Class-Action

Illinois Federal Court Finds Putative Class Action Precluded by Arbitration Agreement – Collier v. Real Time Staffing Services

June 7, 2013 | Peter S. Lubin and James V. DiTommaso

A putative class action alleging violations of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. (FCRA), must be submitted to binding arbitration, according to the court in Collier v. Real Time Staffing Services, Inc., No. 11 C 6209, memorandum opinion and order (N.D. Ill., Apr. 11, 2012). The court found that a clause in the contract between the plaintiff and defendant required both parties to submit any disputes between them to arbitration. On the question of whether the class claims asserted by the plaintiff were subject to mandatory arbitration, the court left it for the arbitrators to decide.

The plaintiff, Darion Collier, submitted an electronic job application to the defendant, Real Time Staffing Services, which did business as SelectRemedy. According to the court’s order, the plaintiff signed an acknowledgment that said his employment with SelectRemedy would begin once he started an assignment for one of its clients, and that it would be on an “at-will” basis. The acknowledgment further said that SelectRemedy could at any time modify the terms and conditions of his employment. Order at 2. SelectRemedy did not hire the plaintiff after reviewing his application, allegedly based on information in his consumer credit report.

The plaintiff filed suit on September 7, 2011, alleging violations of the FCRA on behalf of himself and a proposed class. SelectRemedy filed a motion to dismiss under Rule 12(b)(1) of the Federal Rules of Civil Procedure, asserting that an arbitration agreement signed by the plaintiff with his application precluded the lawsuit. The agreement stated that the plaintiff agreed to submit any disputes to binding arbitration in accordance with the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (FAA). In opposing the motion to dismiss, the plaintiff argued that the arbitration agreement was unenforceable for lack of consideration, that SelectRemedy’s ability to change the terms of employment rendered the contract illusory, and that the arbitration agreement should not cover class claims.

Decision in Kohl’s Case Reversed and Class Claim Regarding Use of Alleged Fake Sales Prices Allowed to Proceed — Our Chicago Class Action Lawyers Enabled Illinois Consumers to Collect Substantial Class Action Recoveries

May 29, 2013 | Peter S. Lubin and James V. DiTommaso

Many times people buy things because they are on sale that they would not have bought otherwise. The idea of a good deal is a powerful motivator for shoppers and many retailers our Chicago class action lawyers have observed take advantage of that fact. Kohl’s is currently facing a class action lawsuit for allegedly advertising certain items as being marked down between 32 and 50 percent from their “original” prices when those items were not, in fact, marked down at all.

Antonio Hinojos bought a Samsonite suitcase at Kohl’s that was advertised as being 50% off of its original price of $299.99. He also bought some shirts that were allegedly marked as being on sale for 32 to 40 percent less than their original prices.

However, Hinojos alleges in his lawsuit that the items were, in fact, not marked down at all, and that their supposed “sale” prices were the same as the prices the items regularly sold for. Hinojos says that, had he known that, he never would have purchased the items.

A district court dismissed the lawsuit, saying that, because Hinojos got the items he wanted, he could not show that he had lost any money as a result of the alleged false advertising.
The 9th U.S. District Court of Appeals disagreed and reversed the ruling. In the court’s 21-page opinion, it argued that Hinojos demonstrated that he had lost money as a result of the false advertising, “because the bargain hunter’s expectations about the product he just purchased is precisely that it has a higher perceived value and therefore has a higher resale value.”

The court stated that advertisements such as “not available in stores”, “available for a limited time only”, “the same model shoe worn by LeBron James”, and “more doctors recommend our product than any other brand” are not examples of false advertising. However, the court finds this case to be distinctly different from those claims.

The court went on to enumerate that, in this case, “Hinojos specifically and plausibly alleges that Kohl’s falsely markets its products at reduced prices precisely because consumers such as himself reasonably regard price reductions as material information when making purchasing decisions.”

The court also rejected Kohl’s motion to certify the matter to the California Supreme Court. Kohl’s did not do so until after the oral arguments, at which point it perceived that the judges were not sympathetic to its position. According to the court, “Kohl’s conduct regarding certification violated both our rule against belated certification requests and our long-standing prohibition against a party’s use of procedural motions to avoid having its appeal decided by a panel it perceives as unfavorable.”

