in class action litigation continues to be addressed by the federal appellate courts. We recently published an article about the Seventh Circuit’s decision in Mussat v. IQVIA, No. 19-1204,...more

Class action standing: Ninth Circuit holds members of a damages class must demonstrate Article III standing

Takeaway: The Ninth Circuit recently held “that each class member must have standing to recover damages.” Ramirez v. TransUnion, LLC, 951 F.3d 1008 (9th Cir. 2020). But the panel held this requirement only applies to the...more

False advertising class actions – “complete multivitamin” misrepresentation enough to state claims under New Jersey and Florida...

Takeaway: Where a plaintiff alleges that product labeling does not comply with pronouncements by the Food & Drug Administration (FDA), it can be difficult for a class defendant to obtain the dismissal of false advertising...more

E.D. Texas rules that fraudulent overcharge theory supplies standing for civil RICO class action

Takeaway: To have standing to sue in federal court, Article III of the Constitution requires an injury in fact caused by the challenged conduct. Federal RICO standing requires a bit more: a RICO plaintiff must demonstrate an...more

RICO class actions: D.N.J. rejects claim for private injunctive relief under Federal RICO

Takeaway: The issue of whether a federal RICO plaintiff may obtain equitable relief may be the longest-running circuit split under the federal RICO statute. In Scheidler v.National Organization for Women, 537 U.S. 393 (2003),...more

Ninth Circuit deepens circuit split in pharmaceutical industry-specific RICO proximate cause ruling

Takeaway: To have standing to assert a civil RICO claim, federal RICO’s proximate cause requirement demands that there be a “direct relation” between the RICO violation and injury. ...more

Second Circuit endorses class arbitration

Takeaway: The concept of class arbitration has recently faced stiff headwinds. In Lamps Plus, Inc. v. Varella, 139 S. Ct. 1407 (2019), the Supreme Court ruled that a party cannot be required to participate in a class...more

E.D.N.Y.: Class certification evidence must be admissible

Takeaway: In a prior post, we reported on the Ninth Circuit’s decision in Sali v. Corona Regional Medical Center, 889 F.3d 623 (9th Cir. 2018) that class certification evidence need not be admissible (Ninth Circuit deepens...more

D.C. Circuit denies class certification where putative antitrust class includes uninjured class members

In a prior post [First Circuit addresses an issue that continues to vex (and split) the circuits: should a class be certified that includes uninjured class members? (October 24, 2018)], we reported on a First Circuit...more

Class-wide damages model: Ninth Circuit cabins Comcast

Takeaway: In a prior post – Leveraging Comcast – beating predominance where challenged product has some value (April 16, 2019) – we reported on a decision by Judge Lucy Koh of the Northern District of California...more

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