CALIFORNIA CLASS ACTION LAW

Tag: Law

Second District Reverses Denial of Nationwide UCL and FAL Class

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The Second District Court of Appeal, in an unpublished opinion, reversed a trial court’s denial of plaintiff’s motion to certify a nationwide class in Schlesinger v. Superior Court of Los Angeles County (Ticketmaster), B224880, 2010 WL 3398844 (Cal. Ct. App. 2d Dist. Aug. 31, 2010).   Read the rest of this entry »

Granular Fee Opinion From Southern District, Reducing Hourly Rates from $250-400 to $225-295, and Reducing Fee for Low Success

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District Judge Larry Alan Burns, in Gold v. NCO Financial Systems, Inc., No. 09cv1646-LAB (CAB), 2010 WL 3339498 (S.D. Cal. Aug. 23, 2010) (slip op.) considered a fee motion after defendant’s Fed. R. Civ. P. 68 offer of judgment was accepted.  The court, in a quite granular opinion, reduced the requested  hourly rates of $250-400 to $225-295.  The court also reduced time for block billing, intra-office communication, and unnecessary work.  Id. **3-4.  Comparing the fees to the $3,000 judgment achieved for plaintiff, the court reduced the fee award by 1/3 to $6,207.43.  The court reduced the costs from a requested $2,406.51 to $71.

By CHARLES H. JUNG

Southern District Remands California Securities Law Class Action, Declining to Combine 2 Similar Cases for Purposes of CAFA Jurisdiction

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In Royalty Alliance, Inc. v. Tarsadia Hotel, et al., Nos. 09CV2739 DMS (CAB), 10CV1231 DMS (CAB), 2010 WL 3339202 (S.D. Cal. Aug. 23, 2010) (slip op.), the court remanded a securities class action to state court and also rejected defendant’s request that the court consider two similar class actions for the purpose of evaluating CAFA jurisdiction. Read the rest of this entry »

California Gift Certificate Law (Civ. Code § 1749.5) Preempted by Federal Airline Deregulation Act

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In Tanen v. Southwest Airlines Co., No. B217818., — Cal. Rptr. 3d —-, 2010 WL 3341969 (Cal. Ct. App. 2d Dist. Aug. 26, 2010), the Second District held that California’s gift certificate law is preempted by the federal Airline Deregulation Act (“ADA”) as aplied to travel certificates.  Plaintiff and appellant Mitch Tanen (Tanen) bought a $100 travel certificate from defendant and respondent Southwest Airlines Co. (Southwest), but when he attempted to redeem it 14 months later, after its stated expiration date, Southwest refused to honor it.  Id. *1. Read the rest of this entry »

Second District Holds That Providing Meal Breaks Means Employers Must Provide Breaks “as a Practical Matter”

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While the California Supreme Court will resolve this issue shortly, in Brookler v. Radioshack Corp., B212893, 2010 WL 3341816 (Cal. Ct. App. 2d Dist. Aug. 26, 2010), an unpublished opinion issued today, the Second District Court of Appeal held that “Unless and until our Supreme Court holds otherwise, we agree with the analysis in Cicairos which held an employer’s obligation under the Labor Code and related wage orders is to do more than simply permit meal breaks in theory; it must also provide them as a practical matter.” Read the rest of this entry »

Central District Certifies ERISA Class

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Judge Stephen V. Wilson of the Central District of California certified an ERISA class in Tibble, et al. v. Edison International, et al., No. CV 07-5359 SVW (AGRx), 2009 WL 6764541 (C.D. Cal. June 30, 2009).  Plaintiffs brought a class action pursuant to ERISA § 502(a)(2) & (3) to recover for alleged breaches of fiduciary duties with respect to the Edison 401(k) Savings Plan (the “Plan”).

Plaintiffs allege that certain defendants breached their fiduciary duties to the Plan by (1) engaging in prohibited transactions in violation of ERISA § 406; (2) breach of the duty of loyalty in violation of ERISA § 404(a)(1) (A); (3) breach of the duty of prudence in violation of ERISA § 404(a)(1)(B); and (4) violation of the terms of the Plan documents in violation of ERISA § 404(a)(1)(D). (SAC ¶ 105.)

Plaintiffs sought certification of the following class: Read the rest of this entry »

Ninth Circuit Holds That Incomplete Disclosures About Sales Force Performance Are Not Material Omissions

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In In re Cutera Securities Litigation, 610 F.3d 1103 (9th Cir. 2010), a fraud-on-the-market class action suit, plaintiff investors appealed the dismissal of their securities fraud class action against Cutera, Inc., its chief executive officer, Kevin Connors, and its chief financial officer, Robert J. Santilli, under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934.  The investors alleged that Cutera provided false and misleading revenue projections and failed to disclose material information about the shortcomings of Cutera’s sales staff.

Chief Judge Vaughn R. Walker of the Northern District of California dismissed without prejudice for failure to state claim. Investors appealed.

The Ninth Circuit affirmed, concluding that Cutera’s alleged incomplete disclosures about its sales force are not material omissions made in violation of the securities laws, and that Cutera’s earnings projections fall within the statutory safe harbor for forward-looking projections under the Private Securities Litigation Reform Act of 1995 (“PSLRA“), 15 U.S.C. § 78u-5. Read the rest of this entry »

Blog Notice: In Trial, So Will Post Shorter Updates This Week

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I’m in trial the week of August 22, 2010.  I’ll continue updating the latest case law developments and jury verdicts, but the updates will be more abbreviated.

Best,

Charles

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Ninth Circuit Holds That Deadline for Objection to Class Action Fee Award Must Be Set for Date After Plaintiff’s Counsel Files Fee Motion

B. B. Law, Attorney, Bozeman, Montana. (1911)
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The Ninth Circuit Court of Appeals yesterday clarified the timing of objections to class counsel’s fee requests under Fed. R. Civ. Proc. Rule 23(h), holding that objectors must be given a deadline to object after plaintiff’s fee application is submitted.  The litigation in In re Mercury Interactive Corp. Securities Litigation, No. 08-17372, — F.3d —-, 2010 WL 3239460 (9th Cir. Aug. 18, 2010), which involved stock option backdating, settled early on, at the motion to dismiss stage.

A settlement class was certified, the settlement of $117.5 million in cash was approved, and attorneys’ fees of 25% ($29.375 million) were awarded pursuant to the settlement agreement.  No objections were made to the settlement itself, but two objections were made to the proposed attorneys’ fees.  Id. *2.  The court described lead counsel’s fee application as follows: Read the rest of this entry »

Plaintiffs in Wage & Hour Class Action Granted Temporary Restraining Order

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In an unusual move, plaintiffs in Arrendondo v. Delano Farms Company, No. CV F 09-1247 LJO DLB, 2010 WL 3212000 (E.D. Cal. Aug. 10, 2010), sought and were granted atemporary restraining order.  Plaintiffs filed an Application pursuant to  Fed. R. Civ. P. 65 requesting a Temporary Restraining Order (“TRO”) against defendant Delano Farms Company to restrain potential retaliation and threats to witnesses and putative class members by defendant.  The Application was supported by declarations of three witnesses and potential class members who heard threats by a supervisor of Delano Farms as well as declarations from Jessica Arciniega and Thomas P. Lynch, attorneys representing plaintiffs, and Aida Sotelo, a paralegal who investigated the threats. Read the rest of this entry »