The Litigation Counsellor®
Amarin Win Likely Points to Increase in Mass Tort Litigation
A recent ruling on the First Amendment rights of drug companies may be a stimulus for future mass tort claims. On August 7, 2015, the U.S. District Court for the Southern District of New York granted Amarin an injunction against the FDA from criminally prosecuting the drug manufacturer for communicating truthful, non-misleading information about off-label use of drugs, holding that the First Amendment rights of the company protected it from such prosecution. Amarin Pharma, Inc v. FDA, No. 15 Civ. 3588 (PAE), slip op. (S.D.N.Y. Aug.7, 2015). This ruling may be a first step toward a new, more relaxed regime in regulation of drug marketing that ultimately spurs more mass tort litigation.
StubHub Sues NBA Team for Stifling Competition in Ticket Resale Marketplace
StubHub, the burgeoning online ticket exchange for sports and entertainment, is suing the Golden State Warriors and Ticketmaster for antitrust violations in the Northern District of California. StubHub alleges that the Warriors and Ticketmaster have unlawfully colluded to restrain competition by telling season ticket holders that they can only resell their tickets through Ticketmaster.
Less Volatile Markets Lead to Decline in Class Action Settlement Values
A Cornerstone Research report on securities class actions in 2014 pointed out a stark decline in the value of settlements. Settlements fell 78 percent to $1.07 billion in 2014 from $4.85 billion in 2013. This represents an 84 percent drop below the prior nine-year average.
Judge Sends Sega Arcade Game Settlement Back for Reprogramming
A federal Judge has rejected a proposed settlement between two subclasses of plaintiffs and Sega, the video game company, for deceptive practices in the design and marketing of its Key Master game. The settlement was rejected due to speculative basis for its monetary relief, uncertain methods for identifying and paying plaintiffs, and an unsupported attorney’s fees provision.
Standard & Poor Settles Suit Over Inflated Ratings for $1.375 Billion
Having been in business for over 150 years and with 26 offices worldwide, Standard & Poor’s Rating Services touts that it provides “high-quality market intelligence in the form of credit ratings, research, and thought leadership.” Nevertheless, the company, a unit of McGraw Hill Financial Inc., became the adversary in a legal battle with the U.S. Department of Justice and 19 states and the District of Columbia, which resulted in a settlement of $1.375 billion.
Hacker Vulnerability in Cars Launches Class Action Against Auto Makers
It is possibly high on the list of many individuals’ worst nightmares: you are driving on the highway at a high rate of speed when your car begins accelerating rapidly and you lose the power to slow down. This nightmare played out in reality with Toyota between 2009 and 2013 when a defect with approximately 11 million of their cars’ acceleration system launched hundreds of personal injury and wrongful death claims and a $1.6 billion class action settlement.
NYC to Pay $5 Million to Relatives of “Mafia Cops” to Resolve Municipal Liability Claims
A $5 million settlement has been reached between victims seeking redress for wrongful death after their loved ones were murdered by rogue NYPD detectives, Louis Eppolito and Stephen Caracappa, acting as hitmen for the mafia in the 1980s. The settlement comes four months after a federal judge granted the city’s summary judgment motion on state law claims but denied with respect to federal municipal liability claims under 42 U.S.C. § 1983. As reported by the New York Law Journal on the plaintiffs’ theories of New York City’s responsibility:
PwC Back in Crosshairs of Madoff Feeder Fund Class Action
PricewaterhouseCoopers LLP (“PwC”), an international accounting firm, and The Citco Group Ltd. (“Citco”), a financial services group, are back at the center of a class action led by investors in several feeder funds that invested in the historic Ponzi scheme architected by Bernie Madoff. The action pleads federal securities law and state law violations arising out of PwC’s role as auditor of the funds and Citco’s part as the funds’ administrator and custodian.
California Bar on Blogging 101: Mind the “Call to Action”
The pervasiveness of blogging and social media was bound to raise ethical questions over when an attorney’s public statements—intertwined with the law—cross the line from free speech to attorney marketing and, as a result, regulated speech.
Is Lumber Liquidators the New Chinese Drywall?
Last Sunday night, 60 Minutes aired a story on wood flooring products retailer Lumber Liquidators and its laminate flooring products that purportedly contain formaldehyde levels that exceed acceptable standards for consumer products in the US. The laminate flooring products,
Bondholders Playing Larger Role in Securities Class Actions According to Study
Class actions brought on behalf of bondholders of public companies are playing a larger role in the overall landscape of securities class actions, an article recently published in the Minnesota Law Review says. Bondholders, often considered an afterthought in the securities fraud context due to claims by equity holders predominating, have been generating more recoveries, warranting a reconsideration of the prospects of bondholder claims in public company securities fraud cases.
Value of Attorney Advertising On Display at Risperdal Trial
The pharmaceutical drug Risperdal, prescribed by physicians as an antipsychotic, has caused a particularly embarrassing and emotionally scarring side effect in thousands of its male users. The drug is alleged to have caused thousands of boys and grown men alike to develop breasts, a medical condition known as gynecomastia.