Chicago Class Action Attorneys at DiTommaso Lubin Obtain Certification of Nationwide Class

May 28, 2013 | Peter S. Lubin and James V. DiTommaso

Judge Certifies Nationwide Class in Lawsuit against Abercrombie & Fitch
A nationwide class has been certified in a lawsuit against Abercrombie & Fitch for allegedly voiding gift cards issued to customers as part of a 2009 winter holiday promotion despite the fact that the gift cards stated “No Expiration Date.” Class counsel, DiTommaso Lubin, PC and Schad, Diamond & Shedden, P.C., has created a website http://www.abercrombieclassaction.com where potential class members can obtain more information and review important documents and dates.

A nationwide class has been certified in a lawsuit against Abercrombie & Fitch for allegedly voiding gift cards issued to customers as part of a 2009 winter holiday promotion despite the fact that the gift cards stated “No Expiration Date.”
Chicago, IL (PRWEB) May 24, 2013
A judge in the Northern District of Illinois has certified a nationwide class in a class action lawsuit filed against Abercrombie & Fitch (case no.10-cv-04866). The lawsuit, filed by Tiffany Boundas through her attorneys DiTommaso Lubin, PC and Schad, Diamond & Shedden, P.C., alleges that Abercrombie and abercrombie kids issued $25 gift cards to customers as part of a 2009 in-store winter holiday promotion. Abercrombie then voided the gift cards a couple months later despite language on the cards that stated “No Expiration Date.” By doing so, the lawsuit contends, Abercrombie breached its contracts with customers. The lawsuit seeks a payment of the value of the gift cards that customers could not redeem as a result of Abercrombie’s actions. Abercrombie contends that more than $5 million is at issue in this lawsuit.

Copies of the Complaint, the judge’s opinion certifying the class, and the Class Notice can be obtained by going to http://www.abercrombieclassaction.com.

The judge has set a July 20, 2013 deadline for class members to exclude themselves from the class. For more information and to learn other important dates in this case, please visit http://www.abercrombieclassaction.com.

DiTommaso Lubin, PC is a law firm committed to fighting for consumer’s rights. With over two and a half decades of experience litigating class action lawsuits across the nation, the attorneys at DiTommaso Lubin, PC have recovered millions of dollars for consumers. DiTommaso Lubin, PC has offices in downtown Chicago and throughout the Chicagoland area. To learn more about DiTommaso Lubin, PC or to contact one of its attorneys please visit https://www.chicagobusinesslawfirm.com.

Viacom Sued in TCPA Class Action For Allegedly Sending Out Unsolicited Text Messages — Our Chicago Class Action Lawyers File Unsolicited Text Message and Fax Class Actions

May 22, 2013 | Peter S. Lubin and James V. DiTommaso

With all the spam that companies tend to send out, it’s no wonder that most people carefully guard their telephone numbers. Many people, however, don’t think of the fact that they are giving their number to every person and company that they call or send text messages to. In a recent class-action lawsuit against MTV’s parent company, Viacom, plaintiffs allege that the company violated the Telephone Consumer Protection Act by sending promotional texts to people who voted in the 2011 Video Music Awards.

The lead plaintiff in the case, Erin Mock, voted in the 2011 Video Music Awards via text message and was allegedly bombarded with promotional text messages shortly thereafter. According to the lawsuit, one such message read “MTV: ‘Jersey Shore’ sneak peek of tonight’s episode – why is Snooki lying in a bush? Watch”. Another said, “MTV: ‘Real World San Diego’ premieres Wednesday, Sept. 28 at 10/9c”.

The lawsuit alleges that, during the VMA solicitation for votes, viewers were never warned that, by voting, “they would be consenting to receipt of future text SPAM advertisements from Defendant and/or its subsidiaries and/or employees and/or agents”.

Mock further alleges that she sent a text message asking to stop receiving these text advertisements. She received a confirmation that the text messages would stop, but she allegedly received another such message (this one with a link to a “Real World” trailer) after she received her confirmation.

The lawsuit, filed in U.S. District Court in Tennessee, alleges that the “Plaintiff and the members of the Class and Sub-Class have all suffered irreparable harm as a result of the Defendant’s unlawful and wrongful conduct”. The suit is seeking $1,500 per alleged violation for each member of the class, as well as an injunctive relief against such conduct in the future.

