Plaintiffs sometimes try to sidestep an arbitration agreement with one company by suing only a second company for interrelated conduct.  Last month, a California federal court applied principles of fairness under the doctrine of “equitable estoppel” to reject this tactic, holding that a software vendor (Twilio) could enforce a plaintiff’s arbitration agreement with a website operator (Keeps) that was not named as a defendant.  Perry-Hudson v. Twilio, Inc., 2024 WL 493333 (N.D. Cal. Dec. 2, 2024).Continue Reading California Federal Court Allows Software Vendor to Enforce Website Operator’s Arbitration Agreement in Privacy Lawsuit

Dozens of lawsuits have started challenging businesses’ use of website tools to collect IP addresses under the “pen register” and “trap and trace device” provision of the California Invasion of Privacy Act (“CIPA”).  As we reported last month, a California court dismissed one of these lawsuits because of a…

Continue Reading Another California Court Holds CIPA’s Pen Register Provision Does Not Prohibit the Collection of IP Addresses

A Colorado federal judge recently granted a motion to dismiss a putative class action against two healthcare software companies arising from a 2022 data breach in which a threat actor allegedly accessed personally identifiable information (“PII”) and protected health information (“PHI”) in “over 250,000 patient records.”  See Henderson v. Reventics, LLC, 2024 WL 5241386 (D. Colo. Sept. 30, 2024).Continue Reading Colorado Federal Court Dismisses Data Breach Class Action for Lack of Article III Standing

On December 17th, the Federal Trade Commission (“FTC”) announced its final rule intended to require the display of total price for tickets to live events and for short-term lodging.  

The rule will require businesses that offer, display, or advertise a price for live-events tickets and short-term lodging to clearly and conspicuously disclose a total price inclusive of all mandatory fees (excluding shipping and government fees).  And, before checkout, this total price must be displayed more prominently than other pricing information (such as itemized fees or surcharges).   

The rule also prohibits businesses from misrepresenting any fee or charge associated with tickets and lodging—including the fee’s nature, purpose, amount, or refundability.Continue Reading Hidden No More: FTC Finalizes Rule Restricting Hidden Fees for Live-Event Tickets and Short-Term Lodging

Websites cannot load without the transmission of an IP address, which tells websites where to deliver the webpages displayed on a user’s browser.  Yet a number of lawsuits have started challenging this routine transmission of IP addresses under a lesser-known provision of the California Invasion of Privacy Act (“CIPA”) that…

Continue Reading Court Holds CIPA’s Pen Register Provision Does Not Impose Liability for “What Makes the Internet Possible.”

In a recent decision, the Ninth Circuit offered a useful reminder that the need for individualized proof of causation can affect multiple elements of the Rule 23 test for class certification.

In Small v. Allianz Life Ins. Co. of N. Am., No. 23-55821, — F.4th —-, 2024 WL 5051192 (9th Cir. Dec. 10, 2024), resolving a District Court split, the Ninth Circuit adopted a “causation” theory of harm for claims asserting that an insurance company had violated the California Insurance Code, holding that plaintiffs must show not only that an insurance company violated the Code (violation-only theory), but also that the violation of the Code caused a plaintiff harm (causation theory).Continue Reading Ninth Circuit Denies Class Certification because Causation Theory Requires Individual Analysis of Claims

Despite a lead plaintiff with unique injuries, the Northern District of Indiana recently certified a class seeking economic damages under Indiana’s consumer protection statute in a case challenging contaminated hand sanitizer manufactured by 4e Brands North America, LLC.  Callantine v. 4e Brands North America, LLC, 2024 WL 4903361 (N.D. Ind. Nov. 27, 2024). 

In June 2020, Defendant 4e voluntarily recalled all of its hand sanitizer lots due to the presence of methanol.  The plaintiff filed a class action lawsuit two months later, alleging that she had suffered both economic and personal injuries, and that she was entitled to statutory damages.  The individual class members’ damages, however, would be “largely limited to statutory damages.” Continue Reading Unique Injuries No Bar to Class Certification Pursuing Economic Damages

            An important issue in class action practice is how courts are to evaluate the reliability of expert evidence that purports to support class certification.  On November 22, the Sixth Circuit joined a majority of circuits in holding that a full Daubert analysis is required at the class certification stage where the expert evidence is material to class certification.

            In In re Nissan North Am., Inc. Litig., — F.4th —, 2024 WL 4864339 (6th Cir. Nov. 22, 2024), Nissan owners brought state law claims alleging various defects with automatic braking systems in Nissan vehicles.  The district court certified 10 statewide classes under Fed. R. Civ. P. 23(b)(3). Id. at *1. On interlocutory appeal, the Sixth Circuit reviewed three aspects of the district court’s certification decision:  (1) whether the case involved common questions of law or fact under Rule 23(a)(1); (2) whether common questions predominated over individual ones under Rule 23(b)(3); and (3) whether the court could rely on expert evidence without ensuring that it satisfied the Daubert standard. Id. at *3. While it found error in the district court’s determinations on each of these issues, this post focuses on the expert-related question.Continue Reading No Evading Daubert at Class Certification Stage, Sixth Circuit Rules

A court in the Northern District of Illinois recently denied a motion to dismiss a lawsuit alleging that the alleged inclusion of artificial citric acid in a product rendered the “No Artificial Flavors, Preservatives, or Dyes” representation on the front label false and/or misleading.  Hayes v. Kraft Heinz Co., 2024 WL 4766319 (N.D. Ill. Nov. 13, 2024). Continue Reading Illinois Federal Court Permits Citric Acid Case To Proceed

The First Circuit recently held as a matter of first impression that denial of class certification does not strip a federal court of jurisdiction under the Class Action Fairness Act (“CAFA”), consistent with earlier decisions from the Second, Third and Seventh Circuits.  The opinion also addressed two exceptions to CAFA—the “home state” and “local controversy” exceptions—ultimately finding that the latter did defeat CAFA jurisdiction in the case before it and required remand to state court.  See Kress Stores of Puerto Rico, Inc. v. Wal-Mart Puerto Rico, Inc., — F.4th —-, 2024 WL 4750774 (1st Cir. Nov. 12, 2024).Continue Reading First Circuit Agrees with Other Circuits that CAFA Jurisdiction Survives Class Certification Denial