CALIFORNIA CLASS ACTION LAW

Tag: Wells Fargo

Ninth Circuit Reverses Certification Decision for Failure to Properly Conduct Predominance Inquiry

140GBP Windows Vista Home Basic
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The Ninth Circuit Court of Appeals in Kelley v. Microsoft Corporation, No. 09-35699, 2010 WL 3556196 (9th Cir. Sept. 14, 2010) (slip op.) reversed in part a class certification decision for failure to properly conduct the predominance inquiry under Rule 23(b)(3).  Id. *1.  The case involves alleged misrepresentations and omissions in Microsoft Corporation’s (“Microsoft”) pre-release marketing of its Windows Vista operating system.  Id. Plaintiffs-Appellants appealed the denial of their motion for narrowed class certification of two classes proposed after the district court decertified their original class.  Id. Read the rest of this entry »

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District Judge William Alsup Issues Order in Gutierrez v. Wells Fargo Bank Class Action After 2 Week Bench Trial

SAN FRANCISCO - JANUARY 20:  A Wells Fargo cus...
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District Judge William Alsup issued an order in Gutierrez, et al. v. Wells Fargo Bank, N.A., — F.Supp.2d —-, 2010 WL 3155934 (N.D. Cal. Aug. 10, 2010), a certified consumer class action challenging hundreds of millions of dollars in overdraft fees imposed on depositors of Wells Fargo Bank, N.A. through allegedly unfair and fraudulent business practices.

Judge Alsup issued his decision following a two-week bench trial.

The essence of the case is that Wells Fargo has devised a bookkeeping device to turn what would ordinarily be one overdraft into as many as ten overdrafts, thereby dramatically multiplying the number of fees the bank can extract from a single mistake. The draconian impact of this bookkeeping device has then been exacerbated through closely allied practices specifically “engineered”–as the bank put it–to multiply the adverse impact of this bookkeeping device. These neat tricks generated colossal sums per year in additional overdraft fees, just as the internal bank memos had predicted. The bank went to considerable effort to hide these manipulations while constructing a facade of phony disclosure.

Judge Alsup held that these “manipulations were and continue to be unfair and deceptive in violation of Section 17200 of the California Business and Professions Code.”  The Court ordered restitution enjoined the bookkeeping device under Cal. Bus. & Prof. Code section 17203.

By CHARLES H. JUNG