Chicago Tribune Settles Class Action Alleging Subscribers Overcharged

May 21, 2013 | Peter S. Lubin and James V. DiTommaso

Once a subscriber gives a company their credit/debit card or bank information to charge subscription fees, some companies will take advantage of that to raise their fees without notifying their subscribers. Such is allegedly the case with the Chicago Tribune.
Cheryl Naedler and Theodore Raab, two Tribune subscribers, filed a class-action lawsuit against the company in the Circuit Court of Cook County. The lawsuit alleges that the Chicago Tribune breached its contract with subscribers and violated the Illinois Consumer Fraud Act by charging an inflated subscription fee, without warning subscribers at least 30 days in advance of the change.

According to the class counsel, what the Chicago Tribune should have done, “is send notice at least one billing cycle in advance saying we’re going to increase it … if you agree to pay. And they didn’t do it.”

Our Chicago class action lawyers note that the Chicago Tribune recently began mailing out a proposed offer to settle the lawsuit. Although the company denies the allegations, it said that it reached the settlement to, “avoid the cost, risk, and delay of litigation and uncertainty of trial” according to the notice.

If the court approves the settlement, about 41,000 subscribers will receive $6.50 each as part of the settlement. Naedler and Raab, as the class representatives, will receive $2,000 each.

Sketchers Settles Class Actions Alleging That its Shape-Ups Don’t Really Help Consumers Get in Shape

May 20, 2013 | Peter S. Lubin and James V. DiTommaso

Many people are on the look-out for a quick fix to lose weight and get in shape. It is therefore no surprise that hundreds of thousands of people took advantage of Skechers’s offer when they introduced shoes that claimed to help people lose weight and tone up.

Skechers’s ads featured celebrity endorsers such as Kim Kardashian and Brooke Burke. The shoe company claimed that its Shape-Ups were designed to promote weight loss and tone butt, leg, and stomach muscles with the shoe’s curved “rocker” or rolling bottom. Skechers said that this caused instability which would cause the wearer of the shoes to “use more energy with every step.” Shape-ups cost about $100 and are sold across the country.

The Resistance Runner shoes were advertised as a fitness tool that could help people who wore them increase “muscle activation” by up to 85% for posture-related muscles and 71% for muscles in the buttocks.

The current lawsuit against Skechers consolidates more than 70 lawsuits from across the country into one lawsuit in federal court in Louisville, Kentucky. U.S. District Judge Thomas B. Russell recently approved the settlement reached between Skechers and the plaintiffs for $40 million. The judge also ordered Skechers to pay an additional $5 million for the attorneys in the case to share. Russell ordered that the money cannot come out of the $40 million settlement.
The two lead plaintiffs in the case will receive payments of $2,500 each.

Those with approved claims will be able to collect repayment for their purchase – up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runners; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups. The settlement covers more than 520,000 claims. About 1,000 people who are eligible for coverage by the settlement opted out.

Eleven objections to the settlement were filed, including people seeking the full purchase price of their shoes and one person saying the settlement would prevent him from seeking damages on his own. The judge rejected all of these arguments.

The settlement comes just one year after Skechers reached a deal with the Federal Trade Commission regarding the ads. A settlement with the Federal Trade Commission bars Skechers from ever again running the ads. If there is any money left over from the $40 million after all of the claims have been processed, the judge has ordered that the remainder of the money is to go to the Federal Trade Commission.

Skechers denies the allegations but said that it is settling in order to avoid a long and costly litigation.

Honeygate Leads to Civil Anti-Dumping Suit Relating Chinese Honey Being Dumped into the U.S. Market

April 29, 2013 | Peter S. Lubin and James V. DiTommaso

The government sometimes imposes sanctions on certain imports for the sake of fair competition on behalf of domestic producers, among other reasons. When companies choose to ignore those sanctions, they could find themselves held accountable, not only by the government, but also by the domestic producers who were harmed by the illegal imports.

The “Honeygate” investigation, led by the U.S. Immigration and Customs Enforcement investigative arm of the U.S. Department of Homeland Security is one such case. The investigation resulted in a series of seizures of illegally imported honey, criminal charges, and massive fines. The United States District of Illinois filed criminal charges against two of the country’s largest industrial honey suppliers, Groeb Farms, Inc. and Honey Solutions. The two companies entered into Deferred Prosecution Agreements with the government and confessed to knowingly facilitating the importation, purchase, and sale of the mislabeled Chinese honey in order to avoid the U.S.-imposed antidumping duties.

