Consumer Protection : Law360 : Legal News & Analysis (2024)

SEC Lands $25M Judgment In TikToker-Wannabe Ponzi Suit

A South Carolina man and his companies must pay the U.S. Securities and Exchange Commission nearly $24.9 million to settle claims that he misappropriated investors' money to make Ponzi payments to earlier investors and to pay for luxury cars and over $1 million to TikTok creators, according to judgments issued in Georgia federal court.

Google Judge Ponders Search Engine's Might At Trial Closings

The quality of Google's search engine, and what it would take to actually challenge the company's grip on default placements on Apple browsers and Android phones, were top of mind Thursday for the D.C. federal judge weighing U.S. Department of Justice monopolization allegations.

TikTok, Users Push 9th Circ. To Keep Block On Montana Ban

TikTok and its users are hitting back at Montana's bid to convince the Ninth Circuit to unblock a new law that would ban the social media app in the state, arguing that the state's position that the statute is a consumer protection measure that regulates conduct and not constitutionally protected speech is "premised on fiction."

Wells Fargo Discloses Zelle Dispute-Handling Scrutiny

Wells Fargo & Co. on Thursday became the latest financial institution to disclose government scrutiny of how customers' dispute claims for potentially mistaken or fraudulent instant payments are being handled.

Hahn Air To Pay Feds $26.8M To End FCA Travel Fees Suit

Hahn Air Lines agreed to pay $26.8 million to resolve a whistleblower's allegations that the German airline-ticketing company violated the False Claims Act by intentionally failing to remit to the U.S. government certain travel fees the company collected from U.S. commercial airline passengers.

No Atty Fees For Objectors To $5.6B Swipe Fees Settlement

Class members who initially objected to a $5.6 billion settlement with Visa and Mastercard cannot collect nearly $1 million in attorney fees, a New York federal judge ruled Thursday, saying they haven't shown their objections to the original 2013 settlement substantially benefited the class.

Chicken Buyers Request $37M More In Price-Fixing Deal Fees

Direct broiler chicken purchasers who've inked more than $284 million in price-fixing settlements are asking an Illinois federal judge for more than $37 million in what would be a third distribution of fees and reimbursed costs to their co-lead counsel in the massive case.

Tech, Finance Experts Urge CFTC To Consider AI Regs

Tech advisers urged the U.S. Commodity Futures Trading Commission on Thursday to consider policies to manage the risks associated with artificial intelligence, along with a list of other recommendations detailing potential approaches to the growing use of AI in financial markets.

Attys Due For Spam Suit Sanction, But Not $750K, Judges Say

Class counsel's misconduct in helping instigate a spam text suit against stock-trading app Robinhood Financial LLC warranted sanctions, a Washington state appeals court panel ruled Thursday, but the judges said the $750,000 penalty went over the top in deterring the bad behavior.

Lawmaker Wants Antitrust Probe Of Health Insurance Data Co.

Sen. Amy Klobuchar, D-Minn., is calling for antitrust enforcers to investigate concerns that MultiPlan and other healthcare data companies are hurting competition by helping health insurers effectively collude when making pricing decisions.

House Seeks FTC Info On Scuttled Amazon-IRobot Deal

The Republican-controlled House Committee on Oversight and Accountability is launching an investigation into the Federal Trade Commission's purportedefforts to block Amazon's purchase of iRobot, according to a Wednesday letter from Rep. James Comer, R-Ky.

A new collection of major retailers is joining Target Corp. and Grubhub in objecting to a proposed settlement deal cut by Visa and Mastercard, saying the deal would actually codify an illegal price-fixing agreement.

Kind Keeps Win At 2nd Circ. In MDL Over 'All Natural' Labeling

The Second Circuit on Thursday affirmed a summary judgment for Kind LLC against a group of buyers who said the company misled consumers by labeling products as "all natural," saying the plaintiffs failed to establish through evidence how a reasonable buyer would understand the term.

Biden Announces $3B To Fund Lead Pipe Replacement

The Biden administration is distributing $3 billion to states so they can replace lead water pipes that pose a health risk to those who rely on them for drinking water, as part of the larger goal to remove all lead service lines nationwide.

USAA Wrongly Denied Fire Damage Claim, Wash. Couple Says

A Washington couple accused their homeowners insurer of unreasonably denying their fire damage claim despite their timely response to all of the insurer's claim inquiries and requests, further accusing the insurer of violating Washington's Consumer Protection Act and Insurance Fair Conduct Act.

Calif. Justices To Review Gilead's HIV Drug Negligence Fight

The California Supreme Court has granted Gilead Sciences Inc.'s request to review an appellate court'sholding that the drugmaker must face claims itheld back a safer HIV drug to maximize profits on an older medication.

Immigrant Bond Co. Buyer Wants In On $811M Fine Appeal

Libre Immigration Services has moved to intervene at the Fourth Circuit to fight an $811 million judgment against companies it recently acquired that the Consumer Financial Protection Bureau sued over abusive immigrant bonding practices.

Cisco Counterfeiting Scheme Earns Fla. Man 6½ Years

A Florida resident was sentenced to 6½ years in prison after pleading guilty to running what New Jersey federal prosecutors said was an "enormous" scheme to sell over $1 billion worth of counterfeit and broken Cisco networking devices.

Split Conn. Supreme Court Says No To 'Ratio' Utility Bills

In a rare 4-3 opinion, the Connecticut Supreme Court on Thursday ruled that a corporate landlord cannot use a ratio utility billing system to divide monthly costs among units not equipped with precise individual meters,stressing a legislative policy of protecting tenants from fluctuating fees beyond their immediate control.

Discover Ups Liability Costs For Card Pricing Issue To $1.2B

Discover Financial Services has put a $1.2 billion price tag on remediation for its previously disclosed credit card pricing misclassification, which is now the subject of a U.S. Securities and Exchange Commission investigation, representing an increase of nearly 230% from the $365 million liability it recorded nearly a year ago.

Davis Wright Brings On MoFo Appellate Litigator In San Fran

Davis Wright Tremaine LLP has brought on a former Morrison Foerster LLP partner in San Francisco, strengthening its appellate practice with an experienced appellate litigator who clerked for a U.S. Supreme Court justice, a California Supreme Court justice and other judges, the firm announced Thursday.

Plaintiff To Share 'Horrific' Story In First Zantac Cancer Trial

The first trial in sprawling state and federal litigation over whether a chemical in Zantac heartburn medication and its generic counterparts causes cancer began Thursday in a packed Chicago courtroom, with counsel for an 89-year-old Illinois woman telling jurors her colorectal cancer diagnosis and the suffering it's caused can be attributed to her 20-year use of the drug.

FTC Clears $60B Exxon Deal With Pioneer Executive Ban

The Federal Trade Commission on Thursdaycleared the way for the close of the $60 billion mega-merger betweenExxon Mobil Corp. andPioneer Natural Resources, subject to an agreementbarring former Pioneer Natural Resources CEO Scott Sheffield from gaining a seat on Exxon's board.

Monsanto Gets $185 Million Wash. PCB Verdict Overturned

A Washington state appeals court sided with Monsanto on Wednesday, undoing a $185 million jury verdict for three teachers who claimed they were sickened by PCBs at a Washington school site and ruling the case could be limited by the Evergreen state's 12-year statute of repose for product liability claims.

NJ, NY Law Firms Dominate Class Action Filings Since 2021

Class actions have been steadily increasing over the past decade, with two firms from New Jersey and New York filing the most suits over the past three years, according to a new Lex Machina report surveying the class action field.