The United States government had imposed antidumping duties on Chinese honey because they found that the honey was sold at such a low price as to interfere with the sale of domestically-produced honey.

To avoid the United States’s antidumping duties, the honey distributors engaged in a massive conspiracy involving transshipping Chinese honey through other countries, disguising the honey’s origin, and then illegally importing the Chinese honey into the United States in order to avoid paying the U.S. dumping duties.

Three domestic honey producers, Adee Honey Farms, Bill Rhodes Honey Company, LLC, and Hackenberg Apiaries, have now filed a class action complaint in the U.S. District Court for the Northern District of Illinois. In addition to the three named plaintiffs, the class action asserts claims on behalf of a nationwide class consisting of all individuals and entities “with commercial beekeeping operations (300 or more hives) that produced and sold honey in the United States during the period from 2001 to the present.”

The lawsuit is building on the Honeygate investigation in its attempt to obtain compensation for the financial losses suffered by the domestic honey producers as a result of Groeb’s and Honey Solutions’s conduct. The class-action alleges that, by intentionally participating in the purchase, packaging, distributing, and sale of the Chinese honey, the two companies deceived consumers and purchasers.

The lawsuit alleges that consumers were deceived because the Chinese honey has allegedly been found to be “heavily adulterated, containing inexpensive sweeteners and sometimes blended with high fructose corn syrup and other additives, despite the fact that importers, in league with [Groeb and Honey Solutions], represent that it is pure honey.”
James J. Pizzirusso one of the attorneys representing the domestic honey producers, states that the domestic honey industry, which is “critically important to agriculture, has suffered losses at the hands of these fraudulent suppliers.”

Adam J. Levitt, another attorney for the plaintiffs, said “It is important that American beekeepers and honey producers get to play on a level playing field”.

Motion to Dismiss Denied in Lawsuit Alleging Law Schools Deceive Applicants to Enroll

April 27, 2013 | Peter S. Lubin and James V. DiTommaso

With the economy firmly stuck in a “jobless recovery”, many students feel more pressure than ever to further their education in the hopes that it will make them more employable. Colleges likewise release and advertise the employment rate of their graduates to entice new students to enroll.

However, many students are finding that they are unable to get the jobs that they felt the colleges promised them. There are currently more than a dozen law schools facing class action lawsuits from students who were unable to attain employment in their field after graduation. Recently, six of those lawsuits have been dismissed by the courts, six have had their motions to dismiss rejected, and three have motions to dismiss which are still under review.
Included among the cases which have been allowed to move forward, is Harnish v. Widener University School of Law. The lawsuit alleges that the school publicized misleading and incomplete graduate employment rates in violation of New Jersey and Delaware consumer fraud acts.

Judge William H. Walls of the U.S. District Court for the District of New Jersey pointed to the broad nature of the New Jersey statute when he denied the defendants’ motion to dismiss. The statute, he says, extends to purchases made for business purposes and does not require proof of reliance in order to be enforced.

Eight Widener University law school alumni who graduated between 2008 and 2011 comprise the plaintiffs in the class-action lawsuit. Initially, the court determined that the plaintiffs failed to assert any common law fraud causes of action. The plaintiffs then voluntarily dismissed their cause of action which alleged violation of Delaware’s Deceptive Trade Practices Act.

The two remaining causes of action allege that Widener violated the New Jersey and Delaware consumer fraud acts. According to the lawsuit, Widener violated these laws by allegedly:
1) stating that approximately 90-95% of their graduates secured employment within nine months of graduation;
2) manipulating the employment data to make it seem as though the overwhelming majority of recent graduates secure full-time, permanent employment for which a J.D. is required or preferred;
3) distributing false post-graduate employment data and salary information to various third parties (such as the ABA and U.S. News and World Report);
4) making deceptive and misleading statements and omissions about Widener’s reputation with potential employers, the value of a Widener degree, and the pace at which recent graduates can expect to obtain gainful employment in their field; and
5) making students pay inflated tuition based on these misleading statements and omissions.
The court agreed that, taking these allegations at face value, the plaintiffs have plausible claims under the consumer fraud acts.

The court concluded that the 90-95% employment rate posted on Widener’s website was indeed allegedly misleading. Although the statement may have been technically true, Walls agreed that it was plausible for a law student to believe that the figures referred to law-related employment. In making this decision, Walls pointed out that the figures were posted in a class profile which was sandwiched between “judicial clerkships” and “full time legal employers”.
Walls further stated that Widener’s website aims to persuade students to obtain a law degree through their program and that the figures were sent to third-party evaluators to establish Widener’s standing.

Without much further discussion, the court agreed that the plaintiffs had also pleaded enough information to withstand the motion to dismiss their cause of action under the Delaware consumer Fraud Act.

Apple Settles Breach of Warranty Class Action Over Alleged Misuse of Water Damage Claims

April 26, 2013 | Peter S. Lubin and James V. DiTommaso

Amidst the many legal and financial troubles it has been facing lately, Apple can scratch one class-action lawsuit off the list. The class-action combined a number of lawsuits that had been filed in San Francisco against the company and dealt with Apple’s warranty policy for its iPhone and iPod touch.

According to the lawsuit, Apple allegedly refused to repair or replace merchandise still under one- or two-year warranty if a piece of white tape inside the device had changed color. The tape was supposed to turn pink or red when it came into contact with water. Since said water contact is known to damage electronic devices, Apple customer service personnel were instructed not to repair devices with tape that had changed color.

However, the tape manufacturer, 3M, allegedly said that humidity could potentially turn the tape at least pink. The customer service manual also states that “If a customer disputes whether an iPod with an activated [Liquid Contact Indicator] has been damaged by liquid contact and there are no external signs of damage from corrosion, then the iPod may still be eligible for warranty service.”

Although the tech giant admits no wrongdoing, it has agreed to settle the case for $53 million. This has the potential to affect hundreds of thousands of iPhone, iPhone 3G, and iPhone 3GS owners as well as customers who bought the first three generations of the iPod touch media player. Each member of the claim could get as much as $400 although, if there are enough people with claims, it could end up being less than half that much.

This is not the first time Apple has had to contend with complaints regarding its warranty policies. Recently, the CEO, Tim Cook, apologized to China after the state-run CCTV network and Chinese celebrities chastised the company on its replacement and repair policies in the more than 1 billion customer market.

The EU has also repeatedly castigated the firm over its warranty policies and Italy even threatened to close Apple’s offices if a warranty concern wasn’t addressed.

Apple Settles Breach of Warranty Class Action Over Allegedly False Claims that IPhones Weren’t Covered by Warranty due to Water Damage

April 17, 2013 | Peter S. Lubin and James V. DiTommaso

Amidst the many legal and financial troubles it has been facing lately, Apple can scratch one class-action lawsuit off the list. The class-action combined a number of lawsuits that had been filed in San Francisco against the company and dealt with Apple’s warranty policy for its iPhone and iPod touch.

According to the lawsuit, Apple allegedly refused to repair or replace merchandise still under one- or two-year warranty if a piece of white tape inside the device had changed color. The tape was supposed to turn pink or red when it came into contact with water. Since said water contact is known to damage electronic devices, Apple customer service personnel were instructed not to repair devices with tape that had changed color.

However, the tape manufacturer, 3M, said that humidity could potentially turn the tape at least pink. The customer service manual also states that “If a customer disputes whether an iPod with an activated [Liquid Contact Indicator] has been damaged by liquid contact and there are no external signs of damage from corrosion, then the iPod may still be eligible for warranty service.”

Although the tech giant admits no wrongdoing, it has agreed to settle the case for $53 million. This has the potential to affect hundreds of thousands of iPhone, iPhone 3G, and iPhone 3GS owners as well as customers who bought the first three generations of the iPod touch media player. Each member of the claim could get as much as $400 although, if there are enough people with claims, it could end up being less than half that much.
This is not the first time Apple has had to contend with complaints regarding its warranty policies. Recently, the CEO, Tim Cook, apologized to China after the state-run CCTV network and Chinese celebrities chastised the company on its replacement and repair policies in the more than 1 billion customer market.

The EU has also repeatedly castigated the firm over its warranty policies and Italy even threatened to close Apple’s offices if a warranty concern wasn’t addressed.